The iBuyer Offerpad continued to tout trimmed losses and increased number of homes acquired as improvements from Q2 to Q3 in its third quarter earnings report, released Wednesday afternoon.
In its latest earnings report on Nov. 1, the iBuyer reported a $20 million Q3 2023 net loss, down 11% from Q2’s loss of $22.3 million and a 75% reduction from the $80 million loss the company reported during Q3 of last year.
“We are pleased that we met both top and bottom-line expectations in the third quarter, despite a continued difficult macro environment. We are particularly proud of our expanding contribution margin,” said Brian Bair, Offerpad’s chairman and CEO. “We have proven we can perform in a difficult market, and we have exciting opportunities ahead of us. We are well positioned for further solid performance in 2024 as we take the friction out of real estate.”
“The third quarter marked my first full quarter with Offerpad. I’m very impressed with the team and pleased with our progress,” said Jawad Ahsan, Offerpad’s chief financial officer. “We have further refined our path to sustainable Adjusted EBITDA profitability in 2024 and beyond, while optimizing three key priorities. These include ensuring the business is on a path to become profitable and self-sustaining; future-proofing to mitigate against macro volatility; and, better aligning our marketing strategy with our customer behavior. I look forward to sharing our progress over the coming quarters.”
The tech company made some news this quarter with the announcement of a collaboration with Anywhere Real Estate, Inc., in which a new program, launched in October, allows seller requests from areas outside of Offerpad’s coverage to be served by certified agents affiliated with the Anywhere Leads Network.
Q3 2023 results compared with the prior quarter:
- Revenue was $234 million compared to $230 million
- Gross profit increased to $24 million from $22 million
- Net loss improved to $20 million from $22.3 million
- Adjusted EBITDA improved to $13.3 million from $17.3 million
- Diluted loss per share improved to $0.73 from $0.82
Q3 highlights include:
- Reported its highest gross margin since Q2 2021, which rose 57 basis points quarter-over-quarter from 9.7% to 10.2%.
- Contribution margin after interest rose nearly 900 basis points quarter-over-quarter from 0.8% to 8.2%, of which one-third was driven by asset-light products.
- Refined the Offerpad roadmap and optimized the organization to move toward sustainable Adjusted EBITDA profitability in 2024.
To read the full report, click here.
