Opendoor Q3 revenue rises on acquisition growth

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

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

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(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.)