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Opendoor Q3 revenue rises on acquisition growth

By Reuters News


Overview

  • US real estate platform's Q3 revenue rose 12% yr/yr but missed analyst expectations

  • Company more than quadrupled homes purchased yr/yr

  • Marketing and operations efficiency improved sharply over the past year


Outlook

  • Opendoor expects Q4 revenue to grow at least 40% year-over-year

  • Company expects Q4 Contribution Profit dollars to decline sequentially due to challenging market conditions

  • Opendoor forecasts Q4 Adjusted EBITDA loss of $70 mln to $85 mln


Result Drivers

  • ACQUISITION GROWTH - Co more than quadrupled homes purchased yr/yr, expanding market share

  • EFFICIENCY GAINS - Marketing and operations expense per acquired home fell sharply, reflecting automation and process improvements

  • PRODUCT SUITE & SELLER CONVERSION - Broader product offerings and higher seller conversion contributed to acquisition growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$1.02 bln

$1.05 bln (8 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the real estate services peer group is "buy."

  • Wall Street's median 12-month price target for Opendoor Technologies Inc. is $4.25, about 114.6% above its November 4 closing price of $1.98


Reuters Recommended Reads

  • Nov 2 - Offerpad Q3 revenue falls 41% as housing demand slows

  • Nov 4 - Smith Douglas Homes Q3 profit drops as revenue stays flat in challenging market

  • Nov 4 - India's Keystone Realtors Q2 revenue dips but JV income lifts profit


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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