Blend Labs stock soars as Q1 earnings reflect its growing share of mortgage banking market

May 13, 2022 1:03 PM ETBlend Labs, Inc. (BLND)By: Max Gottlich, SA News Editor

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Blend Labs (NYSE:BLND) shares are surging 23% in Friday afternoon trading after the company's Q1 earnings highlighted its growing share of the mortgage banking market, said Nima Ghamsari, Head of the fintech.

Still, in a backdrop of climbing interest rates, and therefore borrowing costs, "we are now anticipating a more pronounced decline of approximately 41% in 2022 mortgage origination volumes against 2021, compared to a 35% decline predicted at the end of March," Ghamsari noted.

Meanwhile, revenue of $71.5M as of March 31 topped the average analyst estimate of $61.94M and more-than-doubled from $31.9M as of March 31, 2021.

Its Mortgage Banking segment, which accounted for 75% of the company's total revenue, slipped to $24.5M in Q1 from $26.44M in Q1 2021.

Gross profit of $28.87M in Q1 rose from $21.02M in the year-ago period.

Net loss was $72.42M in the first quarter compared with -$27.07M in Q1 a year ago.

Blend Labs' (BLND) intraday upswing comes as fintechs more broadly catch a bid amid a risk-on day.

Take a look at Blend Labs' Q1 earnings call transcript and presentation.

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