The San Francisco-based iBuyer purchased and bought extra properties throughout Q3 than it did a 12 months in the past and trimmed its web loss by 14 p.c from Q2 and 26 p.c from a 12 months in the past.
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Opendoor is shedding 300 staff — about 17 p.c of its workforce — because it continues to deal with housing market headwinds, the corporate mentioned Thursday in reporting a $78 million third quarter loss.
The San Francisco-based iBuyer purchased and bought extra properties throughout Q3 than it did a 12 months in the past, and protecting a lid on the corporate’s working bills helped trim its web loss by 14 p.c from Q2 and 26 p.c from a 12 months in the past.
With residence gross sales up 35 p.c from a 12 months in the past to three,615, Opendoor noticed income develop by 41 p.c over the identical interval to $1.37 billion. Working bills dipped 2 p.c from Q3 2023 to $172 million.
Opendoor additionally beat earlier steering for Q3 acquisitions, boosting residence purchases by 12 p.c from a 12 months in the past to three,503, regardless of “persistent housing market headwinds,” CEO Carrie Wheeler mentioned. The corporate completed the quarter with 6,288 properties valued at $2.1 billion in its stock, down 4 p.c from June 30.
“In August, many anticipated that interest rate cuts would bring buyers and sellers back to the market,” Wheeler mentioned in an announcement. “However, mortgage rates remain stubbornly high and the housing market continues to be challenged by high delistings, low clearance, and strained affordability.”
Shares in Opendoor, which within the final 12 months have traded for as little as $1.58 and as a lot as $4.89, closed at $1.87 Thursday earlier than earnings had been introduced and briefly climbed above $2 in after-hours tradings.
Opendoor has now racked up $3.61 billion in losses since its preliminary market launch in Phoenix in 2014. It’s a smaller firm than it was in 2022 when it bought 39,183 properties, nevertheless it’s additionally shedding much less cash.
After shedding $1.35 billion in 2022, final 12 months Opendoor scaled again residence purchases to 11,246 and laid off 680 staff, trimming its 2023 web loss to $275 million.
Opendoor continues to search for methods to chop prices, saying in August that it was spinning off its single-family rental platform, Mainstay, with Khosla Ventures main an funding elevate to fund the platform as a standalone firm.
“We are focused on what we can control, operating our business as efficiently as possible, and streamlining our cost structure while managing risk,” Wheeler mentioned Thursday. “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.”
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