NYSE$DFH

Dream Finders Homes Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Dream Finders Homes reported record earnings for Q2 2021, with a 193% YoY increase in quarterly pre-tax income.

Dream Finders Homes announced strong Q2 2021 results, highlighted by an 83% increase in home sales revenues and a 270 basis points improvement in gross margin percentage compared to Q2 2020. The company's focus on shareholder returns led to a substantial increase in return on equity. They delivered 996 homes with an average sales price of $358,604.

  • Total revenues increased by 83% to $365 million compared to Q2 2020.
  • Home closings rose by 91% to 996 homes compared to Q2 2020.
  • Gross margin increased by 270 basis points to 16.5% compared to Q2 2020.
  • Net new orders increased by 92% to 1,521 homes compared to Q2 2020.

Headline financials

Total Revenue

$365M

Previous: $200M+82.8%
EPS (adj)

$0.24

Previous: $117.43-99.8%
Net New Orders

1.5K

Previous: 792+92.0%
Average Sales Price

$359K

Previous: $367K-2.2%
Cancellation Rate

14.4%

Previous: 18.0%-20.0%
Ending Backlog Homes

4.1K

Previous: 1.5K+183.9%
Ending Backlog Value

$1.65B

Previous: $540M+205.0%
Active Communities

117

Previous: 86+36.0%
Capital Expenditures

-$1.28M

No prior period
Free Cash Flow

$27.3M

No prior period
Net Income

$28.6M

Previous: $11.7M+143.7%
Operating Income

$30M

Previous: $11.5M+160.7%
Gross Profit

$61.7M

Previous: $28.6M+116.0%
Cash & Equivalents

$6.15M

No prior period
Total Assets

$932M

No prior period
Stock-Based Comp

$1.45M

No prior period

Revenue & EPS history

Dream Finders Homes · Revenue · Quarterly

$365M

Q2 2021+82.8%vs Q2 2020
Beat estimate in 6 of 12 quarters(50%)
ActualEstimate

Revenue by segment

Dream Finders Homes · $943M total across 1 segment · Q2 2023

  • Homebuilding
    $943M+19.2%

Forward guidance

Dream Finders Homes maintains its full year 2021 guidance of 5,000 to 6,000 home closings and anticipates an increase in the average sales price of homes closed in future quarters, as the average sales price in backlog as of June 30, 2021 was $398,048.

Tailwinds

  • Low interest rate environment supports continued demand.
  • Persistent relocation patterns into core markets drive sales.
  • Company is well positioned to achieve expected growth in 2021.
  • Average sales price in backlog as of June 30, 2021 was $398,048.
  • Management is determined to serve its customers by innovating ways to deliver homes and rapidly adapting to demand changes.

Headwinds

  • Difficulties encountered in labor and materials constraints.
  • Changing consumer dynamics created by the current environment.
  • General economic conditions, including interest rates and mortgage availability, remaining similar to those experienced in the first half of 2021.
  • Construction costs and overall absorption rates in the remainder of 2021 are consistent with the Company’s recent experience.
  • Governmental regulations relating to land development, home construction and COVID-19 are similar to those currently in place.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.5%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.2%

Avg return

30 days after

43%

9 / 21 earnings

Positive

+25.2%

Q2 2023

Best reaction

-12.4%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%+0.4%+9.2%
Q4 2025-2.0%-11.8%-29.7%
Q3 2025-8.5%-11.8%-8.5%
Q1 2025-3.6%+0.6%-1.1%
Q4 2024+17.9%+13.9%+12.7%
Q3 2024-1.3%+4.0%+6.8%
Q2 2024-10.5%-13.2%+6.0%
Q1 2024-12.4%-13.7%-20.3%
Q4 2023+11.6%+9.3%+26.6%
Q3 2023+11.7%+13.3%+26.1%
Q2 2023+25.2%+25.6%+23.2%
Q1 2023+2.3%+5.6%+21.4%
Q4 2022-0.3%-0.8%+6.1%
Q3 2022+3.5%-0.6%-7.4%
Q2 2022-2.5%-3.5%-5.4%
Q1 2022-6.4%+1.6%-10.1%
Q4 2021+5.1%-6.3%-21.3%
Q3 2021+2.5%+9.7%+16.2%
Q2 2021-8.7%-13.8%-16.6%
Q1 2021-8.8%-7.7%-15.7%
Q4 2020-7.2%-17.7%-14.1%
Q3 2020
Q2 2020
Q1 2020
Q4 2019

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