Better Home & Finance Reports Strong Growth and AI Integration in 2024 Results

Better Home & Finance Holding Company Announces 2024 Fourth Quarter and Full Year Results By Investing.com

NEW YORK--(BUSINESS WIRE)--Better Home & Finance Holding Company (NASDAQ: BETR; BETRW) (Better or the Company), a New York-based digitally native homeownership company, today reported financial results for its fourth quarter and full year 2024. We are pleased with the growth we achieved in 2024 through a challenged environment and the early traction our AI and ~NEO Powered by Better' initiatives are seeing. Our team delivered growth and continued improvements towards profitability despite another year of continued macro headwinds, said Vishal Garg, CEO and Founder of Better. Key Operating Metrics and Non-GAAP Financial Measures: Key Operating Metrics and Non-GAAP Financial Measures: We believe we are moving in the right direction from a profitability perspective, with the improvements in Adjusted EBITDA in the fourth quarter compared to the third quarter of 2024. Looking forward, while we remain hopeful for an improved rate environment, there remains a great deal of uncertainty, and our operational plan includes limited rate relief in 2025. As such, we remain focused on driving operating leverage through continued investments in efficiency, corporate cost management, and diversifying our distribution channels. said Kevin Ryan, CFO of Better. Fourth Quarter 2024 Highlights: For more information, please see the detailed financial data and other information available in the Company's Annual Report on Form 10-K, to be filed with the Securities and Exchange Commission (the SEC), and the investor presentation on the investor relations section of the Company's website at https://investors.better.com. Webcast Better will host a live webcast of its earnings conference call beginning at 8:30am ET on March 19, 2024. To access the webcast and the related presentation, or to register to listen to the call by phone, go to the investor relations section of the Company's website at investors.better.com or click the Attendee Registration Link below. Please join the webcast at least 10 minutes prior to start time. A replay will be available on the investor relations website shortly after the call ends. Webcast Details Event Better Home & Finance Holding Company 2024 Fourth Quarter and Full Year Results Event Date: March 19, 2025 08:30 AM (GMT-05:00) Eastern Time (US and Canada) Since 2016, Better Home & Finance Holding Company (NASDAQ: BETR; BETRW) has leveraged its industry-leading AI platform, Tinman™, to fund more than $100 billion in mortgage volume. Tinman™ allows customers to see their rate options in seconds, get pre-approved in minutes, lock in rates, and close their loan in as little as three weeks. In addition, Betsy™, the first voice-based AI loan assistant built exclusively for the mortgage industry, is revolutionizing the homebuying journey by delivering timely application status updates to consumers, as well as answering questions and helping move their loan application along 24/7. Better's mortgage offerings include GSE-conforming mortgage loans, FHA and VA loans, and jumbo mortgage loans. Better launched its "One Day Mortgage" program in January 2023, which allows eligible customers to go from click to Commitment Letter within 24 hours. Better was named Best Online Mortgage Lender by Forbes and Best Mortgage Lender for Affordability by WSJ in 2023, ranked #1 on LinkedIn's Top Startups List for 2021 and 2020, #1 on Fortune's Best Small and Medium Workplaces in New York, #15 on CNBC's Disruptor 50 2020 list, and was listed on Forbes FinTech 50 for 2020. Better serves customers in all 50 US states and the United Kingdom. Forward-looking Statements This press release contains certain forward-looking statements within the meaning of federal securities laws. Forward-looking statements are all statements other than those of historical fact, and include predictions, projections and other statements about future events that are based on current expectations and assumptions. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual future events to differ materially from those expressed or implied by the forward-looking statements in this communication. These risks and uncertainties include: our ability to operate under and maintain or improve our business model; the effect of interest rates on our business, results of operations, and financial condition; our ability to expand our customer base, grow market share in our existing markets and enter into new markets; our ability to respond to general economic conditions, particularly elevated interest rates and lower home sales and refinancing activity; our ability to restore our growth and our expectations regarding the development and long-term expansion of our business; our ability to comply with laws and regulations related to the operation of our business, including any changes to such laws and regulations; our ability to achieve and maintain profitability in the future; our ability and requirements to raise additional financing in the future; our estimates regarding expenses, future revenue, capital and additional financing requirements; our ability to maintain, expand and be successful in our strategic relationships with third parties; our ability to remediate existing material weaknesses and implement and maintain an effective system of internal controls over financial reporting; our ability to develop new products, features and functionality that meet market needs and achieve market acceptance; our ability to retain, identify and hire individuals for the roles we seek to fill and staff our operations appropriately; the involvement of our CEO in litigation related to prior business activities, our business activities and associated negative media coverage; our ability to recruit and retain additional directors, members of senior management and other team members, including our ability in general, and our CEO's ability in particular, to maintain an experienced executive team; our ability to successfully manage our international and banking operations our ability to maintain and improve morale and workplace culture and respond effectively to the effects of negative media coverage; and our ability to maintain, protect, assert and enhance our intellectual property rights. More information on these risks and other potential factors that could affect the Company's business, reputation, results of operations, financial condition, and stock price can be found in the Company's Annual Report on Form 10-K, which is available, free of charge, at the SEC's website at www.sec.gov . New risks and uncertainties arise from time to time, and it is impossible for Better to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Better undertakes no obligation, except as required by law, to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise. SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS Following are tables that present selected financial data of the Company. Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures and definitions of certain key metrics used herein. Results of Operations Use of Non-GAAP Measures and Other Financial Metrics We include certain financial measures not presented in accordance with generally accepted accounting principles (GAAP) including Adjusted EBITDA, Adjusted Net Income (Loss) and other key metrics. We calculate Adjusted Net Income (Loss) as net income (loss) adjusted for the impact of stock-based compensation expense, change in the fair value of warrants, change in the fair value of bifurcated derivative, and other non-core operational expenses. We calculate Adjusted EBITDA as net income (loss) adjusted for the impact of stock-based compensation expense, change in the fair value of warrants, change in the fair value of bifurcated derivative, and other non-recurring or non-core operational expenses, as well as interest and amortization on non-funding debt (which includes interest on the Convertible Note (as defined in our Form 10-K)), depreciation and amortization expense, and income tax expense. These non-GAAP financial measures should not be considered in isolation and are not intended to be a substitute for any GAAP financial measures. These non-GAAP measures provide supplemental information that we believe helps investors better understand our business, our business model and how we analyze our performance. We also believe these non-GAAP financial measures improve investors' and analysts' ability to compare our results with those of our competitors and other similarly situated companies, which commonly disclose similar performance measures. However, our calculation of Adjusted EBITDA and Adjusted Net Income (Loss) may not be comparable to similarly titled performance measures presented by other companies. Further, although we use these non-GAAP measures to assess the financial performance of our business, these measures exclude certain substantial costs related to our business, and investors are cautioned not to use such measures as a substitute for financial results prepared according to GAAP. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. As a result, non- GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our financial results prepared and presented in accordance with GAAP. This press release refers to the following key metrics: Funded Loan Volume represents the aggregate dollar amount of all loans funded in a given period based on the principal amount of the loan at funding. Purchase Loan Volume represents the aggregate dollar amount of purchase loans funded in a given period based on the principal amount of the loan. Refinance Loan Volume represents the aggregate dollar amount of refinance loans funded in a given period based on the principal amount of the loan. D2C Loan Volume represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that have been generated from direct interactions with customers using all marketing channels other than our B2B partner relationships. HELOC loan volume represents the aggregate dollar amount of HELOC loans funded in a given period based on the principal amount of the loan at funding. B2B Loan Volume represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that have been generated through one of our B2B partner relationships. Total Loans represents the total number of loans funded in a given period, including purchase loans, refinance loans and HELOC loans. View source version on businesswire.com: https://www.businesswire.com/news/home/20250318124944/en/ For Investor Relations Inquiries please email [email protected]

Better Home & Finance Holding Company Announces 2024 Fourth Quarter and Full Year Results

Betsy AI Loan Agent doing over 115k customer interactions per month, potential to drive $2,000 in sales labor savings per fund Approximately 40% of Loan Files receiving Tinman AI underwriting review, potential to drive $1,400 in fulfillment savings per fund 2024 Funded Loan Volume of $3.6 billion, up 19% year-over-year, with D2C Loan Volume of $2.6 billion up 55% year-over-year, and Revenue of $108 million up 50% year-over-year Q4'24 Funded Loan Volume of $936 million, up 77% year-over-year driven by growth across all three main product categories, with HELOC and home equity loans growing 416% year-over-year Q4'24 Funded Loan Volume down 10% quarter-over-quarter given normal seasonal decline in purchase market compared to Q3'24 Making early progress in the first quarter of 2025 towards diversifying Better's distribution channels and increasing topline revenue by leveraging Tinman™ to power local loan officers through 'NEO Powered by Better' Increased penetration of Betsy™, the first voice-based AI loan assistant for the US Mortgage Industry, to enhance customer experience, improve loan-team efficiency, and further accelerate our end-to-end technology platform Tinman™ Expect 2025 Funded Loan Volume to increase compared with 2024 given continued growth initiatives including 'NEO Powered by Better' Remain focused on managing towards profitability in the midterm. Expect to drive growth through technology efficiency, diversified distribution channels, and optimized marketing, while balancing growth expenses with corporate cost reductions Better Home & Finance Holding Company (NASDAQ: BETR; BETRW) ("Better" or the "Company"), a New York-based digitally native homeownership company, today reported financial results for its fourth quarter and full year 2024. "We are pleased with the growth we achieved in 2024 through a challenged environment and the early traction our AI and 'NEO Powered by Better' initiatives are seeing. Our team delivered growth and continued improvements towards profitability despite another year of continued macro headwinds," said Vishal Garg, CEO and Founder of Better. Key Operating Metrics and Non-GAAP Financial Measures: Key Operating Metrics and Non-GAAP Financial Measures: "We believe we are moving in the right direction from a profitability perspective, with the improvements in Adjusted EBITDA in the fourth quarter compared to the third quarter of 2024. Looking forward, while we remain hopeful for an improved rate environment, there remains a great deal of uncertainty, and our operational plan includes limited rate relief in 2025. As such, we remain focused on driving operating leverage through continued investments in efficiency, corporate cost management, and diversifying our distribution channels." said Kevin Ryan, CFO of Better. Fourth Quarter 2024 Highlights: For more information, please see the detailed financial data and other information available in the Company's Annual Report on Form 10-K, to be filed with the Securities and Exchange Commission (the "SEC"), and the investor presentation on the investor relations section of the Company's website at https://investors.better.com. Webcast Better will host a live webcast of its earnings conference call beginning at 8:30am ET on March 19, 2024. To access the webcast and the related presentation, or to register to listen to the call by phone, go to the investor relations section of the Company's website at investors.better.com or click the "Attendee Registration Link" below. Please join the webcast at least 10 minutes prior to start time. A replay will be available on the investor relations website shortly after the call ends. * Webcast Details * Event Title: Better Home & Finance Holding Company 2024 Fourth Quarter and Full Year Results Event Date: March 19, 2025 08:30 AM (GMT-05:00) Eastern Time (US and Canada) Since 2016, Better Home & Finance Holding Company (NASDAQ: BETR; BETRW) has leveraged its industry-leading AI platform, Tinman™, to fund more than $100 billion in mortgage volume. Tinman™ allows customers to see their rate options in seconds, get pre-approved in minutes, lock in rates, and close their loan in as little as three weeks. In addition, Betsy™, the first voice-based AI loan assistant built exclusively for the mortgage industry, is revolutionizing the homebuying journey by delivering timely application status updates to consumers, as well as answering questions and helping move their loan application along 24/7. Better's mortgage offerings include GSE-conforming mortgage loans, FHA and VA loans, and jumbo mortgage loans. Better launched its "One Day Mortgage" program in January 2023, which allows eligible customers to go from click to Commitment Letter within 24 hours. Better was named Best Online Mortgage Lender by Forbes and Best Mortgage Lender for Affordability by WSJ in 2023, ranked #1 on LinkedIn's Top Startups List for 2021 and 2020, #1 on Fortune's Best Small and Medium Workplaces in New York, #15 on CNBC's Disruptor 50 2020 list, and was listed on Forbes FinTech 50 for 2020. Better serves customers in all 50 US states and the United Kingdom. Forward-looking Statements This press release contains certain forward-looking statements within the meaning of federal securities laws. Forward-looking statements are all statements other than those of historical fact, and include predictions, projections and other statements about future events that are based on current expectations and assumptions. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual future events to differ materially from those expressed or implied by the forward-looking statements in this communication. These risks and uncertainties include: our ability to operate under and maintain or improve our business model; the effect of interest rates on our business, results of operations, and financial condition; our ability to expand our customer base, grow market share in our existing markets and enter into new markets; our ability to respond to general economic conditions, particularly elevated interest rates and lower home sales and refinancing activity; our ability to restore our growth and our expectations regarding the development and long-term expansion of our business; our ability to comply with laws and regulations related to the operation of our business, including any changes to such laws and regulations; our ability to achieve and maintain profitability in the future; our ability and requirements to raise additional financing in the future; our estimates regarding expenses, future revenue, capital and additional financing requirements; our ability to maintain, expand and be successful in our strategic relationships with third parties; our ability to remediate existing material weaknesses and implement and maintain an effective system of internal controls over financial reporting; our ability to develop new products, features and functionality that meet market needs and achieve market acceptance; our ability to retain, identify and hire individuals for the roles we seek to fill and staff our operations appropriately; the involvement of our CEO in litigation related to prior business activities, our business activities and associated negative media coverage; our ability to recruit and retain additional directors, members of senior management and other team members, including our ability in general, and our CEO's ability in particular, to maintain an experienced executive team; our ability to successfully manage our international and banking operations our ability to maintain and improve morale and workplace culture and respond effectively to the effects of negative media coverage; and our ability to maintain, protect, assert and enhance our intellectual property rights. More information on these risks and other potential factors that could affect the Company's business, reputation, results of operations, financial condition, and stock price can be found in the Company's Annual Report on Form 10-K, which is available, free of charge, at the SEC's website at www.sec.gov . New risks and uncertainties arise from time to time, and it is impossible for Better to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Better undertakes no obligation, except as required by law, to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise. SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS Following are tables that present selected financial data of the Company. Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures and definitions of certain key metrics used herein. Results of Operations Use of Non-GAAP Measures and Other Financial Metrics We include certain financial measures not presented in accordance with generally accepted accounting principles ("GAAP") including Adjusted EBITDA, Adjusted Net Income (Loss) and other key metrics. We calculate Adjusted Net Income (Loss) as net income (loss) adjusted for the impact of stock-based compensation expense, change in the fair value of warrants, change in the fair value of bifurcated derivative, and other non-core operational expenses. We calculate Adjusted EBITDA as net income (loss) adjusted for the impact of stock-based compensation expense, change in the fair value of warrants, change in the fair value of bifurcated derivative, and other non-recurring or non-core operational expenses, as well as interest and amortization on non-funding debt (which includes interest on the Convertible Note (as defined in our Form 10-K)), depreciation and amortization expense, and income tax expense. These non-GAAP financial measures should not be considered in isolation and are not intended to be a substitute for any GAAP financial measures. These non-GAAP measures provide supplemental information that we believe helps investors better understand our business, our business model and how we analyze our performance. We also believe these non-GAAP financial measures improve investors' and analysts' ability to compare our results with those of our competitors and other similarly situated companies, which commonly disclose similar performance measures. However, our calculation of Adjusted EBITDA and Adjusted Net Income (Loss) may not be comparable to similarly titled performance measures presented by other companies. Further, although we use these non-GAAP measures to assess the financial performance of our business, these measures exclude certain substantial costs related to our business, and investors are cautioned not to use such measures as a substitute for financial results prepared according to GAAP. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. As a result, non- GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our financial results prepared and presented in accordance with GAAP. This press release refers to the following key metrics: Funded Loan Volume represents the aggregate dollar amount of all loans funded in a given period based on the principal amount of the loan at funding. Purchase Loan Volume represents the aggregate dollar amount of purchase loans funded in a given period based on the principal amount of the loan. Refinance Loan Volume represents the aggregate dollar amount of refinance loans funded in a given period based on the principal amount of the loan. D2C Loan Volume represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that have been generated from direct interactions with customers using all marketing channels other than our B2B partner relationships. HELOC loan volume represents the aggregate dollar amount of HELOC loans funded in a given period based on the principal amount of the loan at funding. B2B Loan Volume represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that have been generated through one of our B2B partner relationships. Total Loans represents the total number of loans funded in a given period, including purchase loans, refinance loans and HELOC loans.