(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit No. | |||||
99.1 | |||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
Blend Labs, Inc. | ||||||||
Date: March 15, 2024 | ||||||||
By: | /s/ Amir Jafari | |||||||
Name: | Amir Jafari | |||||||
Title: | Head of Finance and Administration (Principal Financial Officer) |
$ in millions | |||||
Q1 2024 Guidance | |||||
Blend Platform Segment Revenue | $22.0 – $24.0 | ||||
Title Revenue | $10.5 – $11.5 | ||||
Blend Labs, Inc. Consolidated Revenue | $32.5 – $35.5 | ||||
Non-GAAP Net Operating Loss | ($14.0) – ($12.0) |
December 31, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 30,962 | $ | 124,199 | |||||||
Marketable securities and other investments | 105,960 | 229,948 | |||||||||
Trade and other receivables, net of allowance for credit losses of $149 and $436, respectively | 18,345 | 22,718 | |||||||||
Prepaid expenses and other current assets | 14,569 | 19,231 | |||||||||
Total current assets | 169,836 | 396,096 | |||||||||
Property and equipment, net | 3,945 | 5,742 | |||||||||
Operating lease right-of-use assets | 8,565 | 11,668 | |||||||||
Intangible assets, net | 2,108 | 2,127 | |||||||||
Deferred contract costs | 2,453 | 1,691 | |||||||||
Restricted cash, non-current | 7,291 | 5,358 | |||||||||
Other non-current assets | 11,867 | 10,082 | |||||||||
Total assets | $ | 206,065 | $ | 432,764 | |||||||
Liabilities, Redeemable Noncontrolling Interest and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 2,170 | $ | 1,260 | |||||||
Deferred revenue | 8,984 | 8,695 | |||||||||
Accrued compensation | 5,562 | 10,059 | |||||||||
Other current liabilities | 14,858 | 15,459 | |||||||||
Total current liabilities | 31,574 | 35,473 | |||||||||
Operating lease liabilities, non-current | 6,982 | 11,091 | |||||||||
Other non-current liabilities | 2,228 | 5,478 | |||||||||
Debt, non-current, net | 138,334 | 216,801 | |||||||||
Total liabilities | 179,118 | 268,843 | |||||||||
Commitments and contingencies | |||||||||||
Redeemable noncontrolling interest | 46,190 | 40,749 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.00001 par value: 200,000 shares authorized and no shares issued and outstanding as of December 31, 2023; no shares authorized, issued and outstanding as of December 31, 2022 | — | — | |||||||||
Class A, Class B and Class C Common Stock, $0.00001 par value: 3,000,000 (Class A 1,800,000, Class B 600,000, Class C 600,000) shares authorized as of December 31, 2023; 249,910 (Class A 240,262, Class B 9,648, Class C 0) and 240,931 (Class A 230,210, Class B 10,721, Class C 0) shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively | 2 | 2 | |||||||||
Additional paid-in capital | 1,321,944 | 1,286,815 | |||||||||
Accumulated other comprehensive loss | 441 | (708) | |||||||||
Accumulated deficit | (1,341,630) | (1,162,937) | |||||||||
Total stockholders’ equity | (19,243) | 123,172 | |||||||||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $ | 206,065 | $ | 432,764 | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Software platform | $ | 23,614 | $ | 23,244 | $ | 101,204 | $ | 113,589 | |||||||||||||||
Professional services | 2,258 | 2,034 | 8,345 | 7,835 | |||||||||||||||||||
Title | 10,232 | 17,507 | 47,297 | 113,777 | |||||||||||||||||||
Total revenue | 36,104 | 42,785 | 156,846 | 235,201 | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Software platform | 5,061 | 6,555 | 22,025 | 30,706 | |||||||||||||||||||
Professional services | 2,617 | 4,133 | 11,065 | 15,504 | |||||||||||||||||||
Title | 8,700 | 17,690 | 42,621 | 99,340 | |||||||||||||||||||
Total cost of revenue | 16,378 | 28,378 | 75,711 | 145,550 | |||||||||||||||||||
Gross profit | 19,726 | 14,407 | 81,135 | 89,651 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 14,417 | 33,248 | 81,591 | 138,094 | |||||||||||||||||||
Sales and marketing | 11,940 | 19,951 | 60,130 | 85,248 | |||||||||||||||||||
General and administrative | 14,542 | 33,406 | 70,688 | 139,120 | |||||||||||||||||||
Amortization of acquired intangible assets | — | — | — | 8,411 | |||||||||||||||||||
Impairment of intangible assets and goodwill | — | — | — | 449,680 | |||||||||||||||||||
Restructuring | 694 | 2,959 | 24,948 | 15,275 | |||||||||||||||||||
Total operating expenses | 41,593 | 89,564 | 237,357 | 835,828 | |||||||||||||||||||
Loss from operations | (21,867) | (75,157) | (156,222) | (746,177) | |||||||||||||||||||
Interest expense | (7,085) | (7,348) | (30,811) | (24,790) | |||||||||||||||||||
Other income (expense), net | (1,498) | 1,538 | 7,248 | 4,916 | |||||||||||||||||||
Loss before income taxes | (30,450) | (80,967) | (179,785) | (766,051) | |||||||||||||||||||
Income tax (expense) benefit | 74 | (476) | (94) | 2,241 | |||||||||||||||||||
Net loss | (30,376) | (81,443) | (179,879) | (763,810) | |||||||||||||||||||
Less: Net loss attributable to noncontrolling interest | 91 | 874 | 1,186 | 43,638 | |||||||||||||||||||
Net loss attributable to Blend Labs, Inc. | (30,285) | (80,569) | (178,693) | (720,172) | |||||||||||||||||||
Less: Accretion of redeemable noncontrolling interest to redemption value | (1,527) | (2,141) | (6,627) | (48,438) | |||||||||||||||||||
Net loss attributable to Blend Labs, Inc. common stockholders | $ | (31,812) | $ | (82,710) | $ | (185,320) | $ | (768,610) | |||||||||||||||
Net loss per share attributable to Blend Labs, Inc. common stockholders: | |||||||||||||||||||||||
Basic and diluted | $ | (0.13) | $ | (0.35) | $ | (0.76) | $ | (3.28) | |||||||||||||||
Weighted average shares used in calculating net loss per share: | |||||||||||||||||||||||
Basic and diluted | 248,616 | 238,442 | 245,206 | 234,161 | |||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||
Net loss | $ | (30,376) | $ | (81,443) | $ | (179,879) | $ | (763,810) | |||||||||||||||
Unrealized gain (loss) on marketable securities | 801 | 1,377 | 1,030 | (135) | |||||||||||||||||||
Foreign currency translation gain | 42 | 75 | 119 | 235 | |||||||||||||||||||
Comprehensive loss | (29,533) | (79,991) | (178,730) | (763,710) | |||||||||||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | 91 | 874 | 1,186 | 43,638 | |||||||||||||||||||
Comprehensive loss attributable to Blend Labs, Inc. | $ | (29,442) | $ | (79,117) | $ | (177,544) | $ | (720,072) |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net loss | $ | (30,376) | $ | (81,443) | $ | (179,879) | $ | (763,810) | |||||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||||||||||
Stock-based compensation | 6,223 | 28,191 | 46,021 | 109,702 | |||||||||||||||||||
Depreciation and amortization | 608 | 613 | 2,464 | 10,766 | |||||||||||||||||||
Impairment of intangible assets and goodwill | — | — | — | 449,680 | |||||||||||||||||||
Amortization of deferred contract costs | 552 | 1,078 | 2,979 | 4,638 | |||||||||||||||||||
Amortization of debt discount and issuance costs | 689 | 871 | 2,968 | 3,058 | |||||||||||||||||||
Amortization of operating lease right-of-use assets | 846 | 989 | 3,296 | 3,650 | |||||||||||||||||||
Loss on extinguishment of debt | 3,970 | — | 3,970 | — | |||||||||||||||||||
Release of valuation allowance and change in deferred taxes | — | — | — | (2,864) | |||||||||||||||||||
Gain on investment in equity securities | — | — | — | (2,884) | |||||||||||||||||||
Other | (530) | 169 | (5,187) | 2,129 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Trade and other receivables | 1,245 | 5,127 | 4,274 | 12,289 | |||||||||||||||||||
Prepaid expenses and other assets, current and non-current | 3,544 | 5,550 | 2,048 | 9,374 | |||||||||||||||||||
Deferred contract costs, non-current | (220) | 265 | (762) | 2,487 | |||||||||||||||||||
Accounts payable | 49 | (1,290) | 910 | (4,900) | |||||||||||||||||||
Deferred revenue | (1,072) | (1,264) | 289 | 627 | |||||||||||||||||||
Accrued compensation | (4,305) | (3,694) | (4,497) | (8,081) | |||||||||||||||||||
Operating lease liabilities | (1,068) | (1,225) | (4,012) | (3,888) | |||||||||||||||||||
Other liabilities, current and non-current | (846) | (1,270) | (2,503) | (12,391) | |||||||||||||||||||
Net cash used in operating activities | (20,691) | (47,333) | (127,621) | (190,418) | |||||||||||||||||||
Investing activities | |||||||||||||||||||||||
Purchases of marketable securities | (32,798) | (49,325) | (236,079) | (145,543) | |||||||||||||||||||
Sale of marketable securities | 55,822 | 6 | 56,022 | 6 | |||||||||||||||||||
Maturities of marketable securities | 32,795 | 107,164 | 310,450 | 247,036 | |||||||||||||||||||
Additions to property, equipment, internal-use software and intangible assets | (82) | (458) | (587) | (2,068) | |||||||||||||||||||
Investment in note receivable | (2,500) | — | (2,500) | — | |||||||||||||||||||
Net cash provided by investing activities | 53,237 | 57,387 | 127,306 | 99,431 | |||||||||||||||||||
Financing activities | |||||||||||||||||||||||
Proceeds from initial public offering, net of underwriters' fees and issuance costs | — | — | — | (391) | |||||||||||||||||||
Proceeds from exercises of stock options, including early exercises, net of repurchases | 248 | 41 | 268 | 2,611 | |||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (1,314) | — | (6,171) | — | |||||||||||||||||||
Partial repayment of long-term debt principal | (85,055) | — | (85,055) | — | |||||||||||||||||||
Net cash (used in) provided by financing activities | (86,121) | 41 | (90,958) | 2,220 | |||||||||||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (21) | (276) | (31) | (116) | |||||||||||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (53,596) | 9,819 | (91,304) | (88,883) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 91,849 | 119,738 | 129,557 | 218,440 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 38,253 | $ | 129,557 | $ | 38,253 | $ | 129,557 | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 30,962 | $ | 124,199 | $ | 30,962 | $ | 124,199 | |||||||||||||||
Restricted cash | 7,291 | 5,358 | 7,291 | 5,358 | |||||||||||||||||||
Total cash, cash equivalents, and restricted cash | $ | 38,253 | $ | 129,557 | $ | 38,253 | $ | 129,557 | |||||||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||||||||||||
Cash paid for income taxes | $ | 59 | $ | 86 | $ | 107 | $ | 276 | |||||||||||||||
Cash paid for interest | $ | 6,350 | $ | 6,498 | $ | 27,814 | $ | 25,056 | |||||||||||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||||||||||||||
Vesting of early exercised stock options | $ | 202 | $ | 387 | $ | 1,446 | $ | 4,060 | |||||||||||||||
Accretion of redeemable noncontrolling interest to redemption value | $ | 1,527 | $ | 2,141 | $ | 6,627 | $ | 48,438 | |||||||||||||||
Operating lease liabilities arising from obtaining new or modified right-of-use assets | $ | — | $ | — | $ | 327 | $ | 605 |
Three Months Ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Blend Platform: | YoY change | ||||||||||||||||||||||
Mortgage Suite | $ | 17,203 | 66 | % | $ | 17,653 | 70 | % | (3) | % | |||||||||||||
Consumer Banking Suite | 6,411 | 25 | % | 5,591 | 22 | % | 15 | % | |||||||||||||||
Total Software Platform | 23,614 | 91 | % | 23,244 | 92 | % | 2 | % | |||||||||||||||
Professional services | 2,258 | 9 | % | 2,034 | 8 | % | 11 | % | |||||||||||||||
Total Blend Platform | 25,872 | 100 | % | 25,278 | 100 | % | 2 | % | |||||||||||||||
Title | 10,232 | 17,507 | (42) | % | |||||||||||||||||||
Total revenue | $ | 36,104 | $ | 42,785 | (16) | % |
Year Ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Blend Platform: | YoY change | ||||||||||||||||||||||
Mortgage Suite | $ | 77,574 | 70 | % | $ | 94,280 | 78 | % | (18) | % | |||||||||||||
Consumer Banking Suite | 23,630 | 22 | % | 19,309 | 16 | % | 22 | % | |||||||||||||||
Total Software Platform | 101,204 | 92 | % | 113,589 | 94 | % | (11) | % | |||||||||||||||
Professional services | 8,345 | 8 | % | 7,835 | 6 | % | 7 | % | |||||||||||||||
Total Blend Platform | 109,549 | 100 | % | 121,424 | 100 | % | (10) | % | |||||||||||||||
Title | 47,297 | 113,777 | (58) | % | |||||||||||||||||||
Total revenue | $ | 156,846 | $ | 235,201 | (33) | % |
Three Months Ended December 31, 2023 | |||||||||||||||||||||||
GAAP | Non-GAAP adjustments(1) | Non-GAAP | |||||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||||||
Blend Platform | |||||||||||||||||||||||
Software platform | $ | 18,553 | 79 | % | $ | 6 | $ | 18,559 | 79 | % | |||||||||||||
Professional services | (359) | (16) | % | 147 | (212) | (9) | % | ||||||||||||||||
Total Blend Platform | 18,194 | 70 | % | 153 | 18,347 | 71 | % | ||||||||||||||||
Title | 1,532 | 15 | % | — | 1,532 | 15 | % | ||||||||||||||||
Total | $ | 19,726 | 55 | % | $ | 153 | $ | 19,879 | 55 | % | |||||||||||||
Three Months Ended December 31, 2022 | |||||||||||||||||||||||
GAAP | Non-GAAP adjustments(1) | Non-GAAP | |||||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||||||
Blend Platform | |||||||||||||||||||||||
Software platform | $ | 16,689 | 72 | % | $ | 19 | $ | 16,708 | 72 | % | |||||||||||||
Professional services | (2,099) | (103) | % | 316 | (1,783) | (88) | % | ||||||||||||||||
Total Blend Platform | 14,590 | 58 | % | 335 | 14,925 | 59 | % | ||||||||||||||||
Title | (183) | (1) | % | 239 | 56 | — | % | ||||||||||||||||
Total | $ | 14,407 | 34 | % | $ | 574 | $ | 14,981 | 35 | % |
Year Ended December 31, 2023 | |||||||||||||||||||||||
GAAP | Non-GAAP adjustments(1) | Non-GAAP | |||||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||||||
Blend Platform | |||||||||||||||||||||||
Software platform | $ | 79,179 | 78 | % | $ | 36 | $ | 79,215 | 78 | % | |||||||||||||
Professional services | (2,720) | (33) | % | 950 | (1,770) | (21) | % | ||||||||||||||||
Total Blend Platform | 76,459 | 70 | % | 986 | 77,445 | 71 | % | ||||||||||||||||
Title | 4,676 | 10 | % | 146 | 4,822 | 10 | % | ||||||||||||||||
Total | $ | 81,135 | 52 | % | $ | 1,132 | $ | 82,267 | 52 | % | |||||||||||||
Year Ended December 31, 2022 | |||||||||||||||||||||||
GAAP | Non-GAAP adjustments(1) | Non-GAAP | |||||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||||||
Blend Platform | |||||||||||||||||||||||
Software platform | $ | 82,883 | 73 | % | $ | 59 | $ | 82,942 | 73 | % | |||||||||||||
Professional services | (7,669) | (98) | % | 1,003 | (6,666) | (85) | % | ||||||||||||||||
Total Blend Platform | 75,214 | 62 | % | 1,062 | 76,276 | 63 | % | ||||||||||||||||
Title | 14,437 | 13 | % | 1,007 | 15,444 | 14 | % | ||||||||||||||||
Total | $ | 89,651 | 38 | % | $ | 2,069 | $ | 91,720 | 39 | % |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
GAAP operating expenses | $ | 41,593 | $ | 89,564 | $ | 237,357 | $ | 835,828 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation(1) and amortization of warrant | 6,070 | 27,617 | 44,889 | 107,657 | |||||||||||||||||||
Compensation realignment costs(2) | 1,011 | — | 5,174 | — | |||||||||||||||||||
Amortization of acquired intangible assets(3) | — | — | — | 8,411 | |||||||||||||||||||
Impairment of intangible assets and goodwill(4) | — | — | — | 449,680 | |||||||||||||||||||
Restructuring(5) | 694 | 2,959 | 24,948 | 15,275 | |||||||||||||||||||
Litigation contingencies(6) | 650 | 700 | 405 | 700 | |||||||||||||||||||
Transaction-related costs(7) | 175 | 183 | 2,066 | 3,139 | |||||||||||||||||||
Non-GAAP operating expenses | $ | 32,993 | $ | 58,105 | $ | 159,875 | $ | 250,966 | |||||||||||||||
GAAP loss from operations | $ | (21,867) | $ | (75,157) | $ | (156,222) | $ | (746,177) | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation(1) and amortization of warrant | 6,223 | 28,191 | 46,021 | 109,726 | |||||||||||||||||||
Compensation realignment costs(2) | 1,011 | — | 5,174 | — | |||||||||||||||||||
Amortization of acquired intangible assets(3) | — | — | — | 8,411 | |||||||||||||||||||
Impairment of intangible assets and goodwill(4) | — | — | — | 449,680 | |||||||||||||||||||
Restructuring(5) | 694 | 2,959 | 24,948 | 15,275 | |||||||||||||||||||
Litigation contingencies(6) | 650 | 700 | 405 | 700 | |||||||||||||||||||
Transaction-related costs(7) | 175 | 183 | 2,066 | 3,139 | |||||||||||||||||||
Non-GAAP loss from operations | $ | (13,114) | $ | (43,124) | $ | (77,608) | $ | (159,246) | |||||||||||||||
GAAP net loss | $ | (30,376) | $ | (81,443) | $ | (179,879) | $ | (763,810) | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation(1) and amortization of warrant | 6,223 | 28,191 | 46,021 | 109,726 | |||||||||||||||||||
Loss on extinguishment of debt(12) | 3,970 | — | 3,970 | — | |||||||||||||||||||
Compensation realignment costs(2) | 1,011 | — | 5,174 | — | |||||||||||||||||||
Amortization of acquired intangible assets(3) | — | — | — | 8,411 | |||||||||||||||||||
Impairment of intangible assets and goodwill(4) | — | — | — | 449,680 | |||||||||||||||||||
Restructuring(5) | 694 | 2,959 | 24,948 | 15,275 | |||||||||||||||||||
Litigation contingencies(6) | 650 | 700 | 405 | 700 | |||||||||||||||||||
Transaction-related costs(7) | 175 | 183 | 2,066 | 3,139 | |||||||||||||||||||
Gain on investment in equity securities(8) | — | — | — | (2,884) | |||||||||||||||||||
Foreign currency gains and losses(9) | 6 | 109 | (77) | 458 | |||||||||||||||||||
Income tax benefit(10) | — | — | — | (2,864) | |||||||||||||||||||
Non-GAAP net loss | $ | (17,647) | $ | (49,301) | $ | (97,372) | $ | (182,169) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
GAAP basic net loss per share | $ | (0.13) | $ | (0.35) | $ | (0.76) | $ | (3.28) | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Net loss attributable to noncontrolling interest(11) | — | — | — | (0.19) | |||||||||||||||||||
Accretion of redeemable noncontrolling interest to redemption value(11) | 0.01 | 0.01 | 0.03 | 0.21 | |||||||||||||||||||
Stock-based compensation(1) and amortization of warrant | 0.03 | 0.12 | 0.18 | 0.47 | |||||||||||||||||||
Loss on extinguishment of debt(12) | 0.02 | — | 0.02 | — | |||||||||||||||||||
Compensation realignment costs(2) | — | — | 0.02 | — | |||||||||||||||||||
Amortization of acquired intangible assets(3) | — | — | — | 0.04 | |||||||||||||||||||
Impairment of intangible assets and goodwill(4) | — | — | — | 1.92 | |||||||||||||||||||
Restructuring(5) | — | 0.01 | 0.10 | 0.06 | |||||||||||||||||||
Litigation contingencies(6) | — | — | — | — | |||||||||||||||||||
Transaction-related costs(7) | — | — | 0.01 | 0.01 | |||||||||||||||||||
Gain on investment in equity securities(8) | — | — | — | (0.01) | |||||||||||||||||||
Foreign currency gains and losses(9) | — | — | — | — | |||||||||||||||||||
Income tax benefit(10) | — | — | — | (0.01) | |||||||||||||||||||
Non-GAAP basic net loss per share | $ | (0.07) | $ | (0.21) | $ | (0.40) | $ | (0.78) |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net cash used in operating activities | $ | (20,691) | $ | (47,333) | $ | (127,621) | $ | (190,418) | |||||||||||||||
Additions to property, equipment, internal-use software and intangible assets | (82) | (458) | (587) | (2,068) | |||||||||||||||||||
Free cash flow | (20,773) | (47,791) | (128,208) | (192,486) | |||||||||||||||||||
Cash paid for interest | 6,350 | 6,498 | 27,814 | 25,056 | |||||||||||||||||||
Unlevered free cash flow | $ | (14,423) | $ | (41,293) | $ | (100,394) | $ | (167,430) | |||||||||||||||
Revenue | $ | 36,104 | $ | 42,785 | $ | 156,846 | $ | 235,201 | |||||||||||||||
Free cash flow margin | (58) | % | (112) | % | (82) | % | (82) | % |
Notes: | |||||||||||||||||||||||
(1) Stock-based compensation represents the non-cash grant date fair value of stock-based instruments utilized to incentivize our employees, for which the expense is recognized over the applicable vesting or performance period. | |||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
Stock-based compensation by function: | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Cost of revenue | $ | 153 | $ | 574 | $ | 1,132 | $ | 2,069 | |||||||||||||||
Research and development | 1,996 | 12,624 | 19,046 | 47,280 | |||||||||||||||||||
Sales and marketing | 846 | 3,274 | 7,137 | 11,725 | |||||||||||||||||||
General and administrative | 3,228 | 11,719 | 18,706 | 48,628 | |||||||||||||||||||
Total | $ | 6,223 | $ | 28,191 | $ | 46,021 | $ | 109,702 |
(2) Compensation realignment costs relate to amortization of one-time cash bonus payment (paid in two installments in March and May 2023) to certain employees in lieu of previously committed equity-based awards, driven by an organizational initiative to standardize our equity compensation program. | ||||||||||||||||||||||||||
(3) Amortization of acquired intangible assets represents non-cash amortization of customer relationships acquired in connection with the Title365 acquisition. | ||||||||||||||||||||||||||
(4) Impairment of intangible assets and goodwill relates to charges recorded based on the results of the interim quantitative impairment analysis performed in the three months ended June 30, 2022 and in the three months ended September 30, 2022, in response to certain triggering events, such as a continued decline in economic and market conditions, decline in our market capitalization, and current and projected declines in the operating results of the Title365 reporting unit. | ||||||||||||||||||||||||||
(5) The restructuring charges relate to our workforce reduction plans executed as part of our broader efforts to improve cost efficiency and better align our operating structure with our business activities. | ||||||||||||||||||||||||||
(6) Litigation contingencies represent reserves for legal settlements that are unusual or infrequent costs associated with our operating activities. | ||||||||||||||||||||||||||
(7) Transaction-related costs include non-recurring due diligence, consulting, and integration costs recorded within general and administrative expense. | ||||||||||||||||||||||||||
(8) Gain on investment in equity securities represents an adjustment to the carrying value of the non-marketable security without a readily determinable fair value to reflect observable price changes. | ||||||||||||||||||||||||||
(9) Foreign currency gains and losses include transaction gains and losses incurred in connection with our operations in India. | ||||||||||||||||||||||||||
(10) Income tax benefit represents the non-recurring release of historical valuation allowance resulting from changes in U.S. tax law requiring capitalization and amortization of research and development costs for tax purposes. | ||||||||||||||||||||||||||
(11) Net loss attributable to noncontrolling interest and accretion of redeemable noncontrolling interest to redemption value relate to the 9.9% non-controlling interest in our Title365 subsidiary. | ||||||||||||||||||||||||||
(12) Loss on extinguishment of debt relates to the proportionate write-off of unamortized debt issuance costs and debt discounts due to the partial extinguishment of the Term Loan and the write off of unamortized portion of debt issuance costs related to the termination of the Revolving Facility. |
Cover |
Mar. 14, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K/A |
Document Period End Date | Mar. 14, 2024 |
Entity Registrant Name | Blend Labs, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-40599 |
Entity Tax Identification Number | 45-5211045 |
Entity Address, Address Line One | 415 Kearny Street |
Entity Address, City or Town | San Francisco |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94108 |
City Area Code | 650 |
Local Phone Number | 550-4810 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A Common Stock, par value of $0.00001 per share |
Trading Symbol | BLND |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Amendment Flag | false |
Entity Central Index Key | 0001855747 |
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