Better Home & Finance (BETR) Q2 2024 earnings summary

Executive summary

• Funded loan volume rose 45% sequentially to $962 million in Q2 2024, with revenue up 41% from Q1 2024 and total expenses remaining flat.

• Net loss narrowed to $42 million in Q2 2024, with adjusted EBITDA loss improving to -$23.3 million.

• The company continues to invest in technology, AI, and automation to drive efficiency and customer conversion.

• A 1-for-50 reverse stock split was approved and will be effective August 16, 2024, to regain Nasdaq compliance.

• Focus remains on expanding product offerings, improving sales efficiency, and leveraging technology for operational gains.

Financial highlights

• Q2 2024 funded loan volume reached $962 million, exceeding prior guidance, with 2,995 total loans funded.

• Revenue was $32.3 million in Q2 2024, up 4% year-over-year; adjusted EBITDA loss improved to -$23.3 million.

• GAAP net loss was $42 million, a $9 million improvement from Q1 2024.

• Total expenses were $73.4 million, flat quarter-over-quarter and down 2% year-over-year.

• Gain on sale margin was 2.52% in Q2 2024, with $9 million in nonrecurring gain on sale revenue.

Outlook and guidance

• Q3 2024 funded loan volume is expected to exceed $1 billion.

• Total expenses projected to remain approximately flat year-over-year despite growth investments.

• Restructuring initiatives and cost reductions will continue through at least the end of 2024.

• Ongoing focus on technology investment, customer acquisition, and operational efficiency.