BLND - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Blend live stream. [Operator Instructions] I would now like to turn the conference over to Winnie Ling.

You may begin.

Winnie Ling

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

Joining open Administration. After Head and Amir Co-Founder Jafari, us prepared Head call Nima Nima remarks, for their and we'll our and Blend; the Amir and Finance of deliver today are up of Ghamsari, questions.

find Investor Relations at investor.blend.com. our supplemental web on slides the You can page,

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

Nima Ghamsari

third public marks quarter call. this Welcome, non-GAAP quarter thank excited first start by our that our company. income as joining everyone, I'm a quarter announcing to earnings positive you for and operating

prevailing to promise, on building around rates while for of emphasized on And delivered sentiment renewed invest industry. mortgage businesses, our expand profitability, X% past is I'll regardless is to positive in outlook conditions. a the our quarters, and our base. we're few XX-year commitment within shift industry's macroeconomic reflected the that mortgage with willingness this achieving haul, The pipeline their improving, which both the high mortgage, on we existing the in and Over I've growth seeing customer optimism remaining shortly. Despite in long quarter, this

each short, executing with new only ultimate the with this single of Lastly, shared of existing quarter. In quarterly over on to one would milestone, of still customers also goal. QX momentum. reaching our and Banking our to every day. characterize that aim And ones XX% to of success precipice Profitability the the the beginning we're is surpassing same we're last vision time word: by at industry, meaningfully, fueled it's is our reshape We and XX% growth and not a journey. And that addition continues quarter we're I grow growth business Consumer Banking. figures Consumer This our on steady target X compared of previously growth in the now but revenue year.

closed this we significant Just deals. X week, past

bank deal a with Consumer Mortgage in second mortgage a and to was on We're bank was our leading closing by with servicer, another platform. also join The first Top the Banking assets. a XX XX Top

a achieved how simpler to growth Philosophically, we're see, for long we're model. momentum can by discussing we're well efficient, positioned it quarter, software-focused the over committed transitioning profitability, into this we the you leveraging for why and let's begin the future. as haul. Diving So profitable to

and experiences Builder of a best-in-class platform applications a allows origination that solutions. We've broad our to customer platform, in solutions. invested in and whole lies also our build do base millions faster base. which Blend and creating suite effectively more strength blueprint cost homeowners partnership enables is partner us us experiences to processes part enables into example, in to positive the our aim this for create for this the Our of across journey, end. Amir our across complexity annually, our building the value partners partners a is base. This net advantage, innovate these allowing of solution of and take the just helping origination, origination piece low-cost this In have mortgage frictionless, talk entered impact but customer us a with of minimal market them is our QX, an one to which combination broadly part strategic financial of macroeconomic our to amazing unique this about for environment. But puzzle, The we customer will and cost next-generation of base. customers experience regardless key software bring platform like, our enable to in our later, new through we Rapid insurance operational Refi this our

create Blend, sharing with can customers value partners new build creation well. more they and as our value As on this us for

we are We forward operational platform these ultimately partnerships open what expect as an in to create our leverage us. for more to acceleration partners. These up going see things together

momentum, You're this to seeing tough the to of outcome real forward. create and quarter of continue really profitability work hope market, Platform years in going first that of a we

the mortgage industry. Now let's to shift

in life I mentioned and seeing As momentum and prospect base. the we're customer Mortgage renewed earlier,

base, and best. Starting ahead. volumes our market, dwell our the quarter macro to and customers to high our remain being products, profitable to ahead of products, now first the are going delivered this muted, we've rates I'm on the going pipeline our we to rely we're in this our committed instead, invest on call, us can seeing I'm curve. with focus on on we're optimism control: customer areas where While And that what not our tough and for what's

and most higher drive them. refinance is the to ever higher Our the important at conversion solution, Rapid experience of a to be goal retention an very the volume to of which are and base, been our pilot next-gen This year calling designed customer that. is goals we're integrated, return It's for solution we've created, refi solution is this we example just Refi, which scale. that developing frictionless for support X

As for been a the demand has this strong. result,

get Our turn, hope will, drive it are that them, this with into unit loan. with we who increased entry revenue them yet, for better turn to And another in the increased economics unit value Blend for for our to is us. every gives for point solutions like prospects us customers, not started on and economics

base lines people XX invest are we in the their in to optimism pipeline, tell the our of our It we're the I can Mortgage starting that reflects of sensing our maturing Speaking broader is And prospect calls. unions of in prior along was discussed mortgage Mortgage industry. one wins which to of Credit as business brings Federal again. recent accounts member Pentagon customers the number our ours. Top Union X product, of by credit for us

independent strong future. as preparing pipeline more XXXX year and dormant and and large-sized range of mortgage for the credit we're that a XXXX and brighter were banks includes banks, industry ahead QX the poised mid- are largely is and Our a adding large logos strong, also to to this now future, to through looks servicers unions. Institutions close

that challenges in customer no technology their new went through but using for time most holding of off. and XXXX, to of it's them base, consumers, Our they implement significant them some with secret

that will Close. implementation like accelerate, only achieving like our the industry we're going again, is also Blend and seeing data, adoption expect seeing language our our built-in our we that that in revenue-generating we're features, profitability Spanish of forward. And Now where increased intake, add-ons,

before adoption and comfort to X of me Blend we kind me was COVID, future. over from transforming excited X real they bank products, building the about South with for close reminded customers responsibility those Mortgage State the billion rolling their customer and of part new do every mortgage to loan a to days home. cutting over economics. Together, things helps hours grow customer Close, things, from partnership to a recently this with XXXX, time our happy Blend Banking. million our time and XX digitally enhances value $XX our journey. Switching from Bank, the and banks, energy the their those instance, combination processing loan gears annual I tone of their just base, pipeline For our adopted make so recently Association and, that time, customers, enabling of a the of at unit This Bankers returned us strengthens conference, for the our out industry, And technologies. that Consumer when are be there the new are loan

that deposit side, that is what and product deeper passwordless in authentication, of refreshed things open accounts for more we solution. to integrated consumers institutions consumer features, kind expect, This is log-in, to will for transparent smooth, We've taps. the seamless our our today's ultimately just frictionless and member relationships cross-sell them. experience, and few hope allowing consumers like lead recently experience, a carrier mobile On onboarding

for result And of equity the innovation, pipeline for by benefits customer is large partnering our this Top regional Blend. value customer a all pipeline unions delivering Pentagon credit weeks, the banks for and strong. lending, is ongoing home Consumer lending In As for this our we financial through real this that and base a unsecured a Banking of institution account home equity Union Top Credit beginning of signed accounts XX Federal across is recent XXX with bank work. another deposit our growth with feeling includes opening. We're for just X sizes. And to customers lending QX,

lead any that's is is space. new that journey like have in it's country it the Federal year. We're drove us beginning the Suite from significant precipice the We're with accounts. And great our being so by member, our to a and to them, need one decade, intend live while for on one And our very expand X Consumer of to passwordless way. we're of long keep and in here next largest key union on more in customer, our origination on charge was BECU, one onboarding of another fully what for largest momentum deliver mentioned now. important unions a on recently quarter, just over recent the looks all channels Union, the the top a technology the on online credit and profitability figures within one I of now this just authentication next high-ROI customers Blend executing for that to software. To this us. milestone, revenue Banking for area, and going the we credit plans step in Credit on building easiest they every to for summarize going methodical, we quarterly described their deployment of to on a the customers innovate weeks, but with and example, This conversion partner. To all platform earlier increases For Andrews went rolled conversion customer off, as out,

profitably, solidly the industry seeing momentum We to and 'XX, same continue by ingredients Banking pipeline and turn expect our Platform to momentum to on supported the through the Consumer customer that building Banking over that, to this segments. challenges start have while We'll recover development the walk grow from is financials. it mortgage our our Mortgage far. With both in XXXX maintain Consumer of and early I'll expansion, we're innovation, through Amir us success. and to this And gotten

Amir Jafari

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

strong marks revenue period of execution. third to quarter growth. another We returned year-over-year Our

the are our the XX% just our profitability, in grew otherwise of year-over-year million, above jump loan. and talk high Blend. of And $XX.X Banking results, funded quarter growth. We we end operating Consumer guidance reported value last, representing of X% into a stated, all our remind to quarter revenues least, certainly which million, achieved our let target. There's guidance high that We were another you ahead ahead $XXX an new economic a record faster. business for but And of even But by not unless million, of $XX.X achieved revenue our the about. XX% third for the I non-GAAP. Total lot and X results profitability Our exceeded Platform company year-over-year. per me landed including before end references accelerated to RPO high our

shared Suite Our a quarter. In total originations Mortgage we million. $XX.X X% Banking, expectation a revenue $X.X our to that in year-over-year million, in call grew and in with the a last be XX% sequential revenue higher of industry XX% year-over-year Consumer would was third representing growth, growth line the

shared we of Day. ahead pace now growth at the target Our well of is CAGR Investor our XX%

the ahead high revenue, We of quarter. $X also the midpoint near generated the Services generated Professional for million, same last the down Title reported revenue end and the from year. And slightly million million during $XX.X period guidance $X.X we of of of we our

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

software were We our XX%, Blend prior of a non-GAAP reported both Platform prior. with XX% XX%, and we a the year year margins margins quarter. gross compared reported non-GAAP compared with XX% segment Our in second gross

Over our to business the expect term, at we least be margins. software XX% long generating

So here. we're back on right track the

in margins came quarter, compared with reported prior. non-GAAP Title XX% at a the Our for XX% year we third

improvement. room $XX.X a shift our transactions million to While Title million, quarter-over-quarter, from $XX.X mix up there quarter The expect the are year. for came pressure the previous in costs for operating in third with compared is time. Non-GAAP margins we over normalize still year-over-year Title totaled

margins as part our our our revenue, simplified past strong quarter to of the we over Blend. of platform-first across continue high for our target. In implemented operations from benefit board. Along significantly $X efficiency a the a full focus, we income end a business our profitability an more of business which the This our million. as ahead to year important and the quarter quarter, increased and moment generating added with We the efficiency range, achieved strategy. We for from non-GAAP loss of exceeded from the programs we commitment simplifying in was is non-GAAP third for non-GAAP operations, guidance operating the in

we're that reinvest growth the create returns profitable in focus this generating Having also milestone, to sustainable and quarter be negative for value. Free profitability and even cash on negative achieved in was excess flow. generating $X.X target, Now than will cash shareholder to last business flow we've quarter more million our reached in on earlier our million, our compares free the which closing operating non-GAAP $XX.X year. positive same

cash the in this note measurement sheet I'd metric a differentiator as on to to We allowing our share is focus no do are our to strategic to on initiatives still our measurement Although prepurchases aware confident profit on restricted some operating the able flow with equivalents limitations we're and We we're to us commitments transition well longer as known balance and as third-party also cash our continue No positive our the reaching on on HMDA. and longer and our this cash, our is rely expense quarter prioritizing innovation. Shifting securities, alignment, to free perfect, to to focus gears, ensure thinking we share, on better focus here a the focus are free just is on our million estimates not $XXX ended we right next. We of cash. With sharing and step and approximately the small achieving non-GAAP guidance of positive. the milestone in are market as this marketable cash determined was accuracy. being like our best that Disclosure latest of. strength contracts also is important evolve of Mortgage there yet, first market that Home larger revenue to it with inclusive flow way and data, on of believe shift cusp we of being that to Act

not originations, For presented we've include it set this does periods, can way in understand for previously. this, be HMDA achieved a a and represents share a Despite the small semiannual best our detailed this example, lenders, increase of from of in bottoms-up the we some believe instead HMDA the shown point data, market on XX.X% is we data increments way. Based annual can data the only performing business XXXX. Blend XXXX, how within XXX-basis

year's to expect this HMDA mortgage in behind industry somewhere banks, that of XX.X%. We're in heightened churn robust the can XX.X% X this low customer high position have trend This HMDA over retention, us minimal this gives due years. Detailed that from XXXX disclosures. will XXXX, that share in of is Blend's and range stabilized churn among is data by small confident independent to a churn that lenders years, impact a some pipeline and back given we're transaction the again. share in especially PenFed. our and XXXX Furthermore, However, churn customer believe on we and confidence wins recent is shared minimal the year, an the us basis and the close in Investor strong to seen gaining customer latest recovering. When we in historical the probability a believe prior to we deals a at we our comparing health this available levels customer like expect pipeline has wins to share market of the we Day equivalent we next achieve targets the be have end

our help in Moving strategic on We a business. the growth entered developments. of fuel to into to Platform some phase next partnership recent

the the have return, granted by annual Solutions, agreement, a of Covered the operations term a an fee solutions, embedded platform. In the agency model comprehensive acquired consideration, transitions through an solutions into and leverages home Insurance provided in-house more insurance insurance cash part insurance connection directly integrate premier of our to Blend's our an As insurance from share a during partnership specialized receive marketplace. to solutions a exclusively license we one Blend's provide of the Covered provider license services in future their with to platform. This insurance and of been revenue even we've partner platform that

same experience operate to while costs the this previously business. expect our the we to We to incurred removing customers, deliver best-in-class

line. With soon a dollar earned to this year. Now simpler we of increase business expect starting quarter flows overall the fourth the by almost every in cost Blend to as as bottom profitability our structure, this

on by over of $XX finding our increased to for executing our last XXXX. the and future our reaching $XX, $X target accelerate right approximately per partners. Shifting and of economic end $XXX simplifying on year-over-year, goals gears, value bringing ways shy We're focus expect similar Suite the compared our platform, Blend our quarter to by partnerships. loan just in while funded to to can structure, continue announce we enhance we cost As we Mortgage

insurance loan. With value I the funded in contribution noted our will transaction there above, reduction a be economic business the per to

offset contribution increase per around will in drive on business, expanding a operations because points allowing our in slight and economic platform our core decrease $XX with loan by us ultimately decline our our our in around level value leverage. operating profit, it. an in QX, However, transaction's profit reiterate, to of the while of funded value each is focus centered underscore by economic the shift will This These the gain expected contribution simplify applications. software year-end. To fully

further the operating Blend Investor shared Day us the we on our positive we executed will for first we incredibly value-add Even of vectors. offerings simplify Blend. the ongoing but at economic for drive not than expect the our leverage with with earnings have quarter, the in execute against on goals at more more value One, of impact positive is motions. against Rapid milestone time. This to to a of Last partnership to will relevant, our reflect as with you similar the unit our Investor thus, strategy as execution $XXX insurance the we as our combined addition, and vision we expansion that utilized well we are and is through least, plan we inclusion that fully leverage from of we that we an in ecosystem these the several suite new allows our targets opportunities. operate short-term as value, and profit report In keeping both building offset though, partner continue the shared it Refi trade-offs Day. When we fourth more long-term economic issue for unchanged from

balance performance year-over-year, fifth million when period an is the XXXX, closing quarter-over-quarter of growing QX returned to million. and and $XX represents for important quarter, the us. to important for year. RPO quarter busy RPO RPO compared compared XXXX, our of third quarter third $XXX.X This a with by balance as compared to landed renewals also It million increased another quarter This record growth, the $XX.X of remaining the increase with in number million. QX new deals. to last negotiating our $XX.X by XX% been marks where Moving consecutive a we've same the was increasing obligations third the to of In at metric Blend.

committed pipeline strength fourth exceed the multiyear Given $XXX million. newly in the deals, to of XXXX current is customers RPO our our of deals large the and outlook to for closing for exiting signed quarter some

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

QX, growth. revenue in to between Platform $XX million year-over-year the be representing midpoint million a expect $XX We and with XX%

Title expect an We our $XX.X and $XX.X million, X% million representing revenue business year-over-year. growth with between be midpoint to the

Our with to is company XX% growth. total expected outlook a representing midpoint $XX.X be $XX.X year-over-year and the million QX, between million for revenue

date quarter, point the see down. the rates on mortgage our now, this. own what of based own on for is revenue the cut fourth this based rate internal observed few reflects level will as have customer customer guidance week activity impact waiting the September, base. the activity and QX our assessment next Despite as decisions Our as volume on to to haven't application origination months. federal Platform of But Fed's growth of funds we're our We're Fed's gone outlook rates cautious in the in origination the well guidance XX-basis through our in about both well mortgage as

maintain operating thank QX, total profit our that, into low net fourth Our again between to we non-GAAP $X joining. third to million for quarter. With I expected for $X operating expect to the want quarter is be as you and non-GAAP income seasonally

We are take ready now questions. to

Operator

question Your the of Instructions] from UBS. comes [Operator line with first Seth Gilbert,

Seth Gilbert

with Consumer Maybe Banking. I'll start

Banking specifically call, the Consumer XX You assets. with lot mentioned on of Top bank a success a by maybe

maybe starting little help about I a are they products? can to you Are product success? Banking? revenue on more rates, topic, or with one products with of growth Top to understand about help having it maybe So all or Consumer the Banking, what And that curious, relates comment as split by able a X then starting by to deal bit more small was Consumer same at us are the you few us broadly, just understand products

Nima Ghamsari

get first Consumer starting question X they're of are how working the customer us time. Mortgage and and years Banking. they us a try to to already They for with signed Nima. ago, probably on, your Mortgage, To actually, to into of for came side X happen expanding their Thanks, small, This or business they use into for Sure. other Seth. is we've been long that

our They team And also X good keeping at their of Mortgage be years lot things look time of very over for hard the which an on had ago, deal, positive. And a work energy, lot Because expanded of another of our us. expensive. with where as win our they're that so which it Banking that, this work, us, that's technology taking Consumer the greatest customers we're build, was trend solutions of internal to and or with it's very solutions. also seeing existing a a it's really this is some those internally, top is kind mature, in who existed one latest X

and all, that few And in customers logos Banking. new pipeline, so some we are about. And both very a Mortgage at yes, excited not we're have that's one others Consumer net on that

the that we'll we continue the develop. And keep the to of that question, to them. sort fastest so And of growing, are time and on those for they your then of align release part the business biggest the how you second parts posted

was So released equity home the product Banking earliest Consumer lending.

well. largest So growing that's it's pretty business also our line. And

deals good good a of that closed and been pipeline. deals have in both have lot We

volume new after by I ago next a was years a that, released the our that equity Top product. have membership one actually home as we then of few the decent customers. But think deposit product chunk is account lenders the opening XX

finally I their entire We prerecorded regular on that basis. getting of is so this excited remarks that's about because things mentioned a And customer on more one it's had thousands on more the one these earlier. tens channel online does and the call, -- full-bore that traction. And a that go on we're of

So that's next as we're frontier seeing as us a continued in growth well for company. area that another the

Operator

comes line of from Becker, Dylan Blair. the Your with William next question

Dylan Becker

of Nima, retrench given Amir, bit from here, kind a with maybe did here, talk sentiment continuing I Nima, we've positive guys. job seen nice customers. you starting rates about you, guess the really

maybe driven on that to of incentivize and of these about and of whatever introducing So adoption I of funded recovery of think 'XX wonder business to into that's on top lot extent like contribute you're to what leverage offerings a volume newer kind kind that's loan beyond. help you might side growth helping by the the trajectory look per how

Nima Ghamsari

sentiment is our of in sort first now the that customers shift profitable invest able that just businesses. of 'XX, mortgage In them finally allows to all twofold. to and breathing in half profitable of the half of the 'XX And much pretty I it 'XX, their back were fighting they're think to future. be in become room the

have And to that efficiency, the those to as those matured well, lot they we of operating capacity helps in during which be resources, so Blend features like onboard built their and the a Close, capabilities. didn't the that or solutions them developed additional with time, help that we able even that areas could

ROI those we're do unit it's of our those of sure some most about driving things making expand things And us, for some don't. customer. But and the for economics, the

loan for think -- them Blend functionality continued adopting it's of time, of per although with capabilities. The going those and our demand prices there's So really of I a something that's is sort funded do over from part increases of lot raising growth Close. new necessarily us there's over sort that time, for of customers, naturally slight biggest happens that sort not like

mortgage in for that growth. a the It has for benefits and the seen industry. results last year. of customers, we've so That's our real lot And driven the

more things better going drive and continue invest to drive profitable, forward. excited them need that in we're make them so their to And ROI, to businesses like the to benefits they

Dylan Becker

strength, the think I be consumer think, about obviously, as see, room the continue of competitive would the there's about talked kind front Consumer but Okay. if investors opportunity for touch feels Obviously, and Builder part of too, Mortgage lot momentum on helpful one of that's kind here. platform the the building side, that about on really That's obviously, helpful. a talked notable but it And Maybe the we've to and we ecosystem platform, success you of that well, if Blend could differentiation. too. you on like then ample as we've kind

So commentary any thoughts helpful. would be color or there

Nima Ghamsari

frictionless those differentiated how really sticky we I And viable that offer offer. lines I bring to the really that, a think, know they account institution be. the where of relationships of that or serves frictionless of consumers. as over you only better simplest it we're, us mortgage I a when I rate platform that as of you're think a if may great them can that is any trying kind institution, financial other think help version and a of offer a you're long-term across deposits with build can don't platforms financial whatever opening -- offer part product

so them, us they that into financial there or be that the components go a drive many be and the customers is how like, platform members are of to new experience for so dealing so new frictionless, their their to important economics we that that. do business. And because and core. overall to institution need making with that And That's it's to able

what with more And experiences new the value to not core we're experience, to us, the want auto that And of consumers. because to those by about being us deposit have Insurance we but opening to work then account customers, more partners core ourselves, sort to ecosystem. done by around the this make membership lending our a drive platform; deal, allow parts to experience, beneficial going pieces experience. that who build that, like that's beneficial that's Some Covered we there's talked like the core

those of we for the as of think I X a really best be to in I remarks, little so consumer the onboarding the a to solution making can within deposits it's from That us the as minutes." product their special. And member, talked new from a showing important. about this things X- combination institution to my each get the pulling what another making want lines, those account then worth, few sources you for opening bit an too. to what's a frictionless, the experience fraud point means, is as account. to value to a to X-minute real a and those best tell in Because going financial lines, is And bank, product in and aim don't they're up so "Hey, it's want an so many you And that on for. bringing that take possible, be You XX checking taps open data institution,

Operator

question line the David with Fargo. Wells next comes of Your Unger, from

David Unger

consolidation I'm offsetting potentially wondering your that favorable potential how more a the market, rates potentially in now higher dynamics could your end impact I'm regulatory favorable go-to-market thinking through more have environment, environment. just and that motion. a we regulatory of with potentially

Nima Ghamsari

they scalable I'm industry, say than It's interesting. spend definitely base, the not get I'm model, that business excited the up yesterday. I'd set were up, time the last our in mortgage particular, X rates where today industry, really really to to still higher but taken they're The in years customer going lower-volume about for they're success rates a sure to environment. their are the has happy these a

we call signed were and we're in And me invest I now today. think say, part deal In good a we thing." to had invest, "Hey, had so but I of going to that's this haven't fact, going not pretty anybody it. one

it. So of that's part

also consolidation side, bigger couple of seen a smaller the players, ones quite over On bit some consolidating. we've that the of but years, mostly last

if does to lot at consolidation, ways actually Blend the is because think I higher of we end to in it a market. of favorable play tend happen, the

pretty uses that that's and with consolidated entities happen another And larger to so us. start does consolidated large favorable get smaller gets if X Blend, think one, to or entities, one entities into that I

keeping on an I if pick tell it's on there's keep on it. going eye eye So that's we're soon to heard an consolidation-friendly mean, we'll how more a I up administration, to but -- haven't too much it.

David Unger

a just question. follow-up And that. Appreciate

I'm mentioned the couple since the of lot presentation last Investor we Investor then. prepared times has the remarks. in trying a Day any get ahead not new A out laid guidance, year. but you So happened to of Day

look So out scenarios think today XXXX your forecast versus much I'm disclosures. wondering to to those we just the when today provided when when we different there's been how you through -- surprise

Amir Jafari

we'll surprises macro did that shared revisit we obviously, per areas expected economic kind hence, with seeing and in rest come us, is, a for But that from this and, would of a the Day. we'll Mortgage. Two, we're But say, had the shared, there's back out. few And XXXX one, David, areas call teams. that obviously, I we you of and the with funded Investor as that's we on ahead loan, perspective, gave we value be to we've for what of continued. why consistent we're ranges where the at

top-of-mind at front be seeing in a of Investor our with Banking us this detail. With help regards the XX% fair also gone made It's powered Banking, call, expand It's journey your we is we're very what is was last, of to what perspective by about to on the I'll CAGR our we reference of into Blend rate platform. prepared ahead the a amount mentioned of able that to so of growth to -- from Blend versus going that Day we talked shared Consumer but for able to and the regards we've and view of Close, some a to then very that that at share where be to to that Investor Consumer in that was Phase much it positive. ability notion are. And Day we comments And -- even being not Nima item Covered. this of we platform today least, a with what the on was touch terms X. being in And kind the

did, overall to we think, we able partner X. with I what execution do a not overall validation what but just And of want so Phase is of in in the the ecosystem, Covered, be to

we're mainly of things seeing all are "surprises", positive. kind that those as So the

Operator

of the Ryan next question with line from Tomasello, KBW. comes Your

Ryan Tomasello

of would what sounds of services color it enhance any that your some appreciated. could more what Suite. mean, the here But a of You you like insurance us similar partnerships, this just in to the platform offerings with Mortgage to up mentioned throughout the product. remarks be your you marketplace time? there idea look give homeowners I opening Can did the will over flavor like

Nima Ghamsari

enhance transaction kind, probably will laundering. partners to anti-money It Consumer up not opening vendors new I Or we that to that just financial right ourselves. a deal to when the you're the Banking want and products in financial is think Because help really and the right a you -- need that But are things and makes being space, of core one, and In there are us system you auto doing appraisals. right a doing the some we, insurance build that what in place, need with offer any you the the this might you're the think payment valuations. There to equity if some automated offer, things might processing. we are gap space mortgage space, in in insurance Mortgage, lending, auto with involved are special really consumer. what or that the us financial that Suite. have account, institution those we fraud but can home at many so of need you a might right institution In time,

because things Blend customers years, it us to so win themselves service some us share toolkit to of where that that we've to win to made evolution we Blend because win would because now of they for customers a it's do win do for customers for that to up that our It's the for couple a want Builder. they a experience. value-add on And customer make for they're those economics is we willing how sort otherwise for it work for to value products consumers have natural And base. I of that more more is better us, impossible. And to and get who it's per open in partners It's all Builder those to often a available get unit. build be a whatever and on us mean, Builder is in use that's our our things this the also about building products Blend of with like are build. And for last everybody. a

a think ecosystem. evolution took get for a So just natural that is because us, to I it's some time but complex here it pretty

Ryan Tomasello

driving Title continues that within regarding adoption just the terms solution then business broadly, if on Title the of And the overall us just can current and, give an business, there to the guess, I strategy fit update more strategy you of company? the software-enabled for in

Nima Ghamsari

title critical the the still of process. is mortgage mean, a I part

And on there. that to that so innovating into hooking for all It's we and of side our actively little soon space software share the us too are operations a that. in

that things think through process. the process. drives But important that something tuned right often we have that as that, stay when we It an the can is we and the to maybe we in results think like time delays So mortgage share of part enough it's share.

a we in haven't not to we're off trying how in there. And around no, holistic so fact, eye ecosystem space, too, make partners work do And that out our we is better there. to -- the ball figure our more with operations

Operator

Your Instructions] comes the Joe line Vafi, of with [Operator question next from Canaccord.

Unknown Analyst

This maybe adoption is can refi and refi additional Any Nima, piece. of you provide we update color there get [indiscernible] the on on an Joe. product? can the for the

Nima Ghamsari

rate remarks, couple a have prepared and few customers X% are with Yes. to that X%. to people there's many one that with customers. the prepare come consumer much for want that really Mortgage capture actually, our at in down be as so make working -- I we that ability going mentioned the it this that, make those the bring I term to they It's frictionless can. mortgage low opportunity the next the the be for to all we started ones are Because And on the applicable in because a over rates initially to year. really They think of years a that it's conversion, refi down. happen They most to servicers customers, they so to gotten and really who they have the cost want they as as mortgage wave. But event and who to their live high to available need want mortgages

to this on what this, data persona. X help of the the actually real X kind to before of ROI base, the is of or of to that customers to so do who's to happen should us I of have get like a many market right the charge broader going we in -- we customer we who's mortgage our terms servicers understand how it that's things; are really should there's all take pilot be that specific product because want receive, what What works rolling market to out. rest we In they for that tweak, areas like, take with product

craving earlier, fully to But we're so Bankers pilots. those a I on so And so you, it feel about take excited that lined when hold are for everything that coming laser-focused customers man, Association prospects most It's about are conference excited the the automated value demand really going for so important. it, drive are to And can off the that. about back Mortgage high. just that them. talked like is People or get the it demand especially we from those I that trying like up that we I'm while tell solution we it's to

Unknown Analyst

That's helpful. here. And follow-up just a

are of the we about consumer banking mortgage team? side, improving next outlook potentially the investment as to year? you size area be that there, look your an the how With momentum you're sales the the on seeing of thinking acceleration Could and

Nima Ghamsari

we a what in blueprint prove of I've and institutions do we is at lot this the institutions. previous at solutions biggest-scale about we the top the the financial then of the top, take that calls, at we to mean, start talked market. market, end they in to number start create X,XXX institution the out I especially Yes. XXX of at biggest-scale the -- as we And can that the the value work rest We country.

we country. lot in the XX, X,XXX while XX do are that Top Top a accounts in bucket, that some to our lot wins a pipeline, we the XX, of them so talked of Top have And XX, XXX in about

and number point, to we track looks salespeople around not to there's have excited that scalable serve a think in now. right but very opportunity XXX so your sales how is we're mid-market, we the metrics looking guys And in those depending X,XXX that institution, we're we investing live. But that the XXX of at financial where accounts enough may pipeline them real other about areas efficiency one serve way, getting to to carefully on repeatable,

looking closely we're at that. So

opportunity of any made decisions but I haven't We us. there's an final for think there, area

Operator

next Gilbert, line the Your with from Seth comes UBS. of question

Seth Gilbert

sale the a the from the saw Just you in Insurance the with release one Solutions. update insurance or here. a then also, Maybe impact, quick short million, all was so? $X by quick Meaning, And the the the by Covered a was on us XQ business? negative at the impact, of give sale press term revenue about could in more that. line just million, specifically, impacted lowered I guide $X it of

Amir Jafari

going you're Okay. the the to One, funded the A factored that that, value unpack, also shared of try that upon to what it's factored accurate homeowner see yes, that items going that sale And go business, is them. a revenue, into per and we was It's overall you're to to economic to HOI into I'll see guidance. revenue. in Covered, that through few will revenue, in insurance the our decline business in transaction, over is broader essence, what that commentary one the sure with piece is I to achieve overall well. But profit make decline see to incremental you gave is reemphasize to time. equal now as for an you and you're if increase I not the see a and size, for onset more we able that on unit community greater, want at going loan both the that what we're so that per in

at partner that So some changes ecosystem, may also higher a to do point hence, Blend be short-term made, HOI. able to of I it operating Blend, I simplified of of achieve and happen, tighter whole what we're the the albeit that's leverage, to broader the notion through trying think but notion what with there you achieve aspect through this why this think whole we're

make and sure sides equation coin, there's that that to X So to out of I want both. call I

Operator

question-and-answer you further are call. session. no our Instructions] There at [Operator for Thank today's conference joining this time. questions concludes This

You may disconnect. now

Blend Labs (BLND) 6 Nov 242024 Q3 Earnings call transcript