BLEND LABS, INC., 10-Q filed on 5/9/2023
Quarterly Report
v3.23.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2023
Apr. 28, 2023
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2023  
Document Transition Report false  
Entity File Number 001-40599  
Entity Registrant Name BLEND LABS, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 45-5211045  
Entity Address, Address Line One 415 Kearny Street  
Entity Address, City or Town San Francisco  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94108  
City Area Code 650  
Local Phone Number 550-4810  
Title of 12(b) Security Class A common stock, par value $0.00001 per share  
Trading Symbol BLND  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Shell Company false  
Document Fiscal Year Focus 2023  
Current Fiscal Year End Date --12-31  
Document Period Focus Q1  
Entity Central Index Key 0001855747  
Amendment Flag false  
Class A Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   233,299,618
Class B Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   10,551,351
Class C Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   0
v3.23.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 46,195 $ 124,199
Marketable securities 260,662 229,948
Trade and other receivables, net of allowance for credit losses of $296 and $436, respectively 19,894 22,718
Prepaid expenses and other current assets 23,405 19,231
Total current assets 350,156 396,096
Property and equipment, net 5,408 5,742
Operating lease right-of-use assets 11,055 11,668
Intangible assets, net 2,123 2,127
Deferred contract costs 1,474 1,691
Restricted cash, non-current 5,358 5,358
Other non-current assets 9,868 10,082
Total assets 385,442 432,764
Current liabilities:    
Accounts payable 1,932 1,260
Deferred revenue 13,046 8,695
Accrued compensation 11,035 10,059
Other current liabilities 13,906 15,459
Total current liabilities 39,919 35,473
Operating lease liabilities, non-current 10,236 11,091
Other non-current liabilities 4,407 5,478
Debt, non-current, net 217,506 216,801
Total liabilities 272,068 268,843
Commitments and contingencies (Note 8)
Redeemable noncontrolling interest 42,028 40,749
Stockholders’ equity:    
Preferred stock 0 0
Common stock 2 2
Additional paid-in capital 1,299,603 1,286,815
Accumulated other comprehensive loss 95 (708)
Accumulated deficit (1,228,354) (1,162,937)
Total stockholders’ equity 71,346 123,172
Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 385,442 $ 432,764
Preferred stock, shares authorized (in shares) 200,000,000 200,000,000
v3.23.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Accounts receivable, allowance for credit loss, current $ 296 $ 436
Preferred stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Preferred stock, shares authorized (in shares) 200,000,000 200,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, shares authorized (in shares) 3,000,000,000 3,000,000,000
Common stock, shares issued (in shares) 243,607,000 240,931,000
Common stock, shares outstanding (in shares) 243,607,000 240,931,000
Class A Common Stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares authorized (in shares) 1,800,000,000 1,800,000,000
Common stock, shares issued (in shares) 233,056,000 230,210,000
Common stock, shares outstanding (in shares) 233,056,000 230,210,000
Class B Common Stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares authorized (in shares) 600,000,000 600,000,000
Common stock, shares issued (in shares) 10,551,000 10,721,000
Common stock, shares outstanding (in shares) 10,551,000 10,721,000
Class C Common Stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares authorized (in shares) 600,000,000 600,000,000
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
v3.23.1
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Revenue    
Total revenue $ 37,336 $ 71,524
Cost of revenue    
Total cost of revenue 21,483 42,655
Gross profit 15,853 28,869
Operating expenses:    
Research and development 26,257 35,106
Sales and marketing 17,568 22,341
General and administrative 20,681 37,102
Amortization of acquired intangible assets 0 4,068
Restructuring 12,783 0
Total operating expenses 77,289 98,617
Loss from operations (61,436) (69,748)
Interest expense (7,569) (5,558)
Other income (expense), net 2,882 91
Loss before income taxes (66,123) (75,215)
Income tax (expense) benefit (71) 2,797
Net loss (66,194) (72,418)
Less: Net loss attributable to noncontrolling interest 777 314
Net loss attributable to Blend Labs, Inc. (65,417) (72,104)
Less: Accretion of redeemable noncontrolling interest to redemption value (2,056) (1,442)
Net loss attributable to Blend Labs, Inc. common stockholders, basic (67,473) (73,546)
Net loss attributable to Blend Labs, Inc. common stockholders, diluted $ (67,473) $ (73,546)
Net loss per share attributable to Blend Labs, Inc. common stockholders:    
Basic (in dollars per share) $ (0.28) $ (0.32)
Diluted (in dollars per share) $ (0.28) $ (0.32)
Weighted average shares used in calculating net loss per share:    
Basic (in shares) 241,444 230,329
Diluted (in shares) 241,444 230,329
Comprehensive loss:    
Net loss $ (66,194) $ (72,418)
Unrealized gain (loss) on marketable securities 821 (1,845)
Foreign currency translation (loss) gain (18) 28
Comprehensive loss (65,391) (74,235)
Less: Comprehensive loss attributable to noncontrolling interest 777 314
Comprehensive loss attributable to Blend Labs, Inc. (64,614) (73,921)
Software    
Revenue    
Total revenue 22,970 30,604
Cost of revenue    
Total cost of revenue 5,803 8,666
Professional services    
Revenue    
Total revenue 1,734 1,972
Cost of revenue    
Total cost of revenue 2,806 3,735
Title    
Revenue    
Total revenue 12,632 38,948
Cost of revenue    
Total cost of revenue $ 12,874 $ 30,254
v3.23.1
Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Equity - USD ($)
$ in Thousands
Total
Redeemable Noncontrolling Interest
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Beginning balance at Dec. 31, 2021 $ 774,642 $ 35,949 $ 2 $ 1,218,213 $ (808) $ (442,765)
Beginning balance (in shares) at Dec. 31, 2021     230,324,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     1,553,000      
Issuance of common stock upon exercise of stock options, net of repurchases 1,740     1,740    
Vesting of early exercised stock options 1,913     1,913    
Vesting of restricted stock units (in shares)     523,000      
Stock-based compensation 24,312     24,312    
Unrealized gain(loss) on investments in marketable securities (1,845)       (1,845)  
Foreign currency translation gain(loss) 28       28  
Accretion of redeemable noncontrolling interest to redemption value (1,442) 1,442   (1,442)    
Other (270)     (270)    
Net loss (72,104) (314)       (72,104)
Ending balance at Mar. 31, 2022 726,974 37,077 $ 2 1,244,466 (2,625) (514,869)
Ending balance (in shares) at Mar. 31, 2022     232,400,000      
Beginning balance at Dec. 31, 2022 123,172 40,749 $ 2 1,286,815 (708) (1,162,937)
Beginning balance (in shares) at Dec. 31, 2022     240,931,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     17,000      
Issuance of common stock upon exercise of stock options, net of repurchases 134     134    
Vesting of early exercised stock options 758     758    
Vesting of restricted stock units (in shares)     4,228,000      
Shares withheld related to net share settlement of equity awards (in shares)     (1,568,000)      
Shares withheld related to net share settlement of equity awards (2,440)     (2,440)    
Stock-based compensation 16,392     16,392    
Unrealized gain(loss) on investments in marketable securities 821       821  
Foreign currency translation gain(loss) (18)       (18)  
Accretion of redeemable noncontrolling interest to redemption value (2,056) 2,056   (2,056)    
Net loss (65,417) (777)       (65,417)
Ending balance at Mar. 31, 2023 $ 71,346 $ 42,028 $ 2 $ 1,299,603 $ 95 $ (1,228,354)
Ending balance (in shares) at Mar. 31, 2023     243,608,000      
v3.23.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Operating activities    
Net loss $ (66,194) $ (72,418)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock-based compensation 16,392 24,312
Depreciation and amortization 630 4,601
Amortization of deferred contract costs 984 1,244
Amortization of debt discount and issuance costs 730 709
Amortization of operating lease right-of-use assets 806 785
Release of valuation allowance and change in deferred taxes 0 (2,864)
Other (1,347) 1,049
Changes in operating assets and liabilities:    
Trade and other receivables 2,900 409
Prepaid expenses and other assets, current and non-current (4,969) 2,830
Deferred contract costs, non-current 217 852
Accounts payable 672 (4,314)
Deferred revenue 4,351 6,104
Accrued compensation 976 (4,651)
Operating lease liabilities (1,003) (958)
Other liabilities, current and non-current (1,798) (3,532)
Net cash used in operating activities (46,653) (45,842)
Investing activities    
Purchases of marketable securities (186,206) (30,450)
Maturities of marketable securities 157,570 30,035
Additions to property, equipment, internal-use software and intangible assets (304) (268)
Net cash used in investing activities (28,940) (683)
Financing activities    
Proceeds from exercises of stock options, including early exercises, net of repurchases 21 1,202
Taxes paid related to net share settlement of equity awards (2,440) 0
Payment of initial public offering costs 0 (121)
Net cash (used in) provided by financing activities (2,419) 1,081
Effect of exchange rates on cash, cash equivalents, and restricted cash 8 28
Net decrease in cash, cash equivalents, and restricted cash (78,004) (45,416)
Cash, cash equivalents, and restricted cash at beginning of period 129,557 218,440
Cash, cash equivalents, and restricted cash at end of period 51,553 173,024
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets:    
Cash and cash equivalents 46,195 167,666
Restricted cash 5,358 5,358
Total cash, cash equivalents, and restricted cash 51,553 173,024
Supplemental disclosure of cash flow information:    
Cash paid for income taxes 101 11
Cash paid for interest 6,911 4,944
Supplemental disclosure of non-cash investing and financing activities:    
Vesting of early exercised stock options 758 1,913
Operating lease liabilities arising from obtaining new or modified right-of-use assets 327 317
Accretion of redeemable noncontrolling interest to redemption value $ 2,056 $ 1,442
v3.23.1
Description of Business and Basis of Presentation
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation Description of Business and Basis of Presentation
Description of Business
Blend Labs, Inc. (the “Company,” “Blend,” “we,” “us,” or “our”) was incorporated on April 17, 2012. The Company offers a cloud-based software platform for financial services firms that is designed to power the end-to-end consumer journey for banking products. The Company’s solutions make the journey from application to close fast, simple, and transparent for consumers, while helping financial services firms increase productivity, deepen customer relationships, and deliver exceptional consumer experiences.
Basis of Presentation, Principles of Consolidation, and Use of Estimates
The accompanying unaudited condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2023 and 2022, the unaudited condensed consolidated statements of redeemable noncontrolling interest and stockholders’ equity for the three months ended March 31, 2023 and 2022, and the unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2023 and 2022 reflect all adjustments that are of a normal, recurring nature and that are considered necessary for a fair presentation of the results for the periods shown in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial reporting periods. Accordingly, certain information and footnote disclosures have been condensed or omitted that would ordinarily be required under U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

The accompanying unaudited condensed consolidated financial statements include the accounts of Blend Labs, Inc. and its subsidiaries in which the Company holds a controlling financial interest. Noncontrolling interest represents the minority stockholder’s share of the net income or loss and equity in a consolidated subsidiary. All intercompany balances and transactions have been eliminated in consolidation.

During the three months ended March 31, 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 software-enabled title component was reclassified from the Blend Platform segment to Title segment (previously referred to as “Title365” segment). In addition, the Company revised its revenue disaggregation within the Blend Platform segment. Prior period amounts reported in the unaudited condensed consolidated interim financial statements and notes thereto have been reclassified to conform to current period presentation.

The preparation of condensed 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 condensed 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 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 warrants, 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.
v3.23.1
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting PoliciesThe Company’s significant accounting policies are described in Note 2, Summary of Significant Accounting Policies, of the Notes to the Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes to these policies during the three months ended March 31, 2023.
Cash and Cash Equivalents
The Company places its cash with high credit quality and federally insured institutions. Cash with any one institution may be in excess of federally insured limits. The Company has not experienced any losses in such accounts and believes the exposure to credit risk is not significant. The Company considers all highly liquid investments with an original maturity date of three months or less at the time of purchase to be cash equivalents. As of March 31, 2023 and December 31, 2022, cash and cash equivalents consisted of cash, money market accounts, and highly liquid investments with original maturities less than 90 days. The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents approximate fair value due to the short-term nature of the maturities.
Restricted Cash
The Company has classified cash that is not available for use in its operations as restricted cash. Restricted cash consists primarily of collateral for letters of credit related to security deposits for the Company’s office facility lease arrangements. As of both March 31, 2023 and December 31, 2022, the Company had restricted cash of $5.4 million, all of which was classified as non-current.
Escrow or Trust Funds
The Company administers escrow and trust deposits held at third-party financial institutions representing funds received under real estate contracts, escrowed funds received under escrow agreements, and undisbursed amounts received for settlement of mortgage and home equity loans. These funds are not considered assets of the Company and, therefore, are not included in the accompanying unaudited condensed consolidated balance sheets; however, the Company remains contingently liable for the disposition of these funds on behalf of its customers. Cash held by the Company for these purposes was approximately $4.7 million, net of outstanding checks in transit of $26.8 million as of March 31, 2023, and approximately $5.0 million, net of outstanding checks in transit of $42.8 million as of December 31, 2022.
Trade and Other Receivables and Credit Loss Reserves
The Company reports trade and other receivables net of the allowance for credit losses, in accordance with Accounting Standards Codification (“ASC”) 326, Financial Instruments—Credit Losses. ASC 326 requires an entity to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. The Company’s estimate of expected credit losses is determined based on expected lifetime loss rates calculated from historical data and adjusted for the impact of current and future conditions, such as the age of outstanding receivables, historical payment patterns, any known or expected changes to the customers’ ability to fulfill their payment obligations, or assessment of broader economic conditions that may impact the customers’ ability to pay the outstanding balances. As of March 31, 2023 and December 31, 2022, the reserve for expected credit losses was $0.3 million and $0.4 million, respectively. The provision for expected credit losses resulted in a reduction to the reserve of $0.1 million and an increase to the reserve of $0.3 million for the three months ended March 31, 2023 and 2022, respectively. The uncollectible portion of the receivables written off against reserve for expected credit losses was not material for the three months ended March 31, 2023 and 2022.
Concentrations of Credit Risk and Significant Customers
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. As of March 31, 2023, cash and cash equivalents of $46.2 million include $1.4 million cash in a foreign jurisdiction. As of December 31, 2022, cash and cash equivalents of $124.2 million include $1.3 million of cash in a foreign jurisdiction. Under its investment policy, the Company limits amounts invested in marketable securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the United States government. The Company is not exposed to any significant concentrations of credit risk from these financial instruments. The goals of the Company’s investment policy, in order of priority, are safety and preservation of principal and liquidity of investments sufficient to meet cash flow requirements. Collateral is not required for trade accounts receivable.

Title365 has agreements with insurance underwriters authorizing the Company to issue title insurance policies on behalf of the insurance underwriters. The policies are underwritten by two title insurance companies, which accounted for approximately 71% and 29% during the three months ended March 31, 2023, and 62% and 38% during the three months ended March 31, 2022, respectively, of title policy fees earned during the period.
The following customer, which generates revenue in both Blend Platform and Title segments, comprised 10% or more of the Company’s revenue for the following periods:
Three Months Ended March 31,
Customer
20232022
A18%36%

The following customers comprised 10% or more of the Company’s trade and unbilled receivables:
Customer
March 31, 2023December 31, 2022
A12%12%
B11%10%
Redeemable Noncontrolling Interest
The Company’s 90.1% ownership of Title365 results in recognition of 9.9% noncontrolling interest, which represents the minority stockholder’s share of the net income and equity in Title365. The Title365 stockholders agreement includes a provision whereby the Company has a call option to purchase the 9.9% noncontrolling interest at a purchase price equal to the greater of (1) $49.5 million plus an amount of interest calculated using an interest rate of 5.0% per annum compounding annually; or (2) 4.4 multiplied by the trailing 12-month EBITDA multiplied by the noncontrolling interest ownership percentage (the “Title365 Call Option”). The Title365 Call Option is exercisable beginning 2 years following the acquisition closing date. The noncontrolling interest holder also holds an option to compel the Company to purchase the remaining 9.9% noncontrolling interest at a price calculated in the same manner as the Title365 Call Option (the “Title365 Put Option”). The Title365 Put Option is exercisable beginning 5 years following the acquisition closing date. Neither the Title365 Call Option nor the Title365 Put Option have an expiration date. As the Title365 Put Option is not solely within the Company’s control, the Company classified this interest as redeemable noncontrolling interest (“RNCI”) within the mezzanine equity section of the consolidated balance sheets. The RNCI is accreted to the redemption value under the interest method from the acquisition date through the date the Title365 Put Option becomes exercisable. At each balance sheet date, the RNCI is reported at the greater of the initial carrying amount adjusted for the RNCI's share of earnings or losses and other comprehensive income or loss, or its accreted redemption value. The changes in the redemption amount are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. For each reporting period, the entire periodic change in the redemption amount is reflected in the computation of net loss per share under the two-class method as being akin to a dividend. As of March 31, 2023 and December 31, 2022, the redemption amount of the Title365 Put Option as if it was currently redeemable was $53.8 million and $53.2 million, respectively.
JOBS Act Accounting Election
As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies (that is, those that have not had a Securities Act of 1933, as amended (the “Securities Act”), registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). The Company intends to use this extended transition period under the JOBS Act until such time as the Company is no longer considered to be an EGC. The adoption dates discussed below reflect this election.
Recently Adopted Accounting Standards
In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848), with amendments in 2021. This update provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Under this update, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In October 2022, the Company entered into the first amendment to the Credit Agreement (as defined in Note 10, “Debt Financing”), which replaced the reference rate from LIBOR to the Secured Overnight Financing Rate ("SOFR") as a result of the expected cessation of LIBOR and adopted ASU 2020-04 and elected the optional expedient. The adoption did not have a material impact on the Company’s consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities with Customers (Topic 805). This guidance requires an acquirer in a business combination to use principles in ASC 606 to recognize and measure contract assets and liabilities rather than fair value. The Company adopted ASU No. 2021-08 on January 1, 2023. The adoption did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted
In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). The guidance simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20 that requires entities to account for beneficial conversion features and cash conversion features in equity separately from the host convertible debt or preferred stock. The guidance is effective for the Company for annual reporting periods, and interim reporting periods within those annual periods, beginning January 1, 2024. ASU 2020-06 should be applied on a full or modified retrospective basis and early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820). This update clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. The guidance is effective for the Company for annual reporting periods, and interim reporting periods within those annual periods, beginning January 1, 2024. Early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.
v3.23.1
Revenue Recognition and Contract Costs
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition and Contract Costs Revenue Recognition and Contract Costs
Disaggregation of Revenue
The following table provides information about disaggregated revenue by service offering:
Three Months Ended March 31,
20232022
(In thousands)
Blend Platform revenue:
Mortgage Suite$17,795 $26,753 
Consumer Banking Suite5,175 3,851 
Total Software revenue22,970 30,604 
Professional services1,734 1,972 
Total Blend Platform revenue24,704 32,576 
Title revenue:
Traditional9,478 38,731 
Software-enabled3,154 217 
Total Title revenue12,632 38,948 
Total revenue$37,336 $71,524 

During the three months ended March 31, 2023, the Company revised its revenue disaggregation 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 (income verification and close products), and marketplace revenue (property and casualty insurance and realty products). Consumer Banking Suite revenue represents revenue related to the Company’s consumer banking products including personal loans, credit cards, deposit accounts, and home equity. 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 software-enabled), escrow and other closing and settlement services provided by the Title segment. Prior period amounts have been reclassified to conform to current period presentation.
Contract Balances
The following table provides information about contract assets and contract liabilities from contracts with customers:

Contract Accounts
Balance Sheet Line Reference
March 31, 2023December 31, 2022
(In thousands)
Contract assets—currentPrepaid expenses and other current assets$791 $1,252 
Contract liabilities—currentDeferred revenue, current$(13,046)$(8,695)

There were no long-term contract assets or deferred revenue as of March 31, 2023 and December 31, 2022.

During the three months ended March 31, 2023 and 2022, the Company recognized $3.5 million and $4.4 million, respectively, of revenue that was included in the deferred revenue balances at the beginning of the respective periods.
During the three months ended March 31, 2023, the Company recognized approximately $0.8 million of revenue related to performance obligations satisfied in previous periods. During the three months ended March 31, 2022, revenue from performance obligations satisfied in previous periods was not material. The revenue recognized from performance obligations satisfied in the prior periods primarily related to changes in the transaction price, including changes in the estimate of variable consideration.
Remaining Performance Obligations
As of March 31, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations was $43.9 million. These remaining performance obligations do not include estimates of variable consideration associated with usage-based contracts with termination rights and professional services. The expected timing of recognizing revenue for the transaction price allocated to the remaining performance obligations as of March 31, 2023 was as follows:

(In thousands)
Within one year$21,004 
More than one year22,858 
Total transaction price allocated to the remaining performance obligations$43,862 
Deferred Contract Costs
As of March 31, 2023 and December 31, 2022, total unamortized deferred contract costs were $4.5 million and $5.2 million, respectively, of which $3.0 million and $3.5 million was recorded within prepaid expenses and other current assets and $1.5 million and $1.7 million was recorded within deferred contract costs, non-current, on the unaudited condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively.

The amortization of deferred contract costs was $1.0 million and $1.2 million for the three months ended March 31, 2023 and 2022, respectively, and is included in sales and marketing expense in the accompanying unaudited condensed consolidated statements of operations.
v3.23.1
Investments and Fair Value Measurements
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments and Fair Value Measurements Investments and Fair Value Measurements
The carrying amount, unrealized gain and loss, and fair value of investments by major security type were as follows:

March 31, 2023
Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Fair Value
Fair Value Hierarchy
(In thousands)
Cash equivalents: 
 
 
 
Money market funds$3,791 $— $— $3,791 Level 1
Commercial paper16,258 — — 16,258 Level 2
U.S. treasury and agency securities7,186 — — 7,186 Level 2
Total cash equivalents27,235 — — 27,235 
Marketable securities:
U.S. treasury and agency securities150,710 188 (175)150,723 Level 2
Commercial paper39,583 — — 39,583 Level 2
Debt securities70,482 38 (164)70,356 Level 2
Total marketable securities260,775 226 (339)260,662 
Restricted cash, non-current:
Certificates of deposit335 — — 335 Level 2
Total$288,345 $226 $(339)$288,232 

December 31, 2022
Amortized
Cost
Gross
Unrealized
Loss
Fair Value
Fair Value Hierarchy
(In thousands)
Cash equivalents: 
 
 
Money market funds$26,389 $— $26,389 Level 1
Commercial paper29,242 — 29,242 Level 2
U.S. treasury and agency securities12,163 — 12,163 Level 2
Total cash equivalents67,794 — 67,794 
Marketable securities:
U.S. treasury and agency securities197,734 (918)196,816 Level 2
Commercial paper23,686 — 23,686 Level 2
Debt securities4,462 (16)4,446 Level 2
Total marketable securities225,882 (934)224,948 
Other investments:
Certificates of deposit5,000 — 5,000 Level 2
Restricted cash, non-current:
Certificates of deposit335 — 335 Level 2
Total$299,011 $(934)$298,077 

The fair value of the Company’s investments in money market funds classified as Level 1 of the fair value hierarchy is based on real-time quotes for transactions in active exchange markets involving identical assets. The fair value of the Company’s investments in commercial paper and marketable securities classified as Level 2 of the fair value hierarchy is based on quoted market prices for similar instruments.

The following table summarizes the stated maturities of the Company’s marketable securities:
March 31, 2023December 31, 2022
(In thousands)
Due within one year$181,933 $201,921 
Due after one year through two years78,729 28,027 
Total marketable securities$260,662 $229,948 

The Company evaluates marketable securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or other factors. The Company considers the extent to which the fair value is less than cost, the financial condition and near-term prospects of the security issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

The Company does not have an intent to sell any of these securities prior to maturity and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date. Accordingly, as of March 31, 2023, the Company believes that the unrealized losses are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore no impairment losses have been recognized in the Company’s unaudited condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022. As of March 31, 2023 and December 31, 2022, the number of investment positions that are in an unrealized loss position were 52 and 38, respectively. As of March 31, 2023 and December 31, 2022, the Company had no securities that have been in a continuous unrealized loss position for twelve months or greater. The Company determines realized gains or losses on the sale of marketable securities based on a specific identification method.

The Company recognized interest income from its investment portfolio of $2.9 million and $0.2 million for the three months ended March 31, 2023 and 2022. Accrued interest receivable related to marketable securities was $0.8 million and $0.9 million, as of March 31, 2023 and December 31, 2022, respectively, and is presented within prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets. The Company does not measure an allowance for credit losses on accrued interest receivable and recognizes interest receivable write offs as a reversal of interest income. No accrued interest was written off during the three months ended March 31, 2023 and 2022.
v3.23.1
Intangible Assets
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Intangible assets consisted of the following:

March 31, 2023
Weighted Average Remaining AmortizationGross AmountAccumulated AmortizationNet Book Value
(In years)(In thousands)
Intangible assets subject to amortization:
Domain name8.4$210 $(87)$123 
Indefinite-lived intangible assets:
Acquired licenses2,000 — 2,000 
Total intangible assets, net$2,210 $(87)$2,123 
December 31, 2022
Weighted Average Remaining AmortizationGross AmountAccumulated AmortizationImpairment ChargeNet Book Value
(In years)(In thousands)
Intangible assets subject to amortization:
Acquired customer relationships—$179,000 $(16,548)$(162,452)$— 
Internally developed software—11,391 (11,391)— — 
Domain name8.6210 (83)— 127 
Total finite-lived intangible assets, net8.6190,601 (28,022)(162,452)127 
Indefinite-lived intangible assets:
Acquired licenses2,000 — — 2,000 
Total intangible assets, net$192,601 $(28,022)$(162,452)$2,127 

Amortization of intangible assets for the three months ended March 31, 2023 was immaterial. Amortization of intangible assets for the three months ended March 31, 2022 was $4.1 million.
v3.23.1
Significant Balance Sheet Components
 3 Months Ended
Mar. 31, 2023
Supplemental Balance Sheet Information [Abstract]  
Significant Balance Sheet Components Significant Balance Sheet Components
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following:
March 31, 2023December 31, 2022
(In thousands)
Contract assets$791 $1,252 
Deferred contract costs3,051 3,518 
Prepaid software5,383 5,472 
Prepaid insurance1,976 3,646 
Prepaid other6,514 2,184 
Recording fee advances535 857 
Other current assets5,155 2,302 
Total prepaid expenses and other current assets$23,405 $19,231 

Recording fee advances represent amounts advanced on behalf of customers in the Title segment associated with the recording of mortgage documents. These amounts are primarily recouped within 30 days from funds in the escrow accounts the Company administers.
Property and Equipment, Net
Property and equipment, net, consisted of the following:
March 31, 2023December 31, 2022
(In thousands)
Computer and software$6,123 $5,843 
Furniture and fixtures1,816 1,886 
Leasehold improvements4,892 4,884 
Total property and equipment, gross12,831 12,613 
Accumulated depreciation and amortization(7,423)(6,871)
Total property and equipment, net$5,408 $5,742 

Depreciation expense for the three months ended March 31, 2023 and 2022 was $0.6 million and $0.5 million, respectively.
Note Receivable
The Company holds a $3.0 million investment in a privately-held company via a convertible promissory note. Interest accrues at 2% per annum and outstanding principal and accrued interest is due and payable at the earliest of (i) 60 months from the execution of the note, (ii) an initial public offering, or (iii) change in control, unless otherwise converted to shares of the issuer. The outstanding principal and unpaid accrued interest are convertible into 4,500,000 shares of the issuer’s Series Seed Preferred Stock at the option of the issuer, upon a change in control, upon the issuer’s initial public offering, or upon a qualified equity financing. The conversion option is not bifurcated from the promissory note as the option does not meet the net settlement criteria of a derivative instrument due to the option not being readily convertible to cash. The Company also has a call option to merge the issuer with the Company for aggregate consideration of $500.0 million. The value of the call option was determined to be inconsequential. The note receivable is presented within other non-current assets on the unaudited condensed consolidated balance sheets.
Investments in Non-Marketable Equity Securities
The Company holds an equity investment in a privately-held company in exchange for 103,611 shares of Series Growth 1a Preferred Stock. This investment in the equity securities without readily determinable fair value is measured at cost, less impairment, if any, plus or minus observable price changes in orderly transactions of an identical or similar investment of the same issuer. The carrying value of this investment was $5.4 million as of March 31, 2023 and December 31, 2022, respectively. There were no impairments or observable price changes for the three months ended March 31, 2023 and 2022.
Cloud Computing Arrangements
The Company capitalizes certain implementation costs incurred during the application development stage under cloud computing arrangements that are service contracts. The carrying value of the capitalized costs was $0.7 million as of March 31, 2023, of which $0.6 million is presented within prepaid expenses and other current assets, and $0.1 million is presented within other non-current assets on the unaudited condensed consolidated balance sheets. The carrying value of the capitalized costs was $0.9 million as of December 31, 2022, of which $0.7 million is presented within prepaid expenses and other current assets, and $0.2 million is presented within other non-current assets on the unaudited condensed consolidated balance sheets. Amortization of capitalized implementation costs is recognized on a straight-line basis over the term of the associated hosting arrangement when it is ready for its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred.
Other Current Liabilities
Other current liabilities consisted of the following:

March 31, 2023December 31, 2022
(In thousands)
Accrued expenses$2,191 $3,051 
Accrued interest— 73
Accrued professional fees2,533 2,615
Accrued connectivity fees2,761 3,143
Accrued litigation contingencies700 700
Operating lease liabilities, current portion4,134 4,089
Other1,587 1,788 
Total other current liabilities$13,906 $15,459 
Other Long-Term Liabilities
Other long-term liabilities consisted of the following:

March 31, 2023December 31, 2022
(In thousands)
Early exercise liabilities$1,130 $2,002 
Payroll tax liabilities1,501 1,354
Other liabilities1,776 2,122 
Total other long-term liabilities$4,407 $5,478 

Title and Escrow Loss Reserve
The Company performs title insurance services and issues a title insurance policy as an agent for a third-party title insurance underwriter. The Company pays part of the title insurance policy fee charged to its customers to the third-party title insurance underwriter as compensation for accepting the risk associated with issuing the title policy. The Company may incur a loss if it does not follow the guidelines outlined in the agency agreements, and in the state of California, the Company is obligated to reimburse the insurance company for up to the first $5,000 in losses related to a claim on a policy issued through Title365. Reserves for estimated future losses on policies issued are established at the time the title insurance revenue is recognized in accordance with ASC 450, Contingencies, and are based on claim loss history, industry trends, legal environment, geographic considerations, and the type of title insurance policies written. As of March 31, 2023, title and escrow loss reserves were $1.8 million, of which $0.2 million, is presented within other current liabilities and $1.6 million is presented within other non-current liabilities on the consolidated balance sheets. As of December 31, 2022, title and escrow loss reserves were $2.1 million, of which $0.2 million is presented within other current liabilities and $1.9 million is presented within other non-current liabilities on the consolidated balance sheets.
v3.23.1
Leases
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Leases LeasesThe Company leases its facilities under non-cancelable operating leases with various expiration dates. Leases may contain escalating payments. Restricted cash that is not available for use in operations consists of collateral for standby letters of credit related to the Company’s office lease facilities. The restricted cash balance related to lease obligations as of March 31, 2023 and December 31, 2022 were $5.0 million.
The Company’s total operating lease costs were $1.7 million and $1.8 million for the three months ended March 31, 2023 and 2022, respectively. The Company’s total operating lease costs include variable costs in the amount of $0.5 million for the three months ended March 31, 2023 and 2022. Variable lease costs are primarily comprised of maintenance costs and are determined based on the actual costs incurred during the period. Variable lease payments are expensed in the period incurred and not included in the measurement of lease assets and liabilities.

As of March 31, 2023 and December 31, 2022, the weighted average remaining operating lease term was 3.6 years and 3.8 years, respectively. The weighted average discount rate used to estimate operating lease liabilities for leases that existed as of March 31, 2023 and December 31, 2022 was 7.9%. Cash paid for amounts included in the measurement of operating lease liabilities was $1.3 million for the three months ended March 31, 2023 and 2022.

As of March 31, 2023, maturities of operating lease liabilities were as follows:

(In thousands)
Remainder of 2023$3,738 
20245,109 
20254,254 
20261,304 
20271,094 
Thereafter1,259 
Total lease payments16,758 
Less: imputed interest(2,389)
Total operating lease liabilities$14,369 
v3.23.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Contingencies
From time to time and in the normal course of business, the Company may be subject to various legal matters, such as threatened or pending claims or proceedings. The litigation contingencies, if realized, could have a material negative impact on the Company’s financial condition, results of operations, and cash flows. The Company recognizes a provision for litigation losses when a contingent liability is probable and the amount thereof is estimable. Costs associated with the Company's involvement in legal proceedings are expensed as incurred. Amounts accrued for litigation contingencies are based on the Company’s best estimates, assessments of the likelihood of damages, and the advice of counsel and often result from a series of judgments about future events and uncertainties that rely heavily on estimates and assumptions, therefore the actual settlement amounts could differ from the estimated contingency accrual and result in additional charges or reversals in future periods. As of March 31, 2023 and December 31, 2022, the Company had a litigation contingency accrual of approximately $0.7 million, which was presented within other current liabilities in the consolidated balance sheets.

Warranties, Indemnifications, and Contingent Obligations
The Company’s platform, products, and services are generally warranted to perform substantially as described in the associated documentation and to satisfy defined levels of uptime reliability. The service-level agreements that provide for defined levels of uptime reliability and performance permit the customers to receive credits or to terminate their agreements in the event that the Company fails to meet those levels. To date, the Company has not experienced any significant failures to meet defined levels of reliability and performance as a result of those agreements and historically the Company has not incurred any material costs associated with warranties. Accordingly, the Company has not accrued any liabilities related to these agreements in the unaudited condensed consolidated financial statements.
The Company enters into indemnification provisions under (i) its agreements with other companies in the ordinary course of business, typically with business partners, contractors, customers, and landlords and (ii) its agreements with investors. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities or, in some cases, as a result of the indemnified party’s activities under the agreement. These indemnification provisions often include indemnifications relating to representations made by the Company with regard to intellectual property rights. These indemnification provisions generally survive termination of the underlying agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. Accordingly, the Company has no liabilities recorded for these agreements as of March 31, 2023 or December 31, 2022.

The Company has agreed to indemnify its officers and directors to the fullest extent permitted by its amended and restated bylaws and the General Corporation Law of the State of Delaware for certain events or occurrences arising as a result of the officers or directors serving in such capacity. The coverage applies only to acts that occurred during the tenure of the officer or director and has an unlimited term. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited.
v3.23.1
Debt Financing
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Debt Financing Debt Financing
Debt consisted of the following:

March 31, 2023December 31, 2022
(In thousands)
Term Loan - principal$225,000 $225,000 
Term Loan - exit fee4,500 4,500 
Less: unamortized debt discounts and issuance costs(11,994)(12,699)
Total debt$217,506 $216,801 

On June 30, 2021, in connection with the closing of the acquisition of Title365, the Company entered into a credit agreement, as amended from time to time (the “Credit Agreement”), which provides for a $225.0 million senior secured term loan (the “Term Loan”) and a $25.0 million senior secured revolving credit facility (the “Revolving Facility”). The Revolving Facility includes $10.0 million sublimit for the issuance of letters of credit. The Revolving Facility also includes a swingline sub-facility (the “Swingline Facility”) that accommodates same-day borrowing of base rate loans. The sublimit for the Swingline Facility is $5.0 million. In October 2022, the Company entered into the First Amendment (the “Amendment”) to the Credit Agreement. The Amendment replaced the reference rate from LIBOR to SOFR as a result of the expected cessation of LIBOR and in accordance with the Credit Agreement.

The Term Loan was fully drawn at closing to provide, in part, the cash consideration paid in connection with the acquisition of Title365. The Term Loan was funded and the cash consideration was transferred on July 1, 2021. The Revolving Facility remained available and undrawn as of March 31, 2023.

The borrowings under the Term Loan and Revolving Facility accrue interest at a floating rate which can be, at the Company’s option, either (i) an adjusted Term SOFR rate for a specified interest period plus an applicable margin of 7.50% or (ii) a base rate plus an applicable margin of 6.50%. The Term SOFR rate applicable to the Term Loan and the Revolving Facility is subject to a floor of 1.00%, and the base rate is subject to a floor of 2.00%. The base rate for any day is a fluctuating rate per annum equal to the highest of (i) the federal funds effective rate in effect on such day, plus 0.50%, (ii) the rate of interest for such day as published in the Wall Street Journal as the “prime rate,” and (iii) the adjusted Term SOFR rate for a one-month interest period, plus 1.00%. Interest is payable in arrears for the elected specified interest period.

In addition to paying interest on amounts outstanding under the Term Loan and the Revolving Facility, the Company is required to pay a commitment fee of 0.50% per annum of the unused commitments under the Revolving Facility. The Company is also required to pay letter of credit fees, customary fronting fees, and other customary documentary fees in connection with the issuance of letters of credit.
The Company incurred approximately $5.7 million of debt issuance costs in connection with the Term Loan, which have been deferred, and the remaining unamortized portion of these costs is presented as a reduction of long-term debt. Debt issuance costs related to the Revolving Facility amounted to $0.5 million, and the remaining unamortized portion of these costs is presented within other current assets on the unaudited condensed consolidated balance sheets.

In connection with the Credit Agreement, the Company issued a Series G preferred stock warrant to purchase 598,431 shares of Class A common stock at an exercise price per share of $13.827822. The terms of the warrant agreement provide the holder with an option to net settle if the fair value of Class A common stock is greater than the exercise price. The net shares to be issued in a cashless exercise are based on the fair value of the Company’s Class A common stock at the time the warrant is exercised. As of March 31, 2023, the warrant has not been exercised. The warrant will expire 10 years from the issue date. The proceeds from the issuance of debt were allocated between the Term Loan and the warrant based on their relative fair values, resulting in a debt discount of approximately $6.8 million for the amount allocated to the warrant and accounted for as paid-in capital.

Under the terms of the Credit Agreement, the lender is entitled to an exit fee in an amount equal to 2.00% of the signing date term facility commitment. The exit fee resulted in an additional debt discount of $4.5 million. The exit fee shall be due and payable on the earliest to occur:
a)    The maturity date of the Term Loan;
b)    The date on which all amounts then outstanding under the Term Loan are paid in full;
c)    The acceleration of the obligations with respect to the Term Loan for any reason;
d)    Any event of default as defined by the Term Loan; and
e)    Any repayment resulting from or in connection with a change of control.

Including the impact of the deferred debt issuance costs and the debt discounts resulting from the exit fee and the warrant, the effective interest rate on the Term Loan was approximately 13.96% as of March 31, 2023. Debt issuance costs, debt discounts, and the Revolving Facility issuance costs are being amortized as interest expense over the term of the Credit Agreement.

The fair value of the Term Loan was approximately $219.4 million and $221.1 million as of March 31, 2023 and December 31, 2022, respectively, and is classified as Level 2 in the fair value hierarchy. The fair value of the Term Loan was measured by applying the income approach, which discounts the future contractual cash flows using a current risk-adjusted rate available to borrowers with similar credit ratings.

The Term Loan and Revolving Facility will mature on June 30, 2026, and the full principal amount of each is due at maturity. No amortization payments are required with respect to either the Term Loan or the Revolving Facility.

The obligations under the Credit Agreement are guaranteed by all of the Company’s domestic subsidiaries (other than Title365 and its direct and indirect subsidiaries, subject to certain thresholds and other exceptions), and secured by a lien on substantially all of the Company’s and its subsidiaries’ assets (other than the equity issued by, and the assets of, Title365 and its direct and indirect subsidiaries, subject to certain thresholds and other exceptions).
The Credit Agreement contains customary affirmative and negative covenants, including covenants that limit and restrict us and our subsidiaries’ ability to: (i) incur indebtedness; (ii) grant liens; (iii) make investments, loans or advances; (iv) merge or consolidate; (v) sell assets; (vi) pay dividends; and (vii) enter into certain transactions with affiliates, in each case subject to customary exceptions for a credit facility of this size and type. In the event of a default, the Credit Agreement may require a mandatory prepayment of amounts due thereunder. The Credit Agreement also contains a minimum liquidity covenant. As of March 31, 2023, the Company was in compliance with these covenants.
v3.23.1
Stockholder’s Equity
 3 Months Ended
Mar. 31, 2023
Equity [Abstract]  
Stockholder’s Equity Stockholder’s EquityThe following is a summary of the rights of the holders of the Company’s capital stock:
Common Stock
The Company has three classes of authorized common stock: Class A common stock, Class B common stock, and Class C common stock. The rights of the holders of Class A common stock, Class B common stock, and Class C common stock are identical, except with respect to voting and conversion.

Dividend Rights
Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of the Company’s common stock will be entitled to receive dividends out of funds legally available if the Company’s board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that the Company’s board of directors may determine.

Voting Rights
Holders of the Class A common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders, holders of the Class B common stock are entitled to 40 votes for each share held on all matters submitted to a vote of stockholders, and holders of the Class C common stock are not entitled to vote on any matter that is submitted to a vote of stockholders, except as otherwise required by law. The holders of the Class A common stock and Class B common stock will vote together as a single class, unless otherwise required by law. At the completion of the IPO, the Co-Founder and Head of Blend held all of the issued and outstanding shares of the Company’s Class B common stock.

No Preemptive or Similar Rights
The Company’s common stock is not entitled to preemptive rights and is not subject to conversion, redemption, or sinking fund provisions.

Right to Receive Liquidation Distributions
If the Company becomes subject to a liquidation, dissolution, or winding-up, the assets legally available for distribution to the Company’s stockholders would be distributable ratably among the holders of the Company’s common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock.

Conversion of Class B Common Stock
Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. Shares of Class B common stock will automatically convert into shares of Class A common stock upon sale or transfer except for certain transfers described in the Amended and Restated Certificate of Incorporation, such as certain transfers effected for estate planning or charitable purposes.

Conversion of Class C Common Stock
After the conversion or exchange of all outstanding shares of the Company’s Class B common stock into shares of Class A common stock, all outstanding shares of Class C common stock will convert automatically into Class A common stock, on a share-for-share basis, on the date or time specified by the holders of a majority of the outstanding shares of Class A common stock, voting as a separate class.

Preferred Stock
The Company’s board of directors has the authority to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series and to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations, or restrictions, in each case without further vote or action by the Company’s stockholders. As of March 31, 2023, the Company had 200,000,000 shares authorized and no shares issued and outstanding of preferred stock.
v3.23.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation2012 Stock Option Plan
Effective May 1, 2012, the Company adopted the 2012 Stock Plan (the “2012 Plan”). Options granted under the 2012 Plan may be either incentive stock options or nonqualified stock options. Incentive stock options (“ISOs”) may be granted only to employees (including officers and directors). Non-qualified stock options (“NSOs”) may be granted to employees and consultants. The exercise price of ISOs and NSOs shall not be less than 100% of the estimated fair value of the common shares on the date of grant, respectively, as determined by the Company’s board of directors. The exercise price of an ISO granted to a 10% or greater stockholder shall not be less than 110% of the estimated fair value of the common shares on the date of grant. Options generally vest over a period of four years.

2021 Equity Incentive Plan
In July 2021, the Company’s board of directors adopted, and the Company’s stockholders approved, the 2021 Equity Incentive Plan (the “2021 Plan”), which became effective on July 14, 2021. The Company’s prior plan, 2012 Plan, was terminated immediately prior to the effectiveness of the 2021 Plan with respect to the grant of future awards.

The 2021 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), and performance awards to the Company’s employees, directors, and consultants and the Company’s parent and subsidiary corporations’ employees and consultants.

Subject to the adjustment provisions of and the automatic increase described in the 2021 Plan, a total of 23,000,000 shares of the Company’s Class A common stock were reserved for issuance pursuant to the 2021 Plan, plus 36,101,718 shares of the Company’s Class A common stock reserved for future issuance under the 2012 Plan. Subject to the adjustment provisions of the 2021 Plan, the number of shares available for issuance under the 2021 Plan will also include an annual increase on the first day of each fiscal year beginning on January 1, 2022, equal to the least of (a) 34,500,000 shares of Class A common stock, (b) 5% of the total number of shares of all classes of the Company’s common stock outstanding on the last day of the immediately preceding fiscal year, or (c) such other amount as the Company’s board of directors (or its committee) may determine. Options granted under the 2021 Plan generally vest over periods ranging from one to four years.

A summary of the stock option activity is as follows:
Number of
options
Weighted
average
exercise
price
Weighted
average
remaining
contractual
life
Aggregate
intrinsic
value
(In thousands)(In years)(In thousands)
Balance as of December 31, 202225,337 $5.18 7.14$3,076 
Granted— 
 
 
Exercised(34)$1.28 
 
$— 
Cancelled and forfeited(1,889)$9.01 
 
 
Balance as of March 31, 202323,414 $4.88 5.78$897 
Vested and exercisable as of March 31, 202315,470 $4.52 4.95$897 

No options were granted during the three months ended March 31, 2023. The weighted average grant-date fair value of options granted during the three months ended March 31, 2022 was $3.68 per share.

The number of options unvested as of March 31, 2023 and December 31, 2022 was 7,944 and 10,717, respectively. The weighted average grant-date fair value of these unvested options was $3.11 and $3.61 per share at March 31, 2023 and December 31, 2022, respectively.

The total fair value of options vested during the three months ended March 31, 2023 and 2022 was $3.9 million and $9.0 million, respectively.
The aggregate intrinsic value of options exercised during the three months ended March 31, 2023 was immaterial. The aggregate intrinsic value of options exercised during the three months ended March 31, 2022 was $8.0 million.

The estimated grant date fair values of the employee stock options granted under the 2012 Plan and 2021 Plan were calculated using the Black-Scholes Merton Option pricing model based on the following weighted average assumptions:

Three Months Ended March 31, 2022
Expected term (years)5.28
Expected volatility49.82%
Risk-free interest rate1.82%
Expected dividend yield—

Risk-Free Interest Rate. The risk-free interest rate is based on U.S. treasury zero-coupon issues with remaining terms similar to the expected term of the options at the date of grant.

Expected Term. The expected term represents the period that the Company’s share-based awards are expected to be outstanding. The Company applies the simplified method in determining the expected life of the stock options as the Company has limited historical basis upon which to determine historical exercise periods.

Expected Dividend Yield. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model.

Expected Volatility. Expected volatility of the stock is based on the average historical volatility of the Company’s peer group after consideration of their size, maturity, profitability, growth, risk, and return on investment as the Company has limited historical volatility.

As of March 31, 2023, the total unrecognized stock-based compensation expense for stock options issued under the 2012 Plan and the 2021 Plan was approximately $21.7 million, which is expected to be recognized over a weighted average period of 2.6 years.
Early Exercise of Common Stock Options
The Company’s board of directors has authorized certain stock option holders to exercise unvested options to purchase shares of Class A common stock. Shares received from such early exercises are subject to repurchase in the event of the optionee’s termination of service as a service provider (as defined in the 2012 Plan and the 2021 Plan), at the lower of the fair market value on the date of the repurchase or the original exercise price, until the options are fully vested.

As of March 31, 2023 and December 31, 2022, 366,932 and 527,868 shares of Class A common stock were subject to repurchase. As of March 31, 2023 and December 31, 2022, the cash proceeds received for unvested shares of Class A common stock presented within other long-term liabilities in the unaudited condensed consolidated balance sheets were $1.1 million and $2.0 million, respectively.
Restricted Stock Units
A summary of the Company’s RSU activity and related information is as follows:

Number of RSUs
Weighted
average
grant date fair value per share
(In thousands)
Balance as of December 31, 202212,392 $3.02 
Granted5,721 $1.50 
Vested(4,442)$4.15 
Cancelled and forfeited(807)$2.86 
Balance as of March 31, 202312,864 $1.96 

As of March 31, 2023, there was $22.9 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.2 years. RSUs granted under the 2021 Plan generally vest quarterly over a period of one year from the grant date.

The total fair value of RSUs vested during the three months ended March 31, 2023 was $18.5 million. The total fair value of RSUs vested during the three months ended March 31, 2022 was $4.7 million.
Performance Stock Units
In March 2023, the Company’s board of directors granted restricted stock unit award with performance vesting conditions that provides for the issuance of up to 1,000,000 shares of Class A common stock. The award will vest in four tranches upon satisfaction of certain market-based performance targets related to the Company’s stock price hurdles. The estimated fair value of this award on the grant date was $0.5 million, which was determined using a Monte Carlo simulation model. The expense related to this award will be recognized over an estimated weighted average service period of 2.2 years. The total stock-based compensation expense recognized for this award for the three months ended March 31, 2023 was immaterial.
Non-Plan Co-Founder and Head of Blend Options
In March 2021, the Company’s board of directors granted to its Co-Founder and Head of Blend a stand-alone stock option issued outside of the 2012 Plan covering a maximum of 26,057,181 shares of Class B common stock with an exercise price of $8.58 per share. The award has a 15-year term (subject to earlier termination when shares subject to the award are no longer eligible to vest) and vests upon the satisfaction of a service condition, liquidity event-related performance condition, and performance-based market conditions.

The terms of the award stipulated that if an IPO is completed within 15 months of the date of grant, the first tranche of 1,954,289 shares will vest. The remaining tranches of shares will vest dependent on performance goals tied to the Company’s stock price hurdles with specified expiration dates for each tranche.

The estimated fair value of the first tranche as of the modification date was determined using Black-Scholes Merton Option pricing model, which resulted in fair value of $12.27 per share based on the following assumptions:

Fair value of common stock$18.00
Expected term (years)7.44
Expected volatility45.00%
Risk-free interest rate1.71%
Expected dividend yield—

The remaining tranches were valued using a Monte Carlo simulation model. The weighted average estimated fair value of the remaining tranches as of the modification date was $3.80 per share based on the following assumptions:
Fair value of common stock$18.00
Remaining contractual term (years)14.75
Expected volatility40.00%
Risk-free interest rate1.71%
Expected dividend yield—

In July 2021, the first tranche of 1,954,289 shares of the Co-Founder and Head of Blend stock option award vested upon completion of the IPO. The total stock-based compensation expense recognized for this award for the three months ended March 31, 2023 and 2022 was $4.8 million, respectively. The total unrecognized compensation expense related to the award for all tranches was $21.5 million as of March 31, 2023, which will be recognized over an estimated weighted average remaining period of 3.3 years.
Stock-Based Compensation Expense
The Company’s stock-based compensation expense was as follows:

Three Months Ended March 31,
20232022
(In thousands)
Cost of revenue$488 $493 
Research and development8,131 9,866 
Sales and marketing2,783 2,523 
General and administrative4,990 11,430 
Total$16,392 $24,312 
v3.23.1
Restructuring
 3 Months Ended
Mar. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
Workforce Reduction Plans
In 2022, the Company executed three workforce reduction initiatives as part of its broader efforts to improve cost efficiency and better align its operating structure with its business activities, with the focus on streamlining the Company’s title operations as well as its general and administrative functions. In April 2022, the Company committed to its first workforce reduction plan (the “April Plan”), which eliminated approximately 200 positions or 10% of the Company’s then-current workforce. In August 2022, the Company committed to an additional workforce reduction plan (the “August Plan”) as part of its broader efforts to continue to improve cost efficiency and better align its operating structure with its business activities. The August Plan includes the elimination of approximately 140 positions across the Company, or approximately 10% of the Company’s then-current workforce. In November 2022, the Company committed to an additional workforce reduction plan (the “November Plan”), which eliminated approximately 100 positions across the Company, or 6% of the Company’s then-current workforce. In January 2023, the Company committed to another workforce reduction plan (the “January Plan”). The January Plan includes the elimination of approximately 340 positions across the Company, or approximately 28% of the Company’s then-current workforce.
Executive Transition Costs
In January 2023, Marc Greenberg notified the Company of his intention to step down as Head of Finance of the Company, and as the Company’s principal financial officer under Section 16a-1(f) of the Exchange Act, effective following the filing on March 16, 2023 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. In connection with Mr. Greenberg’s resignation as Head of Finance, the Company entered into a discretionary retention bonus letter with Mr. Greenberg, which provides that the Company will pay Mr. Greenberg a bonus (the “Bonus Payment”) equal to the amount by which the aggregate value of: (i) his base salary, (ii) additional cash bonuses and (iii) value of any Blend equity awards that vest during such period of time, is less than $1,458,333 for period between September 1, 2022 through the March 31, 2023, provided Mr. Greenberg remains continuously employed by the Company through March 31, 2023. The Bonus Payment shall be made in cash or fully vested shares of Class A Common Stock of Blend of equivalent value, as determined by the Company’s Compensation Committee in its sole discretion. Mr. Greenberg’s last day of employment with Blend was April 3, 2023, and the Company recorded an accrual in the amount of $0.9 million related to the Bonus Payment as of March 31, 2023. In addition to the Bonus Payment, Mr. Greenberg was eligible to receive the Company’s standard severance package, which includes 9 weeks of severance and other benefits in accordance with Company practices.

On January 9, 2023, Crystal Sumner notified the Company of her intention to step down as Head of Legal, Compliance, and Risk and Corporate Secretary of the Company, effective on February 1, 2023. In connection with Ms. Sumner’s departure, the Company entered into a transition agreement with Ms. Sumner, pursuant to which Ms. Sumner was eligible to receive a transition payment equal to 9 weeks of Ms. Sumner’s current base salary in accordance with Company practices.
The restructuring charges attributable to the workforce reduction plans and executive transaction costs amounted to approximately $12.8 million for the three months ended March 31, 2023 and consisted primarily of cash expenditures for compensation, severance, and transition payments, employee benefits, payroll taxes and related facilitation costs.
The reconciliation of the restructuring liability balances is as follows:
(In thousands)
Restructuring liability as of December 31, 2021$— 
April Plan charge6,380 
August Plan charge5,935 
November Plan charge2,960 
Settlements(13,661)
Restructuring liability as of December 31, 20221,614 
January Plan charge11,676 
Executive transition costs1,107 
Settlements(13,398)
Restructuring liability as of March 31, 2023$999 
As of March 31, 2023, the $1.0 million remaining restructuring liability consists of accrued severance and executive transition costs, which are included in accrued compensation on the unaudited condensed consolidated balance sheet.
v3.23.1
Income Taxes
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company recorded a provision for income taxes of $0.1 million for the three months ended March 31, 2023 consisting of current tax expense related to state and foreign income taxes. The Company recorded a benefit for income taxes of $2.8 million for the three months ended March 31, 2022, consisting primarily of deferred tax benefit resulting from an adjustment to the valuation allowance.

The Company reassessed the ability to realize deferred tax assets by considering the available positive and negative evidence. As of March 31, 2023, the Company concluded that its net deferred tax assets are not more-likely-than-not to be realized and maintained a full valuation allowance against such net deferred tax assets.
As of March 31, 2023, the Company files tax returns in the U.S. federal and various state jurisdictions. Due to the Company’s U.S. net operating loss carryforwards, its income tax returns generally remain subject to examination by federal and most state tax authorities. Beginning in 2022, the Company’s subsidiary files income tax returns in India which are subject to examination by tax authorities in India.
v3.23.1
Net Loss Per Share
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Net Loss Per Share Net Loss Per Share
The Company has three classes of authorized common stock for which voting rights differ by class. The Company computes net loss per share using the two-class method required for multiple classes of common stock.

Under the two-class method, net income (loss) attributable to common stockholders for the period is allocated between shares of common stock and participating securities based upon their respective rights to receive dividends as if all earnings for the period had been distributed. Prior to the IPO, the Company considered any issued and outstanding Convertible Preferred Stock to be participating securities as the holders of the convertible preferred shares were entitled to dividends in priority to any dividend declared and paid to the holders of common stock. These participating securities did not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss for the periods presented was not allocated to the Company’s participating securities.

Basic net loss per share is computed by dividing net loss attributable to each class of stockholders by the weighted average number of shares of stock outstanding during the period, adjusted for options early exercised and subject to repurchase.

For the calculation of diluted net loss per share, net loss per share attributable to the Company for basic net loss per share is adjusted by the effect of dilutive securities, including awards issued under the Company’s equity compensation plans. Diluted net loss per share attributable to the Company is computed by dividing the resulting net loss attributable to the Company by the weighted average number of fully diluted common shares outstanding.

The following table presents the calculation of basic and diluted net loss per share for Class A and Class B common stock. No shares of Class C common stock were issued and outstanding during the periods presented.

Three Months Ended March 31,
20232022
Class A
Common		Class B
Common		Class A
Common		Class B
Common
(In thousands, except per share data)
Numerator:
 
 
 
 
Net loss attributable to Blend Labs, Inc. $(62,513)$(2,904)$(68,149)$(3,955)
Less: accretion of RNCI to redemption value(1,965)(91)(1,363)(79)
Net loss attributable to Blend Labs, Inc common stockholders$(64,478)$(2,995)$(69,512)$(4,034)
 
 
 
 
Denominator:
Weighted average common stock outstanding, basic and diluted230,725 10,719 217,696 12,633 
Net loss per share attributable to Blend Labs, Inc.:
Basic and diluted$(0.28)$(0.28)$(0.32)$(0.32)
The following potential shares of common stock were excluded from the computation of diluted net earnings per share attributable to the Company for the periods presented because including them would have been antidilutive as the Company has reported net loss for each of the periods presented:

As of March 31,
20232022
(In thousands)
Outstanding stock options23,414 28,722 
Early exercised options subject to repurchase367 1,188 
Non-plan Co-Founder and Head of Blend options
26,057 26,057 
Unvested restricted stock units12,864 8,012 
Unvested performance stock awards1,000 126 
Common stock warrants598 598 
   Total antidilutive securities64,300 64,703 
v3.23.1
Segment Information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s operating segments are defined in a manner consistent with how the Company manages its operations and how the CODM evaluates the results and allocates the Company’s resources.

In March 2023, the Company introduced Composable Origination, which gives customers the ability to easily configure or build custom workflows from a pre-built set of components. Financial services firms can experience Composable Origination by building custom solutions using the Blend Builder Platform, or with pre-built solutions such as Instant Home Equity, Deposit Accounts, Credit Cards, and others. In connection with this development, during the three months ended March 31, 2023, the Company changed its reporting segments as previously reported on its Annual Report on Form 10-K for the fiscal year ended December 31, 2022, to change the composition of the Blend Platform segment to exclude the Company’s software-enabled title component and instead report the software-enabled title component within the Title segment. This change reflects a corresponding change in how the Company’s CODM reviews financial information in order to allocate resources and assess performance. The comparative prior period amounts have been reclassified to conform to current period presentation.

Segment gross profit, which is the measure used by the Company’s CODM to evaluate the performance of and allocate resources to its segments, is calculated as segment revenue less segment cost of revenue. The Company does not evaluate performance or allocate resources based on segment assets, and therefore, such information is not presented.
The following table provides information about each reportable segment:

Three Months Ended March 31,
20232022
(in thousands)
Segment revenue:
Blend Platform$24,704 $32,576 
Title12,632 38,948 
Total revenue$37,336 $71,524 
Segment gross profit:
Blend Platform$16,095 $20,175 
Title(242)8,694 
Total gross profit$15,853 $28,869 
Operating expenses:
Research and development$26,257 $35,106 
Sales and marketing17,568 22,341 
General and administrative20,681 37,102 
Amortization of acquired intangible assets— 4,068 
Restructuring12,783 — 
Total operating expenses77,289 98,617 
Loss from operations(61,436)(69,748)
Interest expense(7,569)(5,558)
Other income (expense), net2,882 91 
Loss before income taxes$(66,123)$(75,215)
v3.23.1
Subsequent Events
 3 Months Ended
Mar. 31, 2023
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
On April 28, 2023, the Company received notice (the “Notice”) from the New York Stock Exchange (the “NYSE”) that it is not in compliance with the continued listing standard set forth in Section 802.01C of the NYSE’s Listed Company Manual because the average closing price of the Company’s Class A common stock was less than $1.00 per share over a consecutive 30 trading-day period.

The Company has a period of six months following the receipt of the Notice to regain compliance with the minimum price criteria. The Company may regain compliance with the minimum price criteria at any time during the six-month cure period if, on the last trading day of any calendar month during the cure period, the Company has (i) a closing share price of at least $1.00, and (ii) an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.

The Notice has no immediate impact on the listing of its Class A common stock, which will continue to be listed and traded on the NYSE during this period, subject to the Company’s compliance with the other continued listing requirements of the NYSE. The Notice does not affect the Company’s business operations or its reporting obligations with the Securities and Exchange Commission. The Company fully intends to regain compliance and will take necessary action to seek to ensure that the Class A common stock is not delisted.
v3.23.1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation, Principles of Consolidation, and Use of Estimates
The accompanying unaudited condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2023 and 2022, the unaudited condensed consolidated statements of redeemable noncontrolling interest and stockholders’ equity for the three months ended March 31, 2023 and 2022, and the unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2023 and 2022 reflect all adjustments that are of a normal, recurring nature and that are considered necessary for a fair presentation of the results for the periods shown in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial reporting periods. Accordingly, certain information and footnote disclosures have been condensed or omitted that would ordinarily be required under U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements include the accounts of Blend Labs, Inc. and its subsidiaries in which the Company holds a controlling financial interest. Noncontrolling interest represents the minority stockholder’s share of the net income or loss and equity in a consolidated subsidiary. All intercompany balances and transactions have been eliminated in consolidation.

During the three months ended March 31, 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 software-enabled title component was reclassified from the Blend Platform segment to Title segment (previously referred to as “Title365” segment). In addition, the Company revised its revenue disaggregation within the Blend Platform segment. Prior period amounts reported in the unaudited condensed consolidated interim financial statements and notes thereto have been reclassified to conform to current period presentation.
Use of Estimates The preparation of condensed 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 condensed 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 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 warrants, 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.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company places its cash with high credit quality and federally insured institutions. Cash with any one institution may be in excess of federally insured limits. The Company has not experienced any losses in such accounts and believes the exposure to credit risk is not significant. The Company considers all highly liquid investments with an original maturity date of three months or less at the time of purchase to be cash equivalents. As of March 31, 2023 and December 31, 2022, cash and cash equivalents consisted of cash, money market accounts, and highly liquid investments with original maturities less than 90 days. The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents approximate fair value due to the short-term nature of the maturities.
Restricted Cash Restricted CashThe Company has classified cash that is not available for use in its operations as restricted cash. Restricted cash consists primarily of collateral for letters of credit related to security deposits for the Company’s office facility lease arrangements.
Escrow or Trust Funds
Escrow or Trust Funds
The Company administers escrow and trust deposits held at third-party financial institutions representing funds received under real estate contracts, escrowed funds received under escrow agreements, and undisbursed amounts received for settlement of mortgage and home equity loans. These funds are not considered assets of the Company and, therefore, are not included in the accompanying unaudited condensed consolidated balance sheets; however, the Company remains contingently liable for the disposition of these funds on behalf of its customers. Cash held by the Company for these purposes was approximately $4.7 million, net of outstanding checks in transit of $26.8 million as of March 31, 2023, and approximately $5.0 million, net of outstanding checks in transit of $42.8 million as of December 31, 2022.
Trade and Other Receivables and Credit Loss Reserves Trade and Other Receivables and Credit Loss ReservesThe Company reports trade and other receivables net of the allowance for credit losses, in accordance with Accounting Standards Codification (“ASC”) 326, Financial Instruments—Credit Losses. ASC 326 requires an entity to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. The Company’s estimate of expected credit losses is determined based on expected lifetime loss rates calculated from historical data and adjusted for the impact of current and future conditions, such as the age of outstanding receivables, historical payment patterns, any known or expected changes to the customers’ ability to fulfill their payment obligations, or assessment of broader economic conditions that may impact the customers’ ability to pay the outstanding balances. As of March 31, 2023 and December 31, 2022, the reserve for expected credit losses was $0.3 million and $0.4 million, respectively. The provision for expected credit losses resulted in a reduction to the reserve of $0.1 million and an increase to the reserve of $0.3 million for the three months ended March 31, 2023 and 2022, respectively. The uncollectible portion of the receivables written off against reserve for expected credit losses was not material for the three months ended March 31, 2023 and 2022.
Concentrations of Credit Risk and Significant Customers
Concentrations of Credit Risk and Significant Customers
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. As of March 31, 2023, cash and cash equivalents of $46.2 million include $1.4 million cash in a foreign jurisdiction. As of December 31, 2022, cash and cash equivalents of $124.2 million include $1.3 million of cash in a foreign jurisdiction. Under its investment policy, the Company limits amounts invested in marketable securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the United States government. The Company is not exposed to any significant concentrations of credit risk from these financial instruments. The goals of the Company’s investment policy, in order of priority, are safety and preservation of principal and liquidity of investments sufficient to meet cash flow requirements. Collateral is not required for trade accounts receivable.
Title365 has agreements with insurance underwriters authorizing the Company to issue title insurance policies on behalf of the insurance underwriters. The policies are underwritten by two title insurance companies, which accounted for approximately 71% and 29% during the three months ended March 31, 2023, and 62% and 38% during the three months ended March 31, 2022, respectively, of title policy fees earned during the period.
Redeemable Noncontrolling Interest
Redeemable Noncontrolling Interest
The Company’s 90.1% ownership of Title365 results in recognition of 9.9% noncontrolling interest, which represents the minority stockholder’s share of the net income and equity in Title365. The Title365 stockholders agreement includes a provision whereby the Company has a call option to purchase the 9.9% noncontrolling interest at a purchase price equal to the greater of (1) $49.5 million plus an amount of interest calculated using an interest rate of 5.0% per annum compounding annually; or (2) 4.4 multiplied by the trailing 12-month EBITDA multiplied by the noncontrolling interest ownership percentage (the “Title365 Call Option”). The Title365 Call Option is exercisable beginning 2 years following the acquisition closing date. The noncontrolling interest holder also holds an option to compel the Company to purchase the remaining 9.9% noncontrolling interest at a price calculated in the same manner as the Title365 Call Option (the “Title365 Put Option”). The Title365 Put Option is exercisable beginning 5 years following the acquisition closing date. Neither the Title365 Call Option nor the Title365 Put Option have an expiration date. As the Title365 Put Option is not solely within the Company’s control, the Company classified this interest as redeemable noncontrolling interest (“RNCI”) within the mezzanine equity section of the consolidated balance sheets. The RNCI is accreted to the redemption value under the interest method from the acquisition date through the date the Title365 Put Option becomes exercisable. At each balance sheet date, the RNCI is reported at the greater of the initial carrying amount adjusted for the RNCI's share of earnings or losses and other comprehensive income or loss, or its accreted redemption value. The changes in the redemption amount are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. For each reporting period, the entire periodic change in the redemption amount is reflected in the computation of net loss per share under the two-class method as being akin to a dividend. As of March 31, 2023 and December 31, 2022, the redemption amount of the Title365 Put Option as if it was currently redeemable was $53.8 million and $53.2 million, respectively.
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted
Recently Adopted Accounting Standards
In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848), with amendments in 2021. This update provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Under this update, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In October 2022, the Company entered into the first amendment to the Credit Agreement (as defined in Note 10, “Debt Financing”), which replaced the reference rate from LIBOR to the Secured Overnight Financing Rate ("SOFR") as a result of the expected cessation of LIBOR and adopted ASU 2020-04 and elected the optional expedient. The adoption did not have a material impact on the Company’s consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities with Customers (Topic 805). This guidance requires an acquirer in a business combination to use principles in ASC 606 to recognize and measure contract assets and liabilities rather than fair value. The Company adopted ASU No. 2021-08 on January 1, 2023. The adoption did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted
In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). The guidance simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20 that requires entities to account for beneficial conversion features and cash conversion features in equity separately from the host convertible debt or preferred stock. The guidance is effective for the Company for annual reporting periods, and interim reporting periods within those annual periods, beginning January 1, 2024. ASU 2020-06 should be applied on a full or modified retrospective basis and early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820). This update clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. The guidance is effective for the Company for annual reporting periods, and interim reporting periods within those annual periods, beginning January 1, 2024. Early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.
Cloud Computing Arrangements
Cloud Computing Arrangements
The Company capitalizes certain implementation costs incurred during the application development stage under cloud computing arrangements that are service contracts. The carrying value of the capitalized costs was $0.7 million as of March 31, 2023, of which $0.6 million is presented within prepaid expenses and other current assets, and $0.1 million is presented within other non-current assets on the unaudited condensed consolidated balance sheets. The carrying value of the capitalized costs was $0.9 million as of December 31, 2022, of which $0.7 million is presented within prepaid expenses and other current assets, and $0.2 million is presented within other non-current assets on the unaudited condensed consolidated balance sheets. Amortization of capitalized implementation costs is recognized on a straight-line basis over the term of the associated hosting arrangement when it is ready for its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred.
Investment in Non-Marketable Equity Securities
Investments in Non-Marketable Equity Securities
The Company holds an equity investment in a privately-held company in exchange for 103,611 shares of Series Growth 1a Preferred Stock. This investment in the equity securities without readily determinable fair value is measured at cost, less impairment, if any, plus or minus observable price changes in orderly transactions of an identical or similar investment of the same issuer. The carrying value of this investment was $5.4 million as of March 31, 2023 and December 31, 2022, respectively. There were no impairments or observable price changes for the three months ended March 31, 2023 and 2022.
Title and Escrow Loss Reserve Title and Escrow Loss Reserve The Company performs title insurance services and issues a title insurance policy as an agent for a third-party title insurance underwriter. The Company pays part of the title insurance policy fee charged to its customers to the third-party title insurance underwriter as compensation for accepting the risk associated with issuing the title policy. The Company may incur a loss if it does not follow the guidelines outlined in the agency agreements, and in the state of California, the Company is obligated to reimburse the insurance company for up to the first $5,000 in losses related to a claim on a policy issued through Title365. Reserves for estimated future losses on policies issued are established at the time the title insurance revenue is recognized in accordance with ASC 450, Contingencies, and are based on claim loss history, industry trends, legal environment, geographic considerations, and the type of title insurance policies written. As of March 31, 2023, title and escrow loss reserves were $1.8 million, of which $0.2 million, is presented within other current liabilities and $1.6 million is presented within other non-current liabilities on the consolidated balance sheets. As of December 31, 2022, title and escrow loss reserves were $2.1 million, of which $0.2 million is presented within other current liabilities and $1.9 million is presented within other non-current liabilities on the consolidated balance sheets.
Segment Information
The Company’s operating segments are defined in a manner consistent with how the Company manages its operations and how the CODM evaluates the results and allocates the Company’s resources.

In March 2023, the Company introduced Composable Origination, which gives customers the ability to easily configure or build custom workflows from a pre-built set of components. Financial services firms can experience Composable Origination by building custom solutions using the Blend Builder Platform, or with pre-built solutions such as Instant Home Equity, Deposit Accounts, Credit Cards, and others. In connection with this development, during the three months ended March 31, 2023, the Company changed its reporting segments as previously reported on its Annual Report on Form 10-K for the fiscal year ended December 31, 2022, to change the composition of the Blend Platform segment to exclude the Company’s software-enabled title component and instead report the software-enabled title component within the Title segment. This change reflects a corresponding change in how the Company’s CODM reviews financial information in order to allocate resources and assess performance. The comparative prior period amounts have been reclassified to conform to current period presentation.

Segment gross profit, which is the measure used by the Company’s CODM to evaluate the performance of and allocate resources to its segments, is calculated as segment revenue less segment cost of revenue. The Company does not evaluate performance or allocate resources based on segment assets, and therefore, such information is not presented.
v3.23.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Schedule of Concentration of Credit Risk
The following customer, which generates revenue in both Blend Platform and Title segments, comprised 10% or more of the Company’s revenue for the following periods:
Three Months Ended March 31,
Customer
20232022
A18%36%

The following customers comprised 10% or more of the Company’s trade and unbilled receivables:
Customer
March 31, 2023December 31, 2022
A12%12%
B11%10%
v3.23.1
Revenue Recognition and Contract Costs (Tables)
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue The following table provides information about disaggregated revenue by service offering:
Three Months Ended March 31,
20232022
(In thousands)
Blend Platform revenue:
Mortgage Suite$17,795 $26,753 
Consumer Banking Suite5,175 3,851 
Total Software revenue22,970 30,604 
Professional services1,734 1,972 
Total Blend Platform revenue24,704 32,576 
Title revenue:
Traditional9,478 38,731 
Software-enabled3,154 217 
Total Title revenue12,632 38,948 
Total revenue$37,336 $71,524 
Schedule of Contract Balances
The following table provides information about contract assets and contract liabilities from contracts with customers:

Contract Accounts
Balance Sheet Line Reference
March 31, 2023December 31, 2022
(In thousands)
Contract assets—currentPrepaid expenses and other current assets$791 $1,252 
Contract liabilities—currentDeferred revenue, current$(13,046)$(8,695)
Schedule of Remaining Performance Obligations The expected timing of recognizing revenue for the transaction price allocated to the remaining performance obligations as of March 31, 2023 was as follows:
(In thousands)
Within one year$21,004 
More than one year22,858 
Total transaction price allocated to the remaining performance obligations$43,862 
v3.23.1
Investments and Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available For Sale Securities
The carrying amount, unrealized gain and loss, and fair value of investments by major security type were as follows:

March 31, 2023
Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Fair Value
Fair Value Hierarchy
(In thousands)
Cash equivalents: 
 
 
 
Money market funds$3,791 $— $— $3,791 Level 1
Commercial paper16,258 — — 16,258 Level 2
U.S. treasury and agency securities7,186 — — 7,186 Level 2
Total cash equivalents27,235 — — 27,235 
Marketable securities:
U.S. treasury and agency securities150,710 188 (175)150,723 Level 2
Commercial paper39,583 — — 39,583 Level 2
Debt securities70,482 38 (164)70,356 Level 2
Total marketable securities260,775 226 (339)260,662 
Restricted cash, non-current:
Certificates of deposit335 — — 335 Level 2
Total$288,345 $226 $(339)$288,232 

December 31, 2022
Amortized
Cost
Gross
Unrealized
Loss
Fair Value
Fair Value Hierarchy
(In thousands)
Cash equivalents: 
 
 
Money market funds$26,389 $— $26,389 Level 1
Commercial paper29,242 — 29,242 Level 2
U.S. treasury and agency securities12,163 — 12,163 Level 2
Total cash equivalents67,794 — 67,794 
Marketable securities:
U.S. treasury and agency securities197,734 (918)196,816 Level 2
Commercial paper23,686 — 23,686 Level 2
Debt securities4,462 (16)4,446 Level 2
Total marketable securities225,882 (934)224,948 
Other investments:
Certificates of deposit5,000 — 5,000 Level 2
Restricted cash, non-current:
Certificates of deposit335 — 335 Level 2
Total$299,011 $(934)$298,077 
The following table summarizes the stated maturities of the Company’s marketable securities:
March 31, 2023December 31, 2022
(In thousands)
Due within one year$181,933 $201,921 
Due after one year through two years78,729 28,027 
Total marketable securities$260,662 $229,948 
v3.23.1
Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Assets
Intangible assets consisted of the following:

March 31, 2023
Weighted Average Remaining AmortizationGross AmountAccumulated AmortizationNet Book Value
(In years)(In thousands)
Intangible assets subject to amortization:
Domain name8.4$210 $(87)$123 
Indefinite-lived intangible assets:
Acquired licenses2,000 — 2,000 
Total intangible assets, net$2,210 $(87)$2,123 
December 31, 2022
Weighted Average Remaining AmortizationGross AmountAccumulated AmortizationImpairment ChargeNet Book Value
(In years)(In thousands)
Intangible assets subject to amortization:
Acquired customer relationships—$179,000 $(16,548)$(162,452)$— 
Internally developed software—11,391 (11,391)— — 
Domain name8.6210 (83)— 127 
Total finite-lived intangible assets, net8.6190,601 (28,022)(162,452)127 
Indefinite-lived intangible assets:
Acquired licenses2,000 — — 2,000 
Total intangible assets, net$192,601 $(28,022)$(162,452)$2,127 
Schedule of Finite-Lived Intangible Assets
Intangible assets consisted of the following:

March 31, 2023
Weighted Average Remaining AmortizationGross AmountAccumulated AmortizationNet Book Value
(In years)(In thousands)
Intangible assets subject to amortization:
Domain name8.4$210 $(87)$123 
Indefinite-lived intangible assets:
Acquired licenses2,000 — 2,000 
Total intangible assets, net$2,210 $(87)$2,123 
December 31, 2022
Weighted Average Remaining AmortizationGross AmountAccumulated AmortizationImpairment ChargeNet Book Value
(In years)(In thousands)
Intangible assets subject to amortization:
Acquired customer relationships—$179,000 $(16,548)$(162,452)$— 
Internally developed software—11,391 (11,391)— — 
Domain name8.6210 (83)— 127 
Total finite-lived intangible assets, net8.6190,601 (28,022)(162,452)127 
Indefinite-lived intangible assets:
Acquired licenses2,000 — — 2,000 
Total intangible assets, net$192,601 $(28,022)$(162,452)$2,127 
v3.23.1
Significant Balance Sheet Components (Tables)
 3 Months Ended
Mar. 31, 2023
Supplemental Balance Sheet Information [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following:
March 31, 2023December 31, 2022
(In thousands)
Contract assets$791 $1,252 
Deferred contract costs3,051 3,518 
Prepaid software5,383 5,472 
Prepaid insurance1,976 3,646 
Prepaid other6,514 2,184 
Recording fee advances535 857 
Other current assets5,155 2,302 
Total prepaid expenses and other current assets$23,405 $19,231 
Schedule of Property and Equipment, Net Property and equipment, net, consisted of the following:
March 31, 2023December 31, 2022
(In thousands)
Computer and software$6,123 $5,843 
Furniture and fixtures1,816 1,886 
Leasehold improvements4,892 4,884 
Total property and equipment, gross12,831 12,613 
Accumulated depreciation and amortization(7,423)(6,871)
Total property and equipment, net$5,408 $5,742 
Schedule of Other Current Liabilities
Other current liabilities consisted of the following:

March 31, 2023December 31, 2022
(In thousands)
Accrued expenses$2,191 $3,051 
Accrued interest— 73
Accrued professional fees2,533 2,615
Accrued connectivity fees2,761 3,143
Accrued litigation contingencies700 700
Operating lease liabilities, current portion4,134 4,089
Other1,587 1,788 
Total other current liabilities$13,906 $15,459 
Schedule of Other Long-Term Liabilities
Other long-term liabilities consisted of the following:

March 31, 2023December 31, 2022
(In thousands)
Early exercise liabilities$1,130 $2,002 
Payroll tax liabilities1,501 1,354
Other liabilities1,776 2,122 
Total other long-term liabilities$4,407 $5,478 
v3.23.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Schedule of Maturities of Operating Lease Liabilities
As of March 31, 2023, maturities of operating lease liabilities were as follows:

(In thousands)
Remainder of 2023$3,738 
20245,109 
20254,254 
20261,304 
20271,094 
Thereafter1,259 
Total lease payments16,758 
Less: imputed interest(2,389)
Total operating lease liabilities$14,369 
v3.23.1
Debt Financing (Tables)
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Debt
Debt consisted of the following:

March 31, 2023December 31, 2022
(In thousands)
Term Loan - principal$225,000 $225,000 
Term Loan - exit fee4,500 4,500 
Less: unamortized debt discounts and issuance costs(11,994)(12,699)
Total debt$217,506 $216,801 
v3.23.1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Option Activity
A summary of the stock option activity is as follows:
Number of
options
Weighted
average
exercise
price
Weighted
average
remaining
contractual
life
Aggregate
intrinsic
value
(In thousands)(In years)(In thousands)
Balance as of December 31, 202225,337 $5.18 7.14$3,076 
Granted— 
 
 
Exercised(34)$1.28 
 
$— 
Cancelled and forfeited(1,889)$9.01 
 
 
Balance as of March 31, 202323,414 $4.88 5.78$897 
Vested and exercisable as of March 31, 202315,470 $4.52 4.95$897 
Schedule of Valuation Assumptions
The estimated grant date fair values of the employee stock options granted under the 2012 Plan and 2021 Plan were calculated using the Black-Scholes Merton Option pricing model based on the following weighted average assumptions:

Three Months Ended March 31, 2022
Expected term (years)5.28
Expected volatility49.82%
Risk-free interest rate1.82%
Expected dividend yield—
The estimated fair value of the first tranche as of the modification date was determined using Black-Scholes Merton Option pricing model, which resulted in fair value of $12.27 per share based on the following assumptions:

Fair value of common stock$18.00
Expected term (years)7.44
Expected volatility45.00%
Risk-free interest rate1.71%
Expected dividend yield—

The remaining tranches were valued using a Monte Carlo simulation model. The weighted average estimated fair value of the remaining tranches as of the modification date was $3.80 per share based on the following assumptions:
Fair value of common stock$18.00
Remaining contractual term (years)14.75
Expected volatility40.00%
Risk-free interest rate1.71%
Expected dividend yield—
Schedule of RSU Activity
A summary of the Company’s RSU activity and related information is as follows:

Number of RSUs
Weighted
average
grant date fair value per share
(In thousands)
Balance as of December 31, 202212,392 $3.02 
Granted5,721 $1.50 
Vested(4,442)$4.15 
Cancelled and forfeited(807)$2.86 
Balance as of March 31, 202312,864 $1.96 
Schedule of Stock Based Compensation Expense
The Company’s stock-based compensation expense was as follows:

Three Months Ended March 31,
20232022
(In thousands)
Cost of revenue$488 $493 
Research and development8,131 9,866 
Sales and marketing2,783 2,523 
General and administrative4,990 11,430 
Total$16,392 $24,312 
v3.23.1
Restructuring (Tables)
 3 Months Ended
Mar. 31, 2023
Restructuring and Related Activities [Abstract]  
Schedule of Reconciliation of the Restructuring Liability Balances
The reconciliation of the restructuring liability balances is as follows:
(In thousands)
Restructuring liability as of December 31, 2021$— 
April Plan charge6,380 
August Plan charge5,935 
November Plan charge2,960 
Settlements(13,661)
Restructuring liability as of December 31, 20221,614 
January Plan charge11,676 
Executive transition costs1,107 
Settlements(13,398)
Restructuring liability as of March 31, 2023$999 
v3.23.1
Net Loss Per Share (Tables)
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share
The following table presents the calculation of basic and diluted net loss per share for Class A and Class B common stock. No shares of Class C common stock were issued and outstanding during the periods presented.

Three Months Ended March 31,
20232022
Class A
Common		Class B
Common		Class A
Common		Class B
Common
(In thousands, except per share data)
Numerator:
 
 
 
 
Net loss attributable to Blend Labs, Inc. $(62,513)$(2,904)$(68,149)$(3,955)
Less: accretion of RNCI to redemption value(1,965)(91)(1,363)(79)
Net loss attributable to Blend Labs, Inc common stockholders$(64,478)$(2,995)$(69,512)$(4,034)
 
 
 
 
Denominator:
Weighted average common stock outstanding, basic and diluted230,725 10,719 217,696 12,633 
Net loss per share attributable to Blend Labs, Inc.:
Basic and diluted$(0.28)$(0.28)$(0.32)$(0.32)
Schedule of Antidilutive Securities
The following potential shares of common stock were excluded from the computation of diluted net earnings per share attributable to the Company for the periods presented because including them would have been antidilutive as the Company has reported net loss for each of the periods presented:

As of March 31,
20232022
(In thousands)
Outstanding stock options23,414 28,722 
Early exercised options subject to repurchase367 1,188 
Non-plan Co-Founder and Head of Blend options
26,057 26,057 
Unvested restricted stock units12,864 8,012 
Unvested performance stock awards1,000 126 
Common stock warrants598 598 
   Total antidilutive securities64,300 64,703 
v3.23.1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Schedule of Segment Information
The following table provides information about each reportable segment:

Three Months Ended March 31,
20232022
(in thousands)
Segment revenue:
Blend Platform$24,704 $32,576 
Title12,632 38,948 
Total revenue$37,336 $71,524 
Segment gross profit:
Blend Platform$16,095 $20,175 
Title(242)8,694 
Total gross profit$15,853 $28,869 
Operating expenses:
Research and development$26,257 $35,106 
Sales and marketing17,568 22,341 
General and administrative20,681 37,102 
Amortization of acquired intangible assets— 4,068 
Restructuring12,783 — 
Total operating expenses77,289 98,617 
Loss from operations(61,436)(69,748)
Interest expense(7,569)(5,558)
Other income (expense), net2,882 91 
Loss before income taxes$(66,123)$(75,215)
v3.23.1
Summary of Significant Accounting Policies - Narrative (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
Jun. 30, 2021
Noncontrolling Interest [Line Items]        
Restricted cash, non-current $ 5,358   $ 5,358  
Escrow deposit net outstanding amount 4,700   5,000  
Escrow deposits 26,800   42,800  
Reserve for credit loss 300   400  
Write off for credit losses 100 $ 300    
Redemption amount $ 53,800   $ 53,200  
Title        
Noncontrolling Interest [Line Items]        
Interest acquired       90.10%
Title        
Noncontrolling Interest [Line Items]        
Ownership percentage 9.90%      
Purchase price $ 49,500      
Interest rate 5.00%      
EBITDA ratio 4.4      
EBITDA period 12 months      
Title | Call Option        
Noncontrolling Interest [Line Items]        
Exercisable period 2 years      
Title | Put Option        
Noncontrolling Interest [Line Items]        
Exercisable period 5 years      
v3.23.1
Summary of Significant Accounting Policies - Schedule of Concentration of Credit Risk (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Concentration Risk [Line Items]      
Cash and cash equivalents $ 46,195 $ 167,666 $ 124,199
Revenue | Customer Concentration Risk | Insurance Company 1      
Concentration Risk [Line Items]      
Concentration risk percentage 71.00% 62.00%  
Revenue | Customer Concentration Risk | Insurance Company 2      
Concentration Risk [Line Items]      
Concentration risk percentage 29.00% 38.00%  
Revenue | Customer Concentration Risk | Customer A      
Concentration Risk [Line Items]      
Concentration risk percentage 18.00% 36.00%  
Accounts Receivable | Customer Concentration Risk | Customer A      
Concentration Risk [Line Items]      
Concentration risk percentage 12.00%   12.00%
Accounts Receivable | Customer Concentration Risk | Customer B      
Concentration Risk [Line Items]      
Concentration risk percentage 11.00%   10.00%
Foreign Jurisdiction      
Concentration Risk [Line Items]      
Cash and cash equivalents $ 1,400   $ 1,300
v3.23.1
Revenue Recognition and Contract Costs - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Disaggregation of Revenue [Line Items]    
Revenue $ 37,336 $ 71,524
Blend Platform    
Disaggregation of Revenue [Line Items]    
Revenue 24,704 32,576
Software    
Disaggregation of Revenue [Line Items]    
Revenue 22,970 30,604
Mortgage Suite    
Disaggregation of Revenue [Line Items]    
Revenue 17,795 26,753
Consumer Banking Suite    
Disaggregation of Revenue [Line Items]    
Revenue 5,175 3,851
Professional services    
Disaggregation of Revenue [Line Items]    
Revenue 1,734 1,972
Title    
Disaggregation of Revenue [Line Items]    
Revenue 12,632 38,948
Traditional    
Disaggregation of Revenue [Line Items]    
Revenue 9,478 38,731
Software-enabled    
Disaggregation of Revenue [Line Items]    
Revenue $ 3,154 $ 217
v3.23.1
Revenue Recognition and Contract Costs - Schedule of Contract Balances (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Contract assets—current $ 791 $ 1,252
Contract liabilities—current $ (13,046) $ (8,695)
v3.23.1
Revenue Recognition and Contract Costs - Schedule of Remaining Performance Obligations (Details)
$ in Thousands
Mar. 31, 2023
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 43,862
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 21,004
Remaining performance obligations, period 9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 22,858
Remaining performance obligations, period 1 year
v3.23.1
Revenue Recognition and Contract Costs - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]      
Contract assets, noncurrent $ 0   $ 0
Contract liabilities, noncurrent 0   0
Revenue recognized 3,500,000 $ 4,400,000  
Revenue from performance obligations satisfied in previous periods 800,000    
Capitalized Contract Cost [Line Items]      
Unamortized deferred contract costs 4,500,000   5,200,000
Unamortized deferred contract costs, current 3,051,000   3,518,000
Unamortized deferred contract costs, noncurrent 1,474,000   1,691,000
Amortization of deferred contract costs 984,000 $ 1,244,000  
Prepaid Expenses and Other Current Assets      
Capitalized Contract Cost [Line Items]      
Unamortized deferred contract costs, current $ 3,000,000   $ 3,500,000
v3.23.1
Investments and Fair Value Measurements - Schedule of Available For Sale Securities (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Debt Securities, Available-for-sale [Line Items]      
Cash and cash equivalents $ 46,195 $ 124,199 $ 167,666
Available-for-sale debt securities, amortized cost 288,345 299,011  
Gross unrealized gain 226    
Gross unrealized loss (339) (934)  
Restricted cash, non-current 5,358 5,358  
Available-for-sale debt securities, fair value 288,232 298,077  
Level 1 | Money market funds      
Debt Securities, Available-for-sale [Line Items]      
Cash and cash equivalents 3,791 26,389  
Level 2 | Commercial paper      
Debt Securities, Available-for-sale [Line Items]      
Cash and cash equivalents 16,258 29,242  
Level 2 | U.S. treasury and agency securities      
Debt Securities, Available-for-sale [Line Items]      
Cash and cash equivalents 7,186 12,163  
U.S. treasury and agency securities | Level 2      
Debt Securities, Available-for-sale [Line Items]      
Amortized cost 150,710 197,734  
Gross unrealized gain 188    
Gross unrealized loss (175) (918)  
Fair Value 150,723 196,816  
Commercial paper | Level 2      
Debt Securities, Available-for-sale [Line Items]      
Amortized cost 39,583 23,686  
Gross unrealized gain 0    
Gross unrealized loss 0 0  
Fair Value 39,583 23,686  
Debt securities | Level 2      
Debt Securities, Available-for-sale [Line Items]      
Amortized cost 70,482 4,462  
Gross unrealized gain 38    
Gross unrealized loss (164) (16)  
Fair Value 70,356 4,446  
Certificates of deposit | Level 2      
Debt Securities, Available-for-sale [Line Items]      
Other investments   5,000  
Restricted cash, non-current 335 335  
Cash equivalents:      
Debt Securities, Available-for-sale [Line Items]      
Cash and cash equivalents 27,235 67,794  
Marketable securities      
Debt Securities, Available-for-sale [Line Items]      
Amortized cost 260,775 225,882  
Gross unrealized gain 226    
Gross unrealized loss (339) (934)  
Fair Value $ 260,662 $ 224,948  
v3.23.1
Investments and Fair Value Measurements - Schedule of Debt Maturities (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
USD ($)
position
Mar. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
position
Investments, Debt and Equity Securities [Abstract]      
Due within one year $ 181,933   $ 201,921
Due after one year through two years 78,729   28,027
Total marketable securities $ 260,662   $ 229,948
Number of investment positions that are in an unrealized loss position | position 52   38
Interest income $ 2,900 $ 200  
Interest receivable $ 800   $ 900
v3.23.1
Intangible Assets - Schedule of Indefinite-Lived and Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Amortization   8 years 7 months 6 days
Gross Amount   $ 190,601
Accumulated Amortization $ (87) (28,022)
Impairment Charge   (162,452)
Net Book Value   127
Total intangible assets, gross amount 2,210 192,601
Total intangible assets, net 2,123 2,127
Acquired licenses    
Finite-Lived Intangible Assets [Line Items]    
Acquired licenses $ 2,000 2,000
Acquired customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount   179,000
Accumulated Amortization   (16,548)
Impairment Charge   (162,452)
Net Book Value   0
Internally developed software    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount   11,391
Accumulated Amortization   (11,391)
Impairment Charge   0
Net Book Value   $ 0
Domain name    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Amortization 8 years 4 months 24 days 8 years 7 months 6 days
Gross Amount $ 210 $ 210
Accumulated Amortization (87) (83)
Impairment Charge   0
Net Book Value $ 123 $ 127
v3.23.1
Intangible Assets - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Amortization of acquired intangible assets $ 4.1
v3.23.1
Significant Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Supplemental Balance Sheet Information [Abstract]    
Contract assets $ 791 $ 1,252
Deferred contract costs 3,051 3,518
Prepaid software 5,383 5,472
Prepaid insurance 1,976 3,646
Prepaid other 6,514 2,184
Recording fee advances 535 857
Other current assets 5,155 2,302
Total prepaid expenses and other current assets $ 23,405 $ 19,231
v3.23.1
Significant Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Total property and equipment, gross $ 12,831   $ 12,613
Accumulated depreciation and amortization (7,423)   (6,871)
Total property and equipment, net 5,408   5,742
Depreciation expense 600 $ 500  
Computer and software      
Property, Plant and Equipment [Line Items]      
Total property and equipment, gross 6,123   5,843
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Total property and equipment, gross 1,816   1,886
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Total property and equipment, gross $ 4,892   $ 4,884
v3.23.1
Significant Balance Sheet Components - Note Receivable (Narrative) (Details) - USD ($)
$ in Millions
 1 Months Ended
Jan. 31, 2021
Mar. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Potential merger consideration   $ 500.0
Series Seed Preferred Stock    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Shares issuable in debt conversion (in shares) 4,500,000  
Notes Receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Account receivable $ 3.0  
Interest rate 2.00%  
Term of receivable 60 months  
v3.23.1
Significant Balance Sheet Components - Investments in Non-Marketable Equity Securities (Narrative) (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Supplemental Balance Sheet Information [Abstract]      
Investment shares (in shares)     103,611
Carrying value $ 5.4 $ 5.4  
v3.23.1
Significant Balance Sheet Components - Cloud Computing Arrangements (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Costs incurred, development costs $ 0.7 $ 0.9
Prepaid Expenses and Other Current Assets    
Property, Plant and Equipment [Line Items]    
Costs incurred, development costs 0.6 0.7
Other Noncurrent Assets    
Property, Plant and Equipment [Line Items]    
Costs incurred, development costs $ 0.1 $ 0.2
v3.23.1
Significant Balance Sheet Components - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Supplemental Balance Sheet Information [Abstract]    
Accrued expenses $ 2,191 $ 3,051
Accrued interest 0 73
Accrued professional fees 2,533 2,615
Accrued connectivity fees 2,761 3,143
Accrued litigation contingencies 700 700
Operating lease liabilities, current portion 4,134 4,089
Other 1,587 1,788
Total other current liabilities $ 13,906 $ 15,459
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total other current liabilities Total other current liabilities
v3.23.1
Significant Balance Sheet Components - Schedule of Other Long-Term Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Supplemental Balance Sheet Information [Abstract]    
Early exercise liabilities $ 1,130 $ 2,002
Payroll tax liabilities 1,501 1,354
Other liabilities 1,776 2,122
Total other long-term liabilities $ 4,407 $ 5,478
v3.23.1
Significant Balance Sheet Components - Title and Escrow Loss Reserve (Narrative) (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Loss contingency accrual $ 1.8 $ 2.1
Other Current Liabilities    
Property, Plant and Equipment [Line Items]    
Loss contingency accrual 0.2 0.2
Other Noncurrent Liabilities    
Property, Plant and Equipment [Line Items]    
Loss contingency accrual $ 1.6 $ 1.9
v3.23.1
Leases - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Leases [Abstract]      
Restricted cash related to lease obligations $ 5.0   $ 5.0
Operating lease costs 1.7 $ 1.8  
Variable lease costs $ 0.5 0.5  
Weighted average remaining operating lease term 3 years 7 months 6 days   3 years 9 months 18 days
Weighted average discount rate 7.90%   7.90%
Cash paid $ 1.3 $ 1.3  
v3.23.1
Leases - Schedule of Maturities of Operating Lease Liabilities (Details)
$ in Thousands
Mar. 31, 2023
USD ($)
Leases [Abstract]  
Remainder of 2023 $ 3,738
2024 5,109
2025 4,254
2026 1,304
2027 1,094
Thereafter 1,259
Total lease payments 16,758
Less: imputed interest (2,389)
Total operating lease liabilities $ 14,369
v3.23.1
Commitments and Contingencies (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Loss Contingencies [Line Items]    
Accrued litigation contingencies $ 700 $ 700
Other Current Liabilities    
Loss Contingencies [Line Items]    
Accrued litigation contingencies $ 700 $ 700
v3.23.1
Debt Financing - Schedule of Debt (Details) - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Total debt $ 217,506,000 $ 216,801,000  
Term Loan | Line of Credit      
Debt Instrument [Line Items]      
Term Loan - principal 225,000,000 225,000,000 $ 225,000,000
Term Loan - exit fee 4,500,000 4,500,000  
Less: unamortized debt discounts and issuance costs (11,994,000) (12,699,000)  
Total debt $ 217,506,000 $ 216,801,000  
v3.23.1
Debt Financing - Narrative (Details) - USD ($)
 3 Months Ended
Jun. 30, 2021
Mar. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]        
Fair value of debt   $ 219,400,000 $ 221,100,000  
Series G Preferred Stock        
Debt Instrument [Line Items]        
Number shares warrants can purchase (in shares) 598,431      
Exercise price of warrants (in dollars per share) $ 13.827822      
Expiration period   10 years    
Line of Credit        
Debt Instrument [Line Items]        
Exit fee percentage   2.00%    
Line of Credit | SOFR        
Debt Instrument [Line Items]        
Variable rate 7.50%      
Floor rate 1.00%      
Line of Credit | Base Rate        
Debt Instrument [Line Items]        
Variable rate 6.50%      
Floor rate 2.00%      
Unused commitment fee percentage 0.50%      
Line of Credit | Federal Funds Effective Rate        
Debt Instrument [Line Items]        
Variable rate 0.50%      
Line of Credit | Term Loan        
Debt Instrument [Line Items]        
Maximum borrowing capacity   $ 225,000,000 $ 225,000,000 $ 225,000,000
Debt issuance costs $ 5,700,000      
Debt discount   6,800,000    
Fee amount   $ 4,500,000    
Effective percentage   13.96%    
Line of Credit | Revolving Credit Facility        
Debt Instrument [Line Items]        
Maximum borrowing capacity       25,000,000
Debt issuance costs   $ 500,000    
Line of Credit | Revolving Credit Facility | Letter Of Credit Sublimit        
Debt Instrument [Line Items]        
Maximum borrowing capacity       10,000,000
Line of Credit | Revolving Credit Facility | Swingline Sub-Facility        
Debt Instrument [Line Items]        
Maximum borrowing capacity       $ 5,000,000
v3.23.1
Stockholder’s Equity (Details)
 3 Months Ended
Mar. 31, 2023
class
vote
shares
Dec. 31, 2022
shares
Class of Stock [Line Items]    
Number of classes of stock | class 3  
Preferred stock, shares authorized (in shares) 200,000,000 200,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Class A Common Stock    
Class of Stock [Line Items]    
Voting rights | vote 1  
Class B Common Stock    
Class of Stock [Line Items]    
Voting rights | vote 40  
Shares converted (in shares) 1  
v3.23.1
Stock-Based Compensation - 2012 Stock Option Plan (Narrative) (Details) - 2012 Stock Plan
 3 Months Ended
Mar. 31, 2023
Outstanding stock options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percentage of common stock value at grant date 100.00%
Vesting period 4 years
Incentive Stock Options | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percentage of common stock value at grant date 110.00%
Stockholder percentage 10.00%
v3.23.1
Stock-Based Compensation - 2021 Equity Incentive Plan (Narrative) (Details) - shares
 1 Months Ended
Jan. 01, 2022
Jul. 31, 2021
2021 Equity Incentive Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares authorized (in shares)   23,000,000
Additional shares authorized (in shares) 34,500,000  
Additional shares authorized as a percentage of outstanding common stock 0.05  
2021 Equity Incentive Plan | Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period   1 year
2021 Equity Incentive Plan | Maximum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period   4 years
2012 Stock Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares authorized (in shares)   36,101,718
v3.23.1
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Weighted average exercise price      
Exercised $ 0    
Weighted average grant-date fair value of options granted (in dollars per share)   $ 3.68  
Vesting of early exercised stock options $ 758 $ 1,913  
2012 Stock Plan      
Number of options      
Beginning Balance (in shares) 25,337,000    
Granted (in shares) 0    
Exercised (in shares) (34,000)    
Cancelled and forfeited (in shares) (1,889,000)    
Ending Balance (in shares) 23,414,000   25,337,000
Vested and exercisable (in shares) 15,470,000    
Weighted average exercise price      
Beginning Balance (in dollars per share) $ 5.18    
Granted (in dollars per share)    
Vested (in dollars per share) 1.28    
Cancelled and forfeited (in dollars per share) 9.01    
Ending Balance (in dollars per share) 4.88   $ 5.18
Vested and exercisable (in dollars per share) $ 4.52    
Weighted average remaining contractual life (years) 5 years 9 months 10 days   7 years 1 month 20 days
Weighted average remaining contractual life, vested and exercisable (years) 4 years 11 months 12 days    
Aggregate intrinsic value $ 897   $ 3,076
Aggregate intrinsic value, vested and exercisable $ 897    
2021 Equity Incentive Plan      
Weighted average exercise price      
Number of options unvested (in shares) 7,944   10,717
Weighted average grant-date fair value of options unvested (in dollars per share) $ 3.11   $ 3.61
Vesting of early exercised stock options $ 3,900 9,000  
Aggregate intrinsic value of options exercised   $ 8,000  
v3.23.1
Stock-Based Compensation - Schedule of Valuation Assumptions (Details) - $ / shares
 1 Months Ended 3 Months Ended
Mar. 31, 2021
Mar. 31, 2023
Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yield   0.00%  
2012 Stock Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vested and exercisable (in dollars per share)   $ 4.52  
Stock Options | Non-employee | Tranche One      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 7 years 5 months 8 days    
Expected volatility 45.00%    
Risk-free interest rate 1.71%    
Expected dividend yield 0.00%    
Vested and exercisable (in dollars per share) $ 12.27    
Fair value of common stock (in dollars per share) $ 18.00    
Stock Options | Non-employee | Tranche Two      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 14 years 9 months    
Expected volatility 40.00%    
Risk-free interest rate 1.71%    
Expected dividend yield 0.00%    
Vested and exercisable (in dollars per share) $ 3.80    
Fair value of common stock (in dollars per share) $ 18.00    
Stock Options | 2012 Stock Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years)     5 years 3 months 10 days
Expected volatility     49.82%
Risk-free interest rate     1.82%
Expected dividend yield     0.00%
v3.23.1
Stock-Based Compensation - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2023
USD ($)
tranche
shares
Dec. 31, 2022
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected dividend yield 0.00%  
Unrecognized compensation expense $ 21.7  
Shares subject to repurchase obligation (in shares) | shares 366,932 527,868
Fair value of shares subject to repurchase obligation $ 1.1 $ 2.0
Number Of Tranches | tranche 4  
Stock Options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation expense, period of recognition 2 years 7 months 6 days  
Unvested restricted stock units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation expense, period of recognition 2 years 2 months 12 days  
v3.23.1
Stock-Based Compensation - Schedule of RSU Activity (Details) - Unvested restricted stock units
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended
Mar. 31, 2023
USD ($)
$ / shares
shares
Mar. 31, 2022
USD ($)
Number of RSUs    
Beginning Balance (in shares) | shares 12,392  
Granted period (in shares) | shares 5,721  
Vested (in shares) | shares (4,442)  
Cancelled and forfeited (in shares) | shares (807)  
Ending Balance (in shares) | shares 12,864  
Weighted average grant date fair value per share    
Beginning Balance (in dollars per share) | $ / shares $ 3.02  
Granted (in dollars per share) | $ / shares 1.50  
Vested (in dollars per share) | $ / shares 4.15  
Cancelled and forfeited (in dollars per share) | $ / shares 2.86  
Ending Balance (in dollars per share) | $ / shares $ 1.96  
Unrecognized compensation expense | $ $ 22.9  
Unrecognized compensation expense, period of recognition 2 years 2 months 12 days  
Vesting period 1 year  
Vesting of early exercised stock options | $ $ 18.5 $ 4.7
v3.23.1
Stock-Based Compensation - Performance Stock Units (Narrative) (Details) - Performance Shares
$ in Millions
 1 Months Ended
Mar. 31, 2023
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares authorized (in shares) | shares 1,000,000
Unrecognized compensation expense, period of recognition 2 years 2 months 12 days
Estimated fair value | $ $ 0.5
v3.23.1
Stock-Based Compensation - Non-Plan Co-Founder and Head of Blend Options (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
Mar. 31, 2021
Mar. 31, 2023
Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock based compensation expense   $ 16,392 $ 24,312
Unrecognized compensation expense   $ 21,700  
Non-employee | Class B Common Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 26,057,181    
Granted (in dollars per share) $ 8.58    
Non-employee | Class B Common Stock | Tranche One      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected to vest (in shares) 1,954,289    
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized compensation expense, period of recognition   2 years 7 months 6 days  
Stock Options | Non-employee      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock based compensation expense   $ 4,800 $ 4,800
Unrecognized compensation expense   $ 21,500  
Unrecognized compensation expense, period of recognition   3 years 3 months 18 days  
Stock Options | Non-employee | Class B Common Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 15 years    
Performance period 15 months    
v3.23.1
Stock-Based Compensation - Schedule of Stock Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense $ 16,392 $ 24,312
Cost of revenue    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense 488 493
Research and development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense 8,131 9,866
Sales and marketing    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense 2,783 2,523
General and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense $ 4,990 $ 11,430
v3.23.1
Restructuring - Narrative (Details)
 1 Months Ended 3 Months Ended
Jan. 31, 2023
USD ($)
position
Nov. 30, 2022
USD ($)
position
Aug. 31, 2022
USD ($)
position
Apr. 30, 2022
USD ($)
position
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
plan
Dec. 31, 2021
USD ($)
Schedule of Restructuring and Related Costs [Line Items]                
Restructuring charges         $ 12,783,000 $ 0    
Number Of Restructuring Plans | plan             3  
Workforce Reduction Plans                
Schedule of Restructuring and Related Costs [Line Items]                
Number of positions eliminated | position 340 100 140 200        
Number of positions eliminated, period percent 28.00% 6.00% 10.00% 10.00%        
Restructuring charges $ 11,676,000 $ 2,960,000 $ 5,935,000 $ 6,380,000        
Restructuring reserve         999,000   $ 1,614,000 $ 0
Executive transition costs                
Schedule of Restructuring and Related Costs [Line Items]                
Salary expense $ 1,458,333              
Salary accrual         $ 900,000      
v3.23.1
Restructuring - Schedule of Reconciliation of the Restructuring Liability Balances (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 31, 2023
Nov. 30, 2022
Aug. 31, 2022
Apr. 30, 2022
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Restructuring Reserve [Roll Forward]              
Restructuring charges         $ 12,783 $ 0  
Workforce Reduction Plans              
Restructuring Reserve [Roll Forward]              
Restructuring liability, beginning balance $ 1,614       1,614 $ 0 $ 0
Restructuring charges $ 11,676 $ 2,960 $ 5,935 $ 6,380      
Executive transition costs         1,107    
Settlements         (13,398)   (13,661)
Restructuring liability, ending balance         $ 999   $ 1,614
v3.23.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Tax Disclosure [Abstract]    
Income tax expense (benefit) $ 71 $ (2,797)
v3.23.1
Net Loss Per Share - Schedule of Earnings Per Share (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2023
USD ($)
class
$ / shares
shares
Mar. 31, 2022
USD ($)
$ / shares
shares
Earnings Per Share [Abstract]    
Number of classes of stock | class 3  
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]    
Net loss attributable to Blend Labs, Inc. $ (65,417) $ (72,104)
Less: accretion of RNCI to redemption value (2,056) (1,442)
Net loss attributable to Blend Labs, Inc. common stockholders, basic (67,473) (73,546)
Net loss attributable to Blend Labs, Inc. common stockholders, diluted $ (67,473) $ (73,546)
Denominator:    
Weighted average common stock outstanding, basic (in shares) | shares 241,444 230,329
Weighted average common stock outstanding, diluted (in shares) | shares 241,444 230,329
Net loss per share attributable to Blend Labs, Inc.:    
Basic (in dollars per share) | $ / shares $ (0.28) $ (0.32)
Diluted (in dollars per share) | $ / shares $ (0.28) $ (0.32)
Class A Common Stock    
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]    
Net loss attributable to Blend Labs, Inc. $ (62,513) $ (68,149)
Less: accretion of RNCI to redemption value (1,965) (1,363)
Net loss attributable to Blend Labs, Inc. common stockholders, basic (64,478) (69,512)
Net loss attributable to Blend Labs, Inc. common stockholders, diluted $ (64,478) $ (69,512)
Denominator:    
Weighted average common stock outstanding, basic (in shares) | shares 230,725 217,696
Weighted average common stock outstanding, diluted (in shares) | shares 230,725 217,696
Net loss per share attributable to Blend Labs, Inc.:    
Basic (in dollars per share) | $ / shares $ (0.28) $ (0.32)
Diluted (in dollars per share) | $ / shares $ (0.28) $ (0.32)
Class B Common Stock    
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]    
Net loss attributable to Blend Labs, Inc. $ (2,904) $ (3,955)
Less: accretion of RNCI to redemption value (91) (79)
Net loss attributable to Blend Labs, Inc. common stockholders, basic (2,995) (4,034)
Net loss attributable to Blend Labs, Inc. common stockholders, diluted $ (2,995) $ (4,034)
Denominator:    
Weighted average common stock outstanding, basic (in shares) | shares 10,719 12,633
Weighted average common stock outstanding, diluted (in shares) | shares 10,719 12,633
Net loss per share attributable to Blend Labs, Inc.:    
Basic (in dollars per share) | $ / shares $ (0.28) $ (0.32)
Diluted (in dollars per share) | $ / shares $ (0.28) $ (0.32)
v3.23.1
Net Loss Per Share - Schedule of Antidilutive Securities (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total antidilutive securities 64,300 64,703
Outstanding stock options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total antidilutive securities 23,414 28,722
Early exercised options subject to repurchase    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total antidilutive securities 367 1,188
Non-plan Co-Founder and Head of Blend options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total antidilutive securities 26,057 26,057
Unvested restricted stock units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total antidilutive securities 12,864 8,012
Unvested performance stock awards    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total antidilutive securities 1,000 126
Common stock warrants    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total antidilutive securities 598 598
v3.23.1
Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Segment Reporting Information [Line Items]    
Total revenue $ 37,336 $ 71,524
Gross profit 15,853 28,869
Operating expenses:    
Research and development 26,257 35,106
Sales and marketing 17,568 22,341
General and administrative 20,681 37,102
Amortization of acquired intangible assets 0 4,068
Restructuring 12,783 0
Total operating expenses 77,289 98,617
Loss from operations (61,436) (69,748)
Interest expense (7,569) (5,558)
Other income (expense), net 2,882 91
Loss before income taxes (66,123) (75,215)
Blend Platform | Operating Segments    
Segment Reporting Information [Line Items]    
Total revenue 24,704 32,576
Gross profit 16,095 20,175
Title | Operating Segments    
Segment Reporting Information [Line Items]    
Total revenue 12,632 38,948
Gross profit $ (242) $ 8,694