Opendoor Pronounces First Quarter of 2023 Monetary Outcomes

SAN FRANCISCO, Could 04, 2023 (GLOBE NEWSWIRE) — Opendoor Applied sciences Inc. (Nasdaq: OPEN), a number one e-commerce platform for residential actual property transactions, at present reported monetary outcomes for its quarter ended March 31, 2023. Opendoor’s first quarter of 2023 monetary outcomes and administration commentary might be accessed by the Firm’s shareholder letter on the “Quarterly Reviews” 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 devoted the final 9 years to delivering on this imaginative and prescient and we stand alone in giving clients the power to maneuver with simplicity and certainty,” mentioned Carrie Wheeler, CEO of Opendoor.

Wheeler continued, “Our Q1 outcomes exhibit 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 houses and continued to construct a brand new e-book of stock with robust 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 houses offered, down (35)% versus 1Q22
• Gross revenue of $170 million, which displays a listing valuation adjustment on houses remaining in stock at quarter finish of $23 million; Gross Margin of 5.4%, versus 10.4% in 1Q22
• Internet (loss) revenue of $(101) million, versus $28 million in 1Q22
• Adjusted Internet (Loss) revenue 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 stability of $2.1 billion, representing 6,261 houses, down (55)% versus 1Q22
• Bought 1,747 houses, down (81)% versus 1Q22
• Ended the quarter with 1,137 houses below contract for buy, down (86)% versus 1Q22

2023 Monetary Outlook

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

Convention Name and Webcast Particulars

Opendoor will host a convention name to debate its monetary outcomes on Could 4, 2023, at 2:00 p.m. Pacific Time. A dwell webcast of the decision might be accessed from Opendoor’s Investor Relations web site at https://investor.opendoor.com. An archived model of the webcast might 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 offered individuals throughout the U.S. with a easy method to purchase and promote a house. Opendoor presently operates in a rising variety of markets nationwide.

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

Ahead Wanting Statements

This press launch incorporates sure forward-looking statements throughout the which 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 truth needs to be thought-about forward-looking, together with statements concerning 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 means to proceed to successfully navigate the markets through which it operates; anticipated future and ongoing impacts of our acquisitions and different enterprise choices; well being of our stability sheet to climate ongoing market transitions; the Firm’s means 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 broaden into extra markets, market alternative and growth and goals of administration for future operations, together with our statements concerning the advantages and timing of the roll out of recent markets, merchandise or know-how; and the anticipated diversification of funding sources. These forward-looking statements usually are recognized by the phrases “anticipate”, “imagine”, “ponder”, “proceed”, “might”, “estimate”, “count on”, “forecast”, “future”, “steering”, “intend”, “could”, “would possibly”, “alternative”, “outlook”, “plan”, “potential”, “potential”, “predict”, “venture”, “ought to”, “technique”, “try”, “goal”, “imaginative and prescient”, “will”, or “would”, any damaging of those phrases or different comparable phrases or expressions. The absence of those phrases doesn’t imply {that a} assertion isn’t forward-looking. Ahead-looking statements are predictions, projections and different statements about future occasions which are primarily based 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 embrace however usually are not 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; adjustments usually financial and monetary situations (together with federal financial coverage, rates of interest, inflation, precise or anticipated recession, residence value fluctuations, and housing stock) that will scale back demand for our services, decrease our profitability or scale back our entry to future financings; precise or anticipated fluctuations in our monetary situation and outcomes of operations; adjustments in projected operational and monetary outcomes; funding of sources to pursue methods and develop new services that will not show efficient or that aren’t engaging to clients 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 means to function, demand for our services or products, or normal financial situations; addition or lack of a major variety of clients; acquisitions, strategic partnerships, joint ventures, capital-raising actions or different company transactions or commitments by us or our rivals; precise or anticipated adjustments in know-how, merchandise, markets or companies by us or our rivals; means to guard our model and mental property; means to acquire or preserve licenses and permits to help our present and future enterprise operations; means to function and develop our core enterprise merchandise, together with the power to acquire enough financing and resell bought houses; our means to develop market share in our present markets or any new markets we could enter; our means to handle our development successfully; our means 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 development; our means to take care of and improve our merchandise and model, and to draw clients; our means to handle, develop and refine our know-how platform, together with our automated pricing and valuation know-how; our success in retaining or recruiting, or adjustments required in, our officers, key staff and/or administrators; the impression of the regulatory surroundings inside our business and complexities with compliance associated to such surroundings; the impression of pure disasters and different catastrophic occasions; adjustments in legal guidelines or authorities regulation affecting our enterprise; and the impression of pending or future litigation or regulatory actions. The foregoing record of things isn’t exhaustive. You must fastidiously contemplate the foregoing elements and the opposite dangers and uncertainties described below the caption “Threat 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 experiences and different filings with the SEC. These filings determine and deal with 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 communicate 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 regulation, 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’ll obtain our expectations.

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¹ Opendoor has not offered a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP web revenue (loss) inside this press launch as a result of the Firm is unable, with out making unreasonable efforts, to calculate sure reconciling gadgets with confidence. This stuff embrace, however usually are not 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 web revenue (loss), are inherently unsure and depend upon varied elements, a few of that are outdoors of the Firm’s management. For extra info concerning the non-GAAP monetary measures mentioned on this press launch, please see “Use of Non-GAAP Monetary Measures” following the monetary tables under.

Contact Info

Traders:
Elise Wang
Opendoor
[email protected]

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