Better Home & Finance (BETR) Investor presentation summary

Strategic direction and leadership transition

• A new leadership team, including an interim CEO, is executing a disciplined strategy focused on leveraging proprietary technology, diversifying revenue streams, and building value through proven channels and partnerships.

• The company is prioritizing partner-led distribution, aggressive investment in HELOC products, and expanding from direct-to-consumer to enterprise offerings.

• Tinman®, the AI-powered mortgage platform, underpins operational efficiency, enabling lower costs, faster closings, and improved customer experience.

• The partnership model has shifted to target partners with large customer bases, standardized infrastructure, and shared economic responsibility, aiming for measurable, profitable growth.

• The company maintains a light balance sheet and low-risk funding model, attracting a growing network of institutional mortgage investors.

Critique of former leadership and ongoing board dispute

• The former CEO, Mr. Garg, is criticized for poor leadership, including over $2 billion in net losses, a 90%+ decline in company value, and repeated failure to meet targets.

• Mr. Garg's tenure was marked by negative publicity, including mass layoffs via Zoom, low employee morale, and one of the lowest CEO approval ratings in the sector.

• Mr. Garg is currently seeking to regain control of the board through a consent solicitation, aiming to remove several directors and potentially assume unilateral control.

• The board alleges Mr. Garg's campaign is self-serving, disruptive, and involves undisclosed coordination with certain shareholders, possibly violating securities laws.

• The special committee, composed of experienced directors, unanimously recommends shareholders reject Mr. Garg's efforts and support the current leadership.

Financial performance and non-GAAP measures

• The company has reported 21 consecutive quarters of net losses, with cumulative losses exceeding $2 billion under prior leadership.

• Financial targets set by the former CEO were missed by wide margins, with actual revenue and profitability far below projections.

• Non-GAAP measures such as Adjusted Net Loss and Adjusted EBITDA are used to supplement GAAP results, with reconciliations provided for transparency.

• Adjusted Net Loss for 2023 was $(228.0) million, and Adjusted EBITDA was $(163.2) million, after adjustments for stock-based compensation, restructuring, and other non-core items.

• The company cautions that non-GAAP measures have limitations and should be considered alongside GAAP results.