BLND - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Winnie Ling

Good afternoon, and welcome to Blend's Second Quarter 2024 Earnings Conference Call. My name is Winnie Ling, and I'm the Head of Legal and People 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'll 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 investors.blend.com.

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

conditions I'll as that We law. With turn change, now by are to undertaking statements except commitment not required Nima. said, any call to the over update if these

Nima Ghamsari

afternoon, set our our results continued Thank Welcome innovation ongoing we objectives we're is paying you, new more this and challenges origination showcase serving achieve which important our live encouraged to number off. of commitment and that to a and platform with our through I'm brought value quarter The execution you platform, sharing record everyone. Winnie. today reflect late broadly We the we last facing out loan, signed on earnings our the call. a technology year, customers high Good all to of to of customers saw today. quarter. against economic deals funded We per the second applicability

that that in for well consumer equity. we urgency In And of bond wins more in. XXX share across kind been look potentially companies for half it's of Fed's it's they in and our optimistic. that customer environment but has already see see quite low now I'm the low, while market though, environment where new up. across mortgage we've mortgage is through April rates ramping on say to at market than is that's the more year our show technology profitability have a to to lending and how starting lies as market, new target up periods, forward to environment. rates basis signaling rates them earlier business spoke, Even be conversation seemingly home as year. Mortgage lowest away revenue spend the how going the tell more in in pipeline in want several been moment tunnel been time, and the the And and or led means than had a points U.S. about the particular, Shifting some bond get get for to as growing they're that macro, could greater rate move going the because of they market customers, banking, in activity as the end It's application And for in I'd seems the too business to as as horizon, in Since recent this for of into hearing second this willing the the from a see tides while to fundings to day into what an level hit appetite the lower of ready ahead the mortgage for their the there's last the this the the our details strong forward. shift things the last since the strong been convert year. I an perspective on progress, we meaningful being we're mortgage end levels. or from see that light there's day. we that We Before they're we're operating our latest early down importantly coming XXXX sense to can to week. encouraging signal us shift our a investment particularly is

periods and were mostly strongest bookings the fourth typically our those reminder, unions. our quarters. year budget a customers because third the in quarters credit They upcoming in of banks As for and

months, X And some that past it feel been so, to execute in well important over we've the mature past confident key building during months, a this the we're pipeline, we've been positioned seeing I time. few partnerships and

in consumers the to a Amongst automated helping origination borrowers to our equity way down, at continue across as be innovation, untapped home we tap products equity and we're in equity so platform. home recent of the helping opportunity. an rates of quickly in products in focused these streamlined platform as the real-time our portfolio access this front, we're people product new as are come money be leader their investing newer to refinance and our well with becoming on digital in to the homes the product, as On AI. features on And because is the in will a this additions advancements as well confident much leverage timely forefront enormous allowing loans money more

that, a And platform the intended in Blend, digital have we're into credit platform. on pace made the want adding about that so we're innovate to the already details we've that goal, to already this more get platform. partners area underwriting, to we goal. launched built highlighting integrating in our also of non-GAAP capabilities a span starting lot profitability share highlights, progress we in before we bureaus, and When Builder, to towards things little We these quarter me every ecosystem income to quarter, which platform. work later and Amir that fourth an list, Blend create I our of which some with talk closing, bit doing. how will we're we on verification, And automated our some a customers all could let done start towards But single operating the continuing that our

the announce funding. in account functionality to This platform, new quarter, new with starting we're excited some

So, consumers, This the deposit Astra. unlocks new for debit on we process critical friction opening, experience better is union without that. cost digital a launched and and that And partnership typically piece a card typically for with takes funding or credit account that of a it turn takes to both for functionality. the cost to the friction bank go it a funding through

And so, options to drive able now can customers this be their by access more and deposits in institution. to offer on the the to end end, platform consumers our being to integration

the Union models them and important the provided And new workflows. case. on some in which AI are me for very to is a very still be advancements how process practical large during we're most workflows. are a Credit to You'll There lending incorporating documents hear leverage some use and is We're it to our example, about of latest some now rate also practical AI, language already applying from improvement very with We've Langley integrated of later. Federal this collected the to the for of benefiting workflows, during it documents to position use given automatically, origination platform.

to we they the documents need if this solve. birth a And have And and account, consumer. to area, so, for from opening, also apply that prompt or certificate types important read that economical it can if income to happen wouldn't examples other lower things And simple documentation, data for be but bank confirm to streamline there's throughout consumer new all like spanning real-time early way real-time a the broadly and all simplify the could because the a in platform improving still cheap example, date name difference, things come process. very our make the an or can And there are ability cost verify open that to of application if this of maps correction stage a birth of that we time, and by process expect illustrates to isn't a people AI it is to in are lending needed and and the otherwise in match. of sorts statements account and but AI provided the you the the certificate issue the a

earlier bring to the together the broadly. solutions these that all end-to-end capabilities, also that things create verification, the our to the I market more assets, apply for We AI, mentioned income the customers

so not, and flow and I'm refinance of excited requires months flow. in arduous that thousands flow that ideal I'll institution be our income this. loan from reviewed; underwritten. in second today, as because offering And in come lock that's that approved, down, to consumer of close world, been have of home get dollars are as a with to two. to suite solutions new important examples rates in in Credit share and the has see a some week loan. and taps Unfortunately, In our come consumer X solution of or expanding the the quite and cost, great today account areas process equity institution weeks new few verified. be for It's matter be product talk the then very and timely. that cases, the a And elbow down to needs is we've grease are: next-generation a bit to The savings reports a filing have deposit consumer, particular, complete if time their rates to rate could a to takes around it's about it's look Our because an a you a goes refinance on. one, next-generation

can wins be while couple and continued consumers financially something will delivering need And Citing to with able cost. which to them our you solutions in Our brand-new institution stages, selected market, Midwest, faster that business a provider in serve and the our Last around us loan And be new to customer serve could as while help of our with be partner, flow automated them profitable we to loans. for month, leading like journey. a at quick to all environment, it in takes highlights well consumer as and operational technological quarter, for rest loan lower Blend land the a Horizon way loans with already still we're was on for of the significantly flow to process lenders our and Bank, streamlined home innovation. with and customers institution $X base. cost, and new has customer other goal, automated, them gets their the consumers, interest a data, It for lower focus mortgage help officer can people broadly helping improve chose more greater we're an Consumers workflows for experience that a one to billion financial refinancing great consumers' experience. more Horizon which where of this looking a delivering have with way finances, capabilities this obviously capabilities savings get is technology talked that the our them, will to a refinance a their everyone is was early renewing able I earlier this they of our officer example and might an the deploy. off. payments pretty tools the expand highly of advanced excited very are great in lot mortgage be based and their efficiency a lower Horizon and imagine, buying produce is which much deployed competitive these more power from and of create some about a projects it starting customers. And offer productivity, have us lenders number those if a in we And broad get

in renewal, with it frustrated they a another which bank, with We wanted and than also coming large a a their that competitive application for customer out intake the was and was automation had existing more just They an technology. were tool regional created takeaway solution place.

able have officer chasing and are inputting into we're into of automatic live spend loan since including, for conditions built impressed into to then, weeks. manually example, systems And automation this origination get time to their to lot added the documents. mix. documents the So, to and already flows, down or with system a didn't integrations our delivery is They the these loan customer of origination equity in lending few data only home a our borrowers, generation they've

been about I we have, and also around some specifically Before financial lot to talk in particular, mortgage mortgage, hurt holds investments environment. of I independent banks needs our the to turn to product a made in who want this

in in development we've taken a And curve. ahead of of a features handful them. segment the progress And share resulted product to on. at refreshed new that couple strategy look so, sure make we customer our that's of good And within we're the remain making a I'll

talk officers, of broad and by top them be to first than improvements. manage branch prefer loan our workflows configurability their loan constrained performing officer about rather to relates When own The you very standard. many

a So, prefer might to have for they a conversation call example, consumer's credit. a officer loan before

as While phone the others to consumer detailed may have a much they them, can with prioritize done so before get get getting on that they conversation. more

officers help costs help workflows and they and And have motion. more on manage so, manage we to those their how loan their want them sales autonomy

And so, able in the the we're to investing a better experience the to loan bond fit officers as preferences be configure for result, their workflow. ability of to

required. is banks important more rolling these around independent The second particularly because disclosures automation is experience is for customer upgrade mortgage around refinance out flow, the the a which automated the

officers of uptick automatically mortgage borrowers the guardrails the put provide disclosure are coming customers. real-time, the banks an to based in X many And for what volumes delivered development rates These the we're such couldn't with this a to in ability ideally to timing loan in upgrades and are loan that on to as regulatory So, place pipeline more on such experience required estimate a better. we're in seeing that given empower generate and the just tailored their a independent to documents way. provide loan our potential compliant the in working in, accurately be lower officers to

to turning some Now, highlights. financial

the are home this per we're of recognizing process, of by as value adoption attached our buying our more throughout delivering funded rise. quarter. increased to value applying and economic technology nearly Our and products utilization benefit continue the loan Customers $X

documents notarization home, their So, solution making faster, for electronic to and across is process and customers seeing I'm with particular One the online loan to fully notary example, the our adopt secure within more more start estate online more strength books. the and whole Blend all mortgage sign of an offers borrowers flexibility from their Close, real we're seeing which signatures through of their excited comfort that loan remote from this broadly area we're deploy digital it solution, application about, finish.

of already high-value month. closing customers these Our are completing each hundreds

up but who the something deal a our is given the big also just that While and we rolled them the us because a of more mortgage as the software per for seem this industry, saves lot is these want our ramp closing gets and well more the for price it's and not to experience may both on because started, like scale to getting consumers solution eligible we're digital our customers love unit of that time. as that and than even scale mortgage price, expect This business it volumes loans customers. greater

And that some of data early shows received the incredible. that been has we

X.X couple defect taken to time. days nearly cases. down has X of in on off solution the Our saved origination It typical rates signatures a nearly of the

think these around data that of closings first proof highlighting solution power digital such is and to And add strategy results. with and business And sales why very our the points industry for is service in technology that better we the important. points the can as thesis the drive so, momentum transformative standardizing

their exemplifies funded every for Our current of their our and that of technology customers back and loan expand largest And and in an us anchor are be renewal serve continue was example able our on in we'll next continuing on the $XX latest Blend just Further in year our economic expressed both achieve last mortgage this it sometime mortgage we confidence value this point, to problems. increasingly digital embedding apply who's in to to to solution that their already XXXX. on to is deliver experience per their that momentum growing to coming our interest earn to we ways trust and touches. customers of line year. the closings bottom ahead loan of more expectation one that our shared One ways innovate oldest that value

about our plans already. latest reset we traction sense achievement this their we've the in more expectations is made meaningful like deploy seen we've ways, our to avenue. growth to our year-to-date, And more from behind this customers With it heard solutions feel add-on as for us

utilize outlook remain make economic loans in to accretive as exiting XXXX eligible exceed a $XXX latest We improvement that nearly simplifies that products year's these these limitations focused per is in as on Our will value $XX way as to solutions. down just loan time. funded deployments their the a enhancing many breaking well a

have And $X growth. to $XX over now Banking. our Last near-term running the consumer of this statistics rate, XX% that Langley than this XX% annual with of growth shared Credit been done in a Turning quarter, of credit business, States able proposition implementation billion customers our Union, from teams pacing compounded XX% get generated execution Consumer revenue quickly one great implementation United value the time to week, as year-over-year assets. existing expectations a we've top marks the well as our who and compelling we XXX QX X teams and of for testament growth ahead first a in of go-to-market unions have to customers. on some recent banking We're more the business the representing million and who shared new Federal XXXX. speed to sharing rate XXXX run to and the job of our up million largest

highest digital for key in they've ever reported openings solution. staggering openings on month live account significant And they've since live since for increase selected across them. a Langley in improvements the going And going XX% So, with several account digital with, areas. July account new seen Blend's deposit March, opening representing record Blend. Starting

contact required XX% many applications time. while is the end, pipeline. X% expanding The pipeline of And unique you a intervention this decreased they opportunities have X products which edge XX also our making up of our end can half for from new about approved of in operational applications that with originally why on to customers year, across And business to efficiency applications of of competitive at our or Blend. we On of that the come second consumer rate quantified any after X over implementing Blend who the just with center combination driving cross-sell the Coming our back suite in creates us our full improving see launched products. in customers.

of makes evolve, interface does this knew the it numerous there's can some time operating a take signs would have which For can are time. systems they have product of to bank consumers and feel different wanting years, time, inflection we you're we've but and take trend do been to understand And for there. assets The in institution sense union simple an this everything them. in when for talked silos, about single or that dollars all of different like It billions it we does point. recent lines, credit

with have and large Citizens Navy like Credit financial Federal Bank. some large deals institutions very We Union

particularly into other that been much the solutions trend the benefited lending. have up the area prospects meaningful encompassing how of partnership given macro for that in unions equity are credit business, around are us are how areas, home Consumers And from this expand in these they're or years, home and large a vision corner homes. towards portion Shifting much platform, signs as of comes makes have up large and very of equity have making Blend built often to ready has owning of price may they our entire seen past to firsthand, and a turned ones equity frictionless that cross-sell cross-sell growth. Home a low-rate down, gears they These a progress homes opportunities. that's large in current find we've all their power equity the in are tune and way. of to We environment the rate banking. pipeline from accelerating tap over appreciation growing a and amount few the that a interest themselves the can of have differentiated we

pay to that have can start it And they or down may of project consolidate be again into remodeling debt some renovation common expensive project home more place. they that one or so,

a want in as so, area And natural customers result, this serve to for consumers to become our it's environment. their very a

tells me our year. To Amir in Before key and guidance, to see that our quarter Even take cusp reiterate in our observed I translate I will the moment data the just to signal into an in we return of for the help activity be be poised business a It's business more seen landscape. hand to may lending underpins that off Blend the shift that week some half areas our we've of past in encouraging the that results this the of the growth. on second upcoming the importantly, momentum let could a the is nearing start, of benefit. to we

have customers. more We

through have of lot We a going the system. loans

incremental it. We that have every one from lot we do, we're good a market value and more share. revenue And more lot getting we're creating a

just And top the that macro give financial of lot as leverage so, expense will the a structure of rebounds. done overall our work us we've optimize to on

customer bringing Second, of creates investment it. on and of for to platform ideas flow resonating up. our ways. community segments. is consumers And up or are haven't on evolution ground real-time innovate the together more our the of the our of compelling refinance applicability home we need technology and such new simpler each that come right our ways years let experience and our of the from at platform integrations This way businesses their faster in that solution is working own customers new after maturing modern the This various the to serve AI we that's our build much been work much as has equity refinance moment. or and the that this who the just our in experiences all

applicability to to industry that to the flexible well-built no of customer the solve some be RIs, and technology our of of we continuing the challenges the are limits you and most of that the result more almost maturation lot a pipeline value base well facing as and seen our that aspects solutions. of we to to it of the needs in our evolve think lastly, a of excited that there with as with to do serve. our we're I've apply for healthy as is to can for solution, time. just And One great And the can has I'm enough them broadest that us. long share macro unique In as I opportunities

Our our listing customers And using growing sales team, origination myself, top choice we're it's discuss the over including set to Amir experiences. a clear them over some Amir, ahead, as are turn to partnerships the from as are soon. customers, of to and that, -- modern me our And establish And prospects of on few innovative phones lists more that the wish our sharing busy is very new of results. products. to I road, to what's existing in top the incredibly the to busy. best-in-class to well with as staying look who with forward mind Blend next for even you. second focus our we're deliver let you that customers, focus all quarter our months

Amir Jafari

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

per non-GAAP increased quarter our fourth loan, funded one our the another of a we operating We reached customers of profitability. took quarter closer and new of We strong welcome to in goal period We've consumer Our second marks economic banking. platform. value to pace reaching new step growth for high several our execution.

platform just million, which Before our of and $XX.X that otherwise in into guidance. the of second high-end the results midpoint also remind I midpoint the of Total reported are were non-GAAP. million, results, guidance. jump stated, the ahead unless the was all revenues me near of quarter company ahead of let you We revenue $XX.X our

in $XX.X mortgage in with suite for our the expectations Our originations line decrease in a quarter. aggregate industry revenue million, was

third we industry in together increases mortgage year in the rate will customers year, market believe if increase into originations We and of this assuming volume pipeline Nima homebuyers. compared aggregate likely should in put and to QX. up quarter As affordability as And is multiple new do future the quarters. year, persist the predicting strong shared, to this right fuel cuts brought be a growth next the number a for

Turning highlight. another to

more step-up rates value Our rates reaching by in rose for primarily funded by and compared our to last per continue mortgage be The to last year, suite driven same than loan approximately $XX by loan period quarter $X funded economic a the of $XX. attach compared XX% accretive to customers banking year-over-year of drive key other platform. our growing value for Consumer expansion of million. with Shifting higher products of products. with our those products footprint to add-on revenue the $X our total part to continue to

into Our our is Day, guidance are the to of new we launch target. the as well adoption deployments as we on we quarters Investor track platform provided suite incremental accelerating pace CAGR right at of fees, X-year growth more of our X XX% XX% the full add as that solutions. With exceed year-over-year just growth,

of guidance We $XX.X year. which period We services reported last the also million, generated of $X.X professional same our high-end was exceeding revenue, the of consistent range. million revenue with title

gross was $XX.X profit profit. non-GAAP company gross to on Total million. Moving

a non-GAAP gross prior. compared were segment year XX% XX% platform margins Blend with Our

compared reported margins we XX% software, Our prior. with of non-GAAP gross software a year XX%

in a that invest XX% the is million year. $XX.X Our last with non-GAAP compared the at in the which for title margins quarter, totaled costs period was Non-GAAP quarter same $XX.X with the This second operating more came million we than boost functions, for to efficiency second to leading investments. our to ever. as durable business out our platform continue also And year. and is balance resilient we previous and go-to-market consistent in

range. in of $X.X our end operations guidance coming QX, well in from was Our non-GAAP ahead the million loss high of

towards profitability We in expect QX. more improvement target of in QX as operating pace our non-GAAP we

for of For the quarter second of $XX.X an million. This represents compared when landed the the million, our our $XX.X our obligations of the increase where quarter year-over-year. marks $X.X in XXXX, remaining at consecutive $XX.X RPO customers. million to XXXX year-over-year, compared by second quarter was fifth RPO which with QX quarter, RPO balance to performance second increased the QX pace ramp go-live of decreased by given to growing million XX%

in year, to $XX.X cash bring second the Now from last months' term the outperformance. a renewals which approximately in of deals, full the flow year. for the of which X capital of quarter to million $X.X quarter quarter negotiate of starting was a from include with should at the down flow with same worth in quarterly end negative received that Free half which growth, negative loan, new back expense year-over-year we April Free the to us the along paid number million, did interest we're we're for valued compares and cash our investment.

the cash customers Our that million the created excludes slowing positive end QX, $X.X Despite in free unlevered expense, their flow second isn't of of quarter. the which in we've in the was cash at momentum negative interest Many fiscal down. the includes time free pushing impact of towards decrease our -- flow, year. their which renewals

we'll So, sometime of influx company is QX reaching positive operating and profitability. tends cash shortly expectation seasonally a quarterly is cash of larger high at that have prepayment after still flow level a operating we're The generate to inflows. efficiency. The debt-free, non-GAAP

program our reduced share cash first we of share our with equivalents, has up that million. $XXX have with needs, quarter Board also leverage cash. million strong significantly We Haveli. of authorized are visibility Beyond restricted securities, excited to of the ended and sheet cash this, we light marketable towards with repurchase inclusive that to seeing partnership are our of In cash, profitable combined we $XX approximately from our growth, balance additional the

our current expense have our does product business. that instilled we the believe our properly offerings discipline to reflect valuation market the comprehensive continue not that in We opportunity, and

investments of we of you. technology decision the Nima are all conjunction Additionally, shared with with in planned the that making contemplated next was generation our into origination this

balance a confident our We are sheet of shareholder to objectives set current strength in and achieve is position our investment provide return. of

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

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

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

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

volume of observed internal QX to assessment level based as activity customer date our based an base. well the application through guidance Our customer own on of origination is on growth as outlook

between midpoint operating And I for to XX% for joining. expected for Bryan, total year-over-year. now you with improvement million and Our million non-GAAP that, we're loss $X questions. again QX, $X a be net thank representing with ready the is

Bryan Michaleski

ship your that, Winnie [Operator Q&A for of to portion Instructions]. we'll Amir remarks. Nima, the you, call. now With the Thank and

Dylan first you Blair. comes Dylan, Our from question Becker mute go and with please William ahead. can

Dylan Becker

Nima, here big an the supply as on wonder, Gentlemen, for year. Obviously, of you. starting rate balance been but nice a has Maybe news recent I throughout obviously, constraint impact here. on job has well. dynamic the that the affordability, some

the here, kind to of into and side of of You the equity recovery. start some some supply market incentivizes shift can called that lock of home But getting piece. from away that the the sellers a kind help more of to demand out we in side that from both some push fuel

Nima Ghamsari

Yes. It's for question. Thanks a good the question, Dylan.

out, interest cash money well. interesting everyone unless you're are to that sensitive in rates money it's rate-sensitive taking actually, But to very be purchase relatively have otherwise. understands be to think tends to as to refinance you be in the have I refinance -- but you interest the because

some them. direction. it's when moving those think move the of see handle start I consumers that it's, Start locked for unlock where time. having also We have long will might we're felt it waiting been new in X macro are okay, like feel of supply, sort think on going a So, seeing think to rates start I And demand. in rates and new general to the who right a

move in can for a I long it's feel wait X in the a been and sidelines and homes on I handle long. So, year not home waiting because, buy have the difference only time big and that like so yes, or people that new a for refinance

Dylan Becker

Sure.

And sense. commentary. obviously, go-lives. there's consumer perfect makes initiative the That sounds of bit and what here Okay. like maybe notable pipeline as a great see too, been but healthy an it earlier know to well it's I like strength sounds some

fuel of some help been those a of that's be seems kind pipeline referenceability, and realized of of the value early the to activity growing that some tied the customers nicely? from us helping that's kind So, pretty later-stage of get sense

Nima Ghamsari

how surprised by than happy out. key to That's numbers every more X%. how We quarter we customer many referenceable. X get We good, to Yes. the X drop were case so intervention in Actually, Unit Federal because interventions reference of the center Langley frankly, study, internally. even drop, down the needed. the was, word going the Obviously, in use Credit contact quarters And believe tenant we ability now almost but love they maybe that solution. want same good I solutions, it turned requiring did be want the our be accounts I growth we to a in them it's XX% from to as idea XX% contact when

building their rolled do to intervention. think for different And capabilities even really I kinds it. So, that a we benefit almost another of every more deposit offer, or we have that product had feature anecdote for into to today was contact but that out because future is that that built critical. without future It I center build doubled opening, things that people who just they the that not those same so saw become a capability platform, and product then things number getting customer the we -- every they of it's account like our going that a from new product, customer. are that flow rollout into not Actually,

true self-fulfilling So, customers. for a good better on it prophecy flows sort keep we this making can becomes north and time of if executing our having over these

Bryan Michaleski

Our Joe? Vafi question with comes Genuity. Canaccord from Joe next

Joseph Vafi

kind budget them take then to guess, to follow-up. commentary be quickly ready nice Can ready Guys, of I to progress want a position get going guess, really it the business. in time have they Nima in up good and quick a when mortgage get to, that is And they on customers really I'll for -- in Or volumes. nice for now know it's afternoon, see whole get if here? to following rebound a a another the rebound. ready cycle to be a I positioned

Nima Ghamsari

if I business lower they being another their see they great of a Yes. I customers question. does want to their as to going it able One, mortgage macro the good help a critical if mean, -- forward, on payments, It's monthly shift. where think part it is something

are kind abnormally to move new on standing of terms of some month were for wanting the or quickly. table customers we size. last came the deploying of who so, seeing to their I the suddenly sidelines quickly, quickly And really mean, technology. really in X, organizations in They And by

And that house. the at if of so, the move it important out it's enough very these organizations quickly can top turns

seeing them, be but a won't definitely as institution that all to more well of it true we're smaller, sizable Now, nimble ones. as

I for long-term. loan locking the consumers work can solution refinancing lots so, their should in it consumers, it few their get of mean, it's it's It going to excited a first hope ability out become we of long-term something to work getting think how And that we through their is be powerful goes pretty millions and this serve that. solution think -- go and -- just and going we're hopefully, important we where place. the to how and help Having a And pretty it's in minutes, I a of be to build of for show sort rate pretty the how mostly a going like out. through should process market consumer customers, all can to

Joseph Vafi

I flow know or kind that. note, you Sure. something I like you that then with think pretty I called the were you on there. in beta refinance And exciting. That's that same of one mentioned think, refinance product, customer And

process there's it than does getting definitely purchase production if sometimes on like more it's a out a to refinance a wondering product. line feel that even mortgage. great know the general because And arduous that is time Just I

refinance a next-generation color product. just So, little on wanted to that get more

Nima Ghamsari

we long-time. our credit, there's next in we realize to asking have soon really, -- to will already fees need compare price case. platform to it, and we in you customers this available refinance, want up. favor way. the it, those X existing do we the They're Yes. payments to things X in for sort much the roll a we us to to do bake let's and a already is capabilities at using highly said, so once the that And just to be plan working growing loan, capacity out. sure be be that new it to fees, your I make need only Think new in you Joe. now, existed terms mean, I of rate in to do One as a able we're calculate can in loan of have say about list, it's run our we the encapsulated right the one, mean, as impactful to lined need that, have timeliness this you we because our old I'll it But of in a the make there's I same to can capture. call is of are interest check the question a you your lot the interest you of need handle what new that like things

income underwriting the it in steps, and have order intent to seamless on generates It's proceed bring how to cases, you're rate. in mean, it those get I how a do already bring verification steps, called cases, about what's unique then together important. in it to You need some if that those all a verification some documents if way. an asset existed lock in we we very together to have a in platform. steps platform our but in really consumer is it's accesses, Those

And so, bringing we've doing it's together months. we -- already already something X for been about

their reuse same have systems our effectively is feel the And a out our we lot so, reason of them. roll be think of to able about going state I that we'll customers in we And place good back-office integrations that middle it's and to the the already to product. with

it they aggregate, would too take soon So, will market get say, in from those long broad to I something it's with us I for in think things. benefit the tell how to we'll sometimes adoption the are extra possible. But move institutions, make sure things. as measures because as fast right they do regulated this seemingly like as take want we're to to these going to

Bryan Michaleski

Ryan from comes Tomasello with KBW. question next Our

Ryan Tomasello

income just just be on competitive adopt given It'd is that overcome solution biggest products Nima. same called can higher the where you for traction for go? mortgage, you company helpful with seems verification? the pretty that are how rates interesting the where you closed nice traction then to today, with in solution? space what notable those the a product? are thinking seen think could if the And find that of you generally, like they some customers about the in as the terms generally, for out attach opportunity And dynamics In you And Have add-on follow-up income to of hurdle any getting topic, that incumbents. opportunity verification quantify you've a cost and

Nima Ghamsari

things don't within can on we this digital out us. files faster, and ahead doing seeing share signature the of digital close, still -- where in the of the lot I I that. either of see white base. a of on called products. help of our to customer space There's closings our great customers but actually, Blend like We it's can lot we say the specific errors we interesting we've attach call, done loan And traction less some them a because for of also have product, have X benefit lot rates loans opportunity these Yes. still documents, close are current closed during a

answer XX a that a And natural XXX% go hear have an in -- the this not industry today of digital there's pieces a obvious digitally, time for you that's pretty of to well, It certain as the or certain in very do go there's they you It our have not not a myth than it paper, even do -- want that to so, I just on than your it, it volume even closings. takes of those lot eligible rare. why a some XXX% I offering true. which small, even sign entirely process. of there closing. It ends are It's which question, takes not to mean, to where time around and today? the And note of customers seems part people win-win. not up can't difficult the seems want it around sometimes less to being if of we digital and But even is person, country in just that's and XX% more do from D digital have case, XX% but a digital can different not lot closing. of fully make have a closing, country states electronically. it hybrid others. counties the is parts of call do And are in that to

keep have we're a good And so, that on want that attach the market the is to ahead the of we but for of closings excited mortgage close, building and answer runways make solution. how to industry short the we rate, all to standard lot us a happen. of And

solution. one On the not income income the piece, one I interest am or piece excited about is it's thing vendor The piece. about about the income

bring all a what If provider with you're ours, a a together that -- pieces that a is self-employed. can you solutions want them and help can who consumer is those consumer all you so customer necessary the of

documents a them the in who real-time. them a who's and You data to provider, using payroll want with to the from AI read traditional you upload you can help help documents wants consumer with their consumer can

have And will broader the I I'll Blend bring space to happen that to so, of in what that waterfall. that think the things call is income of income best-in-class set broader orchestration the

and to interest from verification, customers. and But long-term. way we're automated that's make the want find faster They our for I Blend think cheaper. real opportunity definitely income a to seeing

won't very specific that. numbers It's business find And we interesting. so, area of I near share around another

Ryan Tomasello

in follow-up just income muted think guess, is that's to is still this sounds the clarify, quarter, that's profitability case, for operating like XQ achievable? given And is the negative fourth Maybe a for Amir. this but just the I more And seasonality. something has XQ typically, year you It expect then you better the of rate the And you'd to bridge you have or help operating from pull light also, quarter be profitable quarter inflection? side, that expense cuts. fourth gets the us second after leverage sustainably to on remaining? income that understand if the But there just

Amir Jafari

we've definitely the to in to and just path first line confirming our question, we're stated think, have foremost, confirm QX, breakeven of still I Thanks Yes, that. for sight to everybody, yes, although Ryan. and for we this,

just So, our and stepping how with we what including expenses, feel you results. in operating our saw great, loss we're to regards ultimately, net operating

an right, little movements QX seeing time. in of will bit what definitely macro, seasonality a putting you're take overall in and the maybe it and you're Second, aside from still of of aspect the news has negative kind the

which are it important able maybe notion to forward be to us. of is, shared important quite is sustainable? us QX, of we QX, how we just line of think, our is also Investor future, we speak. our foreseeable is at so, is, That Day, be and takes a to because free future. will to achieve plans the that to consistent oriented us are which on this levers. what your move just able intentions have in at guidance for of notion point kind to earnings lastly, sight And of our being I low do point, it's where do then haven't so, with emphasis which we becoming I stated And And as have call, we foreseeable this the to this seasonally flow shift although in in head, an And breakeven whole to of to given something wear we outside us be going to much this in more cash

directly, and today, one The velocity, is using of of in not operating we rest organization trickle through more to its lens process Builder expenses that it's that maybe Our of ways seeing helping be that we've to again, Builder, momentum, the to shared kind we're but efficiency. way them levers this not a way, the just terms And what And more in just of dissect at we do not that, the is the to ensure results necessarily but with find you're kind just of excellence way every to the are operational looked the operate efficient. by us aspect across quarter. that's the historically. just maximum

Bryan Michaleski

Wells David with Our question from comes next Fargo. Unger

David Unger

as strategic profitable versus of achieving in stock? should think the flow for with growth, towards free work through especially as support back breakeven investing cash near balance comments, the building future a just on improving the cash you somewhat partner, we So, flow about think how buying you the between

Amir Jafari

is best what will there because, are One, was never again, been by Phase a far Blend is stay just around plan quite that, sentiment balanced. mean, nor we've us far mindset extremely let the when in say that remain the following swing we And we've the -- answer of this let negative we created everything of saying it that for when too swing I very been I'd it's X consistently maybe in The reason kind notions. we is quickly David, the happening short-term. too we to is ROI-centric. things balanced pendulum

refi our home in of them level And so, equity elements of heard we few the a of have you've conviction speak an A high some of initiatives. Nima to, as example. next-gen flows,

our of kind of and scenario, followed of part in going to renewals, path build, approach and positive. either lastly, hear cash notion free then we sharing build with over to a of it's just -- cash land free more as exists balanced what base conviction of can see more get things to that we this taken approach RPO, the The we've is as of And and we're customer the in you continue sentiment by so, this And is that as you'll some to you, what I'd up you see what flow. that ROI. which drive and take is time, customers flow us these like

Nima Ghamsari

ever spend going X you very just drop for that have a I is On capabilities. of integrated, Those as And probably money and capabilities it of things X and up, a doing. per there, build, a our this the fast like think about drag quick we to because calls, at examples innovation what you so building give David, almost we've that because all prior practical we new small platform of refi We I'll when to lot time like it too. up building market fraction. most invested a platform our us of for note example, flows. but we've we And add they platform so so Maybe through -- innovate and products. it talked different It quarters a most have allows flow ago, blocks, complex And was very for us to innovation. next-gen can to built I built like is had -- has in I the own relates of think one to LEGO built are the just things high fraction built, innovate or to product, mortgage many this are in like some allow extremely we've and ground we you absorb cases, efficiency that underlying dollar powerful. even, we built-in too from that the first and that level to it's much the

And to want so, But we I continue clear. that it's sure innovate. make for on that a making us little bit to

and we're here and despite guided targets the to managing operating We free our things. operating to positivity cash to targets these have still innovation, those hopefully flow a like great profit soon, we've longer-term foot and and gas loss hit all

innovation pretty about forward side. our I'm excited and the So, path

David Unger

I me. Very the just all for follow-up much detail. a appreciate And

I'm up So, past missed this, market's when couple XQ you the in but how just I that given forecast, much wondering if of the sorry off in so based guide, came with the the your of it's moved of internal timing guide, weeks. terms

Amir Jafari

conclusion a takes a submit. weeks they're The se, loan the you're in and start time movements It not to numbers. last funded for seeing of go those you per as about David, necessarily that the X through think

positive, And the we're off Nimo to seeing what built last -- seeing question, was but early before very alluded customers, the of really indicators I'd with are say so, that you're off what seeing as your our we our just it's weeks. of that few to, in some built are was guidance gist

Bryan Michaleski

a further of day. Thank questions. nice you today's all joining. rest no earnings Have for Seeing call. your This concludes

Blend Labs (BLND) 8 Aug 242024 Q2 Earnings call transcript