Blend Labs, Inc. · NYSE:BLND

Blend Labs — Q1 2025 Earnings Presentation

25 slides from Blend Labs's earnings presentation, May 8, 2025

  1. Slide 1: Blend Labs, Inc. Q1 2025 Earnings Supplemental Slides

    Blend Labs, Inc. Q1 2025 Earnings Supplemental Slides May 8, 2025

  2. 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

  3. Slide 3: First Quarter 2025 Highlights

    First Quarter 2025 Highlights 01 02 03 Simplify Blend is translating Revenue of $26.8 million Delivered $15.5 million of to operating leverage. $1.0 exceeds the midpoint of free cash flow, resulting million of non-GAAP net guidance, powered by in 58% free cash flow operating income marks the diversi

  4. Slide 4: Consumer Banking Suite revenue reaches 45% year-over-year growth

    Consumer Banking Suite revenue reaches 45% year-over-year growth Consumer Banking Suite* Revenue Mortgage Suite* Revenue Key Key $10.0 $25.0 $9.5 $9.5 $9.6 $8.0 $20.0 $21.5 $8.0 $18.5 $18.2 $6.7 In millions In millions $6.0 $15.0 $15.1 $14.6 $4.0 $10.0 $2.0 $5.0 $0.0 $0.0 Q1 2024 Q2 2024 Q3 2024 Q4

  5. 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 Core software Add-on products** Partnerships $99 $100 $97 $96 $3 $93 $91 $92 $3 $3 $9 $85 $86 $86 $3 $14 $10 $14 $81 $2 $2 $2 $5 $13 $13 $80 $76 $2 $1

  6. Slide 6: Partnerships and add-on products unit economics

    Partnerships and add-on products unit economics • Q3 2024’s $17 of economic value per funded loan generated contribution margin of 35% under our legacy approach to owning and >90% building non-core solutions • Our Platform enables us to accelerate our growth through partnerships. Results in Q1 2025

  7. Slide 7: Non-GAAP Gross Margin

    Gross margins saw healthy growth compared to the prior year Blend Platform Segment Software Platform Non-GAAP Non-GAAP 80% 80% 79% 80% 79% 77% 75% 75% 76% 73% 71% 68% Non-GAAP Gross Margin 60% 60% 40% 40% 20% 20% 0% 0% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025

  8. Slide 8: Non-GAAP Operating Expenses

    Generating leverage through expense rationalization Significantly reduced non-GAAP operating expense year over year Research & Development Sales & Marketing General & Administrative $10.0 $10.2 $10.2 Non-GAAP Operating Expenses in millions $8.6 $8.6 $8.7 $7.5 $8.0 $8.1 $7.9 $7.7 $6.9 $7.1 $6.7 $6.3

  9. Slide 9: Narrowing the Focus of Our Operating Model

    Narrowing the Focus of Our Operating Model Operating Expenses Non-GAAP Actuals $250.0 Non-GAAP Operating Expenses in millions $200.0 $211.8 $150.0 $148.4 $100.0 $97.0 $85.0 - $90.0 $50.0 $0.0 FY 2022A FY 2023A FY 2024A FY 2025E *Amounts are presented on “continuing operations” (Blend Platform segmen

  10. Slide 10: 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 3/31/2025 Class A common stock outstanding 255,078 255,078 255,07

  11. Slide 11: Guidance

    Guidance Blend guidance Q2 2025 reflects the following: • Blend's Q2 2025 guidance Blend Platform Revenue $30.5M - $32.5M reflects our expectation that U.S. aggregate industry mortgage originations will be higher in 2Q 2025 relative to 1Q 2025 based on application Blend Platform Non-GAAP volume obse

  12. Slide 12: Appendix

    & blend Appendix ©Blend 2025

  13. Slide 13: Revenue Disaggregation

    Revenue Disaggregation (dollars in thousands) Three Months Ended March 31, 2025 2024 Blend Platform: YoY change Mortgage Suite $ 14,638 55 % $ 15,078 63 % (3) % Consumer Banking Suite 9,622 36 % 6,658 28 % 45 % Total Software Platform 24,260 91 % 21,736 91 % 12 % Professional Services 2,510 9 % 2,10

  14. Slide 14: GAAP Financial Results

    GAAP Financial Results (in thousands) Three Months Ended March 31, 2025 2024 Revenue Software $ 24,260 $ 21,736 Professional services 2,510 2,104 Total revenue 26,770 23,840 Cost of revenue Software 5,865 5,175 Professional services 1,947 2,623 Total cost of revenue 7,812 7,798 Gross profit 18,958 1

  15. Slide 15: GAAP Financial Results (cont.)

    GAAP Financial Results (cont.) (in thousands except per share amounts) Three Months Ended March 31, 2025 2024 Net loss per share attributable to Blend Labs, Inc. common stockholders - basic and diluted: Continuing operations $ (0.04) $ (0.08) Discontinued operations $ (0.01) $ (0.01) Weighted averag

  16. Slide 16: Reconciliation of GAAP to Non-GAAP Measures

    Reconciliation of GAAP to Non-GAAP Measures (dollars in thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 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

  17. Slide 17: Reconciliation of GAAP to Non-GAAP Measures (cont.)

    Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) Three Months Ended March 31, 2025 2024 GAAP operating expenses $ 26,651 $ 37,263 Non-GAAP adjustments: Stock-based compensation(1) 5,878 7,889 (2) Workforce reduction costs 719 972 Abandoned and terminated facilities costs(3) 507 — (

  18. Slide 18: Reconciliation of GAAP to Non-GAAP Measures (cont.)

    Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) Three Months Ended March 31, 2025 2024 GAAP loss from operations $ (7,693) $ (21,221) Non-GAAP adjustments: Stock-based compensation(1) 6,048 8,045 (2) Workforce reduction costs 719 972 Abandoned and terminated facilities costs(3) 50

  19. Slide 19: Reconciliation of GAAP to Non-GAAP Measures (cont.)

    Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) Three Months Ended March 31, 2025 2024 GAAP net loss from continuing operations $ (6,609) $ (20,709) Non-GAAP adjustments: Stock-based compensation(1) 6,048 8,045 Workforce reduction costs(2) 719 972 (3) Abandoned and terminated faci

  20. Slide 20: Reconciliation of GAAP to Non-GAAP Measures - Operating Expenses

    Reconciliation of GAAP to Non-GAAP Measures - Operating Expenses (in thousands) Year Ended December 31, 2024 2023 2022 GAAP operating expenses $ 132,070 $ 220,063 $ 326,505 Non-GAAP adjustments: Stock-based compensation(1) 27,432 44,570 104,026 (2) Workforce reduction costs 2,594 20,056 7,497 Litiga

  21. Slide 21: 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 March 31, 2025 2024 GAAP diluted net loss per share from continuing operations attributable to common stockholders $ (0.04) $ (0.08) (11) Per share impact of non-GAAP expenses (0.03) (0.02

  22. Slide 22: Reconciliation of GAAP to Non-GAAP Measures (cont.)

    Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 GAAP research and development expense $ 7,520 $ 8,861 $ 10,127 $ 12,916 $ 14,183 Non-GAAP adjustments: Stock-based compensation(1) 1,636 1,782 2,169 2,567 3,352 (3) Abandoned and terminated fac

  23. Slide 23: Reconciliation of GAAP to Non-GAAP Measures (cont.)

    Reconciliation of GAAP to Non-GAAP Measures (cont.) (dollars in thousands) Q1 2025 Q1 2024 Net cash provided by (used in) operating activities $ 20,085 $ (3,027) Additions to property, equipment and internal-use software development costs (4,587) (1,964) Free cash flow 15,498 (4,991) Cash paid for i

  24. Slide 24: 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

  25. Slide 25: 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

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