iBuyer expects to sell 750 to 850 homes in the first quarter of 2024, generate revenue of $245 million to $285 million, and achieve positive adjusted earnings later this year.
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Shares of iBuyer Offerpad rose in after-hours trading Monday after the company said it expects to return to profitability this year as home inventory turns over faster and its agent partnership program expands.
Although Quote board has been published The fourth-quarter loss was $15.4 million, down 23% from the third quarter and down 87% from the same period last year, when Offerpad lost $121.1 million. This year, Offerpad’s net loss for 2023 totaled $117.2 million, down from $148.6 million in 2022.
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“We successfully navigated 2023 with operational excellence,” Offerpad Chairman and CEO Brian Bair said in a statement. “During the year, we took decisive action to streamline our business and reduce costs to prepare for 2024.” and prepare for future revenue growth and profitability improvement.”
Offerpad said it expects to achieve positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) this year, but expects an adjusted EBITDA loss of $2.5 million to $10 million in the first quarter.
Offerpad Home Sales Outpace Acquisitions in Q4 2023
Source: Offerpad Investor Disclosure.
While fourth-quarter revenue grew only modestly, up 3% from the third quarter to $240.5 million, Offerpad sold more homes (712) than it bought (678) — versus the third quarter. The situation was reversed in the third quarter, with 227 more homes purchased by iBuyer (930) sold (703) than in the third quarter.
Offerpad said it expects to sell 750 to 850 homes and generate $245 million to $285 million in revenue in the first quarter of this year.
In the last three months of 2023, homes in Offerpad’s inventory took an average of 97 days to convert into cash, down from 142 days a year ago. Only 4.4% of Offerpad’s 940 homes had been in inventory for more than 180 days at the end of the year, down from 35% at the end of 2022, and nearly half were under contract.
Offerpad’s “asset-light” extensions, including renovation services and real estate agency partnerships, accounted for 43% of transaction volume in 2023, up from 24% the previous year.Last month, Offerpad announced the expansion of its agency partner program, adding two new levelsOfferpad PRO and Offerpad MAX.
“Through 2024, our team will focus on growing our asset-light business, including expanding our partner program, and evolving our marketing strategies to maximize returns and capitalize on market opportunities,” Bell said in the statement. shareholder letter. “All of this builds on our foundational product and cash offer, which will continue to fuel our growth and expansion.”
Offerpad shares have traded as low as $6 and as high as $15.19 over the past 12 months. The closing price was $9.10 The company rose 3% in after-hours trading ahead of the earnings report.
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