-
Revenue: BETR reported $77 million in revenue for the full year 2023.
-
Net Loss: The company experienced a net loss of $534 million for the year.
-
Funded Loan Volume: BETR funded $3 billion across 8,569 total loans in 2023.
-
Adjusted EBITDA Loss: The adjusted EBITDA loss was $163 million for the full year.
-
Cost Reduction: Total expenses were reduced by 71% year-over-year, with a $1.1+ billion reduction compared to 2021.
-
Cash Position: BETR ended 2023 with $554 million in cash, restricted cash, and short-term investments.
Better Home & Finance Holding Co (NASDAQ:BETR) released its 8-K filing on March 28, 2024, revealing its financial results for the fourth quarter and full year ended December 31, 2023. As a digital-first homeownership company, BETR offers mortgage, real estate, title, and homeowners insurance services, aiming to revolutionize the industry with its proprietary technology platform, Tinman.
In 2023, BETR faced a challenging market environment with high mortgage rates, yet it managed to maintain a focus on digitization and price transparency. The company continued to invest in its technology and launched innovative products like the One Day Mortgage and One Day HELOC, aiming to enhance customer experience. Despite these efforts, BETR reported a significant net loss of $534 million for the year, though it improved by 39% year-over-year.
The company’s cost reduction initiatives led to a 71% decrease in total expenses compared to the previous year. BETR’s CEO, Vishal Garg, expressed optimism for 2024, citing a pivot to a new commercial operating model and the hiring of experienced Loan Officers on commission-based compensation plans as drivers for expected growth.
Despite the net loss, BETR’s cash position remains strong, ending the year with $554 million in cash, restricted cash, and short-term investments. The company’s focus on purchase loans, which comprised 91% of its Funded Loan Volume, demonstrates its commitment to adapting to consumer needs in the purchase market.
Kevin Ryan, President and CFO, highlighted the company’s strategic investments and the scaling of innovative products, which are expected to drive increased volume in 2024. BETR’s partnerships with Infosys and Beyond.com aim to extend its digital mortgage experience to a broader customer base.
While the company’s net loss and adjusted EBITDA loss reflect the difficulties faced in 2023, the significant reduction in expenses and the strategic shift in its operating model showcase BETR’s adaptability and potential for recovery in a more favorable macro environment.
For more detailed financial information and future updates, stakeholders are encouraged to refer to BETR’s annual report on Form 10-K, which will be filed with the SEC.
Investors and interested parties can access the earnings conference call webcast on the investor relations section of BETR’s website or via the provided registration link.
Please note that this summary does not include forward-looking statements and should be considered as historical data. For further details and investor relations inquiries, please email ir@better.com.
Explore the complete 8-K earnings release (here) from Better Home & Finance Holding Co for further details.
This article first appeared on GuruFocus.