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OPEN stock exploded higher in after-hours trading on November 10, 2021, after the company Q3 financial results.
Opendoor Announces Third Quarter 2021 Financial Results
SAN FRANCISCO, Nov. 10, 2021 (GLOBE NEWSWIRE) — Opendoor Technologies Inc. (Nasdaq: OPEN), 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
- Conference Call and Webcast Details
Opendoor will host a conference call to discuss its financial results on November 10, 2021 at 2:00 p.m. Pacific Time. A live webcast of the call can be accessed from Opendoor’s Investor Relations website at https://investor.opendoor.com. An archived version of the webcast will be available from the same website after the call.
Opendoor Technologies resumed with Buy, $40 target at Citi
On September 24,2021, Citi analyst Nicholas Jones resumed coverage of Opendoor Technologies with a Buy rating with a price target of $40, up from $34, following a brief period of restriction. The analyst continues to see a “large opportunity” for Opendoor that is in its early days. The analyst says the company’s ability to execute in a real estate market where home sellers “have never had it easier” gives him confidence that its model is robust.
Opendoor Technologies initiated with a Buy at Zelman
On September 7, 2021, Zelman initiated coverage of Opendoor Technologies with a Buy rating, telling investors that the company is seen “unlocking real estate’s digital transformation.”
OPEN Stock Technical Analysis
The long and short term trends are both neutral. This gives a pretty neutral overall picture! OPEN has an average technical rating and the quality of the presented setup is also not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when OPEN stock is a good entry.
