SAN FRANCISCO – Opendoor (NASDAQ:) Technologies Inc. (NASDAQ: OPEN) shares soared 9% following the release of its first-quarter earnings, which surpassed analyst expectations.
The digital platform for residential real estate transactions reported an adjusted loss per share of -$0.16, beating the consensus estimate of -$0.21. Revenue for the quarter was $1.2 billion, significantly higher than the analyst estimate of $1.09 billion and indicating a positive investor response to the company’s better-than-expected results.
Despite a 62% decrease in revenue compared to the first quarter of the previous year, Opendoor saw a 36% increase from the fourth quarter of 2023. The company sold 3,078 homes during the quarter, a 63% decrease YoY but a 30% increase from the previous quarter. Gross profit stood at $114 million, compared to $170 million in the same quarter last year, with gross margin improving to 9.7% from 5.4% YoY.
The adjusted net loss for the quarter was -$80 million, a significant improvement from the -$409 million loss in the first quarter of the previous year. Opendoor’s CEO, Carrie Wheeler, attributed the strong quarter to the company’s product resonating with customers and a commitment to execution and results.
Wheeler also highlighted the proposed NAR settlement as a sign of growing consumer preference for alternatives to the traditional home selling and buying process.
Looking ahead, Opendoor provided guidance for the second quarter of 2024, projecting revenue between $1.4 billion and $1.5 billion. This guidance places the midpoint slightly below the analyst consensus of $1.497 billion. The company also expects a contribution profit between $75 million and $85 million and an adjusted EBITDA loss between -$35 million and -$25 million for the upcoming quarter.
Wheeler expressed confidence in the company’s trajectory, stating, “We entered the second quarter with strong momentum, and we are meaningfully ramping acquisitions in 2024. We remain on track to durably rescale the business in 2024 while delivering Contribution Margin within our target annual range.”
Investors’ optimism following the earnings release reflects confidence in Opendoor’s performance and future prospects, as evidenced by the significant uptick in the company’s stock price.
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