Yahoo Finance Blend Labs, Inc. (NYSE:BLND) Q4 2023 Earnings Call Transcript
Blend Labs, Inc. (NYSE:BLND) Q4 2023 Earnings Call Transcript March 19, 2024
Blend Labs, Inc. isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Winnie Ling: Good afternoon, and welcome to Blend’s Fourth Quarter 2023 Earnings Conference Call. My name is Winnie Ling and I'm Head of Legal for the company. Joining us today are Nima Ghamsari, Co-Founder and Head of Blend; and Amir Jafari our Head of Finance and Administration. After Amir and Nima delivered their prepared remarks, we will open up the call for questions moderated by our Investor Relations Lead, Bryan Michaleski. You can find the supplemental slides on our Investor Relations webpage at investor.blend.com. During the call, we'll 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 first quarter of 2024, 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-Q and other SEC filings. We're not undertaking any commitment to update these statements if conditions change except as required by law. With that said, I'll now turn the call over to Nima.
Nima Ghamsari: Thank you Winnie and hello everyone. Welcome to today's earnings call. The past year was one of focus and execution for Blend and the fourth quarter proved to be no exception. Let me walk you through some of the highlights first. To start with on the Consumer Banking side, we signed several major deals in Q4, including Citizens Bank, a top 20 bank by retail customer base. And we had a solid slate of deployments that give us a high degree of visibility into our expected revenue growth for 2024. As full rollout of all existing customers, including those signed but not yet deployed, we expect our Consumer Banking suite to be approximately $50 million in annual revenue run rate. 2023 was an expansion year for us and 2024 has already started strong.
Our Consumer Banking business is well received by existing and net new customers driving growth with a robust pipeline of 70 opportunities. On the mortgage side, we welcome two new top 100 financial institutions by retail customer base to Blend in Q4. We maintained our industry-leading market shares, and we continue to see adoption of our value accretive add-on products, expanding our economic value per funded loan and giving us even more leverage for revenue growth independent of the macro environment. And on the cost side, we delivered significant efficiencies across our business, allowing us to report ahead of our guidance for non-GAAP net operating loss and keeping us on track for our profitability target in 2024. Achieving this momentum despite 2023 being one of the worst years on record for mortgage industry origination volumes, increases our confidence in our ability to navigate the year ahead as the market looks to stabilize.
And the cherry on top, we also signed two multiyear eight-figure deals in Q4, which validates the trend that our large stable customer base has continued to expand their relationship with Blend across multiple products. More customers than ever treated as a critical software powering their enterprise and we're happy to see this continue into the new year. Before I pass it on to Amir, who will go into more detail on the financial results and 2024 guidance, let me first dive deeper into the progress across these three focus areas. Starting with our Consumer Banking business, we're seeing growing interest across our entire product suite. This is starting to play out in a huge way for us. By the end of 2023, we had seven of the top 30 depository financial institutions by retail customer base, signed up for one or more of our core consumer banking products excluding our traditional equity products.
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