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Image source: The Motley Fool. Blend Labs, Inc. ( BLND 5.54%) Q1 2022 Earnings Call May 12, 2022, 5:00 p.m. ET Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Crystal Sumner
Good afternoon, and welcome to the Blends first quarter 2022 earnings conference call. My name is Crystal Sumner, head of legal compliance and risk for the company. With me today are Nima Ghamsari, co-founder and head of Blend; Tim Mayopoulos, president; and Marc Greenberg, head of finance. After Nima and Marc deliver their prepared remarks, the team will take questions.
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 may be considered forward-looking statements under federal securities laws.
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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-Q, 10-K, 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 — Co-Founder and Head
Thank you, Crystal, and hello, everyone. We appreciate you spending time with us today. Blend delivered a solid first quarter in a tough market with revenue ahead of expectations. In many ways, this quarter validates our view of both 2022 and Blend’s long-term potential.
For this call, I’d like to cover four topics: first, a summary of our Q1 highlights and our general operating environment; second, an update on current market conditions and how this impacts our business; third, how we’re executing against our long-term growth thesis; and lastly, an update on how we’re thinking about near-term management of the business and capital allocation. After that, Marc will review the quarter in more detail, and then we’ll take questions. Tim is also with us for Q&A. Starting with Q1 highlights, we are encouraged by our top-line performance, which reinforces our confidence in our 2022 outlook.
Revenue of $71.5 million was ahead of the range we gave you at the end of March, and Marc will take you through that in more detail. But the takeaway is that we did better than we expected in both mortgage and in consumer banking. In fact, we delivered 3% growth in Blend platform segment revenues as compared to Q1 2021, despite Q1 mortgage market volumes being down an estimated 44% year-over-year. Additionally, declines in Title365 were less than anticipated.
This was largely due to the timing of interest rate impacts. Refinancing activity has begun to meaningfully decline in Q2. In addition to benefiting from growth in mortgage market share, we continue to cross-sell and increase our wallet share of our existing customer base. At the end of the quarter, about two-thirds of our existing customers subscribe to two or more software products.
Consumer banking and marketplace revenue, therefore, was up 55% year-over-year, and we are seeing continued adoption of this suite of products. At the end of Q1, 22% of our Blend platform revenue came from consumer bank and marketplace, and approximately one-third of our total customer base now use one or more of these products. So we’ve exceeded our expectations for the first quarter, and we’re continuing to build momentum […]
source Blend Labs, Inc. (BLND) Q1 2022 Earnings Call Transcript
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