Blend Labs, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable improvements in revenue and reduced losses compared to the same periods in 2023. The company generated total revenue of $45.2 million for Q3 2024, an increase of 11% from $40.6 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $120.6 million, slightly down from $120.7 million in the prior year.
The software platform revenue for Q3 2024 reached $31.1 million, up from $26.5 million in Q3 2023, contributing to a gross profit of $26.0 million, compared to $22.1 million in the same quarter last year. The gross margin improved to 58% from 54% year-over-year. Total operating expenses significantly decreased to $39.3 million in Q3 2024, down from $58.3 million in Q3 2023, reflecting the company's efforts to manage costs effectively.
The net loss for Q3 2024 was $2.6 million, a substantial reduction from a net loss of $41.8 million in Q3 2023. The loss from operations also improved to $13.3 million from $36.2 million in the prior year. For the nine months ended September 30, 2024, the net loss was $42.7 million, compared to $149.5 million for the same period in 2023.
Strategically, Blend Labs executed a workforce reduction in September 2024, eliminating approximately 50 positions, or 9% of its workforce, incurring charges of about $1.7 million. This follows earlier reductions in January and August 2023, which collectively eliminated around 490 positions. The company also entered into a strategic partnership and sold its insurance business, recognizing a gain of $9.2 million from the transaction.
As of September 30, 2024, Blend Labs reported cash and cash equivalents of $55.0 million, up from $31.0 million at the end of 2023. The company has no non-current debt as of this date, having fully repaid its Term Loan of approximately $146.1 million in April 2024. The accumulated deficit increased to $1.4 billion, reflecting ongoing challenges in achieving profitability since its inception in 2012.
Overall, Blend Labs continues to navigate a challenging market environment, impacted by macroeconomic factors such as rising interest rates and declining mortgage origination activity, while focusing on cost management and strategic partnerships to enhance its financial position.
About Blend Labs, Inc.
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