Blend Labs, Inc. (BLND) stock soared 7.03% in the after-hours session on Friday, following the company's impressive fourth-quarter results and a positive outlook on leveraging AI to drive growth and profitability.

In the earnings call, Blend Labs reported a 15% year-over-year increase in total revenue, reaching $41.4 million in Q4 2024. The company's consumer banking suite saw substantial growth, with revenue surging 48% year-over-year. Furthermore, Blend Labs achieved non-GAAP operating profitability of $5.2 million, marking a significant improvement from the previous year.

One of the key highlights was the company's focus on leveraging artificial intelligence (AI) to streamline operations and drive efficiencies. Nima Ghamsari, Co-Founder and Head of Blend, emphasized the potential for AI to automate up to 90% of the manual processes currently involved in mortgage origination, leading to significant cost savings and faster loan processing.

Blend Labs has already started embedding AI into its core banking processes, with its Doc AI solution automating document validation and verification tasks. Ghamsari stated that the company is excited to further push AI integration across all its products, with more updates expected throughout the year.

Additionally, the company unveiled its rapid refinance and rapid home equity solutions, which are designed to provide faster and more efficient lending processes. While still in the early stages, these solutions have shown promising results, with Blend Labs expecting a positive impact on its economic value per funded loan as adoption accelerates.