Offerpad Solutions Inc. · NYSE:OPAD
Offerpad Solutions — Offerpad — SPAC Merger (June 2021)
39 slides from Offerpad Solutions's SPAC merger presentation, June 2021
Slide 1: Investor Presentation
Investor Presentation June 2021
Slide 2: Disclaimer
Disclaimer About this Presentation This investor presentation (this “Presentation”) relates to a proposed business combination (the “Business Combination”) between Supernova Partners Acquisition Company, Inc. (“Supernova”) and OfferPad, Inc. (the “Company”). The information contained herein does not
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Use of Projections This Presentation contains financial forecasts for the Company with respect to certain financial results for the Company. Neither Supernova’s nor Company's independent auditors have audited, studied, reviewed, compiled or performed any procedures with respect t
Slide 4: Our mission is to provide the best way to buy and sell a home
Our mission is to provide the best way to buy and sell a home. Period. 3
Slide 5: Online penetration in real estate is nascent compared to other industries
Online penetration in real estate is nascent compared to other industries but following a similar trajectory ~$350B1 $210B2 Prescription meds Car buying opportunity today opportunity today $1.9T Real Estate ~6% Digital ~1% Digital opportunity today penetration5 penetration6 99% analog $600B3 ~$650B4
Slide 6: Offerpad – A Perfect Match For Supernova
Offerpad – A Perfect Match For Supernova Supernova’s Acquisition Criteria Offerpad Meets All Of Supernova’s Acquisition Criteria Large and growing TAM ripe for disruption 1 Large addressable market $850 billion Offerpad “Buy Box” immediate opportunity Offerpad is a leading iBuyer platform with a hig
Slide 7: Partnering with Offerpad to create meaningful shareholder value
Partnering with Offerpad to create meaningful shareholder value Full commitment of Supernova team, working hand in hand with board of directors and management, to create the leading next-generation real estate technology platform Internally Externally Assist in attracting the best talent through our
Slide 8: We are transforming the largest asset class: real estate
We are transforming the largest asset class: real estate Market opportunity Highly fragmented market $1.9tn 1.4mm Annual residential Agents per NAR real estate sales membership3 $950bn “Buy Box” 107K opportunity over time1 U.S. real estate brokerages3 $850bn <10% “Buy Box” Market share of top broker
Slide 9: Our differentiated approach
Our differentiated approach Selling services Buying services Competitive cash No showings or Pick your Free Self-tour Bundle Closing cost Early access to offer in 24 hours open houses closing day local move* Offerpad homes and Save incentives Offerpad homes Sell to Offerpad Buy with Offerpad Cash of
Slide 10: A simple, tech-enabled solution for our customers
A simple, tech-enabled solution for our customers Request a cash Offer 3-minute request form and offer will be delivered within 24 hours Search Offerpad & Non- Offerpad Homes Online Research all homes on the market as well as Offerpad coming soon homes Access Vacant Offerpad Homes via Mobile App Vis
Slide 11: Our customers are our best reference
Our customers are our best reference 95% 81 9 out of 10 Customer Satisfaction Net Promoter Score (NPS) 1 Recommend to a Friend 1 Rating 1 (1) Q1’21 Survey of over 540 respondents of customers who sold their home to Offerpad 10
Slide 12: Operational expertise that maximizes value
Operational expertise that maximizes value Best-in-Class Renovations Renovation Time Efficiencies Helix GO Field Automation 23.3 Workforce optimization Internal / external workforce mix 2.0 16.4 15.1 13.2 Local project managers Offerpad employees who oversee each renovation from start to finish 1.2
Slide 13: Renovation before and after
Renovation before and after Tempe, AZ: $62k Renovation, $81k Contribution Margin/Home BEFORE AFTER BEFORE AFTER BEFORE AFTER BEFORE AFTER 12
Slide 14: Offerpad by the numbers
Offerpad by the numbers ◼ 900+ Cities and towns ◼ $7.5bn+ Transactions to date2 ◼ 95% customer satisfaction3 ◼ 16 Markets 1 ◼ $1.4bn Revenue in 2021E ◼ 81 Net promote score (NPS)3 ◼ 15,000+ ◼ Positive contribution margins per ◼ 9 out of 10 recommend Renovations to date home since 2016 to a friend 3
Slide 15: Highly attractive unit economics
Highly attractive unit economics TTM as of Q1’21 contribution margin per home after interest $28K $(2K) 0.8% $(9K) 3.6% ~$2K-7K ~$16K-21K $16K 0.5% - $1K $14K 2.5% 10.7% $13K 6.0% - 6.3% 8.0% 5.2% 5.5% Net sale proceeds Holding costs Selling costs Contribution margin Contribution margin Other servic
Slide 16: We have achieved rapid growth and scale
We have achieved rapid growth and scale Total markets at year end 19 Homes acquired 6,455 4,998 14 12 3,848 10 3,519 8 1,999 5 583 2016 2017 2018 2019 2020 2021E 2016 2017 2018 2019 2020 1 2021E Total revenue ($B) +84% Homes sold 1.4 CAGR 5,612 1.1 1.1 4,680 4,281 0.9 3,666 1,351 0.3 0.1 265 1 1 201
Slide 17: Q1'21 Financial and Operational Highlights
Q1’21 Financial and Operational Highlights 1,196 ($0.2M) Homes Acquired Net Loss $23.1k $284M +16% QoQ +$11.2M YoY Contribution Margin Revenue after Interest +27.2% QoQ 1,018 $3.0M per Home Sold +349% YoY Adj EBITDA Homes Sold Second consecutive +15% Avg. Rev per Unit YoY positive quarter Milestones
Slide 18: Improving KPIs Post-COVID-19
Improving KPIs Post-COVID-19 Revenue ($M) Homes Acquired & Homes Sold Acquired Sold $368 1,517 $287 $284 1,166 1,196 $223 1,032 $186 1,258 749 1,018 849 769 460 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Net Loss & Adj. EBITDA ($M) Net Loss Adj EBITDA Contribution Profit after Inter
Slide 19: Our growth plans and path towards profitability
Our growth plans and path towards profitability Revenue ($B) Gross Profit ($M) Contribution Margin After Interest ($M) $353 $171 $3.9 +59% +64% +55% CAGR CAGR CAGR $2.4 $210 $97 $1.4 $118 $52 $1.1 $88 $39 2020 2021E 2022E 2023E 2020 2021E 2022E 2023E 2020 2021E 2022E 2023E Cont. Gross Margin Margin
Slide 20: Significant untapped growth potential
Significant untapped growth potential 2021E Future opportunity Each market adds Markets 191 ~$0.5bn3 in revenue 48 Each % share adds Market-share ~1% ~$6bn4 in revenue 4% Annual revenue / $1.4bn2 16x $23bn5 run rate revenue Contribution margin $52mm2 $1.6bn+ after interest Existing market Potential
Slide 21: We are in early innings in our growth story
We are in early innings in our growth story 3-4% Market share (0.8% as of A Increase penetration Q1’21) $8 2%+ Contribution billion+1 margin uplift Run-rate revenue B Grow new markets 48 Strong Markets Attach rates by 2023 Looking ahead (163 today) $23 1:2+ billion2 C Flex offering Express / Flex lo
Slide 22: Founder-led & experienced team across real estate and tech
Founder-led & experienced team across real estate and tech Brian Bair Mike Burnett Steve Johnson Founder & Chief Executive Chief Financial Officer Chief Operating Officer Officer Ben Aronovitch Vaughn Bair Casey Bair Chief Legal Officer Chief Real Estate Officer Chief Acquisition Officer Heather Bai
Slide 23: Transaction overview
Transaction overview
Slide 24: Overview of Supernova Partners Acquisition Company
Overview of Supernova Partners Acquisition Company Deep industry expertise and strong sponsorship Delivering on Supernova’s acquisition criteria • Supernova Partners Acquisition Company, Inc. ("Supernova"), a publicly Large addressable market traded company (NYSE: SPNV) raised $402.5 million at IPO
Slide 25: Transaction summary
Transaction summary ($ Millions) Transaction highlights Pro forma valuation • Pro Forma Enterprise Value of $2.4B based on 1.0x 2022E Revenue of $2.4B Pro Forma Valuation Calculation • Existing Offerpad equity holders will roll 100% of their equity and will own 67% of the Offerpad Illustrative Share
Slide 26: Appendix
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Slide 27: Offerpad driving significant change in sell-side real estate transactions
Offerpad driving significant change in “sell-side” real estate transactions As long as 6 months or 30+ days & 10+ showings more to buy or sell a 30+ 30-45 Traditional days $1,000s of list 30+ days on days in escrow home ready repairs market Lacks transparency, multiple counterparties, time-consuming
Slide 28: Offerpad is the new way to buy a home
Offerpad is the new way to buy a home ✓ See a home at your own schedule – not only when it works for the seller ✓ Get access to a home with your phone – no agent needed ✓ Use an agent or not at your own discretion ✓ Buy a home that has been refurbished by a skilled experienced team ✓ Offers can be s
Slide 29: Local expertise supercharges our proprietary technology
Local expertise supercharges our proprietary technology Advantaged combination of machine evaluation & human review Public Proprietary Record Private Robust data sources Automated verification, Real estate Offer Data Offer valuation & renovation expert review & request collection delivered modeling
Slide 30: Attractive conversion metrics with significant continued upside
Attractive conversion metrics with significant continued upside 10-15k 16(1) 99% Requests Markets Acquisitions sourced per month via Offerpad Platform Attractive top of funnel acquisition 20+% $3K Organic Blended CAC of seller 77% of sellers contacted 99% Limited competition 1 underwriting agent bef
Slide 31: Proven market-by-market profitability
Proven market-by-market profitability TTM as of Q1’21 Contribution Margin After Interest1 Newer markets with volume still ramping 7% 7% 7% 6% 6% 6% 6% 6% 5% 5% 3% 1% (1%) Market 1 Market 2 Market 3 Market 4 Market 5 Market 6 Market 7 Market 8 Market 9 Market 10 Market 11 Market 12 Company-wide Q1’21
Slide 32: While further improving cash conversion rates
While further improving cash conversion rates Time to sell distribution (months) Average time to cash ~89% of homes sold in <6 months 1 <6 months > 6 months 138 43 days 133 days days 104 days 95 95 days days 2016 2017 2018 2019 2020 9.5; 10.0 4.5; 5.0 0.0; 0,5 0.5; 1.0 1.0; 1.5 1.5; 2.0 2.0; 2.5 2.5
Slide 33: Our current and planned footprint
Our current and planned footprint Market Strategy Geographic Diversification $23bn in run-rate revenue from future markets 1 High Population Growth Cities Affordable Median Sales Price Increasing Employment Characteristics Single Family Rental Buyer Presence 18% 18% 17% Denver Indianapolis Las Vegas
Slide 34: Ancillary services opportunities
Ancillary services opportunities Product Expansion Strategy Title Today Core transaction services focused on maximizing organic conversion rate Mortgage Energy efficiency Mid-Term Offerpad Flex Ancillary Additional transaction services and services entry into home personalization Home Smart home war
Slide 35: Summary of our warehouse financing agreements
Summary of our warehouse financing agreements Debt capitalization (as of Q1 ’21) Loan to cost: Property debt / inventory 7.5% 7.5% 7.5% Capacity Drawn 96% 97% 97% 2 Senior secured facility 1 (Libor + 4.0%) $225 $103 95% L+5.25% Senior secured facility 2 (Libor + 2.5%) 225 75 77% L+3.50% L+4.0% L+3.5
Slide 36: Summary financials
Summary financials 2020 2021E 2022E 2023E Homes Sold 4,281 5,612 9,593 14,987 % YoY Growth (9%) 31% 71% 56% Total Revenue ($B) $1.1 $1.4 $2.4 $3.9 % YoY Growth (1%) 32% 73% 63% Gross Profit ($M) $88 $118 $210 $353 % Margin 8.2% 8.4% 8.7% 8.9% Contribution Profit After Interest ($M) $39 $52 $97 $171
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended (in thousands, except percentages and homes sold) March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 Gross profit (GAAP) $ 33,537 $ 25,254 $ 19,766 $ 17,861 $ 24,898 Gross margin 11.8% 11.3% 10.6% 6.2% 6.8% Homes sold 1,018 84
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended (in thousands, except percentages) March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 Net loss (GAAP) $ (233) $ (1,321) $ (2,942) $ (7,389) $ (11,465) Interest expense 1,918 1,626 1,312 2,418 4,674 Amortization of capitalized
Slide 39: Thank you
Offerpade move freely Thank you