• Revenue (Q4 2024): $1.1 billion, up 25% year-over-year.
• Full Year Revenue (2024): $5.2 billion, down from $6.9 billion in 2023.
• Homes Sold (Q4 2024): 2,822 homes.
• Homes Purchased (Q4 2024): 2,951 homes.
• Full Year Homes Acquired (2024): 14,684 homes, up 31% from 2023.
• Contribution Margin (Q4 2024): 3.5%.
• Full Year Contribution Margin (2024): 4.7%, up from negative 3.7% in 2023.
• Contribution Profit (Q4 2024): $38 million, up from $30 million in Q4 2023.
• Adjusted EBITDA Loss (Q4 2024): $49 million, a $20 million improvement year-over-year.
• Full Year Adjusted EBITDA Loss (2024): $142 million, improved from a loss of $627 million in 2023.
• Net Inventory (End of 2024): $2.2 billion, up 22% from the prior year.
• Total Capital (End of 2024): $1.1 billion, including $679 million in unrestricted cash and marketable securities.
• Nonrecourse Asset-Backed Borrowing Capacity: $6.9 billion.
• Q1 2025 Revenue Outlook: $1 billion to $1.075 billion.
• Q1 2025 Contribution Profit Outlook: $40 million to $50 million.
• Q1 2025 Adjusted EBITDA Loss Outlook: $40 million to $50 million.
• Q1 2025 Home Acquisitions Outlook: Over 3,500 homes.

• Warning! GuruFocus has detected 6 Warning Signs with OPEN.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Opendoor Technologies Inc (NASDAQ:OPEN) increased home acquisitions by 30% in 2024 compared to 2023.
• The company improved its contribution margin to 4.7% in 2024, up from negative 3.7% in the previous year.
• Opendoor Technologies Inc (NASDAQ:OPEN) significantly reduced its adjusted net losses, with a $500 million improvement year-over-year.
• The company successfully renewed and extended credit facilities, demonstrating strong support from capital partners.
• Opendoor Technologies Inc (NASDAQ:OPEN) expanded its 'List with Opendoor' and 'Marketplace' offerings to more markets, providing sellers with more options.

Negative Points

• The company is facing a slower start to the spring selling season in 2025 due to macroeconomic pressures.
• Clearance rates for homes are pacing 25% lower than the previous year, indicating a slowing market.
• Visits to new listings are down 20% to 25%, while delistings are up over 30%, reaching decade highs.
• Opendoor Technologies Inc (NASDAQ:OPEN) is operating with elevated spread levels due to continued macroeconomic headwinds.
• The company ended 2024 with 46% of its inventory having been on the market for over 120 days, which could impact future contribution margins.

Q & A Highlights

Q: Could you elaborate on your cost savings and efficiency opportunities, and how you're balancing profitability with maintaining operational scale in a depressed housing market? A: Selim Freiha, CFO: We've taken significant actions to reduce our fixed cost base, including the disposition of Mainstay and a reduction in force, expecting $85 million in cost savings. In 2025, we'll continue seeking efficiencies. Despite the challenging environment, we've reduced losses by $500 million year-over-year and aim to further reduce them in 2025. We believe our current fixed cost levels can support higher growth without scaling costs back up significantly.

Q: Can you provide an update on the Marketplace in Charlotte and Raleigh and your confidence in expanding it? A: Carrie Wheeler, CEO: We've seen high customer trial rates and good clearance rates in Marketplace, even with less visibility than MLS. Marketplace attracts sellers who aren't ready for MLS due to home condition or other factors. We see potential in offering these homes to buyers facing affordability pressures and will continue testing in our current markets.

Q: How are you managing your debt and liquidity in the current interest rate environment? A: Selim Freiha, CFO: We've extended more than half of our facilities, increasing borrowing capacity at similar or better credit spreads. Over 90% of our $8 billion borrowing capacity is extended through at least 2026. We have $1.1 billion in capital and are constantly evaluating our capital structure to support our balance sheet.

Q: How are you approaching your buy box and market expansion in the current challenging market? A: Carrie Wheeler, CEO: We haven't pulled back on our buy box expansion. Instead, we've improved price segmentation to adjust spreads for different homes. We're focusing on better pricing to optimize conversion without retrenching from our buy box.

Q: How are you managing operating expenses and what efficiencies can we expect throughout the year? A: Selim Freiha, CFO: Operating expenses in Q1 are slightly up due to higher inventory, but we expect costs to decrease over the year as we realize the full impact of cost-saving initiatives. We'll also adjust marketing spend to align with periods when spreads are lower, optimizing effectiveness.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.