OPAD - Earnings call 2 2021 | Offerpad Solutions Inc.

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Operator

Good afternoon, everyone, and welcome to the Offerpad inaugural earnings call covering second quarter of 2021 financial results. My name is Hannah, and I will be the event specialist running today's event. I will now hand over to our host, James Grout, VP of Finance and Investor Relations to begin. James, please go ahead when you are ready.

James Grout

Thank you. to Second welcome Call. XXXX and afternoon, the Quarter Offerpad Earnings Good me Officer Officer, Chief Executive are Mike Founder, With Chief and and today Brian Bair; Burnett. Financial second remarks a both In hear results. brief we'll discussing moment, our quarter XXXX from

making During in statements Act XXXX. the the Reform defined Litigation forward-looking will Securities call management of today, be Private

S-X factors expectations. to and proposed the the not risks, statements as uncertain, events of events statement and new Offerpad by between described Exchange its to refer relating Forward-looking registration the or Commission as could differ business and law, Supernova Please Company a other relating result by otherwise. are inherently applicable and significantly alter to to whether company's from intend business combination required Securities Partners statements, management's future Except Supernova. the the information, with filed uncertainties update in Acquisition transaction does Offerpad U.S. or and forward-looking

profit and management call, unit will today's discussed contribution EBITDA. and well total on basis On after These contribution as per certain as refer profit interest, in exclude items a adjusted both margin, and metrics to margin our news The to of available website. Offerpad's measures. comparable non-GAAP release heading measures QX are tables non-GAAP in news under GAAP measures financial of release on financial the the Offerpad's the reconciliations results the XXXX

I'll over Brian. now call the turn to

Brian Bair

afternoon, Thanks, James, everyone. good and

discuss quarter team, Offerpad second entire first joining to us call for the thanks of behalf On results. Offerpad's our earnings financial on

with industry new day-to-day for basis. ripe out we home experiencing focus and firsthand and decades the and customer homes providing sellers tens difficulties of faced the process, residential In on that to of certainty. disruption, across founded control was XXXX, real total estate, offer a having that we set selling buyers Recognizing the buying, renovating after a in Offerpad, the on spent country, and the thousands

we offer their create all sellers a estate with center, own solutions our houses. not uncertainty their their the way. expertise, where it's competitive select fundamental avoid and Pairing home real It's can dates, customer. for about purchase technology stress home, Offerpad, advanced the real industry selling estate At the traditional and closing of receive about homes, strong

a expanded providing include These our moving sale sellers, platform we services home We services. managing of home to FLEX paying to for offer ready have the for suite while for of program. since it Offerpad the renovation through our seller's and Offerpad

customers their allows their We that This homeowners is also after liquidity that freedom provides to and buy extended to in immediate home offer an stay a closing. option remain them valued service to home. highly next

to focus continue on we center We the at do. everything putting of customers

the excited coming report for the we're record prior Adjusted quarter Turning consecutive And the XX% and EBITDA at to reporting million, grew $X.XX. earnings profit. million, all-time of XXX% XXX% share high, in now Revenue and proudly coming quarter. per to We're at $XX.X was year-over-year. in revenue up year-over-year. at $XXX quarter, up an sixth from

operational execution the that That exceptional the team key tide clearly HPA, by a price areas. climate tailwind was or quarter. was appreciation, X said, favorable Offerpad across underlying rising in an home

acquisitions of one quarter, First, history, the number X,XXX homes homes, record buying the in toughest our acquired in we in homes a for outpacing recent of home XX%. QX markets the by in

we to control. strongest in finding seen particularly This in home valuable of QX, your certainty sell the to even sellers easier team on we've markets where open how home, and customers move the has maximizing their very a their it's a decades. while can sellers with these own in challenging. our this to the showings have ability and more chaotic been one conditions, And to current XXX% the be to skip and platform to convenience given but houses feature schedule. they able market could demonstrated to next the We've home move Offerpad did attract XX% Second, was than

we Offerpad homes our interest the contribution Third, right within priced maximize We home over to where excels increase X,XXX% per is homes our X,XXX in $XX,XXX, sold industry. quarter. the And and renovations margin of an value. This conducted after was year-over-year. strategic

new X markets representing give launched markets, us of This exceeding a us plans national and to second are plans and we markets half for new Fourth, through year in total bring addition to towns. this expansions, for our open new the in the announcement market geographic XX nearly July. the the will X of footprint X to cities year, of previous with markets X,XXX

Fifth, innovating, home. quarter, savings close. our a we than together. customers services closing completed when they rewards The our QX, our XX-hour their proceeds. that of more to program their The new continued combine in great Rewards, this announcing first buy one all Bundle came Also had day, we Offerpad Offerpad they to homeowner with next

of doing way old the challenge to things. continue We

of delighted scores we sixth, XX%. satisfaction with customer customers our And

Promoter XX. Net incredibly with above Our are Score our Customers offerings. was happy

home example needed Let construction after her me buying Lisa about one home She first. through current home to set new to just give sell you on learning suburban was sell a in chose recently. served through customer we builder. Offerpad a us of Atlanta, her but

a something It you normally selling a is Thank and have process quick much in This a to wrong. Offerpad. my in is I've am turning I to so experience. was all was truly easiest for recommend go the would. Here went Offerpad. told skeptic, highly never through about everything From friends for experienced a team to by worry-free us. a something kept team. far the to here into exactly stressful Thanks and that sent again did. just the natural selling very finish, home. I ever it as I start I I home told am waiting impressed Atlanta Lisa Offerpad note that with

to very a quarter above the am our led by for With the profitable logistics, happy current announce execution, estate real Offerpad. and I environment, market operation

seasoned ensure enhanced who additional Notably, excellence are members. once Directors CEOs, former Board investors, we entrepreneurs processes company. become a current The Internally, be and we accomplished public Offerpad are record. Home tech First we and to appointed and estate. prepare will of executives traded and board based the relation leaders leaders Offerpad's strengthen to at announced publicly members independent proven plans Offerpad governance, and revolutionize as training is we with track to companies, continue investor a Corporation Board Morrison advisers. X and guide relevant They will Financial to real best-in-category These as Corporation. strategic industry on Taylor as operational They real estate experience and were selected have such realtor.com, and American

Stock XXXX. take under be to August to the Supernova stockholders would XX, transaction Supernova a expect the special Exchange with to and And The thereafter. OPAD we shortly place meeting on New of scheduled in position ticker on the is list York close

was Mike clear will picture pricing the the bigger quarter a perspective, of through take the you in details it's from But financials moment. strong. a

the on the As water unit new market to its economics. price finds acquisition will volume it appreciation, with line able favor right capture participants

markets types. constantly quarter-after-quarter in changing. are market operational are fluid, and well estate consistently we all in With successful excellence, laser-focused our Real have performed conditions all on market being

our advantage deeper into ability there We go as housing to able cost-effectively to renovate. also thanks pools to regional a we're and strategically have significant

sell. highly inventory properties desirable actively expand homes locations, able us with great in valued providing of the are to to We higher-margin

continue and strengths through environment, margin market and be the real to capitalize we to estate home product seller provide services will able pricing more listed total we on logistics. our speak to real market from Offerpad's FLEX estate real backup a normalized an when to a large Offerpad technology returns the provide our listing immediate estate home renovate in opportunity. believe So where offer we sellers to the our cash The and still offer to

disruptive houses, closing it game of their friction to trying that Offerpad home sell. We home their certainty of the to of remaining and trying if control. home, gives points their with remove new them hosting fix Our their and and when will have the to overall, open the sellers uncertain way closing to home time that old and in the up changing. condition, showings their services sell list-ready face. They in get are

buying tipping towards early Given at the our we and traditional the market customers better we're flexibility the selling, new and of believe the difficulty home and of model. resources stages the offer and we

and excited ahead opportunity us, tremendous We the sellers of and more buyers opt about more and are digital-first experience. our for

to call And CFO, Burnett. over turn our the I'll Mike now Mike?

Michael Burnett

Brian. Thanks,

Offerpad I'm strong quarter, had happy discuss this a to afternoon and second to with our you be results.

forward. First, we strategic I'll drivers our to will our going growth continue discuss that fuel expect key

third from review And Second, quarter share around the the in our of year-over-year to onset protect from both I'll thoughts the some rest measures and took Offerpad year sequential some ago results company fiscal of XXXX. QX, generally quarter, the finally, proactively pandemic. comparisons, I'll during and that recognizing the highlights the providing

our get strategic Let's into right drivers. growth

nearly $X U.S. trillion the market opportunity. residential estate is real First

Second, favor there convenience, digitization aligned. consumer personalization to which are well changes Offerpad's business ease, is that patterns in buying and

Third which the at residential second that strength homes. title for iBuyer term. consumer inventory and anticipated consumers for believe further factors drive to served long for and growth Offerpad's services. serve we're quarter, transact services incremental freedom escrow renovations. well expected we historical and pace of which the movement during need housing with And changes insurance, to the and property are innovations, such due mobility finally, accelerate the to to plays the the Fourth, as seeing surrounding customers are quality us opportunity and mortgage, Those will ownership, into Offerpad

housing demand was the acquired the our Turning throughout quarter. Though highlights supply for of exceeded in ahead X,XXX to quarter, plan. inventory for homes internal which Offerpad QX,

of quarter than homes. fourfold XX% increase reference, we the nearly acquired XXX from increase from this this QX second more year's prior a For year is and when a

the temporarily our onset last year, reduced the we pandemic inventory. of During

and end that X,XXX of reversed QX. now the homes have over of inventory We as have in

approach competencies It's we're new ready broadly to real address services legacy and ancillary acquire our Offerpad. the estate ability our homes, The are multiple confident in core and to of agile, create customers exciting market fronts. on and market delighted leave clear

QX revenue homes In the The match sold operational of of our point XXXX overall and basis profit up conditions. a with year-over-year the generated were the $XXX right a favorable million, market to $XX.X driven was ability from operational excellence, excellence was our results Gross of million XXXX, point first by quarter, This right second XXX and second combine revenue. X,XXX XXX the a XX%. we was from of the $XXX basis in continue representing to homes of as a which quarter, the increase improvement or Offerpad current quarter increase and the customers favorable XX.X% conditions. to record market in from million QX

in of quarter XXXX. highly second we amount we spent increased second constricted Additionally, advertising the from the investment during the quarter, our significantly in

qualified traffic the XX% in our is increase than the investment QX. successful Our a half helped site during more and more to for advertising up a second represented quarter drive us from This setting of year. also

with to We continue prudent structure demonstrate support cost growth strong to our investments our initiatives. discipline making while

Moving some additional metrics. on financial to

positive reported million quarterly share quarter the Offerpad Fully net net to income of was diluted first-ever in of QX of per per compared million of $X.X for its XXXX. quarter the a second $X.XX in of share loss versus $X.X EPS XXXX. loss $X.XX a

million Our adjusted million in basis. quarter equates was nearly quarter XXXX. a million on in EBITDA marks of positive XX-month consecutive EBITDA trailing $XX.X a of compared to negative This $XX adjusted EBITDA of QX our the adjusted third $X.X and a to record

unit to economics. Turning

$XX,XXX were of model long-term $XX,XXX, to appreciation this normalize. appreciation normalizing this the market still unit to resilient. we came forward Offerpad's QX price the business when pandemic, year, per be flexible do same in boosted Our price business XX% dynamics the be the a expect our quarter the said, from pace after realistic Though despite year margin of year-over-year price built the home That appreciation and both rapid against year, plan. about positive do economics. to record And than from able looking we home headwind remain maintain view we at in as worst of prior a not to contribution rising by is material economics home increased from were interest and unit more we $X,XXX

execute during head entered the From plan $XX we the favorable conditions the working quarter, Supernova. credit business with as agreement corporate closing the current structure anticipated second of capital a and market to standpoint, we the merger million for a capital towards in continue general purposes into to

and financing growth. successfully upsized attractive credit facilities credit million secured we of July, to to are $XXX future in our $XXX opportunities of Additionally, continue capacity from to additional one support pursuing million our for

regarding Looking quarter, following ahead we providing to the are the financial third outlook QX.

incremental million, $XXX loss be in expecting QX, million an company invest XXX% marketing, representing year-over-year. adjusted million. $XXX For a second EBITDA costs, of costs. anticipate of million of start-up engineering new expected new incurring third and revenue be the a is between to of market $XX in are in range to to And we'll the increase We $X.X this and our year. we loss teams continue to half about of And public quarter product

range XXXX Finally, X,XXX million the and and the EBITDA year-over-year for million. for turning between a at year-over-year year midpoint of $XX of to increase anticipates increase year the a expected the outlook increase at range. of of to $XXX at the And of range. XX% Full guiding adjusted nearly range. for full of an the Offerpad year-over-year midpoint loss full $XXX midpoint between to $X.X be be the is to of projected million XXXX. XX% to our homes million, between XXX% an Gross in X,XXX a of the profit and selling revenue loss billion be is we're $X.XX billion, year, $X

With call Bair. that, I'll to CEO Brian? Brian Founder, our now turn and back over the

Brian Bair

Thanks, Mike.

incremental we're into to and expensive see future. past from are selling to the buying are as and age from cars the efficient and selling summary, the steps. while as trust online transformation buying warranties. transportation creates chaotic the beyond for home Digitization led the in as straight taking taxis we to and We that ease just first massive such a and financing home platform and ushering a In Carvana and consumer transformation selling above of into controlled, and Uber buying digital an reimagined from services from crafting

Next the home. build their innovation their additional asset, to and ease offerings a ecosystem of that tech and and increase are value the and services the to comprehensive personalization new customer optimizes benefit of #X experience

business and huge At disruptive Offerpad, we're a with our in model. relevant market company growing a

of with We vision our the real in estate a cycle. have to company and team, proud superior in and every as real estate operate We're capital-efficient technology strong backgrounds, experienced skills our industry. most

thank nearly our technology, team possible these like over years be the members XXX innovative past In None their closing, to and and country. X game-changing to our ultimately, the their Offerpad many I'd of Offerpad's dedication would successes services, without mission. teamwork across

Thank for all being us you with today.

investors. launching we public. And prior your and soon to hearing as appreciative earnings are call are the on you look dialogue calls. forward future updates share very public being are much business a you that We We in we fact to X-way call. took to we to conveys time a conducting the being with placing listen very forward priority trust to as and insights to communication and this are We questions our able candor with more we look

you. Thank

Operator

and Thank This you disconnect. for QX Offerpad's Call. XXXX joining call, now Earnings today's concludes you FY may

Offerpad Solutions (OPAD) 16 Aug 212021 Q2 Earnings call transcript