Why Blend Labs Shares Are Plunging After Hours

Blend Labs Inc BLND reported fourth-quarter revenue growth of 164.3% year-over-year to $80.99 million, missing the consensus of $82.92 million.
Blend Platform segment revenue was $36.5 million (+19% Y/Y), and Title365 segment revenue was $44.4 million.
EPS was $(0.32), missing the consensus of $(0.19).
The adjusted net loss was $(44.35) million, compared to $(13.86) million a year ago.
The gross profit margin contracted to 43.2% from 71.3% in 4Q20.
The loss from operation widened to $(59.86) million for the quarter, compared to $(15.98) million in the same quarter the prior year.
BLND’s net cash used in operating activities for FY21 totaled $127.5 million versus $65.01 million in FY20.
Total banking capacity was over 5.3 million in the quarter, up ~25% Y/Y.
At December 31, 2021, Blend Labs had cash, cash equivalents, and marketable securities of $547.2 million.
1Q21 Outlook: The company expects revenue of $63 million to $66 million versus a consensus of $76.17 million, reflecting a modest decline in Blend Platform segment revenues from their first quarter 2021 level and a decline of ~20% in the Title365 segment.
FY22 Outlook: BLND expects total revenue of $230 million-$250 million versus a consensus of $344.65 million.
BLND shares are down about 23.3% YTD.
Price Action: BLND shares are trading lower by 17.10% at $4.72 during the post-market session on Thursday.

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