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Dec 31, 2021
Blend Q4 2021 Earnings Report
Blend's fourth quarter performance was driven by the Blend Platform segment, with revenue growth achieved. The company also provided full-year and first-quarter 2022 revenue guidance.
Key Takeaways
Blend Labs, Inc. reported a Q4 revenue of $81.0 million, with Blend Platform segment revenue reaching $36.5 million, a 19% year-over-year increase. The company's mortgage banking market share increased by approximately 5 percentage points to 15% at year-end 2021. Full year 2021 total revenue of $234.5 million (Pro Forma full year 2021 revenue of $363.6 million).
Total revenue for Q4 2021 was $81.0 million.
Blend Platform segment revenue increased by 19% year-over-year, reaching $36.5 million.
Consumer Banking and Marketplace revenue increased by 46% year-over-year.
Mortgage banking market share increased by approximately 5 percentage points to 15% at year-end 2021.
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Forward Guidance
First quarter 2022 consolidated revenue is expected to be $63 million to $66 million, reflecting a modest decline in Blend Platform segment revenues from their first quarter 2021 level, and a decline of approximately 20% in the Title365 segment revenues from their fourth quarter 2021 level.
Positive Outlook
- Continued U.S. economic growth
- Federal Reserve interest rate and open market policy actions in the context of current market expectations.
- 2022 Blend Platform segment revenue reflects slightly lower full year Mortgage Banking revenue from full year 2021 levels, driven by the expected decline in U.S. mortgage market origination volumes in 2022.
- Market share gains in the Company’s mortgage banking business.
- 2022 Blend Platform segment revenue reflects over 100% growth in Consumer Banking and Marketplace revenue, including the expected transition of approximately $15.0 million in revenues from the Title365 segment to the Blend Platform segment
Challenges Ahead
- U.S. mortgage market origination volumes declining approximately 35% from their 2021 level, as forecast by Fannie Mae and the Mortgage Bankers Association.
- Expected decline in U.S. mortgage market origination volumes in 2022.
- First quarter 2022 consolidated revenue is expected to be $63 million to $66 million, reflecting a modest decline in Blend Platform segment revenues from their first quarter 2021 level
- A decline of approximately 20% in the Title365 segment revenues from their fourth quarter 2021 level.