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Dec 31, 2024
Opendoor Q4 2024 Earnings Report
Opendoor reported its financial results for the fourth quarter and full year ended December 31, 2024, showing improvements in profitability metrics despite a challenging housing market.
Key Takeaways
Opendoor Technologies Inc. announced its Q4 2024 financial results, with revenue of $1.1 billion and a net loss of $(113) million. The company demonstrated strong execution in 2024, achieving a full-year gross margin of 8.4% and significantly reducing Adjusted Net Losses.
Revenue for Q4 2024 was $1.1 billion, up 25% compared to Q4 2023.
Net loss for Q4 2024 was $(113) million, compared to $(91) million in Q4 2023.
Adjusted EBITDA loss improved to $(49) million in Q4 2024, from $(69) million in Q4 2023.
The company purchased 2,951 homes in Q4 2024 and sold 2,822 homes.
Opendoor
Opendoor
Forward Guidance
For Q1 2025, Opendoor expects revenue between $1.0 billion and $1.075 billion, Contribution Profit between $40 million and $50 million, and Adjusted EBITDA loss between $(50) million and $(40) million.
Positive Outlook
- Expected home acquisitions to be over 3,500 in Q1 2025, indicating slight year-over-year growth.
- Anticipated acquisition growth of over 10% year-over-year when normalizing for bulk purchases.
- Continued focus on optimizing for Contribution Profit dollars and pursuing incremental monetization opportunities.
- Successful extension of credit facilities strengthens capital position and supports business plan execution.
- Commitment to achieving sustainable, profitable growth and improving Adjusted Net Loss for the year.
Challenges Ahead
- Observation of a particularly slow start to 2025 with signs of a worsening macro environment.
- Clearance rates pacing approximately 25% below last year.
- Active listings have risen nearly 20% year-over-year amid a slowing market.
- Visits to new listings are down about 20% compared to last year.
- Delistings have climbed over 30% to decade highs as more sellers exit the market, with no near-term rate relief in sight.