The iBuyer lost $17.5 million between January and March, according to an earnings call Monday afternoon. However, that represents a 71 percent improvement compared to a year earlier.

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IBuyer Offerpad revealed on Monday its revenue cratered in the first quarter of 2024 compared to a year earlier, but it also managed to trim losses and increase the number of homes it acquired.

In total, Offerpad brought in $285.4 million in revenue between January and March, according to a newly released earnings report. That’s down 53 percent compared to the $609.6 million in revenue it earned in the first quarter of 2023. However, lower revenue notwithstanding, Offerpad also reduced its Q1 loss to just $17.5 million — a 71 percent improvement over the $59.4 million it lost a year earlier.

The company also ramped up acquisitions in the quarter, buying a total of 806 homes. That’s up from just 364 homes in Q1 of 2023. Meanwhile, Offerpad sold 847 homes in Q1 of 2024, down from 1,609 in Q1 of 2023

One year ago, rates were still on an upward trajectory and the housing market was in the midst of a slowdown. By contrast, the Q1 2024 increase in home acquisitions — a strategy rival Opendoor is also employing — could be interpreted as a bet that the market doldrums of the last two years will clear in the coming months.

Several of Monday’s numbers also represent an improvement over the previous quarter, when Offerpad brought in $240.5 million in revenue. The company’s Q1 2024 revenue was 19 percent higher compared to the previous three-month period. Homes acquired and sold were both up 19 percent in Q1 relative to the previous quarter as well.

Alternatively, losses ticked up quarter over quarter by 13 percent.

Brian Bair

In Monday’s report, Offerpad CEO Brian Bair said that in the first quarter of this year his company “continued the positive trajectory we experienced exiting 2023.”

“While the macro is still volatile, the first quarter was one of increasing stability, and we believe this trend will continue through 2024,” Bair said in the report. “We are making steady progress against our key strategic imperatives. We are focused on expanding our asset-light platform services, particularly Renovate, which grew 78 percent in the quarter; increasing our buy box; growing our partner ecosystem; and achieving adjusted EBITDA profitability.”

Heading into Monday’s earnings report, shares in Offerpad were trading in the mid-$7 range. That was down for the day and compared to the beginning of the year, when shares were fetching more than $9. Nearly a year ago, Offerpad executed a 1-for-15 reverse stock split to avoid being delisted from the New York Stock Exchange.

Shares fell in after-hours trading Monday following the publication of Offerpad’s Q1 earnings report.

Credit: Google

Offerpad had a market cap of about $198.1 million as of Monday afternoon.

During a call with analysts Monday, Bair said that Offerpad has “made progress on navigating the entire environment of the last year and a half.” Among other things, he said the company should be able to achieve positive adjusted EBITDA in 2024, and Offerpad is successfully growing asset-light services on its platform.

Regarding the cash offer business, Bair said that the company is still “being very cautious.”

“We’re focused right now on the performance of each home that we buy,” he added while on the call. “I don’t think it’s really time to start jumping in 100 percent there yet.”

Asked on the call about potentially expanding to new markets, Bair said that “there’s still a lot of wood to chop” in Offerpad’s existing markets — meaning there’s room to expand share in the areas where the company already operates.

Overall, though, Bair was optimistic about the future.

“Despite the ongoing macro challenges,” Bair told analysts, “our focus remains on the factors within our control.”

Update: This story was updated after publication with additional details from Offerpad’s earnings report and with commentary from a call the company held with analysts.

Email Jim Dalrymple II

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