The San Francisco-based iBuyer purchased and bought extra properties throughout Q3 than it did a yr in the past and trimmed its web loss by 14 % from Q2 and 26 % from a yr in the past.
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Opendoor is shedding 300 staff — about 17 % of its workforce — because it continues to deal with housing market headwinds, the corporate mentioned Thursday in reporting a $78 million third quarter loss.
The San Francisco-based iBuyer purchased and bought extra properties throughout Q3 than it did a yr in the past, and conserving a lid on the corporate’s working bills helped trim its web loss by 14 % from Q2 and 26 % from a yr in the past.
With residence gross sales up 35 % from a yr in the past to three,615, Opendoor noticed income develop by 41 % over the identical interval to $1.37 billion. Working bills dipped 2 % from Q3 2023 to $172 million.
Opendoor additionally beat earlier steerage for Q3 acquisitions, boosting residence purchases by 12 % from a yr in the past to three,503, regardless of “persistent housing market headwinds,” CEO Carrie Wheeler mentioned. The corporate completed the quarter with 6,288 properties valued at $2.1 billion in its stock, down 4 % from June 30.
“In August, many anticipated that rate of interest cuts would deliver patrons and sellers again to the market,” Wheeler mentioned in a press release. “Nonetheless, mortgage charges stay stubbornly excessive and the housing market continues to be challenged by excessive delistings, low clearance, and strained affordability.”
Shares in Opendoor, which within the final yr have traded for as little as $1.58 and as a lot as $4.89, closed at $1.87 Thursday earlier than earnings have been introduced and briefly climbed above $2 in after-hours tradings.
Opendoor has now racked up $3.61 billion in losses since its preliminary market launch in Phoenix in 2014. It’s a smaller firm than it was in 2022 when it bought 39,183 properties, however it’s additionally shedding much less cash.
After shedding $1.35 billion in 2022, final yr Opendoor scaled again residence purchases to 11,246 and laid off 680 staff, trimming its 2023 web loss to $275 million.
Opendoor continues to search for methods to chop prices, saying in August that it was spinning off its single-family rental platform, Mainstay, with Khosla Ventures main an funding increase to fund the platform as a standalone firm.
“We’re targeted on what we will management, working our enterprise as effectively as attainable, and streamlining our value construction whereas managing danger,” Wheeler mentioned Thursday. “The mix of the actions we took within the second half of this yr will lead to annualized financial savings of roughly $85 million as we enter 2025. With a simplified group and ongoing enhancements in our core merchandise, we’re well-positioned to rescale the enterprise as situations enhance.”
Electronic mail Matt Carter
