Net Loss Per Share

12 Months Ended

Dec. 31, 2021

Net Loss Per ShareThe Company computes net loss per share using the two-class method required for multiple classes of common stock. The Company has three classes of authorized common stock for which voting rights differ by class.

Basic net loss per share is computed by dividing net loss attributable to each class of stockholders by the weighted average number of shares of stock outstanding during the period, adjusted for options early exercised and subject to repurchase.

For the calculation of diluted net loss per share, net loss per share attributable to the Company for basic net loss per share is adjusted by the effect of dilutive securities, including awards issued under the Company’s equity compensation plans. Diluted net loss per share attributable to the Company is computed by dividing the resulting net loss attributable to the Company by the weighted average number of fully diluted common shares outstanding.

In connection with the IPO, upon the effectiveness of the filing of the Amended and Restated Certificate of Incorporation, all shares of the Company’s pre-IPO Class A common stock were reclassified as Class B common stock and all shares of the Company’s pre-IPO Class B common stock were reclassified as Class A common stock. All weighted average common stock outstanding and net loss per share amounts presented within these consolidated financial statements have been adjusted to reflect this reclassification on a retroactive basis for all periods presented.

The following table presents the calculation of basic and diluted net loss per share for Class A and Class B common stock. No shares of Class C common stock were issued and outstanding during the periods presented.


	Year Ended December 31,
	2021				2020				2019
	Class A Common		Class B Common		Class A Common		Class B Common		Class A Common		Class B Common
	(In thousands, except per share data)
Numerator:
Net loss attributable to Blend Labs, Inc.	$	(151,901)	$	(18,012)	$	(50,131)	$	(24,486)	$	(48,750)	$	(32,702)
Less: accretion of RNCI to redemption value	(1,323)		(107)		—		—		—		—
Net loss attributable to Blend Labs, Inc. common stockholders	$	(153,224)	$	(18,119)	$	(50,131)	$	(24,486)	$	(48,750)	$	(32,702)

Denominator:
Weighted average common stock outstanding, basic and diluted	117,994		13,991		26,475		12,932		19,617		13,159



Net loss per share attributable to Blend Labs, Inc.:
Basic and diluted	$	(1.30)	$	(1.30)	$	(1.89)	$	(1.89)	$	(2.49)	$	(2.49)

The following potential shares of common stock were excluded from the computation of diluted net earnings per share attributable to the Company for the periods presented because including them would have been antidilutive as the Company has reported net loss for each of the periods presented:


	As of December 31,
	2021	2020	2019
	(In thousands)
Outstanding stock options	31,675	33,750	35,209
Early exercised options subject to repurchase	1,820	162	223
Options exercised via promissory note	—	4,000	4,000
Non-plan Co-Founder and Head of Blend options	26,057	—	—
Unvested restricted stock units	2,589	—	—
Common stock warrants	598	—	2,807
Convertible Preferred Stock warrants	—	5,461	6,008
Founders Convertible Preferred Stock	—	1,026	1,026
Convertible Preferred Stock	—	121,353	110,898
Total antidilutive securities	62,739	165,752	160,171