Opendoor Technologies Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue of $5.2 billion, down 26% from $6.9 billion in 2023. The company sold 13,593 homes during the year, a decrease of 27% compared to 18,708 homes sold in the previous year. Despite the drop in sales volume, the gross margin improved to 8.4%, up from 7.0% in 2023, reflecting better pricing strategies and a focus on inventory management. However, the company still recorded a net loss of $392 million, compared to a loss of $275 million in 2023, indicating ongoing challenges in achieving profitability.
In terms of operational changes, Opendoor has been actively restructuring its workforce to align with market conditions, resulting in a reduction of approximately 17% of its employees in November 2024. This move is part of a broader strategy to streamline operations and focus on long-term growth. The company also deconsolidated its subsidiary, Mainstay Labs Inc., in July 2024, which is expected to impact its financial reporting and operational focus moving forward.
The company continues to expand its geographic footprint, maintaining operations in 50 markets across the United States. However, it has paused new market expansions due to the challenging macroeconomic environment, which has seen elevated mortgage rates and reduced housing market activity. As of December 31, 2024, Opendoor held 6,417 homes in inventory, a slight increase from 5,326 homes in 2023, reflecting its cautious approach to inventory management amid fluctuating market conditions.
Looking ahead, Opendoor's management remains focused on enhancing its digital platform and expanding its service offerings, including title insurance and escrow services. The company aims to leverage its technology to improve customer experience and operational efficiency. However, it acknowledges the ongoing risks associated with market volatility, interest rate fluctuations, and competition in the residential real estate sector. The outlook for 2025 remains cautious, with management emphasizing the need to adapt to changing market dynamics while pursuing strategic growth initiatives.
About Opendoor Technologies Inc.
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