Christie Il Klok | The New York Times
Opendoor jumped 16% after hours to $ 22.48. Before the post-market rally, the stock was down 1% for the year.
Revenue for the quarter reached $ 2.27 billion, up from $ 338.6 million a year earlier, when the Covid-19 pandemic temporarily froze transactions. Revenue was up 91% from the second quarter and topped analysts’ average estimate of $ 2.01 billion, according to Refinitiv.
Founded in 2014, Opendoor pioneered the Instant Buy Market, or iBuying, by allowing homeowners to sell their homes for cash without listing it on the market and facing a lengthy auction and auction process. fencing. The company went public in December through an ad hoc acquisition company.
Zillow began testing the iBuying market in 2017 and took a leap forward two years later when he started buying and selling in Southern California. The business operated at first, but ran into major issues this year as massive fluctuations in house prices undermined Zillow’s predictive models and ultimately left the business spending more on properties than it could afford. to sell.
Zillow shares fell 25% after the announced exit from the market last week, and the company said it was cutting a quarter of its workforce. The stock has lost more than two-thirds of its value since its peak in mid-February.
“We’re really good for the prices,” Wheeler said. “We’ve been doing it for seven years. It’s at the heart of what we do. We focus on data. “
In addition to beating earnings estimates, Opendoor’s loss of 9 cents per share was lower than analysts’ expected 17-cent loss. And for the fourth quarter, Opendoor is forecasting revenue of $ 3.1 billion to $ 3.2 billion, beating analysts’ average estimate of $ 2.92 billion, according to Refinitv.
Opendoor sold 5,988 homes during the period, up 72% from the second quarter, and purchased 15,181 homes, an increase of 79% from the previous period.
“We came out of the top of our forecasts, mainly due to unit volumes driven by strong growth in home acquisitions and the overall strength of housing demand, which led to a faster than expected sales rate”, Wheeler said when calling the results after the report.
LOOK: Zillow CEO on Exiting Home Turnaround Business