Opendoor revenue bounces back in Q1

Opendoor had some good news to share in its second earnings call as a publicly traded company.

The company reported $747 million in revenue in the first quarter of 2021, an increase of 200 percent from the previous quarter, it announced Tuesday. The earnings were a result of Opendoor reselling 2,462 homes, a 190 percent jump from the previous quarter.

The quarterly growth was driven by more homes on the market and transactions moving at a faster pace, according to chief financial officer Carrie Wheeler. The average resale price was also higher, due to low rates, a record low number of homes available and pent-up demand.

“Our teams are working hard and are focused on expanding the buybox and launching new markets,” said Eric Wu, Opendoor CEO and founder. “We’re expanding the types of homes we’re operating in, the different price points, and really the goal is to serve every home in all the markets we offer it in.”

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Still, Opendoor’s first quarter revenue was down from the same period last year, when revenue hit $1.25 billion. Its net loss during the first quarter of 2021 was $270 million, up from $63 million during the first quarter of 2020.

The company also announced that it expanded into six new markets in the first quarter, including San Diego, California, and Asheville, North Carolina. It’s on track to reach its goal of being in 42 markets by the end of the year.

The company bought 3,594 homes, a 24 percent year-over-year increase and a 78 percent increase from the fourth quarter. Offer requests were up 175 percent, and buybox coverage increased by 25 percent from the fourth quarter of 2020.

Opendoor is a leader in the nascent-but-growing iBuyer sector. It makes cash offers for homes, and recently launched a program that helps buyers land homes by providing the capital upfront. It went public in December after merging with a blank-check firm backed by investor Chamath Palihapitiya.