This Was the Most Important Update in Opendoor's Earnings Report
Key Points
Opendoor is increasing acquisitions and has more homes under contract.
Although there's been limited time under the new plan, homes are selling faster.
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Opendoor Technologies (NASDAQ: OPEN) released a fourth-quarter earnings report that largely impressed investors last week. Although there's still a steep climb higher, you can see the light at the end of the tunnel.
There were several positive updates about how the business is recovering, but there was one that stood out.
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One of the highlights included a 46% increase sequentially in homes bought, driving higher volume to increase scale and get closer to profitability. October was the first full month under new CEO Kaz Nejatian's new growth strategy, and it was the company's most profitable October on record. The October acquisition cohort is already 50% sold or under contract, twice as much year over year.
But the metric that I found the most impressive was the percentage of homes on the market for more than 120 days. That number fell from 51% at the end of the third quarter to 33% at the end of the fourth quarter. This metric has a longer time frame than many of the other excellent ones, which were mostly focused on the month of October. While they're likely to be emulated, those are still a tiny slice of what else is going on.
The fourth-quarter report was strong, and it looks like there could be a recovery in progress. If Opendoor can continue on this trajectory, it could offer explosive opportunities for investors.
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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