Opendoor Technologies Inc · Q4 2020 earnings

Briefing

Opendoor's Q4 2020 financial results were announced, exceeding prior expectations and demonstrating strong home resale performance and increased acquisition pace.

Opendoor Technologies Inc. reported strong Q4 2020 results, exceeding prior forecasts with a focus on digitizing the real estate transaction. The company saw increasing business momentum, healthy margins, and plans to double its footprint to 42 markets. They also became publicly-traded and completed a follow-on public equity offering, increasing cash and marketable securities.

• Became publicly-traded via a merger on December 18, 2020, raising net proceeds of $970 million.
• Completed an underwritten follow-on public equity offering of $860 million of net proceeds in February 2021, with $1,460 million in cash and marketable securities at the end of Q4 2020.
• Tripled inventory balance from Q3 2020 to $466 million and 1,827 homes at year end.
• Generated 15.4% Gross Profit margins and 12.6% Contribution Profit margins in the fourth quarter of 2020.

Headline financials

Revenue & EPS history

For the first quarter of 2021, Opendoor expects total revenue between $600 million and $625 million, representing 146% sequential growth over Q4 2020. Adjusted EBITDA is expected to be between $(33) million and $(28) million, with Adjusted EBITDA margins of (5)% at the midpoint.