Slide 1: Investor Presentation Q4 2023 Update
INVESTOR PRESENTATION Q4 2023 UPDATE 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: Deliver the Best Home Buying and Selling Experience
DELIVER THE BEST HOME BUYING AND SELLING EXPERIENCE 3
Slide 4: Agenda
01 REAL ESTATE IS CHANGING 02 OFFERPAD’S MARKET APPROACH 03 OFFERPAD’S GROWTH DRIVERS 04 BUSINESS MODEL POSITIONED TO PERFORM 05 APPENDIX 4
Slide 5: 01 Real Estate Is Changing
01 REAL ESTATE IS CHANGING Offerpada
Slide 6: Massive and evolving market presents substantial opportunity
Massive and evolving market presents substantial opportunity 1 $1.9T Real Estate opportunity today 99% analog ~1% Digital penetration 2 MARKET OPPORTUNITY 3 $1.0T $1.3B “BUY BOX” TODAY 2023 REVENUE 1 2023: US Census & National Association of Realtors 2 Company Estimates 3 2023: Houses in the US in t
Slide 7: Offerpad is transforming the industry by simplifying the transaction
Offerpad is transforming the industry by simplifying the transaction As long as 6 months or more to buy or sell a home. Closing 30+ days & 10+ showings can take $1000’s of list 30+ days 30-45 30+ Days days in escrow 6+ ready repairs on market months TRADITIONAL Broker search Prepare listing & Showin
Slide 8: Offerpad's industry impact is growing
THE INDUSTRY Offerpad’s industry impact is growing THE OFFERPAD DISRUPTOR DIFFERENTIAL Nearly 78,000 real estate transactions since inception1 ~35,000 homes sold since inception Lifetime Aggregate Revenue of over $10.7B >300,000+ visits to offerpad.com2 1 As of Q4 2023 2 Average/month based on inter
Slide 9: 02 Offerpad's Market Approach
02 OFFERPAD’S MARKET APPROACH 9
Slide 10: Strong customer value proposition supports growth potential
Strong customer value proposition supports growth potential CONVENIENCE | CERTAINTY | CONTROL CASH OFFER LISTING SERVICE ANCILLARY SERVICES For those who want to sell on their own For those who want to buy or list with Offering personalized solutions to meet each schedule with more convenience, guid
Slide 11: Our customers are our best reference
Our customers are our best reference +64 “The entire process was very simple, things NET PROMOTER SCORE* went at MY pace” 9 OUT OF 10 WOULD RECOMMEND TO A FRIEND* Kristopher in Texas “Offerpad experience was nothing short of amazing!” 91 % “My experience with Offerpad exceeded my expectations.” CUST
Slide 12: Sophisticated renovation operation expands market opportunities
Sophisticated renovation operation expands market opportunities AVERAGE COST AVERAGE DAYS $22,000 23 Renovations completed in Q4 2023 Number of days per project in Q4 2023 UTILIZE IN-HOUSE TALENT AND VETTED EXTERNAL SPECIALISTS TO INCREASE QUALITY AND CONTROL 33,000+ home renovations completed since
Slide 13: 03 Offerpad's Growth Drivers
03 OFFERPAD’S GROWTH DRIVERS 13
Slide 14: 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 business to business services • Direct+: connecting institutional buyers with sellers • Renovate: Renovation as
Slide 15: Responsible market expansion mitigates risk through geographic diversification
Responsible market expansion mitigates risk through geographic diversification Market Strategy 25 markets/1,700+ cities & towns nationwide • Geographical diversity • Historical transactions (quantity & composition) • Housing affordability • Housing supply and demand • Population and employment growt
Slide 16: 2024 product priorities move towards solutions for all customers
2024 product priorities moves towards providing solutions for all customers Product expansion changes the capital intensity of our model Cash Offer Direct + Matches institutional buyers with sellers – Company’s core product segment, providing customer receives the same Offerpad experience customers
Slide 17: Numerous product innovation opportunities
Numerous product innovation opportunities Product Expansion Roadmap CURRENT PRODUCT OFFERINGS Cash Offer, Listing Service, Mortgage, Title, Renovations, Direct +, Bundle Rewards POTENTIAL NEAR-TERM PRODUCT OFFERINGS Home Warranty, Insurance POTENTIAL LONG-TERM PRODUCT OFFERINGS Smart Home, Energy Ef
Slide 18: 04 Business Model Positioned to Perform
04 BUSINESS MODEL POSITIONED TO PERFORM 18
Slide 19: 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) Public listing Market expansion Platform buildout and 2023 Mar 2019 Q1 2022 operational expertise Raised $75M in Launched home Asset Light grew to 43% of tota
Slide 20: Improving profitability after abrupt market shift in 2022
Improving profitability after abrupt market shift in 2022 Revenue ($M) Gross Profit ($M) & Margin % $30 $22 $24 12.0% $677 $17 10.0% $20 $610 9.7% 10.2% $10 $7 6.9% 8.0% 6.0% $0 4.0% 1.2% -$10 2.0% 0.0% $230 $234 $240 -$20 -2.0% -$30 -4.0% -$40 -6.6% -6.0% -$50 -$45 -8.0% Q4'22 Q1'23 Q2'23 Q3'23 Q4'
Slide 21: 2H'23 Total Contribution Margin After Interest Per Home Sold
2H’23 Total Contribution Margin After Interest Per Home Sold $30k ($3k) $7k $19k $17k ($10k) $6k $12k Contribution Margin Total Contribution Net Sale Proceeds Holding Costs Selling Costs Contribution Margin Other Services After Interest Margin After Interest 21
Slide 22: 4Q 2023 Results
4Q 2023 Results Revenue $240.5M 3% Q3 2023 Homes Acquired 678 (27%) Q3 2023 2023 HIGHLIGHTS 1% • 4 consecutive quarters of Net Income Homes Sold 712 Q3 2023 and Adj EBITDA improvement • Grew Asset Light transactions to 43% Net Income (loss) ($15.4M) ($121.1M) to total, up from 24% in 2022 Q4 2022 •
Slide 23: First Quarter 2024 outlook
First Quarter 2024 outlook HOMES SOLD 750 – 850 REVENUE $245M – $285M ADJUSTED EBITDA1 ($10)M – ($2.5)M 1 See Non-GAAP financial measures on slide 2 for an explanation of why a reconciliation of this guidance cannot be provided. 23
Slide 24: 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 algor
Slide 25: 05 Appendix
05 APPENDIX 25
Slide 26: 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 received Home acquired Home listed Home sold Verifies data Offer Contract Diligence Final walk Home marketed Renovation Listing Offerpad’s & evaluates delivered signed with Hom
Slide 27: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Three Months Ended (in thousands, except percentages and homes sold, unaudited) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Gross profit (loss) $16,692 $23,973 $22,231 $7,285 $ (44,860) Gross margin 6.9% 10.2% 9.7% 1.2% -6.6% Homes sol
Slide 28: Non-GAAP Reconciliations Cont.
NON-GAAP RECONCILIATIONS CONT. Three Months Ended (in thousands, except percentages, unaudited) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net loss (GAAP) $ (15,441) $ (19,986) $ (22,344) $ (59,447) $ (121,137) Change in fair value of warrant liabilities 109
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