The earnings call highlighted strong financial performance in Q3, cost reduction initiatives, and positive developments in new products. However, these were offset by the ongoing challenges in the housing market, lower home purchases, and cautious guidance for Q4, reflecting a challenging macroeconomic environment.

Company Guidance

During Opendoor's Q3 2024 earnings call, the company reported $1.4 billion in revenue, exceeding their guidance range, and acquired 3,504 homes, despite a 27% sequential decline attributed to elevated spread levels and reduced marketing spend. Contribution margin was 3.8%, surpassing expectations, while adjusted operating expenses were $90 million, below the anticipated $105 million. The adjusted EBITDA loss was $38 million, outperforming the guidance range. Looking ahead, Opendoor anticipates Q4 revenue between $925 million and $975 million, contribution profit between $15 million and $25 million, and adjusted EBITDA loss between $70 million and $60 million. The company also highlighted cost-saving measures, including a $35 million annual saving from the separation of Mainstay and a $50 million reduction from a 17% workforce cut. Despite the challenging housing market, Opendoor remains focused on achieving adjusted net income profitability and leveraging its asset-light products to diversify and enhance business performance.

Outperformance in Q3 Financial Metrics

Opendoor delivered $1.4 billion in revenue in Q3, exceeding the high end of guidance, with a contribution margin of 3.8% and an adjusted EBITDA loss of $38 million, significantly outperforming expectations.

Innovative Seller-Focused Products

Opendoor made progress in developing seller-focused products such as 'List with Opendoor' and 'Marketplace', which are less macro dependent and capital-light, showing promise for future growth.

Cost Reduction Initiatives

The company announced a headcount reduction of about 300 people, expected to provide approximately $50 million in annualized savings, alongside an additional $35 million from the separation of Mainstay.

Strong Balance Sheet Position

Opendoor ended the quarter with $1.2 billion in total capital, including $837 million in unrestricted cash and marketable securities.

Positive Customer Feedback

An increase in Net Promoter Score was observed when new selling options were offered, indicating successful addressing of previously unmet consumer needs.

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Opendoor Technologies (OPEN) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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OPEN Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 04, 2021	2020 (Q4)	- / -0.49	0	―	―	―
May 11, 2021	2021 (Q1)	-0.48 / -0.48	0	―	―	―
Aug 11, 2021	2021 (Q2)	-0.34 / -0.24	-0.005	-4700.00% (-0.23)	―	―
Nov 10, 2021	2021 (Q3)	-0.17 / -0.09	-1.47	93.88% (+1.38)	―	―
Feb 24, 2022	2021 (Q4)	-0.18 / -0.31	-0.49	36.73% (+0.18)	―	―
May 05, 2022	2022 (Q1)	-0.17 / 0.04	-0.479	108.35% (+0.52)	―	―
Aug 04, 2022	2022 (Q2)	0.03 / -0.09	-0.24	62.50% (+0.15)	―	―
Nov 03, 2022	2022 (Q3)	-0.49 / -1.47	-0.09	-1533.33% (-1.38)	―
Feb 23, 2023	2022 (Q4)	-0.81 / -0.63	-0.31	-103.23% (-0.32)	―
May 04, 2023	2023 (Q1)	-0.61 / -0.16	0.04	-500.00% (-0.20)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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OPEN Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$1.87	$1.85	-1.07%
Aug 01, 2024	$2.13	$1.86	-12.68%
May 02, 2024	$2.03	$2.21	+8.87%
Feb 15, 2024	$3.35	$3.00	-10.45%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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