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Dec 31, 2022
Blend Q4 2022 Earnings Report
Blend's Q4 2022 financial results were announced, revealing a mix of challenges and strategic progress amidst a difficult economic environment.
Key Takeaways
Blend's Q4 2022 total revenue reached $42.8 million. The company focused on cost reduction and platform development amidst a challenging mortgage market.
Total revenue for Q4 2022 was $42.8 million.
Blend Platform segment revenue decreased by 19% year-over-year.
Consumer Banking & Marketplace revenue increased by 109% year-over-year.
The company eliminated over 780 positions since April 2022 through workforce reduction initiatives.
Blend
Blend
Forward Guidance
Blend provided Q1 2023 revenue guidance with total consolidated revenue expected to be in the range of $33 million to $35 million.
Positive Outlook
- Total consolidated revenue range of $33 million to $35 million.
- Non-GAAP Net Operating Loss of $37 million to $39 million, which includes an expected $72 million decrease in annualized run rate operating expenses compared to Q1 2022.
- Estimated 58% year over year decline in mortgage volumes from Q1 2022 to Q1 2023 as projected by the Mortgage Bankers Association.
Challenges Ahead
- 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.
- The company has not provided the forward-looking GAAP equivalent to our non-GAAP Net Operating Loss outlook or a GAAP reconciliation as a result of the uncertainty regarding stock-based compensation.
- The company has not provided the forward-looking GAAP equivalent to our non-GAAP Net Operating Loss outlook or a GAAP reconciliation as a result of the uncertainty regarding future prices of our stock.
- The company has not provided the forward-looking GAAP equivalent to our non-GAAP Net Operating Loss outlook or a GAAP reconciliation as a result of the uncertainty regarding non-recurring, infrequent or unusual items.