Offerpad Solutions Inc (OPAD, Financial), a leading tech-enabled platform for residential real estate, released its financial results for the third quarter of 2023 on November 1, 2023. The company reported a revenue of $234.2 million, up 2% from the previous quarter and in line with guidance. Despite a challenging macro environment, Offerpad met both top and bottom-line expectations.
Financial Highlights
Offerpad acquired 930 homes in Q3 2023, an 11% increase from the 840 homes acquired in Q2 2023. The number of homes sold also increased by 8% quarter over quarter, from 650 in Q2 2023 to 703 in Q3 2023.
The company's gross profit for Q3 2023 was $24 million, up 8% from $22.2 million in Q2 2023. However, the net loss improved by 11% quarter over quarter, from $22.3 million in Q2 2023 to $20 million in Q3 2023. The Adjusted EBITDA also improved by 23%, from $17.3 million in Q2 2023 to $13.3 million in Q3 2023.
Company Outlook
For the fourth quarter of 2023, Offerpad expects to sell between 700 to 800 homes and generate revenue between $230 million to $270 million. The company also anticipates an Adjusted EBITDA between $10 million loss to break-even.
Management Commentary
Offerpad's chairman and CEO, Brian Bair, expressed satisfaction with the company's performance.
We are pleased that we met both top and bottom-line expectations in the third quarter, despite a continued difficult macro environment. We are particularly proud of our expanding contribution margin," said Bair. "We have proven we can perform in a difficult market, and we have exciting opportunities ahead of us. We are well positioned for further solid performance in 2024 as we take the friction out of real estate."
Jawad Ahsan, Offerpad’s chief financial officer, also shared his optimism about the company's path to profitability.
We have further refined our path to sustainable Adjusted EBITDA profitability in 2024 and beyond, while optimizing three key priorities. These include ensuring the business is on a path to become profitable and self-sustaining; future proofing to mitigate against macro volatility; and, better aligning our marketing strategy with our customer behavior. I look forward to sharing our progress over the coming quarters."
For more detailed information, investors can access the company's Quarterly Letter to Shareholders on the Offerpad investor relations website.
Explore the complete 8-K earnings release (here) from Offerpad Solutions Inc for further details.
