Technology real estate company Opendoor (NASDAQ:OPEN) will be reporting results tomorrow afternoon. Here’s what to look for.

Opendoor beat analysts’ revenue expectations by 8.7% last quarter, reporting revenues of $1.38 billion, up 40.5% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported 3,615 homes sold, up 34.5% year on year.

Is Opendoor a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Opendoor’s revenue to grow 11.2% year on year to $967.2 million, a reversal from the 69.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Opendoor has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Opendoor’s peers in the real estate services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Marcus & Millichap delivered year-on-year revenue growth of 44.4%, beating analysts’ expectations by 20.2%, and Compass reported revenues up 25.9%, topping estimates by 3.4%. Marcus & Millichap traded up 5.4% following the results while Compass was also up 28.2%.

Read our full analysis of Marcus & Millichap’s results here and Compass’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the real estate services stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. Opendoor’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $1.78 (compared to the current share price of $1.49).

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