Better Home & Finance Holding Company · NASDAQ:BETR
Better Home & Finance — Q3 2023 Earnings Presentation
17 slides from Better Home & Finance's earnings presentation, Nov 14, 2023
Slide 1: Q3 2023 Investor Update
Q3 2023 Investor Update November 14, 2023
Slide 2: Disclaimer
Disclaimer This document and any related oral presentation do not constitute an offer or invitation to subscribe for, purchase compensation expense, change in the fair value of warrants, change in the fair value of bifurcated derivative, Key Metrics In this presentation, we refer to the following ke
Slide 3: Executive Summary
Executive Summary • Through cycles, U.S. home finance market is $3 trillion per year Large and Attractive Market • Existing process is manual, costly and slow Opportunity • Digital disruption is underway and accelerating • End-to-end proprietary origination technology powers faster, cheaper customer
Slide 4: Our Vision
Large and Attractive Market Opportunity Our Vision Relentlessly making homeownership Better for Faster + Cheaper = Better our customers Under one roof, with one-click, at the lowest price Home Buy & Title Homeowners Home Improvement One-Day HELOC Finance Sell Homes Insurance Line of Credit Mortgage
Slide 5: Homeownership market is enormous
Homeownership Large and Attractive Market Opportunity market is enormous Cumulative market size ~4T $4T27 • Annual spend within the housing market accounted for on average $3 trillion per $17+ Trillion Financial Network Consumer Financial Network ~2T year, 15-18% of US GDP since 20011 • Since 2013,
Slide 6: Mortgage process remains challenging for consumers
Large and Attractive Market Opportunity Mortgage process remains challenging for consumers The homeownership status quo is broken: Our vision is to deliver an experience that is: Expensive Buyers pay fees to up to 10 intermediaries, accounting for ~10% of home price1 Better Slow The underwriting pro
Slide 7: Our end-to-end proprietary technology, Tinman, powers our digital competitive advantage
Technology & Business Model Our end-to-end proprietary technology, Tinman, powers our digital competitive advantage Better Title and Settlement Services Better Real Better Estate Insurance Buy Refi Home finance lifecycle D2C B2B Cash- out Loan Purchasers HELOC Customer-facing tasks to Manual tasks t
Slide 8: Our proprietary technology delivers tangible results
Technology & Business Model Our proprietary technology delivers tangible results Better Industry Average 1 2 3 4 5 Better Customer Lower Rates, Increased labor Flexibly launch new Superior loan Experience Higher Approvals productivity & products to meet quality for Customers lower labor cost market
Slide 9: Tinman powers Better and our partners
Tinman powers Technology & Business Model Better and our partners Reduce costs, D2C ✓ Direct customer acquisition Own entire customer experience end-to-end ✓ Low-cost value proposition improve experience, ✓ Better-branded, high quality customer experience improve quality Mortgage-as-a-Service ✓ Same
Slide 10: Management with experience scaling to $100+ billion origination volume
Demonstrated Growth & Discipline Management with experience scaling to $100+ …and expense discipline billion origination volume… in tougher markets Funded Loan Volume ($ billions) Total Expenses ($ millions) 74% year-over-year $57 $1,481 Total Expense 10x origination Prudently pulled reduction volum
Slide 11: Q3 2023 Financial Review
Q3 2023 Demonstrated Growth & Discipline Financial Review Key Highlights Q3 2023 Statistics • Mortgage macro environment remains challenging with 30-year fixed mortgage rates around 8%. As a result, we continue to throttle marketing expenses to prioritize profitability over near-term growth • Volume
Slide 12: Q3 2023 Balance Sheet: Well Capitalized and Positioned for the Future
Q3 2023 Balance Sheet Well Capitalized and Positioned for the Future Well Funded for Future Key Highlights Statistics as of September 30, 2023 • Closed a 2.5-year-long SPAC process with Better now publicly listed after raising approximately $565 million of capital • Included $528 million of converti
Slide 13: Focus on Target Opportunities
Focus on Target Well Capitalized and Positioned for the Future Opportunities • Increase pull-through on approximately 18,500 monthly mortgage application starts through product & service enhancements • Strengthen relationships with real estate agents to improve purchase Purchase Conversion distribut
Slide 14: We are hopefully at the bottom of this cycle
Well Capitalized and Positioned for the Future We are hopefully at the bottom of this cycle MBA & Fannie forecasting refinance expected to nearly double by 2025 Single Family Mortgage Originations ($ billions)1 Purchase Refi $4,570 $4,374 $2,670 $2,802 $2,462 $2,382 $2,305 $2,254 $1,923 $1,826 $1,76
Slide 15: Q4 2023 Outlook
Q4 2023 Outlook Well Capitalized and Positioned for the Future Disciplined execution in a tough market Key Expectation Impacted Q4 Metric versus Q3 • Continued disciplined cost management to withstand duration of cycle • Several one-time de-SPAC deal related expenses in Q3 included in Total Expenses
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Use of Non-GAAP Measures and Other Financial Metrics: This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including, Adjusted EBITDA, Adjusted Net Income (Loss), Revenue excluding
Slide 17: Thank You
Thank You
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