Offerpad Solutions Inc. · NYSE:OPAD
Offerpad Solutions — Supernova Partners Acquisition Company — SPAC Merger (August 2021)
39 slides from Offerpad Solutions's SPAC merger presentation, Aug 10, 2021
Slide 1: Investor Presentation August 2021
Investor Presentation August 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.
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 $1.9T Real Estate opportunity today 99% analog ~1% Digital penetration $600B3 Restaurant opportunity today ~5% Digital penetration6 ~$350B1 Prescription meds opportunity today ~6% Digital pen
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 addressable market Robust business model Competitive differentiation Attractive growth profile Proven management team Fundamental value with significant upside 6 1 2
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 Externally Internally 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 numbers as of 2019 (1) Houses in the US in the price range of $0 - $750k (2) Houses in the US in the price range of $0 - $500k (3) Estimate per National Association of Realtors Data; (4) Offerpad Estimates per MLS (Multiple listing serv
Slide 9: Our differentiated approach
Our differentiated approach Sell to Offerpad Cash offer within 24hrs, no showings, choose your closing date Free list-ready home services Personalized listing service including free maintenance, renovation advances, and concierge coordinator Buy with Offerpad Customizable buying process, access to l
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 Visi
Slide 11: Our customers are our best reference
Our customers are our best reference 9 out of 10 Recommend to a Friend 1 81 Net Promoter Score (NPS) 1 95% Customer Satisfaction Rating 1 (1) Q1’21 Survey of over 540 respondents of customers who sold their home to Offerpad
Slide 12: Operational expertise that maximizes value
Operational expertise that maximizes value 15K+ renovations completed since inception, $15K average renovation during 2020 Helix GO Field Automation Q1 ‘18 Q1 ‘19 Q1 ‘20 Best-in-Class Renovations Labor and material tracking Work-order dispatch & management Live inspections / progress reporting Workf
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
Slide 14: Offerpad by the numbers
Offerpad by the numbers 900+ Cities and towns 16 Markets 1 15,000+ Renovations to date $7.5bn+ Transactions to date2 $1.4bn Revenue in 2021E Positive contribution margins per home since 2016 95% customer satisfaction3 81 Net promote score (NPS)3 9 out of 10 recommend to a friend 3 (1) 2 of the 16 ma
Slide 15: Highly attractive unit economics
Highly attractive unit economics TTM as of Q1’21 contribution margin per home after interest $28K $(2K) $(9K) $16K $13K $1K Total contribution margin after interest Net sale proceeds Holding costs Selling costs Contribution margin after interest Contribution margin Express Other services $14K
Slide 16: We have achieved rapid growth and scale
We have achieved rapid growth and scale Significant scale with <$200M equity capital raised to date Total markets at year end Homes acquired Homes sold Total revenue ($B) +84% CAGR (1) Negatively impacted growth due to COVID-19 pandemic 1 1 1
Slide 17: Q1'21 Financial and Operational Highlights
Q1’21 Financial and Operational Highlights $284M Revenue +27.2% QoQ 1,196 Homes Acquired +16% QoQ 1,018 Homes Sold +15% Avg. Rev per Unit YoY ($0.2M) Net Loss +$11.2M YoY $3.0M Adj EBITDA Second consecutive positive quarter $23.1k Contribution Margin after Interest per Home Sold +349% YoY Milestones
Slide 18: Improving KPIs Post-COVID-19
Improving KPIs Post-COVID-19 Revenue ($M) Homes Acquired & Homes Sold Acquired Sold Net Loss & Adj. EBITDA ($M) Contribution Profit after Interest Per Home Sold ($K) Net Loss Adj EBITDA
Slide 19: Our growth plans and path towards profitability
Our growth plans and path towards profitability 3.6% 3.7% 4.0% 4.3% Revenue ($B) Contribution Margin After Interest ($M) Cont. Margin After Int. +55% CAGR +64% CAGR Gross Profit ($M) 8.2% 8.4% 8.7% 8.9% Gross Margin +59% CAGR
Slide 20: Significant untapped growth potential
Significant untapped growth potential (1) 14 as of EOY 2020; (2) Projected 2021 figures; (3) On average, reflects annual, run-rate revenue opportunity in 48 markets at 4% market share; based on 2019 median sales prices and number of transactions in markets; (4) On average, reflects annual, run-rate
Slide 21: Contribution margin uplift opportunity
Contribution margin uplift opportunity $23 billion2 Broader run-rate revenue We are in early innings in our growth story Looking ahead $8 billion+1 Run-rate revenue 3-4% Market share (0.8% as of Q1’21) 48 Markets by 2023 (163 today) ~50% Gross margin 1:2+ Express / Flex long-term mix Strong Attach r
Slide 22: Founder-led & experienced team across real estate and tech
Founder-led & experienced team across real estate and tech Vaughn Bair Chief Real Estate Officer Casey Bair Chief Acquisition Officer Gint Grabauskas Chief Technology Officer Heather Baily Chief Human Resources Officer Jaidip Singh Chief Data & Analytics Officer David Connelly Chief Growth Officer B
Slide 23: Transaction overview
Transaction overview
Slide 24: Overview of Supernova Partners Acquisition Company
Overview of Supernova Partners Acquisition Company Supernova Partners Acquisition Company, Inc. ("Supernova"), a publicly traded company (NYSE: SPNV) raised $402.5 million at IPO in October 2020 Diverse management team and board with deep sector expertise and decades of operational, investment and a
Slide 25: Transaction summary
Transaction summary ($ Millions) Transaction highlights Pro Forma Enterprise Value of $2.4B based on 1.0x 2022E Revenue of $2.4B Existing Offerpad equity holders will roll 100% of their equity and will own 67% of the pro forma company Founder Brian Bair will receive high vote stock for approximately
Slide 26: Appendix
Appendix
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 more to buy or sell a home Lacks transparency, multiple counterparties, time-consuming, stressful, uncertain Traditional 24 hrs for sellers to receive certainty and move on their own schedule vs. Broke
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 submitted o
Slide 29: Local expertise supercharges our proprietary technology
Local expertise supercharges our proprietary technology Offer request Data collection 500+ data points per home from 14 sources Automated verification, valuation & renovation modeling 120K+ Property valuations per year Real estate expert review & communications CRM 10 min Median time spent per asset
Slide 30: Attractive conversion metrics with significant continued upside
Attractive conversion metrics with significant continued upside 20+% Organic 10-15k Requests per month 99% Acquisitions sourced via Offerpad Platform Attractive top of funnel acquisition Limited competition Strong conversion with significant upside 16(1) Markets $3K Blended CAC of seller 77% of sell
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 Q1’21 12% 8% 8% 8% 7% 10% 11% 7% 7% 8% 7% 6% 8% (1) Represents markets with a minimum of 40 homes sold in 2020
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 0.0; 0,5 0.5; 1.0 1.0; 1.5 1.5; 2.0 2.0; 2.5 2.5; 3.0 3.0; 3.5 3.5; 4.0 4.0; 4.5 4.5; 5.0 5.0; 5.5 5.5; 6.0 6.0; 6.5 6.5; 7.0 7.0; 7.5 7.5; 8.0
Slide 33: Our current and planned footprint
Our current and planned footprint Potential new markets 2021-2023 Existing market Market Strategy % of Total US Transactions Covered by Active Markets Geographic Diversification High Population Growth Cities Affordable Median Sales Price Increasing Employment Characteristics Single Family Rental Buy
Slide 34: Ancillary services opportunities
Ancillary services opportunities Ancillary services Title Mortgage Energy efficiency Smart home Insurance Home warranty Offerpad Flex Remodel services Today Core transaction services focused on maximizing organic conversion rate Mid-Term Additional transaction services and entry into home personaliz
Slide 35: Summary of our warehouse financing agreements
Summary of our warehouse financing agreements Senior secured facility 1 (Libor + 4.0%) $225 $103 Senior secured facility 2 (Libor + 2.5%) 225 75 Mezzanine (13.0%)1 68 22 Total $518 $200 Loan to cost: Property debt / inventory 7.5% 7.5% 7.5% L+5.25% L+4.0% Greater advance rates and improving terms ha
Slide 36: Summary financials
Summary financials 2020 2021E 2022E 2023E Homes Sold 4,281 5,612 9,593 14,987 % YoY Growth (9%) 31% 71% 56% Total Revenue ($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: Offerpad – move freely – Thank you
Offerpade move freely Thank you
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