Blend Labs, Inc. (NYSE:BLND) Q3 2023 Earnings Call Transcript
Blend Labs, Inc. (NYSE:BLND) Q3 2023 Earnings Call Transcript November 7, 2023
Blend Labs, Inc. misses on earnings expectations. Reported EPS is $-0.17537 EPS, expectations were $-0.09.
Winnie Ling: Good afternoon, and welcome to Blend's Third Quarter 2023 Earnings Conference Call. My name is Winnie Ling, and I'm Head of Legal for the company. Joining us today are Nima Ghamsari, Co-Founder and Head of Blend; and Amir Jafari our Head of Finance and Administration. After Nima and Amir deliver their prepared remarks, we will open up the call for questions moderated by our Investor Relations, Lead, Bryan Michaleski. You can find the supplemental slides on our Investor Relations web page at investor.blend.com. During the call, we will refer to certain non-GAAP measures, which are reconciled to GAAP results in today's earnings release and in the appendix to our supplemental slides. Non-GAAP measures are not intended to be a substitute for GAAP results.
Also certain statements made during today's conference call regarding Blend and its operations, in particular, its guidance for the fourth quarter and fiscal year 2023 may be considered forward-looking statements under federal securities laws. The company cautions you that forward-looking statements involve substantial risks and uncertainties and a number of factors, many of which are beyond the company's control, could cause actual results, events or circumstances to differ materially from those described in these statements. Please see the risk factors we've identified in our most recent 10-K, 10-Qs and other SEC filings. We are not undertaking any commitment to update these statements if conditions change, except as required by law. I'll now turn the call over to Nima.
Nima Ghamsari : Thank you, Winnie, and good afternoon everyone. Many of you joined us for our inaugural Investor Day in September, during which we shared a deeper look into our growth trajectory and the significant upside that exists, as we continue scaling our Builder Platform to more customers and into more markets. As we stand today, we have a market-leading platform, an incredibly loyal and resilient customer base and an efficient business model that we believe has set our company up for success now and in the long-term. For today's discussion, I want to emphasize how we've leveraged this foundation in our third quarter to better serve our customers and to do so with greater efficiency. Starting with our third quarter highlights, I'm pleased to share that we achieved another strong quarter amidst a very challenging environment.
We delivered $40.6 million in total company revenue well within the narrowed guidance range, we provided at our Investor Day. We credit this to double-digit year-over-year revenue growth in Consumer Banking, as we continue deployments and ramp-ups on our Builder Platform. In fact as of Q3, over one-third of our customers are now live or in active deployment with Builder enabled consumer banking products. In addition to these active deployments, we expanded our pipeline to 60 opportunities up from the 40 we reported last quarter representing opportunities in both our mortgage suite and our consumer banking suite. On the mortgage side specifically, our business once again outperformed the broader origination market declines driven by the continued utilization growth of our mortgage product add-ons, including verification of income and our closing product.
In Q3 alone, we deployed a dozen revenue-generating mortgage products or feature enhancements, which we expect to continue to benefit the economic value we receive per loan. Our continued market outperformance in the loan origination market underscores the impact of Blend's technology and improving efficiency and cost savings across the entire mortgage process. And this also remains a key focus for us. On top of that, we've also made significant strides in enhancing our operating efficiency this quarter. We saw strong resilience in our non-GAAP gross margins even amidst the declining mortgage market and achieved another quarter of sequential reduction in our cash spend. Balancing our growth, while making our business more efficient has been a crucial undertaking for us and it's something that we will continue to focus heavily on over the next year.
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