Opendoor Technologies jumps after posting better-than-expected Q4 results
The online real estate company is executing on its strategy of flipping homes much more aggressively.
Opendoor Technologies is surging double digits in after-hours trading after posting better-than-expected fourth-quarter results.
For Q4, the online real estate company reported:
Revenues of $736 million (estimate: $594.9 million).
Adjusted EBITDA of -$43 million (estimate: -$47.5 million, guidance for a loss “in the high $40 millions to mid $50 millions”).
After its Q3 report, management committed to a strategy of flipping homes more aggressively. Opendoor managed to exceed the bar it set on this front, with the number of homes purchased up 46% quarter on quarter and management having targeted an increase of at least 35%. Meanwhile, the 1,978 homes sold in the quarter bested Wall Street’s estimate by nearly 20%.
“This quarter demonstrates we are executing on that plan,” CEO Kaz Nejatian said. “These results reflect structural improvements in how we operate with more accurate pricing, faster inventory turns, and disciplined selection.”
Looking forward, Opendoor said to expect a Q1 adjusted EBITDA loss “in the low to mid $30 millions,” better than the anticipated $37.7 million loss. The revenue outlook, however, is a disappointment, with the firm projecting a decrease of approximately 10% quarter over quarter, while analysts had anticipated a big increase.
The retail enthusiasm and elevated activity that powered the company to fresh multiyear highs in Q3 of last year has waned significantly. We’ll see if this report can rejuvenate traders’ interest in an enduring fashion.
