Blend reported our Q2 earnings today, and I’m proud of our results and grateful to our customers for continuing to push us every day. We continue to grow across our product lines, and are delivering more innovation than ever before in this difficult macro environment. It’s because of you that we were able to beat our expectations on not just revenue, but also our earnings.
It’s often said that companies who double down on their core mission during tough times emerge stronger on the other side. I see this in many of you, who are not just surviving through the downturn, but building for future growth by enhancing your offerings and delivering exceptional customer experiences.
This is true for us, too. We’ve always been an ambitious company. There are so many problems to solve in financial services, and I’ve long believed that Blend can and will play a fundamental role in solving these.
But I’ve also heard from you that you want to see our continued progress towards profitability to ensure that we can be your partner for a decade to come. And so, like many of you are doing, we examined where we can be more efficient. Following that, today we announced an additional cost reduction that accelerates our path to profitability. This is important in an uncertain macroeconomic environment. Between our healthy balance sheet of $270m+ and significantly lower operating expense, you can now be assured that we’ll be around for as long as you need us.
I want to be clear about what we’re not stopping. We are not reducing our investment in customer support –– in fact, we’re increasing our investment here. We heard from many of you that responsiveness in support is critical, and we’re listening. We’re also keeping all of our major customer-facing efforts around professional services, customer success, and integrations largely intact, because we know how important those are to your velocity of transformation.
We’re also not slowing down our pace of innovation. We continue to add new features like soft credit pulls to help with trigger leads and condition management to automate more of the fulfillment process. And Blend Builder allows us to deliver new functionality an order of magnitude faster and cheaper than before, and so we believe we’ll increase our pace of product growth (as a side note, for our mortgage customers, stay tuned for an upcoming announcement of mortgage and builder!).
Looking ahead, I feel strongly that the changes we’ve made today position you and Blend for more efficient growth and value creation. As we announced in today’s Q2 earnings results, we expect these reductions to accelerate our path to profitability as we now have a clear line of sight to reaching positive operating income sooner in 2024. We remain well capitalized, well-positioned to navigate macro headwinds, and we’re growing market share as we deliver superior value to our customers.
I’m confident in our road ahead and in our ability to serve you for decades to come. Thank you for your continued partnership.
Nima
Forward-looking statements and Non-GAAP Financial Measures
This blog post 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, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Blend’s future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as “may,“ “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern Blend’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this blog post include, but are not limited to, statements regarding Blend’s financial condition and operating performance, including its outlook, market size and growth opportunities, capital expenditures, plans for future operations, competitive positions, technological capabilities, strategic relationships, Blend’s opportunity to increase market share and penetration in its existing customers, projections for a sharp decrease in mortgage loan origination volumes, other macroeconomic and industry conditions, Blend’s ability to create long-term value for our customers, and Blend’s expectations for revenue growth. If any of the risks or uncertainties related to the forward-looking statements develop or if any of the assumptions related to the forward-looking statements prove incorrect, actual results could differ materially from those projected, expressed, or implied by our forward-looking statements. The forward-looking statements contained in this blog post are also subject to other risks and uncertainties, including those more fully described in Blend’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023. All forward-looking statements in this blog post are based on information available to Blend and assumptions and beliefs as of the date hereof, and Blend disclaims any obligation to update any forward-looking statements, except as required by law.
In addition to financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this blog post includes certain non-GAAP financial measures. These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information 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 Blend’s financial statements. Management encourages investors and others to review Blend’s financial information in its entirety and not rely on a single financial measure.