Earnings call transcript Q4 2022

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Operator

Good afternoon. Thank you for attending today's Offerpad Fourth Quarter 2022 Earnings Call. My name is Hannah, and I will be your moderator for today's call. [Operator Instructions]

I'll now turn the call over to Stefanie Layton, Vice President of Investor Relations and ESG at Offerpad. Stefanie?

Stefanie Layton

afternoon, year to XXXX good quarter Solutions' and full and earnings you, everyone. Offerpad Welcome fourth Thank call.

today. are Our Brian Chairman with Burnett, Bair; Officer, me here and Chief and Financial Officer, Chief Executive Mike

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

our Commission. required to as Exchange and the and law, uncertainties other applicable relating to inherently update Forward-looking differ not from alter does and risks, statements future a whether uncertain, Offerpad are Securities US information, the management's Except or the significantly business filings by described to in company's could or new events expectations. with Please refer result intend otherwise. of events forward-looking as statements, factors

certain certain the metrics available comparable measures. to fourth year XXXX to financial On The GAAP earnings non-GAAP financial financial items and tables measures full are of in under release today's of on exclude call, website. heading earnings Offerpad's non-GAAP reconciliation the release measures our measures. These will non-GAAP discussed quarter the management Offerpad's on the refer

call to turn the over now Brian. I'll

Brian Bair

Thanks, you today. joining Stefanie. Hi everyone, appreciate us

the and our I'll quarter our XXXX the to halves in XXXX. with share company in Still, conditions trends XXXX difference market had market and year. was of cover Mike we the expectations. from will first financial tale highlights, some strategy. Last quarter of two operational updates, our some second results remarkable year a first fourth truly the accomplishments half striking

projects, buying Partnership FLEX increased XX% cash request by asset-light homes transactions, and year X,XXX in year-over-year. in history, for mortgages our the the our including year, offer renovation time Last Offerpad's Agent year-over-year sold listing, XX% Program over first completed and from the by XX,XXX we increased

affordability with the us historic significant and the in quarter. rate left two challenges fourth decline in interest increases However,

made market sheet. to significant inventory happy to selling was prior our we balance securing report acquired both. I'm to capital was strengthen shift; the progress second, on First additional

We process X,XXX our us of end legacy acquired inventory our market. homes prior disposition of inventory March of the X acquired our the near of homes less the year remaining sell nearly to in through first and XXX a to the inventory reduced legacy puts September target majority peak brings completion strong the half of on to have than This the during from a vast XX, active position of us by XXXX. date

of addition, the rapid market. believe more expectation that homes results In data returns. acquired of are in provided I Early have these homes forward. recording amount rates, normalized for XXXX, don't any from could have returns climate a our experience, X, but mortgage in with we consistent after can navigating use positive the going earnings technology September valuable or sold rise are predicted

increased quarter, the underwriting For and with fourth return price builds homes adapt. as new last example, factors to in risk reductions the our purchased reflects late we and outlining where The we on been year updated more spreads adjusted premium have proximity homes positive adjustments, performance to assumptions significant. for purchased like areas continuously

of Sella, Roberto X, Financial, investors, early and recent First an from investors. Offerpad million through member placement. we American an received investors receipt participation private on existing February Second, a announced including new and additional Board We $XX more

ability mere is company macro today's the in investment personal notable. my by to challenging as in raise increased environment capital participating I well. The

and by shareholders. ability strategy for current confidence shareholders participation our customers drive our in to addition, In long-term continued value our demonstrates and

opportunities are largely near. behind are two ready is these capitalize and forward to challenges The us, good news we move on opportunities. With future the

real estate improving signs see We are and to of stabilizing conditions. market starting

basis. a review internal on our we to data, a data, including available sentiment significant amount addition weekly In of publicly

categories. major weeks, four past all improved data in the For our internal has

condition Most number example, of no now and or our their homes have experts market showing increasing. market not the priced pending competing instead to been are For a of improving new depreciation as are homes well with Many in in as our accurately labeling steadily offers activity positive citing active that decrease been directly ratio the as solid. has shift decreasing market stable of to builds. of experts are with

While Notably, single-family more price Orlando still and and in rising. a Raleigh, declining town Colombia, concessions homes are slowing, affordability. Columbus, including due seeing homes prices, attracting are markets are and Atlanta, Phoenix. are interest stocks indicating than markets Charlotte There condos Dallas, likely to few currently

have best it indicated is homes Overall, Dallas unclear. more below and that durability are market still have Denver this velocity. we improvement Also, priced shown our although considerable sentiment. and hearing is early the trend optimism a markets of overall experts, of from $XXX,XXX number in

Before what's I new I plan, XXXX our what's talk to review about with want not.

Things to All have for vision Our a platform provide Home comprehensive not changed.

We from have iBuyer. beginning, than are said an the just we more

one-stop a estate can people address real center, all solution their of Our needs. mission to where be is

continue the platform. only achieve renovate of entirety the sell, to providing the experience finance we grow home, a customers. is can goal simplifying ability the for way company We best one our that to value transaction homeownership By source customer-centric and believe and continue of of buy, the to to our our increase our to

on In changing evolving remain offer, grow footprint cash customer with long-term retain to with Our listing service mortgage but strategy conditions ultimate our business, shifting means this keep vision to goal pace we our foundational unchanged, we our constantly and needs. XXXX, and response grow buying and home, removes friction are plan build current finish, offerings, to and an focus customers to home, partnerships free a assisting expand move and homeownership local increased a start to new and selling providing Offerpad experience. to purchase the their asset-light a our business-to-business financing allowing seamlessly from penetration market and our services,

health customer customer It per costs. our of reduce increasing by number the our also financial improves and acquisition transactions

and want. listing business provides are foundation, and customers offers, is While it the offers of that our service cash mortgage cornerstone of combination simplicity the cash a our truly control

to expertise and funnel, differentiate capital approach goals. value estate each engagement enhance our sophisticated our will real and financial Our support focus department, our center solution increasing model. customer proposition access customer on our XXXX, we In with renovation to

to growth Mike XXXX, on acquisition regarding our real response In to penetration more market broader the focus size efforts we details cost increasing markets. reduced our and reduction volume accelerate to Turning in the slowdown, more expect our pace In our estate our we and a with team. affordable strategy. of the rightsizing. provide of will acquisition

we reset, not the acquiring homes at in this of be part As time. California will

limited our established and in engagement be focus to Our renovation on will markets. more and resources affordable us to California allow projects

on homes targeting the near We median. price at will basis, look a to build our points volume market-by-market acquisition

businesses. of services. Finally, be pillar In XXXX will XXXX, our services business-to-business our we our a strategy developing to key other partnerships renovation December and expanded

companies Now more department to homes Offerpad's can update to portfolio homeowners renovation of their for rent and utilize sell. or

service our and We This as under business asset-light logistics, have already operation projects service XXX a our skill-sets. renovations over model. leverages existing completed

We are relationship buyers. our expanding also with other home

Our cash other rental homes matching new purchase homeowner, Direct and to allows directly sellers. seamlessly the buyers program Plus cash from companies with single-family buyers

We fee program the reach markets. to another while ability outside to revenue expect presents homes allow this itself more service for customers. more the at sell homeowners even help stream, asset-light this program The our expand existing Offerpad can program our will

business. I of year into will an be exciting expect as dive we the XXXX our next evolution

guiding a the cycle what attain foundation that manner technology with real our given, striving That and scale. estate expertise and transition, market innovation propel our of stays heart are, we fast commit vision how are matter look we and to building execution our innovative means to our in we moving our goals best-in-class and building sustainable will No for strengths who forward. to in or forward change principles. of are upon us to profitability, mission, we the growth we true While balancing to operational our

to I'll turn the now call over Mike.

Michael Burnett

Brian. Thanks,

all residential Last that talked continuation conditions estate our familiar by we real and a now are challenging expectations about for these too with in quarter, the of environment near-term. the we

a to returns. inventory out that positive ensure sale, which accepting included: these trade-off our that of two, We focus and the be produce we side dealing knowing acquisition the between optimize do that business with homes price we'd on down challenges, laid also approach operational the heightened time and slowing acquire our one, to to losses; legacy to

quarter we executed successfully have this plan. the against into fourth quarter, and the first Throughout

last we contract. X,XXX sold to have nearly inventory by peak and at or quarter, we current consistent our of in As those our reduced Brian our be this acquired sold of homes cohort noted, homes have where under of a from we contract prior from largely outlook to to of quarter. homes expect first the February, the September this than position under X% to remaining less have put end or with With progress

In homes acquired overall X,XXX very dislocation. approximately this ensuring conservative be acquisition and trading-off homes the and short-term, in acquisition quarter returns volume for of right are side, in to We have generate our we inventory during that and On XXX disciplined the market are period price the pace. our homes reduced acquiring our count to at we year-end. continue to fourth at have in we underwriting positive the over

market with The homes during and to on normalized we to acquired plan is strategy rebuilding Executing to capitalize enabling conditions reengaging against a climate sold path our and have market, for us validating we positioning navigate more into returns in and challenging further this profitability. stable more the expectations produced approach. have is our after growing line August that us our our

of top-end Turning QX to We generated the $XXX guidance exceeding fourth of the revenue, our quarter results. range. million

average of supported $XXX,XXX. of exceeded was revenue by homes, an which of at top-end the price X,XXX the sale selling also our range guidance Our

was a adjusted amount million. inventory $XX Our quarter impairment This EBITDA million the for $XXX.X includes negative charge.

range. adjusted further or our would September cohort at The as of the the charge to based $XX.X acquired current before below the EBITDA for listing quarter original for that guidance been market offers threshold made market million homes and and this charge, a conditions price or access have on within time-frame we the impairment reasonable reduce location. the decision affected outlook particular strategic our Absent prices

Austin X.X% quarters past has to in August reduction degree. the value. be than over at affected amounted Phoenix, charge continue Denver cumulative inventory greatest the a and less the to The three

use a bulk We the of sales inventory market-by-market continue to price a work basis. combination on strategic to and through adjustments

addressing three make quarter, completed covering the progress sale the XXX continue bulk over and portfolio. homes just to good aggregate we transactions of During fourth an

As days, with period cash with disruption holding our to the goal expected XXX along increased market time in our extreme our over past XXX normal six quarter in pace, days the above lower market. the and a acquisition well consistent for to months, of

expect year. decline back in the in QX peak of levels to half this second then normalized to We and the to

workforce overall side Since August by annual in our slowdown million. headcount savings last resulting cost the including the in in total commensurate with recent we of approximately aggregate volumes. in reduction the action have the approximately in our a combined taken XX%, peak of have $XX On February, year, business, we our reduced a

and in operating are With efficiently execute we the now expectations against for XXXX, line right-sized with and our business our positioned effectively more to plan.

the reduced in a of the From decreased sheet nearly by inventory balance quarter, $XXX balance as billion we year-end. primarily our our balance through perspective, to million $X.X debt at homes sale

balance driven Our unrestricted well debt as quarter million, $XX was the as the by reductions. in cash net net loss

as this continue a prepaid from and capitalize to private more included not successfully will stock. convertible as early the continued raise well. us. but ahead begin $XX existing execute the capital of Importantly, month, are past to which common we we support This the rebuild warrants, to completed only new and This reflects opportunities on investors in investors, our of capital position also recent placement strategy company our the investors million

low-point and the a towards the stabilizing of will sequential we QX results line expect period, reflect our move market, we bottom transition will As improvement. QX represent

XXXX, Specifically, and between X,XXX revenue we million first of generating in to X,XXX million. between quarter the of homes, expect $XXX and sell $XXX

decrease to EBITDA improvement during XXXX. sequential step-back quarter negative of range the in million, $XX be represents revenue XXXX toward EBITDA the and The top acquired reflects first a million adjusted negative lower the which half expect and homes sequential achieving significant between also adjusted of latter purposeful for the line first again. We $XX positive

other the we expected in to also is quarter, we and made and in fourth adjusted and by reductions have the EBITDA half structure pace XXX acquired will costs. right-size to quarter appropriately we year. leverage these changes to the growth. reduce anticipate the before our into second lower second addition organization our acquisition the volume supported cost the of the company In The in We mentioned second cuts previously half in spending position the again our expect to homes, improvement into QX have increasing acquisition

on the legacy continuous reported positive Our that QX we the during support to along cost with completion income, capital, in sequential purchased the performance of represented quarter, results of fourth focus all point of bottom the disposition inventory, low incremental beginning our management, XXXX. homes the expect nearing the expectations and infusion line of QX net our see our improvements of

upon With building and response management, services, of each customer. solution a us its our capitalize new cost the moves and opportunities. to responsible Offerpad measured new and in simplified approach has our service to strategy on foundational to needs offers that introducing unique execute holistic The the services listing growth meets on cash of of ability and our to adapt true that closer conditions vision combination can a asset-light changing demonstrated

the to operator I'll the now question-and-answer session. turn the over to call begin

Operator

line with of Lee [Operator the Instructions] Dae is first from The JPMorgan. question

You may proceed.

Dae Lee

the question. for Great, thanks taking

given towards offer then First long-term adjusted expect as of EBITDA to one, of secondly, prepared year again? And your we mix policy to potential the Mike, be greater the hear you revenue progress to and this remarks. expect your how and in think curious do business the the to cash the FLI see on you Brian, change think able when How I'm push over-time? we profitable your do to alluded you stream, model should EBITDA about through I

Brian Bair

Yes.

looked the looked of about always this iBuyer, solution do what we've a we've for center, to customer. the talked at transactions an the as cash, We've far As we're lot as be offers. cash for is that's that is never we a core specifically going at

will are more a as have roll-out continue so we asset-light, on the we products to And offer. more that still focus cash

be cash Plus will Now look do. potentially, core things some do, cash but we what we at the be of that we Direct of will that mean offers our that as doesn't other and

Michael Burnett

little the You up repeat can broke to Dave, I there ask question? me. you for a bit

Dae Lee

Yes.

should Sorry, your to move expect be we remarks, we EBITDA prepared in EBITDA Mike, progress how but I adjusted when and think this as you year the you alluded to to adjusted expect through in. profitable do

Michael Burnett

I volatility way successfully first think of but quarter. et of rates, will it backdrop, largely got we've obviously, piece in is legacy see of What Yeah. the through cetera, get of lot we interest and the the terms by today the a inventory the end we the

we where year. the I EBITDA trough think So our for from certainly an that's see standpoint

latter And then we'll see three some gradual build quarters. into the

see we've I two we much see we'll half. think the to how moderate we quarter acquisition in some slowed second going get again think down the from pace, to I can improvement because one growth quarter where and engine then restart into, rebuild we'll

point. really won't at get a we positive I timeline to on back put So this when EBITDA

in I the and shake-out need we think in But on the how still ability reengage really of terms we markets. to good improvement of are we to side. acquisition signs seeing our see stability

consistently to it's think shown I do so just able we've And that under been various conditions. we've of matter the really in time. that a Obviously, past

time-frame. of I'm get that we'll there. matter a confident the just It's So

Dae Lee

you. Got it. Thank

Operator

Lee. Jones Securities. is Please the Thank Mr. Nick proceed. with from next question JMP of you, line The

Nick Jones

taking for thanks questions. Great, the

algorithm how On expect? feel way the with of the of to kind more patterns you in sounds prepared performing stabilization volatility deal clearing just are of volatile is like do first one is market kind interest the the that and or maybe you're interest has you're rates? homes you to buying of different structurally rates? kind fees how adjusted just ongoing or now you're It really in So charging manage - your kind

Brian Bair

great homes. it we can always can know, have we markets question. more you consistent the market The the when were underwrite great, we consistently Yes, helps, that

we key do. the and that what that's far know, algorithm that's that, as we always But everything we so as helps. how And underwrite you always to that

median and we're And that home own derisking build example, more scoring. that's to through home so we're as for important. homes like, now make risk, really segmentation you're on we affordability is right time can focused and of for buying, cash, we're we property ourselves buying, price going the adjustments to Where look homes how the in long from to the more type

So all underwriting into risk still underwriting key is of are of now, seeing but so we right that a lot are Mike said. as to homes, we the

We risks that are all we're underwriting these it seeing some new with conditions. that question the build in markets stability of are rates all seeing the in what going consistency all of starts to mark homes under we're But markets, lot the and still those we in and markets, big because general, these a but strong in underwriting are that. and we more stops interest seeing now there's with more of do, - definitely affordability performance in and

Nick Jones

of and kind repair type kind to it's as services, back some on the its about up great you Thank of into of buying as the that potentially guess, think that size high the BXB we know, high structure? spread cost should on then you ramp does buying, overall Right, things thin how leave you. and of you as follow I business impact you particularly want is, and offer services stabilize? a too right you kind

Brian Bair

the one great. machine call six built of from have from last renovation, we over that's strong the, a to volume that's do customer that's a experience, board. and really for Yes, center, the years, really transaction across Yes

ourselves, And well. into we lot to built opening market that we other a grow that do can like so that as to business-to-business outsource do as volume variable just costs, of into we're with companies, a

with did have of and internal there. that so over ready just able like to and great a Offerpad speaks the itself XX,XXX built have here the for do lot in that we side for year so, teams we renovation renovations performance, we last we on And built the machine that especially we've that and our and mentioned, is

Operator

Thank Mr. Jones. you,

Next Ryan Stifel. line question with is Please from proceed. the Tomasello of

Ryan Tomasello

Hi taking everyone, thanks for the questions.

expense over streams, next heading wanted current you at like the properly, least business on properly you define called fee run expense talk first, could is asset however piece volume near a could light touch incorporates that you if to structure, and you the following rate feel aligned headcount reduction, about this it? forward where prefer if out And Just go company model has into to presumably pace, with the OpEx these here, lower term. helpful Mike quarter, the be

Michael Burnett

a reductions where through do point the gone for we're unfortunately three like past the months, the going have, few we're we've business quarters few we the we where getting - Ryan couple force to right really or two over where over Yes feel at, in and here. sized next

You on with the components end of the structured the both even from light as and well. office the think of asset a addition I some back business, headcount we're the appropriately of know, now front

think it's is as percent a a rate So landed terms your we've going much good place to OpEx, forward of so revenue, really, on of I be in in there, the run goes. of it based buying of part slower in definitely on ramping where see, the of impact of the year. we're to think top businesses and other the the first again, And going I going the up the line

I'm give hesitant here. to number So a of kind you

I benefiting QX $XX of of, and We of know, that so at a February, But annual impact. line QX the can't that, we've you quarter, component that clip is think, reasonable it's about certainly headcount you reductions, savings million assume. of a to terms in $XX mentioned last million, straight but QX, exactly the did in annualized of the

Ryan Tomasello

sounds will capital done Got on the Since it that. piece the on it raise congrats of to thanks you then, cash be getting platform. February. that the core product know, like continue offer for in the And a similarly position,

your about footing puts you feel business capital if current If the here? position, you like million good a with the talk comfort you to scale the level, on $XX can from raise, just

Michael Burnett

into the offerings. acquisitions we reductions taken Yes asset have built we've Obviously, business have in a the with lenders home And underwriting, from continue company. of - light more good conservative Ryan, they with right relationships to are cost support them, capital. work to with business our supports current through the debt steps the and and in slowdown the we continue plan more our level expansion that our the standpoint,

so capital not had good across got all appropriate we've process. we've the fronts unused that excess capital of and We're that's inefficient so, And the success amount an business there in that there. of rightsizing

and So, we're can where given from comfortable current with I we're think where conditions, we the today, at. see

Ryan Tomasello

questions. taking for thanks Great. the

Operator

Thank you, line from question the Goldman proceed. Tomasello. is Mr. Ng The with of Please Sachs. next Michael

Mike Ng

Hi, good afternoon. Thank you for the question.

to ask margin detail if that's, able have wanted after to as wondering was expected you homes know, measured of that about that there, be I by were First, expected. more percentage? quarter or little August just the might per I produced you said profit you give whether acquired returns a us adjusted bit just home gross that contribution,

in And geographies what to are about Thank around detail relative would incremental I or September? biggest process California, you then similarly, the be prior talked so helpful? know to strategy purchase you. today changes any changing underwriting

Michael Burnett

Generally, to I'll levels, with at terms margin first spoken after interest. of always question. we're we've your start Michael, contribution economics in normalized Sure, unit kind of when the looking profitability

has range range X% X% there. been always Our of to a

range. that's and you'll And bottom we of the see we're that moving period, generally things. And a online more course, as stabilized a coming at so start of into see back where

that, hopefully seeing. maintain within And to that to then what be we're able but so continue far that's

Brian Bair

underwriting, know, the of couple most you as assumptions, more areas. we're and Yes, than as been then a areas far and Outline just affected I'll examples. you right as give most, now, again have

market. So were do the you a decelerating do just an to it next as cautious your to outline market underwriting, accelerating areas But builders. being home like to

as You and those risks, a there can homes. of there well, still supply underwrite is issue

homes. there, is still supply issues a but Affordability still of there's

the the other markets on that for median well. underwrite we're when it build to like the more help something in on buyer and don't we once in there it, home, sell contributions underwriting assumptions the sell as costs that focused to you that that, some go home acquire on closing home that, but home to when have and uptick, that's definitely more price, to we the allowing for we're time so, And then

derisk And there lot really can median so, lot it levers that the the more people the really different there's that boxes, we it. afford the more a of affordable home, buy of price, a to and pull home just the is

we're home that, $XXX,XXX affordability. that, to you And hyper we're now that $XXX,XXX because as third so now, really, right as of not focused know, the that on focused home, second inventory right just the tier on

Mike Ng

Thanks Brian.

Brian Bair

other we The point that remember what one said were were that - talk is that when in I'll home, we're there's time very thing highlight just doing equity seeing more have other consistency that, reductions they about yes the talked, you on in so last the that much we inconsistent. the market, they homeowners if price their

before, what last with inconsistent much had, also well, those, I reductions. so homeowners forever from massive equity I there's and were price as said think you They that know, can't we've those seen because

not reductions as so price And inventory, we're or up year the we're prices, were and were free you seeing looking as last seeing is there at early mass know, liquidity. are we people reducing more their on to consistent people seeing trying

Mike Ng

Excellent. Thank it. Mike results and appreciate for you Brian, the

Brian Bair

Great, thanks.

Operator

Mr. from next Jay Please proceed. is The line question Thank with McCanless you, of Wedbush. Ng. the

Jay McCanless

upcoming it shareholder shares Class the after converted Good afternoon. would about February Class A was disclosure, I the ask wanted that the X-K, X, first shares I meeting. to B think be to

Can well and timing it? some you that as behind of disclosure, as the talk the reasons about

Brian Bair

have don't vote investors you I high several like public what months Yes, of the over the like last on don't as know, a and learned those company, mature being things. as is, we

get what's know, so company going important I we more, change mature strongly feel is, thing the as something why to that's And saw a for know, forward? and there. as so, the best we the more, And that's that guess, we've you been me you that's it's, you is, -- company,

Jay McCanless

we but Okay, lot thank are for, to not you. this in expect not think, that And we current supply but well. that number what median quarter? tight, be the homes Is XQ? lower markets where is something than be settlement, of a seems lot something acquired new achievable a I only with to as Buy in consumers I Offerpad's the be the guess, this is the saw of or I XXX in Box, you still pretty price guess, flipped, looking environment shouldn't

Brian Bair

you is that you that at the cash know, convenience though there's is, deal believe that seen same have is the level, same through offer, the to we've control having that variable We the and important it several with we our to of more rates years sellers buyers - and last and finance financing with know, really and that the was thing things. some the over even not going different and

it's as we're to And we've just know to so so we now us We're more has to at sellers around sure that that's been has their been how which first more But continue something cautious it. and about see looking making talked great. there. what before, us coming you sell right home of we're buying,

Jay McCanless

mid-XXXs the guess the other that number fall reasonable that the as to I question assume a just on Buy sort ASP, had, then Box is And of going I progresses? this is to year

Brian Bair

good now you'll But go we that. to pretty bit normalize bit a the I a you seeing as month continue as we're around what market probably place that's see see underneath a that think think I and by to is little more little Yes, month be there. activity here,

by decent bit recently code. little be place our So But that. been zip right more more a the that's has I below to think activity of enlarge, a it's

Jay McCanless

thanks my Okay, questions. to

Brian Bair

Thank you.

Operator

Ryan with Thank question the next proceed. Please a you, is Mr. Tomasello follow-up of from The Stifel. question line McCanless.

Ryan Tomasello

follow the for taking thanks Yes, up.

you XX you just homes are that guess I that the million your respect said within a impairment, million. comments have more left homes. I assume guess XXX must the August, the to books million, to together on probably just that value, XXX carrying the size your the Just those sub more from tie homes with to $XX given have with the have and recent I than trying about XXX homes target economics, related And the pre-September

any the quarter you impairment the drivers took would be just this So on what color helpful? were

Michael Burnett

the that we of think couple got is sort is out I to One a real XXX Ryan, marker. time things Yes, a more of there.

- cohort, had you The here everything that number been February that the the So not in on books XX/XX. sold attain that's now, to have around service we the that know, legacy under contract. not in is as of or

So that we at homes still on were cohort a much that end. larger over XXXX year had there number books the in

difference So that's the there.

I little hopefully. bit, amount that's a think huge up

Ryan Tomasello

it. I'll Okay, BXB And Yes, that's just here, more partnerships. got in one with the respect helpful. then to sneak

you any business, of that is, the can any parameters any platform, sooner, that color number that know, color have you to around scaling more markets on opportunity, the scaling you around, plugged that And Specifically platform? targeting into prone institutional you for plans if scaling plus for think that direct how provide platform. an that specific buyers currently of meaningful are

Brian Bair

actually excited direct really about I'm plus.

reminder, is bid we that site as have something as it under investors we that we've Just contract, -- a the a began we on had can put since a can go once and before market. to house direct they will we hits home,

other direct. direct direct So giving between that's top direct network plus of funnel is The access. and investors plus is been difference

customer what as everybody is every exchange win about a that on far do so. a their own that option So like the them, the an what to involved, home. to is time it's that, we And we win, solution they're be win, is able to same bid and that, home center I it's want for have on to really as can their for bid

it for funnel balance the And they same that of and that can closed, well that potentially, customer putting time. offer same where on with the close they'll it can, secondarily at works they it the us time customer. then us to as the the So customer moving of the our they'll close the get wants on sheet, bid is them home instead top that

plus, have had a to So we've direct time difference that's long, this that access. the for that of investors long wanted kind have

right to -- to who so then we And we exact plus sure as it we lot selective want you -- have and Offerpad, the We're we of get in a there. experience interest want, a about being we the we're right that closes, the the we same filters, have definitely partners allow just there. excited, customer lot it's have want with we of the but direct in have make they know as very also

So from buying other people it. a SFR world And investors can maybe short on fix and they flip you of but different well. side of end of on on not homes types that just term as there that, know, interest the are the access lot to that that from

that appetite as services, top people which lot a very a of -- on So think renovation be then renovation pipeline. these perfectly is services these it's we going that, successful. lot well, a be going for need into ties to And of large our of to

that to you really product like. will know, So able our a provide really skill of then really top be to it's -- set people them is and to funnel that but also renovation groups like

on focused right we over that expect a to we lot So things now. are And some there happen the year. good next

Ryan Tomasello

that. Appreciate Thanks.

Operator

concludes Thank for Tomasello. the you your question-and-answer That session. Thank you, Mr. participation.

may now line. You disconnect your

Offerpad Solutions (OPAD) 22 Feb 232022 Q4 Earnings call transcript