NYSE$OPAD

Offerpad Solutions Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Offerpad's Q4 2023 performance reflected sequential improvements in revenue and key metrics, with a strategic focus on asset-light services and cost reduction.

Offerpad reported Q4 2023 financial results, demonstrating sequential improvements in homes sold, revenue, and Adjusted EBITDA, aligning with provided guidance. The company's revenue for the quarter reached $240.5 million. Strategic initiatives, including streamlining the business and expanding asset-light services, are expected to drive growth and profitability in 2024.

  • Improved net loss and delivered sequential improvement in key metrics of homes sold, revenue, and adjusted EBITDA, in line with guidance.
  • Time to cash for homes sold in Q4 2023 improved to 97 days, down from 142 days in Q4 2022.
  • Inventory owned 180+ days at year end improved to 4.4%, down from 35% in 2022.
  • Increased closed renovation projects by 148% in Q4 2023 sequentially.

Headline financials

Total Revenue

$240M

Previous: $677M-64.5%
EPS (adj)

-$0.56

Previous: -$7.50+92.5%
Homes Acquired

678

No prior period
Homes Sold

712

No prior period
Gross Profit per Home Sold

$23.4K

No prior period
Contribution Profit per Home

$10.2K

No prior period
Adjusted EBITDA

-$7.1M

No prior period
Capital Expenditures

-$2.61M

Previous: $153K-1803.3%
Net Income

-$15.4M

Previous: -$121M+87.3%
Operating Income

-$11.3M

Previous: -$110M+89.8%
Gross Profit

$16.7M

Previous: -$44.9M+137.2%
R&D Expense

$1.24M

No prior period
Stock-Based Comp

$2M

Previous: $2.01M-0.7%

Revenue & EPS history

Offerpad · Revenue · Quarterly

$240M

Q4 2023-64.5%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Offerpad · $2.81M total across 1 segment · Q1 2023

  • Renovate
    $2.81M

Forward guidance

Offerpad provided its first quarter outlook for 2024.

Tailwinds

  • Homes Sold between 750 and 850
  • Revenue between $245M and $285M
  • Focus on strategic imperatives
  • Optimizing capital allocation
  • Build upon Agent Partnership Program

Headwinds

  • Adjusted EBITDA between ($10M) and ($2.5M)
  • Subject to general economic conditions
  • Health of the U.S. residential real estate industry
  • Ability to accurately value and manage real estate inventory
  • Failure to meet the New York Stock Exchange’s continued listing standards

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 Q4 2023

Historical avgQ4 2023

-5.9%

Avg return

Earnings day

-5.6%

Avg return

5 days after

+34.7%

Avg return

30 days after

25%

6 / 24 earnings

Positive

+26.4%

Q4 2021

Best reaction

-26.1%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%-17.0%+859.2%
Q4 2025-6.8%-3.7%-17.3%
Q3 2025-26.1%-21.7%-13.9%
Q1 2025-9.4%+1.9%+4.9%
Q4 2024-3.6%-10.0%-18.2%
Q3 2024+1.3%+17.0%+56.7%
Q2 2024-16.8%-22.5%-7.2%
Q1 2024-8.9%-3.6%-35.1%
Q4 2023-6.5%-6.9%-9.1%
Q3 2023+1.8%+3.5%+28.2%
Q2 2023-4.9%-14.0%+5.8%
Q1 2023-4.7%+15.9%+27.9%
Q4 2022-9.8%-18.2%-26.6%
Q3 2022-26.0%-29.4%-32.2%
Q2 2022-17.7%-20.5%-36.4%
Q1 2022+2.5%-11.0%-6.8%
Q2 2021-11.4%-12.5%+1.8%
Q4 2019-11.4%-12.5%+1.8%
Q1 2020-11.4%-12.5%+1.8%
Q4 2021+26.4%+32.9%+45.9%
Q3 2021+2.3%+11.0%+5.5%
Q1 2021+0.0%+0.0%+0.3%
Q4 2020+0.0%+0.0%-1.3%
Q2 2020+0.0%+0.0%-1.3%
Q3 2020

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