Cloud banking software provider maintains steady growth in consumer banking revenue, while reversing the decline in its main line of business of providing services to mortgage lenders.
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Cloud banking software provider Blend Labs Inc. managed to grow both its mortgage and consumer banking businesses during the second quarter, trimming its net loss by 53 percent from a year ago to $19.4 million.
While not a dramatic improvement from the company’s $20.7 million Q1 net loss, Blend now has a longer runway to become profitable, having secured a $150 million cash injection in April from Austin, Texas-based private equity firm Haveli Investments. Blend used the money to pay off the debt it took on to get into the title insurance business by acquiring Title365 in 2021.
Blend’s second quarter results exceeded analysts’ earnings and revenue expectations, and shares in Blend gained 23 percent Friday to close at $3.30. Shares in Blend, which in the last year have changed hands for as little as $1.03 and as much as $4.14, hit an all-time low of 53 cents on May 5, 2023.
“The second quarter marked another strong quarter for Blend, as we signed several important deals with new customers across mortgage and consumer banking,” Blend CEO Nima Ghamsari said in a statement. “Despite continued pressures on the mortgage industry, we’re excited about the new investments we made in the Blend Platform and the success we achieved in expanding our relationships with key customers through their increased adoption of our add-on products.”
At $40.5 million, Q2 revenue was down 5 percent from a year ago but up 16 percent from $34.9 million in Q1. Blend said it expects Q3…