Opendoor Q4 2024 Earnings Report
Key Takeaways
Opendoor reported a 25% year-over-year increase in revenue for Q4 2024, reaching $1.1 billion. The company focused on streamlining operations and optimizing costs, leading to a significant reduction in Adjusted Net Losses. Despite a net loss of $(113) million, the company saw improvements in gross profit and contribution profit.
Revenue increased by 25% year-over-year to $1.1 billion, driven by a 19% increase in homes sold.
Gross profit increased to $85 million, with a gross margin of 7.8%.
Net loss was $(113) million, compared to $(91) million in Q4 2023.
Inventory balance increased to $2.2 billion, representing 6,417 homes.
Opendoor
Opendoor
Forward Guidance
Opendoor anticipates revenue between $1.0 billion and $1.075 billion, Contribution Profit between $40 million and $50 million, and Adjusted EBITDA between $(50) million and $(40) million for Q1 2025.
Positive Outlook
- Projected revenue between $1.0 billion and $1.075 billion for 1Q25.
- Contribution Profit guidance of $40 million to $50 million for 1Q25.
- Adjusted EBITDA guidance of $(50) million to $(40) million for 1Q25.
- Focus on reaching sustained profitability in the coming years.
- Commitment to strengthening position as the simplest way to sell a home.
Challenges Ahead
- Ongoing challenges in the housing market.
- Uncertainty in calculating certain reconciling items for GAAP gross profit and net income.
- Dependence on various factors outside of the company’s control.
- Potential impact of economic and financial conditions on demand.
- Risks associated with real estate assets and competition in the industry.