In a Q1 earnings call May 6, technology real estate company Offerpad Chairman and CEO Brian Bair put as positive a spin as he could on numbers that continue to exist in the negative, preferring to accentuate a growth pattern through smaller losses this year over last.
The iBuyer’s revenue was sharply down in the first quarter, with revenue of $285.4 million between January and March, down 53% compared to the $609.6 million in revenue in Q1 2023. But the quarterly loss to $17.5 million represents a 71% upgrade over the $59.4 million it lost a year earlier.
There were further ups and downs in the quarter. The Chandler, Arizona based company bought 806 homes, up from 364 in Q1 2023, but sold 847 homes, down from 1,609 a year ago.
“The first quarter of 2024 continued the positive trajectory we experienced exiting 2023,” said Bair. “While the macro is still volatile, the first quarter was one of increasing stability, and we believe this trend will continue through 2024. We are making steady progress against our key strategic imperatives. We are focused on expanding our asset light platform services, particularly Renovate, which grew 78% in the quarter; increasing our buy box; growing our partner ecosystem; and achieving adjusted EBITDA profitability.
“Renovate completed approximately 400 projects, generating over $5 million in revenue, setting us on a trajectory for significant annual revenue growth compared to 2023,” continued Bair. “We’re building a roster of diverse customers, and I couldn’t be more excited about what the future holds.
As we look ahead, we anticipate continued improvement in profitability in the second quarter, supported by our focus on operating leverage and expanding contribution margins. We are committed to strategically investing in, and growing, our asset-light services while continuing to expand upon our cash offer foundation.”
Offerpad stock, which was at $9.10 before the company’s Q4 2023 report, was at $7.26 in after-hours trading following the new report.
Q1 2024 highlights include:
- Improved net loss 71% from the prior year and delivered sequential improvement in key metrics of homes sold, revenue, and Adjusted EBITDA
- Time to cash for homes sold in the quarter of 113 days, down from 185 the prior year
- Inventory owned 180+ days ended the quarter at 8.5% down from 32.3% the prior year
- Increased asset light platform services, representing 43% of unit transactions in the quarter, versus 34% the prior year
- Record quarter for Renovate, with closed renovation projects growing 78% versus the prior year, generating more than $5M in revenue
- Continued progress on Offerpad’s Agent Partnership Program, growing acquisitions from that channel more than 50% versus the prior quarter
