Offerpad Reports Fourth Quarter & Full Year 2024 Results
2024 Net Loss Improves 47%, or $55 million Versus Prior Year
TEMPE, Ariz.--(BUSINESS WIRE)--February 24, 2025--
Offerpad Solutions Inc. ("Offerpad") (NYSE: OPAD), a leading tech-enabled platform for residential real estate, today released financial results for the three months and full year ended December 31, 2024.
"In the fourth quarter, revenue exceeded the midpoint of our guidance, supported by a balanced mix of offerings. This performance was achieved with the support of our Renovate business surpassing $18 million in revenue for the year and our improved advertising efficiencies driven by our Agent Partnership Program growing to nearly a third of our acquisitions," said Brian Bair, Offerpad's CEO. "We've made tremendous product improvements as we've remained focused on delivering real estate solutions for consumers and partners while making progress toward building a long-term, sustainable business."
FY 2024 Highlights include:
-- Improved net loss and adjusted EBITDA 47% or $55 million and 65% or $53
million, respectively, from the prior year
-- Gross profit per home sold of $26.7k
-- Contribution profit after interest per home sold of $11.5k, with 33% via
asset light services
-- Total operating expenses for the year decreased to $118.2M from $174.6M
the prior year, a $56.4M or 32% improvement
-- Renovate closed projects grew to 1,096, surpassing $18 million of revenue,
up 49% versus the prior year
-- Acquisitions from Offerpad's Agent Partnership Program grew to 32% of
total compared to 21% the prior year
-- Time to cash $(TTC)$ came in at 116 days, an improvement of 23 days or 18%
year over year
"Through our relentless focus on cost efficiency, we've taken big steps towards profitability. After lowering annual operating expenses by nearly $70 million in 2023, we continued to make excellent progress in 2024, removing $44 million of additional cost," said Peter Knag, Offerpad's CFO. "As we enter 2025, we remain focused on increasing acquisition activity, maintaining cost discipline, and positioning Offerpad for long-term stability and growth."
Q4 2024 Financial Results (quarter over quarter)
Percentage
Q4 2024 Q3 2024 Change
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Homes acquired 384 422 (9%)
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Homes sold 503 615 (18%)
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Revenue $174.3M $208.1M (16%)
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Gross profit $10.6M $17.1M (38%)
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Net loss ($17.3M) ($13.5M) (28%)
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Adjusted EBITDA ($11.5M) ($6.2M) (86%)
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Diluted Net Loss per Share ($0.63) ($0.49) (29%)
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Gross profit per home sold $21,100 $27,900 (24%)
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Contribution profit after interest per home
sold $5,500 $12,400 (56%)
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Cash and cash equivalents $43.0M $48.5M (11%)
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Q4 2024 Financial Results (year over year)
Percentage
Q4 2024 Q4 2023 Change
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Homes acquired 384 678 (43%)
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Homes sold 503 712 (29%)
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Revenue $174.3M $240.5M (28%)
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Gross profit $10.6M $16.7M (37%)
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Net loss ($17.3M) ($15.4M) (12%)
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Adjusted EBITDA ($11.5M) ($7.1M) (63%)
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Diluted Net Loss per Share ($0.63) ($0.57) (11%)
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Gross profit per home sold $21,100 $23,400 (10%)
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Contribution profit (loss) after interest per
home sold $5,500 $10,200 (46%)
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Cash and cash equivalents $43.0M $76.0M (43%)
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FY 2024 Financial Results (year over year)
Percentage
2024 2023 Change
--------------------------------------------- -------- --------- ----------
Homes acquired 2,443 2,812 (13%)
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Homes sold 2,707 3,674 (26%)
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Revenue $918.8M $1,314.4M (30%)
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Gross profit $72.2M $70.2M 3%
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Net loss ($62.2M) ($117.2M) 47%
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Adjusted EBITDA ($29.2M) ($82.4M) 65%
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Diluted Net Loss per Share ($2.27) ($4.44) 49%
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Gross profit per home sold $26,700 $19,100 40%
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Contribution profit (loss) after interest per
home sold $11,500 ($13,900) n/a
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Cash and cash equivalents $43.0M $76.0M (43%)
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Additional information regarding Offerpad's fourth quarter and full year 2024 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 2025 Outlook
Offerpad is providing its first quarter outlook for 2025 as follows:
Q1 2025 Outlook
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Homes Sold 450 to 500
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Revenue $150M to $170M
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Adjusted EBITDA(1) Slightly Better
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(1) See Non-GAAP financial measures below for an explanation of why a
reconciliation of this guidance cannot be provided.
Conference Call and Webcast Details
Brian Bair, Chairman and CEO, and Peter Knag, CFO, will host a conference call and accompanying webcast on February 24, 2025, at 4:30 p.m. ET. The webcast can be accessed on Offerpad's Investor Relations website. Those interested can register here. Access to a replay of the webcast will be available from the same website address shortly after the live webcast concludes.
About Offerpad
Offerpad, dedicated to simplifying the process of buying and selling homes, is a publicly traded company committed to providing comprehensive solutions that removes the friction from real estate. Our advanced real estate platform offers a range of services, from consumer cash offers to B2B renovation solutions and industry partnership programs, all tailored to meet the unique needs of our clients. Since 2015, we have leveraged local expertise in residential real estate alongside proprietary technology to guide homeowners at every step. Learn more at www.offerpad.com.
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Forward-Looking Statements
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