Chandler-based Offerpad Inc., an iBuyer using a technology platform to buy and sell homes, revealed its financials for the first time.
In its first earnings call before going public, Offerpad reported record revenue and its first-ever profits for the second quarter ended June 30.
After losing $7.4 million on revenue of $287 million during the second quarter of 2020, Offerpad reported a record net income of $9.2 million on revenue of $378.6 million during the second quarter of 2021.
Plans call for merging with Supernova Partners Acquisition Co. (NYSE: SPNV), launching Offerpad onto the New York Stock Exchange under its own ticker symbol, OPAD. That deal is expected to close on Aug. 31.
Since Brian Bair founded Offerpad in 2015, he refused to disclose financial information in prior interviews with the Business Journal, including basic information such as the number of homes the company purchased.
In releasing its net income and revenues, Offerpad also disclosed the number of homes sold and acquired during the second quarter.
During the second quarter of 2021, Offerpad sold 1,259 homes, up 8% from the second quarter in 2020, while acquiring 2,025 homes during Q2 2020, up 340.2% from the year-earlier period.
In an Aug. 16 earnings call with analysts, Bair confirmed plans to open in four more markets during the second half of this year, taking its footprint to a total of 21 markets across the country. In June, the company said it would target these four markets to be operational by Q4: Columbus, Ohio; Kansas City and St. Louis, Missouri; and Columbia, South Carolina. The newest Offerpad market to open this year was Indianapolis, which went live in July.
Steven Hensley, advisory manager for Zonda housing market research firm, said he’s not surprised to see the iBuyer market gain traction in the real estate market because there has been limited technological disruption relative to some other industries.
“As we continue to navigate through the digital age, it is likely that a larger share of homeowners will utilize the various iBuyer services,” he said.
Offerpad also provided guidance for the third quarter and full year, expecting Q3 revenue to range between $460 million and $520 million, which would represent a sequential growth rate of 29% over the second quarter of 2021 at the midpoint of the range.
For the full-year outlook, plans call for selling between 5,612 and 6,000 homes, up from the 4,281 homes sold in 2020.
Full-year revenue is expected somewhere between $1.7 billion and $1.85 billion, up from $1.1 billion in 2020. Gross profit also is expected to be somewhere between $170 million and $180 million for the full year, compared with $88 million in 2020.