What happened

Shares of Blend Labs (BLND -8.06%) charged sharply higher Tuesday, gaining as much as 38.4%. As of 2:44 p.m. ET, the stock was still up 27.5%.

The catalyst that sent the fintech specialist higher was its quarterly financial report, which detailed robust growth that far outpaced expectations.

So what

For the second quarter, Blend Labs generated revenue of $65.5 million, up an eye-catching 104% year over year. The company's bottom line cratered, however, with a net loss of $477 million, resulting in a loss per share of $2.06. But that loss requires context.

Blend Labs took a non-cash impairment charge of $391.8 million on its intangible assets and goodwill to adjust the fair value of its Title365 segment. Had it not been for the one-time charge, Blend Labs' loss per share would have been a much more palatable $0.19, an improvement of 63% compared to the prior-year quarter. 

Analysts' consensus estimates were calling for revenue of $59.4 million and a loss per share of $0.20, so excluding the write-down, Blend Labs cleared expectations on both counts. 

It's also worth noting that the Blend Platform segment -- which focuses on the mortgage market -- grew 5% year over year even as mortgage volumes declined 37% during the same period. This illustrates that the company was able to gain market share even in a challenging environment.

Blend also reported improved client metrics. Its customer base grew to 354, and 71% of the company's total customer base now uses two or more of Blend's products, up from 59% in the year-ago quarter. Additionally, the number of banking transactions grew to 215,000, up 179%.

Now what

For the full fiscal year, Blend Labs reiterated its outlook and is guiding for revenue of $240 million at the midpoint of its guidance. This is particularly impressive considering the company is expecting overall mortgage origination levels to decline by 41% compared to last year. As a result, Blend Labs is expecting low double-digit growth in its mortgage-banking revenue, offset by more than 100% growth in its consumer banking and marketplace revenue.

Blend Labs had its initial public offering (IPO) just over a year ago, and since then, the stock has shed more than 82%. However, if its results are any indication of what's to come for Blend Labs, shareholders could be rolling in the green in years to come.