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Sep 30, 2022
Blend Q3 2022 Earnings Report
Blend's Q3 2022 results reflected steady progress, customer wins, high revenue retention, and increased mortgage banking market share amidst challenging economic conditions.
Key Takeaways
Blend Labs, Inc. reported a total revenue of $55.4 million in Q3 2022. The Blend Platform segment revenue increased by 3% year-over-year, while Title365 segment revenue decreased by 65% year-over-year. The company is managing costs and diversifying revenue sources through growth in Consumer Banking & Marketplace offerings.
Consolidated revenue was $55.4 million for the quarter.
Blend Platform segment revenue reached $36.1 million, up 3% year-over-year.
Consumer Banking & Marketplace revenue increased by 132% compared to Q3 2021, led by $6.1 million in migration of software-enabled title revenue.
Market adjusted net revenue retention increased to 190%.
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Blend Revenue by Segment
Revenue by Segment
Professional Services Revenue
CapyFin.com Forward Guidance
Blend updated its 2022 revenue guidance with a total consolidated revenue range of $235 million to $240 million. This reflects the strength of their performance amidst the expected reduced industry mortgage volumes.
Positive Outlook
- Total consolidated revenue range of $235 million to $240 million.
- Narrowing the range of consolidated revenue, reflecting the strength of our performance amidst the expected reduced industry mortgage volumes.
- Full year guidance now reflects 56% yearly decline in full year mortgage volumes from 2021 to 2022 as projected by the Mortgage Bankers Association, compared to 41% projected decline as of last quarter.
Challenges Ahead
- Economic conditions, including those affecting the levels of real estate and mortgage activity, remain highly uncertain.