In This Article:
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Platform Revenue: $26.8 million in Q1 2025, a 12% year-over-year growth.
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Mortgage Suite Revenue: $14.6 million in Q1 2025.
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Consumer Banking Suite Revenue: $9.6 million, a 45% year-over-year increase.
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Professional Services Revenue: $2.5 million in Q1 2025.
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Platform Non-GAAP Gross Profit: $19.5 million, with a gross margin of 73%.
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Operating Expenses: $18.5 million, down $9 million year-over-year.
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Non-GAAP Operating Income: $1 million, representing a 4% operating margin.
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Free Cash Flow: $15.5 million, with a free cash flow margin of 58%.
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Cash and Equivalents: Approximately $110 million at the end of Q1 2025.
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Share Repurchase: 923,000 shares repurchased for $3.1 million.
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Remaining Performance Obligations (RPO): $158.1 million, setting a record for Blend.
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Economic Value per Funded Loan: $93 in Q1 2025.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Blend Labs Inc (NYSE:BLND) achieved positive free cash flow of $15.5 million in Q1 2025, marking a record for the company.
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The company reported three consecutive quarters of non-GAAP operating profitability.
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Blend Labs Inc (NYSE:BLND) signed 11 new or expanded deals in Q1 2025, nearly three times more than the same period last year.
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The company announced a $50 million renewal and expansion deal with a top financial institution, showcasing its ability to scale with customers.
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Blend Labs Inc (NYSE:BLND) is transitioning to a software-first model, which is expected to drive higher absolute profit dollars and improve gross margins.
Negative Points
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The potential sale of the title insurance business may result in lower reported revenue compared to typical title transactions.
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Economic value per funded loan was $93 in Q1 2025, slightly below the guidance of $94.
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The company anticipates economic value per funded loan to decrease to $88 in Q2 2025, marking a trough before expected improvements.
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Blend Labs Inc (NYSE:BLND) faces challenges from macroeconomic volatility, including potential impacts from tariffs and banking deregulation.
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The transition to a partner-first model may initially put downward pressure on economic value per funded loan as new customers start with core applications before expanding.
Q & A Highlights
Q: How does Blend's RapidRefi product enhance customer retention and conversion rates during uncertain times? A: Nima Ghamsari, Chairman of the Board, Co-Founder, Head of Blend, explained that RapidRefi is designed to be the most frictionless way to refinance, tailored to specific customer situations. This personalization drives higher pull-through rates, allowing customers to compare old and new payments side by side, enhancing conversion by facilitating critical steps like intent to proceed and rate lock within the platform.