NASDAQ$OPEN

Opendoor Technologies Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Opendoor's Q3 2023 results demonstrated strong execution and market share gains amid an uncertain housing market, marked by a return to positive contribution margin and operational excellence through pricing improvements, cost savings, and risk management.

Opendoor's Q3 2023 results were in line with or ahead of prior guidance, driven by a focus on operational excellence. The company returned to a positive contribution margin and saw market share gains. Revenue was $980 million, and the net loss was $(106) million.

  • Revenue reached $980 million, a 71% decrease year-over-year and a 50% decrease compared to the previous quarter.
  • Gross profit was $96 million, a significant improvement from the $(425) million loss in 3Q22.
  • Net loss was $(106) million, compared to $(928) million in 3Q22.
  • The company purchased 3,136 homes, a 63% decrease year-over-year but a 17% increase compared to the previous quarter.

Headline financials

Total Revenue

$980M

Previous: $3.36B-70.8%
EPS (adj)

-$0.11

Previous: -$0.52+78.8%
Homes Sold

2.7K

Previous: 8.5K-68.5%
Homes Purchased

3.1K

Previous: 8.4K-62.6%
Homes in Inventory

4.0K

Previous: 16.9K-76.3%
Capital Expenditures

-$28M

Previous: -$33M+15.2%
Free Cash Flow

-$134M

Previous: -$961M+86.1%
Net Income

-$106M

Previous: -$928M+88.6%
Operating Income

-$79M

Previous: -$810M+90.2%
Gross Profit

$96M

Previous: -$425M+122.6%
Cash & Equivalents

$1.15B

Previous: $1.33B-13.0%
Total Assets

$3.95B

Previous: $9.78B-59.7%
Stock-Based Comp

$31M

Previous: $52M-40.4%

Revenue & EPS history

Opendoor · Revenue · Quarterly

$980M

Q3 2023-70.8%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Opendoor provided the following guidance for Q4 2023: revenue of $800 million to $850 million, Contribution Profit of $15 million to $25 million, and Adjusted EBITDA of $(105) million to $(95) million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-5.3%

Avg return

Earnings day

-7.8%

Avg return

5 days after

-3.7%

Avg return

30 days after

36%

10 / 28 earnings

Positive

+33.6%

Q1 2023

Best reaction

-25.9%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%-13.7%-17.3%
Q4 2025-5.8%+7.1%+5.6%
Q3 2025+17.2%+42.8%+9.0%
Q1 2025+24.4%+0.9%-3.0%
Q4 2024-6.3%-14.0%-21.0%
Q3 2024+3.9%-0.6%+23.6%
Q2 2024-19.8%-26.1%-7.3%
Q1 2024+10.5%+12.5%+9.0%
Q4 2023-12.8%-18.6%-22.3%
Q3 2023+10.6%+9.5%+75.7%
Q2 2023-25.9%-25.7%-18.6%
Q1 2023+33.6%+60.4%+85.1%
Q4 2022-13.5%-22.2%-10.3%
Q3 2022-11.8%-28.4%-25.3%
Q2 2022+9.8%+4.2%-21.3%
Q1 2022-16.3%-26.9%-6.2%
Q4 2021-8.5%-10.7%-6.2%
Q3 2021+7.4%+7.4%-28.7%
Q2 2021+21.1%+9.8%+26.3%
Q1 2021-9.5%-9.8%+3.1%
Q2 2019-23.8%-25.0%-24.6%
Q1 2019-23.8%-25.0%-24.6%
Q4 2020-23.8%-25.0%-24.6%
Q4 2019-23.8%-25.0%-24.6%
Q4 2018-23.8%-25.0%-24.6%
Q3 2019-23.8%-25.0%-24.6%
Q2 2020-23.8%-25.0%-24.6%
Q3 2020+11.2%-0.7%+19.1%
Q1 2020
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012

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