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Offerpad Solutions (OPAD) - 2024 Q4 - Annual Results
OPADOfferpad Solutions (OPAD)2025-02-24 21:16

Financial Performance - In FY 2024, Offerpad reported a net loss improvement of 47%, or 55million,comparedtotheprioryear[1].−RevenueforFY2024was55 million, compared to the prior year[1]. - Revenue for FY 2024 was 918.8 million, a decrease of 30% from 1.314billioninFY2023[7].−Totaloperatingexpensesdecreasedby321.314 billion in FY 2023[7]. - Total operating expenses decreased by 32% to 118.2 million in FY 2024, down from 174.6millioninFY2023[4].−NetlossfortheyearendedDecember31,2024,was174.6 million in FY 2023[4]. - Net loss for the year ended December 31, 2024, was 62,159, a significant improvement from a net loss of 117,218in2023,representinga47117,218 in 2023, representing a 47% reduction[19]. - Net cash provided by operating activities decreased to 20,833 in 2024 from 261,632in2023,indicatingadeclineofapproximately92261,632 in 2023, indicating a decline of approximately 92%[19]. - The company reported a significant reduction in debt repayments, totaling 829,461 in 2024, down from 1,286,795in2023,reflectingadecreaseofapproximately361,286,795 in 2023, reflecting a decrease of approximately 36%[19]. - Offerpad reported a GAAP net loss of 17,325,000 for the three months ended December 31, 2024, compared to a net loss of 15,441,000forthesameperiodin2023[40].−Theadjustednetlossforthesameperiodwas15,441,000 for the same period in 2023[40]. - The adjusted net loss for the same period was 17,216,000, with an adjusted net loss margin of 9.9%[40]. - Offerpad's adjusted net loss for the year ended December 31, 2024, was 62,399,000,animprovementfrom62,399,000, an improvement from 117,286,000 in 2023[40]. Profitability Metrics - Gross profit per home sold increased by 40% to 26,700inFY2024,upfrom26,700 in FY 2024, up from 19,100 in FY 2023[7]. - The contribution profit after interest per home sold was 11,500inFY2024,comparedtoalossof11,500 in FY 2024, compared to a loss of 13,900 in FY 2023[7]. - Gross profit for the year ended December 31, 2024, was 72,195,slightlyupfrom72,195, slightly up from 70,181 in 2023, resulting in a gross margin increase to 7.9% from 5.3%[33]. - Adjusted gross profit for the year was 80,126,comparedto80,126, compared to 20,127 in 2023, showing a substantial increase[33]. - Contribution profit for the year was 53,739,asignificantrecoveryfromalossof53,739, a significant recovery from a loss of 14,472 in 2023[33]. - Contribution profit after interest for 2024 was 31,123,comparedtoalossof31,123, compared to a loss of 50,919 in 2023, indicating a strong turnaround[33]. - Adjusted EBITDA for the three months ended December 31, 2024, was (11,483,000),reflectinganadjustedEBITDAmarginof(6.6(11,483,000), reflecting an adjusted EBITDA margin of (6.6%) compared to (2.9%) in the same period of 2023[40]. - The company’s adjusted EBITDA for the year ended December 31, 2024, was (29,222,000), showing a significant reduction from (82,387,000)in2023[40].OperationalMetrics−HomesacquiredinFY2024totaled2,443,adecreaseof13(82,387,000) in 2023[40]. Operational Metrics - Homes acquired in FY 2024 totaled 2,443, a decrease of 13% from 2,812 homes acquired in FY 2023[7]. - Homes sold in 2024 totaled 2,707, down from 3,674 in 2023, reflecting a decrease of about 26%[33]. - For Q4 2024, revenue was 174.3 million, down 28% from 240.5millioninQ42023[6].−Thetimetocash(TTC)improvedby18240.5 million in Q4 2023[6]. - The time to cash (TTC) improved by 18% year over year, coming in at 116 days[4]. - Offerpad's first quarter 2025 outlook projects homes sold between 450 to 500 and revenue between 150 million to 170million[9].CashandLiquidity−CashandcashequivalentsasofDecember31,2024,were170 million[9]. Cash and Liquidity - Cash and cash equivalents as of December 31, 2024, were 43.0 million, a decrease of 43% from 76.0millionintheprioryear[7].−Cash,cashequivalents,andrestrictedcashattheendoftheperiodwere76.0 million in the prior year[7]. - Cash, cash equivalents, and restricted cash at the end of the period were 73,626, down from 79,934atthebeginningoftheperiod[19].−Cashpaymentsforinterestremainedrelativelystableat79,934 at the beginning of the period[19]. - Cash payments for interest remained relatively stable at 24,464 in 2024, compared to 24,730in2023[19].OtherFinancialInformation−InterestexpenseforthethreemonthsendedDecember31,2024,was24,730 in 2023[19]. Other Financial Information - Interest expense for the three months ended December 31, 2024, was 4,084,000, down from 5,154,000inthesameperiodof2023[40].−Thecompanyexperiencedadecreaseinnetlossmarginfrom8.95,154,000 in the same period of 2023[40]. - The company experienced a decrease in net loss margin from 8.9% in 2023 to 6.8% in 2024[40]. - Amortization of stock-based compensation for the year ended December 31, 2024, was 8,080,000, compared to 7,915,000in2023[40].−Thechangeinfairvalueofwarrantliabilitieswas7,915,000 in 2023[40]. - The change in fair value of warrant liabilities was 109,000 for the three months ended December 31, 2024[40]. - Holding costs incurred on homes sold included insurance, utilities, and property taxes, impacting overall financial performance[39].