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Sep 30, 2024
Blend Q3 2024 Earnings Report
Blend achieved non-GAAP operating profitability and welcomed new customers.
Key Takeaways
Blend Labs, Inc. announced its third quarter 2024 financial results, achieving non-GAAP operating profitability ahead of its fourth quarter target. The company signed multi-year deals with new customers in both mortgage and consumer banking. Total company revenue was $45.2 million.
Achieved Non-GAAP Operating Profitability, improving GAAP loss from operations to $13.3 million.
Welcomed new customers to the platform, including Pentagon Federal Credit Union.
Consumer Banking Suite revenue reached a record high of $9.5 million, representing 54% year-over-year growth.
Economic value per funded loan reached a new high of $99.
Blend
Blend
Blend Revenue by Segment
Revenue by Segment
Mortgage Suite Revenue
CapyFin.comConsumer Banking Suite Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Blend is providing guidance for the fourth quarter of 2024. Blend expects that U.S. aggregate industry mortgage originations will be lower in 4Q24 relative to 3Q24. Additionally, it incorporates the impact of our strategic partnership with Covered Insurance Solutions, which is expected to have a negative impact on revenue and positive impact on operating income going forward.
Positive Outlook
- Strategic partnership with Covered Insurance Solutions is expected to have a positive impact on operating income.
- Focus will be on generating profitable growth
- Ensuring platform continues to deliver even more value for our customers over time
- Observing renewed optimism in the mortgage industry
- Strong pipeline throughout the year
Challenges Ahead
- U.S. aggregate industry mortgage originations will be lower in 4Q24 relative to 3Q24
- Economic conditions, including those affecting the levels of real estate and mortgage activity, as well as the financial condition of some of our financial customers, remain highly uncertain.
- Strategic partnership with Covered Insurance Solutions, which is expected to have a negative impact on revenue
- Changes in economic conditions, such as mortgage interest rates, credit availability, real estate prices, inflation or consumer confidence, adversely affect our industry, markets and business
- Blend is unable to make accurate predictions about our future performance due to our limited operating history in an evolving industry and evolving markets
Revenue & Expenses
Visualization of income flow from segment revenue to net income