Opendoor Q3 revenue rises on acquisition growth
OPEN•Opendoor’s third-quarter revenue rose 12% year over year to $1.02 billion, missing the $1.05 billion consensus estimate, while homes purchased more than quadrupled. The company expects fourth-quarter revenue growth of at least 40% year over year and an adjusted EBITDA loss of $70 million to $85 million.
1. Revenue and acquisitions
Opendoor reported third-quarter revenue of $1.02 billion, up 12% year over year and below the $1.05 billion analyst consensus. The company more than quadrupled the number of homes it purchased year over year, which it said expanded market share.
2. Fourth-quarter outlook
Opendoor expects fourth-quarter revenue to grow at least 40% year over year. It expects contribution profit dollars to decline sequentially because of challenging market conditions and forecasts an adjusted EBITDA loss of $70 million to $85 million.
3. Efficiency gains
Marketing and operations expense per acquired home fell sharply over the past year, reflecting automation and process improvements. The company also cited broader product offerings and higher seller conversion as contributors to acquisition growth.
