Opendoor Reports Revenue of $2.3 billion, up 91% versus 2Q21

Opendoor Technologies Inc , a leading digital platform for residential real estate, today reported financial results for its quarter ended September 30, 2021. Opendoor’s third quarter 2021 financial results and management commentary can be accessed through the Company’s shareholder letter on the quarterly results page of Opendoor’s investor relations website at https://investor.opendoor.com.

“Over the years, I am often asked whether our vision and strategy has changed. The short answer is no - we have always been focused on making it possible to buy, sell, and move at the tap of a button. In our view, the end state for the real estate marketplace will inevitably be a simple, certain, and fast transaction powered by technology. It is just a matter of when. So we have been consistently focused on investing in that future experience, piece by piece, with the consumer in mind at every step. We take great pride in doing the hard work to execute with excellence in our consumer experience, technology, business performance, and company culture. This is what sets us apart,” said Eric Wu, Co-Founder and CEO of Opendoor. “Our third quarter results are the byproduct of our focus on the consumer experience and strong, consistent execution. We exceeded our expectations in generating $2.3 billion of revenue, acquiring 15,181 homes, and delivering over $170 million of Contribution Profit and $35 million of Adjusted EBITDA.”

Third Quarter 2021 Key Highlights

Unless otherwise stated, all comparisons are on a quarter-over-quarter basis. We believe that sequential comparisons better reflect our underlying growth trends given our decision to pause home acquisitions and actively sell through our inventory last year due to COVID-19.

• Revenue of $2.3 billion, up 91% versus 2Q21, with 5,988 total homes sold, up 72% versus 2Q21
• Gross profit of $202 million, versus $159 million in 2Q21; gross margin of 8.9%, versus 13.4% in 2Q21
• Net income of $(57) million, versus $(144) million in 2Q21
• Adjusted Net Income of $(17) million, versus $2 million in 2Q21
• Contribution Profit of $170 million, versus $128 million in 2Q21; Contribution Margin of 7.5%, versus 10.8% in 2Q21
• Adjusted EBITDA of $35 million versus $26 million in 2Q21; Adjusted EBITDA Margin of 1.5% versus 2.2% in 2Q21
• Expanded to 44 markets at the end of 3Q21 with 5 new market launches
• Purchased 15,181 homes, up 79% versus 2Q21
• Grew inventory balance to 17,164 homes, representing $6.3 billion in value, up 130% versus 2Q21

Outlook

• 4Q21 revenue guidance of $3.1 billion - $3.2 billion
• 4Q21 Adjusted EBITDA1 guidance of ($5) million - $5 million