On August 8, 2024, Better Home & Finance Holding Co (BETR, Financial) released its 8-K filing for the second quarter of 2024, showcasing substantial growth in revenue and funded loan volume. Better Home & Finance Holding Co is a digital-first homeownership company offering services in mortgage, real estate, title, and homeowners insurance, aiming to revolutionize the homeownership industry through technology and customer focus.
Performance and Challenges
Better Home & Finance Holding Co (BETR, Financial) reported a revenue increase of 41% from $22 million in Q1 2024 to approximately $31 million in Q2 2024. The company also saw a 45% rise in funded loan volume, reaching $962 million across 2,995 total loans. Despite these gains, the company faced a net loss of approximately $42 million, an improvement from the $51 million loss in Q1 2024. The company continues to navigate a challenging macro environment with high interest rates.
Financial Achievements
The company's financial achievements are noteworthy, particularly the 50% quarter-over-quarter growth in purchase loan volume and a 76% increase in HELOC loan volume. These metrics are crucial as they indicate the company's ability to expand its market share in less rate-sensitive segments. Additionally, the company's D2C business grew 86% quarter-over-quarter, comprising 70% of the funded loan volume.
Key Financial Metrics
Better Home & Finance Holding Co (BETR, Financial) ended Q2 2024 with approximately $507 million in cash, restricted cash, short-term investments, and self-funded loans. The company's adjusted EBITDA loss improved to approximately $25 million from $31 million in Q1 2024. The shift from fixed compensation plans to commission-based plans for loan officers has shown positive early results, enhancing loan officer productivity and customer conversion.
| Metric | Q2 2024 | Q1 2024 |
|---|---|---|
| Revenue | $31 million | $22 million |
| Net Loss | ($42 million) | ($51 million) |
| Funded Loan Volume | $962 million | $662 million |
| Adjusted EBITDA Loss | ($25 million) | ($31 million) |
Commentary and Analysis
“We are very pleased with the growth and continued progress towards profitability we demonstrated in the second quarter of 2024, through a continued challenging macro environment with persistently high rates. Our investments in purchase and home equity products, where we see growth being less rate-sensitive, generated sizable outperformance,” said Vishal Garg, CEO and Founder of Better.
The company's strategic investments in AI within the Tinman platform have shown positive early indications, enhancing loan team productivity and customer experience. The company is also piloting multiple B2B programs, including a partnership with a national roofing and basement contractor to offer financing through Better's One Day HELOC products.
Reverse Stock Split
Better Home & Finance Holding Co (BETR, Financial) announced a 1-for-50 reverse stock split, effective August 16, 2024. This move aims to consolidate shares and potentially improve the stock's marketability and trading liquidity. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the company’s equity.
For more detailed financial data and additional information, please refer to the company's interim report on Form 10-Q and the investor presentation available on the investor relations section of the company's website.
Explore the complete 8-K earnings release (here) from Better Home & Finance Holding Co for further details.
