Meets Revenue Guidance and Outperforms
Operating Loss Target in First Quarter 2024
Blend Labs, Inc. (NYSE:BLND), a leader in cloud banking
software, today announced its first quarter 2024 financial
results.
“Blend continued to grow our customer base and product suite in
the first quarter. We welcomed new customers, executed large-scale
deployments, including two of the top 10 credit unions in the
U.S.*, and grew our pipeline, which now includes two more of the
largest financial institutions in the country.
“We also added core functionality to our platform, improving key
aspects of the mortgage process with an automated Loan Estimate and
an updated Spanish language intake form with additional
capabilities, as well as offering more deposit account funding
methods to drive additional deposits to our customers, and
expanding further the ability to verify income in real time.
“Lastly, we solidified our future growth plans by adding a $150
million investment from Haveli Investments to our balance sheet.
Blend is now debt-free and just achieved our best ever free cash
flow and operating income quarter as a public company, despite
continued high interest rates in the mortgage industry.
“All of these things together have set us up for success in the
future, in particular our continued expansion as well as our
profitability goals,” said Nima Ghamsari, Head of Blend.
*based on total assets
Recent Business
Highlights
- Establishing a Strategic Partnership with Haveli
Investments: Received a $150 million investment in the form of
convertible preferred equity from Haveli Investments, marking the
beginning of a new chapter for Blend and the establishment of a
long-term partnership that we expect to enhance our product and
technology initiatives, go-to-market objectives and operational
framework. In connection with the investment, Brian Sheth, Haveli’s
Chief Investment Officer, has joined Blend’s board of
directors.
- Recapitalizing our Balance Sheet By Paying Down The Full
Balance of Our Term Loan: Used the proceeds of Haveli’s
investment to pay down the balance of our outstanding debt under
our term loan. By retiring our term loan, we immediately eliminated
the interest and servicing costs associated with such debt in an
effort to expedite our path to non-GAAP operating profitability and
positive cash generation.
- Improving Unlevered Free Cash Flow And Operating Loss:
Blend GAAP net operating loss once again decreased significantly in
the quarter compared to the same period last year. Blend
significantly improved its cash burn, resulting in unlevered free
cash flow for the quarter of $(1.3) million compared to $(14.4)
million in the previous quarter and $(40.0) million in the
comparative quarter in the prior year. The company is still on
track to achieve non-GAAP profitability within the year.
- Growing our Software Platform: Made significant progress
on important customer deployments, including going live with
Michigan Schools and Government Credit Union, who in the first
quarter selected Blend to automate their entire origination process
with instant verifications across assets, income, and employment,
in under four weeks. Additionally, we signed a new seven-figure
contract with another credit union in May to help them streamline
their deposit account opening experience.
First Quarter 2024 Financial
Highlights
Revenue
- Total company revenue in 1Q24 was $34.9 million, composed of
Blend Platform segment revenue of $23.8 million and Title segment
revenue of $11.1 million.
- Within the Blend Platform segment, Mortgage Suite revenue
decreased by 15% year-over-year to $15.1 million.
- Consumer Banking Suite revenue totaled $6.7 million in 1Q24, an
increase of 29% as compared to the prior-year period.
- Professional services revenue increased 21% year-over-year to
$2.1 million.
Gross Margin & Profitability
- Blend GAAP gross profit margin was approximately 52%, up from
42% in 1Q23. Blend non-GAAP gross profit margin was approximately
52%, up from 44% in 1Q23.
- GAAP Blend Platform segment gross profit was $16.0 million in
1Q24, down from $16.1 million in 1Q23. Non-GAAP Blend Platform
segment gross profit was $16.2 million in 1Q24, down from $16.4
million in 1Q23.
- GAAP and non-GAAP Software platform gross margins were 76% in
1Q24, up compared to 75% on a GAAP and non-GAAP basis in 1Q23.
- GAAP loss from operations was $21.2 million, compared to $61.4
million in 1Q23. Non-GAAP loss from operations was $11.2 million,
compared to $30.7 million in 1Q23.
- GAAP net loss per share attributable to common stockholders was
$0.09 compared to $0.28 in 1Q23. Non-GAAP consolidated net loss per
share was $0.06 compared to $0.15 in 1Q23.
Liquidity, Cash, & Capital Resources
- As of March 31, 2024, Blend has cash, cash equivalents, and
marketable securities, including restricted cash, totaling $135.3
million with total debt outstanding of $140.0 million in the form
of the Company’s term loan, which was repaid in full in April upon
the investment from Haveli.
- Blend cash used in operating activities was $3.9 million in
1Q24, compared to $46.7 million in 1Q23. Free cash flow was $(5.8)
million in 1Q24, compared to $(47.0) million in 1Q23. Unlevered
Free cash flow was $(1.3) million in 1Q24, compared to $(40.0) in
1Q23.
Second Quarter 2024
Outlook
Blend is providing guidance for the second quarter of 2024 as
follows:
$ in millions
Q2 2024 Guidance
Blend Platform Segment Revenue
$27.0 – $30.0
Title Revenue
$10.5 – $11.5
Blend Labs, Inc. Consolidated Revenue
$37.5 – $41.5
Non-GAAP Net Operating Loss
($10.5) – ($7.5)
Blend’s 2Q24 guidance reflects an internally estimated 935,000 -
1,025,000 U.S. aggregate industry mortgage originations in
2Q24.
Note that 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.
We have 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, and the potential variability
of, stock-based compensation, which is affected by our hiring and
retention needs and future prices of our stock, and non-recurring,
infrequent or unusual items.
Webcast Information
On Wednesday, May 8, 2024 at 4:30 pm ET, Blend will host a live
discussion of its first quarter 2024 financial results. A link to
the live discussion will be made available on the Company’s
investor relations website at https://investor.blend.com. A replay
will also be made available following the discussion at the same
website.
Forward-Looking
Statements
This press release 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. These statements may relate to, but are not limited to,
quotations of management; the “Second Quarter 2024 Outlook” section
above; Blend’s investment from Haveli and expectations regarding
the impact and benefits of such investment; Blend’s expectations
regarding its financial condition and operating performance,
including growth opportunities and plans for future operations and
competitive position; Blend’s partnerships and expectations related
to such partnerships on Blend’s products and business; Blend’s
products, pipeline, and technologies; Blend’s customers and
customer relationships, including the businesses of such customers
and their position in the market; Blend’s cost reduction efforts
and ability to achieve profitability in the future; projections for
mortgage loan origination volumes, including projections provided
by third parties; other macroeconomic and industry conditions; and
Blend’s expectations for changes in revenue, as well as assumptions
relating to the foregoing. Forward-looking statements are
inherently subject to risks and uncertainties, some of which cannot
be predicted or quantified. In some cases, you can identify
forward-looking statements by terminology such as “may,” “will,”
“should,” “expect,” “plan,” “anticipate,” “could,” “would,”
“intend,” “target,” “project,” “contemplate,” “believe,”
“estimate,” “predict,” “potential” or “continue” or the negative of
these terms or other comparable terminology that concern Blend’s
expectations, strategy, plans or intentions. You should not put
undue reliance on any forward-looking statements. Forward-looking
statements should not be read as a guarantee of future performance
or results and will not necessarily be accurate indications of the
times at, or by which such performance or results will be achieved,
if at all.
Forward-looking statements are based on information available at
the time those statements are made and/or management’s good faith
beliefs and assumptions as of that time with respect to future
events and are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements. These
risks and uncertainties include the risks that: 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, we fail to retain our
existing customers or to acquire new customers in a cost-effective
manner; our customers fail to maintain their utilization of our
products and services; our relationships with any of our key
customers were to be terminated or the level of business with them
significantly reduced over time; we are unable to compete in highly
competitive markets; we are unable to manage our growth; we are
unable to make accurate predictions about our future performance
due to our limited operating history in an evolving industry and
evolving markets; we are unable to successfully integrate or
realize the benefits of our acquisition of Title365; our
restructuring actions do not result in the desired outcomes or
adversely affect our business, impairment charges on certain assets
have an adverse effect on our financial condition and results of
operations; risks related to the investment from Haveli, including
the governance rights of Haveli and potential dilution as a result
of the investment; or we are unable to generate sufficient cash
flows or otherwise maintain sufficient liquidity to fund our
operations and satisfy our liabilities. Further information on
these risks and other factors that could affect our financial
results are set forth in our filings with the Securities and
Exchange Commission, including in our Annual Report on Form 10-K
for the year ended December 31, 2023 and our Quarterly Report on
Form 10-Q for the quarter ended March 31, 2024 that will be filed
following this press release. In light of these risks and
uncertainties, the forward-looking events and circumstances
discussed in this press release may not occur and actual results
could differ materially from those anticipated or implied in the
forward-looking statements. These factors could cause actual
results, performance, or achievement to differ materially and
adversely from those anticipated or implied in the forward-looking
statements. Moreover, we operate in a very competitive and rapidly
changing environment. New risks and uncertainties emerge from time
to time, and it is not possible for us to predict all risks and
uncertainties that could have an impact on the forward-looking
statements contained in this press release. Except as required by
law, Blend does not undertake any obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future developments, or otherwise.
About Non-GAAP Financial Measures and
Other Key Metrics
In addition to financial measures prepared in accordance with
GAAP, this press release and the accompanying tables contain, and
the conference call will contain, non-GAAP financial measures,
including non-GAAP gross profit and non-GAAP gross profit margin,
non-GAAP software platform gross profit and gross margin, non-GAAP
Blend Platform segment gross profit and gross margin, non-GAAP
operating expenses, non-GAAP loss from operations, non-GAAP net
operating loss, and non-GAAP consolidated net loss per share. Our
management uses these non-GAAP financial measures internally in
analyzing our financial results and believes they are useful to
investors, as a supplement to the corresponding GAAP financial
measures, in evaluating our ongoing operational performance and
trends, in allowing for greater transparency with respect to
measures used by our management in their financial and operational
decision making, and in comparing our results of operations with
other companies in the same industry, many of which present similar
non-GAAP financial measures to help investors understand the
operational performance of their businesses.
We adjust the following items from our non-GAAP financial
measures as detailed in the reconciliations below:
Stock-based compensation. We exclude stock-based compensation,
which is a non-cash expense, from our non-GAAP financial measures
because we believe that excluding this cost provides meaningful
supplemental information regarding operational performance. In
particular, companies calculate stock-based compensation expense
using a variety of valuation methodologies and subjective
assumptions, and expense related to stock-based awards can vary
significantly based on the timing, size and nature of awards
granted.
Compensation realignment costs. We exclude the compensation
realignment costs incurred in connection with the change in our
compensation strategy from our non-GAAP financial measures. These
costs relate to amortization of one-time two-installment cash bonus
payment made to certain employees in lieu of previously committed
equity-based awards, driven by an organizational initiative to
standardize our equity compensation program. We believe that
excluding these charges for purposes of calculating the non-GAAP
financial measures provides more meaningful period to period
comparisons.
Restructuring costs. We exclude restructuring costs as these
costs primarily include employee severance, executive transition
costs and other costs directly associated with resource
realignments incurred in connection with changing strategies or
business conditions. These costs can vary significantly in amount
and frequency based on the nature of the actions as well as the
changing needs of our business and we believe that excluding them
provides easier comparability of pre- and post-restructuring
operating results.
Foreign currency gains and losses. We exclude unrealized gains
and losses resulting from remeasurement of assets and liabilities
from foreign currency into the functional currency as we do not
believe these gains and losses to be indicative of our business
performance and excluding these gains and losses provides
information consistent with how we evaluate our operating
results.
Transaction-related costs. We exclude costs related to mergers
and acquisitions from our non-GAAP financial measures as we do not
consider these costs to be related to organic continuing operations
of the acquired business or relevant to assessing the long-term
performance of the acquired assets. These adjustments allow for
more accurate comparisons of the financial results to historical
operations and forward looking guidance. These costs include
financial advisory, legal, accounting and other transactional costs
incurred in connection with acquisition activities, and
non-recurring transition and integration costs.
Gains related to carrying value adjustments of non-marketable
equity securities. We exclude gains related to the carrying value
adjustments of non-marketable equity securities because we do not
believe these non-cash gains have a direct correlation to the
operation of our business.
In addition, our non-GAAP financial measures include measures
related to our liquidity, such as free cash flow, unlevered free
cash flow and free cash flow margin. Free cash flow is defined as
net cash flow from operating activities less cash spent on
additions to property, equipment, internal-use software and
intangible assets. Unlevered free cash flow is defined as free cash
flow before cash paid for interest on our outstanding debt. Free
cash flow margin is defined as free cash flow divided by total
revenue. We believe information regarding free cash flow, free cash
flow margin and unlevered free cash flow provide useful information
to investors as a basis for comparing our performance with other
companies in our industry and as a measurement of the cash
generation that is available to invest in our business and meet our
financing needs. However, given our debt service obligations and
other contractual obligations, unlevered free cash flow does not
represent residual cash flow available for discretionary
expenditures. In April 2024, we repaid in full all amounts
outstanding and payable under our debt obligations and therefore
eliminated any debt service obligations.
It is important to note that the particular items we exclude
from, or include in, our non-GAAP financial measures may differ
from the items excluded from, or included in, similar non-GAAP
financial measures used by other companies in the same industry. In
addition, other companies may utilize metrics that are not similar
to ours.
The non-GAAP financial information is presented for supplemental
informational purposes only and is not intended to be considered in
isolation or as a substitute for, or superior to, financial
information prepared and presented in accordance with GAAP. There
are material limitations associated with the use of non-GAAP
financial measures since they exclude significant expenses and
income that are required by GAAP to be recorded in our financial
statements. Please see the reconciliation tables at the end of this
release for the reconciliation of GAAP and non-GAAP results.
Management encourages investors and others to review Blend’s
financial information in its entirety and not rely on a single
financial measure.
About Blend
Blend is the infrastructure powering the future of banking.
Financial providers — from large banks, fintechs, and credit unions
to community and independent mortgage banks — use Blend’s platform
to transform banking experiences for their customers. Blend powers
billions of dollars in financial transactions every day. To learn
more, visit www.blend.com.
Blend Labs, Inc.
Condensed Consolidated Balance
Sheets
(In thousands, except per share
amounts)
(Unaudited)
March 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
84,521
$
30,962
Marketable securities and other
investments
43,504
105,960
Trade and other receivables, net of
allowance for credit losses of $128 and $149, respectively
18,179
18,345
Prepaid expenses and other current
assets
13,321
14,569
Total current assets
159,525
169,836
Property and equipment, net
5,984
3,945
Operating lease right-of-use assets
8,358
8,565
Intangible assets, net
2,103
2,108
Deferred contract costs
2,197
2,453
Restricted cash, non-current
7,294
7,291
Other non-current assets
16,299
11,867
Total assets
$
201,760
$
206,065
Liabilities, Redeemable Noncontrolling
Interest and Stockholders’ Equity
Current liabilities:
Accounts payable
$
1,898
$
2,170
Deferred revenue
21,540
8,984
Accrued compensation
5,186
5,562
Other current liabilities
13,935
14,858
Total current liabilities
42,559
31,574
Operating lease liabilities,
non-current
6,398
6,982
Other non-current liabilities
2,056
2,228
Debt, non-current, net
138,854
138,334
Total liabilities
189,867
179,118
Commitments and contingencies
Redeemable noncontrolling interest
47,656
46,190
Stockholders’ equity:
Preferred stock, $0.00001 par value:
200,000 shares authorized and no shares issued and outstanding as
of March 31, 2024 and December 31, 2023
—
—
Class A, Class B and Class C Common Stock,
$0.00001 par value: 3,000,000 (Class A 1,800,000, Class B 600,000,
Class C 600,000) shares authorized; 252,319 (Class A 242,769, Class
B 9,550, Class C 0) and 249,910 (Class A 240,262, Class B 9,648,
Class C 0) shares issued and outstanding as of March 31, 2024 and
December 31, 2023, respectively
2
2
Additional paid-in capital
1,326,187
1,321,944
Accumulated other comprehensive loss
346
441
Accumulated deficit
(1,362,298
)
(1,341,630
)
Total stockholders’ equity
(35,763
)
(19,243
)
Total liabilities, redeemable
noncontrolling interest and stockholders’ equity
$
201,760
$
206,065
Blend Labs, Inc.
Condensed Consolidated
Statements of Operations and Comprehensive Income (Loss)
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended March
31,
2024
2023
Revenue
Software platform
$
21,736
$
22,970
Professional services
2,104
1,734
Title
11,107
12,632
Total revenue
34,947
37,336
Cost of revenue
Software platform
5,175
5,803
Professional services
2,623
2,806
Title
9,008
12,874
Total cost of revenue
16,806
21,483
Gross profit
18,141
15,853
Operating expenses:
Research and development
14,183
26,257
Sales and marketing
10,215
17,568
General and administrative
13,935
20,681
Restructuring
983
12,783
Total operating expenses
39,316
77,289
Loss from operations
(21,175
)
(61,436
)
Interest expense
(5,099
)
(7,569
)
Other income (expense), net
5,653
2,882
Loss before income taxes
(20,621
)
(66,123
)
Income tax expense
(42
)
(71
)
Net loss
(20,663
)
(66,194
)
Less: Net (income) loss attributable to
noncontrolling interest
(5
)
777
Net loss attributable to Blend Labs,
Inc.
(20,668
)
(65,417
)
Less: Accretion of redeemable
noncontrolling interest to redemption value
(1,461
)
(2,056
)
Net loss attributable to Blend Labs, Inc.
common stockholders
$
(22,129
)
$
(67,473
)
Net loss per share attributable to Blend
Labs, Inc. common stockholders:
Basic and diluted
$
(0.09
)
$
(0.28
)
Weighted average shares used in
calculating net loss per share:
Basic and diluted
250,932
241,444
Comprehensive loss:
Net loss
$
(20,663
)
$
(66,194
)
Unrealized (loss) gain on marketable
securities
(104
)
821
Foreign currency translation gain
(loss)
9
(18
)
Comprehensive loss
(20,758
)
(65,391
)
Less: Comprehensive (income) loss
attributable to noncontrolling interest
(5
)
777
Comprehensive loss attributable to Blend
Labs, Inc.
$
(20,763
)
$
(64,614
)
Blend Labs, Inc.
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended March
31,
2024
2023
Operating activities
Net loss
$
(20,663
)
$
(66,194
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation
8,071
16,392
Depreciation and amortization
564
630
Amortization of deferred contract
costs
266
984
Amortization of debt discount and issuance
costs
520
730
Amortization of operating lease
right-of-use assets
861
806
Gain on investment in equity
securities
(4,417
)
—
Other
(234
)
(1,347
)
Changes in operating assets and
liabilities:
Trade and other receivables
182
2,900
Prepaid expenses and other assets, current
and non-current
967
(4,969
)
Deferred contract costs, non-current
256
217
Accounts payable
(272
)
672
Deferred revenue
12,556
4,351
Accrued compensation
(376
)
976
Operating lease liabilities
(1,050
)
(1,003
)
Other liabilities, current and
non-current
(1,099
)
(1,798
)
Net cash used in operating activities
(3,868
)
(46,653
)
Investing activities
Purchases of marketable securities
(48,312
)
(186,206
)
Sale of available-for-sale securities
100,297
—
Maturities of marketable securities
10,600
157,570
Additions to property, equipment,
internal-use software development costs and intangible assets
(1,964
)
(304
)
Net cash provided by (used in) investing
activities
60,621
(28,940
)
Financing activities
Proceeds from exercises of stock options,
including early exercises, net of repurchases
619
21
Taxes paid related to net share settlement
of equity awards
(3,806
)
(2,440
)
Net cash used in financing activities
(3,187
)
(2,419
)
Effect of exchange rates on cash, cash
equivalents, and restricted cash
(4
)
8
Net increase (decrease) in cash, cash
equivalents, and restricted cash
53,562
(78,004
)
Cash, cash equivalents, and restricted
cash at beginning of period
38,253
129,557
Cash, cash equivalents, and restricted
cash at end of period
$
91,815
$
51,553
Reconciliation of cash, cash
equivalents, and restricted cash within the condensed consolidated
balance sheets:
Cash and cash equivalents
$
84,521
$
46,195
Restricted cash
7,294
5,358
Total cash, cash equivalents, and
restricted cash
$
91,815
$
51,553
Supplemental disclosure of cash flow
information:
Cash paid for income taxes
$
9
$
101
Cash paid for interest
$
4,529
$
6,911
Supplemental disclosure of non-cash
investing and financing activities:
Vesting of early exercised stock
options
$
184
$
758
Operating lease liabilities arising from
obtaining new or modified right-of-use assets
$
654
$
327
Accretion of redeemable noncontrolling
interest to redemption value
$
1,461
$
2,056
Stock-based compensation included in
capitalized internal-use software development costs
$
636
$
—
Blend Labs, Inc.
Revenue Disaggregation
(In thousands)
(Unaudited)
Three Months Ended March
31,
2024
2023
Blend Platform:
YoY change
Mortgage Suite
$
15,078
63
%
$
17,795
72
%
(15
)%
Consumer Banking Suite
6,658
28
%
5,175
21
%
29
%
Total software platform
21,736
91
%
22,970
93
%
(5
)%
Professional services
2,104
9
%
1,734
7
%
21
%
Total Blend Platform
23,840
100
%
24,704
100
%
(3
)%
Title
11,107
12,632
(12
)%
Total revenue
$
34,947
$
37,336
(6
)%
Blend Labs, Inc.
Reconciliation of GAAP to
non-GAAP Measures
(In thousands)
(Unaudited)
Three Months Ended March 31,
2024
GAAP
Non-GAAP
adjustments(1)
Non-GAAP
Gross
Profit
Gross Margin
Gross
Profit
Gross Margin
Blend Platform
Software platform
$
16,561
76
%
$
4
$
16,565
76
%
Professional services
(519
)
(25
)%
135
(384
)
(18
)%
Total Blend Platform
16,042
67
%
139
16,181
68
%
Title
2,099
19
%
15
2,114
19
%
Total
$
18,141
52
%
$
154
$
18,295
52
%
Three Months Ended March 31,
2023
GAAP
Non-GAAP
adjustments(1)
Non-GAAP
Gross
Profit
Gross Margin
Gross
Profit
Gross Margin
Blend Platform
Software platform
$
17,167
75
%
$
13
$
17,180
75
%
Professional services
(1,072
)
(62
)%
340
(732
)
(42
)%
Total Blend Platform
16,095
65
%
353
16,448
67
%
Title
(242
)
(2
)%
135
(107
)
(1
)%
Total
$
15,853
42
%
$
488
$
16,341
44
%
Blend Labs, Inc.
Reconciliation of GAAP to
non-GAAP Measures
(In thousands)
Three Months Ended March
31,
2024
2023
GAAP operating expenses
$
39,316
$
77,289
Non-GAAP adjustments:
Stock-based compensation(1)
7,917
15,904
Compensation realignment costs(2)
901
1,096
Restructuring(3)
983
12,783
Transaction-related costs(4)
—
438
Non-GAAP operating expenses
$
29,515
$
47,068
GAAP loss from operations
$
(21,175
)
$
(61,436
)
Non-GAAP adjustments:
Stock-based compensation(1)
8,071
16,392
Compensation realignment costs(2)
901
1,096
Restructuring(3)
983
12,783
Transaction-related costs(4)
—
438
Non-GAAP loss from operations
$
(11,220
)
$
(30,727
)
GAAP net loss
$
(20,663
)
$
(66,194
)
Non-GAAP adjustments:
Stock-based compensation(1)
8,071
16,392
Compensation realignment costs(2)
901
1,096
Restructuring(3)
983
12,783
Transaction-related costs(4)
—
438
Gain on investment in equity
securities(5)
(4,417
)
—
Foreign currency gains and losses(6)
(7
)
(134
)
Non-GAAP net loss
$
(15,132
)
$
(35,619
)
Three Months Ended March
31,
2024
2023
GAAP basic net loss per share
$
(0.09
)
$
(0.28
)
Non-GAAP adjustments:
Net loss attributable to noncontrolling
interest(7)
—
—
Accretion of redeemable noncontrolling
interest to redemption value(7)
0.01
0.01
Stock-based compensation(1)
0.04
0.07
Compensation realignment costs(2)
—
—
Restructuring(3)
—
0.05
Transaction-related costs(4)
—
—
Gain on investment in equity
securities(5)
(0.02
)
—
Foreign currency gains and losses(6)
—
—
Non-GAAP basic net loss per
share
$
(0.06
)
$
(0.15
)
Three Months Ended March
31,
2024
2023
Net cash used in operating
activities
$
(3,868
)
$
(46,653
)
Additions to property, equipment,
internal-use software and intangible assets
(1,964
)
(304
)
Free cash flow
(5,832
)
(46,957
)
Cash paid for interest
4,529
6,911
Unlevered free cash flow
$
(1,303
)
$
(40,046
)
Revenue
$
34,947
$
37,336
Free cash flow margin
(17
)%
(126
)%
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.
Three Months Ended March
31,
Stock-based compensation by function:
2024
2023
Cost of revenue
$
154
$
488
Research and development *
3,352
8,131
Sales and marketing
978
2,783
General and administrative
3,587
4,990
Total
$
8,071
$
16,392
* Net of $0.6 million of additions to
capitalized internal-use software development costs for the quarter
ended March 31, 2024 and none for the quarter ended March 31,
2023.
(2) Compensation realignment costs relate
to amortization of one-time cash bonus payment (paid in two
installments in March and May 2023) to certain employees in lieu of
previously committed equity-based awards, driven by an
organizational initiative to standardize our equity compensation
program.
(3) The restructuring charges relate to
our workforce reduction plans executed as part of our broader
efforts to improve cost efficiency and better align our operating
structure with our business activities.
(4) Transaction-related costs include
non-recurring due diligence, consulting, and integration costs
recorded within general and administrative expense.
(5) Gain on investment in equity
securities represents an adjustment to the carrying value of the
non-marketable security without a readily determinable fair value
to reflect observable price changes.
(6) Foreign currency gains and losses
include transaction gains and losses incurred in connection with
our operations in India.
(7) Net loss attributable to
noncontrolling interest and accretion of redeemable noncontrolling
interest to redemption value relate to the 9.9% non-controlling
interest in our Title365 subsidiary.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508358551/en/
Investor Relations Bryan Michaleski ir@blend.com
Media press@blend.com
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