Opendoor Technologies returns to profitability despite Q3 revenue and home sales drop By Investing.com
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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.
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