#1blend Blend Labs, Inc. Q3 2022 Earnings Supplemental Slides November 10, 2022 1#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, macroeconomic and industry conditions, 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, 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, 2021, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, its Quarterly Report for the quarter ended June 30, 2022, and its Quarterly Report for the quarter ended September 30, 2022 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 2#3Third Quarter 2022 Highlights 3% year-over-year growth in Platform revenue, amidst an estimated 63% mortgage market volume decline Added 7 percentage points year-over-year in Blend's funded mortgage market share 132% year-over-year growth in Consumer Banking and Marketplace revenue 3#4Building and Capturing Mortgage Market Share While Blend has already captured significant mortgage transaction volume and market share, we believe upside exists in the market and within our current customers Market Share 30% 25% 20% 15% 10% 5% 0% Blend funded total market share 16.2% 9.7% 6.5% 2019 H2 See Note 1 included in Appendix 18.2% 9.3% 8.9% 2020 H1 17.1% 7.0% 10.1% 2020 H2 Blend untapped potential total market share 22.0% 9.6% 12.4% 2021 H1 23.8% 9.3% 14.5% 2021 H2 26.3% 6.7% 19.6% 2022 H1 Continued share gains 4#5We Grow with Our Customers Gross Revenue Retention* 99% 100% 100% 99% 99% 98% 99% 98% Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 * See Note 2 and Note 3 included in Appendix Q3'22 Market Adjusted Net Revenue Retention* 168% Q4'20 181% 159% Q1'21 Q2'21 149% 147% Q3'21 Q4'21 159% Q1'22 164% 190% Q2'22 Q3'22 LO 5#6Growing our Consumer Banking platform We continue to add new and existing customers to our Consumer Banking platform, expanding our presence in non-mortgage linked bank activities such home equity, personal lending, credit cards, deposit accounts and auto finance * See Note 4 included in Appendix. 3Q22 includes estimated transactions not yet reported by our customers. 2Q22 reflect actual transactions for funded loans reported by our customers and other transaction data available to us as of the date hereof. This number differs from the estimate previously published due to additional information being available to us. * See also Note 5 included in Appendix. The number of Consumer Banking transactions is not impacted by the migration of software-enabled title revenue from Title365 to Blend Platform. Consumer Banking Transactions* 200K 150K 100K 50K OK 83k Q3 2021 118k Q4 2021 175% YoY increase 159k Q1 2022 214k Q2 2022 229k Q3 2022 6#7Blend's Continued Progress in a Challenging Market Consumer Banking & Marketplace Consumer Banking and Marketplace revenue driven by increases in revenue from software-enabled title migration ($6.1M), home equity, personal loans, income verification, and homeowners' insurance. 132% YoY increase $15M $10M $5M 0 $6.6M $6.3M See Note 5 included in Appendix $7.2M $8.5M Q3 2021 Q4 2021 Q1 2022 Q2 2022 $15.3M Q3 2022 Blend Mortgage $30M $25M $20M $15M $10M $5M 0 27% YoY decrease $27.3M Mortgage Banking revenue down 27% year-over-year, amidst a 63% decline in mortgage loan origination volumes, compared to the same period last year. Q3 2021 $29.1M Q4 2021 $24.5M $23.9M Q1 2022 Q2 2022 $19.9M Q3 2022 7#8Narrowed FY 2022 Revenue Guidance Blend Platform $134-136 Blend 2022 revenue guidance reflects the following: Title365 $101-104 $ in millions (Consolidated) Blend Labs, Inc. $235-240 A narrower range for full year guidance U.S. mortgage market origination volumes declining approximately 56% from their full year 2021 level, declining further from 41% as of our Q2 update A higher sensitivity to the refinance share of total market Further Federal Reserve interest rate and open market policy actions in the context of current market expectations Strong annual growth for Blend's Consumer Banking and Marketplace revenue blend 8#9Appendix B VJ blend 9#10Revenue Growth (in thousands) Blend Platform revenue: Mortgage Banking Consumer Banking and Marketplace Professional Services Total Blend Platform revenue Title365 revenue Total revenue Blend Platform revenue: Mortgage Banking Consumer Banking and Marketplace Professional Services Total Blend Platform revenue Title365 revenue Total revenue $ S $ S Three Months Ended September 30, 2022 2021 19,920 55 % $ 15,265 865 42% 3% 36,050 100 % 19,303 55,353 68,297 31,003 3,221 102,521 89,895 192,416 $ Nine Months Ended September 30, 2022 2021 67% $ 30 % 3% 100 % 27,318 6,569 1,194 35,081 54,487 89,568 $ 79,131 16,799 3,088 99,018 54,487 153,505 78 % 19% 3% 100 % 80% 17% 3% 100 % YoY change (27)% 132 % (28)% 3% (65)% (38)% YoY change (14)% 85 % 4 % 4 % 65 % 25 % blend 10#11Q3 2022 GAAP Financial Results (in thousands) Revenue Cost of revenue Gross profit Operating expenses: Research and development Sales and marketing General and administrative Amortization of acquired intangible assets Impairment of intangible assets and goodwill 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 (income) 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 Net loss per share attributable to Blend Labs, Inc. common stockholders: Basic Diluted Weighted average shares used in calculating net loss per share: Basic Diluted $ Three Months Ended September 30, 2022 2021 55,353 $ 34,243 21,110 34,240 20,518 32,140 275 57,857 5,936 150,966 (129,856) (6,158) 3,281 (132,733) (14) (132,747) 6,619 (126,128) (7,847) (133,975) $ (0.57) $ (0.57) S 235,267 235,267 89,568 $ 49,241 40,327 25,518 21,957 59,024 4,364 110,863 (70,536) (5,615) 121 (76,030) (300) (76,330) (595) (76,925) (76,925) $ (0.38) $ (0.38) $ 200,176 200,176 Nine Months Ended September 30, 2022 2021 192,416 $ 117,172 75,244 104,846 65,297 105,714 8,411 449,680 12,316 746,264 (671,020) (17,442) 3,378 (685,084) 2,717 (682,367) 42,764 (639,603) (46,297) (685,900) $ (2.95) $ (2.95) $ 232,717 232,717 153,505 72,461 81,044 63,476 56,093 94,488 4,364 218,421 (137,377) (5,615) 383 (142,609) 44,978 (97,631) (595) (98,226) (98,226) (0.99) (0.99) 99,645 99,645 blend 11#12Reconciliation of GAAP to Non-GAAP Measures (in thousands) Gross Profit Reconciliation Blend Platform Title365 Total Gross Profit Reconciliation Blend Platform Title365 Total 12 S $ $ $ Three Months Ended September 30, 2022 GAAP Gross Profit 19,437 1,673 21,110 $ $ GAAP Gross Profit 56,976 18,268 75,244 $ Non-GAAP adjustments (1) $ Nine Months Ended September 30, 2022 313 139 452 $ Non-GAAP gross profit Non-GAAP adjustments (1) $ 1,000 495 1,495 Non-GAAP gross profit $ 19,750 $ 1,812 21,562 $ $ 57,976 $ 18,763 76,739 $ Three Months Ended September 30, 2021 GAAP Gross Profit 22,489 $ 17,838 40,327 $ GAAP Gross Profit $ Non-GAAP adjustments (1) Nine Months Ended September 30, 2021 63,206 17,838 81,044 $ Non-GAAP gross profit 208 S 38 246 S Non-GAAP adjustments (¹) 423 38 461 Non-GAAP gross profit $ 22,697 17,876 40,573 $ 63,629 17,876 81,505 blend 12#13Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) 13 GAAP operating expenses Non-GAAP adjustments: Stock-based compensation(¹) and amortization of warrant Amortization of acquired intangible assets(2) Impairment of intangible assets and goodwill (3) Restructuring (4) Acquisition-related expenses(5) Non-GAAP operating expenses GAAP loss from operations Non-GAAP adjustments: Stock-based compensation and amortization of warrant Amortization of acquired intangible assets(2) Impairment of intangible assets and goodwill (3) Restructuring(4) Acquisition-related expenses(5) Non-GAAP loss from operations GAAP net loss Non-GAAP adjustments: Stock-based compensation(¹) and amortization of warrant Amortization of acquired intangible assets(2) Impairment of intangible assets and goodwill (3) Restructuring(4) Acquisition-related expenses(5) Gain on investment in equity securities (9) Foreign currency gains and losses(6) Income tax benefit (7) Non-GAAP net loss $ $ $ $ Three Months Ended September 30, 2021 2022 150,966 $ 27,499 275 57,857 5,936 732 58,667 $ (129,856) $ 27,951 275 57,857 5,936 732 (37,105) $ (132,747) $ 27,951 275 57,857 5,936 732 (2,884) 122 (42,758) $ 110,863 43,216 4,364 1,573 61,710 43,462 4,364 (70,536) S $ $ 1,573 (21,137) S 43,462 4,364 (76,330) S 1,573 (26,931) $ Nine Months Ended September 30, 2022 2021 746,264 S 80,040 8,411 449,680 12,316 2,956 192,861 S (671,020) S 81,535 8,411 449,680 12,316 2,956 (116,122) S (682,367) $ 81,535 8,411 449,680 12,316 2,956 (2,884) 349 (2,864) (132,868) S 218,421 53,842 4,364 12,415 147,800 (137,377) 54,303 4,364 12,415 (66,295) (97,631) 54,303 4,364 12,415 (45,302) (71,851) blend 13#14Reconciliation of GAAP to Non-GAAP Measures (in thousands) GAAP net loss per share Non-GAAP adjustments: Net (loss) income attributable to noncontrolling interest(8) Accretion of redeemable noncontrolling interest to redemption value (8) Stock-based compensation(¹) and amortization of warrant Amortization of acquired intangible assets(2) Impairment of intangible assets and goodwill(3) Restructuring (4) Acquisition-related expenses (5) Gain on investment in equity securities (9) 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 September 30, 2022 2021 $ (0.57) $ (0.03) 0.03 0.11 0.25 0.03 (0.01) (0.19) $ 452 $ (cont.) 12,274 2,749 12,476 27,951 $ (0.38) $ 0.22 0.02 0.01 (0.13) $ 246 $ 3,685 1,836 37,657 43,424 S Nine Months Ended September 30, 2022 2021 (2.95) $ (0.18) 0.20 0.36 0.04 1.93 0.05 0.01 (0.01) (0.01) (0.56) $ 1,495 $ 34,656 8,451 36,909 81,511 $ (0.99) 0.01 0.55 0.04 (8) Net (loss) income 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. (9) 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. 0.12 (0.45) (0.72) 461 7,903 5,133 40,552 54,049 (2) Amortization of acquired intangible assets represents non-cash amortization of customer relationships acquired in connection with the Title365 acquisition. (3) 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. (4) The restructuring charges relate to the April Plan and the August Plan under which we eliminated approximately 200 and 140 positions, respectively, as part of our broader efforts to improve cost efficiency and better align our operating structure with our business activities. (5) Acquisition-related expenses include non-recurring due diligence, transaction and integration costs recorded within general and administrative expense. (6) Foreign currency gains and losses include transaction gains and losses incurred in connections 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. blend 14#15Share count outlook (in thousands) Weighted average shares used in calculating net loss per share (basic and diluted) Quarter ended September 30, 2022 Estimated weighted average shares used in calculating net loss per share (basic and diluted) Estimated outstanding common shares as of period-end 235,267 Dilutive securities(¹) 4,953 (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 September 30, 2022. Since the Company reported net loss for the quarter ended September 30, 2022, all outstanding potential common shares are antidilutive. Quarter ended December 31, 2022 238,777 Year ended December 31, 2022 233,542 241,093 blend 15#16Key Business Metrics - Volume Disaggregation (in thousands) Q1 2021 Q2 2021 Blend Platform banking transactions Mortgage banking transactions 447 461 Consumer banking transactions** 48 76 Total Blend Platform banking transactions 495 537 *Includes estimated transactions from funded loan reports not yet received in Q3 2022 **Consumer banking transaction counts exclude banking transactions from certain Enterprise License Agreements where those transaction counts are not available Q3 2021 450 84 534 Q2 2021 N/A Q4 2021 454 118 572 Q3 2021 45 Q4 2021 35 FY 2021 1,812 326 2,138 Q1 2022 380 160 540 Q2 2022 Q3 2022* 289 229 518 348 215 563 Q2 2022 Q3 2022*** Q1 2021 N/A FY 2021 80 Q1 2022 27 14 Title365 closed orders *** Excludes approximately 7,000 software-enabled title orders for the quarter ended September 30, 2022, for which revenue and cost of revenue is reported within the Blend Platform segment 4 blend 16#17Blend Customer Logo Count Customer Count 400 300 200 100 0 291 Q4'20 303 Q1'21 316 Q2'21 333 Q3'21 Quarter 343 Q4'21 351 Q1'22 354 Q2'22 350 Q3'22 17#18Footnotes Note 1: Market Share is management's estimate of Blend's mortgage market share for the specified period based on signed customers, split between funded volume and untapped volume. 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 (MBA) data. Untapped volume is calculated as (i) the estimated remaining number of loans at signed customers in the period that were not processed on the Blend Platform, divided by (ii) total mortgage market volume in the same period as calculated by using MBA data. Also note that mortgage market volumes are updated periodically by management based on updates from the Home Mortgage Disclosure Act data. 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: Market Adjusted Net Revenue Retention is the percentage of management's estimated Economic Value retained from our customer base in the current quarter compared to the Economic Value from the same quarter one year ago, adjusted for fluctuations in mortgage market volumes based on third-party estimates. Current period Economic Value is aggregated for all customers who had Economic Value one year prior. This number is then divided by the market adjusted Economic Value of the previous year. Economic Value is based on management's estimates and is defined as: Mortgage, close, realty, and title per funded contractual rate multiplied by the number of funded loans or transactions in the period, adjusted by the year over year market growth or decline rate, plus Net present value of insurance premiums sold in the period, including estimated renewals, adjusted by the year over year market growth or decline rate based on third-party estimates, plus Consumer banking per funded contractual rate multiplied by the number of funded loans in the period (note: not adjusted for market volume changes), plus Professional services and other revenues in the period (note: not adjusted for market volume changes). ● To take into account fluctuations in mortgage market volumes, management adjusts our net revenue retention (i) downward in quarters where market volumes are increasing relative to prior period market volumes and (ii) upward in quarters where market volumes are decreasing relative to prior period market volumes. blend 18#19Footnotes Note 4: Consumer Banking Transactions is calculated based on the transactions for funded loans reported by our customers and other transaction data available to us as of a particular date. The number of Consumer Banking Transactions for the latest quarter shown in this presentation includes estimated transactions not yet reported by our customers for such quarter. The prior quarter estimate has been updated to reflect actual transactions for funded loans reported by our customers and other transaction data available to us as of the date hereof, and may differ from the previously published estimate. Any updates (or "true-ups") to previously published estimates of Consumer Banking Transactions have no impact on previously reported revenue for the prior quarters. Note 5: Consumer Banking and Marketplace Revenues consist of Consumer Banking revenue (Home Equity and Personal Loans and all other consumer banking products), Ancillary Product revenue (Blend Income Verification and Blend Close), and Marketplace revenue (software-enabled title, Blend Insurance, and Blend Realty). blend 19