Opendoor Broadcasts First Quarter of 2023 Monetary Outcomes

SAN FRANCISCO, Might 04, 2023 (GLOBE NEWSWIRE) — Opendoor Applied sciences Inc. (Nasdaq: OPEN), a number one e-commerce platform for residential actual property transactions, at this time reported monetary outcomes for its quarter ended March 31, 2023. Opendoor’s first quarter of 2023 monetary outcomes and administration commentary could be accessed by way of the Firm’s shareholder letter on the “Quarterly Stories” web page of Opendoor’s investor relations web site at https://investor.opendoor.com.

“At Opendoor, our imaginative and prescient is to construct essentially the most trusted e-commerce platform for residential actual property. We’ve got devoted the final 9 years to delivering on this imaginative and prescient and we stand alone in giving prospects the flexibility to maneuver with simplicity and certainty,” stated Carrie Wheeler, CEO of Opendoor.

Wheeler continued, “Our Q1 outcomes show our progress in navigating the housing market transition in opposition to an unsure macro backdrop. We exceeded our sell-through expectations for our longest-held properties and continued to construct a brand new guide of stock with sturdy margin efficiency. We additionally took additional actions to right-size our price construction. As we glance forward, we’re targeted on attracting extra sellers, together with by way of the growth of our partnership channels and product diversification, and driving operational excellence to enhance our long-term profitability.”

First Quarter 2023 Key Highlights

Income of $3.1 billion, down (39)% versus 1Q22; with 8,274 complete properties bought, down (35)% versus 1Q22
Gross revenue of $170 million, which displays a listing valuation adjustment on properties remaining in stock at quarter finish of $23 million; Gross Margin of 5.4%, versus 10.4% in 1Q22
Internet (loss) earnings of $(101) million, versus $28 million in 1Q22
Adjusted Internet (Loss) earnings of $(409) million, versus $99 million in 1Q22
Contribution (Loss) Revenue of $(241) million, versus $332 million in 1Q22; Contribution Margin of (7.7)%, versus 6.4% in 1Q22
Adjusted EBITDA of $(341) million, versus $176 million in 1Q22; Adjusted EBITDA Margin of (10.9)%, versus 3.4% in 1Q22
Stock steadiness of $2.1 billion, representing 6,261 properties, down (55)% versus 1Q22
Bought 1,747 properties, down (81)% versus 1Q22
Ended the quarter with 1,137 properties underneath contract for buy, down (86)% versus 1Q22

2023 Monetary Outlook

2Q23 income steerage of $1.75 billion to $1.85 billion
2Q23 Adjusted EBITDA¹ steerage of $(180) million to $(200) million

Convention Name and Webcast Particulars

Opendoor will host a convention name to debate its monetary outcomes on Might 4, 2023, at 2:00 p.m. Pacific Time. A reside webcast of the decision could be accessed from Opendoor’s Investor Relations web site at https://investor.opendoor.com. An archived model of the webcast can be accessible from the identical web site after the decision.

About Opendoor

Opendoor’s mission is to energy life’s progress, one transfer at a time. Since 2014, Opendoor has supplied folks throughout the U.S. with a easy means to purchase and promote a house. Opendoor at present operates in a rising variety of markets nationwide.

For extra info, please go to www.opendoor.com

Ahead Wanting Statements

This press launch accommodates sure forward-looking statements inside the that means of Part 27A the Personal Securities Litigation Reform Act of 1995, as amended. All statements contained on this press launch that don’t relate to issues of historic reality needs to be thought-about forward-looking, together with statements relating to the well being of our monetary situation; anticipated future outcomes of operations and monetary efficiency; priorities of the Firm to attain future targets; the Firm’s capability to proceed to successfully navigate the markets through which it operates; anticipated future and ongoing impacts of our acquisitions and different enterprise selections; well being of our steadiness sheet to climate ongoing market transitions; the Firm’s capability to undertake an efficient method to handle financial and business danger, in addition to stock well being; enterprise technique and plans, together with any plans to increase into further markets, market alternative and growth and goals of administration for future operations, together with our statements relating to the advantages and timing of the roll out of recent markets, merchandise or expertise; and the anticipated diversification of funding sources. These forward-looking statements usually are recognized by the phrases “anticipate”, “imagine”, “ponder”, “proceed”, “might”, “estimate”, “anticipate”, “forecast”, “future”, “steerage”, “intend”, “could”, “would possibly”, “alternative”, “outlook”, “plan”, “doable”, “potential”, “predict”, “undertaking”, “ought to”, “technique”, “try”, “goal”, “imaginative and prescient”, “will”, or “would”, any detrimental of those phrases or different comparable phrases or expressions. The absence of those phrases doesn’t imply {that a} assertion shouldn’t be forward-looking. Ahead-looking statements are predictions, projections and different statements about future occasions which are based mostly on present expectations and assumptions and, in consequence, are topic to dangers and uncertainties that may trigger precise outcomes to vary materially from these in such forward-looking statements. The elements that might trigger or contribute to precise future occasions to vary materially from the forward-looking statements on this press launch embody however will not be restricted to: the present and future well being and stability of the economic system, monetary situations and residential housing market, together with any prolonged downturn or slowdown; modifications on the whole financial and monetary situations (together with federal financial coverage, rates of interest, inflation, precise or anticipated recession, dwelling value fluctuations, and housing stock) that will cut back demand for our services, decrease our profitability or cut back our entry to future financings; precise or anticipated fluctuations in our monetary situation and outcomes of operations; modifications in projected operational and monetary outcomes; funding of assets to pursue methods and develop new services that won’t show efficient or that aren’t engaging to prospects and/or companions or that don’t permit us to compete efficiently; any future impression of the continued COVID-19 pandemic (together with future variants) or different public well being crises on our capability to function, demand for our services or products, or basic financial situations; addition or lack of a major variety of prospects; acquisitions, strategic partnerships, joint ventures, capital-raising actions or different company transactions or commitments by us or our rivals; precise or anticipated modifications in expertise, merchandise, markets or providers by us or our rivals; capability to guard our model and mental property; capability to acquire or keep licenses and permits to help our present and future enterprise operations; capability to function and develop our core enterprise merchandise, together with the flexibility to acquire adequate financing and resell bought properties; our capability to develop market share in our present markets or any new markets we could enter; our capability to handle our progress successfully; our capability to entry sources of capital, together with debt financing and securitization funding to finance our actual property inventories and different sources of capital to finance operations and progress; our capability to take care of and improve our merchandise and model, and to draw prospects; our capability to handle, develop and refine our expertise platform, together with our automated pricing and valuation expertise; our success in retaining or recruiting, or modifications required in, our officers, key staff and/or administrators; the impression of the regulatory setting inside our business and complexities with compliance associated to such setting; the impression of pure disasters and different catastrophic occasions; modifications in legal guidelines or authorities regulation affecting our enterprise; and the impression of pending or future litigation or regulatory actions. The foregoing checklist of things shouldn’t be exhaustive. It is best to rigorously think about the foregoing elements and the opposite dangers and uncertainties described underneath the caption “Danger Elements” in our most up-to-date Annual Report on Kind 10-Okay filed with the Securities and Alternate Fee (the “SEC”) on February 23, 2023, as up to date by our periodic reviews and different filings with the SEC. These filings determine and handle different necessary dangers and uncertainties that might trigger precise occasions and outcomes to vary materially from these contained within the forward-looking statements. Ahead-looking statements converse solely as of the date they’re made. Readers are cautioned to not put undue reliance on forward-looking statements, and, besides as required by legislation, we assume no obligation and don’t intend to replace or revise these forward-looking statements, whether or not because of new info, future occasions, or in any other case. We don’t give any assurance that we are going to obtain our expectations.

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¹ Opendoor has not supplied a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP internet earnings (loss) inside this press launch as a result of the Firm is unable, with out making unreasonable efforts, to calculate sure reconciling objects with confidence. This stuff embody, however will not be restricted to, stock valuation adjustment and fairness securities honest worth adjustment. This stuff, which might materially have an effect on the computation of forward-looking GAAP internet earnings (loss), are inherently unsure and rely upon numerous elements, a few of that are exterior of the Firm’s management. For extra info relating to the non-GAAP monetary measures mentioned on this press launch, please see “Use of Non-GAAP Monetary Measures” following the monetary tables beneath.

Contact Data

Traders:
Elise Wang
Opendoor
[email protected]

Media:
Sheila Tran / Charles Stewart
Opendoor
[email protected]