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Double-digit growth in its consumer banking business in 2024 helped cloud banking software provider Blend Labs Inc. weather a decline in revenue from its biggest line of business — mortgage — and continue to inch toward profitability.
The San Francisco-based software developer trimmed its loss from operations for the final three months of 2024 to $1.8 million, with revenue up 15 percent from a year go to $41.4 million.
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Blend had previously trimmed its $19.2 million Q2 2024 net loss to $2.6 million in Q3, thanks in part to a 32 percent reduction in operating expenses, to $39.3 million.
For the full year, Blend posted a $49.6 million loss from operations, down from $156.2 million in 2023, as the company generated $162 million in 2024 revenue, a 3 percent increase from the year before.
In a press release, Blend CEO Nima Ghamsari called 2024 “a pivotal year,” as the company “made significant strides in simplifying Blend and sharpening our focus on a pure software model. We expanded high margin partnerships in homeowners insurance and income verification, and are now finalizing a similar approach in title insurance.”
Most of Blend’s revenue ($73.3 million) came from its mortgage software suite, which fell 6 percent in 2024. A 42 percent increase in consumer banking suite revenue, to $33.7 million, more than made up the difference. At $46.3 million, revenue from Blend’s title segment was down $1 million from 2023.
While consumer banking was Blend’s fastest growing business in 2024, the company is looking to jump-start its mortgage segment, which grew revenue by 6 percent in Q4, to $18.2 million.
Blend signed multi-year mortgage and home equity deals with PHH Mortgage and a top 10 U.S. bank during Q4, and also began providing its home equity lending solutions to two more top 10 U.S. banks.
This week Blend announced the launch of Rapid Home Lending, a suite of software solutions purpose-built for refinance and home equity lending.
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