Blend Labs, Inc. (NYSE:BLND) Q1 2024 Earnings Call Transcript

Amir Jafari: Thanks, Seth. On free cash flow, it’s a few fronts. It’s just really like, it’s the discipline of what we’ve been sharing in multiple quarters really coming to fruition. As you saw the update that we shared, obviously in Q4, in terms of our overall pipeline and execution, what you’re seeing come to fruition is the ability for us to execute against that. What it translates to is not as much discounting at all, that’s not the issue is we’re signing more and more customers that either have an element of their contract be what we consider platform centric, which leads to the ability to collect that annually. It has more and more customers that are coming to us and in essence being able to give larger commits than they gave historically that’s both due to the Blend Platform, but it’s also due to where they see the macro.

Bringing those two together just as small examples with what we’ve done internally to just be better aligned from a cost perspective, when you think about variable to fixed, it’s those types of motions and movements that are creating just our ability again to deliver on free cash flow.

Seth Gilbert: Got it. Thanks, guys. Actually one more if I may. I was just curious if you could give an update on the $50 million run rate in Consumer Banking. Saw a at least in line with our model. So good result for Consumer Banking and $50 million run rate. Just kind of curious as to how that’s progressing. And is there any risk to this given the macro? Thank you.

Nima Ghamsari: No, actually that was just existing signed customers. So I think if anything, I mean there’s always risk to anything of course, because there is a macro that we’re dealing with, then who knows, we had a pretty good sized bank almost go out of business last year and get acquired by another bank. So there’s always risks I guess. But if anything I think that there is – we should hopefully see that number continue to grow as we sign new customers. And so yes, we’re hard at work on that and we’re going to – we will try to keep people updated as we get material updates to that number and as the year progresses. But yes, we’re feeling like we’re on track right now.

Seth Gilbert: Got it. Thanks, Nima.

Bryan Michaleski: Seeing no further questions. This concludes today’s earnings call. Thank you all for joining. Have a nice rest of your day.