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NEW YORK - Blend Labs , Inc. (NYSE:BLND) reported fourth-quarter earnings that slightly missed analyst expectations, sending its stock tumbling 10% in after-hours trading on Thursday.
The mortgage and banking software provider posted adjusted earnings per share of $0.00, falling short of the $0.01 consensus estimate. Revenue for the quarter came in at $41.4 million, just above the $41.38 million analysts had projected and up 15% YoY.
Blend’s Consumer Banking Suite continued to show strong growth, with revenue increasing 48% YoY to $9.5 million. However, this was not enough to offset the slight earnings miss that appears to have disappointed investors.
"2024 was a pivotal year for Blend. In Q4, we brought on several new customers, including PHH Mortgage and a top 10 U.S. bank," said Nima Ghamsari, Head of Blend. "We achieved 42% annual revenue growth in our Consumer Banking business, reinforcing its promise as an emerging growth driver."
The company reported a GAAP loss from operations of $1.8 million, significantly improved from a $21.9 million loss in the same quarter last year. Non-GAAP income from operations was $5.2 million, representing a 13% operating margin.
For the first quarter of 2025, Blend expects Blend Platform segment revenue between $25.0 million and $27.0 million. The company also raised its Consumer Banking Suite revenue growth target for 2023 to 2026, increasing the compound annual growth rate from 35% to 40%.
Despite the earnings miss, Blend highlighted its progress in expanding partnerships and launching new products like its Rapid Home Lending solutions, which aim to improve efficiency in refinance and home equity lending.
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