- The stock price of Opendoor Technologies Inc. (Nasdaq: OPEN) increased by over 15% after hours. This is why it happened.
The stock price of Opendoor Technologies Inc. (Nasdaq: OPEN) – a leading digital platform for residential real estate – increased by over 15% after hours. Investors responded positively to the company’s financial results for its quarter ended June 30, 2021.
Q2 2021 Financial Highlights:
— Revenue of $1.2 billion, up 59% versus Q1 2021, with 3,481 total homes sold, up 41% versus Q1 2021
— Gross profit of $159 million, up 64% versus Q1 2021; gross margin of 13.4%, up 40 basis points versus Q1 2021
— Net income of ($144) million, versus ($270) million in Q1 2021
— Adjusted net income of $2.5 million versus adjusted net income of ($21) million in Q1 2021
— Contribution profit of $128 million, up 68% versus 1Q21; Contribution margin of 10.8%, up 60 basis points versus Q1 2021
— Adjusted EBITDA of $26 million versus ($2) million in Q1 2021; adjusted EBITDA margin of 2.2% versus (0.3%) in Q1 2021
— Expanded to 39 markets at the end of Q2 2021 with 12 new market launches
— Purchased 8,494 homes, up 136% versus Q1 2021
— Grew inventory balance to $2.7 billion, up 224% versus Q1 2021
— Ended the quarter with contracts to acquire 8,158 homes, representing $3 billion in value
— Q3 2021 revenue guidance of $1.8 billion – $1.9 billion
— Q3 2021 adjusted EBITDA1 guidance of $15 million – $25 million
“Each quarter, we get the opportunity to reflect on our journey to redefine how people buy and sell a home and transform the world’s largest asset class. Last quarter, I spoke to our tremendous momentum, created by our relentless focus on the consumer experience, pricing expertise, and operational excellence. Today, I am proud to share the results of those efforts. In the second quarter of 2021, we acquired a record 8,494 homes, generated revenue of $1.2 billion, and delivered adjusted EBITDA of $25.6 million, representing growth of 136% in homes acquired, 59% in revenue, and nearly $28 million in adjusted EBITDA compared to the first quarter. This strong outperformance is further evidence of the seismic shift in consumer demand towards the modern real estate experience we are pioneering. Based on our current momentum, we are operating today at a second half revenue run rate that is on track to meet the 2023 target we provided at the time of our December listing.”
— Eric Wu, Co-Founder and CEO of Opendoor
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.