Le Lézard
Classified in: Science and technology, Business
Subjects: EARNINGS, Conference Call, Webcast

Blend Reports Third Quarter 2021 Financial Results


Blend Labs, Inc. (NYSE:BLND), a leader in cloud banking software, today announced financial results for the third quarter ended September 30, 2021.

Financial and Operating Highlights

Customer Growth and Innovation

"Our Blend Platform segment achieved record quarterly revenue in the third quarter, and we built on our business momentum by adding new customers across verticals, innovating to expand our existing customer relationships, and launching and selling new products," said Nima Ghamsari, Head of Blend. "On the new product front, we successfully launched our Blend Income Verification product in the third quarter, and to date, we have signed over 50 customers. Overall, we are confident in our progress both on the Blend Platform and integration of the Title365 business, and this confidence is reflected in our improved financial outlook for full year 2021," Mr. Ghamsari continued.

* Included for illustrative purposes only. Please see discussion on change in accounting policy below.

Third Quarter Financial Summary

Third quarter revenue totaled $89.6 million, reflecting a change from Title365's predecessor accounting policy, under which the total revenue would have been $93.8 million*.

Blend Platform segment revenue was $35.1 million, up $7.2 million, or 26%, year-over-year, driven by an increase of $3.4 million, or 110%, in Consumer Banking and Marketplace revenue. In addition, Consumer Banking and Marketplace revenue increased to 19% of the total Blend Platform segment revenue from 11% in the third quarter of the prior year. Blend Platform segment Mortgage Banking revenue grew by $3.4 million, or 14%, year-over-year, as the positive impacts of significant new customer wins and the resulting gains in Blend market share of total U.S. mortgage industry volumes more than offset the negative impacts of lower U.S. mortgage market volumes, which were estimated to be down more than 25% year-over-year.

Title365 segment revenue totaled $54.5 million, net of $4.2 million of underwriter commissions.

Third quarter gross profit totaled $40.3 million. Blend Platform segment gross profit was $22.5 million, up $4.1 million, or 22%, year-over-year. Title365 segment gross profit was $17.8 million.

GAAP loss from operations was $70.5 million for the three months ended September 30, 2021, up $55.2 million, or 360%, year-over-year, primarily due to an increase in stock-based compensation as a result of the vesting of equity awards with performance-based market conditions upon completion of the IPO. Non-GAAP loss from operations was $21.1 million, up $7.0 million, or 49%, year-over-year.

Liquidity and Capital Resources

At September 30, 2021, the Company had cash, cash equivalents, and marketable securities of $593.6 million compared to $151.7 million at December 31, 2020. Total outstanding principal on the Company's debt as of September 30, 2021 was $225.0 million. At September 30, 2021, the Company had available capacity under its revolving credit facility of $25.0 million.

Adoption of Title365 Net Revenue Accounting Policy

Following the closing of the acquisition of Title365 on June 30, 2021, the Company determined to present the going-forward financial results of Title365 on a net revenue basis, in which title premiums revenue is reported net of fees paid to insurance underwriters. Net revenue presentation differs from Title365's predecessor accounting policy, in which title premiums revenue was reported on a gross basis.

The adoption of net revenue accounting policy does not affect gross profit, operating income (loss), or net income (loss). The information below illustrates the impact the adoption of net revenue accounting policy would have had on the unaudited historical pro forma information previously provided by the Company for the full year 2020, the three months ended March 31, 2021, and the six months ended June 30, 2021.

The table below shows the impact of the adoption of net revenue accounting policy for the full year 2020 to certain unaudited pro forma financial information included in the Company's final prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on July 15, 2021:

 

Title365 Historical

 

Blend Labs, Inc. Pro Forma Results (Unaudited)

 

For the Year Ended December 31, 2020

 

As previously reported

 

As adjusted

 

Change

 

As previously reported

 

As adjusted

 

Change

 

(in thousands)

 

(in thousands)

Revenue

$

212,098

 

 

$

197,872

 

 

$

14,226

 

7

%

 

$

308,127

 

 

$

293,901

 

 

$

14,226

 

5

%

Cost of revenue

155,859

 

 

141,633

 

 

14,226

 

10

%

 

190,148

 

 

175,922

 

 

14,226

 

8

%

Gross profit

$

56,239

 

 

$

56,239

 

 

?

 

?

%

 

$

117,979

 

 

$

117,979

 

 

?

 

?

%

The table below shows the impact of the adoption of net revenue accounting policy for the three months ended March 31, 2021 to certain unaudited pro forma financial information included in the Company's final prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on July 15, 2021:

 

Title365 Historical

 

Blend Labs, Inc. Pro Forma Results (Unaudited)

 

For the Three Months Ended March 31, 2021

 

As previously reported

 

As adjusted

 

Change

 

As previously reported

 

As adjusted

 

Change

 

(in thousands)

 

(in thousands)

Revenue

$

73,118

 

 

$

67,787

 

 

$

5,331

 

8

%

 

$

104,993

 

 

$

99,662

 

 

$

5,331

 

5

%

Cost of revenue

48,954

 

 

43,623

 

 

5,331

 

12

%

 

59,814

 

 

54,483

 

 

5,331

 

10

%

Gross profit

$

24,164

 

 

$

24,164

 

 

?

 

?

%

 

$

45,179

 

 

$

45,179

 

 

?

 

?

%

The table below shows the impact of the adoption of net revenue accounting policy for the six months ended June 30, 2021 to certain unaudited pro forma financial information included in the Company's quarterly report on Form 10-Q for the period ended June 30, 2021:

 

Blend Labs Inc. Unaudited Pro Forma Financial Information

 

Six Months Ended June 30, 2021

 

Six Months Ended June 30, 2020

 

As previously reported

 

As adjusted

 

Change

 

As previously reported

 

As adjusted

 

Change

 

(in thousands)

 

(in thousands)

Revenue

$

203,211

 

 

$

193,077

 

 

$

10,134

 

5

%

 

$

132,584

 

 

$

126,618

 

 

$

5,966

 

5

%

Net loss

$

(44,064

)

 

$

(44,064

)

 

?

 

?

%

 

$

(12,858

)

 

$

(12,858

)

 

?

 

?

%

Segment Reporting and Revenue Disaggregation

Following the acquisition of Title365, the Company operates in two segments: Blend Platform and Title365. Commencing in the third quarter of 2021, the Company will also provide Blend Platform segment revenue disaggregated in three designations: Mortgage Banking, Consumer Banking and Marketplace, and Professional Services. Mortgage Banking represents revenue related to mortgage transactions processed through the Company's software platform. Consumer Banking and Marketplace represents revenue that is not directly tied to mortgage transactions, such as consumer banking revenue (home equity, personal loans, deposit accounts, and all other consumer banking products), ancillary product revenue (income verification and close products), and marketplace revenue (title, insurance, and realty products). Professional Services represents revenue related to the deployment of the Company's software platform, premium support services, and consulting services.

Full Year 2021 GAAP Revenue Guidance

$ in millions

Gross Revenue

Adjusted Gross to Net Revenue for Title365, H2 2021 Impact

Net Revenue

Previously Reported GAAP Guidance at June 30, 2021

$226 - $232

($8)

$218 - $224 *

Revised GAAP Guidance at September 30, 2021

$237 - $247*

($8)

$229 - $239

Full Year 2021 Pro Forma Revenue Guidance

$ in millions

Gross Pro Forma Revenue

Adjusted Gross to Net Revenue for Title365, Full Year Impact

Net Pro Forma Revenue

Previously Reported Pro Forma Guidance at June 30, 2021

$365 - $371

($18)

$347 - $353 *

Revised Pro Forma Guidance at September 30, 2021

$376 - $386*

($18)

$358 - $368

* Included for illustrative purposes only.

Webcast and Conference Call Information

The Company will host a conference call today at 2:30 p.m. PT / 5:30 pm ET to discuss third quarter 2021 financial results, business highlights, and future outlook. The call will be webcast live from the Company's investor relations website at https://investor.blend.com. The conference call can also be accessed live over the phone by dialing (866) 777-2509, or (412) 317-5413 for international callers. A replay will be available after the call and can be accessed at the same website or by dialing (877) 344-7529, or (412) 317-0088 for international callers, and using the replay access code 10160887. The replay will be available through November 20, 2021.

Blend announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission, the investor relations section of our website, press releases, public conference calls, webcasts, our corporate blog at blend.com/blog, and our Twitter account (@blendlabsinc), as a means of achieving broad, non-exclusionary distribution of material information to the public and for complying with its disclosure obligations under Regulation FD. Information on or that can be accessed through Blend's investor relations website, these other channels, or that is contained in any website to which a hyperlink is provided herein is not part of this press release.

This press release, the financial tables, as well as other supplemental information including the reconciliations of non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures, are also available on Blend's Investor Relations website. Blend also provides investor information, including news and commentary about Blend's business and financial performance, Blend's filings with the Securities and Exchange Commission, notices of investor events and Blend's press and earnings releases, on Blend's Investor Relations website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may relate to, but are not limited to, quotations of management, outlook for 2021, the "Full Year 2021 GAAP Revenue Guidance" and "Full Year 2021 Pro Forma Revenue Guidance" sections above, expectations of future results of operations or financial performance of Blend Labs, Inc. ("Blend," the "Company," "we," "us," or similar terms), market size and growth opportunities, capital expenditures, plans for future operations, competitive position, technological capabilities, and strategic relationships, as well as assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "could," "would," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other comparable terminology that concern Blend's expectations, strategy, plans or intentions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which such performance or results will be achieved, if at all.

Forward-looking statements are based on information available at the time those statements are made and/or management's good faith beliefs and assumptions as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include the possibility that: we fail to retain our existing customers or to acquire new customers in a cost-effective manner; our customers fail to maintain their utilization of our products and services; our relationships with any of our key customers were to be terminated or the level of business with them significantly reduced over time; we are unable to compete in highly competitive markets; we are unable to manage our growth; we are unable to make accurate predictions about our future performance due to our limited operating history in an evolving industry; we are unable to successfully integrate or realize the benefits of our acquisition of Title365; or changes in market interest rates adversely affect our business. Further information on these risks and other factors that could affect our financial results are set forth in our filings with the Securities and Exchange Commission, including in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 that will be filed following this press release. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These factors could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. Except as required by law, Blend does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

About Non-GAAP Financial Measures and Other Key Metrics

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP loss from operations, and non-GAAP net loss. These non-GAAP financial measures adjust the related GAAP financial measures to exclude non-cash stock-based compensation and warrant amortization expense, amortization of acquired intangible assets, non-recurring acquisition-related costs, and non-recurring income tax expenses or benefits related to acquisitions. Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes they are useful to investors, as a supplement to the corresponding GAAP financial measures, in evaluating our ongoing operational performance and trends, in allowing for greater transparency with respect to measures used by our management in their financial and operational decision making, and in comparing our results of operations with other companies in the same industry, many of which present similar non-GAAP financial measures to help investors understand the operational performance of their businesses. However, it is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. In addition, other companies may utilize metrics that are not similar to ours.

The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results. Management encourages investors and others to review Blend's financial information in its entirety and not rely on a single financial measure.

We adjust the following items from our non-GAAP financial measures:

Stock-based compensation and amortization of warrant. We exclude stock-based compensation and amortization of warrant, which are non-cash expenses, from our non-GAAP financial measures because we believe that excluding these items provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions, and expense related to stock-based awards can vary significantly based on the timing, size and nature of awards granted.

Amortization of acquired intangible assets. We exclude amortization of acquired intangible assets, which is a non-cash expense, from our non-GAAP financial measures. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.

Acquisition-related costs. We exclude costs related to acquisitions from our non-GAAP financial measures as we do not consider these costs to be related to organic continuing operations of the acquired business or relevant to assessing the long-term performance of the acquired assets. These adjustments allow for more accurate comparisons of the financial results to historical operations and forward looking guidance. These costs include financial advisory, legal, accounting and other transactional costs incurred in connection with acquisition activities, and non-recurring transition and integration costs.

Income taxes related to acquisition. We exclude tax benefits related to acquisitions from our non-GAAP financial measures. These tax benefits realized consist of the change in the valuation allowance resulting from acquisitions.

About Blend

Blend's cloud banking platform is designed to power the end-to-end consumer journey for any banking product, from application to close. Our technology is used by Wells Fargo, U.S. Bank, and over 330 other financial services firms to acquire more customers, increase productivity, and deepen relationships. Through our software, we enable our customers to process an average of more than $5 billion in loans per day, helping consumers get into homes and gain access to the capital they need to lead better lives. To learn more, visit blend.com.

Blend Labs, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

 

 

September 30, 2021

December 31, 2020

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$

276,063

 

$

41,092

 

Marketable securities

 

317,491

 

 

110,631

 

Trade and other receivables, net

 

30,886

 

 

14,981

 

Prepaid expenses and other current assets

 

37,264

 

 

19,268

 

Restricted cash

 

?

 

 

173

 

Total current assets

 

661,704

 

 

186,145

 

Property and equipment, net

 

8,412

 

 

4,594

 

Operating lease right-of-use assets

 

13,908

 

 

12,685

 

Intangible assets, net

 

189,785

 

 

1,208

 

Goodwill

 

286,977

 

 

?

 

Deferred contract costs

 

3,303

 

 

5,414

 

Restricted cash, non-current

 

5,607

 

 

5,023

 

Other non-current assets

 

8,530

 

 

676

 

Total assets

$

1,178,226

 

$

215,745

 

Liabilities, Redeemable Noncontrolling Interest and Stockholders' Equity

 

 

Current liabilities:

 

 

Accounts payable

$

6,809

 

$

3,437

 

Deferred revenue

 

10,028

 

 

13,622

 

Accrued compensation

 

13,397

 

 

9,060

 

Other current liabilities

 

33,385

 

 

8,910

 

Total current liabilities

 

63,619

 

 

35,029

 

Operating lease liabilities, non-current

 

13,589

 

 

14,004

 

Other non-current liabilities

 

12,615

 

 

3,375

 

Debt, non-current, net

 

213,162

 

 

?

 

Total liabilities

 

302,985

 

 

52,408

 

Commitments and contingencies

 

 

Redeemable noncontrolling interest

 

46,491

 

 

?

 

Stockholders' equity:

 

 

Founders Convertible Preferred Stock and Convertible Preferred Stock, $0.00001 par value: no shares authorized, issued and outstanding as of September 30, 2021; 128,123 (Founders Convertible Preferred Stock 1,026, Convertible Preferred Stock 127,097) shares authorized as of December 31, 2020; 122,379 (Founders Convertible Preferred Stock 1,026, Convertible Preferred Stock 121,353) shares issued and outstanding as of December 31, 2020; aggregate liquidation preference of $387,841 (Founders Convertible Preferred Stock nil, Convertible Preferred Stock $387,841) as of December 31, 2020

 

?

 

 

385,225

 

Preferred stock, $0.00001 par value: 200,000 shares authorized and no shares issued and outstanding as of September 30, 2021; no shares authorized, issued and outstanding as of December 31, 2020.

 

?

 

 

?

 

Class A, Class, B and Class C Common Stock, $0.00001 par value: 3,000,000 (Class A 1,800,000, Class B 600,000, Class C 600,000) shares authorized as of September 30, 2021; 229,762 (Class A 216,879, Class B 12,883, Class C no) shares issued and outstanding as of September 30, 2021; no shares authorized, issued and outstanding as of December 31, 2020; pre-IPO Class A and pre-IPO Class B Common Stock, $0.00001 par value; no shares authorized, issued and outstanding as of September 30, 2021; 371,495 (pre-IPO Class A 143,162, pre-IPO Class B 228,333) shares authorized as of December 31, 2020; 47,948 (pre-IPO Class A 15,039, pre-IPO Class B 32,909) shares issued and outstanding as of December 31, 2020

 

2

 

 

1

 

Additional paid-in capital

 

1,199,914

 

 

50,968

 

Accumulated other comprehensive loss

 

(88

)

 

(5

)

Accumulated deficit

 

(371,078

)

 

(272,852

)

Total stockholders' equity

 

828,750

 

 

163,337

 

Total liabilities, redeemable noncontrolling interest and stockholders' equity

$

1,178,226

 

$

215,745

 

Blend Labs, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(In thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2021

2020

2021

2020

Revenue

$

89,568

 

$

27,877

 

$

153,505

 

$

65,400

 

Cost of revenue

 

49,241

 

 

9,482

 

 

72,461

 

 

25,505

 

Gross profit

 

40,327

 

 

18,395

 

 

81,044

 

 

39,895

 

Operating expenses:

 

 

 

 

Research and development

 

25,518

 

 

13,820

 

 

63,476

 

 

40,316

 

Sales and marketing

 

21,957

 

 

12,176

 

 

56,093

 

 

37,163

 

General and administrative

 

59,024

 

 

7,748

 

 

94,488

 

 

21,656

 

Amortization of acquired intangible assets

 

4,364

 

 

?

 

 

4,364

 

 

?

 

Total operating expenses

 

110,863

 

 

33,744

 

 

218,421

 

 

99,135

 

Loss from operations

 

(70,536

)

 

(15,349

)

 

(137,377

)

 

(59,240

)

Interest expense

 

(5,615

)

 

?

 

 

(5,615

)

 

?

 

Other income (expense), net

 

121

 

 

148

 

 

383

 

 

627

 

Loss before income taxes

 

(76,030

)

 

(15,201

)

 

(142,609

)

 

(58,613

)

Income tax (expense) benefit

 

(300

)

 

(7

)

 

44,978

 

 

(20

)

Net loss

 

(76,330

)

 

(15,208

)

 

(97,631

)

 

(58,633

)

Less: Net income attributable to noncontrolling interest

 

(595

)

 

?

 

 

(595

)

 

?

 

Net loss attributable to Blend Labs, Inc.

$

(76,925

)

$

(15,208

)

$

(98,226

)

$

(58,633

)

 

 

 

 

 

Net loss per share:

 

 

 

 

Basic and diluted

$

(0.38

)

$

(0.38

)

$

(0.99

)

$

(1.52

)

Weighted average shares used in calculating net loss per share:

 

 

 

 

Basic and diluted

 

200,176

 

 

39,760

 

 

99,645

 

 

38,589

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

Net loss

$

(76,330

)

$

(15,208

)

$

(97,631

)

$

(58,633

)

Unrealized loss on marketable securities

 

(92

)

 

(76

)

 

(83

)

 

(73

)

Comprehensive loss

 

(76,422

)

 

(15,284

)

 

(97,714

)

 

(58,706

)

Less: Comprehensive income attributable to noncontrolling interest

 

(595

)

 

?

 

 

(595

)

 

?

 

Comprehensive loss attributable to Blend Labs, Inc.

$

(77,017

)

$

(15,284

)

$

(98,309

)

$

(58,706

)

Blend Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Nine Months Ended September 30,

 

2021

2020

Operating activities

 

 

Net loss

$

(97,631

)

$

(58,633

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

Stock-based compensation

 

54,049

 

 

7,740

 

Depreciation and amortization

 

6,765

 

 

3,183

 

Amortization of deferred contract costs

 

3,856

 

 

2,571

 

Amortization of debt discount and issuance costs

 

684

 

 

?

 

Amortization of operating lease right-of-use assets

 

2,251

 

 

1,732

 

Release of valuation allowance and change in deferred taxes

 

(46,511

)

 

?

 

Other

 

1,316

 

 

243

 

Changes in operating assets and liabilities:

 

 

Trade and other receivables

 

(2,061

)

 

(8,929

)

Prepaid expenses and other assets, current and non-current

 

(18,186

)

 

(3,071

)

Deferred contract costs, non-current

 

2,111

 

 

567

 

Accounts payable

 

2,183

 

 

(1,137

)

Deferred revenue

 

(3,594

)

 

(1,796

)

Accrued compensation

 

950

 

 

1,218

 

Operating lease liabilities

 

(2,151

)

 

(1,888

)

Other liabilities, current and non-current

 

11,589

 

 

4,150

 

Net cash used in operating activities

 

(84,380

)

 

(54,050

)

Investing activities

 

 

Purchases of marketable securities

 

(316,819

)

 

(84,825

)

Sales of marketable securities

 

?

 

 

30,447

 

Maturities of marketable securities

 

108,682

 

 

100,875

 

Purchases of property and equipment

 

(1,085

)

 

(746

)

Investment in non-marketable equity securities

 

(2,500

)

 

?

 

Investment in note receivable

 

(3,000

)

 

?

 

Acquisition of Title365, net of cash acquired

 

(400,014

)

 

?

 

Purchases of intangible assets

 

?

 

 

(9

)

Net cash (used in) provided by investing activities

 

(614,736

)

 

45,742

 

Financing activities

 

 

Proceeds from initial public offering, net of underwriters' fees and issuance costs

 

368,853

 

 

?

 

Proceeds from debt financing, net of issuance costs

 

218,816

 

 

?

 

Repurchases of unvested early exercised stock options

 

(21

)

 

(18

)

Proceeds from exercises of stock options, including early exercises

 

24,096

 

 

3,433

 

Proceeds from issuance of Convertible Preferred Stock, net of issuance costs

 

309,701

 

 

76,247

 

Proceeds from exercises of Convertible Preferred Stock warrants

 

10,172

 

 

?

 

Proceeds from repayment of employee promissory note collateralized by common stock

 

2,881

 

 

?

 

Net cash provided by financing activities

 

934,498

 

 

79,662

 

Net increase in cash, cash equivalents, and restricted cash

 

235,382

 

 

71,354

 

Cash, cash equivalents, and restricted cash at beginning of period

 

46,288

 

 

28,462

 

Cash, cash equivalents, and restricted cash at end of period

$

281,670

 

$

99,816

 

Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets:

 

 

Cash and cash equivalents

$

276,063

 

$

93,999

 

Restricted cash

 

5,607

 

 

5,817

 

Total cash, cash equivalents, and restricted cash

$

281,670

 

$

99,816

 

Supplemental disclosure of cash flow information:

 

 

Cash paid for income taxes

$

490

 

$

20

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

Deferred offering costs not yet paid

$

2,169

 

$

?

 

Vesting of early exercised stock options

$

3,346

 

$

183

 

Issuance of warrant in connection with debt financing

$

6,789

 

$

?

 

Blend Labs, Inc.

Revenue Disaggregation

(In thousands)

(Unaudited)

 

 

Three Months Ended September 30,

 

 

2021

2020

 

Blend Platform revenue:

 

 

 

 

YoY increase

Mortgage banking

$

27,318

 

78

%

$

23,895

 

86

%

14

%

Consumer banking and marketplace

 

6,569

 

19

%

 

3,130

 

11

%

110

%

Professional services

 

1,194

 

3

%

 

852

 

3

%

40

%

Total Blend Platform revenue

 

35,081

 

100

%

 

27,877

 

100

%

26

%

Title365 revenue

 

54,487

 

 

?

 

 

Total revenue

$

89,568

 

 

$

27,877

 

 

221

%

Blend Labs, Inc.

Reconciliation of GAAP to non-GAAP Measures

(In thousands)

(Unaudited)

 

Gross Profit Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
September 30, 2021

 

Three months ended
September 30, 2020

 

 

 

GAAP
Gross Profit

 

Non-GAAP
expenses(1)

 

Non-GAAP
gross profit

 

GAAP
Gross Profit

 

Non-GAAP
expenses(1)

 

Non-GAAP
gross profit

Blend Platform

$

22,489

 

 

$

208

 

 

$

22,697

 

 

$

18,395

 

 

$

21

 

 

$

18,416

 

Title365

17,838

 

 

38

 

 

17,876

 

 

?

 

 

?

 

 

?

 

Total

$

40,327

 

 

$

246

 

 

$

40,573

 

 

$

18,395

 

 

$

21

 

 

$

18,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended
September 30, 2021

 

Nine months ended
September 30, 2020

 

 

 

GAAP
Gross Profit

 

Non-GAAP
expenses(1)

 

Non-GAAP
gross profit

 

GAAP
Gross Profit

 

Non-GAAP
expenses(1)

 

Non-GAAP
gross profit

Blend Platform

$

63,206

 

 

$

423

 

 

$

63,629

 

 

$

39,895

 

 

$

58

 

 

$

39,953

 

Title365

17,838

 

 

38

 

 

17,876

 

 

?

 

 

?

 

 

?

 

Total

$

81,044

 

 

$

461

 

 

$

81,505

 

 

$

39,895

 

 

$

58

 

 

$

39,953

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP expenses represent stock-based compensation

Blend Labs, Inc.

Reconciliation of GAAP to non-GAAP Measures

(In thousands)

(Unaudited)

 

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

Operating Expenses

2021

2020

2021

2020

GAAP operating expenses

$

110,863

 

$

33,744

 

$

218,421

 

$

99,135

 

Non-GAAP expenses:

 

 

 

 

Stock-based compensation(1) and amortization of warrant

 

43,216

 

 

1,156

 

 

53,842

 

 

7,915

 

Amortization of acquired intangible assets(2)

 

4,364

 

 

0

 

 

4,364

 

 

0

 

Acquisition-related expenses(3)

 

1,573

 

 

2

 

 

12,415

 

 

969

 

Non-GAAP operating expenses

$

61,710

 

$

32,586

 

$

147,800

 

$

90,251

 

 

 

 

 

 

GAAP loss from operations

$

(70,536

)

$

(15,349

)

$

(137,377

)

$

(59,240

)

Non-GAAP expenses:

 

 

 

 

Stock-based compensation(1) and amortization of warrant

 

43,462

 

 

1,177

 

 

54,303

 

 

7,973

 

Amortization of acquired intangible assets(2)

 

4,364

 

 

?

 

 

4,364

 

 

?

 

Acquisition-related expenses(3)

 

1,573

 

 

2

 

 

12,415

 

 

969

 

Non-GAAP loss from operations

$

(21,137

)

$

(14,170

)

$

(66,295

)

$

(50,298

)

 

 

 

 

 

GAAP net loss

$

(76,330

)

$

(15,208

)

$

(97,631

)

$

(58,633

)

Non-GAAP expenses:

 

 

 

 

Stock-based compensation(1) and amortization of warrant

 

43,462

 

 

1,177

 

 

54,303

 

 

7,973

 

Amortization of acquired intangible assets(2)

 

4,364

 

 

?

 

 

4,364

 

 

?

 

Acquisition-related expenses(3)

 

1,573

 

 

2

 

 

12,415

 

 

969

 

Income tax benefit related to acquisition(4)

 

 

?

 

 

(45,302

)

 

?

 

Non-GAAP net loss

$

(26,931

)

$

(14,029

)

$

(71,851

)

$

(49,691

)

 

 

 

 

 

(1) Stock-based compensation by function:

 

 

 

 

Cost of revenue

$

246

 

$

21

 

$

461

 

$

58

 

Research and development

 

3,685

 

 

75

 

 

7,903

 

 

3,289

 

Sales and marketing

 

1,836

 

 

505

 

 

5,133

 

 

2,790

 

General and administrative

 

37,657

 

 

498

 

 

40,552

 

 

1,603

 

Total

$

43,424

 

$

1,099

 

$

54,049

 

$

7,740

 

 

 

 

 

 

(2) Amortization of acquired intangible assets represents non-cash amortization of customer relationships acquired in connection with the Title365 acquisition

(3) Acquisition-related expenses include non-recurring due diligence, transaction and integration costs recorded within general and administrative expenses

(4) Income tax benefit related to acquisition represents the non-recurring release of historical valuation allowance resulting from the recognition of a deferred tax liability in connection with the Title365 acquisition

 


These press releases may also interest you

at 12:24
In the news release, Axes Physical Therapy Opens It's 15th Physical Therapy Clinic Location in Eureka, MO, issued 02-May-2022 by Axes Physical Therapy over PR Newswire, the dateline location, should read "Missouri" rather than "Mississippi" as...

at 12:23
Investing.com, the world's largest financial markets platform with 44 language editions and users in 136 countries, has launched its InvestingPro premium service which offers retail investors enhanced financial tools at an affordable price,...

at 12:08
Bold Capital Enterprises Ltd. ("Bold")  is pleased to provide shareholders with an update with respect to its previously announced (see March 17, 2022 press release) proposed arm's-length acquisition (the "Transaction") of SinuSafe Medical Ltd....

at 12:02
RHP Properties, the nation's largest private owner and operator of manufactured home communities, has announced the acquisition of three manufactured home communities in Iowa. This expands the company's portfolio to four communities in the state and...

at 12:02
Houston Natural Resources Corp.  ("HNR or the Company") announced today that InterCapital Energy LLC ("InterCapital") has been retained to provide financing on the company's projects.  InterCapital has thirty years of experience in the oil and gas...

at 12:00
Transaction in Own Shares       16 May 2022 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Shell plc (the ?Company') announces that on 16 May 2022 it purchased the following number of Shares for cancellation.       Aggregated information on Shares purchased...



News published on 10 november 2021 at 16:25 and distributed by: