Slide 1: Q4 & Full Year 2024 Earnings Supplemental Slides
Blend Labs, Inc. Q4 & Full Year 2024 Earnings Supplemental Slides February 27, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks
Slide 3: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights 01 02 03 Revenue of $41.4 million Grew Consumer Banking Continued expansion of exceeding the midpoint Suite revenue by 48% Non-GAAP Net Operating of our guidance and year-over-year Income to $5.2 million continuing our year-over- with a margin of 13% year growth amid d
Slide 4: Consumer Banking Suite revenue reaches 48% year-over-year growth
Consumer Banking Suite revenue reaches 48% year-over-year growth Consumer Banking Suite* Revenue Mortgage Suite* Revenue Key Key 10.0 25.0 $9.5 $9.5 8.0 20.0 $21.5 $8.0 $18.5 $18.2 $6.7 $17.2 In millions In millions 6.0 $6.4 15.0 $15.1 4.0 10.0 2.0 5.0 0.0 0.0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024
Slide 5: Mortgage Suite economic value per funded loan
Mortgage Suite economic value per funded loan* Focusing on the efficiency of the business with high margin add-on products and ecosystem partnerships 100 $97 $99 $96 $91 $92 80 $85 $86 $86 $81 $74 $76 $69 60 40 20 0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2
Slide 6: Non-GAAP Gross Margin
Exiting the year with steady gross margins at 75% for Blend Platform Software Platform Blend Platform Segment Consolidated Blend Non-GAAP Non-GAAP Non-GAAP 80% 79% 79% 80% 79% 76% 75% 75% 71% 71% Non-GAAP Gross Margin 68% 60% 61% 58% 55% 54% 52% 40% 20% 0% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4
Slide 7: Non-GAAP Operating Expenses
Generating leverage through expense rationalization Significantly reduced non-GAAP operating expense year over year Research & Development Sales & Marketing General & Administrative Non-GAAP Non-GAAP Non-GAAP Non-GAAP Operating Expenses in millions 15.0 $11.8 10.0 $10.9 $10.2 $10.2 $10.3 $10.2 $9.1
Slide 8: Free Cash Flow
Free Cash Flow Improved $13.6M 0.0 Year over Year $(1.4) (5.0) $(5.8) $(7.2) Free Cash Flow in millions $(8.5) (10.0) (15.0) (20.0) $(20.8) (25.0) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Free Cash Flow* * See Note 5 included in Appendix
Slide 9: Illustrative Hypothetical Share Count Under Various Stock Price Scenarios
Illustrative Hypothetical Share Count Under Various Stock Price Scenarios (in thousands) Illustrative Shares at various BLND stock prices $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00 Outstanding Common Stock As of 12/31/2024 Class A common stock outstanding 254,426 254,426 254,4
Slide 10: Guidance
Guidance Blend guidance reflects Q1 2025 the following: Blend Platform Segment Revenue $25.0M - $27.0M • Blend's 1Q25 guidance reflects our expectation that U.S. aggregate industry mortgage originations will be lower in 1Q25 relative to 4Q24 based on application volume Blend Platform Non-GAAP Net ob
Slide 11: Appendix
& blend Appendix ©Blend 2024
Slide 12: Revenue Disaggregation
Revenue Disaggregation (dollars in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Blend Platform: YoY change YoY change Mortgage Suite $ 18,179 61 % $ 17,203 66 % 6 % $ 73,257 63 % $ 77,574 70 % (6) % Consumer Banking Suite 9,458 31 % 6,411 25 % 48 %
Slide 13: GAAP Financial Results
GAAP Financial Results (in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Revenue Software $ 27,637 $ 23,614 $ 106,914 $ 101,204 Professional services 2,485 2,258 8,848 8,345 Title 11,286 10,232 46,257 47,297 Total revenue 41,408 36,104 162,019 156,84
Slide 14: GAAP Financial Results (cont.)
GAAP Financial Results (cont.) (in thousands except per share amounts) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Net loss per share attributable to Blend Labs, Inc. common stockholders: Basic and diluted $ (0.03) $ (0.13) $ (0.24) $ (0.76) Weighted average
Slide 15: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (dollars in thousands) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Gross Gross Gross Gross Gross Gross Profit Reconciliation Gross Profit Margin Gross Profit Margin Gross Profit Margin Gross Profit Margin Gross Profit Margin Blend Platform GAAP Software platfo
Slide 16: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 GAAP operating expenses $ 26,516 $ 41,593 $ 140,164 $ 237,357 Non-GAAP adjustments: Stock-based compensation(1) 5,919 6,070 27,550 44,889 (2) Workfo
Slide 17: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 GAAP loss from operations $ (1,787) $ (21,867) $ (49,620) $ (156,222) Non-GAAP adjustments: Stock-based compensation(1) 6,064 6,223 28,077 46,021 (2
Slide 18: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 GAAP net loss $ (708) $ (30,376) $ (43,419) $ (179,879) Non-GAAP adjustments: Stock-based compensation(1) 6,064 6,223 28,077 46,021 Loss on extingui
Slide 19: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands, except per share amounts) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 GAAP diluted net loss per share attributable to common stockholders $ (0.03) $ (0.13) $ (0.24) $ (0.76) (14) Per share imp
Slide 20: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 GAAP research and development expense $ 8,861 $ 10,127 $ 12,916 $ 14,183 $ 14,417 Non-GAAP adjustments: Stock-based compensation(1) 1,782 2,169 2,567 3,352 1,996 (3) Abandoned and terminated fa
Slide 21: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) (dollars in thousands) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Net cash used in operating activities $ (4,586) $ 2,076 $ (6,666) $ (3,868) $ (20,691) Additions to property, equipment and internal-use software development costs (2,581) (3,432) (1,86
Slide 22: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) Notes: (1) Stock-based compensation represents the non-cash grant date fair value of stock-based instruments utilized to incentivize our employees, for which the expense is recognized over the applicable vesting or performance period. (2) Workforce
Slide 23: Footnotes
Footnotes Note 1: HMDA Mortgage Originations The Home Mortgage Disclosure Act (HMDA) requires financial institutions to maintain, report, and publicly disclose loan-level information about mortgages. All transactions are reportable if they are secured by a lien on a dwelling and the financial instit