SAN FRANCISCO, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (Nasdaq: OPEN), a leading e-commerce platform for residential real estate transactions, today reported financial results for its third quarter ended September 30, 2024. Opendoor's third quarter 2024 financial results and management commentary can be accessed through the Company's shareholder letter on the "Quarterly Reports” page of Opendoor's investor relations website at https://investor.opendoor.com/financials-filings/quarterly-reports.

"Opendoor's third quarter acquisition volumes, revenue, Contribution Profit, and Adjusted EBITDA all exceeded our guidance, notwithstanding persistent housing market headwinds. In August, many anticipated that interest rate cuts would bring buyers and sellers back to the market. However, mortgage rates remain stubbornly high and the housing market continues to be challenged by high delistings, low clearance, and strained affordability,” said Carrie Wheeler, CEO of Opendoor.

Wheeler continued, "We are focused on what we can control, operating our business as efficiently as possible, and streamlining our cost structure while managing risk. The combination of the actions we took in the second half of this year will result in annualized savings of approximately $85 million as we enter 2025. With a simplified organization and ongoing enhancements in our core products, we are well-positioned to rescale the business as conditions improve.”

Third Quarter 2024 Key Highlights

• Revenue of $1.4 billion, up 41% versus 3Q23 and down (9)% versus 2Q24; with 3,615 total homes sold, up 35% versus 3Q23 and down (11)% versus 2Q24
• Gross profit of $105 million, versus $96 million in 3Q23 and $129 million in 2Q24; Gross Margin of 7.6%, versus 9.8% in 3Q23 and 8.5% in 2Q24
• Net loss of $(78) million, versus $(106) million in 3Q23 and $(92) million in 2Q24
• Inventory balance of $2.1 billion, representing 6,288 homes, up 64% versus 3Q23 and down (4)% versus 2Q24
• Purchased 3,504 homes, up 12% versus 3Q23 and down (27)% versus 2Q24
• Ended the quarter with 1,006 homes under contract for purchase, down (39)% versus 3Q23 and down (44)% versus 2Q24

• Contribution Profit of $52 million, versus $43 million in 3Q23 and $95 million in 2Q24; Contribution Margin of 3.8%, versus 4.4% in 3Q23 and 6.3% in 2Q24
• Adjusted EBITDA of $(38) million, versus $(49) million in 3Q23 and $(5) million in 2Q24; Adjusted EBITDA Margin of (2.8)%, versus (5.0)% in 3Q23 and (0.3)% in 2Q24
• Adjusted Net Loss of $(70) million, versus $(75) million in 3Q23 and $(31) million in 2Q24

Fourth Quarter 2024 Financial Outlook

• 4Q24 revenue guidance of $925 million to $975 million
• 4Q24 Contribution Profit¹ guidance of $15 million to $25 million
• 4Q24 Adjusted EBITDA¹ guidance of $(70) million to $(60) million

Opendoor will host a conference call to discuss its financial results on November 7, 2024, at 2:00 p.m. Pacific Time. A live webcast of the call can be accessed from Opendoor's Investor Relations website at https://investor.opendoor.com. An archived version of the webcast will be available from the same website after the call.

About Opendoor

Opendoor is a leading e-commerce platform for residential real estate transactions whose mission is to power life's progress, one move at a time. Since 2014, Opendoor has provided people across the U.S. with a simple and certain way to sell and buy a home. Opendoor is a team of problem solvers, innovators, and operators who are leading the future of real estate. Opendoor currently operates in markets nationwide.

For more information, please visit www.opendoor.com

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking, including statements regarding the current and future health and stability of the real estate housing market and general economy; anticipated future results of operations and financial performance, including our fourth quarter 2024 and 2025 financial outlook; our ability to operate efficiently and proactively manage our cost structure in a challenging housing market; our ability to realize cost savings as a result of certain streamlining initiatives; the volatility of mortgage interest rates, changes in resale clearance rates and delistings; our product offerings and improvements; the health and status of our financial condition and whether we will be able to rescale when housing market conditions improve; whether efficiencies we have implemented across our platform will result in future benefits; our competitive positioning; and business strategy and plans, including plans to continue to invest in and enhance our products. These forward-looking statements generally are identified by the words "anticipate”, "believe”, "contemplate”, "continue”, "could”, "estimate”, "expect”, "forecast”, "future”, "guidance”, "intend”, "may”, "might”, "opportunity”, "outlook”, "plan”, "possible”, "potential”, "predict”, "project”, "should”, "strategy”, "strive”, "target”, "vision”, "will”, or "would”, any negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. The factors that could cause or contribute to actual future events to differ materially from the forward-looking statements in this press release include but are not limited to: the current and future health and stability of the economy, financial conditions and residential housing market, including any extended downturn or slowdown; changes in general economic and financial conditions (including federal monetary policy, interest rates, inflation, actual or anticipated recession, home price fluctuations, and housing inventory), as well as the probability of such changes occurring, that may impact demand for our products and services, lower our profitability or reduce our access to future financings; actual or anticipated fluctuations in our financial condition and results of operations; changes in projected operational and financial results; our real estate assets and increased competition in the U.S. residential real estate industry; our ability to operate and grow our core business products, including the ability to obtain sufficient financing and resell purchased homes; investment of resources to pursue strategies and develop new products and services that may not prove effective or that are not attractive to customers and/or partners or that do not allow us to compete successfully; our ability to acquire and resell homes profitably; our ability to grow market share in our existing markets or any new markets we may enter; our ability to manage our growth effectively; our ability to expeditiously sell and appropriately price our inventory; our ability to access sources of capital, including debt financing and securitization funding to finance our real estate inventories and other sources of capital to finance operations and growth; our ability to maintain and enhance our products and brand, and to attract customers; our ability to manage, develop and refine our digital platform, including our automated pricing and valuation technology; our ability to comply with multiple listing service rules and requirements to access and use listing data, and to maintain or establish relationships with listings and data providers; our ability to obtain or maintain licenses and permits to support our current and future business operations; acquisitions, strategic partnerships, joint ventures, capital-raising activities or other corporate transactions or commitments by us or our competitors; actual or anticipated changes in technology, products, markets or services by us or our competitors; our ability to protect our brand and intellectual property; our success in retaining or recruiting, or changes required in, our officers, key employees and/or directors; the impact of the regulatory environment within our industry and complexities with compliance related to such environment; any future impact of pandemics or epidemics, including any future resurgences of COVID-19 and its variants, or other public health crises on our ability to operate, demand for our products and services, or general economic conditions; changes in laws or government regulation affecting our business; and the impact of pending or future litigation or regulatory actions. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described under the caption "Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC”) on February 15, 2024, as updated by our periodic reports and other filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations.

Contact Information

Investors:

investors@opendoor.com

Media:

press@opendoor.com