BLND - Earnings call transcript Q4 2023

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Winnie Ling

Good afternoon, and welcome to Blend's Fourth Quarter 2023 Earnings Conference Call. My name is Winnie Ling, and I'm Head of Legal for the company.

Joining us today are Nima Ghamsari, Co-Founder and Head of Blend; and Amir Jafari, our Head of Finance and Administration. After Nima and Amir deliver their prepared remarks, we will open up the call for questions moderated by our Investor Relations lead, Bryan Michaleski.

You can find the supplemental slides on our Investor Relations webpage at investor.blend.com.

supplemental will GAAP certain release results the to we are measures, and call, appendix to reconciled in our the refer non-GAAP to which in During slides. today's earnings to Non-GAAP measures a for GAAP be are results. substitute intended not factors conference considered during operations, its federal cautions laws. The forward-looking to of of and the statements actual in uncertainties statements from for and beyond forward-looking control, Blend of which those quarter you particular, statements regarding involve company today's under company's number certain and call are that substantial risks Also, results, a events XXXX differ described guidance many could cause first made statements. its in may or be securities these circumstances materially in other XX-Qs Please most our see the SEC recent and risk identified we've filings. XX-K, factors undertaking any law. conditions update required these to as except commitment statements change, We're if by not

the I'll said, now that With over turn to Nima. call

Nima Ghamsari

to was for call. the exception. Thank everyone. earnings to be The you, execution and today's focus no year Welcome past Blend quarter of proved hello, and fourth Winnie, and one

consumer visibility me XX base. a $XX our of rate. give including expect run slate those including customers, first. To existing our million Bank, the of top us that not XXXX. expected with, on deployed, in high rollout degree we of all into in retail by we to the At banking revenue signed a suite have major of revenue full be annual growth for Citizens yet you some banking side, Let start but consumer QX, signed approximately a highlights And several through we customer bank walk deals deployments solid

XXXX extension started an strong. already year has XXXX for us and was

new growth well Banking and existing a pipeline customers, business robust Consumer by received XX opportunities. of Our driving with is net

XXX by expanding for add-ons adoption us the continue maintained value QX. revenue growth our side, share, institutions per the of funded retail X our industry-leading more to base giving value-accretive in products, loan environment. our of independent welcomed we leverage to financial a see We customer Blend and new top market macro On mortgage we and economic even

on loss for And allowing our operating us side, ahead us for and on net delivered across efficiencies significant profitability of the keeping business, our target non-GAAP in track to cost our guidance XXXX. report we

momentum that Blend And this see being is trend stable their worst also a continuing products. relationship powering the us base as this we're the despite years our ability record and software our signed year. market the in than origination into More continue happy XXXX mortgage expand to ever the in X-figure validates on volumes new top, large, Achieving on our which industry year of treat one cherry we customer the critical deals to X ahead confidence stabilize. navigate looks to QX, enterprise, as for to with increases in across their multiple customers multiyear

products. huge their equity it Amir mortgage these consumer and Citizens more Bank, deal, our help their in home And top Starting a the the that announce who a excluding more equity a base our product. frictionless, X us. to guidance, across of is suite. into on let I'm first consistent, financial interest entire or out partnership experience current other another to pleased significant multiyear in to Consumer starting our depository XX growing QX, into XXXX signed we more pass them I up X for the financial progress to Before on customer deliver our with and one detail home retail results deeper consumer across areas. institutions me customer focus dive will Banking traditional business, by product to with application had for of way products, consumer core end yet signed banking we're banking customers the play a we XXXX, seeing This of By for go

Having one capabilities, bring largest of and their proud key institutions to partner we financial more Citizens strong a are their the digital This part banking as lending with of a Blend choose strong value nation's our and to customers. consumer already adds validation oldest revenue to base. our of to strategy is

I As to $XX our full mentioned at signed run rate. annual approximately rollout banking of we a current our base, consumer million suite at revenue earlier, expect customer be

number half this about was have of we of a in deployments. that signed Given XXXX, quite active

speak modern for as banking when of to rollouts be time revenue, all has is originations. which we these to to to completed, takes it technology implications necessity across While the market starting recognize the

like mortgage market just could scale proven have we our at took we share institutions starting today. in to mortgage days mortgage matches our the and it demanding applied in financial of once product for country, started the with largest Blend the early most the with the our the We XX% institutions playbook work success, And suite, market, we and of leading in to early product. there, our rest in almost the the

getting cast This only and will consumer broader suite. already started, a is just approaching the be net XXXX broader Casenet net is plan working. serve of to the And a how customers exactly first and of sizes. We're the we're variety year we

and is our and strong year. year another the XXXX only Our We're XX months growth alone Banking in expect the Consumer market we're be X to pipeline business. in very Consumer in active Banking into opportunities for

on to mortgage. Moving

X% forecasters to tough than QX lower the industry start mortgage with rates Let's volumes in expecting. led were interest news.

us the $XXX loan XXX,XXX units approximate to While projecting $XXX and billion closer QX. between somewhere was data believe to in XX% XXX,XXX billion the forecast approximately XX% the $XXX to in translates MBA. finance to Using to mortgage this estimate, in an billion MBA was QX, size volume from or industry below leads Mae inside Fannie to

We be volume trends to based quarter. expect QX unit have similar observed the will date QX on we to roughly in

of practice the And Despite seeing of industry our and this, benefit customers we we strong. said that on to in All very guidance we they remaining when overall the even we're the seeing volume. still compared growing because of our lower share range, share market. customers loan consolidates, are the strength our customers more would and with credit achieved this market which in our our market unit efficient economics are Platform many gaining the to rest we

a On from customers top XXX prepare XX for and including of our a sign We're that, future. top foundation base as I days deploy this Already the year, environment a the within institutions platform, tech retail XX the seen by top to to we financial set up union away this customer mortgage competitor mentioned earlier, X for union. scalable another forward credit of credit future. seeing use we've more measured to solution our signed

pipeline, Adding other the including of to financial that, institutions in in our one opportunities XX we mortgage the largest country. have approximately

Our I'm economics, our like Close some encouraged enable in continue also pipeline in across key loan add-ons largest this of are of Blend e-closings to and portfolio. trend only will XXXX their and entire improved customers are the driving defaulting that unit growth as pilots currently

we also standard our approving suites year. this The California close Digital modern loan of closings meaningful the closing unit a for for will benefits that as shortening digital industry the out-of-state this closings January These remote $XX record quarter. experience. as helping setting on encouraging have X saw notarizations grow propel than from We're per loan we even value as seeing with tailwinds trends our adoption to obvious are funded is customers of benefits our financial consumer higher and for economics and a adoption the economic growth regulators believe well. well but state time in a has experience, mortgage line the

These and work had We flow. a some also credit kicked asset-based off only in on advancements Spanish of integrators innovation language verification the soft highlight we of were income driving and verifications XXXX. early

no customers We also features better funnel officers more a of a added us all Flared generated loan drive to loan AI officer. for drive customers Copilot, on of and super XXXX top well was on designed every serve the to that our exception. to product And help in Blend than into platform was officer conversion innovation announcement ever. features expect space to loan early our as as our turn their

our these recovery. signing business consolidation low-margin customers of tough have there's environment factors more our course, cost of and we're combination new growth. of increased confidence have our of the a some more the share, customers vectors leverage all gone but our only by gaining using offset environment, customers or as they're a we to embedded lower some is manage The than in and churn do to Not of a products. options in other is, There to this free

environment a building a we refinance are particular, what our flow preparing of this ahead refinancing historically market will in the In we're down. ultimately XXXX. during investing as for lasts, the the it, when Why? recovery, customers by in customers scalability come backlog for be larger benefit time we're bad of volumes. different rate a Because very likely longer who rates Lastly, refinance next-generation for will high

of and of need To customer rates prepare complex creating our to platform decade a approve verified our to it. Achieving with, solve. uniquely do It's the help improved their scale mortgage for and to of instant the lines rate loan this without worked with experiences. our can every are in teams up and support want consumer aspect proactive we've massively an our we streamlining direct when in suite real make and this, lock software set resources time sure focus to on customers to and a having current come savings up sources their down a closing. to data, consumer delivering is a and is digital one are on involves a result the loan data for simple, combining task this that desperately accurate, ability quote all monumentally and to save existing culmination our and over consumers time integrate our estimate so It actionable who for team will positioned third-party and

It's a can mean our cost consumers come lower of the during customers greater and for everyone at them We something believe win that stronger. this side our to recovery. capture share and can to other refinances a a customers out to a use will

our the $XX made. it over Shifting reduce by give amount million I'm cost, taken profitability our more XXXX way on like significant we've to to proud that operating which to done in of for efficient effort operating out of and we every year. and past loss non-GAAP of net quarter gears, XXXX, us us this the for final is managed clear, This update priority, to our improved structurally our but in a company this up be an sets amount and growth. progress in We've a expenses manage in strengthens business lastly, a We of was to huge year. I'd

believe we we'll Blend becomes where Because for before and our cheaper and able product us. builder such magnitude significantly blend of of the to for That's than its we that we innovate be loan order our configurability, an or operating market had differentiator each faster on critical additional functionality built-in and And platform a platform. as scale leverage our funds consumer enhanced eventually Builder have recovers, and deployed.

ensure this mortgage consumer origination drive and reach growth to from of our of reassured end of macroeconomic the our by without quarter this supporting manage macro. achieve insurance were us improved regardless low expenses in sufficient non-GAAP profitability goal to revenue continue our to We'll would innovation Even fourth to in XXXX customers. the and target sacrificing to We're to give past target of profitability XXXX, this historically regardless operating not at if banking, environment we and economics continued for efficiency, change. our the for the levels the the of commitment and continuing will of quarter, our year by remain this year

parts year. mortgage QX another we we're and plans of the with on most encouraged Overall, business are deliver three, important we committed to growth this the for by our banking our I'm One, protected business; increasing and being profitability execution. our staying value remained we consumer non-GAAP strong customers; period track to two, of achieving

go it our over outlook. Amir, and will pass I'll results to XXXX over you. over who Amir, financial Now to

Amir Jafari

I'm everyone. quarter. fourth today pleased our for Thank be the to joining you, you financial results Nima, to afternoon, good and discuss

marks are progress strong made we of in quarter quarter of fourth business. momentum across operating by Our we another execution. the I'm in We every XXXX period XXXX. and improved encouraged more building the the loss our importantly,

as pace forward, move ahead and encouraged what's for XXXX. up picking are by I'm We we

non-GAAP. within Total also jump I me fell million, all otherwise with in just range. the $XX.X let the reported million, range. remind of Before that stated, in our unless guidance our are revenues you line guidance quarter which were Platform into results results, revenue company We $XX.X fourth

X% by by to same declined period own $XX.X over our environment year-over-year suite XX% mortgage approximately XX% origination million, declining estimates. Our revenue despite the the to

period by at ahead growing expand over economic suite value-accretive targets runway with solutions reaching the we Investor the funded and last this Blend Day further mortgage our value schedule like Our of quickly. shared plenty loan with us same our year, adoption $XX on $XX. per of puts This rose you are to Close as

Turning Consumer to Banking.

as as Consumer reflects This suite in contribution growth million over ramp-ups year revenue builder prior and XX% increase the the Banking compared fees. of Our period. incremental year platform totaled past QX, $X.X from new of powered consumer suite an as well offerings to across our deployments

we on million a CAGR revenue to customers shared of already run at Nima our you, with Day. ramped, us XX% to fully well these the $XX line give us live shared growth once As sight deployments rate Investor and pace direct of keeping

$X.X professional and revenue challenging up with slate of the amidst services million revenue, million, environment. of ongoing line due range and from $XX.X our the to We title deployments. associated We end in also consumer with banking of XX% expectations guidance of our fees near year our generated reported last mortgage high

gross $XX.X to decline non-GAAP on despite year above the period same profit. was million, XX% gross which last profit XX% revenue. Moving Total a was total in company

Our improvement year XX% prior. with continued segment Blend reaching compared Platform margins XX% the showed non-GAAP gross

For reported the from software, non-GAAP of same last margins period year. XX%, gross XX% we from software up

software Banking revenue as gross now XX% XX% high-margin the from last for increased total period expansion year. benefit our reflects to of of Our Consumer same banking compared consumer suite accounts margin the revenues segment

the mortgage suite. vendor margins we've are from also within optimizations benefiting Our implemented our

achievable non-GAAP software to for margins gross be We continue margin belief target affirm optimistic performance regarding XXXX. an XX% our our gross and our represents in that

negative cost their fourth optimization year for this Our the current fourth the last non-GAAP when our programs with margins quarter, improvement this we've reflects from and time climate. undertaken This title in reported for align deliver increasing at to ability margins meaningfully ongoing gross economic title. came year-over-year to the XX% highlights quarter we cost service the

quarter in competitive year previous Non-GAAP savings $XX.X realization million we've cost of operating additional market to rates. we year. the ultimately manage $XX per programs This improvement to cost compared full our last the million identified the fourth reflects for all and with totaled more cost initiatives employee started

compromising initiatives these for areas momentum, and As investment. we to sustainable continue more and growth we move forward, gaining are identify efficiency without

and in $XX.X million in non-GAAP coming improved of QX, the Our end operations quarter year well of loss this ahead was high in from of the fishing our every XXXX. guidance having range

XXXX expect We ultimate goal this non-GAAP reporting our momentum QX profitability continue in quarter towards to the year. first of of this track into as we

operating adapt accelerate to areas to profitability could target model still committed the continue we ultimately further. the With goal on should remain year, actions that, we efficiency identified this and will deteriorate environment which this take our in we dependent to origination earlier have is believe level remain While that the market to this activity, of timing the uncertain. achieve

renewals $XX.X incorporated fees. customer into this expanded growth remaining We translated that committed in new in new the We contracts the saw quarter, obligations renewals and million fourth than which quarter. $XX and versus performance more RPO signings our by million X-digit This X reflecting in QX, reached quarter. strong

under renewals as with we execute deals expansion continued larger see to expect and our as into more Platform our new logos, land enter we and model commitments. in RPO We subscription longer

another our of burn cash measured free improvement marked in cash QX quarter as flow. our by

interest the continue burden of loan. reduction term following down pay here, of opportunistic including to We improvements the our our make

obligation. for to we million provided this debt we amended the made loan the we to during of prepaid a structure optionality and reminder, decision our capital certain With As and add provide our extension X-year quarter, our strong XXXX our optimize term a date conditions. sheet to $XX a balance to load of maturity maturity meet around balance the in reduce position,

in improved combination efficiency to significant reflect having are a our line positive we generation. operate top towards cash actions as resilient Our with impact margins with and

Now sheet. turning to the balance

end quarter. cash marketable as fourth million securities cash, the equivalents, of of $XXX Our

we this we on capitalized the measures liquidity We confident remains have sufficient our our projections taken and are environment. macro based to business well that in and ensure have current appropriate

Lastly, XXXX. quarter me first let on the outlook for of our to move

We $XX be expect XXXX. and QX Platform in million between revenue million to $XX

our business expect $XX.X revenue title million We between and to be $XX.X million.

Our for total to expected million company and revenue is between outlook be $XX.X million QX. $XX.X

to outlook below as We of we well of level own origination date Our QX to which the customer feel on XXX,XXX volume guidance assessment through be or XXX,XXX our based base, customer see QX representative our activity observed is slightly approximately application as on based XXXX our internal is volume the originations. to consistent market. of mortgage broader or total QX own growth

we'll $XX expected the want representing non-GAAP targets XX% continue Our with model in the strong to believe improvement encouraged loss the net between set with be $XX business to we long-term by a at reiterate swiftly shared to we front the and million of we adapt million we've respond evolve. in than you to QX, Investor to of market Day confident us. as midpoint total and have and is operating built fluctuations, I conditions operating opportunities have for remain and the the year-over-year. We that are greater

offsets to are phase, paramount we business we our As update within model in in to will the progress on future. you strategy resilience is our the market, and the against diversification look forward the further continue countercyclical in second to short-term in and we building continuing execute, to This that our adding fluctuations service our here.

ready for now for questions. thank you joining. that, we're Bryan, With again

Bryan Michaleski

for the portion With Thank Q&A we'll this of call. you, begin Nima remarks. and that, your Amir

David question Wells from Fargo. comes with first Unger Our

David Unger

its based better to to stands provided to been have rates maybe from forecast Blend case favorable base sense I the on less where Obviously, good case I a XXXX get funded So and wonder volumes the closer in impact on a the Investor volumes. big for relative your the definitely market Day. the is loan or want share I way. That mortgage updated since said, per conservative comments today the revenue lower heard the pipeline. if

market keep there your challenged Any great. strong can be would if share, your a wondering footprint? color improving So macro given

Nima Ghamsari

-- our definitely how share to time that's and really Good and of things. One, market customers we gaining customers. Yes. earlier, And mentioned numbers. Thanks, taking we've new question. A we some in signing and over of of that's seeing David. that our maintained one couple are market share piece, grow and on top plan

other and thing scale, The time I digital more say get they would that's are like to is this doing things to ready using closings.

per not companies. us you're back a on help us the with not help title sending revenue are loan the paper not there but share And side. on them those So only but of funded and help things, forth lot side, market

So of things that's country potential are in I largest have and banks those us the as in line some logo the one pipeline. we the new mentioned kinds the of the of logos. a then for -- new that base also

a seeing of lot we're interest so And across the board.

Amir Jafari

in prepared your obviously consumer gave what the shared of point, just what in the regards shared feel of banking Investor at David still the across And mortgage with just reiterated terms And good we part long-term Day remarks. we've about by to intentionally. those scenarios with outlook. XXXX question then And numbers, also we answer to the first regards to both your we to

Bryan Michaleski

from with comes KBW. question Tomasello next Ryan Our

Ryan Tomasello

near loan verification you As per certain we more components through in actionable mortgage, areas funded seems the fully example, to pretty there. think are solutions are relative income incumbent there term? loaded product the the the think For of interesting revenue out opportunity

opportunities to about opportunity and trying of fruit to there particular? some think per thinking in are you're about the grow just verification the income lower-hanging revenue how Just loan what

Nima Ghamsari

really on Well, change our going It's our pipeline the because where they very And switch, of big we particular, the remote year. if digital typically. seeing no online for product them even a really a just a our are And I a remarks, customers quarter single revenue them. and e-notes within on. It's online to upside, course, to in can bank closing want had notarization. this and consumer those customers one But are by flip coverage most it we're the as call us expanding of in important product. savings really out, it's don't rollout turn a towards very is deal but simple around every a for California of that's we good standard because and, It's taking notary for Blend they and for their kind of see there a -- signing near-term drives And good Blend states are doing improvements I But in this good side biggest of earlier of allow of real and default. think loan around new the do said have the it well. Ryan, pulls course, that really near-term out to lender customers, what in exceptions do that. Income really becoming of is for the and nice for or opt good consumer. prepared remote

Ryan Tomasello

a RPO sequentially. just obligations. And million growth Great. strong in as on the metric the remaining $XX Clearly, follow-up performance then

think focus on is included platform Can of pricing about given going forward? is, you profile more your can just you in help the the the forward. as the different is contract side the into to starts structures that how out on market for that disclosure mortgage example, going visibility there just we that understand success-based maybe get in fees have, as versus what metric we Just factored us growth metric

Amir Jafari

this obviously we've revenue -- mentioned. this you're it perspective, unit customers saw is and signing our exactly terms illustrates what described economic quarter with last indicative what quarter renewals a it's it And from we're point commitment seeing incredible we've you and that What structure Platform to it, new at shared. -- what also isn't It We whether up, net given to we're is seeing the of historically. logos. the both in some our of of an model, shared fees you Ryan, regards

to We see execute. you expect this grow continue as to to continue just us

Bryan Michaleski

from from next Joseph Canaccord. Vafi question comes Our

Joseph Vafi

Probably the a interest that of as for some for little clients. best some are of is going here and bit if Obviously, on there kind on sector their winning institutions deposits war a there those going second look to dynamics versus about and consumer continued deposits. balance focus customers these the offering on some us talk strong on color new you versus amongst look signings. banking provide for here consumers you're a of with not kind what banks how out product could a the rate financial Wondering have turn the competitive there, landscape of more recent

Nima Ghamsari

Yes. I X into hardest of break Good new the different question. deposit parts components. account, And opening a think I'll

verification, of market, We part to you engine a many at be of ourselves. to fraud do our to orchestration best not really is that. connections around We're and first the providers partners. bit connect we fraud The to in a and some have the so have good of different we fraud ones some quite

that's one piece. So

very actually is you're with. account, deposit customers that help second we something primary our making The and and to that piece that's funding important something

Blend fund built are so transfer, to many bank now, We connection, all different help now in those the into have deposits. ACH, the ways so things maximize debit direct to ability cards, platform wire

deposit part turning a do a deposit opening. we not can or like that is last into relationship deposit where alongside about that opening offering their And their things add the it's Blend, just mortgage cross-sell of account to as which the credit card deeper, card broader about Joe, relationship debit deposit for relationship, relationship the with then killer getting piece, that probably it is app

offerings might most year, our are on customer as have other the they that something and products cetera. we're all loans, deposit credit auto but And a and we're platform mean, which pretty accounts, loans, that focused becomes that so solves the that in personal for well this that life I And Blend. mortgage for cards institution. that's to et unique product for only primary X

with as the Blend think core of we're And at we're are And win on most Blend. so we those to where deals I spending aren't who and the us even time where yet all. market go seeing differentiators customers

Bryan Michaleski

Our comes Dylan William Blair. next Becker from question with

Dylan Becker

Maybe mortgage. two. with on you starting Nima,

how share investing kind done gaining into what take you ahead of originations you're kind and some increasing thinking and of right? sense several to certainly of inflection a control really good Again, You here. job XXXX. the next there seems of few? a potential that talked to per about And a of prior now to a landscape of loan, can funded it evolving about given you're in kind see position over guys you're of Just starting that you years like broader have start controlling better kind in stabilize, of relative the those

Nima Ghamsari

add-on loan ahead has been that haven't our you the customers. it's the in revenue our had been going to in funded Day on would Yes. Thanks we of we're for because volumes where add-ons see our question, say targets that from at where revenue helpful adoption us the that's wide ahead ton XXXX per a Dylan. planned And And or actually, say schedule to and is, down we of the stabilized Investor per of loan, I'd market getting Close is be. are we're shared ahead Blend like this funded really And a of I the very up terms ton. just

forward just stability that Now and up back But interest allowed will rates were eventually, that will changing. what be go going is we haven't, happen. to the look the were they about a their to bit customers have because to like. budget into revenue, They're invest visibility visibility not on little and have slowly earlier, has hoping our but coming down, they they and worried they

get in helped mentioned things And the us it's important helped like and invest prepared be I order, that's people so don't that ready point our right comes refinance so I going to next-generation and place. hopefully, product I as at think obviously, refinance wave our some support that. They really that what digital customers into so closings, to the the get up that And is well before as can the call scale be it well massively to remarks. play, happen the in stability in in processes operations also they right their has described in going to for to technology, which their for have customers

Dylan Becker

it. Got

perfect maybe both the on for kind think of and the like that Okay. about I that configurability Builder here, leveraging as It one obviously, there to other the the pipeline long-term mortgage makes maybe you early. pretty well? builder go-to-market opportunity consumer, about evolution are that's kind know partner thinking healthy guys sense. there about one, then and But something seems seems again, of we angle but interesting, too. going validation, of it's Solution, could forward thinking And pretty how you're be and capacity, That and wonder I as kind partner the opportunity things like. of ecosystem how layer

Nima Ghamsari

I the the for I But on be being really Yes. well. it to sense in and is deposit Builder other well. make products, able of be capacity next it to products to and mean, set such components the the a account focused do really have not I deployment platform, mean markets and building it focus these can but really, within really powerful I of that them we sales of a able ones suite, and industries banking, to things get actually that taken I start broader be marketing, of made has able that historically all origination just probably on. limited as mortgage as partners why but our building been Platform Blend build the will just used, think the marketing, product not it in haven't to we and think Blend want and blocks. And a a the be particular. think opening to focus that at do is We

But do And so some I I some piece. it it start take with build existing deployment, that context some out the doors we've piece by really the us. that the open but taking customers. with And customer we're of specific in to in partners the agree sort year already up hardening last for of, ones that I of a think, we've big think signed We're lot them. conversations to a will with will muscle started of our platform time,

Bryan Michaleski

Sachs. Our next with Mike from comes Goldman question Ng

Michael Ng

just I two. have

First, the Banking opportunity. Consumer suite on

run Could a You called revenue point I XXXX? could was annual about a during if visibility talk some then just to And wondering million out the in reaching quick that that? annual follow-up. just rate have $XX at run I potential hit you revenue the reach rate. we

Nima Ghamsari

Yes.

planned with we question. a it's are for sort signed calculate is The these rollouts So are that of already them. existing this good way customers that

product are of product they being big second these that happens, big in what for the if and sign of one, first a terms product some rollout for it's worth, of maybe we'll the and a it's XXXX. In line Michael, X in XXXX lines, things when customer line

cases And that all so working I a don't think things customers with preplanned already happen but to out. will in of started lot space are XXXX, we've of it these sort in on our

want mentioned also this of remarks, just our I of and half in -- to about that last so signed sort call prepared year. out, And I

the and we're pipeline take really away been recognize much is And to business. the a list healthy, in we're Again, interest. on business and going customer for that it's QX, that good that time of And our be feeling I come to so of lot way give is growing. really growth we don't revenue. that to too about revenue has seeing but But because healthy,

about. So something we're excited

Michael Ng

with in coming expected hit Investor that million to you're this you like if than reduce And that a factors in track on on sooner OpEx. quarter, -- fourth have OpEx $XXX at Wonderful. it XXXX just guys job exceed OpEx better than might for and profitability result seems coming Day. to done Obviously, good you XXXX the that And number what opportunities target? and quarter, it there OpEx Are further gave already does?

Amir Jafari

kind The it. piece on we're that a potentially this, Thanks, at that to a which as our say, to regards to excellence. as quite looking point I we we do you're kind It's we have that the get expectations ensure more But the in these also think we that to that you're stated performing you've things We're of and and us our reiterate. to we are seeing top it continue exposed, efficiency. just We're It's us to will OpEx. of your and the of we making, to with checking these operating well what Obviously, point that as think addition faster. can there's our has just when to would focused could things is hit lot things what do lens on with the starting processes control, which latter to are is of the with macro regards everything Mike. really pertains indicative for I it's revamping there's that profitability with to through we about component of seen what velocity ironically line. expenses, well. to regards builders operational what types of to efficiently our allowing is ability

Bryan Michaleski

KBW. a is Ryan question Tomasello next Our from from follow-up

Ryan Tomasello

when mortgage, on where rates basis? a or a percentage from bottom might on have headwinds of whether And on churn side, think the quantify you basis revenue Just year, over the all competition? general rates Can in think the at that have just win I trends last called continued out terms mortgage recent do the in Nima, And churn. out? changed competitive quarters, also you in also, been like then business any you

Nima Ghamsari

share the our we this in don't market say churn -- -- kept our calculations steady we've on have based share the sort throughout what We that of year. we've aggregate, but I'll broader don't is numbers, actually pretty

the for think X churn, up And setting and share the being the per things just is I there so us those combination funded the of going loan while market is revenue future. up, sometimes steady

and of to already of able scale. -- market And to to I and kinds solutions, think, free us. cost that lower the starting some churned some of the come customers be which the needs them in churned of, indicative Those plan to who being is future, back are to become where things

environment, we've That's similar what the pretty to banks to far XX XXX, it's in credit say sweet and banks I unions. with biggest think spot. especially in our we're that's unions, credit do As we the -- where the best, the top would as I competitive always seen. mean I

process have rates into are of brought we're notable competing a any biggest that in and in also win we seen when head-to-head. I the IMBs. some We our work. haven't And changes

said it's earlier future on the prior stabilized the people like has So and anything market again, look benefited as towards really question, I are the starting to us.

Ryan Tomasello

follow-up inclusive rate just XQ. million then reasonable if your of the Is from dilution looks And share that's Amir. growth as that focus going broadly, to profitability, then count growth And incremental a to another The business share count can if managing X forward? implies run shares that like burden Great. discuss forward? you of comp, around about going approach for in a for stock it guidance managing think you

Amir Jafari

terms regards our because incentivize of dilution the we obviously with one And continue so seen really yes, overall is. we It the from to for of the the top being what way you -- it you've of ] that just shared ], confine within the equity leverage focused XXX [ levels. to to But want we do to in [ very talent. XXX

on on is it area is me we know best think, our backs, again, on see about a it continue regards I those time. dilution, just focus will with just describe that to think of it's we a way see for it. Ryan. on And kind lot the to employee population could that a incentivized we of basis, while us, you And as base for to numbers be that this you'll ensure performance. We we an continue priority the given to prospective their You build spend will that focus this QX

Bryan Michaleski

great all this you All for earnings right. day. Seeing no call. further Thank questions, today's a concludes joining. Have

Blend Labs (BLND) 14 Mar 242023 Q4 Earnings call transcript