Reduced legacy inventory and strengthened
balance sheet with new equity capital
Offerpad Solutions Inc. (“Offerpad”) (NYSE: OPAD), a leading
tech-enabled platform for residential real estate, today released
financial results for the three months ended and year ended
December 31, 2022.
Fourth Quarter 2022 Financial Results – compared with the
prior-year fourth quarter:
- Revenue was $677.2 million compared to $867.5 million
- Gross Profit was ($44.9) million* compared to $70.3
million
- Net Income was ($121.1) million* compared to $12.8 million
- Adjusted EBITDA was ($103.7) million* compared to $7.7
million
* Reported amounts include an inventory impairment charge of
$44.1 million
“I’m pleased to share we’ve made significant progress on two key
challenges, selling inventory acquired prior to the sharp market
dislocation and securing additional capital to strengthen our
balance sheet,” said Brian Bair, Chairman and CEO. “We are nearing
the end of our legacy inventory disposition process, and early
results from homes acquired after September 1, 2022 are showing
positive returns.”
“In addition, the investment of $90 million of new equity
capital from both new and existing shareholders at the end of
January further demonstrates continued confidence in our strategy,”
said Bair.
Q4 2022 Financial Results
Q4 2022
Q4 2021
Percentage Change
Homes acquired
539
3,049
(82%)
Homes sold
1,865
2,423
(23%)
Revenue
$677.2M
$867.5M
(22%)
Gross profit1
($44.9M)
$70.3M
n.a.
Net income (loss)1, 2
($121.1M)
$12.8M
n.a
Adjusted net loss1
($124.5M)
($2.8M)
(4,280%)
Adjusted EBITDA1
($103.7M)
$7.7M
n.a.
Gross profit (loss) per home
sold
($24,100)
$29,000
n.a.
Contribution profit (loss) after
interest per home sold
($32,800)
$18,400
n.a.
1 Includes $44.1 million charge in Q4 2022
for inventory impairments.
2 Includes $3.4 million non-cash credit in
Q4 2022 and a $15.6 million non-cash credit in Q4 2021 to mark to
market the Warrant Liability.
Operational highlights for full-year 2022 include:
- Sold over 10,000 homes in a year for the first time in Offerpad
history;
- Earned a 93 percent customer satisfaction rating1;
- Increased total listing, buyer and mortgage transactions by 90%
year-over-year; and
- Cash offer requests from the Agent Partnership Program
increased 80% year-over-year.
1 Based on survey of approximately 3,400
customers who sold their home to Offerpad in 2022.
Full-Year 2022 Financial Results
2022
2021
Percentage Change
Homes acquired
9,034
9,023
0%
Homes sold
10,635
6,373
67%
Revenue
$4.0B
$2.1B
91%
Gross profit1
$182.4M
$207.8M
(12%)
Net income (loss)1, 2
($148.6M)
$6.5M
n.a.
Adjusted net income (loss)1
($172.1M)
$4.0M
n.a.
Adjusted EBITDA1
($103.8M)
$29.9M
n.a.
Gross profit per home sold
$17,200
$32,600
(47%)
Contribution profit after interest per
home sold
$9,300
$22,900
(59%)
Cash and cash equivalents
$97.2M
$169.8M
(43%)
1 Includes $93.8 million charge in 2022
for inventory impairments.
2 Includes $23.5 million non-cash credit
in 2022 and a $2.5 million non-cash credit in 2021 to mark to
market the Warrant Liability.
Additional information regarding Offerpad’s fourth quarter and
full-year 2022 financial results and management commentary can be
found by accessing the Company’s Quarterly Letter to Shareholders
on the Offerpad investor relations website.
First Quarter 2023 Outlook
“Our strategy this year builds upon our long-standing mission to
provide a comprehensive solution center, while incorporating new
approaches that further capitalize on our existing foundation and
expertise. Specifically, we plan to retain and build our
foundational cash offer and listing service, responsibly grow our
business with an increased focus on existing market penetration and
expand our capital light business-to-business partnerships and
services,” noted Bair.
Offerpad is providing its first quarter outlook for 2023 as
follows:
Q1 2023 Outlook
Homes Sold
1,300 – 1,450
Revenue
$480M – $540M
Adjusted EBITDA4
($35)M – ($55)M
4 See Non-GAAP financial measures below
for an explanation of why a reconciliation of this guidance cannot
be provided.
“We expect our first quarter 2023 results to reflect sequential
bottom line improvement driven by improving returns and cost
reductions,” said Mike Burnett, CFO of Offerpad. “Consistent with
our purposeful decrease in homes acquired during the latter half of
2022, we expect a sequential decline in revenue as we continue to
optimize our portfolio.”
Conference Call and Webcast Details
Offerpad Chairman and CEO Brian Bair and CFO Mike Burnett will
host a conference call and accompanying webcast on February 22,
2023, at 5 p.m. ET. The webcast can be accessed on Offerpad’s
Investor Relations website. Participants can register here to
receive a personalized dial in number and PIN. Access to a replay
of the webcast will be available from the same website address
shortly after the live webcast concludes.
About Offerpad
Offerpad’s mission is to deliver the best home buying and
selling experience so you can spend less time ‘real estat-ing’ and
more time living. From cash offers and flexible listing options to
mortgages and buyer services, Offerpad has been helping homeowners
since 2015. We pair our local expertise in residential real estate
with proprietary technology to put you in control of the process
and help find the right solution that fits your needs. Visit
Offerpad.com for more information.
#OPAD_IR
Forward-Looking Statements
Certain statements in this press release may be considered
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to future events or Offerpad’s future
financial or operating performance. For example, statements
regarding Offerpad’s financial outlook for the first quarter 2023,
expectations regarding profitability and anticipated growth in the
industry in which Offerpad operates are forward-looking statements.
In some cases, you can identify forward-looking statements by
terminology such as “pro forma,” “may,” “should,” “could,” “might,”
“plan,” “possible,” “project,” “strive,” “budget,” “forecast,”
“expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,”
“predict,” “potential” or “continue,” or the negatives of these
terms or variations of them or similar terminology. Such
forward-looking statements are subject to risks, uncertainties, and
other important factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. Factors that may impact such forward-looking statements
include, but are not limited to, Offerpad’s ability to respond to
general economic conditions; the health of the U.S. residential
real estate industry; Offerpad’s ability to grow market share in
its existing markets or any new markets it may enter; the impact of
the COVID-19 pandemic; Offerpad’s ability to manage its growth
effectively; Offerpad’s ability to accurately value and manage
inventory, and to maintain an adequate and desirable supply of
inventory; Offerpad’s ability to successfully launch new product
and service offerings, and to manage, develop and refine its
technology platform; Offerpad’s ability to maintain and enhance its
products and brand, and to attract customers; Offerpad’s ability to
achieve and maintain profitability in the future; the success of
strategic relationships with third parties; and Offerpad’s failure
to meet the New York Stock Exchange’s continued listing standards.
These and other important factors discussed under the caption "Risk
Factors" in Offerpad’s Annual Report on Form 10-K for the year
ended December 31, 2022 to be filed with the Securities and
Exchange Commission on or about February 28, 2023, and Offerpad’s
other reports filed with the Securities and Exchange Commission
could cause actual results to differ materially from those
indicated by the forward-looking statements made in this press
release. These forward-looking statements are based upon estimates
and assumptions that, while considered reasonable by Offerpad and
its management, are inherently uncertain. Nothing in this press
release should be regarded as a representation by any person that
the forward-looking statements set forth herein will be achieved or
that any of the contemplated results of such forward-looking
statements will be achieved. You should not place undue reliance on
forward-looking statements, which speak only as of the date they
are made. Offerpad undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
OFFERPAD SOLUTIONS
INC.
Condensed Consolidated
Statements of Operations
Three Months Ended
Year Ended
December 31,
December 31,
(in thousands, except per share
data)
2022
2021
2022
2021
Revenue
$
677,214
$
867,540
$
3,952,314
$
2,070,446
Cost of revenue
722,074
797,248
3,769,892
1,862,631
Gross (loss) profit
(44,860
)
70,292
182,422
207,815
Operating expenses:
Sales, marketing and operating
48,761
51,474
238,931
146,872
General and administrative
13,300
12,286
58,718
30,317
Technology and development
2,978
3,197
12,090
10,860
Total operating expenses
65,039
66,957
309,739
188,049
(Loss) income from operations
(109,899
)
3,335
(127,317
)
19,766
Other income (expense):
Change in fair value of warrant
liabilities
3,360
15,649
23,522
2,464
Interest expense
(15,135
)
(6,178
)
(45,991
)
(15,848
)
Other income, net
861
—
1,532
248
Total other (expense) income
(10,914
)
9,471
(20,937
)
(13,136
)
(Loss) income before income
taxes
(120,813
)
12,806
(148,254
)
6,630
Income tax expense
(324
)
—
(359
)
(170
)
Net (loss) income
$
(121,137
)
$
12,806
$
(148,613
)
$
6,460
Net (loss) income per share, basic
$
(0.49
)
$
0.05
$
(0.61
)
$
0.05
Net (loss) income per share, diluted
$
(0.49
)
$
0.05
$
(0.61
)
$
0.05
Weighted average common shares
outstanding, basic
247,379
238,395
245,148
118,571
Weighted average common shares
outstanding, diluted
247,379
261,897
245,148
143,220
OFFERPAD SOLUTIONS
INC.
Condensed Consolidated Balance
Sheets
As of December 31,
(in thousands, except par value
per share)
2022
2021
ASSETS
Current assets:
Cash and cash equivalents
$
97,241
$
169,817
Restricted cash
43,058
24,616
Accounts receivable
2,350
6,165
Inventory
664,697
1,132,571
Prepaid expenses and other current
assets
6,833
9,808
Total current assets
814,179
1,342,977
Property and equipment, net
5,194
5,146
Other non-current assets
5,696
4,959
TOTAL ASSETS
$
825,069
$
1,353,082
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
4,647
$
6,399
Accrued and other current liabilities
28,252
35,027
Secured credit facilities and other debt,
net
605,889
861,762
Secured credit facilities and other debt -
related party
60,176
164,434
Total current liabilities
698,964
1,067,622
Warrant liabilities
539
24,061
Other long-term liabilities
3,689
3,830
Total liabilities
703,192
1,095,513
Commitments and contingencies
Stockholders’ equity:
Class A common stock, $0.0001 par value;
2,000,000 shares authorized; 232,379 and 224,154 shares issued and
outstanding as of December 31, 2022 and 2021, respectively
23
22
Class B common stock, $0.0001 par value;
20,000 shares authorized; 14,816 shares issued and outstanding as
of December 31, 2022 and 2021, respectively
2
2
Additional paid in capital
402,521
389,601
Accumulated deficit
(280,669
)
(132,056
)
Total stockholders’ equity
121,877
257,569
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
825,069
$
1,353,082
OFFERPAD SOLUTIONS
INC.
Condensed Consolidated
Statements of Cash Flows
Year Ended December 31
($ in thousands)
2022
2021
Cash flows from operating
activities:
Net (loss) income
$
(148,613
)
$
6,460
Adjustments to reconcile net (loss) income
to net cash provided by (used in) operating activities:
Depreciation
1,022
523
Gain on sale of property and equipment
—
(246
)
Amortization of debt financing costs
2,948
916
Impairment of inventory
93,810
2,843
Stock-based compensation
8,307
3,079
Change in fair value of warrant
liabilities
(23,522
)
(2,464
)
Changes in operating assets and
liabilities:
Accounts receivable
3,815
(3,845
)
Inventory
374,064
(949,591
)
Prepaid expenses and other assets
(275
)
(5,288
)
Accounts payable
(1,752
)
4,130
Accrued and other liabilities
(4,402
)
21,563
Net cash provided by (used in)
operating activities
305,402
(921,920
)
Cash flows from investing
activities:
Purchases of property and equipment
(1,070
)
(13,687
)
Proceeds from sales of property and
equipment
—
2,032
Net cash used in investing
activities
(1,070
)
(11,655
)
Cash flows from financing
activities:
Borrowings from credit facilities and
other debt
3,178,033
2,764,071
Repayments of credit facilities and other
debt
(3,540,466
)
(1,912,837
)
Payment of debt financing costs
(646
)
(7,632
)
Proceeds from exercise of stock
options
4,898
902
Payments for taxes related to stock-based
awards
(285
)
—
Proceeds from Business Combination
—
284,011
Issuance cost of common stock
—
(51,249
)
Proceeds from issuance of Class C
preferred stock, net
—
—
Net cash (used in) provided by
financing activities
(358,466
)
1,077,266
Net change in cash, cash equivalents
and restricted cash
(54,134
)
143,691
Cash, cash equivalents and restricted
cash, beginning of period
194,433
50,742
Cash, cash equivalents and restricted
cash, end of period
$
140,299
$
194,433
Reconciliation of cash, cash
equivalents and restricted cash to the consolidated balance
sheet:
Cash and cash equivalents
$
97,241
$
169,817
Restricted cash
43,058
24,616
Total cash, cash equivalents and
restricted cash
$
140,299
$
194,433
Supplemental disclosure of cash flow
information:
Cash payments for interest
$
59,732
$
21,875
Supplemental disclosure of non-cash
investing and financing activities:
Transfer of property and equipment, net to
inventory
$
—
$
14,464
Acquisition of warrant liabilities
$
—
$
26,525
Conversion of preferred stock to common
stock
$
—
$
184,123
Conversion of treasury stock
$
—
$
10,650
Non-GAAP Financial Measures
In addition to Offerpad’s results of operations above, Offerpad
reports certain financial measures that are not required by, or
presented in accordance with, U.S. generally accepted accounting
principles (“GAAP”). These measures have limitations as analytical
tools when assessing Offerpad’s operating performance and should
not be considered in isolation or as a substitute for GAAP
measures, including gross profit and net income.
Offerpad may calculate or present its non-GAAP financial
measures differently than other companies who report measures with
similar titles and, as a result, the non-GAAP financial measures
Offerpad reports may not be comparable with those of companies in
Offerpad’s industry or in other industries. Offerpad has not
provided a quantitative reconciliation of forecasted Adjusted
EBITDA to forecasted net income (loss) within this press release
because Offerpad is unable to calculate certain reconciling items
without making unreasonable efforts. These items, which include,
but are not limited to, stock-based compensation with respect to
future grants and forfeitures, could materially affect the
computation of forward-looking net income (loss), are inherently
uncertain and depend on various factors, some of which are outside
of Offerpad’s control.
Adjusted Gross Profit, Contribution Profit, and Contribution
Profit After Interest (and related margins)
To provide investors with additional information regarding
Offerpad’s margins, Offerpad has included Adjusted Gross Profit,
Contribution Profit, and Contribution Profit After Interest (and
related margins), which are non-GAAP financial measures. Offerpad
believes that Adjusted Gross Profit, Contribution Profit, and
Contribution Profit After Interest are useful financial measures
for investors as they are used by management in evaluating unit
level economics and operating performance across Offerpad’s
markets. Each of these measures is intended to present the
economics related to homes sold during a given period. Offerpad
does so by including revenue generated from homes sold (and
ancillary services) in the period and only the expenses that are
directly attributable to such home sales, even if such expenses
were recognized in prior periods, and excluding expenses related to
homes that remain in inventory as of the end of the period
presented. Contribution Profit provides investors a measure to
assess Offerpad’s ability to generate returns on homes sold during
a reporting period after considering home acquisition costs,
renovation and repair costs, and adjusting for holding costs and
selling costs. Contribution Profit After Interest further impacts
gross profit by including interest costs (including senior and
mezzanine secured credit facilities) attributable to homes sold
during a reporting period. Offerpad believes these measures
facilitate meaningful period over period comparisons and illustrate
Offerpad’s ability to generate returns on assets sold after
considering the costs directly related to the assets sold in a
presented period.
Adjusted Gross Profit, Contribution Profit and Contribution
Profit After Interest (and related margins) are supplemental
measures of Offerpad’s operating performance and have limitations
as analytical tools. For example, these measures include costs that
were recorded in prior periods under GAAP and exclude, in
connection with homes held in inventory at the end of the period,
costs required to be recorded under GAAP in the same period.
Accordingly, these measures should not be considered in
isolation or as a substitute for analysis of Offerpad’s results as
reported under GAAP. Offerpad includes a reconciliation of these
measures to the most directly comparable GAAP financial measure,
which is gross profit.
Adjusted Gross Profit / Margin
Offerpad calculates Adjusted Gross Profit as gross profit under
GAAP adjusted for (1) net inventory impairment plus (2) interest
expense associated with homes sold in the presented period and
recorded in cost of revenue. Net inventory impairment is calculated
by adding back the inventory impairment charges recorded during the
period on homes that remain in inventory at period end and
subtracting the inventory impairment charges recorded in prior
periods on homes sold in the current period. Offerpad defines
Adjusted Gross Margin as Adjusted Gross Profit as a percentage of
revenue.
Offerpad views this metric as an important measure of business
performance, as it captures gross margin performance isolated to
homes sold in a given period and provides comparability across
reporting periods. Adjusted Gross Profit helps management assess
performance across the key phases of processing a home
(acquisitions, renovations, and resale) for a specific resale
cohort.
Contribution Profit / Margin
Offerpad calculates Contribution Profit as Adjusted Gross
Profit, minus (1) direct selling costs incurred on homes sold
during the presented period, minus (2) holding costs incurred in
the current period on homes sold during the period recorded in
sales, marketing, and operating, minus (3) holding costs incurred
in prior periods on homes sold in the current period recorded in
sales, marketing, and operating, plus (4) other income which is
primarily comprised of interest income earned on our cash and cash
equivalents and income earned from the sale of certain fixed
assets. The composition of Offerpad’s holding costs is described in
the footnotes to the reconciliation table below. Offerpad defines
Contribution Margin as Contribution Profit as a percentage of
revenue.
Offerpad views this metric as an important measure of business
performance as it captures the unit level performance isolated to
homes sold in a given period and provides comparability across
reporting periods. Contribution Profit helps management assess
inflows and outflow directly associated with a specific resale
cohort.
Contribution Profit / Margin After Interest
Offerpad defines Contribution Profit After Interest as
Contribution Profit, minus (1) interest expense associated with
homes sold in the presented period and recorded in cost of revenue,
minus (2) interest expense associated with homes sold in the
presented period, recorded in costs of sales, and previously
excluded from Adjusted Gross Profit, and minus (3) interest expense
under Offerpad’s senior and mezzanine secured credit facilities
incurred on homes sold during the period. This includes interest
expense recorded in prior periods in which the sale occurred.
Offerpad’s senior and mezzanine secured credit facilities are
secured by their homes in inventory and drawdowns are made on a
per-home basis at the time of purchase and are required to be
repaid at the time the homes are sold. Offerpad defines
Contribution Margin After Interest as Contribution Profit After
Interest as a percentage of revenue.
Offerpad views this metric as an important measure of business
performance. Contribution Profit After Interest helps management
assess Contribution Margin performance, per above, when fully
burdened with costs of financing.
The following table presents a reconciliation of Offerpad’s
Adjusted Gross Profit, Contribution Profit and Contribution Profit
After Interest to Offerpad’s gross profit, which is the most
directly comparable GAAP measure, for the periods indicated:
Three Months Ended December
31,
Year Ended December
31,
(in thousands, except
percentages and homes sold, unaudited)
2022
2021
2022
2021
Gross profit (GAAP)
$
(44,860
)
$
70,292
$
182,422
$
207,815
Gross margin
-6.6
%
8.1
%
4.6
%
10.0
%
Homes sold
1,865
2,423
10,635
6,373
Gross profit per home sold
$
(24.1
)
$
29.0
$
17.2
$
32.6
Adjustments: Inventory impairment - current period (1)
44,075
985
58,413
1,205
Inventory impairment - prior period (2)
(25,469
)
(511
)
(1,205
)
(160
)
Interest expense capitalized (3)
3,081
3,511
12,660
6,294
Adjusted gross profit
$
(23,173
)
$
74,277
$
252,290
$
215,154
Adjusted gross margin
-3.4
%
8.6
%
6.4
%
10.4
%
Adjustments: Direct selling costs (4)
(20,584
)
(19,894
)
(97,381
)
(48,066
)
Holding costs on sales - current period (5)(6)
(1,251
)
(1,339
)
(8,342
)
(4,262
)
Holding costs on sales - prior period (5)(7)
(1,209
)
(558
)
(918
)
(214
)
Other income (8)
861
-
1,532
248
Contribution profit
$
(45,356
)
$
52,486
$
147,181
$
162,860
Contribution margin
-6.7
%
6.0
%
3.7
%
7.9
%
Homes sold
1,865
2,423
10,635
6,373
Contribution profit per home sold
$
(24.3
)
$
21.7
$
13.8
$
25.6
Adjustments: Interest expense capitalized (3)
(3,081
)
(3,511
)
(12,660
)
(6,294
)
Interest expense on homes sold - current period (9)
(5,858
)
(2,575
)
(32,022
)
(10,228
)
Interest expense on homes sold - prior period (10)
(6,943
)
(1,749
)
(3,737
)
(468
)
Contribution profit after interest
$
(61,238
)
$
44,651
$
98,762
$
145,870
Contribution margin after interest
-9.0
%
5.1
%
2.5
%
7.0
%
Homes sold
1,865
2,423
10,635
6,373
Contribution profit after interest per home sold
$
(32.8
)
$
18.4
$
9.3
$
22.9
(1) Inventory impairment – current period
is the inventory valuation adjustments recorded during the period
presented associated with homes that remain in inventory at period
end.
(2) Inventory impairment – prior period is
the inventory valuation adjustments recorded in prior periods
associated with homes that sold in the period presented.
(3) Interest expense capitalized
represents all interest related costs, including senior and
mezzanine secured credit facilities, incurred on homes sold in the
period presented that were capitalized and expensed in cost of
sales at the time of sale.
(4) Direct selling costs represents
selling costs incurred related to homes sold in the period
presented. This primarily includes broker commissions and title and
escrow closing fees.
(5) Holding costs primarily include
insurance, utilities, homeowners association dues, property taxes,
cleaning, and maintenance costs.
(6) Represents holding costs incurred on
homes sold in the period presented and expensed to Sales,
marketing, and operating on the Condensed Consolidated Statements
of Operations.
(7) Represents holding costs incurred in
prior periods on homes sold in the period presented and expensed to
Sales, marketing, and operating on the Condensed Consolidated
Statements of Operations.
(8) Other income principally represents
interest income earned on our cash and cash equivalents and income
earned from the sale of certain fixed assets.
(9) Represents both senior and mezzanine
interest expense incurred on homes sold in the period presented and
expensed to interest expense on the Condensed Consolidated
Statements of Operations.
(10) Represents both senior and mezzanine
secured credit facilities interest expense incurred in prior
periods on homes sold in the period presented and expensed to
Interest expense on the Condensed Consolidated Statements of
Operations.
Adjusted Net Income (Loss) and Adjusted EBITDA
Offerpad also presents Adjusted Net Income (Loss) and Adjusted
EBITDA, which are non-GAAP financial measures, which the management
team uses to assess Offerpad’s underlying financial performance.
Offerpad believes these measures provide insight into period over
period performance, adjusted for non-recurring or non-cash
items.
Offerpad calculates Adjusted Net Income (Loss) as GAAP Net
Income (Loss) adjusted for the change in fair value of warrant
liabilities. Offerpad defines Adjusted Net Income (Loss) Margin as
Adjusted Net Income (Loss) as a percentage of revenue.
Offerpad calculates Adjusted EBITDA as Adjusted Net Income
(Loss) adjusted for interest expense, amortization of capitalized
interest, taxes, depreciation and amortization and stock-based
compensation expense. Offerpad defines Adjusted EBITDA Margin as
Adjusted EBITDA as a percentage of revenue.
Adjusted Net Income (Loss) and Adjusted EBITDA are supplemental
to Offerpad’s operating performance measures calculated in
accordance with GAAP and have important limitations. For example,
Adjusted Net Income (Loss) and Adjusted EBITDA exclude the impact
of certain costs required to be recorded under GAAP and could
differ substantially from similarly titled measures presented by
other companies in Offerpad’s industry or companies in other
industries. Accordingly, these measures should not be considered in
isolation or as a substitute for analysis of Offerpad’s results as
reported under GAAP.
The following table presents a reconciliation of Offerpad’s
Adjusted Net Income (Loss) and Adjusted EBITDA to their GAAP Net
Income (Loss), which is the most directly comparable GAAP measure,
for the periods indicated:
Three Months Ended December
31,
Year Ended December
31,
(in thousands, except percentages, unaudited)
2022
2021
2022
2021
Net income (loss) (GAAP)
$
(121,137
)
$
12,806
$
(148,613
)
$
6,460
Change in fair value of warrant liability
(3,360
)
(15,649
)
(23,522
)
(2,464
)
Adjusted net (loss) income
$
(124,497
)
$
(2,843
)
$
(172,135
)
$
3,996
Adjusted net (loss) income margin
(18.4
%)
(0.3
%)
(4.4
%)
0.2
%
Adjustments: Interest expense
15,135
6,178
45,991
15,848
Amortization of capitalized interest (1)
3,081
3,511
12,660
6,294
Income tax expense
324
-
359
170
Depreciation and amortization
258
90
1,022
523
Amortization of share based compensation
2,014
763
8,307
3,079
Adjusted EBITDA
(103,685
)
7,699
(103,796
)
29,910
Adjusted EBITDA margin
(15.3
%)
0.9
%
(2.6
%)
1.4
%
(1) Amortization of capitalized interest
represents all interest related costs, including senior and
mezzanine secured interest related costs, incurred on homes sold in
the period presented that were capitalized and expensed in cost of
sales at the time of sale.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230222005162/en/
Investors Stefanie Layton Investors@offerpad.com
Media Press@Offerpad.com
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