Q4 2023 revenue of $240.5 million up
sequentially and in-line with guidance
Full year 2023 revenue of $1.3
billion
Reiterates expectation to achieve
sustainable Adjusted EBITDA profitability in 2024
Offerpad Solutions Inc. (“Offerpad”) (NYSE: OPAD), a leading
tech-enabled platform for residential real estate, today released
financial results for the three months ended and full year December
31, 2023.
“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.”
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 4Q23 improved to 97 days, down
from 142 days in 4Q22
- 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 4Q23
sequentially
- Expanded Offerpad’s Agent Partnership Program to more than 20%
of overall requests in 4Q23
Q4 2023 Financial Results (quarter over quarter)
Q4 2023
Q3 2023
Percentage
Change
Homes acquired
678
930
(27%)
Homes sold
712
703
1%
Revenue
$240.5M
$234.2M
3%
Gross profit
$16.7M
$24.0M
(30%)
Net loss
($15.4M)
($20.0M)
23%
Adjusted EBITDA
($7.0M)
($13.3M)
47%
Diluted Net Loss per Share
($0.57)
($0.73)
22%
Gross profit per home sold
$23,400
$34,100
(31%)
Contribution profit (loss) after
interest per home sold
$10,200
$27,200
(63%)
Cash and cash equivalents
$76.0M
$106.0M
(28%)
Q4 2023 Financial Results (year over year)
Q4 2023
Q4 2022
Percentage
Change
Homes acquired
678
539
26%
Homes sold
712
1,865
(62%)
Revenue
$240.5M
$677.2M
(64%)
Gross profit
$16.7M
($44.9M)
n.a.
Net loss
($15.4M)
($121.1M)
87%
Adjusted EBITDA
($7.0M)
($103.7M)
93%
Diluted Net Loss per Share
($0.57)
($7.35)
92%
Gross profit (loss) per home
sold
$23,400
($24,100)
n.a.
Contribution profit (loss) after
interest per home sold
$10,200
($32,800)
n.a.
Cash and cash equivalents
$76.0M
$97.2M
(22%)
2023 Financial Results (year over year)
2023
2022
Percentage
Change
Homes acquired
2,812
9,034
(69%)
Homes sold
3,674
10,635
(65%)
Revenue
$1.3B
$4.0B
(67%)
Gross profit
$70.2M
$182.4M
(62%)
Net loss
($117.2M)
($148.6M)
21%
Adjusted EBITDA
($82.4M)
($103.8M)
21%
Diluted Net Loss per Share
($4.44)
($9.09)
51%
Gross profit per home sold
$19,100
$17,200
11%
Contribution profit (loss) after
interest per home sold
($13,900)
$9,300
n.a.
Cash and cash equivalents
$76.0M
$97.2M
(22%)
Additional information regarding Offerpad’s fourth quarter and
full year 2023 financial results and management commentary can be
found by accessing the Company’s Quarterly Letter to Shareholders
on the Offerpad investor relations website.
First Quarter 2024 Outlook
Offerpad is providing its first quarter outlook for 2024 as
follows:
Q1 2024 Outlook
Homes Sold
750 – 850
Revenue
$245M – $285M
Adjusted EBITDA1
($10M) – ($2.5M)
1 See Non-GAAP financial measures below
for an explanation of why a reconciliation of this guidance cannot
be provided.
Conference Call and Webcast Details
Brian Bair, Chairman and CEO, and James Grout, Interim Principal
Financial Officer, will host a conference call and accompanying
webcast on February 26, 2024, at 4:30 p.m. ET. The webcast can be
accessed on Offerpad’s Investor Relations website. Those interested
can register here. Access to a replay of the webcast will be
available from the same website address shortly after the live
webcast concludes.
About Offerpad
Offerpad’s mission is to deliver the best home buying and
selling experience. From cash offers and flexible listing options
to mortgages and buyer services, Offerpad has been helping
homeowners since 2015. We pair our local expertise in residential
real estate with proprietary technology to put you in control of
the process and help find the right solution that fits your needs.
Visit Offerpad.com for more information.
#OPAD_IR
Forward-Looking Statements
Certain statements in this press release may be considered
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to future events or Offerpad’s future
financial or operating performance. For example, statements
regarding Offerpad’s financial outlook, including homes sold and
Adjusted EBITDA, for the fourth quarter 2023, and expectations
regarding profitability, including the timing of reaching
sustainable positive Adjusted EBITDA, are forward-looking
statements. In some cases, you can identify forward-looking
statements by terminology such as “pro forma,” “may,” “should,”
“could,” “might,” “plan,” “possible,” “project,” “strive,”
“budget,” “forecast,” “expect,” “intend,” “will,” “estimate,”
“anticipate,” “believe,” “predict,” “potential” or “continue,” or
the negatives of these terms or variations of them or similar
terminology. Such forward-looking statements are subject to risks,
uncertainties, and other important factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements. Factors that may impact such
forward-looking statements include, but are not limited to,
Offerpad’s ability to respond to general economic conditions; the
health of the U.S. residential real estate industry; Offerpad’s
ability to grow market share in its existing markets or any new
markets it may enter; Offerpad’s ability to manage its growth and
its costs structure effectively; Offerpad’s ability to accurately
value and manage real estate inventory, maintain an adequate and
desirable supply of real estate inventory, and manage renovations;
Offerpad’s ability to successfully launch new product and service
offerings, and to manage, develop and refine its technology
platform; Offerpad’s ability to maintain and enhance its products
and brand, and to attract customers; Offerpad’s ability to achieve
and maintain profitability in the future; the success of strategic
relationships with third parties; and Offerpad’s failure to meet
the New York Stock Exchange’s continued listing standards. These
and other important factors discussed under the caption "Risk
Factors" in Offerpad’s Annual Report on Form 10-K for the year
ended December 31, 2023 to be with the Securities and Exchange
Commission on or about February 27, 2024, and Offerpad’s other
reports filed with the Securities and Exchange Commission could
cause actual results to differ materially from those indicated by
the forward-looking statements made in this press release. These
forward-looking statements are based upon estimates and assumptions
that, while considered reasonable by Offerpad and its management,
are inherently uncertain. Nothing in this press release should be
regarded as a representation by any person that the forward-looking
statements set forth herein will be achieved or that any of the
contemplated results of such forward-looking statements will be
achieved. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. Offerpad
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required under applicable securities
laws.
OFFERPAD SOLUTIONS
INC.
Condensed Consolidated
Statements of Operations
Three Months Ended
December 31,
Year Ended
December 31,
(in thousands, except per share data)
(Unaudited)
2023
2022
2023
2022
Revenue
$
240,458
$
677,214
$
1,314,412
$
3,952,314
Cost of revenue
223,766
722,074
1,244,231
3,769,892
Gross profit (loss)
16,692
(44,860
)
70,181
182,422
Operating expenses:
Sales, marketing and operating
17,932
48,761
116,558
238,931
General and administrative
8,775
13,300
50,091
58,718
Technology and development
1,236
2,978
7,945
12,090
Total operating expenses
27,943
65,039
174,594
309,739
Loss from operations
(11,251
)
(109,899
)
(104,413
)
(127,317
)
Other income (expense):
Change in fair value of warrant
liabilities
(109
)
3,360
68
23,522
Interest expense
(5,154
)
(15,135
)
(18,859
)
(45,991
)
Other income, net
1,065
861
6,149
1,532
Total other expense
(4,198
)
(10,914
)
(12,642
)
(20,937
)
Loss before income taxes
(15,449
)
(120,813
)
(117,055
)
(148,254
)
Income tax benefit (expense)
8
(324
)
(163
)
(359
)
Net loss
$
(15,441
)
$
(121,137
)
$
(117,218
)
$
(148,613
)
Net loss per share, basic
$
(0.57
)
$
(7.35
)
$
(4.44
)
$
(9.09
)
Net loss per share, diluted
$
(0.57
)
$
(7.35
)
$
(4.44
)
$
(9.09
)
Weighted average common shares
outstanding, basic
27,292
16,492
26,385
16,343
Weighted average common shares
outstanding, diluted
27,292
16,492
26,385
16,343
OFFERPAD SOLUTIONS
INC.
Condensed Consolidated Balance
Sheets
As of December 31,
(in thousands, except par value per share)
(Unaudited)
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
75,967
$
97,241
Restricted cash
3,967
43,058
Accounts receivable
9,935
2,350
Real estate inventory
276,500
664,697
Prepaid expenses and other current
assets
5,236
6,833
Total current assets
371,605
814,179
Property and equipment, net
4,517
5,194
Other non-current assets
3,572
5,696
TOTAL ASSETS
$
379,694
$
825,069
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
4,946
$
4,647
Accrued and other current liabilities
13,859
28,252
Secured credit facilities and other debt,
net
227,132
605,889
Secured credit facilities and other debt -
related party
30,092
60,176
Total current liabilities
276,029
698,964
Warrant liabilities
471
539
Other long-term liabilities
1,418
3,689
Total liabilities
277,918
703,192
Commitments and contingencies
Stockholders’ equity:
Class A common stock, $0.0001 par value;
2,000,000 shares authorized; 27,233 and 15,491 shares issued and
outstanding as of December 31, 2023 and 2022, respectively
3
2
Class B common stock, zero shares
authorized, issued and outstanding as of December 31, 2023; and
$0.0001 par value, 20,000 shares authorized; 988 shares issued and
outstanding as of December 31, 2022
—
—
Additional paid in capital
499,660
402,544
Accumulated deficit
(397,887
)
(280,669
)
Total stockholders’ equity
101,776
121,877
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
379,694
$
825,069
OFFERPAD SOLUTIONS
INC.
Condensed Consolidated
Statements of Cash Flows
Year Ended December
31,
($ in thousands) (Unaudited)
2023
2022
Cash flows from operating
activities:
Net loss
$
(117,218
)
$
(148,613
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation
728
1,022
Amortization of debt financing costs
4,343
2,948
Real estate inventory valuation
adjustment
8,937
93,810
Stock-based compensation
7,915
8,307
Change in fair value of warrant
liabilities
(68
)
(23,522
)
Gain on sale of derivative instruments
(2,124
)
—
Loss on disposal of property and
equipment
76
—
Changes in operating assets and
liabilities:
Accounts receivable
(7,585
)
3,815
Real estate inventory
379,260
374,064
Prepaid expenses and other assets
3,733
(275
)
Accounts payable
299
(1,752
)
Accrued and other liabilities
(16,664
)
(4,402
)
Net cash provided by operating
activities
261,632
305,402
Cash flows from investing
activities:
Purchases of property and equipment
(127
)
(1,070
)
Purchases of derivative instruments
(2,569
)
—
Proceeds from sale of derivative
instruments
4,681
—
Net cash provided by (used in)
investing activities
1,985
(1,070
)
Cash flows from financing
activities:
Borrowings from credit facilities and
other debt
875,559
3,178,033
Repayments of credit facilities and other
debt
(1,286,795
)
(3,540,466
)
Payment of debt financing costs
(1,948
)
(646
)
Borrowings from warehouse lending
facility
25,193
—
Repayments of warehouse lending
facility
(25,193
)
—
Proceeds from issuance of pre-funded
warrants
90,000
—
Proceeds from exercise of pre-funded
warrants
11
—
Issuance cost of pre-funded warrants
(784
)
—
Proceeds from exercise of stock
options
53
4,898
Payments for taxes related to stock-based
awards
(78
)
(285
)
Net cash used in by financing
activities
(323,982
)
(358,466
)
Net change in cash, cash equivalents
and restricted cash
(60,365
)
(54,134
)
Cash, cash equivalents and restricted
cash, beginning of period
140,299
194,433
Cash, cash equivalents and restricted
cash, end of period
$
79,934
$
140,299
Reconciliation of cash, cash
equivalents and restricted cash to the condensed consolidated
balance sheet:
Cash and cash equivalents
$
75,967
$
97,241
Restricted cash
3,967
43,058
Total cash, cash equivalents and
restricted cash
$
79,934
$
140,299
Supplemental disclosure of cash flow
information:
Cash payments for interest
$
24,730
$
59,732
Non-GAAP Financial Measures
In addition to Offerpad’s results of operations above, Offerpad
reports certain financial measures that are not required by, or
presented in accordance with, U.S. generally accepted accounting
principles (“GAAP”). These measures have limitations as analytical
tools when assessing Offerpad’s operating performance and should
not be considered in isolation or as a substitute for GAAP
measures, including gross profit and net income.
Offerpad may calculate or present its non-GAAP financial
measures differently than other companies who report measures with
similar titles and, as a result, the non-GAAP financial measures
Offerpad reports may not be comparable with those of companies in
Offerpad’s industry or in other industries. Offerpad has not
provided a quantitative reconciliation of forecasted Adjusted
EBITDA to forecasted net income (loss) within this press release
because Offerpad is unable to calculate certain reconciling items
without making unreasonable efforts. These items, which include,
but are not limited to, stock-based compensation with respect to
future grants and forfeitures, could materially affect the
computation of forward-looking net income (loss), are inherently
uncertain and depend on various factors, some of which are outside
of Offerpad’s control.
Adjusted Gross Profit, Contribution Profit, and Contribution
Profit After Interest (and related margins)
To provide investors with additional information regarding
Offerpad’s margins, Offerpad has included Adjusted Gross Profit,
Contribution Profit, and Contribution Profit After Interest (and
related margins), which are non-GAAP financial measures. Offerpad
believes that Adjusted Gross Profit, Contribution Profit, and
Contribution Profit After Interest are useful financial measures
for investors as they are used by management in evaluating unit
level economics and operating performance across Offerpad’s
markets. Each of these measures is intended to present the
economics related to homes sold during a given period. Offerpad
does so by including revenue generated from homes sold (and
ancillary services) in the period and only the expenses that are
directly attributable to such home sales, even if such expenses
were recognized in prior periods, and excluding expenses related to
homes that remain in real estate inventory as of the end of the
period presented. Contribution Profit provides investors a measure
to assess Offerpad’s ability to generate returns on homes sold
during a reporting period after considering home acquisition costs,
renovation and repair costs, and adjusting for holding costs and
selling costs. Contribution Profit After Interest further impacts
gross profit by including interest costs (including senior and
mezzanine secured credit facilities) attributable to homes sold
during a reporting period. Offerpad believes these measures
facilitate meaningful period over period comparisons and illustrate
Offerpad’s ability to generate returns on assets sold after
considering the costs directly related to the assets sold in a
presented period.
Adjusted Gross Profit, Contribution Profit and Contribution
Profit After Interest (and related margins) are supplemental
measures of Offerpad’s operating performance and have limitations
as analytical tools. For example, these measures include costs that
were recorded in prior periods under GAAP and exclude, in
connection with homes held in real estate inventory at the end of
the period, costs required to be recorded under GAAP in the same
period.
Accordingly, these measures should not be considered in
isolation or as a substitute for analysis of Offerpad’s results as
reported under GAAP. Offerpad includes a reconciliation of these
measures to the most directly comparable GAAP financial measure,
which is gross profit.
Adjusted Gross Profit / Margin
Offerpad calculates Adjusted Gross Profit as gross profit under
GAAP adjusted for (1) net real estate inventory valuation
adjustment plus (2) interest expense associated with homes sold in
the presented period and recorded in cost of revenue. Net real
estate inventory valuation adjustment is calculated by adding back
the real estate inventory valuation adjustment charges recorded
during the period on homes that remain in real estate inventory at
period end and subtracting the real estate inventory valuation
adjustment charges recorded in prior periods on homes sold in the
current period. Offerpad defines Adjusted Gross Margin as Adjusted
Gross Profit as a percentage of revenue.
Offerpad views this metric as an important measure of business
performance, as it captures gross margin performance isolated to
homes sold in a given period and provides comparability across
reporting periods. Adjusted Gross Profit helps management assess
performance across the key phases of processing a home
(acquisitions, renovations, and resale) for a specific resale
cohort.
Contribution Profit / Margin
Offerpad calculates Contribution Profit as Adjusted Gross
Profit, minus (1) direct selling costs incurred on homes sold
during the presented period, minus (2) holding costs incurred in
the current period on homes sold during the period recorded in
sales, marketing, and operating, minus (3) holding costs incurred
in prior periods on homes sold in the current period recorded in
sales, marketing, and operating, plus (4) other income, net which
is primarily comprised of interest income earned on our cash and
cash equivalents and fair value adjustments of derivative financial
instruments. The composition of Offerpad’s holding costs is
described in the footnotes to the reconciliation table below.
Offerpad defines Contribution Margin as Contribution Profit as a
percentage of revenue.
Offerpad views this metric as an important measure of business
performance as it captures the unit level performance isolated to
homes sold in a given period and provides comparability across
reporting periods. Contribution Profit helps management assess
inflows and outflow directly associated with a specific resale
cohort.
Contribution Profit / Margin After Interest
Offerpad defines Contribution Profit After Interest as
Contribution Profit, minus (1) interest expense associated with
homes sold in the presented period and recorded in cost of revenue,
minus (2) interest expense associated with homes sold in the
presented period, recorded in costs of sales, and previously
excluded from Adjusted Gross Profit, and minus (3) interest expense
under Offerpad’s senior and mezzanine secured credit facilities
incurred on homes sold during the period. This includes interest
expense recorded in prior periods in which the sale occurred.
Offerpad’s senior and mezzanine secured credit facilities are
secured by their homes in real estate inventory and drawdowns are
made on a per-home basis at the time of purchase and are required
to be repaid at the time the homes are sold. Offerpad defines
Contribution Margin After Interest as Contribution Profit After
Interest as a percentage of revenue.
Offerpad views this metric as an important measure of business
performance. Contribution Profit After Interest helps management
assess Contribution Margin performance, per above, when fully
burdened with costs of financing.
The following tables present a reconciliation of Offerpad’s
Adjusted Gross (Loss) Profit, Contribution (Loss) Profit and
Contribution (Loss) Profit After Interest to Offerpad’s Gross
(Loss) Profit, which is the most directly comparable GAAP measure,
and Contribution (Loss) Profit Per Home Sold and Contribution
(Loss) Profit After Interest Per Home Sold to Offerpad’s Gross
(Loss) Profit Per Home Sold, which is the most directly comparable
GAAP measure, for the periods indicated:
Three Months Ended
December 31,
Year Ended
December 31,
(in thousands, except percentages and
homes sold, unaudited)
2023
2022
2023
2022
Gross profit (loss) (GAAP)
$
16,692
$
(44,860)
$
70,181
$
182,422
Gross margin
6.9
%
(6.6
%)
5.3
%
4.6
%
Homes sold
712
1,865
3,674
10,635
Gross profit (loss) per home
sold
$
23.4
$
(24.1)
$
19.1
$
17.2
Adjustments:
Real estate inventory valuation adjustment
- current period (1)
565
44,075
837
58,413
Real estate inventory valuation adjustment
- prior period (2)
(713
)
(25,469
)
(58,125
)
(1,205
)
Interest expense capitalized (3)
964
3,081
7,234
12,660
Adjusted gross profit (loss)
$
17,508
$
$(23,173)
$
20,127
$
252,290
Adjusted gross margin
7.3
%
(3.4
%)
1.5
%
6.4
%
Adjustments:
Direct selling costs (4)
(5,829
)
(20,584
)
(35,225
)
(97,381
)
Holding costs on sales - current period
(5)(6)
(742
)
(1,251
)
(3,357
)
(8,342
)
Holding costs on sales - prior period
(5)(7)
(285
)
(1,209
)
(2,166
)
(918
)
Other income, net (8)
1,065
861
6,149
1,532
Contribution profit (loss)
$
11,717
$
$(45,356)
$
(14,472
)
$
147,181
Contribution margin
4.9
%
(6.7
%)
(1.1
%)
3.7
%
Homes sold
712
1,865
3,674
10,635
Contribution profit (loss) per home
sold
$
16.5
$
(24.3)
$
(3.9
)
$
13.8
Adjustments:
Interest expense capitalized (3)
(964
)
(3,081
)
(7,234
)
(12,660
)
Interest expense on homes sold - current
period (9)
(2,041
)
(5,858
)
(15,289
)
(32,022
)
Interest expense on homes sold - prior
period (10)
(1,466
)
(6,943
)
(13,924
)
(3,737
)
Contribution profit (loss) after
interest
$
7,246
$
(61,238
)
$
(50,919
)
$
98,762
Contribution margin after interest
3.0
%
(9.0
%)
(3.9
%)
2.5
%
Homes sold
712
1,865
3,674
10,635
Contribution profit (loss) after
interest per home sold
$
10.2
$
(32.8
)
$
(13.9
)
$
9.3
(1)
Real estate inventory valuation adjustment
– current period is the real estate inventory valuation adjustments
recorded during the period presented associated with homes that
remain in real estate inventory at period end.
(2)
Real estate inventory valuation adjustment
– prior period is the real estate inventory valuation adjustments
recorded in prior periods associated with homes that sold in the
period presented.
(3)
Interest expense capitalized represents
all interest related costs, including senior and mezzanine secured
credit facilities, incurred on homes sold in the period presented
that were capitalized and expensed in cost of sales at the time of
sale.
(4)
Direct selling costs represents selling
costs incurred related to homes sold in the period presented. This
primarily includes broker commissions and title and escrow closing
fees.
(5)
Holding costs primarily include insurance,
utilities, homeowners association dues, property taxes, cleaning,
and maintenance costs.
(6)
Represents holding costs incurred on homes
sold in the period presented and expensed to Sales, marketing, and
operating on the Condensed Consolidated Statements of
Operations.
(7)
Represents holding costs incurred in prior
periods on homes sold in the period presented and expensed to
Sales, marketing, and operating on the Condensed Consolidated
Statements of Operations.
(8)
Other income, net principally represents
interest income earned on our cash and cash equivalents and fair
value adjustments of derivative financial instruments.
(9)
Represents both senior and mezzanine
interest expense incurred on homes sold in the period presented and
expensed to interest expense on the Condensed Consolidated
Statements of Operations.
(10)
Represents both senior and
mezzanine secured credit facilities interest expense incurred in
prior periods on homes sold in the period presented and expensed to
interest expense on the Condensed Consolidated Statements of
Operations.
Adjusted Net Income (Loss) and Adjusted EBITDA
Offerpad also presents Adjusted Net Income (Loss) and Adjusted
EBITDA, which are non-GAAP financial measures, which the management
team uses to assess Offerpad’s underlying financial performance.
Offerpad believes these measures provide insight into period over
period performance, adjusted for non-recurring or non-cash
items.
Offerpad calculates Adjusted Net Income (Loss) as GAAP Net
Income (Loss) adjusted for the change in fair value of warrant
liabilities. Offerpad defines Adjusted Net Income (Loss) Margin as
Adjusted Net Income (Loss) as a percentage of revenue.
Offerpad calculates Adjusted EBITDA as Adjusted Net Income
(Loss) adjusted for interest expense, amortization of capitalized
interest, taxes, depreciation and amortization and stock-based
compensation expense. Offerpad defines Adjusted EBITDA Margin as
Adjusted EBITDA as a percentage of revenue.
Adjusted Net Income (Loss) and Adjusted EBITDA are supplemental
to Offerpad’s operating performance measures calculated in
accordance with GAAP and have important limitations. For example,
Adjusted Net Income (Loss) and Adjusted EBITDA exclude the impact
of certain costs required to be recorded under GAAP and could
differ substantially from similarly titled measures presented by
other companies in Offerpad’s industry or companies in other
industries. Accordingly, these measures should not be considered in
isolation or as a substitute for analysis of Offerpad’s results as
reported under GAAP.
The following table presents a reconciliation of Offerpad’s
Adjusted Net Income (Loss) and Adjusted EBITDA to their GAAP Net
Income (Loss), which is the most directly comparable GAAP measure,
for the periods indicated:
Three Months Ended
December 31,
Year Ended
December 31,
(in thousands, except percentages,
unaudited)
2023
2022
2023
2022
Net loss (GAAP)
$
(15,441
)
$
(121,137
)
$
(117,218
)
$
(148,613
)
Change in fair value of warrant
liabilities
(109
)
(3,360
)
(68
)
(23,522
)
Adjusted net loss
$
(15,332
)
$
(124,497
)
$
(117,286
)
$
(172,135
)
Adjusted net loss margin
(6.4
)%
(18.4
)%
(8.9
)%
(4.4
)%
Adjustments:
Interest expense
5,154
15,135
18,859
45,991
Amortization of capitalized interest
(1)
964
3,081
7,234
12,660
Income tax expense (benefit)
(8)
324
163
359
Depreciation and amortization
172
258
728
1,022
Amortization of stock-based
compensation
2,000
2,014
7,915
8,307
Adjusted EBITDA
$
(7,050
)
$
(103,685
)
$
(82,387
)
$
(103,796
)
Adjusted EBITDA margin
(2.9
)%
(15.3
)%
(6.3
)%
(2.6
)%
(1)
Amortization of capitalized interest
represents all interest related costs, including senior and
mezzanine secured interest related costs, incurred on homes sold in
the period presented that were capitalized and expensed in cost of
sales at the time of sale.
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version on businesswire.com: https://www.businesswire.com/news/home/20240226235626/en/
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Grafico Azioni Offerpad Solutions (NYSE:OPAD)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Offerpad Solutions (NYSE:OPAD)
Storico
Da Gen 2024 a Gen 2025
