#1blend Blend Labs, Inc. Q1 2022 Earnings Supplemental Slides May 12, 2022#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, competitive positions, 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, Blend's expectations for revenue growth, and Blend's expectations of migration of the Title365 legacy business to Blend's software-enabled platform. 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 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 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 investo 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. 2 blend#3First Quarter 2022 Highlights Achieved 3% annual growth in our Platform revenues, despite an estimated 44% mortgage market volume decline from Q1 2021 55% growth in Consumer Banking and Marketplace revenues versus Q1 2021 More than 100,000 additional Consumer Banking transactions* versus Q1 2021 See Note 4 included in Appendix#4Building and Capturing Mortgage Market Share While Blend has already captured significant mortgage transaction volume and market share, we believe substantial upside exists in the market and at our current customers Market Share 30% 25% 20% 15% 10% 5% 0% Blend signed untapped mortgage market share 13.8% 9.3% 4.5% 2019 H1 See Note 1 included in Appendix 14.3% 8.6% 5.7% 2019 H2 16.1% 8.2% 7.9% 2020 H1 Blend utilized mortgage market share 16.7% 6.9% 9.8% 2020 H2 23.5% 10.1% 13.5% 2021 H1 24.9% 9.7% 15.2% 2021 H2 Near term growth opportunity 4#5We Grow with Our Customers Gross Revenue Retention 97% Q2'20 98% 99% 100% 100% 99% 99% 98% 11 Q3'20 Q4'20 Q1'21 See Note 2 and Note 3 included in Appendix Q2'21 Q3'21 Q4'21 Q1'22 Market Adjusted Net Revenue Retention 157% 162% Q2'20 Q3'20 168% 181% Q4'20 Q1'21 159% 149% 147% 159% Q2'21 Q3'21 Q4'21 Q1'22 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 as personal lending, auto finance, deposit accounts, and home equity Consumer Banking Transactions* 150K 100K 50K OK 48K Q1 2021 76K Q2 2021 84K Q3 2021 118K Q4 2021 155K Q1 2022 See Note 4 included in the Appendix. 1Q22 includes estimated transactions not yet reported by our customers. 4Q21 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. 6#7Strong Revenue Performance in Blend Platform Segment Blend Mortgage Consumer Banking and Marketplace 10M 5M 0 $4.6M Q1 2021 Consumer Banking and Marketplace revenue up 55% year-over-year, driven by increases in revenue from Blend Close, personal loans, and homeowners' insurance. $5.6M Q2 2021 See Note 5 included in Appendix $6.6M Q3 2021 55% YoY increase $6.3M $7.2M Q4 2021 Q1 2022 $30M $25M $20M $15M $10M $5M 0 -7% YoY decrease $26.4M Mortgage Banking revenue down 7% year-over-year, reflecting an estimated first quarter 2022 industry-wide decline of approximately 44% in mortgage loan origination volumes Q1 2021 $25.4M Q2 2021 $27.3M Q3 2021 $29.1M Q4 2021 $24.5M Q1 2022 7#8Reaffirming Full Year 2022 Revenue Guidance Blend Platform 8 $140-150 Blend 2022 revenue guidance reflects the following: Title365 $90-100 $ in millions (Consolidated) Blend Labs, Inc. $230-250 Continued U.S. economic growth and Federal Reserve interest rate and open market policy actions in the context of current market expectations. U.S. mortgage market origination volumes declining approximately 41% from their 2021 level, as forecasted using information from Fannie Mae and the Mortgage Bankers Association. Mortgage Banking outlook incorporates high-single to low-double digit declines in full year revenue from full year 2021 levels, as expected market share growth mitigates industry volume declines. 2022 Blend Platform segment revenue reflects over 100% annual growth in Consumer Banking and Marketplace revenue. blend#9Appendix B VJ blend#10Revenue Growth (in thousands) 10 Blend Platform revenue: Mortgage Banking Consumer Banking and Marketplace Professional Services Total Blend Platform revenue Title365 revenue Total revenue $ $ Three Months Ended March 31, 2022 2021 24,484 7,187 1,122 32,793 38,731 71,524 75% $ 22% 3% 100 % $ 26,435 4,648 792 31,875 31,875 83% 15 % 2% 100% YoY change (7)% 55 % 42% 3 % 124 % blend#11Q1 2022 GAAP Financial Results (in thousands) 11 Revenue Cost of revenue Gross profit Operating expenses: Research and development Sales and marketing General and administrative Amortization of acquired intangible assets Total operating expenses Loss from operations Interest expense Other income (expense), net Loss before income taxes Income tax benefit (expense) 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 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 $ S Three Months Ended March 31, 2022 2021 71,524 $ 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) $ (0.32) $ 230,329 31,875 10,860 21,015 17,074 15,865 15,283 48,222 (27,207) 150 (27,057) (10) (27,067) (27,067) (27,067) (0.60) 45,090 blend#12Reconciliation of GAAP to Non-GAAP Measures (in thousands) Gross Profit Reconciliation Blend Platform Title365 Total 12 GAAP Gross Profit $ Three Months Ended March 31, 2022 Non-GAAP adjustments (¹) $ $ 18,591 10,278 28,869 $ 371 $ 122 493 $ Non-GAAP gross profit 18,962 10,400 29,362 GAAP Gross Non-GAAP Profit adjustments (¹) 58 21,015 $ $ Three Months Ended March 31, 2021 $ 21,015 $ $ 58 $ Non-GAAP gross profit 21,073 21,073 blend#13Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) 13 GAAP operating expenses Non-GAAP adjustments: Stock-based compensation and amortization of warrant Amortization of acquired intangible assets Acquisition-related expenses (²) Non-GAAP operating expenses GAAP loss from operations Non-GAAP adjustments: Stock-based compensation and amortization of warrant Amortization of acquired intangible assets Acquisition-related expenses(2) Non-GAAP loss from operations GAAP net loss Non-GAAP adjustments: Stock-based compensation and amortization of warrant Amortization of acquired intangible assets Acquisition-related expenses (2) Income tax benefit (3) Non-GAAP net loss (1) Stock-based compensation by function: Cost of revenue Research and development Sales and marketing General and administrative Total S $ S S $ $ $ Three Months Ended March 31, 2022 2021 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) 493 9,866 2,523 11,430 24,312 $ $ $ 48,222 $ 4,131 4,207 39,884 (27,207) 4,189 4,207 (18,811) (27,067) 4,189 4,207 (18,671) 58 1,386 1,373 1,199 4,016 $ (2) Amortization of acquired intangible assets represents non-cash amortization of customer relationships acquired in connection with the Title365 acquisition (3) Acquisition-related expenses include non-recurring due diligence, transaction and integration costs recorded within general and administrative expenses (4) 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#14Share count outlook (in thousands) 14 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, 2022. Since the Company reported net loss for the quarter ended March 31, 2022, all outstanding potential common shares are antidilutive. Estimated weighted average shares used in calculating net loss per share (basic and diluted) Quarter ended March 31, 2022 Estimated outstanding common shares as of period-end 230,329 Quarter ended June 30, 2022 233,197 235,260 Year ended December 31, 2022 235,580 243,459 blend#15Key Business Metrics - Volume Disaggregation (in thousands) Blend Platform banking transactions Mortgage banking transactions Consumer banking transactions*** Title365 closed orders Q1 2021 15 447 48 495 Q2 2021 461 76 537 Q1 2021 N/A Q3 2021 450 84 534 Total Blend Platform banking transactions *Includes estimated transactions from funded loan reports not yet received in Q1 2022 **The number of consumer banking transactions for Q4 2021 reflects 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 previously published estimate due to additional information being available to us. ***Consumer banking transaction counts exclude banking transactions from certain Enterprise License Agreements where those transaction counts are not available. Q2 2021 N/A Q4 2021** 454 118 572 Q3 2021 45 FY 2021 1,812 326 2,138 Q4 2021 35 Q1 2022* 376 155 531 FY 2021 80 Q1 2022 27 blend#16Blend Customer Logo Growth Customer Count 400 300 200 100 0 252 Q2'20 260 Q3'20 291 Q4'20 303 Q1'21 316 Q2'21 Quarter 333 Q3'21 343 Q4'21 351 Q1'22 16#17Footnotes Note 1: Market Share is management's estimate of Blend's mortgage market share based on signed customers, split between utilized and signed untapped volume, where "untapped volume" refers to volume at our current signed customers that Blend is not capturing today but is targeting to capture in the future. 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). 17 ● ● 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#18Footnotes 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 (Blend Title, Blend Insurance, and Blend Realty). 18 00 blend#19blend