Opendoor Q3 2024: Revenues Up And Losses Narrow for American iBuyer

Opendoor has released its third-quarter numbers for the 2024 financial year.

Highlights include:

• Revenues were $1.4 billion, up 41% versus Q3 2023
• Net losses of $(78) million narrowed significantly compared to $(106) million in Q3 2023
• Opendoor purchased 3,504 homes, up 12% versus Q3 2023

Opendoor operates one of the few remaining iBuyer specialists and has dug deep as it strives for profitability, purchasing around 370 more properties in Q3 2024 than it did in the same period last year.

Carrie Wheeler, CEO, said:

"Opendoor’s third quarter acquisition volumes, revenue, Contribution Profit, and Adjusted EBITDA all exceeded our guidance, notwithstanding persistent housing market headwinds. In August, many anticipated that interest rate cuts would bring buyers and sellers back to the market. However, mortgage rates remain stubbornly high and the housing market continues to be challenged by high delistings, low clearance, and strained affordability.

"We are focused on what we can control, operating our business as efficiently as possible, and streamlining our cost structure while managing risk. The combination of the actions we took in the second half of this year will result in annualized savings of approximately $85 million as we enter 2025. With a simplified organization and ongoing enhancements in our core products, we are well-positioned to rescale the business as conditions improve."

But the reality is that Opendoor will need to be aggressive if it is to escape the red. Yes, losses have closed by an admirable $28 million since last year, but there still remains a $78 million hole that needs filling—made more difficult by a sluggish market.

Revenues from home sales hit $1.377 billion in Q3 at an Adjusted EBITDA loss of $38 million at a margin of -2.8%.

Year-to-date losses now stack up at $289 million, up significantly from a loss of $ 184 million in the first nine months of 2023.