Slide 1: Blend Labs, Inc. Q3 2021 Earnings Supplemental Slides
Blend Labs, Inc. Q3 2021 Earnings Supplemental Slides
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: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights Achieved strong growth / record revenues Expanded share / many customer wins Launched income verification solution Added new segment disclosures / metrics Advanced integration of Title365
Slide 4: Building and Capturing Mortgage Market Share
Building and Capturing Mortgage Market Share While Blend has already captured significant Blend signed untapped mortgage Blend utilized mortgage market mortgage transaction volume and market share, we market share share 25% believe substantial upside exists in the market and 23.5% at our current cust
Slide 5: We grow with our customers
We grow with our customers Gross Retention Market Adjusted Net Retention 181% 168% 162% 157% 159% 146% 149% 95% 97% 99% 99% 100% 100% 99% Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 5 See Note 2 and Note 3 included in Appendix
Slide 6: Rapid adoption of newer products by existing and new customers
Rapid adoption of newer products by existing and new customers Consumer Banking Transactions Consumer Banking and Marketplace Revenues 10M 90K 84K 314% YoY increase 76K 110% YoY increase $6.6M 60K 19% of Blend Platform Revenue 5M $5.6M 30K $3.1M 20K 11% of Blend Platform Revenue 0K 0 Q3 2020 Q2 2021
Slide 7: Product Spotlight: Blend Income Verification
Product Spotlight: Blend Income Verification Verifying a borrower’s income is tedious Result A large number of files are Self-reports income during rejected by Automated pre-qualification / application Underwriting System intake Uploads documents for lender to review Back and forth with lender to fix an
Slide 8: Blend Income Verification
Blend Income Verification Digital income verification can solve these issues Validate that date is Integrated into correct application Available for Income info processing and is pre-filled underwriting earlier Digitally re-verified before close 8
Slide 9: Blend Income Verification
Blend Income Verification Speeding up the lending process through instant income verification 9
Slide 10: Progress with Title365
Progress with Title365 ✔ Q3 2021 and full year 2021 Title365 financial results running ahead of plan ✔ Building key technology integrations ✔ Anticipate Mr. Cooper live on the Blend Platform in Q2 2022 ✔ Significant interest in Blend Title from large Blend customers 10
Slide 11: Revenue Growth in Q3 2021 Led by Blend and Title365
Revenue Growth in Q3 2021 Led by Blend and Title365 $90M $89.6M Title365 Professional Services Consumer Banking and Marketplace $60M Mortgage Banking Total Platform $54.5M $27.9M 26% growth YoY $1.2M $35.1M Total Platform $30M $6.6M $27.9M $0.9M Total Platform $3.1M $23.9M $27.3M 0 Q3 2020 Q3 2021 1
Slide 12: Strong Revenue Growth Across All Segments
Strong Revenue Growth Across All Segments Consumer Banking and Marketplace Revenues Blend Mortgage Revenues Blend Mortgage achieved estimated relative growth of 60% year over year, adjusted for an estimated 28.2% contraction in total U.S. mortgage volumes $10M $30M $25M 14% YoY increase $27.3M $25.4
Slide 13: Q3 2021 Blend Gross Profit Overview
Q3 2021 Blend Gross Profit Overview Blend Platform Segment Title365 Segment $35M $35M $30M $30M $25M $25M $20M 22% YoY increase $22.5M $20M $19.7M $18.4M $15M $15M $17.8M $10M $10M $5M $5M 0 0 Q3 2020 Q2 2021 Q3 2021 Q3 2020 Q2 2021 Q3 2021 13
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of New Accounting Presentation
Reconciliation of New Accounting Presentation (in thousands) 15
Slide 16: Revenue Growth in Q3 2021
Revenue Growth in Q3 2021 (in thousands) 16
Slide 17: Q3 2021 GAAP Financial Results
Q3 2021 GAAP Financial Results (in thousands) 17
Slide 18: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (in thousands) 18
Slide 19: Reconciliation of GAAP to Non-GAAP Measures (cont.)
Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) 19
Slide 20: Share count outlook
Share count outlook (in thousands) 20
Slide 21: Blend Platform Revenue Disaggregation
Blend Platform Revenue Disaggregation (in thousands) 2020 2021 21
Slide 22: Blend Platform Volume Disaggregation
Blend Platform Volume Disaggregation (in thousands) 2020 2021 22
Slide 23: Customer Count
Blend Customer Logo Growth 400 333 316 303 291 300 260 247 252 200 100 Customer Count 0 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Quarter 23
Slide 24: Footnotes
Footnotes Note 1: Market Share is management’s estimate of our mortgage market share based on signed customers, split between utilized and signed untapped. Note 2: Gross Revenue Retention measures revenue lost from our customer base, not including any benefits from expansion revenue or price increas
Slide 25: S blend
S blend