Opendoor Technologies Inc., an e-commerce platform for residential real estate transactions, on Feb. 15 reported financial results for Q4 and full-year 2023. The numbers, like so many industry companies after the bruising year, were not good.
While the company earned $870 million in Q4 revenue, it was a 70% drop versus Q4 2022. A net loss of $91 million represented an improvement over the loss of $399 million a year earlier.
Opendoor sold 2,364 properties in Q4, down 69% year-over-year, and was also down 12% compared to the previous quarter.
“The past year was about focus, execution and progress,” said Carrie Wheeler, CEO of Opendoor. “Our fourth quarter results exceeded the high end of our prior guidance ranges, demonstrating our ability to deliver, despite ongoing uncertainty in the housing market.
“We increased our home acquisitions sequentially throughout the year, built a new book of inventory that is performing well, and drove structural efficiencies across our platform that we expect will benefit the company for years to come. Most importantly, we’ve remained steadfast in our vision of helping people move with simplicity and certainty.”
Opendoor stock closed at $3.35 Thursday, down 2.46%.
Full-year 2023 highlights include:
- Revenue of $6.9 billion, down 55% versus 2022; with 18,708 total homes sold, down 52% versus 2022
- Gross profit of $487 million versus $667 million in 2022; Gross margin of 7% versus 4.3% in 2022
- Net loss of $275 million versus $1.4 billion in 2022
- Purchased 11,246 homes versus 34,962 homes in 2022
Q4 2023 highlights include:
- Revenue of $870 million, down (70% versus Q4 2022 and down 11% versus Q3 2023; with 2,364 total homes sold, down 69% versus Q4 2022 and down 12% versus Q3 2023
- Gross profit of $72 million versus $71 million in Q4 2022 and $96 million in Q3 2023; Gross margin of 8.3% versus 2.5% in Q4 2022 and 9.8% in Q3 2023
- Net loss of $91 million versus $399 million in Q4 2022 and $106 million in Q3 2023
- Inventory balance of $1.8 billion, representing 5,326 homes, down 60% versus Q4 2022 and up 35% versus Q3 2023
- Purchased 3,683 homes, up 7% versus Q4 2022 and up 17% versus Q3 2023
- Ended the quarter with 2,114 homes under contract for purchase, up 109% versus Q4 2022 and up 27% versus Q3 2023
