SAN FRANCISCO, Aug. 01, 2024 — Opendoor Technologies Inc. (Nasdaq: OPEN), a leading e-commerce platform for residential real estate transactions, today reported financial results for its second quarter ended June 30, 2024. Opendoor’s second 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.
“We are proud of our second quarter performance and the progress we’ve made in building a platform where all customers can begin their home selling journey. Revenue, Contribution Margin, and Adjusted EBITDA exceeded the high end of our guidance, and our acquisitions outperformed expectations, growing nearly 80% year-over-year. We continue to make meaningful progress increasing brand awareness, delivering industry-leading seller NPS, expanding our product offerings, and driving structural efficiencies across our platform that we expect will benefit the Company for years to come,” said Carrie Wheeler, CEO of Opendoor.
Wheeler continued, “During the back half of the second quarter, we began responding to signals that indicated additional slowing in the housing market. We are making decisions that appropriately balance growth, margin, and risk in what continues to be a challenging environment. While the housing cycle will eventually recover, the improvements we are making in the business are enduring. We continue to expect to make meaningful progress in both increasing acquisitions and reducing Adjusted Net Losses this year, as compared to 2023.”
Second Quarter 2024 Key Highlights
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Revenue of $1.5 billion, down (24)% versus 2Q23 and up 28% versus 1Q24; with 4,078 total homes sold, down (24)% versus 2Q23 and up 32% versus 1Q24
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Gross profit of $129 million, versus $149 million in 2Q23 and $114 million in 1Q24; Gross Margin of 8.5%, versus 7.5% in 2Q23 and 9.7% in 1Q24
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Net (loss) income of $(92) million, versus $23 million in 2Q23 and $(109) million in 1Q24
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Inventory balance of $2.2 billion, representing 6,399 homes, up 94% versus 2Q23 and up 19% versus 1Q24
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Purchased 4,771 homes, up 78% versus 2Q23 and up 38% versus 1Q24
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Ended the quarter with 1,793 homes under contract for purchase, up 29% versus 2Q23 and down (31)% versus 1Q24
Non-GAAP Key Highlights*
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Contribution Profit (Loss) of $95 million, versus $(90) million in 2Q23 and $57 million in 1Q24; Contribution Margin of 6.3%, versus (4.6)% in 2Q23 and 4.8% in 1Q24
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Adjusted EBITDA of $(5) million, versus $(168) million in 2Q23 and $(50) million in 1Q24; Adjusted EBITDA Margin of (0.3)%, versus (8.5)% in 2Q23 and (4.2)% in 1Q24
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Adjusted Net Loss of $(31) million, versus $(197) million in 2Q23 and $(80) million in 1Q24
*See “—Use of Non-GAAP Financial Measures” below for further details and a reconciliation of such non-GAAP measures to their nearest comparable GAAP measures.
Third Quarter 2024 Financial Outlook
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3Q24 revenue guidance of $1.2 billion to $1.3 billion
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3Q24 Contribution Profit1 guidance of $35 million to $45 million
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3Q24 Adjusted EBITDA1 guidance of $(70) million to $(60) million
Conference Call and Webcast Details
Opendoor will host a conference call to discuss its financial results on August 1, 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’s 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 buy and sell a home. Opendoor currently operates in markets nationwide.