Overview

* Blend Labs ( BLND ) Q2 revenue grows 10% yr/yr but misses analyst expectations, per LSEG data

* Company reports fourth consecutive quarter of non-GAAP profitability

* Record RPO balance of $190.4 mln, driven by $50 mln renewal

Outlook

* Blend expects Q3 revenue between $31.5 mln and $33.5 mln

* Company anticipates Q3 non-GAAP operating income of $3.0 mln to $4.5 mln

* Blend sees slight increase in mortgage originations in Q3

* Company expects Q4 mortgage volume decrease due to seasonal patterns

Result Drivers

* SALES MOMENTUM - Blend's sales momentum accelerated with 23 new or expanded deals, doubling the first quarter's count

* CONSUMER BANKING GROWTH - Consumer Banking Suite revenue increased by 43% to $11.4 mln, driving overall revenue growth

* RECORD RPO - Achieved a record RPO balance of $190.4 mln, fueled by a $50 mln renewal and expansion

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $31.52 $31.90

Revenue mln mln (7

Analysts

)

Q2 Net -$6.64

Income mln

Q2 Gross $23.30

Profit mln

Q2 -$4.62

Income mln

from

operatio

ns

Q2 -$3.61

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Blend Labs Inc ( BLND ) is $4.90, about 26.9% above its August 6 closing price of $3.58

* The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 50 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)