2023 Q4 Form 10-K Financial Statement

#000185574724000015 Filed on March 14, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023 2022
Revenue $36.10M $156.8M $235.2M
YoY Change -15.62% -33.31% 0.3%
Cost Of Revenue $16.38M $75.71M $145.6M
YoY Change -42.29% -47.98% 22.82%
Gross Profit $19.73M $81.14M $89.65M
YoY Change 36.92% -9.5% -22.71%
Gross Profit Margin 54.64% 51.73% 38.12%
Selling, General & Admin $26.48M $130.8M $224.4M
YoY Change -50.37% -41.69% 5.4%
% of Gross Profit 134.25% 161.23% 250.27%
Research & Development $14.42M $81.59M $138.1M
YoY Change -56.64% -40.92% 49.75%
% of Gross Profit 73.09% 100.56% 154.04%
Depreciation & Amortization $608.0K $2.464M $10.77M
YoY Change -0.82% -77.11% 1.5%
% of Gross Profit 3.08% 3.04% 12.01%
Operating Expenses $40.90M $212.4M $835.8M
YoY Change -52.78% -74.59% 166.84%
Operating Profit -$21.17M -$131.3M -$746.2M
YoY Change -70.67% -82.41% 278.31%
Interest Expense -$7.085M -$30.81M $24.79M
YoY Change -3.58% -224.29% 119.79%
% of Operating Profit
Other Income/Expense, Net -$1.498M $7.248M $4.916M
YoY Change -197.4% 47.44% 897.16%
Pretax Income -$30.45M -$179.8M -$766.1M
YoY Change -62.39% -76.53% 268.24%
Income Tax -$74.00K $94.00K -$2.241M
% Of Pretax Income
Net Earnings -$31.81M -$185.3M -$720.2M
YoY Change -61.54% -74.27% 323.85%
Net Earnings / Revenue -88.11% -118.15% -306.19%
Basic Earnings Per Share -$0.76 -$3.28
Diluted Earnings Per Share -$0.13 -$0.76 -$3.28
COMMON SHARES
Basic Shares Outstanding 245.2M shares 234.2M shares
Diluted Shares Outstanding 245.2M shares 234.2M shares

Balance Sheet

Concept 2023 Q4 2023 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $136.9M $136.9M $354.1M
YoY Change -61.34% -61.34% -35.28%
Cash & Equivalents $31.00M
Short-Term Investments $106.0M $106.0M $229.9M
Other Short-Term Assets $12.98M $12.98M $17.98M
YoY Change 463.68% -27.83% -31.78%
Inventory
Prepaid Expenses
Receivables $19.94M $19.94M $23.97M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $169.8M $169.8M $396.1M
YoY Change -57.12% -57.12% -35.39%
LONG-TERM ASSETS
Property, Plant & Equipment $12.51M $12.51M $17.41M
YoY Change 117.87% -28.14% -16.57%
Goodwill
YoY Change
Intangibles $2.108M
YoY Change -0.89%
Long-Term Investments $5.400M
YoY Change 0.0%
Other Assets $21.61M $21.61M $17.13M
YoY Change 114.35% 26.15% 7.99%
Total Long-Term Assets $36.23M $36.23M $36.67M
YoY Change -1.2% -1.2% -92.66%
TOTAL ASSETS
Total Short-Term Assets $169.8M $169.8M $396.1M
Total Long-Term Assets $36.23M $36.23M $36.67M
Total Assets $206.1M $206.1M $432.8M
YoY Change -52.38% -52.38% -61.1%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.170M $2.170M $1.260M
YoY Change 72.22% 72.22% -79.55%
Accrued Expenses $18.76M $18.76M $23.73M
YoY Change 514.72% -20.97% -39.2%
Deferred Revenue $8.984M
YoY Change 3.32%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $31.57M $31.57M $35.47M
YoY Change -10.99% -10.99% -40.91%
LONG-TERM LIABILITIES
Long-Term Debt $138.3M $138.3M $216.8M
YoY Change -36.19% -36.19% 1.38%
Other Long-Term Liabilities $9.210M $9.210M $16.57M
YoY Change 68.13% -44.41% -34.14%
Total Long-Term Liabilities $147.5M $147.5M $233.4M
YoY Change 2593.39% -36.78% -2.36%
TOTAL LIABILITIES
Total Short-Term Liabilities $31.57M $31.57M $35.47M
Total Long-Term Liabilities $147.5M $147.5M $233.4M
Total Liabilities $225.3M $225.3M $309.6M
YoY Change -16.19% -27.22% -8.36%
SHAREHOLDERS EQUITY
Retained Earnings -$1.342B
YoY Change 15.37%
Common Stock $2.000K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$19.24M -$19.24M $123.2M
YoY Change
Total Liabilities & Shareholders Equity $206.1M $206.1M $432.8M
YoY Change -52.38% -52.38% -61.1%

Cashflow Statement

Concept 2023 Q4 2023 2022
OPERATING ACTIVITIES
Net Income -$31.81M -$185.3M -$720.2M
YoY Change -61.54% -74.27% 323.85%
Depreciation, Depletion And Amortization $608.0K $2.464M $10.77M
YoY Change -0.82% -77.11% 1.5%
Cash From Operating Activities -$20.69M -$127.6M -$190.4M
YoY Change -56.29% -32.98% 49.34%
INVESTING ACTIVITIES
Capital Expenditures $82.00K $587.0K $2.068M
YoY Change -82.1% -71.62% 19.26%
Acquisitions $0.00 $0.00
YoY Change -100.0%
Other Investing Activities $53.32M $127.9M $101.5M
YoY Change -7.82% 26.0% -116.06%
Cash From Investing Activities $53.24M $127.3M $99.43M
YoY Change -7.23% 28.03% -115.69%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $248.0K $268.0K
YoY Change
Debt Paid & Issued, Net $85.06M $0.00
YoY Change
Cash From Financing Activities -86.12M -90.96M $2.220M
YoY Change -210151.22% -4197.21% -99.76%
NET CHANGE
Cash From Operating Activities -20.69M -127.6M -$190.4M
Cash From Investing Activities 53.24M 127.3M $99.43M
Cash From Financing Activities -86.12M -90.96M $2.220M
Net Change In Cash -53.58M -91.27M -$88.88M
YoY Change -630.71% 2.69% -151.63%
FREE CASH FLOW
Cash From Operating Activities -$20.69M -$127.6M -$190.4M
Capital Expenditures $82.00K $587.0K $2.068M
Free Cash Flow -$20.77M -$128.2M -$192.5M
YoY Change -56.53% -33.39% 48.94%

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CY2021 blnd Deferred Offering Costs Incurred But Not Yet Paid
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CY2023 blnd Vesting Of Early Exercised Stock Options
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CY2022 blnd Vesting Of Early Exercised Stock Options
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CY2022 blnd Warrants Issued
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CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2023 us-gaap Prior Period Reclassification Adjustment Description
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<div style="margin-top:3pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Changes in Financial Statement Presentation, Revenue Disaggregation and Segment Composition</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In 2023, the Company changed the presentation of revenue and cost of revenue on the consolidated statements of operations and comprehensive income (loss), by disaggregating each caption into the categories of software platform, professional services, and title, in order to provide the financial statement users with greater visibility into the composition of these accounts.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In 2023, the Company changed its reporting segments to align with how the Company’s Chief Operating Decision Maker (“CODM”) reviews financial information in order to allocate resources and assess performance. As the result of this change, the Company’s digitally-enabled title component (previously referred to as “software-enabled” title component) was reclassified from the Blend Platform segment to Title segment (previously referred to as “Title365” segment).</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In 2023, the Company changed the presentation of its disaggregated revenue within the notes to the consolidated financial statements, to align with the change in how the Company’s CODM reviews financial information. This change was driven by the introduction of Composable Origination, which gives customers the ability to build custom solutions using the Blend Builder Platform (a software platform within the Blend Platform segment), or configure workflows with pre-built solutions such as Instant Home Equity, Deposit Accounts, Credit Cards, and others. Within the new disaggregation, Mortgage Suite revenue represents revenue related to mortgage transactions processed through the Company’s software platform, ancillary product revenue related to mortgage transactions, and marketplace revenue (property and casualty insurance). Consumer Banking Suite revenue represents revenue related to the Company’s consumer banking products including personal loans, credit cards, deposit accounts, and home equity, including ancillary product revenue related to consumer banking transactions. Professional Services revenue represents revenue related to the deployment of the Company’s software platform, client support and consulting services. Title revenue represents revenue related to title (traditional and digitally-enabled), escrow and other closing and settlement services provided by the Title segment.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Prior period amounts have been reclassified to conform to current period presentation.</span></div>
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the amounts reported in the consolidated financial statements and the notes thereto. Actual results may differ from those estimates. Such estimates include, but are not limited to, estimates of variable </span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">consideration, evaluation of contingencies, determination of the incremental borrowing rates used in calculations of lease liabilities, determination of fair value of stock-based compensation, determination of fair value of marketable securities, determination of fair value of warrants, determination of fair value of long-term debt, valuation of deferred tax assets, valuation of acquired intangible assets, valuation of the redeemable noncontrolling interest, determination of useful lives of tangible and intangible assets, assessment of impairment of goodwill and intangible assets, and the valuation of equity securities without readily determinable fair value.</span></div>
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0.55
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<div style="margin-top:18pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentrations of Credit Risk and Significant Customers</span></div><div style="margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable securities, and trade accounts receivable. The Company maintains its cash equivalents primarily in money market funds and highly liquid investments that are issued or guaranteed by the United States government or its agencies. As of December 31, 2023, cash and cash equivalents of $31.0 million include $1.9 million of cash in a foreign jurisdiction. Collateral is not required for trade accounts receivable. </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Title365 has agreements with insurance underwriters authorizing the Company to issue title insurance policies on behalf of the insurance underwriters. During the year ended December 31, 2023, the policies were underwritten by two title insurance companies, which accounted for approximately 67% and 33%, respectively, of title policy fees earned during the period. During the year ended December 31, 2022, the policies were underwritten by two title insurance companies, which accounted for approximately 57% and 43%, respectively, of title policy fees earned during the period.</span></div>
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229948000 usd
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CY2023Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer Number Of Positions
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CY2023Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer
DebtSecuritiesAvailableForSaleContinuousUnrealizedLossPosition12MonthsOrLonger
16000000 usd
CY2022Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer Number Of Positions
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CY2023 us-gaap Amortization Of Intangible Assets
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CY2022Q4 us-gaap Contract With Customer Asset Net Current
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CY2022Q4 us-gaap Capitalized Contract Cost Net Current
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3518000 usd
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CY2022Q4 us-gaap Prepaid Insurance
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