Blend Labs announced that Matt Thomson will take on the role of Head of Revenue, bringing more than 25 years of fintech sales experience. Thomson previously built and scaled go‑to‑market organizations at Alkami Technology and ACI Worldwide, where he grew customer bases among community banks, credit unions and regional institutions. His appointment follows the departure of outgoing Head of Revenue Brian Kneafsey, who will move into an advisory capacity to ensure a smooth transition.
Blend’s most recent quarterly results, released in November, showed total revenue of $32.9 million, a 1 % decline year‑over‑year. The decline was driven by an 18 % drop in mortgage‑suite revenue, attributed to strategic transitions and customer churn, while the consumer‑banking suite grew 11 % quarter‑over‑quarter and now accounts for 39 % of total revenue. Despite the revenue dip, non‑GAAP operating income rose to $4.6 million from $0.3 million in the prior year, reflecting tighter cost control and a higher margin mix from the consumer‑banking segment. Blend’s pipeline is up roughly 60 % year‑over‑year, underscoring strong future sales potential.
Chief Executive Officer Nima Ghamsari highlighted the company’s resilience, noting that the platform’s AI‑powered capabilities are driving higher conversion rates and customer loyalty. He emphasized the strategic shift toward the consumer‑banking suite, which now represents 39 % of revenue, up from 29 % a year ago, and the ongoing investment in AI and rapid‑product development. Thomson echoed this sentiment, stating that Blend’s platform offers “strong momentum in the market” and that he looks forward to helping financial institutions unlock new opportunities through the company’s technology.
Blend’s guidance for the fourth quarter projects revenue of $31.0 million to $32.5 million and non‑GAAP operating income of $2.5 million to $3.5 million. The lower revenue outlook reflects the expectation that one‑time revenue from the previous quarter will not recur and the typical seasonality of the mortgage business. Management’s confidence in maintaining profitability is underscored by the company’s ability to sustain margin expansion through its high‑margin consumer‑banking products and AI‑driven efficiencies.
Investors have expressed concern over the mortgage‑suite decline, viewing it as a headwind to overall growth. However, the company’s robust pipeline, growing consumer‑banking revenue, and AI initiatives provide a counterbalancing narrative. The appointment of Thomson signals Blend’s intent to strengthen sales execution and accelerate platform adoption, addressing the market’s focus on digital transformation and competitive positioning.
The hire of Matt Thomson, combined with Blend’s strategic pivot toward higher‑margin consumer banking and AI integration, positions the company to navigate current headwinds while capitalizing on emerging opportunities in the digital banking space.
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