Opendoor: Revenue Jumps, Loss Widens

Core Insights - Opendoor Technologies reported mixed Q4 2024 results, exceeding revenue expectations but maintaining a net loss [2][6][8] Financial Performance - Revenue surged to $1.1 billion, surpassing the $982 million estimate, reflecting a 25.9% year-over-year increase from $870 million [2][3] - The company posted a diluted EPS of -$0.16, matching analyst expectations, with a year-over-year decline of 14.3% from -$0.14 [3] - Contribution profit reached $38 million, significantly above the guided range of $15 million to $25 million [6][7] - Adjusted EBITDA improved to -$49 million from -$69 million, indicating better cost control [3][7] - The net loss for the quarter widened to $113 million due to challenging market conditions [2][8] Business Overview - Opendoor employs a digital-first approach to real estate transactions, operating in 50 markets across the US [4] - The company focuses on technology integration and cost efficiency to enhance customer experience and capture market share [5] Market Conditions - The housing market remains challenging with elevated mortgage rates and low inventory levels affecting buyer affordability and transaction volumes [8] - Inventory management is critical, with 46% of homes staying on the market for over 120 days, up from 18% a year ago [9] - Despite headwinds, inventory increased from $1.775 billion to $2.159 billion, indicating the company's ability to maintain market presence [9] Future Outlook - For Q1 2025, Opendoor anticipates revenue between $1.0 billion and $1.075 billion, with contribution profit expected to range from $40 million to $50 million [10]