Slide 1: Investor Presentation Q2 2024 Update
INVESTOR PRESENTATION Q2 2024 UPDATE NYSE : OPAD 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Certain statements in this Presentation 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 Solutions Inc.’s (the “Compa
Slide 3: Our Mission
OUR MISSION Provide your best way to buy and sell a home. Period. 3
Slide 4: Software-enabled real estate platform
Software-enabled real estate platform $11b+ Lifetime Revenue Cash Offer Strong Cash Offer Pick Your Closing Day For those who want to sell on their Sell Without Listing Free Local Move 81k+ own schedule with more convenience, No Showings 3-Day Extended Stay Lifetime real estate transactions certaint
Slide 5: Years of platform investment positions us for future growth
Years of platform investment positions us for future growth as the residential market rebounds CUMULATIVE VALUE OF HOMES SOLD SINCE 2015 ($M) Real Estate as a Service Market expansion 2023 MAR 2019 Asset Light Raised $75M in Q1 2022 grew to 43% of Platform buildout & Series C financing JUN 2020 Laun
Slide 6: Massive and evolving market presents substantial opportunity
Massive and evolving market presents substantial opportunity REAL ESTATE OPPORTUNITY TODAY $1.9t 1 99% non-digital / ~1% digital penetration 2 MARKET OPPORTUNITY $1.0t 3 “Buy Box” today 4 $450m 2024E renovation market 1. 2023: US Census & National Association of Realtors 2. Company Estimates 3. 2023
Slide 7: A simple, tech-enabled solution for our customers
A simple, tech-enabled solution for our customers Request a cash offer Access vacant Offerpad 3-minute request form homes via mobile app and offer will be delivered Visit Offerpad homes on your own time in within 24 hours a safe, socially distant manner Search Offerpad & non- Offerpad homes online C
Slide 8: Local expertise supercharges our proprietary technology
Local expertise supercharges our proprietary technology, driving enhanced unit economics Advantaged combination of machine evaluation & human review Proprietary Hi Lisa! Here’s your purchase offer: Robust data $331,354 sources View offer Public Private record Automated verification, Real estate Offe
Slide 9: Our expanding product ecosystem provides integrated opportunities
Our expanding product ecosystem provides integrated opportunities across multiple solutions → Driving Volume & Opportunity → High Margin Service Fee Business • Consumer brand awareness • Optimize conversion—allows for potential • Solution for Partner+ engagement of higher offers and expanded buy-box
Slide 10: Offerpad is your partner in home ownership
Offerpad is your partner in home ownership → Our agile and adaptable product suite meets both our retail and business customers right where they’re at Requests Underwriting and Offerpad purchases Offerpad renovated Customer offer offer delivered home & lists home for purchases from sale Offerpad Fra
Slide 11: Customer experience → Cash offer
Customer experience → Cash offer TRADITIONAL vs OFFERPAD Offerpad made selling my home so easy 30+ 24hrs and stress free. From the initial beginning BROKER SEARCH to receive to the end of the transaction it was stress days cash offer free. They were fair, honest and extremely trustworthy. Know that
Slide 12: Leveraging renovation excellence
Leveraging renovation excellence CORE BUSINESS MODEL SINCE 2015 STAND-ALONE RENOVATION SERVICES SINCE 2023 • Buy, renovate, and sell homes • Built a sophisticated renovation operation in response to client demand that leverages existing teams and technology • Deliver efficient, high-quality renovati
Slide 13: Robust and growing partner ecosystem
Robust and growing partner ecosystem CASH OFFER RENOVATE PARTNER ECOSYSTEM % OF TOTAL REQUESTS 27% • Online web portals • SFR operators 23% • Brokerages (national to local) • Fix & Flippers • Homebuilders • Government affiliates (national to local) 16% 14% 13% 12% DIRECT+ PARTNER+ 6% • SFR operators
Slide 14: Controlling our own destiny
Controlling our own destiny Offerpad Initiatives Focusing on asset light businesses • Offerpad Renovate → Third-party renovation services Industry Challenges • Direct+ → Direct sales to institutional buyers • Offerpad Max → Listing Services to monetize out of buy-box leads Reorganize to Optimize Hig
Slide 15: Growth plan includes multiple profit expansion touch points
Growth plan includes multiple profit expansion touch points Market penetration in existing markets • Long-term goal to drive total market share to 3-4%, from current less than 1% Expanding B2B services • Direct+ → connecting institutional buyers with sellers • Renovate → Renovation as a service for
Slide 16: Long-term vision → Real Estate as a Service
Long-term vision → Real Estate as a Service 1.0 2.0 3.0 Provide maximum certainty Provide a solution for Offerpad: when selling a home every unique customer A lifelong partner in homeownership Cash Offer Financing Offerpad Max Mortgage Smart home Home services — — listing services — — — Offercomp un
Slide 17: Improving profitability after abrupt market shift in 2022
Improving profitability after abrupt market shift in 2022 REVENUE ($M) GROSS PROFIT ($M) & MARGIN % $285 $30 20.0% $240 $251 $230 $234 $24 18.0% $25 $22 $23 $22 16.0% 14.0% $20 $17 12.0% $15 9.7% 10.2% 10.0% 7.9% 8.7% 8.0% $10 6.9% 6.0% 4.0% $5 2.0% $0 0.0% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23
Slide 18: Contribution margins continue to grow and diversify
Contribution margins continue to grow and diversify through evolving product mix Q2’24 TOTAL CONTRIBUTION MARGIN AFTER INTEREST PER HOME SOLD $33k ($3k) ($11k) $19k $3k $14k $11k Holding Selling Contribution Contribution Margin Other Total Contribution Net Sales Proceeds Costs Costs Margin After Int
Slide 19: Market level contribution continues to expand
Market level contribution continues to expand Q2’24 CONTRIBUTION MARGIN AFTER INTEREST 1 8% 6% 5% 5% 5% 5% 4% 4% 4% 2% 2% 2% 2% 2% 2% Market A Market B Market C Market D Market E Market F Market G Market H Market I Market J Market K Market L Market M Market N Total Company 1. Represents markets with
Slide 20: Q2 2024 Results
Q2 2024 Results REVENUE $251.1m 9% YoY HOMES ACQUIRED 831 3% Q2 2024 QoQ HIGHLIGHTS HOMES SOLD 742 14% • 8.7% Gross Margin, up 80bps YoY from 7.9% in Q1’24 • Requests from Agent NET INCOME (LOSS) ($13.8m) 38% Partnership Program grew to YoY 25% of total, driving most efficient CAC since Q2’22 ADJ. E
Slide 21: Q3 2024 Outlook
Q3 2024 Outlook HOMES SOLD 550 to 650 REVENUE $185m to $225m ADJ. EBITDA1 Sequential Improvement 1. See Non-GAAP financial measures on slide 2 for an explanation of why a reconciliation of this guidance cannot be provided. 21
Slide 22: Offerpad investment highlights
Offerpad investment highlights LARGE ADDRESSABLE MARKET Offerpad operates in the residential real estate industry with a Total Addressable Market of $1.9T. FOCUSED BUSINESS MODEL Offerpad is focused on responsible, long-term growth powered by our real estate expertise and advanced, proprietary techn
Slide 23: Appendix
APPENDIX Offerpade
Slide 24: The lifecycle of a home with Offerpad
The lifecycle of a home with Offerpad DISPOSITION ACQUISITION RENOVATION ON MARKET IN ESCROW 45 days 30 days Seller request Home Home listed Home sold received acquired Verifies data & Offer Contract Homes Diligence Inspection Project Renovation Final walk Listing Home Offerpad’s evaluates delivered
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended (in thousands, except percentages and homes sold, unaudited) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Gross profit $21,871 $22,595 $16,692 $23,973 $22,231 Gross margin 8.7% 7.9% 6.9% 10.2% 9.7% Homes sold 742 847 712
Slide 26: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Three Months Ended (in thousands, except percentages, unaudited) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Net loss (GAAP) $(13,782) $(17,515) $(15,441) $(19,986) $(22,344) Change in fair value of warrant liabilities 9 (344) 109
Slide 27: investor.offerpad.com
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