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Mar 31, 2021
Dream Finders Homes Q1 2021 Earnings Report
Dream Finders Homes reported record earnings for Q1 2021, driven by significant growth in home deliveries and net new orders.
Key Takeaways
Dream Finders Homes announced a strong first quarter in 2021, marked by a 95% increase in homes delivered and a 137% increase in net new orders. Net income rose by 145.0% compared to the same period last year, driven by an 82.2% increase in home sales revenues and a 210 basis points increase in the gross margin percentage.
Total revenues increased by 82.0% to $343.6 million compared to Q1 2020.
Home closings increased by 94.6% to 1,002 homes.
Net new orders surged by 137.0% to a record 2,010 homes.
The cancellation rate decreased by 370 basis points to 8.1%.
Revenue by Segment
Forward Guidance
Dream Finders Homes maintains its guidance of 5,000 to 6,000 home closings for the full year 2021 and expects an increase in the average sales price of homes closed in future quarters, as the average sales price in backlog as of March 31, 2021 was $375,526.
Positive Outlook
- Consistent level of elevated sales per community.
- Strong backlog.
- Low interest rate environment.
- Persistent relocation patterns into its core markets.
- Increase in the average sales price of homes closed in future quarters.
Challenges Ahead
- Challenges created by input costs inflation.
- Supply chain constraints.
- General economic conditions, including interest rates and mortgage availability, in 2021 remain similar to those experienced in the first quarter of 2021.
- Construction costs and overall absorption rates in the remainder of 2021 are consistent with the Company’s recent experience.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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