Opendoor Technologies Reports 41% Revenue Growth in Q3, Net Loss Widens in 9-Month Period

Opendoor Technologies Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved revenue of $1,377 million for the three months ended September 30, 2024, marking a 41% increase from $980 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenue decreased to $4,069 million, down 33% from $6,076 million in the prior year, primarily due to lower sales volumes.

Gross profit for the third quarter rose to $105 million, up from $96 million year-over-year, while gross margin decreased from 9.8% to 7.6%. For the nine-month period, gross profit fell to $348 million from $415 million, but gross margin improved from 6.8% to 8.6%. The company reported a net loss of $(78) million for the third quarter, an improvement from $(106) million in the same quarter of 2023. However, the net loss for the nine months increased to $(279) million from $(184) million year-over-year.

Opendoor's operational metrics showed a notable increase in homes sold during the third quarter, with 3,615 homes sold compared to 2,687 in the same period last year. The company also purchased 3,504 homes in the third quarter, up from 3,136 in 2023. Despite these gains, the total number of homes sold for the nine months decreased to 10,771 from 16,344 in the previous year.

The company’s cash and cash equivalents decreased to $829 million as of September 30, 2024, down from $999 million at the end of 2023. Total assets also declined to $3,411 million from $3,567 million, while total liabilities slightly increased to $2,610 million. The accumulated deficit grew to $(3,612) million from $(3,333) million.

Strategically, Opendoor has focused on enhancing market penetration in existing markets and has entered partnerships with Zillow and eXp Realty to improve brand awareness and facilitate cash offers for home sellers. The company also underwent workforce reductions, impacting approximately 680 employees in 2023, and announced an additional reduction of about 300 employees in November 2024 to streamline operations and prioritize growth initiatives.

In terms of financing, Opendoor reported total outstanding balances on asset-backed debt of $2.1 billion, with a significant portion at fixed rates. The company maintains a committed borrowing capacity of $4.9 billion under its asset-backed debt facilities, providing flexibility for future operations.