Opendoor "Proud" of Q2 Performance Despite $92 Million Net Loss

The San Francisco-based iBuyer Opendoor declared that it was proud of second-quarter performance despite a net loss of $92 million. Notable figures from the company's Q2 report include:

• Revenue stood at $1.5 billion, down 24% vs 2023 but up 28% vs Q1.
• Gross profit was $129 million, versus $149 million in Q2 of 2023 and $114 million in Q1.
• Gross Margin was 8.5%, versus 7.5% in Q2 3023 and 9.7% in Q1.

The quarter saw Opendoor exceed its guidance on revenue, contribution margin and Adjusted EBITDA with CEO Carrie Wheeler saying the company made "meaningful progress" in brand awareness, NPS score and structural efficiencies.

Wheeler also told analysts and shareholders that Opendoor had deliberately throttled down its iBuying during the period having predicted a market slowdown.

"During the back half of the second quarter, we began responding to signals that indicated additional slowing in the housing market. We are making decisions that appropriately balance growth, margin, and risk in what continues to be a challenging environment. While the housing cycle will eventually recover, the improvements we are making in the business are enduring. We continue to expect to make meaningful progress in both increasing acquisitions and reducing Adjusted Net Losses this year, as compared to 2023."

Founded in 2014, Opendoor is one of the original iBuyers and is one of the few left operating in the North American market. The company has endured sustained losses and since founder Eric Wu stepped down as CEO in 2022 it has been trying to pivot towards becoming a marketplace business.

The company expects a rough third quarter with revenue guidance of between $1.2 and $1.3 billion and an Adjusted EBITDA loss of between $60-70 million.