Offerpad Solutions Inc

Good afternoon. Thank you for attending today's OfferPad Fourth Quarter 2024 Earnings Conference Call. My name is Jalynn. I'll be your moderator for today. All lines will be muted in the presentation portion of the call with an opportunity for questions and answers at the end. I'd now like to turn the conference over to our host, Courtney Reed. Courtney, you may proceed.

Good afternoon and welcome to OfferPad's Fourth Quarter 2024 Earnings Call. I'm joined today by OfferPeds Chairman and Chief Executive Officer Brian Baer and Chief Financial Officer Peter Knag. During the call today, management will make forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain and events could differ significantly from management's expectations. Please refer to the risks, uncertainties, and other factors relating to the company's business described in our filings with the U.S. Securities and Exchange Commission. Except as required by applicable law, OfferPad does not intend to update or alter forward-looking statements, whether as a result of new information, future events, or otherwise. On today's call, management will refer to certain non-GAAP financial measures. These metrics exclude certain items discussed in our earnings release under the heading non-GAAP financial measures. The reconciliations of OfferPad non-GAAP measures to the comparable GAAP measures are available in the financial tables of the fourth quarter earnings release on OfferPad's website. With that, I'll turn the call over to Brian.

Thank you, Courtney, and thank you all for joining today. In the fourth quarter, we exceeded the midpoint of our revenue guidance, driven by a well-balanced mix of offerings. Our cash offer program performed well alongside our asset light services, including the B2B renovate business, the direct plus buyer program, and the agent partnership program. This success came despite broader market challenges, like historically low residential resale volumes down almost 40% from the pandemic highs, affordability constraints, and shifting industry commission structures. Through these conditions, we remain focused on delivering real estate solutions for consumers and partners, while making meaningful progress towards building a sustainable long-term business. Some key highlights from the quarter include continued growth in the asset light services, which are becoming an increasingly important revenue stream. The expansion of our agent partnership program, driving agent engagement and increasing transaction volume while helping improve CAC by over 45% year over year. And improved operating efficiency, leading to cost savings and supporting contribution margins. These trends are positioned as well to achieve adjusted EBITDA profitability while ensuring financial sustainability across different market conditions. Our efforts remain centered on expanding high margin revenue streams optimizing operations, and managing resources effectively to support growth. Meanwhile, enhancements in our product and processes have increased efficiency and have us poised to quickly scale the business as the market recovers. Over the past two years, and specifically in recent quarters, returning to positive earnings and cash flow has been our key objective. Given the market's trajectory, we adjusted our approach by one, diversifying revenue beyond our core cash offer business, It creates stability across all market cycles. Two, refining acquisition strategies to ensure disciplined inventory management with strong return objectives. And finally, by optimizing our cost structure to leverage operational efficiencies and strengthen profitability. These strategic approaches have made OfferPad a more agile and efficient organization. By moderating acquisition volumes, we maintain a high-quality inventory portfolio while expanding our asset-light services. which have delivered stable contribution margins beyond our foundational business. As a result, we improved unit economics, reduced overhead costs, and positioned ourselves to scale profitably even in lower transaction volume environments. Looking ahead, we are strategically expanding our buy box criteria to capture increased market activity, focusing on acquiring high potential homes in specific areas. We are ramping towards 1,000 acquisitions per quarter optimizing our portfolio while improving margins. To further support our growth and maximize opportunities, we are actively exploring options to raise additional capital. This will enhance our financial flexibility, allowing us to scale acquisitions and other business line transactions as the market strengthens and to position ourselves for long-term success. As mentioned in the previous quarter, we've enhanced how we deliver offers and engage with sellers. This advancement is powered by OfferPad Citrus Value pricing technology, which leverages years of real estate data, market trends, and machine learning to generate offers. By analyzing hundreds of thousands of home price-related data points and real-time market conditions, Citrus Value enables us to provide customers with an estimated offer range within minutes and the ability to schedule a home inspection immediately. The momentum from our Q4 launch has continued into quarter one, increasing customer engagement and conversion rates. In January alone, we were in nearly 1,200 living rooms, an increase of almost 40% from our rollout in November. Supported by more effective advertising, we are seeing steady request volume and maintaining a strong 95% customer satisfaction score. This streamlined approach reduces touch points and gives sellers greater control over timing and decision making. Alongside these improvements, our agent partnership program continues to exceed expectations, further strengthening our acquisition strategy and lowering CAC. The pro tier, which allows agents to earn up to 4% on a successful acquisition in listings, has been a key driver of growth, leading to a 46% increase in quarterly requests year over year. As a result, acquisitions through the program now account for 45% of our total acquisitions. reinforcing its positive impact on our business. In addition, our B2B Renovate business remains a strong revenue driver, benefiting from our experienced teams and refined processes. Despite some Renovate partners operating at reduced levels, we delivered another strong quarter, completing 187 projects and generating over $4 million in revenue. For the full year, Offerpad Renovate generated $18 million in revenue, up 49% year over year. Peter Haslund, Notably, our average revenue per renovation increased from $11,000 over $22,000 reflecting our expanded service offerings and new plan onboarding as we scale, we continue to add partners of all sizes and types from institutional investors to local operators. Peter Haslund, Overall, we remain focused on their strategic priorities and are optimizing the business by diversifying our revenue mix and improving operational efficiency with that i'll turn the call over to Peter.