iBuyers Opendoor and Offerpad have reported losses in their first quarter of business in 2024.
Both companies released their quarterly earnings report in the first week of May, with losses across the board.
Opendoor
This billion dollar iBuying company experienced a revenue dip in the first quarter of this financial year. They recorded a $109 million loss, which is just a smidge better than $101 million in Q1 of 2023.
Here’s a closer look at Opendoor’s year-on-year financials-
Total revenue generated in Q1 of 2024: $1.18 billion, down 62 percent from last year’s $3.12 billion.
Total homes acquired in Q1 of 2024: 3,458 units; up 98 percent from last year’s 1747 units.
Total homes sold: 3078 units, down 63 percent from last year’s 8274 units.
Gross profit per home sold: Not disclosed.
Opendoor has predicted a slightly better second quarter of 2024 with $1.4 Bn to $1.5 Bn revenue generation.
Offerpad
Their quarterly financials paint a somewhat uncertain but hopeful picture for Offerpad. It reported a loss of $17.5 million in the first quarter. This is a significant dip of 71 percent from last year’s $59.4 million.
Here’s a closer look at their year-on-year financials-
Total revenue generated Q1 of 2024: $285.4 million; down 53 percent from last year’s $609.6 million.
Total homes acquired: 806 units; up 121 percent from last year’s 364 units.
Total homes sold: 847 units; down 47 percent from last year’s 1,609 units.
Gross profit per home sold: $26,700, up 489 percent from last year’s $4,500.
Offerpad forecasts a better Q2 in terms of selling homes. It projects the selling of approximately 750-875 homes in the next three months. They also project a similar revenue generation of $250 M to $300 M like the first quarter.
