Ember Home Revenue, Valuation & Funding (2024)

Ember generated approximately $120,000 in revenue as of 2022, roughly ten months into operations. The business runs on two revenue streams: a one-time 12% uplift applied to the total cost basis of each home at the point of sale, and a recurring platform fee of $100 per share per month.

Ember had 100 families as paying customers at the time of the June 2022 interview, approximately ten months after launch. Avarell said most families were purchasing one share at the time, though he expected the addition of a financing option to encourage more buyers to purchase two shares, representing a quarter of a given home.

Pricing varies by property and geography. A one-eighth share in a Palm Springs home was listed at $224,560, implying a total home value of approximately $1.8 million. A one-eighth share in a Bend, Oregon property was priced at $409,000 to $419,000. Home prices in St. George, Utah range from $2 million to $3.5 million, while Newport Beach properties range from $4.5 million to $8 million. All shareholders pay a recurring platform fee of $100 per share per month regardless of geography.

Ember also offered a financing option for share purchases through a bank partnership. Avarell noted that the interest rate on financed shares in Newport Beach homes was 4% at the time, which he described as lower than a conventional mortgage rate in the prevailing rate environment. During the first year of ownership, shareholders can trade their share for a different Ember property without paying a real estate commission. After the first year, a standard 3% real estate agent commission applies to any sale.

Ember makes money through two mechanisms. The first is a one-time 12% uplift on the total cost basis of each home, which includes the purchase price plus furnishings. Avarell said furnishings for a Newport Beach home run $250,000 to $300,000 and cover closing costs, appliances, window treatments, and recreational equipment. The 12% rate has been in place since the company launched and has not changed. The second mechanism is a $100 per share per month recurring platform fee that covers LLC management, app-based scheduling, and property management services.

Avarell described the company as operating close to breakeven, with the vast majority of cash on the balance sheet deployed toward inventory acquisition rather than operating expenses. He said the company had not burned significant cash in its first ten months. Profitability on a GAAP basis was not explicitly confirmed.

The inventory model works as follows: Ember purchases a home outright using a combination of equity and debt, furnishes it, and then sells shares to buyers. Active inventory on the site at the time of the interview was approximately $15 million, representing homes purchased and available for sale. Total GMV turned over in the first ten months was described as tens of millions of dollars. The debt facility of $20 million to $30 million is structured as acquisition financing that is retired once all shares in a property are sold. Gross margin, churn, LTV, CAC, and burn rate were not discussed in the interview.

One-eighth ownership of a home entitles the buyer to six weeks of use per year, which Avarell noted aligns closely with the actual usage pattern of typical second-home owners, who he said use their homes six to eight weeks per year despite often expecting to use them far more.

Ember had just under 30 employees at the time of the June 2022 interview, approximately ten months after the company began operations. Of those, roughly five were on the engineering team. The remaining headcount covered real estate acquisition, sales, property management, and operations. Team composition beyond engineering and total headcount was not discussed in detail.