#13 blend Blend Labs, Inc. Q1 2023 Earnings Supplemental Slides MAY 9, 2023#2Forward-Looking Statements and Non-GAAP Financial Measures This presentation 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 presentation 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 presentation 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 Report on Form 10-Q for the quarter ended March 31, 2023 that will be filed following this presentation. All forward-looking statements in this presentation 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 presentation includes certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP loss from operations, and non-GAAP net loss. These non-GAAP financial measures adjust the related GAAP financial measures to exclude non-cash stock-based compensation and warrant amortization expense, amortization of acquired intangible assets, non-recurring acquisition-related costs, and non-recurring income tax expenses or benefits related to acquisitions. 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. Blend's management uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to the corresponding GAAP financial measures, in evaluating Blend's ongoing operational performance and trends, in allowing for greater transparency with respect to measures used by Blend's management in their financial and operational decision making, and in comparing Blend's results of operations with other companies in the same industry, many of which present similar non-GAAP financial measures to help investors understand the operational performance of their businesses. However, it is important to note that the particular items excluded from, or included in, these non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. In addition, other companies may utilize metrics that are not similar to Blend's. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and 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. Please see the reconciliation tables at the end of this presentation for the reconciliation of GAAP and non-GAAP results. Management encourages investors and others to review Blend's financial information in its entirety and not rely on a single financial measure. This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on Blend's internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to such information. Blend has not independently verified the accuracy or completeness of the information contained in the industry publications and other publicly available information. Accordingly, Blend makes no representations as to the accuracy or completeness of that information nor does Blend undertake to update such information after the date of this presentation. blend#3First Quarter 2023 Highlights Revenue of $37.3 million exceeded guidance, driven by mortgage loan volume growth Non-GAAP operating loss outperformed top end of guidance by 17% as Blend executes on efficiency initiatives Added more than 8 percentage points to Blend's funded mortgage market share in the second half of 2022 blend#4Blend aligns reporting structure with its growth trajectory Platform Mortgage Mortgage old Consumer Banking & Marketplace eClose Income Auto Insurance Credit Cards Title365 Traditional title Deposit Personal Home Equity Realty Professional Services Software-enabled Title Platform Software: Mortgage Suite* Mortgage Insurance eClose for Mortgage Consumer Banking Suite* Auto Credit Cards Deposit new Title Income Realty Personal Home Equity eClose for CB Professional Services Software-enabled title Traditional title * See Notes 3 and 4 included in Appendix Blend is refining segment reporting in 2023 with the following enhancements: Platform Segment Includes Software and Professional Services Software features Blend's Mortgage Suite and Consumer Banking Suite Title segment Includes both software-enabled and traditional title blend#5Blend's Continued Progress in a Challenging Market Consumer Banking Suite* Revenue $6.0M $4.0M $2.0M $0.0 34% YoY increase $3.9M Q1 2022 $5.2M Q1 2023 *See Note 3 included in Appendix Mortgage Suite* Revenue $30.0M $20.0M $10.0M $0.0 Down 33% YoY despite an estimated 58% decline in industry-wide mortgage loan origination volumes $26.8M Q1 2022 $17.8M Q1 2023 * See Note 4 included in Appendix blend#6Building and Capturing Mortgage Market Share Blend continues to win market share* due to new customers increasing utilization and Blend customers winning market share Gross Retention of 97% in Q1 2023 Market Share 25% 20% 15% 10% 5% 0% 6.5% 2019 H2 Blend funded loans total market share 8.9% 2020 H1 * See Note 1 included in Appendix 10.1% 2020 H2 12.4% 2021 H1 14.5% 2021 H2 19.6% 2022 H1 23.2% 2022 H2 blend#7Mortgage Suite revenue per transaction* Blend customers continue to go live with Mortgage Suite add-ons, growing Blend's revenue per transaction * See Note 5 included in Appendix $100 $80 $60 $40 $20 $0 $71 Q1 2022 $77 Q2 2022 $78 Q3 2022 $85 Q4 2022 $98 Q1 2023 blend#8Spotlight: customer growth Even within the mortgage industry, Blend is managing to acquire wallet share and protect revenue during the current mortgage market headwinds. In this example, the growth in Mortgage Suite revenue per funded loan has offset the decline in mortgage market volumes. Growing Mortgage Suite wallet share with a premier mortgage company Software Revenue Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 ■ Mortgage ■ Mortgage Add-ons U.S. Mortgage Market Funded Loans Q4 2022 Q1 2023 U.S. Mortgage Market Funded Loans blend#9Executing on the road to profitability 80% 60% 40% 20% 0% Software Gross Margins Non-GAAP 72% Q1 2022 75% Q1 2023 Total Blend Gross Margins Non-GAAP 41% Q1 2022 44% Q1 2023 blend#10Reductions in Operating Expenses by function Showing progress to date on cost efficiency initiatives Operating Expenses in millions $ $30.0 Research & Development Non-GAAP $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $25.1 Q1 2022 $17.1 Q1 2023 Sales & Marketing Non-GAAP $19.7 Q1 2022 $14.7 Q1 2023 General & Administrative Non-GAAP $24.1 Q1 2022 $15.2 Q1 2023 blend#11Q2 2023 Guidance Blend guidance reflects the following: Continued execution by Blend in a marketplace characterized by economic uncertainty. An expected return to sequential growth in mortgage market volumes. Non-GAAP Net Operating Loss includes continued progress in Blend's cost efficiency initiatives. Blend Platform Revenue Title Revenue Blend Labs Consolidated Revenue Blend Labs Consolidated Non-GAAP Net Operating Loss Between $27M and $28M Between $12.5M and $13M Between $39.5M and $41M Between ($26.5M) and ($25M) blend#123 blend Appendix ©Blend 2023#13Revenue Disaggregation (New) (in thousands) Blend Platform revenue: Mortgage Suite Consumer Banking Suite Total Software revenue Professional Services Total Blend Platform revenue Title revenue: Traditional Software-enabled Total Title revenue Total revenue $ $ Three Months Ended March 31, 2023 2022 17,795 5,175 22,970 1,734 24,704 72 % $ 21 % 93 % 7% 100% 9,478 75% 3,154 25 % 100% 12,632 37,336 $ 26,753 3,851 30,604 1,972 32,576 38,731 217 38,948 71,524 82% 12% 94% 6% 100% 99 % 1% 100 % YoY change (33) % 34 % (25) % (12) % (24) % (76) % 1353 % (68) % (48)% blend 13#14Revenue Disaggregation (Old) (in thousands) Blend Platform revenue: Mortgage Banking Consumer Banking and Marketplace Professional Services Total Blend Platform revenue Title365 Total revenue $ $ Three Months Ended March 31, 2023 2022 14,909 11,929 1,021 27,859 9,477 37,336 53% $ 43% 4% 100% $ 24,484 7,187 1,122 32,793 38,731 71,524 75 % 22 % 3% 100 % YoY change (39)% 66 % (9)% (15)% (76)% (48)% blend 14#15Q1 2023 GAAP Financial Results (in thousands) Revenue Software Professional services. Title Total revenue Cost of revenue Software Professional services Title Total cost of revenue Gross profit Operating expenses: Research and development Sales and marketing General and administrative Amortization of acquired intangible assets Restructuring Total operating expenses Loss from operations Interest expense Other income (expense), net Loss before income taxes Income tax (expense) benefit Net loss Less: Net loss attributable to noncontrolling interest Net loss attributable to Blend Labs, Inc. Less: Accretion of redeemable noncontrolling interest to redemption value Net loss attributable to Blend Labs, Inc. common stockholders $ $ Three Months Ended March 31, 2023 2022 22,970 1,734 12,632 37,336 5,803 2,806 12,874 21,483 15,853 26,257 17,568 20,681 $ 12,783 77,289 (61,436) (7,569) 2,882 (66,123) (71) (66,194) 777 (65,417) (2,056) (67,473) $ 30,604 1,972 38,948 71,524 8,666 3,735 30,254 42,655 28,869 35,106 22,341 37,102 4,068 98,617 (69,748) (5,558) 91 (75,215) 2,797 (72,418) 314 (72,104) (1,442) (73,546) blend 15#16Q1 2023 GAAP Financial Results (cont.) (in thousands) Net loss per share attributable to Blend Labs, Inc. common stockholders: Basic and diluted Weighted average shares used in calculating net loss per share: Basic and diluted Three Months Ended March 31, 2023 2022 $(0.28) 241,444 $(0.32) 230,329 blend 16#17Reconciliation of GAAP to Non-GAAP Measures (in thousands) Gross Profit Reconciliation Blend Platform Software Professional services Total Blend Platform Title Total Gross Profit Reconciliation Blend Platform Software Professional services Total Blend Platform Title Total S $ S S GAAP Gross Profit 17,167 (1,072) 16,095 (242) 15,853 GAAP Gross Profit Three Months Ended March 31, 2023 Non-GAAP adjustments (¹) Gross Margin 75 % $ (62)% 65% (2)% 42 % $ Gross Margin 21,938 72 % $ (1,763) (89)% 20,175 62% 8,694 22 % 28,869 40 % $ 13 340 353 135 488 $ $ Three Months Ended March 31, 2022 Non-GAAP adjustments (1) 312 312 181 493 Non-GAAP $ Gross Profit 17,180 (732) 16,448 (107) 16,341 Gross Margin Non-GAAP Gross Profit 75 % (42)% 67 % (1)% 44 % Gross Margin 21,938 72% (1,451) (74)% 63% 23 % 41% 20,487 8,875 29,362 blend 17#18Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) GAAP operating expenses Non-GAAP adjustments: Stock-based compensation(¹) and amortization of warrant Compensation realignment costs(2) Amortization of acquired intangible assets(3) Restructuring (4) Transaction-related costs(5) Non-GAAP operating expenses GAAP loss from operations Non-GAAP adjustments: Stock-based compensation(¹) and amortization of warrant Compensation realignment costs(2) Amortization of acquired intangible assets(3) Restructuring(4) Transaction-related costs(5) Non-GAAP loss from operations GAAP net loss Non-GAAP adjustments: Stock-based compensation (¹) and amortization of warrant Compensation realignment costs(2) Amortization of acquired intangible assets(3) Restructuring(4) Transaction-related costs(5) Foreign currency gains and losses(6) Income tax benefit(7) Non-GAAP net loss $ $ S S S $ Three Months Ended March 31, 2023 2022 77,289 $ 15,904 1,096 12,783 438 47,068 (61,436) $ 16,392 1,096 $ 12,783 438 (30,727) $ (66,194) $ 16,392 1,096 12,783 438 (134) (35,619) $ 98,617 23,843 4,068 1,812 68,894 (69,748) 24,336 4,068 1,812 (39,532) (72,418) 24,336 4,068 1,812 (2,864) (45,066) blend 18#19Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) GAAP net loss per share Non-GAAP adjustments: Net loss attributable to noncontrolling interest(8) Accretion of redeemable noncontrolling interest to redemption value (8) Stock-based compensation(¹) and amortization of warrant Compensation realignment costs(2) Amortization of acquired intangible assets(3) Restructuring(4) Transaction-related costs(5) Foreign currency gains and losses(6) Income tax benefit(7) Non-GAAP net loss per share (1) Stock-based compensation by function: Cost of revenue Research and development Sales and marketing General and administrative Total $ $ Three Months Ended March 31, 2023 2022 (0.28) S 0.01 0.07 0.05 (0.15) $ 488 $ 8,131 2,783 4,990 16,392 S (0.32) 0.10 0.02 0.01 (0.01) (0.20) 493 9,866 2,523 11,430 24,312 $ (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) 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. (5) Transaction-related costs include non-recurring due diligence, consulting, and integration costs recorded within general and administrative expense. (6) Foreign currency gains and losses include transaction gains and losses incurred in connection with our operations in India. (7) 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. (8) 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. blend 19#20Sharecount Outlook (in thousands) Estimated weighted average shares used in calculating net loss per share (basic and diluted) Estimated outstanding common shares as of period-end Weighted average shares used in calculating net loss per share (basic and diluted) Dilutive securities (¹) 13,229 (1) Dilutive securities represent the number of potential common shares that would have been included in the computation of earnings per share if the Company had reported net income for the quarter ended March 31, 2023. Since the Company reported net loss for the quarter ended March 31, 2023, all outstanding potential common shares are antidilutive. Quarter ended June 30, 2023 244,256 Quarter ended March 31, 2023 245,671 241,444 Year ended December 31, 2023 245,435 250,633 blend 20#21Key Business Metrics - Volume Disaggregation (in thousands) Q1 2022 380 Mortgage banking transactions *Includes estimated transactions from funded loan reports not yet received in Q1 2023 Title closed orders Q1 2022 27 Q2 2022 Q2 2022 348 14 Q3 2022 292 Q3 2022 11 Q4 2022 212 Q4 2022 6 FY 2022 1,232 FY 2022 58 Q1 2023* 182 Q1 2023 4 blend 21#22Footnotes Note 1: Market Share is management's calculation of Blend's mortgage market share for the specified period based on funded loan volumes from signed customers. Funded volume is calculated as (i) the number of mortgage banking funded loans processed on the Blend Platform in the period (actual reported funded loans in the period plus an estimate of unreported funded loans for the current quarter), divided by (ii) total mortgage market volume in the same period as calculated by using Mortgage Bankers Association data. Mortgage market volumes are updated periodically by management based on updates from the Mortgage Bankers Association, who may provide further revisions to historical data from time to time. Note 2: Gross Revenue Retention measures revenue lost from our customer base, not including any benefits from expansion revenue or price increases. Gross retention for a quarter is calculated from total revenue from the same quarter in the prior year (excluding expansion and price increases) less revenue from customers that have churned in the last 12 months divided by the revenue from the same quarter in the prior year. Note 3: Consumer Banking Suite Revenues consist of home equity, personal lending, credit cards, deposit accounts, auto finance, and other banking products, but excludes software-enabled title. Note 4: Mortgage Suite Revenues consist of Mortgage revenue, Mortgage add-on revenue from Blend Income Verification, Blend Close, and Marketplace revenue from Blend Insurance and Blend Realty. Note 5: Mortgage Suite Revenue per Funded Loan consist of Mortgage Suite revenue for the given period, divided by the number of funded loans from signed customers in that same period. The number of funded loans ("Mortgage banking transactions") can be found in the appendix of this presentation. blend