Opendoor (NASDAQ:) Technologies experienced a significant decline in revenue and home sales in the third quarter of 2023, but managed to return to profitability through operational improvements. The company reported third-quarter revenue of $980 million, a 71% decline from the same period in 2022. The sharp decline was also reflected in the number of homes sold during the quarter, which amounted to 2,687, a decrease of 68% compared to the third quarter of 2022.
Despite these setbacks, Opendoor recorded a positive contribution margin, attributing the turnaround to improved cost structures, market share gains and efficient customer acquisition channels. The company’s inventory was valued at $1.3 billion at the end of the quarter, with 3,136 homes purchased during that period.
In terms of specific financial numbers, Opendoor reported an adjusted net loss of ($75) million and a net loss of ($106) million. However, it made a gross profit of $96 million and a contributed profit of $43 million. The company’s gross margin stood at 9.8%, while its adjusted EBITDA was recorded at $(49) million.
The return to profitability despite significant declines in revenue and home sales highlights Opendoor’s strategic operational improvements and profitability metrics. The company’s ability to gain market share through large-scale customer acquisition channels also played a central role in its financial performance in the third quarter of 2023.
This article was generated with the support of AI and reviewed by an editor. For more information, consult our General Terms and Conditions.