Page 1

Opendoor Opendoor Announces Third Quarter 2021 Financial Results November 10 , 2021 SAN FRANCISCO , Nov. 10 , 2021 ( GLOBE NEWSWIRE ) -- Opendoor Technologies Inc. ( Nasdaq : OPEN ) , a leading digital platform for residential real estate , today reported financial results for its quarter ended September 30 , 2021. Opendoor's third quarter 2021 financial results and management commentary can be accessed through the Company's shareholder letter on the quarterly results page of Opendoor's investor relations website at https://investor.opendoor.com . " Over the years , I am often asked whether our vision and strategy has changed . The short answer is no - we have always been focused on making it possible to buy , sell , and move at the tap of a button . In our view , the end state for the real estate marketplace will inevitably be a simple , certain , and fast transaction powered by technology . It is just a matter of when . So we have been consistently focused on investing in that future experience , piece by piece , with the consumer in mind at every step . We take great pride in doing the hard work to execute with excellence in our consumer experience , technology , business performance , and company culture . This is what sets us apart , " said Eric Wu , Co - Founder and CEO of Opendoor . " Our third quarter results are the byproduct of our focus on the consumer experience and strong , consistent execution . We exceeded our expectations in generating $ 2.3 billion of revenue , acquiring 15,181 homes , and delivering over $ 170 million of Contribution Profit and $ 35 million of Adjusted EBITDA . " Third Quarter 2021 Key Highlights Unless otherwise stated , all comparisons are on a quarter - over - quarter basis . We believe that sequential comparisons better reflect our underlying growth trends given our decision to pause home acquisitions and actively sell through our inventory last year due to COVID - 19 . • Revenue of $ 2.3 billion , up 91 % versus 2Q21 , with 5,988 total homes sold , up 72 % versus 2Q21 • Gross profit of $ 202 million , versus $ 159 million in 2Q21 ; gross margin of 8.9 % , versus 13.4 % in 2Q21 • Net income of $ ( 57 ) million , versus $ ( 144 ) million in 2Q21 • Adjusted Net Income of $ ( 17 ) million , versus $ 2 million in 2Q21 • Contribution Profit of $ 170 million , versus $ 128 million in 2Q21 ; Contribution Margin of 7.5 % , versus 10.8 % in 2Q21 • Adjusted EBITDA of $ 35 million versus $ 26 million in 2Q21 ; Adjusted EBITDA Margin of 1.5 % versus 2.2 % in 2Q21 • Expanded to 44 markets at the end of 3Q21 with 5 new market launches • Purchased 15,181 homes , up 79 % versus 2Q21 • Grew inventory balance to 17,164 homes , representing $ 6.3 billion in value , up 130 % versus 2Q21 Outlook • 4Q21 revenue guidance of $ 3.1 billion - $ 3.2 billion • 4Q21 Adjusted EBITDA¹ guidance of ( $ 5 ) million - $ 5 million Conference Call and Webcast Details Opendoor will host a conference call to discuss its financial results on November 10 , 2021 at 2:00 p.m. Pacific Time . A live webcast of the call can be accessed from Opendoor's Investor Relations website at https://investor.opendoor.com . An archived version of the webcast will be available from the same website after the call . Forward Looking Statements This press release contains certain forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 , as amended . All statements contained in this press release that do not relate to matters of historical fact should be considered forward - looking , including statements regarding our financial condition , anticipated financial performance , business strategy and plans , market opportunity and expansion and objectives of management for future operations . These forward - looking statements generally are identified by the words " anticipate " , " believe " , " contemplate " , " continue " , " could ” , “ estimate ” , “ expect ” , “ forecast ” , “ future ” , “ intend ” , “ may ” , " might " , " opportunity " , " plan " , " possible ” , “ potential " , " predict " , " project , ” “ should ” , “ strategy ” , “ strive ” , “ target ” , “ will ” , or “ would ” , the negative of these words or other similar terms or expressions . The absence of these words does not mean that a statement is not forward - looking . Forward - looking statements are predictions , projections and other statements about future events that are based on current expectations and assumptions and , as a result , are subject to risks and uncertainties . Many important factors could cause actual future events to differ materially from the forward - looking statements in this press release , including but not limited to our public securities ' potential liquidity and trading ; our ability to raise financing in the future ; our success in retaining or recruiting , or changes required in , our officers , key employees or directors ; the impact of the regulatory environment and complexities with compliance related to such environment ; our ability to remediate our material weaknesses ; various factors relating to our business , operations and financial performance , including , but not limited to , the impact of the COVID - 19 pandemic on our ability to grow market share ; our ability to respond to general economic conditions and the health of the U.S. residential real estate industry . The foregoing list of factors is not exhaustive . You should carefully consider the foregoing factors and the other risks and uncertainties described under the caption " Risk Factors " in our annual report on Form 10 - K filed with the Securities and Exchange Commission ( the " SEC " ) on March 4 , 2021 , as updated by our Quarterly Reports on Form 10 - Q for the quarterly periods