In a Q4 2023 earnings call Feb. 26, iBuyer Offerpad put a positive spin on negative news of a $15.4 million loss, down 23% from Q3 2023 and 87% down from a year ago, when the company lost $121.1 million. Offerpad’s overall 2023 net loss totaled $117.2 million, down from $148.6 million in 2022.
“We successfully navigated 2023 from a position of operational excellence,” said Brian Bair, chairman and CEO. “During the year, we acted decisively to streamline the business and reduce costs, setting us up to drive improved top line growth and profitability in 2024 and beyond. At the same time, our team remains focused on leveraging our foundational cash offering to grow Offerpad’s asset light services and diversify our revenue streams.
“Looking at 2024, we will continue to prioritize our strategic imperatives, which include removing the friction from real estate, advancing our asset light product lines, and expanding our partner ecosystem. We’re proactively optimizing our capital allocation across our highest performing and most efficient markets. We are particularly enthusiastic about the opportunity to build upon our Agent Partnership Program and strengthen our position as a trusted solutions center for customers and partners across the real estate landscape.”
Offerpad sold more homes (712) than it acquired (678), an improvement from Q3 2023 when it bought 227 more homes (930) than it sold (703). Offerpad expects to sell between 750-850 homes during the first quarter of 2024 and generate $245-$285 million in revenue.
Offerpad stock was at $9.10 before the report and gained 3% in after-hours trading.
Q4 2023 highlights include:
- 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 4Q 2023 improved to 97 days, down from 142 days in 4Q 2022
- Inventory owned 180+ days at year end improved to 4.4%, down from 35% in 2022
- Increased asset-light revenue streams, presenting 43% of unit transactions in 2023, versus 24% in 2022
- Increased closed renovation projects by 148% in 4Q 2023 sequentially
- Expanded Offerpad’s Agent Partnership Program to more than 20% of overall requests in 4Q 202
