Offerpad Solutions (US:OPAD)2025-02-24 21:16Financial Performance - In FY 2024, Offerpad reported a net loss improvement of 47%, or $55 million, compared to the prior year[1]. - Revenue for FY 2024 was $918.8 million, a decrease of 30% from $1.314 billion in FY 2023[7]. - Total operating expenses decreased by 32% to $118.2 million in FY 2024, down from $174.6 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 $117,218 in 2023, representing a 47% reduction[19]. - Net cash provided by operating activities decreased to $20,833 in 2024 from $261,632 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 $1,286,795 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 $15,441,000 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, an improvement from $117,286,000 in 2023[40]. Profitability Metrics - Gross profit per home sold increased by 40% to $26,700 in FY 2024, up from $19,100 in FY 2023[7]. - The contribution profit after interest per home sold was $11,500 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, 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, compared to $20,127 in 2023, showing a substantial increase[33]. - Contribution profit for the year was $53,739, a significant recovery from a loss of $14,472 in 2023[33]. - Contribution profit after interest for 2024 was $31,123, 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), 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) 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 $240.5 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 $170 million[9]. Cash and Liquidity - Cash and cash equivalents as of December 31, 2024, were $43.0 million, a decrease of 43% from $76.0 million in the prior year[7]. - Cash, cash equivalents, and restricted cash at the end of the period were $73,626, down from $79,934 at the beginning of the period[19]. - Cash payments for interest remained relatively stable at $24,464 in 2024, compared to $24,730 in 2023[19]. Other Financial Information - Interest expense for the three months ended December 31, 2024, was $4,084,000, down from $5,154,000 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 $7,915,000 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].