#13 blend Blend Labs, Inc. Q2 2023 Earnings Supplemental Slides AUGUST 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 Reports on Form 10-Q for the quarters ended March 31, 2023, and June 30, 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 gross margin %, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP basic net loss per share, 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#3Second Quarter 2023 Highlights Revenue of $42.8 million exceeded guidance - driven by Blend customer performance Platform gross profit grew 9% versus the prior year as Blend launches new features to our customers and improves delivery efficiency Halved its non-GAAP operating loss two quarters ahead of guidance and outperformed Q2 guidance by over 25% as Blend accelerates on its path to profitability blend#4Blend's Continued Progress in a Challenging Market Consumer Banking Suite* Revenue $6.0M $4.0M $2.0M $0.0 $3.9M Q1 2022 $4.6M Q2 2022 27% YoY increase $5.2M $5.8M Q1 2023 Q2 2023 *See Note 1 included in Appendix Mortgage Suite* Revenue $30.0M $20.0M $10.0M $0.0 $26.8M Q1 2022 Down 17% YoY despite an estimated 37% decline in industry-wide mortgage loan origination volumes $27.0M Q2 2022 $17.8M $22.3M Q1 2023 Q2 2023 * See Note 2 included in Appendix blend#5Mortgage Suite revenue per transaction* Blend customers continue to go live with Mortgage Suite add-ons, growing Blend's revenue per transaction $100 $80 $60 $40 $20 $0 * See Note 3 included in Appendix $71 Q1 2022 $77 Q2 2022 $78 Q3 2022 $85 Q4 2022 $98 Q1 2023 $93 Q2 2023 blend#6Executing on the road to profitability 80% 60% 40% 20% 0% Software Gross Margins Non-GAAP 72% Q1 2022 73% Q2 2022 75% Q1 2023 81% Q2 2023 Total Blend Gross Margins Non-GAAP 41% Q1 2022 39% Q2 2022 44% Q1 2023 55% Q2 2023 blend#7Reductions 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 $22.8 Q1 2022 Q2 2022 $17.1 $16.0 Q1 2023 Q2 2023 Sales & Marketing Non-GAAP $19.7 $18.8 Q1 2022 Q2 2022 $14.7 $13.8 Q1 2023 Q2 2023 General & Administrative Non-GAAP $24.1 Q1 2022 $23.6 Q2 2023 $15.2 Q1 2023 $11.8 Q2 2023 blend#8Q3 2023 Guidance Blend guidance reflects the following: Continued execution by Blend in a marketplace characterized by economic uncertainty. Blend expects to outperform the forecasted decline in mortgage market volumes. Non-GAAP Net Operating Loss includes impact from actions taken in August. Blend Platform Revenue Title Revenue Blend Labs Consolidated Revenue Blend Labs Consolidated Non-GAAP Net Operating Loss Between $27M and $30M Between $11M and $12M Between $38M and $42M Between ($17.5M) and ($15.5M) blend#93 blend Appendix ©Blend 2023#10Revenue Disaggregation (in thousands) Blend Platform revenue: Mortgage Suite Consumer Banking Suite Total Software revenue Professional Services Total Blend Platform revenue Title revenue: Traditional Digitally-enabled Total Title revenue Total revenue $ $ Three Months Ended June 30, 2023 2022 22,271 5,844 28,115 2,216 30,331 74% $ 19% 93 % 7% 100 % 9,313 75 % 3,171 25% 12,484 100 % 42,815 $ 26,976 4,604 31,580 2,021 33,601 31,861 77 31,938 65,539 80% 14% 94% 6% 100 % 100 % % 100 % YoY change (17)% $ 27% (11)% 10 % (10)% (71)% 4018 % (61)% (35)% S Six Months Ended June 30, 2023 2022 40,066 11,019 51,085 3,950 55,035 100% 73 % $ 20% 93 % 7% 18,791 6,325 25,116 80,151 75 % 25% 100 % $ 53,729 8,455 62,184 3,993 66,177 70,592 294 70,886 137,063 81% 13% 94% 6% 100 % 100 % % 100 % YoY change (25)% 30 % (18)% (1)% (17)% (73)% 2051 % (65)% (42)% blend 10#11Q2 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 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 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 June 30, 2023 2022 28,115 $ 2,216 12,484 42,815 5,486 2,705 11,131 19,322 23,493 22,091 16,128 19,646 2,349 60,214 (36,721) (7,947) 3,232 (41,436) (53) (41,489) 258 (41,231) (1,592) (42,823) $ 31,580 $ 2,021 31,938 65,539 8,676 4,552 27,046 40,274 25,265 35,500 22,438 36,472 4,068 391,823 6,380 496,681 (471,416) (5,726) 6 (477,136) (66) (477,202) 35,831 (441,371) (37,008) (478,379) $ Six Months Ended June 30, 2023 2022 51,085 $ 3,950 25,116 80,151 11,289 5,511 24,005 40,805 39,346 48,348 33,696 40,327 15, 132 137,503 (98,157) (15,516) 6,114 (107,559) (124) (107,683) 1,035 (106,648) (3,648) (110,296) $ 62,184 3,993 70,886 137,063 17,342 8,287 57,300 82,929 54,134 70,606 44,779 73,574 8,136 391,823 6,380 595,298 (541,164) (11,284) 97 (552,351) 2,731 (549,620) 36,145 (513,475) (38,450) (551,925) blend 11#12Q2 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 June 30, 2023 2022 (0.18) $ 244,262 (2.06) $ 232,501 Six Months Ended June 30, 2023 2022 (0.45) $ 242,861 (2.38) 231,421 blend 12#13Reconciliation 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 $ $ $ $ GAAP Gross Profit 22,140 1,353 23,493 22,629 80% $ (489) (22)% 73 % 11% 55 % $ GAAP Three Months Ended June 30, 2023 Non-GAAP adjustments (¹) Gross Profit Gross Margin Gross Margin 9 253 262 2 264 39,796 78% S (1,561) (40)% 38,235 69% 1,111 4% 49% $ 39,346 Six Months Ended June 30, 2023 Non-GAAP adjustments (¹) $ $ 593 615 137 752 22 $ $ Non-GAAP Gross Profit 22,638 (236) 22,402 1,355 23,757 Gross Margin Non-GAAP Gross Profit 81% $ (11)% 74 % 11% 55% $ Gross Margin 39,818 (968) (25)% 38,850 1,248 40,098 78% $ 71% 5% 50% $ GAAP Gross Profit 22,904 (2,531) 20,373 4,892 25,265 GAAP Three Months Ended June 30, 2022 Non-GAAP adjustments (¹) Gross Profit 44,842 (4,294) 40,548 13,586 54,134 Gross Margin 73 % $ (125)% 61% 15 % 39 % $ Gross Margin 16 $ 227 243 307 550 Six Months Ended June 30, 2022 Non-GAAP adjustments (¹) 72% $ (108)% 61% 19% 39% $ 16 $ 539 555 488 1,043 $ Non-GAAP Gross Profit 22,920 (2,304) 20,616 5,199 25,815 Non-GAAP Gross Profit Gross Margin 44,858 (3,755) 41,103 14,074 55,177 73% (114)% 61% 16 % 39 % Gross Margin 72 % (94)% 62% 20% 40 % blend 13#14Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) GAAP operating expenses Non-GAAP adjustments: Stock-based compensation and amortization of warrant Compensation realignment costs (²) Amortization of acquired intangible assets (3) Impairment of intangible assets and goodwill(4) Restructuring (5) Litigation contingencies) Transaction-related costs (7) Non-GAAP operating expenses GAAP loss from operations Non-GAAP adjustments: Stock-based compensation and amortization of warrant Compensation realignment costs(²) Amortization of acquired intangible assets(3) Impairment of intangible assets and goodwill(4) Restructuring (5) Litigation contingencies) Transaction-related costs(7) Non-GAAP loss from operations GAAP net loss Non-GAAP adjustments: Stock-based compensation and amortization of warrant (1) Compensation realignment costs(2) Amortization of acquired intangible assets(3) Impairment of intangible assets and goodwill(4) Restructuring (5) Litigation contingencies(6) Transaction-related costs (7) Foreign currency gains and losses (8) Income tax benefit(9) Non-GAAP net loss S $ $ S S S Three Months Ended June 30, 2023 2022 60,214 $ 14,100 1,778 2,349 (245) 596 41,636 $ (36,721) S 14,364 1,778 2,349 (245) 596 (17,879) S (41,489) S 14,364 1,778 2,349 (245) 596 (23) (22,670) S 496,681 $ 28,698 4,068 391,823 6,380 411 65,301 (471,416) $ 29,248 4,068 391,823 6,380 411 (39,486) $ $ (477,202) $ 29,248 4,068 391,823 6,380 411 181 (45,091) $ Six Months Ended June 30, 2022 2023 137,503 $ 30,004 2,874 15,132 (245) 1,034 88,704 $ (98,157) S 30,756 2,874 15,132 (245) 1,034 (48,606) S (107,683) S 30,756 2,874 15,132 (245) 1,034 (157) (58,289) $ 595,298 52,541 8.136 391,823 6,380 2,224 134,194 (541,164) 53,584 8,136 391,823 6,380 2,224 (79,017) (549,620) 53,584 8,136 391,823 6,380 2,224 227 (2,864) (90,110) blend 14#15Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) GAAP basic net loss per share Non-GAAP adjustments: Net loss attributable to noncontrolling interest (10) Accretion of redeemable noncontrolling interest to redemption value (10) Stock-based compensation and amortization of warrant Compensation realignment costs (2) Amortization of acquired intangible assets(3³) Impairment of intangible assets and goodwill(4) Restructuring (5) Litigation contingencies(6) Transaction-related costs(7) Foreign currency gains and losses (8) Income tax benefit Non-GAAP basic 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 June 30, 2022 2023 (0.18) $ 0.01 0.06 0.01 0.01 (0.09) 264 $ 4,829 1,931 7,340 14,364 $ (2.06) $ (0.15) 0.16 0.12 0.02 1.69 0.03 (0.19) $ 550 S 12.516 3,179 13,003 29,248 S Six Months Ended June 30, 2023 2022 (0.45) S - 0.01 0.13 0.01 0.06 (0.24) $ 752 12,960 4,714 12.330 30,756 $ S (2.38) (0.16) 0.17 0.22 0.04 1.69 0.03 0.01 (0.01) (0.39) 1,043 22,382 5,702 24,433 53,560 $ (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) Foreign currency gains and losses include transaction gains and losses incurred in connection with our operations in India. (9) 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. (10) 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 15#16Sharecount Outlook (in thousands) 3 Months ended June 30, 2023 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) ities(1) 1,327 1,859 Dilutive securities (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 June 30, 2023. Since the Company reported net loss for the quarter ended June 30, 2023, all outstanding potential common shares are antidilutive. 244,262 Quarter ended September 30, 2023 246,800 6 Months ended June 30, 2023 248,592 242,861 Year ended December 31, 2023 245,593 251,684 blend 16#17Key Business Metrics - Transaction Volume (in thousands) Title closed orders Q1 2022 Mortgage banking transactions 380 348 *Includes estimated transactions from funded loan reports not yet received in Q2 2023 Q1 2022 Q2 2022 27 Q2 2022 Q3 2022 14 292 Q3 2022 11 Q4 2022 212 Q4 2022 6 FY 2022 1,232 FY 2022 58 Q1 2023 181 Q1 2023 4 Q2 2023* 239 Q2 2023 5 blend 17#18Footnotes Note 1: 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 2: 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 3: Mortgage Suite Revenue per Transaction consist of Mortgage Suite revenue for the given period, divided by the number of funded loans from signed Mortgage customers in that same period. The number of funded loans ("Mortgage banking transactions") can be found in the appendix of this presentation. blend