Opendoor Technologies Inc · NASDAQ:OPEN
Opendoor Technologies — Opendoor Labs — SPAC Merger (September 2020)
43 slides from Opendoor Technologies's SPAC merger presentation, Sep 15, 2020
Slide 1: Social Capital Hedosophia II September 2020 IPOB
SOCIAL CAPITAL HEDOSOPHIA II SEPTEMBER 2020 IPOB
Slide 2: Goals
2 GOALS
Slide 3: Partner with an iconic technology company
3 PARTNER WITH AN ICONIC TECHNOLOGY COMPANY
Slide 4: Help them transition to the public markets
4 HELP THEM TRANSITION TO THE PUBLIC MARKETS
Slide 5: Enable them to fund long-term growth
5 ENABLE THEM TO FUND LONG - TERM GROWTH
Slide 6: Build a legacy company
6 BUILD A LEGACY COMPANY
Slide 7: Consumption
7 CONSUMPTION
Slide 8: Offline consumption has become too cumbersome for most people
8 OFFLINE CONSUMPTION HAS BECOME TOO CUMBERSOME FOR MOST PEOPLE
Slide 9: People value time, convenience and consistency
9 PEOPLE VALUE TIME, CONVENIENCE AND CONSISTENCY
Slide 10: This is what modern software excels at delivering
10 THIS IS WHAT MODERN SOFTWARE EXCELS AT DELIVERING
Slide 11: The result is that everything is moving online
11 THE RESULT IS THAT EVERYTHING IS MOVING ONLINE
Slide 12: Buying clothes, groceries, cars, anything, everything
12 BUYING CLOTHES BUYING GROCERIES BUYING CARS BUYING ANYTHING BUYING EVERYTHING
Slide 13: 2. sy stripe
2. sy stripe amazon Ss | @Q sna a shopify Meituan Dianping Binstacoct FARFETCH &
Slide 14: Leaders in these categories have tailwinds
14 LEADERS IN THESE CATEGORIES HAVE TAILWINDS
Slide 15: Long term growth and advantages of scale
15 LONG TERM GROWTH AND ADVANTAGES OF SCALE
Slide 16: One category of consumption has stayed the same
16 ONE CATEGORY OF CONSUMPTION HAS STAYED THE SAME
Slide 17: Real estate
17 REAL ESTATE
Slide 18: 68% of Americans are homeowners
18 68% OF AMERICANS ARE HOMEOWNERS Note: Data sourced from U.S. Census Bureau.
Slide 19: 5M homes are sold every year in the US
19 5M HOMES ARE SOLD EVERY YEAR IN THE US Note: Data sourced from National Association of Realtors.
Slide 20: The largest, undisrupted market in the US worth $1.6T annually
20 THE LARGEST , UNDISRUPTED MARKET IN THE US WORTH $1.6T ANNUALLY Note: Data sourced from U.S. Census Bureau and National Association of Realtors.
Slide 21: Highly fragmented incumbents, low NPS and 28% do it as a part-time job
21 HIGHLY FRAGMENTED INCUMBENTS , LOW NPS AND 28% DO IT AS A PART - TIME JOB Note: Data sourced from U.S. Bureau of Labor Statistics, U.S. Census Bureau and National Association of Realtors.
Slide 22: 22
22
Slide 23: IPOB +
23 IPOB +
Slide 24: Tailwinds
24 TAILWINDS
Slide 25: Lack of resale inventory and new home expansion has constrained supply
25 LACK OF RESALE INVENTORY AND NEW HOME EXPANSION HAS CONSTRAINED SUPPLY
Slide 26: Median house price vs household income
26 3.4x 9.4x 9.7x Median house price vs household income National Average New York San Francisco Note: Analysis based on US Census Bureau data; median value of owner - occupied housing units (2014 - 2018) and median household income ( 2014 - 2018, re - based to 2018 currency).
Slide 27: Increasing state taxes and elimination of SALT deductions are creating relocation decisions
27 INCREASING STATE TAXES AND ELIMINATION OF SALT DEDUCTIONS ARE CREATING RELOCATION DECISIONS
Slide 28: Centers of gravity in US are shifting
CENTERS OF GRAVITY IN US ARE SHIFTING 28 Phoenix Dallas - Fort Worth Atlanta Raleigh - Durham Orlando San Jose San Francisco $1,050 0.6x $1,380 0.1x Los Angeles $582 (0.3x) Median Sales Price ($k) Population Growth (vs. National Average: 0.5%) New York Newark $440 (0.4x) $435 0.2
Slide 29: Working from home is accelerating relocation decisions
29 WORKING FROM HOME IS ACCELERATING RELOCATION DECISIONS
Slide 30: Urban residents now search more for suburban properties, an all time record
30 URBAN RESIDENTS NOW SEARCH MORE FOR SUBURBAN PROPERTIES, AN ALL TIME RECORD
Slide 31: 75M millennials are starting to enter the housing market
31 75M MILLENIALS ARE STARTING TO ENTER THE HOUSING MARKET Source: Pew Research Center.
Slide 32: And they have buying power
32 AND THEY HAVE BUYING POWER
Slide 33: Median household income per age cohort
33 $44,900 $69,000 $42,700 $77,600 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012 2017 Ages 22-37 Ages 38-53 Ages 54-72 $85,800 $52,800 Median household income per age cohort Source: Pew Research Center.
Slide 34: Americans are on the move
34 AMERICANS ARE ON THE MOVE
Slide 35: Opendoor
35 OPENDOOR
Slide 36: Product brings machine learning, user experience and operations together to create a seamless experience
36 PRODUCT BRINGS MACHINE LEARNING, USER EXPERIENCE AND OPERATIONS TOGETHER TO CREATE A SEAMLESS EXPERIENCE
Slide 37: Opendoor has achieved significant scale in just a few years
37 OPENDOOR HAS ACHIEVED SIGNIFICANT SCALE IN JUST A FEW YEARS
Slide 38: 2019 revenue of $4.7B
38 2019 REVENUE OF $4.7B Note: Company data.
Slide 39: Building a virtuous cycle with compounding advantages of scale
39 BUILDING A VIRTUOUS CYCLE WITH COMPOUNDING ADVANTAGES OF SCALE
Slide 40: Compounding advantages
40 COMPOUNDING ADVANTAGES MORE SALES & MORE PURCHASES MORE OFFERS BROADER GEOGRAPHICAL COVERAGE MORE DEMAND CHEAPER CAPITAL SCALED VALUE ADDED SERVICES
Slide 41: Existing playbook at 4% market share creates a company with $50B in revenues
41 EXISTING PLAYBOOK AT 4% MARKETSHARE CREATES A COMPANY WITH $50B IN REVENUES
Slide 42: Fin
42 FIN
Slide 43: Disclaimer: Confidentiality and Disclosures
43 DISCLAIMER Confidentiality and Disclosures This presentation has been prepared for use by Social Capital Hedosophia Holdings Corp. II (“Social Capital”) and Opendoor Labs Inc. (“ Opendoor ”) in connection with their proposed business combination. This presentation is for information purposes only