Shares of Blend Labs Inc. (BLND) tanked 15.3% in extended trade on Thursday after the company reported a loss from operations of $39.6 million in the second quarter ended June 30, 2021, wider than the loss of $20.8 million in the year-ago quarter. On an adjusted basis, the loss increased 60.4% to $26.3 million.
Blend Labs is a cloud-based platform that supports and simplifies applications for mortgages, consumer loans, and deposit accounts.
Markedly, revenues jumped 46% year-over-year to $32.1 million. The increase in revenues reflected a surge in total banking transaction volume, which increased 51% to over 520,000. (See Blend stock charts on TipRanks)
The Head of Finance at Blend, Marc Greenberg, said, “We remain on track for a strong 2021 as we continue focusing on onboarding new customers to our platform, driving adoption of new Blend products, and progressing on the migration of Title365 customers to Blend Title.”
For Fiscal Year 2021, the company expects to report revenues in the range of $226 million to $232 million.
On August 10, Wells Fargo analyst Michael Turrin initiated coverage on the stock with a Buy rating and a price target of $24 (upside potential of 21.3%).
Turrin is of the opinion that Blend has been able to make large financial institutions its customers. Also, the company has been able to maintain a strong relationship with them, thereby bolstering growth potential. The analyst believes that “the road ahead for Blend is likely to prove increasingly lucrative with time.”
Overall, the rest of the Street has a bullish outlook on the stock with a Strong Buy consensus rating based on 7 Buys and 1 Hold. The average Blend price target of $25 implies upside potential of about 26.4% from current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Blend with 299.7% of investors on Tipranks increasing their exposure to BLND stock over the past 30 days.
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