Business
Opendoor Announces Second Quarter of 2023 Financial Results
SAN FRANCISCO, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (Nasdaq: OPEN), a leading e-commerce platform for residential real estate
About this update from Opendoor Technologies Inc
[{"type":"text","content":"SAN FRANCISCO, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (Nasdaq: OPEN), a leading e-commerce platform for residential real estate transactions, today reported financial results for its quarter ended June 30, 2023. Opendoor’s second quarter of 2023 financial results and management commentary can be accessed through the Company’s shareholder letter on the “Quarterly Reports” page of Opendoor’s investor relations website at https://investor.opendoor.com. “We exceeded the high end of our guidance in the second quarter as we continue to focus on what we can control and operate with discipline in this environment. Our results reflect the progress we’ve made in strengthening our offering, driving cost efficiencies and managing risk. We expect the third quarter to mark our return to positive contribution margin levels. As of quarter end, 99% of the homes we made offers on between March and June of last year were sold or under resale contract and our new book of inventory is generating positive unit economics in what continues to be an uncertain time in the U.S. housing market. We believe the actions we are taking will allow us to emerge from this cycle more resilient and positioned for market leadership and long-term profitability,” said Carrie Wheeler, CEO of Opendoor. Second Quarter 2023 Key Highlights Revenue of $2.0 billion, down (53)% versus 2Q22 and down (37)% versus 1Q23; with 5,383 total homes sold, down (49)% versus 2Q22 and down (35)% versus 1Q23Gross profit of $149 million; Gross Margin of 7.5%, versus 11.6% in 2Q22 and 5.4% in 1Q23Net income (loss) of $23 million, versus $(54) million in 2Q22 and $(101) million in 1Q23Adjusted Net (Loss) income of $(197) million, versus $122 million in 2Q22 and $(409) million in 1Q23Contribution (Loss) Profit of $(90) million, versus $422 million in 2Q22 and $(241) million in 1Q23; Contribution Margin of (4.6)%, versus 10.1% in 2Q22 and (7.7)% in 1Q23Adjusted EBITDA of $(168) million, versus $218 million in 2Q22 and $(341) million in 1Q23; Adjusted EBITDA Margin of (8.5)%, versus 5.2% in 2Q22 and (10.9)% in 1Q23Inventory balance of $1.1 billion, representing 3,558 homes, down (83)% versus 2Q22 and down (46)% versus 1Q23Purchased 2,680 homes, down (81)% versus 2Q22 and up 53% versus 1Q23Ended the quarter with 1,390 homes under contract for purchase, down (82)% versus 2Q22 ...