CHANDLER, Ariz. – February 22, 2023 – (BUSINESS WIRE) – Offerpad Solutions Inc. (“Offerpad”) (NYSE: OPAD), a leading tech-enabled platform for residential real estate, today released financial results for the three months ended and year ended December 31, 2022.
Fourth Quarter 2022 Financial Results – compared with the prior-year fourth quarter:
- Revenue was $677.2 million compared to $867.5 million
- Gross Profit was ($44.9) million* compared to $70.3 million
- Net Income was ($121.1) million* compared to $12.8 million
- Adjusted EBITDA was ($103.7) million* compared to $7.7 million
* Reported amounts include an inventory impairment charge of $44.1 million
“I’m pleased to share we’ve made significant progress on two key challenges, selling inventory acquired prior to the sharp market dislocation and securing additional capital to strengthen our balance sheet,” said Brian Bair, Chairman and CEO. “We are nearing the end of our legacy inventory disposition process, and early results from homes acquired after September 1, 2022 are showing positive returns.”
“In addition, the investment of $90 million of new equity capital from both new and existing shareholders at the end of January further demonstrates continued confidence in our strategy,” said Bair.
Q4 2022 Financial Results
|
Q4 2022 |
Q4 2021 |
Percentage Change |
|
|
Homes acquired |
539 |
3,049 |
(82%) |
|
Homes sold |
1,865 |
2,423 |
(23%) |
|
Revenue |
$677.2M |
$867.5M |
(22%) |
|
Gross profit1 |
($44.9M) |
$70.3M |
n.a. |
|
Net income (loss)1, 2 |
($121.1M) |
$12.8M |
n.a |
|
Adjusted net loss1 |
($124.5M) |
($2.8M) |
(4,280%) |
|
Adjusted EBITDA1 |
($103.7M) |
$7.7M |
n.a. |
|
Gross profit (loss) per home sold |
($24,100) |
$29,000 |
n.a. |
|
Contribution profit (loss) after interest per home sold |
($32,800) |
$18,400 |
n.a. |
1 Includes $44.1 million charge in Q4 2022 for inventory impairments.
2 Includes $3.4 million non-cash credit in Q4 2022 and a $15.6 million non-cash credit in Q4 2021 to mark to market the Warrant Liability.
Operational highlights for full-year 2022 include:
- Sold over 10,000 homes in a year for the first time in Offerpad history;
- Earned a 93 percent customer satisfaction rating;
- Increased total listing, buyer and mortgage transactions by 90% year-over-year; and
- Cash offer requests from the Agent Partnership Program increased 80% year-over-year.
Full-Year 2022 Financial Results
|
2022 |
2021 |
Percentage Change |
|
|
Homes acquired |
9,034 |
9,023 |
0% |
|
Homes sold |
10,635 |
6,373 |
67% |
|
Revenue |
$4.0B |
$2.1B |
91% |
|
Gross profit1 |
$182.4M |
$207.8M |
(12%) |
|
Net income (loss)1, 2 |
($148.6M) |
$6.5M |
n.a. |
|
Adjusted net income (loss)1 |
($172.1M) |
$4.0M |
n.a. |
|
Adjusted EBITDA1 |
($103.8M) |
$29.9M |
n.a. |
|
Gross profit per home sold |
$17,200 |
$32,600 |
(47%) |
|
Contribution profit after interest per home sold |
$9,300 |
$22,900 |
(59%) |
|
Cash and cash equivalents |
$97.2M |
$169.8M |
(43%) |
1 Includes $93.8 million charge in 2022 for inventory impairments.
2 Includes $23.5 million non-cash credit in 2022 and a $2.5 million non-cash credit in 2021 to mark to market the Warrant Liability.
Additional information regarding Offerpad’s fourth quarter and full-year 2022 financial results and management commentary can be found by accessing the Company’s Quarterly Letter to Shareholders on the Offerpad investor relations website.
First Quarter 2023 Outlook
“Our strategy this year builds upon our long-standing mission to provide a comprehensive solution center, while incorporating new approaches that further capitalize on our existing foundation and expertise. Specifically, we plan to retain and build our foundational cash offer and listing service, responsibly grow our business with an increased focus on existing market penetration and expand our capital light business-to-business partnerships and services,” noted Bair.
Offerpad is providing its first quarter outlook for 2023 as follows:
|
Q1 2023 Outlook |
|
|
Homes Sold |
1,300 – 1,450 |
|
Revenue |
$480M – $540M |
|
Adjusted EBITDA4 |
($35)M – ($55)M |
4 See Non-GAAP financial measures below for an explanation of why a reconciliation of this guidance cannot be provided.
“We expect our first quarter 2023 results to reflect sequential bottom line improvement driven by improving returns and cost reductions,” said Mike Burnett, CFO of Offerpad. “Consistent with our purposeful decrease in homes acquired during the latter half of 2022, we expect a sequential decline in revenue as we continue to optimize our portfolio.”
Conference Call and Webcast Details
Offerpad Chairman and CEO Brian Bair and CFO Mike Burnett will host a conference call and accompanying webcast on February 22, 2023, at 5 p.m. ET. The webcast can be accessed on Offerpad’s Investor Relations website. Participants can register here to receive a personalized dial in number and PIN. Access to a replay of the webcast will be available from the same website address shortly after the live webcast concludes.
About Offerpad
Offerpad’s mission is to deliver the best home buying and selling experience so you can spend less time ‘real estat-ing’ and more time living. From cash offers and flexible listing options to mortgages and buyer services, Offerpad has been helping homeowners since 2015. We pair our local expertise in residential real estate with proprietary technology to put you in control of the process and help find the right solution that fits your needs. Visit Offerpad.com for more information.
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Contacts
Investors
Stefanie Layton
Investors@offerpad.com
Media
Press@Offerpad.com
