Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39253 | |
Entity Registrant Name | Opendoor Technologies Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-1515020 | |
Entity Address, Address Line One | 410 N. Scottsdale Road, | |
Entity Address, Address Line Two | Suite 1600 | |
Entity Address, City or Town | Tempe, | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85281 | |
City Area Code | 415 | |
Local Phone Number | 896-6737 | |
Title of 12(b) Security | Common stock, $0.0001 par value per share | |
Trading Symbol | OPEN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 612,612,711 | |
Entity Central Index Key | 0001801169 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 1,358,775 | $ 1,412,665 | |
Restricted cash | 484,476 | 92,863 | |
Marketable securities | 481,051 | 47,637 | |
Mortgage loans held for sale pledged under agreements to repurchase | 22,858 | 7,529 | |
Escrow receivable | 121,394 | 1,494 | |
Real estate inventory, net | 6,268,081 | 465,936 | |
Other current assets ($616 and $373 carried at fair value) | 84,365 | 24,987 | |
Total current assets | 8,821,000 | 2,053,111 | |
PROPERTY AND EQUIPMENT – Net | 38,321 | 29,228 | |
RIGHT OF USE ASSETS | 43,800 | 49,517 | |
GOODWILL | 47,158 | 30,945 | |
INTANGIBLES – Net | 11,494 | 8,684 | |
OTHER ASSETS ($5,100 and $0 carried at fair value) | 6,842 | 4,097 | |
TOTAL ASSETS | [1] | 8,968,615 | 2,175,582 |
CURRENT LIABILITIES: | |||
Accounts payable and other accrued liabilities | 156,030 | 25,270 | |
Non-recourse asset-backed debt - current portion | 4,049,812 | 339,173 | |
Other secured borrowings | 19,728 | 7,149 | |
Interest payable | 9,746 | 1,081 | |
Lease liabilities - current portion | 4,637 | 20,716 | |
Total current liabilities | 4,239,953 | 393,389 | |
NON-RECOURSE ASSET-BACKED DEBT – Net of current portion | 1,367,989 | 135,467 | |
CONVERTIBLE SENIOR NOTES | 952,415 | 0 | |
WARRANT LIABILITIES | 0 | 47,349 | |
LEASE LIABILITIES – Net of current portion | 43,073 | 46,625 | |
OTHER LIABILITIES | 2,324 | 94 | |
Total liabilities | [2] | 6,605,754 | 622,924 |
Commitments and Contingencies | |||
SHAREHOLDERS’ EQUITY: | |||
Common stock, $0.0001 par value; 3,000,000,000 shares authorized; 607,215,233 and 540,714,692 shares issued and outstanding, respectively | 60 | 54 | |
Additional paid-in capital | 3,877,418 | 2,596,012 | |
Accumulated deficit | (1,514,509) | (1,043,449) | |
Accumulated other comprehensive (loss) income | (108) | 41 | |
Total shareholders’ equity | 2,362,861 | 1,552,658 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 8,968,615 | $ 2,175,582 | |
[1] | The Company’s consolidated assets at September 30, 2021 and December 31, 2020 include the following assets of certain variable interest entities (“VIEs”) that can only be used to settle the liabilities of those VIEs: Cash and cash equivalents, $11,567 and $15,849; Restricted cash, $475,305 and $81,408; Real estate inventory, net, $6,131,362 and $460,680; Escrow receivable, $102,685 and $1,364; Other current assets, $39,253 and $5,365; and Total assets of $6,760,172 and $564,666, respectively. | ||
[2] | The Company’s consolidated liabilities at September 30, 2021 and December 31, 2020 include the following liabilities for which the VIE creditors do not have recourse to Opendoor: Accounts payable and other accrued liabilities, $66,134 and $2,335; Interest payable, $9,413 and $1,059; Current portion of non-recourse asset-backed debt, $4,049,812 and $339,173; Non-recourse asset-backed debt, net of current portion, $1,367,989 and $135,467; and Total liabilities, $5,493,348 and $478,034, respectively. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Statement of Financial Position [Abstract] | |||
Other current assets, carried at fair value | $ 616 | $ 373 | |
Other assets, carried at fair value | $ 5,100 | $ 0 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock authorized (in shares) | 3,000,000,000 | 3,000,000,000 | |
Common stock issued (in dollars per share) | 607,215,233 | 540,714,692 | |
Common stock outstanding (in dollars per share) | 607,215,233 | 540,714,692 | |
Cash and cash equivalents | $ 1,358,775 | $ 1,412,665 | |
Restricted cash | 484,476 | 92,863 | |
Real estate inventory, net | 6,268,081 | 465,936 | |
Escrow receivable | 121,394 | 1,494 | |
Other current assets ($616 and $373 carried at fair value) | 84,365 | 24,987 | |
TOTAL ASSETS | [1] | 8,968,615 | 2,175,582 |
Accounts payable and other accrued liabilities | 156,030 | 25,270 | |
Interest payable | 9,746 | 1,081 | |
Non-recourse asset-backed debt - current portion | 4,049,812 | 339,173 | |
NON-RECOURSE ASSET-BACKED DEBT – Net of current portion | 1,367,989 | 135,467 | |
Total liabilities | [2] | 6,605,754 | 622,924 |
Variable Interest Entity, Primary Beneficiary | |||
Cash and cash equivalents | 11,567 | 15,849 | |
Restricted cash | 475,305 | 81,408 | |
Real estate inventory, net | 6,131,362 | 460,680 | |
Escrow receivable | 102,685 | 1,364 | |
Other current assets ($616 and $373 carried at fair value) | 39,253 | 5,365 | |
TOTAL ASSETS | 6,760,172 | 564,666 | |
Accounts payable and other accrued liabilities | 66,134 | 2,335 | |
Interest payable | 9,413 | 1,059 | |
Non-recourse asset-backed debt - current portion | 4,049,812 | 339,173 | |
NON-RECOURSE ASSET-BACKED DEBT – Net of current portion | 1,367,989 | 135,467 | |
Total liabilities | $ 5,493,348 | $ 478,034 | |
[1] | The Company’s consolidated assets at September 30, 2021 and December 31, 2020 include the following assets of certain variable interest entities (“VIEs”) that can only be used to settle the liabilities of those VIEs: Cash and cash equivalents, $11,567 and $15,849; Restricted cash, $475,305 and $81,408; Real estate inventory, net, $6,131,362 and $460,680; Escrow receivable, $102,685 and $1,364; Other current assets, $39,253 and $5,365; and Total assets of $6,760,172 and $564,666, respectively. | ||
[2] | The Company’s consolidated liabilities at September 30, 2021 and December 31, 2020 include the following liabilities for which the VIE creditors do not have recourse to Opendoor: Accounts payable and other accrued liabilities, $66,134 and $2,335; Interest payable, $9,413 and $1,059; Current portion of non-recourse asset-backed debt, $4,049,812 and $339,173; Non-recourse asset-backed debt, net of current portion, $1,367,989 and $135,467; and Total liabilities, $5,493,348 and $478,034, respectively. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
REVENUE | $ 2,266,354 | $ 338,613 | $ 4,199,014 | $ 2,334,235 |
COST OF REVENUE | 2,063,865 | 302,802 | 3,740,622 | 2,152,803 |
GROSS PROFIT | 202,489 | 35,811 | 458,392 | 181,432 |
OPERATING EXPENSES: | ||||
Sales, marketing and operations | 153,496 | 27,336 | 319,087 | 156,290 |
General and administrative | 90,105 | 40,168 | 502,800 | 99,074 |
Technology and development | 27,295 | 13,184 | 102,360 | 45,809 |
Total operating expenses | 270,896 | 80,688 | 924,247 | 301,173 |
LOSS FROM OPERATIONS | (68,407) | (44,877) | (465,855) | (119,741) |
DERIVATIVE AND WARRANT FAIR VALUE ADJUSTMENT | 3,499 | (24,329) | 12,179 | (25,219) |
INTEREST EXPENSE | (43,550) | (12,376) | (70,375) | (57,393) |
OTHER INCOME – Net | 51,965 | 764 | 53,601 | 3,619 |
LOSS BEFORE INCOME TAXES | (56,493) | (80,818) | (470,450) | (198,734) |
INCOME TAX EXPENSE | (326) | (35) | (610) | (234) |
NET LOSS | $ (56,819) | $ (80,853) | $ (471,060) | $ (198,968) |
Net loss per share attributable to common shareholders: | ||||
Basic (in dollars per share) | $ (0.09) | $ (0.91) | $ (0.80) | $ (2.32) |
Diluted (in dollars per share) | $ (0.09) | $ (0.91) | $ (0.80) | $ (2.32) |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 603,389,000 | 89,070,000 | 585,854,000 | 85,907,000 |
Diluted (in shares) | 603,389,000 | 89,070,000 | 585,854,000 | 85,907,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Other Comprehensive Income [Abstract] | ||||
NET LOSS | $ (56,819) | $ (80,853) | $ (471,060) | $ (198,968) |
OTHER COMPREHENSIVE INCOME: | ||||
Unrealized (loss) gain on marketable securities | (106) | (158) | (147) | 126 |
Currency translation adjustment | (2) | 0 | (2) | 0 |
COMPREHENSIVE LOSS | $ (56,927) | $ (81,011) | $ (471,209) | $ (198,842) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Restricted Shares | RSUs | Common Stock | Common StockRestricted Shares | Common StockRSUs | Additional Paid-in Capital | Additional Paid-in CapitalRestricted Shares | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Series A Convertible Preferred Stock | Series B Convertible Preferred Stock | Series C Convertible Preferred Stock | Series D Convertible Preferred Stock | Series D Convertible Preferred StockAdditional Paid-in Capital | Series E Convertible Preferred Stock |
Temporary equity, shares outstanding, beginning balance (in shares) at Dec. 31, 2019 | 40,089,513 | 23,840,816 | 29,070,700 | 63,470,884 | 157,952,523 | |||||||||||
Temporary equity, beginning balance at Dec. 31, 2019 | $ 9,763 | $ 20,049 | $ 80,519 | $ 257,951 | $ 1,013,220 | |||||||||||
Temporary equity, shares outstanding, ending balance (in shares) at Sep. 30, 2020 | 40,089,513 | 23,840,816 | 29,070,700 | 63,470,884 | 157,952,523 | |||||||||||
Temporary equity, ending balance at Sep. 30, 2020 | $ 9,763 | $ 20,049 | $ 80,519 | $ 257,951 | $ 1,013,220 | |||||||||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2019 | 83,748,443 | |||||||||||||||
Shareholders' deficit, beginning balance at Dec. 31, 2019 | $ (733,103) | $ 0 | $ 57,362 | $ (790,483) | $ 18 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of issuer stock rights in extinguishment of the 2019 Convertible Notes | $ 212,940 | $ 212,940 | ||||||||||||||
Vesting of restricted stock (in shares) | 1,123,200 | |||||||||||||||
Vesting of restricted stock | 95 | 95 | ||||||||||||||
Exercise of stock options (in shares) | 611,204 | |||||||||||||||
Exercise of stock options | 1,098 | 1,098 | ||||||||||||||
Stock-based compensation | 9,162 | 9,162 | ||||||||||||||
Other comprehensive gain | 126 | 126 | ||||||||||||||
Net loss | (198,968) | (198,968) | ||||||||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2020 | 85,482,847 | |||||||||||||||
Shareholders' deficit, ending balance at Sep. 30, 2020 | (708,650) | $ 0 | 280,657 | (989,451) | 144 | |||||||||||
Temporary equity, shares outstanding, beginning balance (in shares) at Jun. 30, 2020 | 40,089,513 | 23,840,816 | 29,070,700 | 63,470,884 | 157,952,523 | |||||||||||
Temporary equity, beginning balance at Jun. 30, 2020 | $ 9,763 | $ 20,049 | $ 80,519 | $ 257,951 | $ 1,013,220 | |||||||||||
Temporary equity, shares outstanding, ending balance (in shares) at Sep. 30, 2020 | 40,089,513 | 23,840,816 | 29,070,700 | 63,470,884 | 157,952,523 | |||||||||||
Temporary equity, ending balance at Sep. 30, 2020 | $ 9,763 | $ 20,049 | $ 80,519 | $ 257,951 | $ 1,013,220 | |||||||||||
Shares outstanding, beginning balance (in shares) at Jun. 30, 2020 | 84,983,061 | |||||||||||||||
Shareholders' deficit, beginning balance at Jun. 30, 2020 | (843,519) | $ 0 | 64,777 | (908,598) | 302 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of issuer stock rights in extinguishment of the 2019 Convertible Notes | $ 212,940 | $ 212,940 | ||||||||||||||
Vesting of restricted stock (in shares) | 336,665 | |||||||||||||||
Vesting of restricted stock | 21 | 21 | ||||||||||||||
Exercise of stock options (in shares) | 163,121 | |||||||||||||||
Exercise of stock options | 397 | 397 | ||||||||||||||
Stock-based compensation | 2,522 | 2,522 | ||||||||||||||
Other comprehensive gain | (158) | (158) | ||||||||||||||
Net loss | (80,853) | (80,853) | ||||||||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2020 | 85,482,847 | |||||||||||||||
Shareholders' deficit, ending balance at Sep. 30, 2020 | (708,650) | $ 0 | 280,657 | (989,451) | 144 | |||||||||||
Temporary equity, shares outstanding, beginning balance (in shares) at Dec. 31, 2020 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Temporary equity, beginning balance at Dec. 31, 2020 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||
Temporary equity, shares outstanding, ending balance (in shares) at Sep. 30, 2021 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Temporary equity, ending balance at Sep. 30, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2020 | 540,714,692 | |||||||||||||||
Shareholders' deficit, beginning balance at Dec. 31, 2020 | 1,552,658 | $ 54 | 2,596,012 | (1,043,449) | 41 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of stock (in shares) | 32,817,421 | |||||||||||||||
Issuance of stock | 857,194 | $ 3 | 857,191 | |||||||||||||
Vesting of restricted stock (in shares) | 979,198 | 17,712,282 | ||||||||||||||
Vesting of restricted stock | $ 56 | $ 1 | $ 1 | $ 56 | ||||||||||||
Common stock issued upon exercise of warrants (in shares) | 8,200,151 | |||||||||||||||
Common stock issued upon exercise of warrants | $ 57,573 | $ 1 | 57,572 | |||||||||||||
Exercise of stock options (in shares) | 6,791,000 | 6,791,489 | ||||||||||||||
Exercise of stock options | $ 11,269 | $ 1 | 11,268 | |||||||||||||
Purchases of Capped Calls related to the 2026 Notes | (118,766) | (118,766) | ||||||||||||||
Stock-based compensation | 474,085 | 474,085 | ||||||||||||||
Other comprehensive gain | (149) | (149) | ||||||||||||||
Net loss | (471,060) | (471,060) | ||||||||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2021 | 607,215,233 | |||||||||||||||
Shareholders' deficit, ending balance at Sep. 30, 2021 | 2,362,861 | $ 60 | 3,877,418 | (1,514,509) | (108) | |||||||||||
Temporary equity, shares outstanding, beginning balance (in shares) at Jun. 30, 2021 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Temporary equity, beginning balance at Jun. 30, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||
Temporary equity, shares outstanding, ending balance (in shares) at Sep. 30, 2021 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Temporary equity, ending balance at Sep. 30, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||
Shares outstanding, beginning balance (in shares) at Jun. 30, 2021 | 593,838,919 | |||||||||||||||
Shareholders' deficit, beginning balance at Jun. 30, 2021 | 2,417,921 | $ 59 | 3,875,552 | (1,457,690) | 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Vesting of restricted stock (in shares) | 318,929 | 2,812,297 | ||||||||||||||
Vesting of restricted stock | $ 11 | $ 0 | $ 0 | $ 11 | ||||||||||||
Common stock issued upon exercise of warrants (in shares) | 7,695,674 | |||||||||||||||
Common stock issued upon exercise of warrants | 51,772 | $ 1 | 51,771 | |||||||||||||
Exercise of stock options (in shares) | 2,549,414 | |||||||||||||||
Exercise of stock options | 4,532 | $ 0 | 4,532 | |||||||||||||
Purchases of Capped Calls related to the 2026 Notes | (118,766) | (118,766) | ||||||||||||||
Stock-based compensation | 64,318 | 64,318 | ||||||||||||||
Other comprehensive gain | (108) | (108) | ||||||||||||||
Net loss | (56,819) | (56,819) | ||||||||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2021 | 607,215,233 | |||||||||||||||
Shareholders' deficit, ending balance at Sep. 30, 2021 | $ 2,362,861 | $ 60 | $ 3,877,418 | $ (1,514,509) | $ (108) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
NET LOSS | $ (471,060) | $ (198,968) |
Adjustments to reconcile net loss to cash, cash equivalents, and restricted cash (used in) provided by operating activities: | ||
Depreciation and amortization – net of accretion | 26,551 | 31,114 |
Amortization of right of use asset | 6,055 | 22,008 |
Impairment of software development costs | 3,227 | 0 |
Stock-based compensation | 465,059 | 9,162 |
Derivative and warrant fair value adjustment | (12,179) | 1,901 |
Gain on settlement of lease liabilities | (5,237) | 0 |
Inventory valuation adjustment | 32,602 | 7,517 |
Changes in fair value of derivative instruments | (243) | 22,568 |
Changes in fair value of marketable equity securities | (51,013) | 0 |
Payment-in-kind interest | 0 | 3,910 |
Dividend-in-kind | 264 | 0 |
Net fair value adjustments and gain (loss) on sale of mortgage loans held for sale | (3,144) | (2,131) |
Origination of mortgage loans held for sale | (153,789) | (88,098) |
Proceeds from sale and principal collections of mortgage loans held for sale | 141,624 | 78,360 |
Changes in operating assets and liabilities: | ||
Escrow receivable | (119,900) | 11,241 |
Real estate inventories | (5,805,802) | 1,146,798 |
Other assets | (50,202) | 793 |
Accounts payable and other accrued liabilities | 102,310 | 3,355 |
Interest payable | 3,183 | (2,530) |
Lease liabilities | (11,864) | (9,646) |
Net cash (used in) provided by operating activities | (5,903,558) | 1,037,354 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (22,878) | (12,068) |
Purchase of intangible assets | (790) | 0 |
Purchase of marketable securities | (458,585) | (174,530) |
Proceeds from sales, maturities, redemptions and paydowns of marketable securities | 85,638 | 135,778 |
Purchase of non-marketable equity securities | (15,100) | 0 |
Acquisitions, net of cash acquired | (20,110) | 0 |
Net cash used in investing activities | (431,825) | (50,820) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of convertible senior notes, net of issuance costs | 953,066 | 0 |
Purchase of capped calls related to the convertible senior notes | (118,766) | 0 |
Proceeds from exercise of stock options | 11,268 | 1,078 |
Proceeds from warrant exercise | 22,402 | 0 |
Proceeds from the February 2021 Offering | 886,067 | 0 |
Issuance cost of common stock | (28,876) | 0 |
Proceeds from non-recourse asset-backed debt | 7,782,076 | 912,082 |
Principal payments on non-recourse asset-backed debt | (2,837,436) | (1,949,165) |
Proceeds from other secured borrowings | 150,748 | 85,996 |
Principal payments on other secured borrowings | (138,169) | (74,720) |
Payment of loan origination fees and debt issuance costs | (9,274) | (3,068) |
Net cash provided by (used in) financing activities | 6,673,106 | (1,027,797) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 337,723 | (41,263) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – Beginning of period | 1,505,528 | 684,822 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – End of period | 1,843,251 | 643,559 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION – Cash paid during the period for interest | 57,151 | 47,977 |
DISCLOSURES OF NONCASH FINANCING ACTIVITIES: | ||
Issuance of issuer stock rights in extinguishment of the 2019 Convertible Notes | 0 | 212,940 |
Issuance of common stock in extinguishment of warrant liabilities | (35,170) | 0 |
RECONCILIATION TO CONDENSED CONSOLIDATED BALANCE SHEETS: | ||
Cash and cash equivalents | 1,358,775 | 469,365 |
Restricted cash | 484,476 | 174,194 |
Cash, cash equivalents and restricted cash | $ 1,843,251 | $ 643,559 |
DESCRIPTION OF BUSINESS AND ACC
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES Description of Business Opendoor Technologies Inc. (the “Company” and “Opendoor”) including its consolidated subsidiaries and certain variable interest entities (“VIEs”), is a leading digital platform for buying and selling homes. Opendoor streamlines the home selling and buying transaction and creates an end-to-end experience online. The Company was incorporated in Delaware on December 30, 2013. Correction of Prior Period Amounts On April 12, 2021, subsequent to the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, the Acting Director of the Division of Corporation Finance and the Acting Chief Accountant of the SEC issued a Staff Statement (the “Staff Statement”) on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”). The Company took into consideration the guidance in the Staff Statement and Accounting Standards Codification 815-40, Derivatives and Hedging-Contracts in Entity’s Own Equity ("ASC 815-40") and evaluated the Public and Sponsor Warrants (each as defined herein and collectively the "Warrants"). The Warrants were issued in a private placement simultaneously with the closing of the initial public offering of Social Capital Hedosophia Holdings Corp. II (“SCH”), assumed by the Company through the Business Combination (as defined herein) on December 18, 2020, and classified in shareholders' equity as of and for the year ended December 31, 2020. While the Company concluded the Public Warrants meet the criteria to continue to be classified in shareholders' equity, the Company concluded the Sponsor Warrants do not meet the scope exception from derivative accounting prescribed by ASC 815-40 and should therefore be recorded as a liability on the Company’s consolidated balance sheet at fair value as of the closing of the Business Combination, with subsequent changes in their fair value recognized in the Company’s condensed consolidated statement of operations at each reporting date. The accounting for the Sponsor Warrants does not impact the Company's financial statements in any reporting periods prior to the Business Combination, as the Company assumed the Warrants through the Business Combination which was accounted for as a reverse recapitalization. The fair value of the Sponsor Warrants as of the Closing Date on December 18, 2020 and December 31, 2020 amounted to $81.1 million and $47.3 million, respectively. The change in fair value from the Closing Date through December 31, 2020 amounted to a gain of $33.8 million. The impact of the misstatement as of December 31, 2020 resulted in an understatement of the warrant liability of $47.3 million, and an overstatement of accumulated deficit and additional paid-in capital of $33.8 million and $81.1 million respectively. The Company evaluated the impact of error related to the accounting treatment of Sponsor Warrants with respect to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and determined, based on consideration of quantitative and qualitative factors, that the error had an immaterial impact, individually and in aggregate. As such, the Company corrected its accounting for Sponsor Warrants in its Quarterly Report on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021. The following table provides the impact of the correction on the Company's consolidated balance sheet as of December 31, 2020, as presented herein (in thousands): Previously Stated Adjustments As Corrected Warrant liabilities $ — 47,349 $ 47,349 Total liabilities $ 575,575 47,349 $ 622,924 Additional paid-in capital $ 2,677,155 (81,143) $ 2,596,012 Accumulated deficit (1,077,243) 33,794 (1,043,449) Total shareholders' equity $ 1,600,007 (47,349) $ 1,552,658 Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to generally accepted accounting principles in the United States of America (“GAAP”). The condensed consolidated financial statements as of September 30, 2021 and December 31, 2020 and for the three and nine month periods ended September 30, 2021 and 2020 include the accounts of Opendoor, its wholly owned subsidiaries and VIEs where the Company is the primary beneficiary. The accompanying unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements herein. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period's presentation. As a result of the Business Combination completed on December 18, 2020, prior period share and per share amounts presented in the accompanying condensed consolidated financial statements and these related notes have been retroactively converted. See “ Note 2— Business Combination” for additional information. The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“Annual Report”) filed on March 4, 2021. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ materially from such estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the fair value of common stock, share-based awards, warrants, derivatives, convertible senior notes, and inventory impairment (“real estate inventory valuation adjustment”). Management believes that the estimates and judgments upon which they rely are reasonable based upon information available to them at the time that these estimates and judgments are made. To the extent that there are material differences between these estimates and actual results, the Company’s financial statements will be affected. The COVID-19 pandemic introduced significant additional uncertainties with respect to estimates, judgments and assumptions, which may materially impact these estimates. Significant Risks and Uncertainties The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, the Company believes that changes in any of the following areas could have a significant negative effect on the Company in terms of its future financial position, results of operations or cash flows: public health crises, like the COVID-19 pandemic; its rates of revenue growth; its ability to manage inventory; engagement and usage of its products; the effectiveness of its investment of resources to pursue strategies; competition in its market; the stability of the residential real estate market; the impact of interest rate changes on demand and its costs; changes in technology, products, markets or services by the Company or its competitors; the addition or loss of significant customers; its ability to maintain or establish relationships with listings and data providers; its ability to obtain or maintain licenses and permits to support its current and future businesses; actual or anticipated changes to its products and services; changes in government regulation affecting its business; the outcomes of legal proceedings; natural disasters and catastrophic events; scaling and adaptation of existing technology and network infrastructure; its management of its growth; its ability to attract and retain qualified employees and key personnel; its ability to successfully integrate and realize the benefits of its past or future strategic acquisitions or investments; the protection of customers’ information and other privacy concerns; the protection of its brand and intellectual property; and intellectual property infringement and other claims, among other things. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, investments in marketable securities, and mortgage loans held for sale pledged under agreements to repurchase (“MLHFS”). The Company places cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, in order to limit exposure of the Company’s investments. Similarly, the Company’s credit risk on mortgage loans held for sale is mitigated due to a large number of customers. Further, the Company’s credit risk on mortgage loans held for sale is mitigated by the fact that the Company typically sells mortgages on the secondary market within a relatively short period of time after which the Company’s exposure is limited to borrower defaults within the initial few months of the mortgage. The Company’s significant accounting policies are discussed in “Part II – Item 8 – Financial Statements and Supplementary Data – Note 1. Description of Business and Accounting Policies” in the Annual Report. There have been no changes to these significant accounting policies for the nine month period ended September 30, 2021, except as noted below. Marketable Securities The Company's investments in marketable securities consist of debt securities classified as available-for-sale as well as marketable equity securities. The Company's available-for-sale debt securities are measured at fair value with unrealized gains and losses included in Accumulated other comprehensive income (loss) in shareholder's equity and realized gains and losses included in Other income. The Company's marketable equity securities are measured at fair value with changes in fair value recognized in Other income. See “Note 4 — Cash, Cash Equivalents, and Investments” for further discussion. Convertible Senior Notes The 0.25% convertible senior notes due in 2026 (the "2026 Notes") issued by the Company are accounted for wholly as debt in accordance with ASU 2020-06. The 2026 Notes have an initial carrying value equal to the net proceeds from issuance. Issuance costs associated with the 2026 Notes are amortized over the term using the effective interest method. Conversions are settled through payment of cash or a combination of cash and stock, at the Company's option. Upon conversion, the carrying amount of the 2026 Notes, including any unamortized debt issuance costs, is reduced by cash paid, with any difference being reflected as a change in equity. There will not be any gains or losses recognized upon a conversion. Capped Calls The Company purchased certain capped calls in connection with the issuance of the 2026 Notes in August 2021 which it expects to reduce potential dilution from conversions of the 2026 Notes. The capped calls were determined to be freestanding financial instruments that meet the criteria for classification in equity; as such, the capped calls were recorded as a reduction of Additional paid-in capital within shareholders' equity and will not be subsequently remeasured. Derivative Instruments The Company’s derivative instruments are comprised of interest rate caps, interest rate lock commitments (“IRLCs”), and embedded conversion options related to the convertible notes issued in 2019 (the "2019 Convertible Notes"). The Company’s derivative instruments are freestanding in nature and some are utilized as economic hedges. These derivative instruments are recorded at fair value with changes recognized as a gain or loss to operations. Beginning in 2021, the Company changed the fair value classification of IRLCs from Level 2 to Level 3 as the Company began to adjust observable input data for the estimated pull-through rate, a Company specific input that is unobservable to market participants. See “Note 5 — Derivative Instruments” and " Note 8 — Fair Value Disclosures " for further discussion. Non-marketable Equity Securities The Company's non-marketable equity securities are strategic investments in a privately held company. Non-marketable equity securities are investments that do not have a readily determinable fair value, which are measured at cost minus impairment, if any, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Measurement Alternative”). All gains and losses on these investments, realized and unrealized, are recorded in Other income-net on the Company's condensed consolidated statements of operations. The Company assesses whether an impairment loss on its non-marketable equity securities has occurred due to declines in fair value or other market conditions. If any impairment is identified for non-marketable equity securities, the Company writes down the investment to its fair value. Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and definite-lived intangible assets, among other long-term assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment loss is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. Impairment loss of $0.7 million and $4.2 million was recognized for the three and nine months ended September 30, 2021, respectively. Of these amounts, $0.7 million and $3.2 million are included in Technology and development for the three and nine months ended September 30, 2021, respectively, and $0.0 million and $1.0 million are included in General and administrative for the three and nine months ended September 30, 2021, respectively. There was no impairment loss recognized for the three months ended September 30, 2020 while impairment loss of $1.8 million was recognized for the nine months ended September 30, 2020. Of this amount, $0.9 million is included in Technology and development and $0.9 million is included in General and administrative. The impairment loss recognized for the three and nine months ended September 30, 2021 is related to abandonment of property and equipment, impairment and abandonment of certain internally developed software projects, and sublease of certain right of use assets. Public and Sponsor Warrants On April 30, 2020, SCH consummated its initial public offering of 41,400,000 units, consisting of one share of Class A common stock and one third of one warrant exercisable for Class A common stock, at a price of $10.00 per unit. Each whole warrant entitled the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, SCH completed the private sale of 6,133,333 warrants to SCH’s sponsor at a price of $1.50 per warrant (the “Sponsor Warrants”). Each Sponsor Warrant allowed the sponsor to purchase one share of Class A common stock at $11.50 per share. The Sponsor Warrants and shares of common stock issuable upon the exercise of Sponsor Warrants were not able to be transferred, assigned, or sold until 30 days after the completion of a Business Combination. Additionally, the Sponsor Warrants were eligible for cash and cashless exercises, at the holder’s option, and were redeemable only if the reference value, as defined in the Warrant Agreement, was less than $18.00 per share. If the Sponsor Warrants were held by someone other than the sponsors and certain permitted transferees, the Sponsor Warrants would have been redeemable and exercisable on the same basis as the Public Warrants. The Company evaluated the Public and Sponsor Warrants under ASC 815-40, Derivatives and Hedging-Contracts in Entity’s Own Equity , and concluded that the Sponsor Warrants do not meet the criteria to be classified in shareholders’ equity. Specifically, the exercise and settlement features for the Sponsor Warrants precluded them from being considered indexed to the Company’s own stock, given that a change in the holder of the Sponsor Warrants may alter the settlement of the Sponsor Warrants. Since the holder of the instrument is not an input to a standard option pricing model (a consideration with respect to the indexation guidance), the fact that a change in the holder could impact the value of the Sponsor Warrants means the Sponsor Warrants were not indexed to the Company’s own stock. Since the Sponsor Warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities on the balance sheet at fair value upon the consummation of the Business Combination, with subsequent changes in their respective fair values recognized in the condensed consolidated statement of operations at each reporting period. The Company concluded that the Public Warrants, which do not have the same exercise and settlement features as the Sponsor Warrants, meet the criteria to be classified in shareholders' equity. On June 9, 2021, the Company filed a notice of redemption of all outstanding Public Warrants and Sponsor Warrants. The end of the redemption period was July 9, 2021, at which time the Company redeemed all unexercised warrants at a price of $0.10 per Warrant. Recently Issued Accounting Standards Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, to simplify accounting for certain financial instruments. This guidance eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. The standard also amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. The Company adopted this ASU as of January 1, 2021 using the modified retrospective method. The adoption of this ASU did not have a material impact to the Company’s condensed consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04 which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Inter- Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. This guidance is optional for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. This guidance is effective from March 12, 2020 through December 31, 2022. Entities may elect to adopt the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Company may elect to take advantage of this optional guidance in its transition away from LIBOR within certain debt contracts. The Company is currently evaluating the impact of adopting this guidance on the Company's financial position, results of operations or cash flows. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION Opendoor Labs Inc. entered into a merger agreement (the “Merger Agreement”) with Social Capital Hedosophia Holdings Corp. II, (“SCH”) on September 15, 2020. Pursuant to the Merger Agreement, Hestia Merger Sub Inc., a newly formed subsidiary of SCH (“Merger Sub”), merged with and into Opendoor Labs Inc. Upon the completion of the transactions contemplated by the terms of the Merger Agreement (the “Closing”) on December 18, 2020, the separate corporate existence of Merger Sub ceased and Opendoor Labs Inc. survived the merger and became a wholly owned subsidiary of SCH. On December 18, 2020, SCH also filed a notice of deregistration with the Cayman Islands Registrar of Companies, together with the necessary accompanying documents, and filed a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which SCH was domesticated as a Delaware corporation, changing its name from “Social Capital Hedosophia Holdings Corp. II” to “Opendoor Technologies Inc.” These transactions are collectively referred to as the “Business Combination.” The Business Combination was accounted for as a reverse recapitalization whereby SCH was determined as the accounting acquiree and Opendoor Labs Inc. as the accounting acquirer. This accounting treatment is equivalent to Opendoor Labs Inc. issuing stock for the net assets of SCH, accompanied by a recapitalization whereby no goodwill or other intangible assets are recorded. Operations prior to the Business Combination are those of Opendoor Labs Inc. At the Closing, the Company received consideration of $376.6 million in cash as a result of the reverse recapitalization. In connection with the Business Combination, SCH entered into subscription agreements with certain investors, whereby it issued 60,005,000 shares of common stock at $10.00 per share (“PIPE Shares”) for an aggregate purchase price of $600.1 million (“PIPE Investment”), which closed simultaneously with the consummation of the Business Combination. Upon the Closing, the PIPE Shares were automatically converted into shares of the Company's common stock on a one-for-one basis. Upon the Closing, holders of Opendoor Labs Inc. common stock received shares of Opendoor Technologies common stock in an amount determined by application of the exchange ratio of 1.618 (“Exchange Ratio”), which was based on Opendoor Labs Inc.’s implied price per share prior to the Business Combination. For periods prior to the Business Combination, the reported share and per share amounts have been retroactively converted (“Retroactive Conversion”) by applying the Exchange Ratio. In connection with the Business Combination, the Company incurred approximately $43.6 million of equity issuance costs, consisting of underwriting, legal, and other professional fees, which are recorded to additional paid-in capital as a reduction of proceeds. Other Acquisitions On September 3, 2021, the Company acquired 100% of the outstanding equity of Services Labs, Inc., including its consolidated subsidiaries (“Pro.com”), in exchange for $21.8 million in cash consideration. The Company acquired Pro.com, a construction project platform, for its technology and talent. Acquired intangible assets consist of developed technology valued at $4.2 million which will be amortized over one year. |
REAL ESTATE INVENTORY
REAL ESTATE INVENTORY | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
REAL ESTATE INVENTORY | REAL ESTATE INVENTORY The following table presents the components of inventory, net of applicable real estate inventory valuation adjustments, as of the dates presented (in thousands): September 30, December 31, Work-in-process $ 2,759,984 $ 183,004 Finished goods 3,508,097 282,932 Total real estate inventory $ 6,268,081 $ 465,936 |
CASH, CASH EQUIVALENTS, AND INV
CASH, CASH EQUIVALENTS, AND INVESTMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS, AND INVESTMENTS | CASH, CASH EQUIVALENTS, AND INVESTMENTS The amortized cost, gross unrealized gains and losses, and fair value of cash, cash equivalents, and marketable securities as of September 30, 2021 and December 31, 2020, are as follows (in thousands): September 30, 2021 Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 83,893 $ — $ — $ 83,893 $ 83,893 $ — Money market funds 974,657 — — 974,657 974,657 — Time deposit 300,225 — — 300,225 300,225 — Corporate debt securities 205,805 17 (120) 205,702 — 205,702 Mutual fund 200,264 — — 200,264 — 200,264 Equity securities 61,013 — — 61,013 — 61,013 Asset-backed securities 4,907 — (1) 4,906 — 4,906 Certificates of deposit 4,750 — — 4,750 — 4,750 Sovereign bonds 4,418 — (2) 4,416 — 4,416 Total $ 1,839,932 $ 17 $ (123) $ 1,839,826 $ 1,358,775 $ 481,051 December 31, 2020 Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 709,924 $ — $ — $ 709,924 $ 709,924 $ — Money market funds 618,197 — — 618,197 618,197 — Commercial paper 81,037 1 — 81,038 81,038 — Corporate debt securities 29,891 26 (2) 29,915 3,506 26,409 Asset-backed securities 12,518 19 (4) 12,533 — 12,533 U.S. agency securities 6,993 2 — 6,995 — 6,995 U.S. Treasury securities 1,700 — — 1,700 — 1,700 Total $ 1,460,260 $ 48 $ (6) $ 1,460,302 $ 1,412,665 $ 47,637 A summary of debt securities with unrealized losses aggregated by period of continuous unrealized loss is as follows (in thousands): Less than 12 Months 12 Months or Greater Total September 30, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 174,669 $ (120) $ — $ — $ 174,669 $ (120) Asset-backed securities 4,906 (1) — — 4,906 (1) Certificate of deposit 4,750 — — — 4,750 — Sovereign bonds 4,416 (2) — — 4,416 (2) Total $ 188,741 $ (123) $ — $ — $ 188,741 $ (123) Less than 12 Months 12 Months or Greater Total December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Commercial paper $ 19,296 $ — $ — $ — $ 19,296 $ — Corporate debt securities 7,538 (2) — — 7,538 (2) Asset-backed securities 4,611 (4) — — 4,611 (4) Total $ 31,445 $ (6) $ — $ — $ 31,445 $ (6) The scheduled contractual maturities of marketable securities as of September 30, 2021 are as follows (in thousands): September 30, 2021 Fair Value Within 1 Year After 1 Year through 5 Years Corporate debt securities $ 205,702 $ 58,452 $ 147,250 Asset-backed securities 4,906 2,044 2,862 Certificate of deposit 4,750 4,750 — Sovereign bonds 4,416 4,416 — Total $ 219,774 $ 69,662 $ 150,112 As of September 30, 2021, the Company had $5.1 million of non-marketable equity securities without a readily determinable fair value, measured using the Measurement Alternative. The Company did not record any adjustments to the carrying value of its non-marketable equity securities. As of December 31, 2020, the Company had no non-marketable equity securities without a readily determinable fair value. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company uses certain types of derivative instruments in the normal course of business and the Company’s use of derivatives includes interest rate caps to manage interest rate risk, IRLCs with respect to our MLHFS, and embedded conversion options with respect to the Company’s 2019 Convertible Notes. Derivative transactions can be measured in terms of notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which interest and other payments are determined. Interest Rate Caps The Company uses free-standing derivative instruments in the normal course of business as economic hedges to manage interest rate risks with respect to its variable senior credit facilities. The interest rate caps were carried at fair value in Other current assets with changes in fair value included in Other income. The Company’s interest rate cap position expired in November 2020. Interest Rate Lock Commitments In originating mortgage loans, the Company enters into IRLCs with prospective borrowers which are freestanding derivative instruments. IRLCs are a commitment that binds the Company, subject to loan underwriting and approval process, to fund the loan at a specified interest rate, regardless of fluctuations in the market interest rates between commitment date and funding date. The interest rate risk associated with the fluctuations in market interest rates between commitment date and funding date with respect to IRLCs is mitigated as the Company operates under the best effort basis whereby at the time of commitment, the Company enters into a sales commitment with a third-party for the same prospective loan. The fair value of interest rate lock commitments is presented in Other current assets. The change in fair value on IRLCs is a component of Other revenue. Embedded Conversion Options The Company bifurcated the embedded conversion features associated with the 2019 Convertible Notes. The 2019 Convertible Notes and the related bifurcated embedded conversion options were extinguished in September 2020. Prior to extinguishment, the embedded conversion options were measured at fair value and were presented in Derivative and warrant liabilities. The change in fair value of the embedded conversion options is a component of Derivative and warrant fair value adjustment. The following table presents the total notional amounts and fair values for the Company’s derivatives (in thousands): Notional Amount Fair Value Derivatives September 30, 2021 Asset Liability Interest rate lock commitments $ 34,146 $ 616 $ — Notional Amount Fair Value Derivatives December 31, 2020 Asset Liability Interest rate lock commitments $ 15,130 $ 373 $ — The following table presents the net gains and losses recognized on derivatives within the respective line items in the statement of operations for the periods indicated (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue $ (195) $ 222 $ 243 $ 753 Derivative and warrant fair value adjustment $ — $ (23,317) $ — $ (23,317) Other income, net $ — $ — $ — $ (4) |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company utilizes VIEs in the normal course of business to support the Company’s financing needs. The Company determines whether the Company is the primary beneficiary of a VIE at the time it becomes involved with the VIE and reconsiders that conclusion on an on-going basis. The Company established certain special purpose entities (“SPEs”) for the purpose of financing the Company’s purchase and renovation of real estate inventory through the issuance of asset-backed debt. The Company is the primary beneficiary of the various VIEs within these financing structures and consolidates these VIEs. The Company is determined to be the primary beneficiary based on its power to direct the activities that most significantly impact the economic outcomes of the SPEs through its role in designing the SPEs and managing the real estate inventory they purchase and sell. The Company has a potentially significant variable interest in the entities based upon the equity interest the Company holds in the VIEs. The following table summarizes the assets and liabilities related to the VIEs consolidated by the Company as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Assets Cash and cash equivalents $ 11,567 $ 15,849 Restricted cash 475,305 81,408 Real estate inventory 6,131,362 460,680 Other (1) 141,938 6,729 Total assets $ 6,760,172 $ 564,666 Liabilities Non-recourse asset-backed debt $ 5,417,801 $ 474,640 Other (2) 75,547 3,394 Total liabilities $ 5,493,348 $ 478,034 ________________ (1) Includes escrow receivable and other current assets. (2) Includes accounts payable and other accrued liabilities and interest payable. The creditors of the VIEs generally do not have recourse to the Company’s general credit solely by virtue of being creditors of the VIEs, with the exception of limited guarantees provided by an Opendoor subsidiary for credit facilities. See “Note 7 — Credit Facilities and Long-Term Debt” for further discussion of the recourse obligations with respect to the VIEs. |
CREDIT FACILITIES AND LONG-TERM
CREDIT FACILITIES AND LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES AND LONG-TERM DEBT | CREDIT FACILITIES AND LONG-TERM DEBT The following tables summarize certain details related to the Company's credit facilities and long-term debt as of September 30, 2021 and December 31, 2020 (in thousands, except interest rates): Outstanding Amount September 30, 2021 Borrowing Capacity Current Non-Current Weighted Average Interest Rate End of Revolving / Withdrawal Period Final Maturity Date Non-Recourse Asset-Backed Debt: Asset-Backed Senior Credit Facilities Revolving Facility 2018-2 $ 1,000,000 $ 999,206 $ — 2.84 % September 23, 2022 December 23, 2022 Revolving Facility 2018-3 750,000 650,000 — 2.47 % May 26, 2024 May 26, 2024 Revolving Facility 2019-1 900,000 632,366 — 2.84 % June 30, 2023 June 30, 2023 Revolving Facility 2019-2 1,030,000 1,028,206 — 2.55 % July 8, 2023 July 8, 2023 Revolving Facility 2019-3 925,000 627,938 — 3.25 % August 22, 2022 August 21, 2023 Revolving Facility 2021-1 125,000 112,096 — 2.15 % October 31, 2022 October 31, 2022 Term Debt Facility 2021-S1 400,000 — 250,000 3.48 % April 1, 2024 April 1, 2025 Term Debt Facility 2021-S2 600,000 — 500,000 3.20 % September 10, 2024 September 10, 2025 Total $ 5,730,000 $ 4,049,812 $ 750,000 Issuance Costs (3,234) Carrying Value $ 746,766 Asset-Backed Mezzanine Term Debt Facilities Term Debt Facility 2016-M1 $ 324,000 $ — $ 324,000 10.00 % October 31, 2023 March 31, 2025 Term Debt Facility 2020-M1 300,000 — 300,000 10.00 % January 23, 2023 January 23, 2026 Total $ 624,000 $ — $ 624,000 Issuance Costs (2,777) Carrying Value $ 621,223 Total Non-Recourse Asset-Backed Debt $ 6,354,000 $ 4,049,812 $ 1,367,989 Recourse Debt - Other Secured Borrowings: Mortgage Financing Repo Facility 2019-R1 $ 100,000 $ 19,728 $ — 1.84 % May 26, 2022 May 26, 2022 Total Recourse Debt $ 100,000 $ 19,728 $ — Outstanding Amount December 31, 2020 Current Non-Current Weighted Average Interest Rate Non-Recourse Asset-Backed Debt: Asset-Backed Senior Credit Facilities Revolving Facility 2018-1 $ — $ — 4.28 % Revolving Facility 2018-2 — — 4.36 % Revolving Facility 2018-3 25,385 — 4.19 % Revolving Facility 2019-1 32,535 — 3.58 % Revolving Facility 2019-2 230,352 — 3.08 % Revolving Facility 2019-3 50,901 — 3.60 % Total $ 339,173 $ — Asset-Backed Mezzanine Term Debt Facilities Term Debt Facility 2016-M1 $ — $ 40,000 10.00 % Term Debt Facility 2020-M1 — 100,000 10.00 % Total $ — $ 140,000 Issuance Costs (4,533) Carrying Value $ 135,467 Total Non-Recourse Asset-Backed Debt $ 339,173 $ 135,467 Recourse Debt - Other Secured Borrowings: Mortgage Financing Repo Facility 2019-R1 $ 7,149 $ — 1.94 % Total Recourse Debt $ 7,149 $ — Non-Recourse Asset-backed Debt The Company utilizes inventory financing facilities consisting of asset-backed senior credit facilities and asset-backed mezzanine term debt facilities to provide financing for the Company’s real estate inventory purchases and renovation. The credit facilities are secured by the assets and equity of one or more SPEs. Each SPE is a consolidated subsidiary of Opendoor and a separate legal entity. Neither the assets nor credit of any such SPE are generally available to satisfy the debts and other obligations of any other Opendoor entities, except to the extent other Opendoor entities are also a party to the financing arrangements. These facilities are non-recourse to Opendoor and, with limited exceptions, non-recourse to other Opendoor subsidiaries. These SPEs are variable interest entities and Opendoor is determined to be the primary beneficiary based on its power to direct the activities that most significantly impact the economic outcomes of the entities through its role in designing the entities and managing the real estate inventory purchased and sold by the entities. The Company has potentially significant variable interest in the entities based upon the equity interest the Company holds in the VIEs. Asset-backed Senior Credit Facilities The Company classifies the senior revolving credit facilities as current liabilities on the Company’s condensed consolidated balance sheets as amounts drawn to acquire and renovate homes are required to be repaid as the related real estate inventory is sold, which the Company expects to occur within 12 months. The Company classifies its senior term debt facilities as long-term liabilities on the Company's condensed consolidated balance sheets because its borrowings under these facilities are generally not required to be repaid until the final maturity date. Undrawn borrowing capacity amounts under the senior credit facilities as reflected in the table above are in some cases not fully committed and any borrowings above the fully committed amounts are subject to the applicable lender’s discretion. As of September 30, 2021, the Company had fully committed borrowing capacity with respect to the Company’s senior credit facilities of $3,837.4 million. The total outstanding amount presented above includes $4,049.8 million of current liabilities and $750.0 million of non-current liabilities; the carrying value of the non-current liabilities is reduced by issuance costs of $3.2 million. Outstanding amounts drawn under each senior credit facility are required to be repaid on the facility maturity date or earlier if accelerated due to an event of default or other mandatory repayment event. The final maturity dates and revolving/withdrawal period end dates reflected in the table above are inclusive of any extensions that are at the sole discretion of the Company. These facilities may also have extensions subject to lender discretion that are not reflected in the table above. These borrowings are collateralized by cash, equity in the real estate owning SPEs, and the real estate inventory funded by the relevant facility. The lenders have legal recourse only to the real estate-owning SPE borrowers, certain SPE guarantors, and the assets securing the debt, and do not have general recourse to the Company. The senior revolving credit facilities are typically structured with an initial 24 month revolving period during which time amounts can be borrowed, repaid and borrowed again. The borrowing capacity is generally available until the end of the applicable revolving period as reflected in the table above. Borrowings under the senior revolving credit facilities accrue interest at a rate based on a LIBOR reference rate plus a margin that varies by facility. The Company may also pay fees on certain unused portions of the committed borrowing capacity, as defined in the respective credit agreements. The Company’s senior revolving credit facility arrangements typically include upfront fees that may be paid at execution of the applicable agreements or be earned at execution and payable over time. These facilities are generally fully prepayable at any time without penalty other than customary LIBOR breakage costs. The senior revolving credit facilities have aggregated borrowing bases, which increase or decrease based on the cost and value of the properties financed under a given facility and the time that those properties are in the Company’s possession. When the Company resells a home, the proceeds are used to reduce the outstanding balance under the related senior revolving credit facility. The borrowing base for a given facility may be reduced as properties age beyond certain thresholds and any borrowing base deficiencies may be satisfied through contributions of additional properties or partial repayment of the facility. The senior term debt facilities are typically structured with an initial 36 month withdrawal period during which the outstanding principal amounts are generally not required to be repaid when homes financed through those facilities are sold and instead are intended to remain outstanding until final maturity for each facility. Borrowings under the senior term debt facility accrue interest at a fixed rate. The Company's senior term debt facilities may include upfront issuance costs that are capitalized as part of the facilities' respective carrying values. These facilities are fully prepayable at any time but may be subject to certain customary prepayment penalties. The senior term debt facilities have aggregated property borrowing bases, which increase or decrease based on the cost and the value of the properties financed under the facilities, how long the Company has possessed such properties and the amount of cash collateral pledged by the SPE borrowers. The borrowing bases for the facilities may be reduced as properties age beyond certain thresholds and any borrowing base deficiencies may be satisfied through contributions of additional properties, cash or through partial repayment of the facilities. Asset-backed Mezzanine Term Debt Facilities The Company classifies its mezzanine term debt facilities as long-term liabilities on the Company’s condensed consolidated balance sheets because its borrowings under these facilities are generally not required to be repaid until the applicable final maturity date. These facilities are structurally and contractually subordinated to the related senior revolving credit facilities. As of September 30, 2021, there were no undrawn amounts under the mezzanine term debt facilities. Any amounts repaid reduce total borrowing capacity as repaid amounts are not available to be reborrowed. The final maturity dates as reflected in the table above are inclusive of any extensions at the sole discretion of the Company. The Company’s mezzanine term debt facilities may also have extensions subject to lender discretion that are not reflected in the table above. See Note 18 — Subsequent Events” for further information regarding the amendment of the Company's asset-backed mezzanine term debt facilities. Borrowings under a given term debt facility accrue interest at a fixed rate. The Company’s mezzanine term debt facility arrangements may include upfront issuance costs that are capitalized as part of the facilities’ respective carrying values. These facilities are fully prepayable at any time but may be subject to certain prepayment penalties. These borrowings are collateralized by cash and equity in certain holding companies that own the Company’s real estate owning SPEs. The lenders generally have legal recourse only to the applicable borrowers of the debt and their assets securing the debt and do not have recourse to Opendoor and, with limited exceptions, do not have recourse to other Opendoor subsidiaries. The mezzanine term debt facilities have aggregated property borrowing bases, which increase or decrease based on the cost and the value of the properties financed under a given facility and time in the Company’s possession of those properties and the amount of cash collateral pledged by the relevant SPE borrower. The borrowing base for a given facility may be reduced as properties age beyond certain thresholds and any borrowing base deficiencies may be satisfied through contributions of additional properties or cash or through partial repayment of the facility. Covenants The Company’s inventory financing facilities include customary representations and warranties, covenants and events of default. Financed properties are subject to customary eligibility criteria and concentration limits. The terms of these inventory financing facilities and related financing documents require Opendoor to comply with a number of customary financial and other covenants, such as maintaining certain levels of liquidity, tangible net worth or leverage (ratio of debt to equity). As of September 30, 2021, the Company was in compliance with all financial covenants and no event of default had occurred. Mortgage Financing To provide capital for Opendoor Home Loans, the Company utilizes a master repurchase agreement (the “Repurchase Agreement”) which is classified as a current liability on its condensed consolidated balance sheets. In March 2019, the Company entered into the Repurchase Agreement with a lender to provide short-term funding for mortgage loans originated by Opendoor Home Loans. The facility provides short-term financing between the issuance of a mortgage loan and when Opendoor Home Loans sells the loan to an investor. In accordance with the Repurchase Agreement, the lender agrees to pay Opendoor Home Loans a negotiated purchase price for eligible loans and Opendoor Home Loans simultaneously agrees to repurchase such loans from the lender within a specified timeframe and at an agreed upon price that includes interest. Opendoor Labs Inc. is the guarantor with respect to the Repurchase Agreement and the obligation to repurchase loans previously transferred under the arrangement for the benefit of the lender. As of September 30, 2021, the Repurchase Agreement has a borrowing capacity of $100.0 million, of which $20.0 million is fully committed. The Repurchase Agreement includes customary representations and warranties, covenants and provisions regarding events of default. As of September 30, 2021, $20.6 million in mortgage loans were financed under the facility, and Opendoor was in compliance with all financial covenants and no event of default had occurred. Transactions under the Repurchase Agreement bear interest at a rate based on one-month LIBOR plus an applicable margin, as defined in the Repurchase Agreement, and are secured by residential mortgage loans available for sale. The Repurchase Agreement contains margin call provisions that provide the lender with certain rights in the event of a decline in the market value of the assets purchased under the Repurchase Agreement. The Repurchase Agreement is recourse to Opendoor Labs Inc. Convertible Senior Notes In August 2021, the Company issued the 2026 Notes in an aggregate principal amount of $977.5 million. The tables below summarizes certain details related to the 2026 Notes (in thousands, except interest rates): September 30, 2021 Aggregate Principal Amount Unamortized Debt Issuance Costs Net Carrying Amount 2026 Notes $ 977,500 $ (25,085) $ 952,415 September 30, 2021 Maturity Date Stated Cash Interest Rate Effective Interest Rate Semi-Annual Interest Payment Dates Conversion Rate Conversion Price 2026 Notes August 15, 2026 0.25 % 0.77 % February 15; August 15 51.9926 $ 19.23 The 2026 Notes will be convertible at the option of the holders before February 15, 2026 only upon the occurrence of certain events. Beginning on August 20, 2024, the Company has the option to redeem the 2026 Notes upon meeting certain conditions related to price of the Company's common stock. Beginning on February 15, 2026 and until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2026 Notes are convertible at any time at election of each holder. The conversion rate and conversion price are subject to customary adjustments under certain circumstances. In addition, if certain corporate events that constitute a make-whole fundamental change occur, then the conversion rate will be adjusted in accordance with the make-whole table within the Indenture. Upon conversion, the Company may satisfy its conversion obligation by paying cash or providing a combination of cash and the Company's common stock, at the Company's election, based on the applicable conversion rate. For the three and nine months ended September 30, 2021, total interest expense on the Company's convertible senior notes were $694 thousand, with coupon interest of $278 thousand and amortization of debt issuance costs of $416 thousand. Capped Calls In August 2021, in connection with the issuance of the 2026 Notes, the Company purchased capped calls (the "Capped Calls") from certain financial institutions at a cost of $118.8 million. The Capped Calls cover, subject to customary adjustments, the number of shares of the Company's common stock underlying the 2026 Notes. By entering into the Capped Calls, the Company expects to reduce the potential dilution to its common stock (or, in the event of a conversion of the 2026 Notes settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2026 Notes its common stock price exceeds the conversion price. The Capped Calls have an initial strike price of $19.23 per share and an initial cap price of $29.59 per share or a cap price premium of 100%. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Following is a discussion of the fair value hierarchy and the valuation methodologies used for assets and liabilities recorded at fair value on a recurring and nonrecurring basis and for estimating fair value for financial instruments not recorded at fair value. Fair Value Hierarchy Fair value measurements of assets and liabilities are categorized based on the following hierarchy: Level 1 — Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2 — Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means. Level 3 — Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques. Estimation of Fair Value The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities. Asset/Liability Class Valuation Methodology, Inputs and Assumptions Classification Cash and cash equivalents Carrying value is a reasonable estimate of fair value based on short-term nature of the instruments. Estimated fair value classified as Level 1. Restricted cash Carrying value is a reasonable estimate of fair value based on short-term nature of the instruments. Estimated fair value classified as Level 1. Marketable securities Debt securities Prices obtained from third-party vendors that compile prices from various sources and often apply matrix pricing for similar securities when no price is observable. Level 2 recurring fair value measurement. Mutual fund Price is quoted given the security is traded on an exchange. Level 1 recurring fair value measurement. Equity securities Price is quoted given the securities traded on an exchange Level 1 recurring fair value measurement. Mortgage loans held for sale pledged under agreements to repurchase Fair value is estimated based on observable market data including quoted market prices, deal price quotes, and sale commitments. Level 2 recurring fair value measurement. Other current assets Interest rate lock commitments Fair value of the underlying loan based on observable quoted market prices in the secondary market and sale commitments, with adjustments for the estimated pull-through rate. Level 2 recurring fair value measurement for fair value based on observable inputs. Level 3 recurring fair value measurement for fair value with unobservable inputs. Other assets Non-marketable equity securities Fair value is estimated using the observable transaction price. Level 2 non-recurring fair value measurement for fair value based on transaction price. Non-recourse asset-backed debt Credit facilities Fair value is estimated using discounted cash flows based on current lending rates for similar credit facilities with similar terms and remaining time to maturity. Carried at amortized cost. Estimated fair value classified as Level 2. Other secured borrowings Loans sold under agreements to repurchase Fair value is estimated using discounted cash flows based on current lending rates for similar asset-backed debt with similar terms and remaining time to maturity. Carried at amortized cost. Estimated fair value classified as Level 2. Convertible senior notes Fair value is estimated using broker quotes and other observable market inputs. Carried at amortized cost. Warrant liabilities Sponsor Warrants Fair value is estimated using the price of the Public Warrants or their settlement value. Level 2 recurring fair value measurement. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following tables present the levels of the fair value hierarchy for the Company’s assets measured at fair value on a recurring basis (in thousands). September 30, 2021 Balance at Fair Value Level 1 Level 2 Level 3 Marketable securities: Corporate debt securities $ 205,702 $ — $ 205,702 $ — Mutual fund 200,264 200,264 — — Equity securities 61,013 61,013 — — Asset-backed securities 4,906 — 4,906 — Certificates of deposit 4,750 — 4,750 — Sovereign bonds 4,416 — 4,416 — Mortgage loans held for sale pledged under agreements to repurchase 22,858 — 22,858 — Other current assets: Interest rate lock commitments 616 — 616 Total assets $ 504,525 $ 261,277 $ 242,632 $ 616 December 31, 2020 Balance at Fair Value Level 1 Level 2 Level 3 Marketable securities: Corporate debt securities $ 26,409 $ — $ 26,409 $ — Asset-backed securities 12,533 — 12,533 — U.S. agency securities 6,995 — 6,995 — U.S. Treasury securities 1,700 — 1,700 — Mortgage loans held for sale pledged under agreements to repurchase 7,529 — 7,529 — Other current assets: Interest rate lock commitments 373 373 Total assets $ 55,539 $ — $ 55,539 $ — Warrant liabilities: Sponsor Warrants 47,349 — $ 47,349 — Total liabilities $ 47,349 $ — $ 47,349 $ — Fair Value of Financial Instruments The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company’s financial instruments other than assets and liabilities measured at fair value on a recurring basis (in thousands). September 30, 2021 Carrying Value Fair Value Level 1 Level 2 Assets: Cash and cash equivalents $ 1,358,775 $ 1,358,775 $ 1,358,775 $ — Restricted cash 484,476 484,476 484,476 — Other assets: Non-marketable equity securities 5,100 5,100 — 5,100 Liabilities: Non-recourse asset-backed debt $ 5,417,802 $ 5,423,812 $ — $ 5,423,812 Other secured borrowings 19,728 19,728 — 19,728 Convertible senior notes 952,415 1,226,332 — 1,226,332 December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Assets: Cash and cash equivalents $ 1,412,665 $ 1,412,665 $ 1,412,665 $ — Restricted cash 92,863 92,863 92,863 — Liabilities: Credit facilities and other secured borrowings $ 481,789 $ 486,322 $ — $ 486,322 The following tables show a reconciliation from the opening balances to the closing balances for Level 3 Fair values for the three and nine months ended September 30, 2021 and 2020 (in thousands): Warrants Embedded Interest rate lock commitments Balance as of June 30, 2021 $ — $ — $ 811 Additions — — 1,524 Origination/Terminations — — (2,080) Net change in fair value — — 361 Balance as of September 30, 2021 $ — $ — $ 616 Balance as of December 31, 2020 — — $ — Additions — — 3,872 Origination/Terminations — — (3,747) Net change in fair value — — 491 Balance as of September 30, 2021 $ — $ — $ 616 Warrants Embedded Conversion Option Interest rate lock commitments Balance as of June 30, 2020 $ 5,428 $ 41,697 $ — Settlement of convertible senior notes — (65,014) — Net change in fair value 1,012 23,317 — Balance as of September 30, 2020 $ 6,440 $ — $ — Balance as of December 31, 2019 4,538 41,697 $ — Settlement of convertible senior notes — (65,014) — Net change in fair value 1,902 23,317 — Balance as of September 30, 2020 $ 6,440 $ — $ — |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment as of September 30, 2021 and December 31, 2020, consisted of the following (in thousands): September 30, December 31, Internally developed software $ 62,599 $ 47,823 Computers 9,588 5,511 Security systems 6,791 681 Furniture and fixtures 2,817 3,279 Software implementation costs 2,304 1,680 Leasehold improvements 1,978 2,456 Office equipment 2,113 2,056 Total 88,190 63,486 Accumulated depreciation and amortization (49,869) (34,258) Property and equipment – net $ 38,321 $ 29,228 Depreciation and amortization expense of $7.2 million and $18.9 million was recorded for the three and nine months ended September 30, 2021, respectively. Depreciation and amortization expense of $6.1 million and $17.0 million was recorded for the three and nine months ended September 30, 2020, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETSFor the nine months ended September 30, 2021 the carrying amount of goodwill increased by $16.2 million due to the acquisition of Pro.com. For further information on the acquisition, see “Note 2 — Business Combinations”. There were no additions to goodwill for the twelve months ended December 31, 2020. No impairment of goodwill was identified for the three and nine months ended September 30, 2021 and 2020. Intangible assets subject to amortization consisted of the following as of September 30, 2021 and December 31, 2020, respectively (in thousands, except years): September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Weighted Average Useful Life (Years) Developed technology 7,911 (3,357) 4,554 0.9 Customer relationships $ 7,400 $ (3,597) $ 3,803 2.9 Trademarks 5,400 (2,417) 2,983 2.9 Non-competition agreements 100 (100) — 0 Intangible assets – net $ 20,811 $ (9,471) $ 11,340 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Weighted Average Useful Life (Years) Customer relationships $ 7,400 $ (2,622) $ 4,778 3.7 Trademarks 5,400 (1,652) 3,748 3.7 Developed technology 2,921 (2,921) — 0 Non-competition agreements 100 (100) — 0 Intangible assets – net $ 15,821 $ (7,295) $ 8,526 The Company also has domain name intangible assets, which are not subject to amortization, with a carrying amount of $0.2 million as of both September 30, 2021 and December 31, 2020, respectively. Amortization expense for intangible assets was $1.0 million and $2.2 million for the three and nine months ended September 30, 2021, respectively. Amortization expense for intangible assets was $0.9 million and $3.1 million for the three and nine months ended September 30, 2020, respectively. As of September 30, 2021, expected amortization of intangible assets is as follows: Fiscal Years (In thousands) Remainder of 2021 $ 1,838 2022 5,616 2023 2,320 2024 1,566 Total $ 11,340 |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY On February 9, 2021, the Company completed an underwritten public offering (the “February 2021 Offering”) in which the Company sold 32,817,421 shares of its common stock at a public offering price of $27.00 per share, including the exercise in full by the underwriters of their option to purchase up to 4,280,533 additional shares of common stock, which was completed on February 11, 2021. The Company received aggregate net proceeds from the February 2021 Offering of approximately $859.5 million after deducting underwriting discounts and commissions and offering expenses payable by the Company upon closing. The February 2021 Offering satisfied the liquidity event vesting condition of certain restricted stock units ("RSUs"). For further information on the RSUs, see “ Note 12 — Share-Based Awards”. Public and Sponsor Warrants Prior to the Business Combination, SCH issued 6,133,333 Sponsor Warrants and 13,800,000 Public Warrants (collectively “Warrants”). Upon Closing, the Company assumed the Warrants. Each whole warrant entitles the holder to purchase one share of the Company’s common stock at a price of $11.50 per share, subject to adjustments. The Warrants are exercisable at any time commencing the later of a) 30 days after the completion of the Business Combination and b) 12 months from the date of the closing of the SCH’s initial public offering on April 30, 2020, and terminating five years after the Business Combination. Once the Public Warrants become exercisable, the Company may redeem the outstanding warrants, in whole and not in part, upon a minimum of 30 days’ prior written notice of redemption (“Redemption Period”). There are two scenarios in which the Company may redeem the Warrants. For purposes of the redemption scenarios, “Reference Value” shall mean the last reported sales price of the Company’s common stock for any twenty thirty The Company may redeem the outstanding Warrants for cash at a price of $0.01 per warrant if the Reference Value equals or exceeds $18.00 per share. The warrant holders have the right to exercise their outstanding warrants prior to the scheduled redemption date during the Redemption Period at $11.50 per share. The Sponsor Warrants are exempt from redemption if the Reference Value is at or above $18.00 and the Sponsor Warrants continue to be held by the original warrant holder (“Sponsor") or a permitted transferee. The Company may redeem the outstanding Warrants at a price of $0.10 per warrant if the Reference Value equals or exceeds $10.00 per share. If the Reference Value is less than $18.00, the Sponsor Warrants must also be concurrently called for redemption with the Public Warrants. The warrant holders have the right to exercise their outstanding warrants prior to the scheduled redemption date during the Redemption Period on a cashless basis. The cashless exercise entitles the warrant holders to receive a set number of shares based on the redemption date and the redemption fair value as defined in the warrant agreement. In connection with the Business Combination, on January 12, 2021, the Company filed a Registration Statement on Form S-1. This Registration Statement relates to the issuance of an aggregate of up to 19,933,333 shares of common stock issuable upon the exercise of its publicly-traded warrants. On July 9, 2021, the Company completed the redemption of all of its outstanding Public and Sponsor Warrants to purchase shares of the Company's common stock, par value $0.0001 per share, that were issued under the Warrant Agreement, dated April 27, 2020. Of the 13,799,947 Public Warrants that were outstanding as of the time of the Business Combination, 874,739 were exercised for cash at an exercise price of $11.50 per share of Common Stock and 12,521,776 were exercised on a cashless basis in exchange for an aggregate of 4,452,659 shares of Common Stock. In addition, of the 6,133,333 Sponsor Warrants that were outstanding as of the date of the Business Combination, 1,073,333 were exercised for cash at an exercise price of $11.50 per share of Common Stock and 5,060,000 were exercised on a cashless basis in exchange for an aggregate of 1,799,336 shares of Common Stock. Total cash proceeds to the Company generated from exercises of the Warrants were $22.4 million. In connection with the redemption, the Public Warrants stopped trading on the Nasdaq Global Select Market on July 9, 2021. The Company recorded a decrease to the Derivative and warrant fair value adjustment of $(3.5) million and $(12.2) million for the change in fair value of the Sponsor Warrants for the three and nine months ended September 30, 2021, respectively. Warrants to Purchase Series D Preferred Stock On June 12, 2018, the Company issued warrants to purchase 485,262 shares of Series D Preferred Stock at a price of $0.006 (“Penny Warrants”). On November 12, 2020, the Penny Warrants were exercised and the Company issued 485,262 shares of Series D Preferred Stock in exchange for proceeds of $3.0 thousand. As of September 30, 2021, there were no Penny Warrants outstanding. Commitment to Issue Warrants In June 2018, the Company entered into a commitment to issue warrants (“Warrant Commitment”). The Warrant Commitment obligates the Company to issue warrants on an annual basis until 2025 (“Issuance Date”). The Warrant Commitment and the Company’s obligation to issue warrants was terminated upon the consummation of the Business Combination through notice provided by the Company and acknowledged by the counterparty. On each Warrant Commitment Issuance date in June 2019 and June 2020, the Company issued warrants to purchase 121,356 shares and 242,713 shares of Series E Preferred Stock at a price of $5.92 per share (“Series E Warrants”). On November 7, 2020 the Series E Warrants were exercised and the Company issued 364,069 shares of Series E in exchange for proceeds of $2.2 million. As of September 30, 2021, there were no Series E Warrants or Warrant Commitments outstanding. The Penny Warrants, the Warrant Commitment, and the Series E Warrants have been determined to be liabilities under ASC 480 as the underlying preferred shares have certain liquidation preferences in the event of a deemed liquidation. For the Penny Warrants, the Warrant Commitment, and the Series E Warrants, the Company recorded no warrant fair value adjustments for the three and nine months ended September 30, 2021 and an increase to the warrant fair value adjustments of $1.0 million and $1.9 million for the three and nine months ended September 30, 2020, respectively. |
SHARE-BASED AWARDS
SHARE-BASED AWARDS | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED AWARDS | SHARE-BASED AWARDS Stock options and RSUs Option awards are generally granted with an exercise price equal to the fair value of the Company’s common stock at the date of grant. Options are exercisable over a maximum term of 10 years from the date of grant and generally vest over a period of four years. Incentive stock options granted to a 10% shareholder are exercisable over a maximum term of five years from the date of grant. A summary of the stock option activity for the nine months ended September 30, 2021, is as follows: Number of Options (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Balance-December 31, 2020 24,158 $ 1.91 5.4 $ 502,767 Granted 150 15.00 Exercised (6,791) 1.68 Forfeited (774) 3.84 Expired (3) 3.02 Balance-September 30, 2021 16,740 $ 2.05 4.8 $ 309,327 Exercisable-September 30, 2021 14,386 $ 1.70 4.4 $ 270,848 RSUs typically vest upon a service-based requirement, generally over a four year period. Prior to 2021, certain awards also had a performance condition to vesting, which was satisfied upon completion of the February 2021 Offering and triggered the recognition of compensation expense for certain RSUs for which the time-based vesting condition had been satisfied or partially satisfied. Subsequent to the February 2021 Offering, these RSUs are only subject to time-based vesting conditions. . A summary of the RSU activity for the nine months ended September 30, 2021, is as follows: Number of RSUs (in thousands) Weighted- Average Grant-Date Fair Value Unvested and outstanding-December 31, 2020 46,525 $ 10.88 Granted 29,830 20.44 Vested (17,712) 7.09 Forfeited (2,239) 8.69 Unvested and outstanding-September 30, 2021 56,404 $ 17.63 Restricted Shares The Company has granted Restricted Shares to certain continuing employees, primarily in connection with acquisitions. The Restricted Shares vest upon satisfaction of a service condition, which generally ranges from three A summary of the Restricted Shares activity for the nine months ended September 30, 2021 is as follows: Number of Restricted Shares (in thousands) Average Grant-Date Fair Value Unvested-December 31, 2020 2,148 $ 3.74 Granted — — Vested (932) 3.58 Unvested-September 30, 2021 1,216 $ 3.86 Stock-based compensation expense Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. The following table summarizes total stock-based compensation expense by function as presented in the condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020, as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 General and administrative $ 52,289 $ 1,531 $ 405,032 $ 5,117 Sales, marketing and operations 1,807 240 10,077 996 Technology and development 7,915 751 49,950 3,049 Total stock-based compensation expense $ 62,011 $ 2,522 $ 465,059 $ 9,162 During the nine months ended September 30, 2021, the Company issued market condition RSUs to certain executives with a grant-date fair value of $22.4 million, which will be recognized over a requisite service period ranging from six months to three years. There were no market condition RSUs granted in the three months ended September 30, 2021. The Company recognized $20.0 million and $270.9 million of compensation expense during the three and nine months ended September 30, 2021, respectively, related to all market condition awards outstanding. In June 2021, the market condition for two market condition awards was satisfied, which resulted in the accelerated recognition of $2.2 million of stock-based compensation expense in the nine months ended September 30, 2021. During the three months ended September 30, 2021, no market condition awards satisfied their market condition. As of September 30, 2021, there was $632.4 million of unamortized stock-based compensation costs related to unvested RSUs, stock options, and Restricted Shares. The unamortized compensation costs are expected to be recognized over a weighted-average period of approximately three years. Valuation of options The Black-Scholes Model used to value stock options incorporates the following assumptions: 2021 Fair value $ 15.00 Volatility 73 % Risk-free rate 1.09 % Expected life (in years) 7 Expected dividend $ — Fair Value of Common Stock Prior to the Company's common stock becoming publicly traded, the fair value of the common stock underlying the stock option awards was determined by the board of directors. Given the absence of a public trading market, the board of directors considered numerous objective and subjective factors to determine the fair value of the Company’s common stock at each meeting at which awards were approved. These factors included, but were not limited to (i) contemporaneous third-party valuations of common stock; (ii) the rights, preferences and privileges of convertible preferred stock relative to common stock; (iii) the lack of marketability of common stock; (iv) stage and development of the Company’s business; (v) general economic conditions and (vi) the likelihood of achieving a liquidity event, such as an initial public offering or sale, given prevailing market conditions. Volatility Prior to the Company's common stock becoming publicly traded, the expected stock price volatilities were estimated based on the historical and implied volatilities of comparable publicly traded companies as the Company did not have sufficient history of trading its common stock. Subsequent to the Company's stock becoming publicly traded, the expected stock price volatilities were determined based on the volatilities implied by the price of he Company's publicly traded call options in its common stock. Risk-Free Interest Rate The risk-free interest rates are based on U.S. Treasury yields in effect at the grant date for notes with comparable terms as the awards. Expected Life The expected term of options granted to employees is determined using the simplified method, which allows the Company to estimate the expected life as the midpoint between the vesting period and the contractual term, as the Company's historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. Dividend Yield The expected dividend yield assumption is based on the Company’s current expectations about its anticipated dividend policy. Valuation of RSUs and Restricted Stock Prior to the Business Combination, given the absence of a public trading market, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of common stock at each meeting at which awards were approved. These factors include, but were not limited to, (i) contemporaneous valuations of common stock performed by an independent valuation specialist; (ii) developments in the Company’s business and stage of development; the Company’s operational and financial performance and condition; (iii) issuances of preferred stock and the rights and preferences of preferred stock relative to common stock; (iv) current condition of capital markets and the likelihood of achieving a liquidity event, such as an initial public offering or sale of the Company; and (v) and the lack of marketability of the Company’s common stock. For financial reporting purposes, the Company considers the amount of time between the valuation date and the grant date to determine whether to use the latest common stock valuation or a straight-line interpolation between the two valuation dates. The determination includes an evaluation of whether the subsequent valuation indicates that any significant change in valuation had occurred between the previous valuation and the grant date. |
WARRANTS
WARRANTS | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
WARRANTS | SHAREHOLDERS’ EQUITY On February 9, 2021, the Company completed an underwritten public offering (the “February 2021 Offering”) in which the Company sold 32,817,421 shares of its common stock at a public offering price of $27.00 per share, including the exercise in full by the underwriters of their option to purchase up to 4,280,533 additional shares of common stock, which was completed on February 11, 2021. The Company received aggregate net proceeds from the February 2021 Offering of approximately $859.5 million after deducting underwriting discounts and commissions and offering expenses payable by the Company upon closing. The February 2021 Offering satisfied the liquidity event vesting condition of certain restricted stock units ("RSUs"). For further information on the RSUs, see “ Note 12 — Share-Based Awards”. Public and Sponsor Warrants Prior to the Business Combination, SCH issued 6,133,333 Sponsor Warrants and 13,800,000 Public Warrants (collectively “Warrants”). Upon Closing, the Company assumed the Warrants. Each whole warrant entitles the holder to purchase one share of the Company’s common stock at a price of $11.50 per share, subject to adjustments. The Warrants are exercisable at any time commencing the later of a) 30 days after the completion of the Business Combination and b) 12 months from the date of the closing of the SCH’s initial public offering on April 30, 2020, and terminating five years after the Business Combination. Once the Public Warrants become exercisable, the Company may redeem the outstanding warrants, in whole and not in part, upon a minimum of 30 days’ prior written notice of redemption (“Redemption Period”). There are two scenarios in which the Company may redeem the Warrants. For purposes of the redemption scenarios, “Reference Value” shall mean the last reported sales price of the Company’s common stock for any twenty thirty The Company may redeem the outstanding Warrants for cash at a price of $0.01 per warrant if the Reference Value equals or exceeds $18.00 per share. The warrant holders have the right to exercise their outstanding warrants prior to the scheduled redemption date during the Redemption Period at $11.50 per share. The Sponsor Warrants are exempt from redemption if the Reference Value is at or above $18.00 and the Sponsor Warrants continue to be held by the original warrant holder (“Sponsor") or a permitted transferee. The Company may redeem the outstanding Warrants at a price of $0.10 per warrant if the Reference Value equals or exceeds $10.00 per share. If the Reference Value is less than $18.00, the Sponsor Warrants must also be concurrently called for redemption with the Public Warrants. The warrant holders have the right to exercise their outstanding warrants prior to the scheduled redemption date during the Redemption Period on a cashless basis. The cashless exercise entitles the warrant holders to receive a set number of shares based on the redemption date and the redemption fair value as defined in the warrant agreement. In connection with the Business Combination, on January 12, 2021, the Company filed a Registration Statement on Form S-1. This Registration Statement relates to the issuance of an aggregate of up to 19,933,333 shares of common stock issuable upon the exercise of its publicly-traded warrants. On July 9, 2021, the Company completed the redemption of all of its outstanding Public and Sponsor Warrants to purchase shares of the Company's common stock, par value $0.0001 per share, that were issued under the Warrant Agreement, dated April 27, 2020. Of the 13,799,947 Public Warrants that were outstanding as of the time of the Business Combination, 874,739 were exercised for cash at an exercise price of $11.50 per share of Common Stock and 12,521,776 were exercised on a cashless basis in exchange for an aggregate of 4,452,659 shares of Common Stock. In addition, of the 6,133,333 Sponsor Warrants that were outstanding as of the date of the Business Combination, 1,073,333 were exercised for cash at an exercise price of $11.50 per share of Common Stock and 5,060,000 were exercised on a cashless basis in exchange for an aggregate of 1,799,336 shares of Common Stock. Total cash proceeds to the Company generated from exercises of the Warrants were $22.4 million. In connection with the redemption, the Public Warrants stopped trading on the Nasdaq Global Select Market on July 9, 2021. The Company recorded a decrease to the Derivative and warrant fair value adjustment of $(3.5) million and $(12.2) million for the change in fair value of the Sponsor Warrants for the three and nine months ended September 30, 2021, respectively. Warrants to Purchase Series D Preferred Stock On June 12, 2018, the Company issued warrants to purchase 485,262 shares of Series D Preferred Stock at a price of $0.006 (“Penny Warrants”). On November 12, 2020, the Penny Warrants were exercised and the Company issued 485,262 shares of Series D Preferred Stock in exchange for proceeds of $3.0 thousand. As of September 30, 2021, there were no Penny Warrants outstanding. Commitment to Issue Warrants In June 2018, the Company entered into a commitment to issue warrants (“Warrant Commitment”). The Warrant Commitment obligates the Company to issue warrants on an annual basis until 2025 (“Issuance Date”). The Warrant Commitment and the Company’s obligation to issue warrants was terminated upon the consummation of the Business Combination through notice provided by the Company and acknowledged by the counterparty. On each Warrant Commitment Issuance date in June 2019 and June 2020, the Company issued warrants to purchase 121,356 shares and 242,713 shares of Series E Preferred Stock at a price of $5.92 per share (“Series E Warrants”). On November 7, 2020 the Series E Warrants were exercised and the Company issued 364,069 shares of Series E in exchange for proceeds of $2.2 million. As of September 30, 2021, there were no Series E Warrants or Warrant Commitments outstanding. The Penny Warrants, the Warrant Commitment, and the Series E Warrants have been determined to be liabilities under ASC 480 as the underlying preferred shares have certain liquidation preferences in the event of a deemed liquidation. For the Penny Warrants, the Warrant Commitment, and the Series E Warrants, the Company recorded no warrant fair value adjustments for the three and nine months ended September 30, 2021 and an increase to the warrant fair value adjustments of $1.0 million and $1.9 million for the three and nine months ended September 30, 2020, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s provision for income taxes has not been historically significant to the business as the Company has incurred operating losses to date. Due to projected and actual losses in the current and prior years, the Company believes that based on the weight of available evidence, it is more likely than not that all of the deferred tax assets will not be realized and recorded a full valuation allowance on its net deferred tax assets as of September 30, 2021 and December 31, 2020. The Company’s provision for income taxes, which was primarily composed of state tax expense, was $0.3 million and $0.6 million for the three and nine months ended September 30, 2021, respectively, with an effective tax rate of (0.58)% and (0.17)%, respectively. The Company's provision for income taxes was $0.03 million and $0.23 million for the three and nine months ended September 30, 2020, respectively, with an effective tax rate of (0.04)% and (0.12)%, respectively. The effective tax rate differs from the U.S. statutory tax rate primarily due to the recording of a full valuation allowance against the net deferred tax assets. |
RELATED PARTIES
RELATED PARTIES | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES In 2018, an executive early exercised their option to purchase 1,479,459 shares of unvested common stock at a price per share of $1.01 by issuing a promissory note to the Company for a total price of $1.5 million with an interest rate of 2.31% per annum. On June 29, 2021, the outstanding balance under the promissory note of $1.6 million was repaid in full. The Warrant Commitment and the subsequent Series E Warrants were issued to a counterparty that has an equity interest in the Company and a seat on the Company’s board of directors. The board member has significant influence with respect to the counterparty to the Warrant Commitment. The issuance of the Warrant Commitment and Series E Warrants was in exchange for on-going advisory services that the counterparty provided to the Company. See “Note 13 — Warrants” for further information. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE Basic net loss per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. During the periods when there is a net loss, potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive. No dividends were declared or paid for the three and nine months ended September 30, 2021 or 2020. For applicable periods, the Company uses the two-class method to calculate net loss per share and apply the more dilutive of the two-class method, treasury stock method or if-converted method to calculate diluted net loss per share. Undistributed earnings for each period are allocated to participating securities, including the Preferred Stock for applicable periods, based on the contractual participation rights of the security to share in the current earnings as if all current period earnings had been distributed. As there is no contractual obligation for the Preferred Stock to share in losses, the Company’s basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average shares of common stock outstanding during periods with undistributed losses. The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common shareholders for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Basic and diluted net loss per share: Numerator: Net loss attributable to common shareholders – basic and diluted $ (56,819) $ (80,853) $ (471,060) $ (198,968) Denominator: Weighted average shares outstanding – basic and diluted 603,389 89,070 585,854 85,907 Basic and diluted net loss per share $ (0.09) $ (0.91) $ (0.80) $ (2.32) There were no preferred dividends declared or accumulated for the period. The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Common Stock Warrants — 3,370 — 3,370 Series D Preferred Stock Warrants — 485 — 485 Series E Preferred Stock Warrants — 363 — 363 RSUs 56,404 31,804 56,404 31,804 Options 16,740 30,288 16,740 30,288 Unvested Shares from Early Exercise 9 74 9 74 Restricted Shares 1,216 2,458 1,216 2,458 Redeemable convertible preferred stock — 314,424 — 314,424 Total anti-dilutive securities 74,369 383,266 74,369 383,266 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Interest Rate Lock Commitments The Company entered into interest rate lock commitments with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rate to the borrower. These commitments are treated as derivatives and are carried at fair value. See “Note 5 — Derivative Instruments” for more information. Purchase Commitments As of September 30, 2021, the Company was in contract to purchase 6,231 homes for an aggregate purchase price of $2,259.9 million. Lease Commitments During the nine months ended September 30, 2021, the Company did not enter into any material new leases, lease renewals, or lease modifications. On September 25, 2020, the Company exercised an option to early terminate the San Francisco headquarters lease, effective September 30, 2021. In September 2020, the Company did not anticipate returning to the San Francisco space, so the Company accelerated amortization of the right-of-use asset and incurred and paid early termination fees. In January 2021, the Company terminated the San Francisco lease prior to the anticipated termination date of September 30, 2021, which resulted in a $5.2 million gain recognized in the condensed consolidated statements of operations for the nine months ended September 30, 2021. Legal Matters From time to time, the Company may be subject to potential liability relating to the ownership and operations of the Company’s properties. Accruals are recorded when the outcome is probable and can be reasonably estimated. There are various claims and lawsuits arising in the normal course of business pending against the Company, some of which seek damages and other relief which, if granted, may require future cash expenditures. In addition, from time to time the Company receives inquiries and audit requests from various government agencies and fully cooperates with these requests. The Company does not believe that it is reasonably possible that the resolution of these matters would result in any liability that would materially affect the Company’s condensed consolidated results of operations or financial condition except as noted below. On December 23, 2020, the Federal Trade Commission (“FTC”) notified the Company that they intend to recommend that the agency pursue an enforcement action against the Company and certain of its officers, if the Company is unable to reach a negotiated settlement acceptable to all parties. This notice is related to an initial FTC civil investigative demand sent to the Company in August 2019 seeking documents and information relating primarily to statements in Opendoor’s advertising and website comparing selling homes to Opendoor with selling homes in a traditional manner using an agent and relating to statements that Opendoor’s offers reflect or are based on market prices. The Company is engaged in settlement negotiations with the FTC and has accrued an immaterial amount for this matter. Any settlement could result in material monetary remedies and/or compliance requirements that could have a materially adverse impact on its financial results. The Company cannot make an estimate of the possible loss or range of loss incremental to the amount accrued, if any, resulting from negotiations with the FTC at this time. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 1, 2021, a subsidiary of the Company entered into an amended and restated mezzanine term debt facility, with $3.0 billion in borrowing capacity, of which $2.3 billion is committed, and a final maturity date of April 1, 2026. This non-recourse facility refinances the previously outstanding mezzanine term debt facilities on substantially similar economic terms. As a result of this facility and an incremental $895.0 million in borrowing capacity from other recent amendments to existing senior credit facilities , the Company has an aggregate borrowing capacity of $9.6 billion and fully committed borrowing capacity of $6.7 billion for its non-recourse asset-backed debt facilities. On November 3, 2021, the Company paid $12.5 million in cash to acquire RedDoor, a digital-first mortgage brokerage operating in California. The Company is in the process of finalizing the accounting for the acquisition. |
DESCRIPTION OF BUSINESS AND A_2
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Opendoor Technologies Inc. (the “Company” and “Opendoor”) including its consolidated subsidiaries and certain variable interest entities (“VIEs”), is a leading digital platform for buying and selling homes. Opendoor streamlines the home selling and buying transaction and creates an end-to-end experience online. The Company was incorporated in Delaware on December 30, 2013. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to generally accepted accounting principles in the United States of America (“GAAP”). The condensed consolidated financial statements as of September 30, 2021 and December 31, 2020 and for the three and nine month periods ended September 30, 2021 and 2020 include the accounts of Opendoor, its wholly owned subsidiaries and VIEs where the Company is the primary beneficiary. The accompanying unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements herein. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period's presentation. As a result of the Business Combination completed on December 18, 2020, prior period share and per share amounts presented in the accompanying condensed consolidated financial statements and these related notes have been retroactively converted. See “ Note 2— Business Combination” for additional information. The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“Annual Report”) filed on March 4, 2021. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ materially from such estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the fair value of common stock, share-based awards, warrants, derivatives, convertible senior notes, and inventory impairment (“real estate inventory valuation adjustment”). Management believes that the estimates and judgments upon which they rely are reasonable based upon information available to them at the time that these estimates and judgments are made. To the extent that there are material differences between these estimates and actual results, the Company’s financial statements will be affected. The COVID-19 pandemic introduced significant additional uncertainties with respect to estimates, judgments and assumptions, which may materially impact these estimates. |
Significant Risks and Uncertainties | Significant Risks and Uncertainties The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, the Company believes that changes in any of the following areas could have a significant negative effect on the Company in terms of its future financial position, results of operations or cash flows: public health crises, like the COVID-19 pandemic; its rates of revenue growth; its ability to manage inventory; engagement and usage of its products; the effectiveness of its investment of resources to pursue strategies; competition in its market; the stability of the residential real estate market; the impact of interest rate changes on demand and its costs; changes in technology, products, markets or services by the Company or its competitors; the addition or loss of significant customers; its ability to maintain or establish relationships with listings and data providers; its ability to obtain or maintain licenses and permits to support its current and future businesses; actual or anticipated changes to its products and services; changes in government regulation affecting its business; the outcomes of legal proceedings; natural disasters and catastrophic events; scaling and adaptation of existing technology and network infrastructure; its management of its growth; its ability to attract and retain qualified employees and key personnel; its ability to successfully integrate and realize the benefits of its past or future strategic acquisitions or investments; the protection of customers’ information and other privacy concerns; the protection of its brand and intellectual property; and intellectual property infringement and other claims, among other things. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, investments in marketable securities, and mortgage loans held for sale pledged under agreements to repurchase (“MLHFS”). The Company places cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, in order to limit exposure of the Company’s investments. |
Marketable Securities | Marketable SecuritiesThe Company's investments in marketable securities consist of debt securities classified as available-for-sale as well as marketable equity securities. The Company's available-for-sale debt securities are measured at fair value with unrealized gains and losses included in Accumulated other comprehensive income (loss) in shareholder's equity and realized gains and losses included in Other income. The Company's marketable equity securities are measured at fair value with changes in fair value recognized in Other income. |
Derivative Instruments | Derivative InstrumentsThe Company’s derivative instruments are comprised of interest rate caps, interest rate lock commitments (“IRLCs”), and embedded conversion options related to the convertible notes issued in 2019 (the "2019 Convertible Notes"). The Company’s derivative instruments are freestanding in nature and some are utilized as economic hedges. These derivative instruments are recorded at fair value with changes recognized as a gain or loss to operations. Beginning in 2021, the Company changed the fair value classification of IRLCs from Level 2 to Level 3 as the Company began to adjust observable input data for the estimated pull-through rate, a Company specific input that is unobservable to market participants. |
Non-marketable equity securities | Non-marketable Equity Securities The Company's non-marketable equity securities are strategic investments in a privately held company. Non-marketable equity securities are investments that do not have a readily determinable fair value, which are measured at cost minus impairment, if any, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Measurement Alternative”). All gains and losses on these investments, realized and unrealized, are recorded in Other income-net on the Company's condensed consolidated statements of operations. The Company assesses whether an impairment loss on its non-marketable equity securities has occurred due to declines in fair value or other |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsLong-lived assets, such as property and equipment and definite-lived intangible assets, among other long-term assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment loss is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Adopted Accounting Standards In August 2020, the FASB issued ASU 2020-06, to simplify accounting for certain financial instruments. This guidance eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. The standard also amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. The Company adopted this ASU as of January 1, 2021 using the modified retrospective method. The adoption of this ASU did not have a material impact to the Company’s condensed consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04 which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Inter- Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. This guidance is optional for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. This guidance is effective from March 12, 2020 through December 31, 2022. Entities may elect to adopt the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Company may elect to take advantage of this optional guidance in its transition away from LIBOR within certain debt contracts. The Company is currently evaluating the impact of adopting this guidance on the Company's financial position, results of operations or cash flows. |
DESCRIPTION OF BUSINESS AND A_3
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following table provides the impact of the correction on the Company's consolidated balance sheet as of December 31, 2020, as presented herein (in thousands): Previously Stated Adjustments As Corrected Warrant liabilities $ — 47,349 $ 47,349 Total liabilities $ 575,575 47,349 $ 622,924 Additional paid-in capital $ 2,677,155 (81,143) $ 2,596,012 Accumulated deficit (1,077,243) 33,794 (1,043,449) Total shareholders' equity $ 1,600,007 (47,349) $ 1,552,658 |
REAL ESTATE INVENTORY (Tables)
REAL ESTATE INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Real Estate Inventory | The following table presents the components of inventory, net of applicable real estate inventory valuation adjustments, as of the dates presented (in thousands): September 30, December 31, Work-in-process $ 2,759,984 $ 183,004 Finished goods 3,508,097 282,932 Total real estate inventory $ 6,268,081 $ 465,936 |
CASH, CASH EQUIVALENTS, AND I_2
CASH, CASH EQUIVALENTS, AND INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost, gross unrealized gains and losses, and fair value of cash, cash equivalents, and marketable securities as of September 30, 2021 and December 31, 2020, are as follows (in thousands): September 30, 2021 Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 83,893 $ — $ — $ 83,893 $ 83,893 $ — Money market funds 974,657 — — 974,657 974,657 — Time deposit 300,225 — — 300,225 300,225 — Corporate debt securities 205,805 17 (120) 205,702 — 205,702 Mutual fund 200,264 — — 200,264 — 200,264 Equity securities 61,013 — — 61,013 — 61,013 Asset-backed securities 4,907 — (1) 4,906 — 4,906 Certificates of deposit 4,750 — — 4,750 — 4,750 Sovereign bonds 4,418 — (2) 4,416 — 4,416 Total $ 1,839,932 $ 17 $ (123) $ 1,839,826 $ 1,358,775 $ 481,051 December 31, 2020 Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 709,924 $ — $ — $ 709,924 $ 709,924 $ — Money market funds 618,197 — — 618,197 618,197 — Commercial paper 81,037 1 — 81,038 81,038 — Corporate debt securities 29,891 26 (2) 29,915 3,506 26,409 Asset-backed securities 12,518 19 (4) 12,533 — 12,533 U.S. agency securities 6,993 2 — 6,995 — 6,995 U.S. Treasury securities 1,700 — — 1,700 — 1,700 Total $ 1,460,260 $ 48 $ (6) $ 1,460,302 $ 1,412,665 $ 47,637 |
Schedule of Unrealized Loss on Investments | A summary of debt securities with unrealized losses aggregated by period of continuous unrealized loss is as follows (in thousands): Less than 12 Months 12 Months or Greater Total September 30, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 174,669 $ (120) $ — $ — $ 174,669 $ (120) Asset-backed securities 4,906 (1) — — 4,906 (1) Certificate of deposit 4,750 — — — 4,750 — Sovereign bonds 4,416 (2) — — 4,416 (2) Total $ 188,741 $ (123) $ — $ — $ 188,741 $ (123) Less than 12 Months 12 Months or Greater Total December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Commercial paper $ 19,296 $ — $ — $ — $ 19,296 $ — Corporate debt securities 7,538 (2) — — 7,538 (2) Asset-backed securities 4,611 (4) — — 4,611 (4) Total $ 31,445 $ (6) $ — $ — $ 31,445 $ (6) |
Scheduled Contractual Maturities of Marketable Securities | The scheduled contractual maturities of marketable securities as of September 30, 2021 are as follows (in thousands): September 30, 2021 Fair Value Within 1 Year After 1 Year through 5 Years Corporate debt securities $ 205,702 $ 58,452 $ 147,250 Asset-backed securities 4,906 2,044 2,862 Certificate of deposit 4,750 4,750 — Sovereign bonds 4,416 4,416 — Total $ 219,774 $ 69,662 $ 150,112 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table presents the total notional amounts and fair values for the Company’s derivatives (in thousands): Notional Amount Fair Value Derivatives September 30, 2021 Asset Liability Interest rate lock commitments $ 34,146 $ 616 $ — Notional Amount Fair Value Derivatives December 31, 2020 Asset Liability Interest rate lock commitments $ 15,130 $ 373 $ — |
Schedule of Net Gains and Losses | The following table presents the net gains and losses recognized on derivatives within the respective line items in the statement of operations for the periods indicated (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenue $ (195) $ 222 $ 243 $ 753 Derivative and warrant fair value adjustment $ — $ (23,317) $ — $ (23,317) Other income, net $ — $ — $ — $ (4) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table summarizes the assets and liabilities related to the VIEs consolidated by the Company as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Assets Cash and cash equivalents $ 11,567 $ 15,849 Restricted cash 475,305 81,408 Real estate inventory 6,131,362 460,680 Other (1) 141,938 6,729 Total assets $ 6,760,172 $ 564,666 Liabilities Non-recourse asset-backed debt $ 5,417,801 $ 474,640 Other (2) 75,547 3,394 Total liabilities $ 5,493,348 $ 478,034 ________________ (1) Includes escrow receivable and other current assets. (2) Includes accounts payable and other accrued liabilities and interest payable. |
CREDIT FACILITIES AND LONG-TE_2
CREDIT FACILITIES AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following tables summarize certain details related to the Company's credit facilities and long-term debt as of September 30, 2021 and December 31, 2020 (in thousands, except interest rates): Outstanding Amount September 30, 2021 Borrowing Capacity Current Non-Current Weighted Average Interest Rate End of Revolving / Withdrawal Period Final Maturity Date Non-Recourse Asset-Backed Debt: Asset-Backed Senior Credit Facilities Revolving Facility 2018-2 $ 1,000,000 $ 999,206 $ — 2.84 % September 23, 2022 December 23, 2022 Revolving Facility 2018-3 750,000 650,000 — 2.47 % May 26, 2024 May 26, 2024 Revolving Facility 2019-1 900,000 632,366 — 2.84 % June 30, 2023 June 30, 2023 Revolving Facility 2019-2 1,030,000 1,028,206 — 2.55 % July 8, 2023 July 8, 2023 Revolving Facility 2019-3 925,000 627,938 — 3.25 % August 22, 2022 August 21, 2023 Revolving Facility 2021-1 125,000 112,096 — 2.15 % October 31, 2022 October 31, 2022 Term Debt Facility 2021-S1 400,000 — 250,000 3.48 % April 1, 2024 April 1, 2025 Term Debt Facility 2021-S2 600,000 — 500,000 3.20 % September 10, 2024 September 10, 2025 Total $ 5,730,000 $ 4,049,812 $ 750,000 Issuance Costs (3,234) Carrying Value $ 746,766 Asset-Backed Mezzanine Term Debt Facilities Term Debt Facility 2016-M1 $ 324,000 $ — $ 324,000 10.00 % October 31, 2023 March 31, 2025 Term Debt Facility 2020-M1 300,000 — 300,000 10.00 % January 23, 2023 January 23, 2026 Total $ 624,000 $ — $ 624,000 Issuance Costs (2,777) Carrying Value $ 621,223 Total Non-Recourse Asset-Backed Debt $ 6,354,000 $ 4,049,812 $ 1,367,989 Recourse Debt - Other Secured Borrowings: Mortgage Financing Repo Facility 2019-R1 $ 100,000 $ 19,728 $ — 1.84 % May 26, 2022 May 26, 2022 Total Recourse Debt $ 100,000 $ 19,728 $ — Outstanding Amount December 31, 2020 Current Non-Current Weighted Average Interest Rate Non-Recourse Asset-Backed Debt: Asset-Backed Senior Credit Facilities Revolving Facility 2018-1 $ — $ — 4.28 % Revolving Facility 2018-2 — — 4.36 % Revolving Facility 2018-3 25,385 — 4.19 % Revolving Facility 2019-1 32,535 — 3.58 % Revolving Facility 2019-2 230,352 — 3.08 % Revolving Facility 2019-3 50,901 — 3.60 % Total $ 339,173 $ — Asset-Backed Mezzanine Term Debt Facilities Term Debt Facility 2016-M1 $ — $ 40,000 10.00 % Term Debt Facility 2020-M1 — 100,000 10.00 % Total $ — $ 140,000 Issuance Costs (4,533) Carrying Value $ 135,467 Total Non-Recourse Asset-Backed Debt $ 339,173 $ 135,467 Recourse Debt - Other Secured Borrowings: Mortgage Financing Repo Facility 2019-R1 $ 7,149 $ — 1.94 % Total Recourse Debt $ 7,149 $ — |
Convertible Debt | The tables below summarizes certain details related to the 2026 Notes (in thousands, except interest rates): September 30, 2021 Aggregate Principal Amount Unamortized Debt Issuance Costs Net Carrying Amount 2026 Notes $ 977,500 $ (25,085) $ 952,415 September 30, 2021 Maturity Date Stated Cash Interest Rate Effective Interest Rate Semi-Annual Interest Payment Dates Conversion Rate Conversion Price 2026 Notes August 15, 2026 0.25 % 0.77 % February 15; August 15 51.9926 $ 19.23 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities. Asset/Liability Class Valuation Methodology, Inputs and Assumptions Classification Cash and cash equivalents Carrying value is a reasonable estimate of fair value based on short-term nature of the instruments. Estimated fair value classified as Level 1. Restricted cash Carrying value is a reasonable estimate of fair value based on short-term nature of the instruments. Estimated fair value classified as Level 1. Marketable securities Debt securities Prices obtained from third-party vendors that compile prices from various sources and often apply matrix pricing for similar securities when no price is observable. Level 2 recurring fair value measurement. Mutual fund Price is quoted given the security is traded on an exchange. Level 1 recurring fair value measurement. Equity securities Price is quoted given the securities traded on an exchange Level 1 recurring fair value measurement. Mortgage loans held for sale pledged under agreements to repurchase Fair value is estimated based on observable market data including quoted market prices, deal price quotes, and sale commitments. Level 2 recurring fair value measurement. Other current assets Interest rate lock commitments Fair value of the underlying loan based on observable quoted market prices in the secondary market and sale commitments, with adjustments for the estimated pull-through rate. Level 2 recurring fair value measurement for fair value based on observable inputs. Level 3 recurring fair value measurement for fair value with unobservable inputs. Other assets Non-marketable equity securities Fair value is estimated using the observable transaction price. Level 2 non-recurring fair value measurement for fair value based on transaction price. Non-recourse asset-backed debt Credit facilities Fair value is estimated using discounted cash flows based on current lending rates for similar credit facilities with similar terms and remaining time to maturity. Carried at amortized cost. Estimated fair value classified as Level 2. Other secured borrowings Loans sold under agreements to repurchase Fair value is estimated using discounted cash flows based on current lending rates for similar asset-backed debt with similar terms and remaining time to maturity. Carried at amortized cost. Estimated fair value classified as Level 2. Convertible senior notes Fair value is estimated using broker quotes and other observable market inputs. Carried at amortized cost. Warrant liabilities Sponsor Warrants Fair value is estimated using the price of the Public Warrants or their settlement value. Level 2 recurring fair value measurement. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the levels of the fair value hierarchy for the Company’s assets measured at fair value on a recurring basis (in thousands). September 30, 2021 Balance at Fair Value Level 1 Level 2 Level 3 Marketable securities: Corporate debt securities $ 205,702 $ — $ 205,702 $ — Mutual fund 200,264 200,264 — — Equity securities 61,013 61,013 — — Asset-backed securities 4,906 — 4,906 — Certificates of deposit 4,750 — 4,750 — Sovereign bonds 4,416 — 4,416 — Mortgage loans held for sale pledged under agreements to repurchase 22,858 — 22,858 — Other current assets: Interest rate lock commitments 616 — 616 Total assets $ 504,525 $ 261,277 $ 242,632 $ 616 December 31, 2020 Balance at Fair Value Level 1 Level 2 Level 3 Marketable securities: Corporate debt securities $ 26,409 $ — $ 26,409 $ — Asset-backed securities 12,533 — 12,533 — U.S. agency securities 6,995 — 6,995 — U.S. Treasury securities 1,700 — 1,700 — Mortgage loans held for sale pledged under agreements to repurchase 7,529 — 7,529 — Other current assets: Interest rate lock commitments 373 373 Total assets $ 55,539 $ — $ 55,539 $ — Warrant liabilities: Sponsor Warrants 47,349 — $ 47,349 — Total liabilities $ 47,349 $ — $ 47,349 $ — |
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value | The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company’s financial instruments other than assets and liabilities measured at fair value on a recurring basis (in thousands). September 30, 2021 Carrying Value Fair Value Level 1 Level 2 Assets: Cash and cash equivalents $ 1,358,775 $ 1,358,775 $ 1,358,775 $ — Restricted cash 484,476 484,476 484,476 — Other assets: Non-marketable equity securities 5,100 5,100 — 5,100 Liabilities: Non-recourse asset-backed debt $ 5,417,802 $ 5,423,812 $ — $ 5,423,812 Other secured borrowings 19,728 19,728 — 19,728 Convertible senior notes 952,415 1,226,332 — 1,226,332 December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Assets: Cash and cash equivalents $ 1,412,665 $ 1,412,665 $ 1,412,665 $ — Restricted cash 92,863 92,863 92,863 — Liabilities: Credit facilities and other secured borrowings $ 481,789 $ 486,322 $ — $ 486,322 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables show a reconciliation from the opening balances to the closing balances for Level 3 Fair values for the three and nine months ended September 30, 2021 and 2020 (in thousands): Warrants Embedded Interest rate lock commitments Balance as of June 30, 2021 $ — $ — $ 811 Additions — — 1,524 Origination/Terminations — — (2,080) Net change in fair value — — 361 Balance as of September 30, 2021 $ — $ — $ 616 Balance as of December 31, 2020 — — $ — Additions — — 3,872 Origination/Terminations — — (3,747) Net change in fair value — — 491 Balance as of September 30, 2021 $ — $ — $ 616 Warrants Embedded Conversion Option Interest rate lock commitments Balance as of June 30, 2020 $ 5,428 $ 41,697 $ — Settlement of convertible senior notes — (65,014) — Net change in fair value 1,012 23,317 — Balance as of September 30, 2020 $ 6,440 $ — $ — Balance as of December 31, 2019 4,538 41,697 $ — Settlement of convertible senior notes — (65,014) — Net change in fair value 1,902 23,317 — Balance as of September 30, 2020 $ 6,440 $ — $ — |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment as of September 30, 2021 and December 31, 2020, consisted of the following (in thousands): September 30, December 31, Internally developed software $ 62,599 $ 47,823 Computers 9,588 5,511 Security systems 6,791 681 Furniture and fixtures 2,817 3,279 Software implementation costs 2,304 1,680 Leasehold improvements 1,978 2,456 Office equipment 2,113 2,056 Total 88,190 63,486 Accumulated depreciation and amortization (49,869) (34,258) Property and equipment – net $ 38,321 $ 29,228 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets subject to amortization consisted of the following as of September 30, 2021 and December 31, 2020, respectively (in thousands, except years): September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Weighted Average Useful Life (Years) Developed technology 7,911 (3,357) 4,554 0.9 Customer relationships $ 7,400 $ (3,597) $ 3,803 2.9 Trademarks 5,400 (2,417) 2,983 2.9 Non-competition agreements 100 (100) — 0 Intangible assets – net $ 20,811 $ (9,471) $ 11,340 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Weighted Average Useful Life (Years) Customer relationships $ 7,400 $ (2,622) $ 4,778 3.7 Trademarks 5,400 (1,652) 3,748 3.7 Developed technology 2,921 (2,921) — 0 Non-competition agreements 100 (100) — 0 Intangible assets – net $ 15,821 $ (7,295) $ 8,526 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 30, 2021, expected amortization of intangible assets is as follows: Fiscal Years (In thousands) Remainder of 2021 $ 1,838 2022 5,616 2023 2,320 2024 1,566 Total $ 11,340 |
SHARE-BASED AWARDS (Tables)
SHARE-BASED AWARDS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the Stock Option Activity | A summary of the stock option activity for the nine months ended September 30, 2021, is as follows: Number of Options (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Balance-December 31, 2020 24,158 $ 1.91 5.4 $ 502,767 Granted 150 15.00 Exercised (6,791) 1.68 Forfeited (774) 3.84 Expired (3) 3.02 Balance-September 30, 2021 16,740 $ 2.05 4.8 $ 309,327 Exercisable-September 30, 2021 14,386 $ 1.70 4.4 $ 270,848 |
Summary of the RSU Activity | A summary of the RSU activity for the nine months ended September 30, 2021, is as follows: Number of RSUs (in thousands) Weighted- Average Grant-Date Fair Value Unvested and outstanding-December 31, 2020 46,525 $ 10.88 Granted 29,830 20.44 Vested (17,712) 7.09 Forfeited (2,239) 8.69 Unvested and outstanding-September 30, 2021 56,404 $ 17.63 |
Summary of the Restricted Shares Activity | A summary of the Restricted Shares activity for the nine months ended September 30, 2021 is as follows: Number of Restricted Shares (in thousands) Average Grant-Date Fair Value Unvested-December 31, 2020 2,148 $ 3.74 Granted — — Vested (932) 3.58 Unvested-September 30, 2021 1,216 $ 3.86 |
Summary of Stock-Based Compensation Expense in the Statements of Operations | Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. The following table summarizes total stock-based compensation expense by function as presented in the condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020, as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 General and administrative $ 52,289 $ 1,531 $ 405,032 $ 5,117 Sales, marketing and operations 1,807 240 10,077 996 Technology and development 7,915 751 49,950 3,049 Total stock-based compensation expense $ 62,011 $ 2,522 $ 465,059 $ 9,162 |
Summary of Assumptions Used in the Black-Scholes Model for Employee and non-Employee Stock Options | The Black-Scholes Model used to value stock options incorporates the following assumptions: 2021 Fair value $ 15.00 Volatility 73 % Risk-free rate 1.09 % Expected life (in years) 7 Expected dividend $ — |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common shareholders for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Basic and diluted net loss per share: Numerator: Net loss attributable to common shareholders – basic and diluted $ (56,819) $ (80,853) $ (471,060) $ (198,968) Denominator: Weighted average shares outstanding – basic and diluted 603,389 89,070 585,854 85,907 Basic and diluted net loss per share $ (0.09) $ (0.91) $ (0.80) $ (2.32) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Common Stock Warrants — 3,370 — 3,370 Series D Preferred Stock Warrants — 485 — 485 Series E Preferred Stock Warrants — 363 — 363 RSUs 56,404 31,804 56,404 31,804 Options 16,740 30,288 16,740 30,288 Unvested Shares from Early Exercise 9 74 9 74 Restricted Shares 1,216 2,458 1,216 2,458 Redeemable convertible preferred stock — 314,424 — 314,424 Total anti-dilutive securities 74,369 383,266 74,369 383,266 |
DESCRIPTION OF BUSINESS AND A_4
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES - Correction of Prior Period Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 18, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Warrants outstanding | $ 47,349 | $ 0 | $ 0 | ||
Derivative and warrant fair value adjustment | 3,500 | 12,179 | $ (1,901) | ||
Accumulated deficit | (1,043,449) | (1,514,509) | (1,514,509) | ||
Additional paid-in capital | (2,596,012) | $ (3,877,418) | $ (3,877,418) | ||
Revision of Prior Period, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Warrants outstanding | 47,349 | ||||
Accumulated deficit | 33,794 | ||||
Additional paid-in capital | 81,143 | ||||
Sponsor Warrants | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Warrants outstanding | 47,300 | $ 81,100 | |||
Derivative and warrant fair value adjustment | 33,800 | ||||
Private Warrants | Revision of Prior Period, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Warrants outstanding | $ 47,300 |
DESCRIPTION OF BUSINESS AND A_5
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES - Impact of the Correction on the Company's Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
WARRANT LIABILITIES | $ 0 | $ 47,349 | |||||
Total liabilities | [1] | 6,605,754 | 622,924 | ||||
Additional paid-in capital | 3,877,418 | 2,596,012 | |||||
Accumulated deficit | (1,514,509) | (1,043,449) | |||||
Total shareholders’ equity | $ 2,362,861 | $ 2,417,921 | 1,552,658 | $ (708,650) | $ (843,519) | $ (733,103) | |
Previously Stated | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
WARRANT LIABILITIES | 0 | ||||||
Total liabilities | 575,575 | ||||||
Additional paid-in capital | 2,677,155 | ||||||
Accumulated deficit | (1,077,243) | ||||||
Total shareholders’ equity | 1,600,007 | ||||||
Adjustments | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
WARRANT LIABILITIES | 47,349 | ||||||
Total liabilities | 47,349 | ||||||
Additional paid-in capital | (81,143) | ||||||
Accumulated deficit | 33,794 | ||||||
Total shareholders’ equity | $ (47,349) | ||||||
[1] | The Company’s consolidated liabilities at September 30, 2021 and December 31, 2020 include the following liabilities for which the VIE creditors do not have recourse to Opendoor: Accounts payable and other accrued liabilities, $66,134 and $2,335; Interest payable, $9,413 and $1,059; Current portion of non-recourse asset-backed debt, $4,049,812 and $339,173; Non-recourse asset-backed debt, net of current portion, $1,367,989 and $135,467; and Total liabilities, $5,493,348 and $478,034, respectively. |
DESCRIPTION OF BUSINESS AND A_6
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES - Convertible Senior Notes (Details) | Sep. 30, 2021 |
Senior Convertible Notes 2026 | Convertible Debt | |
Debt Instrument [Line Items] | |
Stated Cash Interest Rate | 0.25% |
DESCRIPTION OF BUSINESS AND A_7
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES - Impairment of Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of long-lived assets held-for-use | $ 0.7 | $ 0 | $ 4.2 | $ 1.8 |
Technology and development | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of long-lived assets held-for-use | 0.7 | 3.2 | 0.9 | |
General and administrative | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of long-lived assets held-for-use | $ 0 | $ 1 | $ 0.9 |
DESCRIPTION OF BUSINESS AND A_8
DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES - Public and Sponsor Warrants (Details) - $ / shares | Sep. 30, 2021 | Jul. 09, 2021 | Apr. 30, 2020 |
Class of Warrant or Right [Line Items] | |||
Exercise price of warrants (in dollars per share) | $ 11.50 | ||
Warrants to purchase share of Class A common stock | 1 | ||
Reference value (in dollars per share) | 18 | ||
Warrant redemption price (in dollars per share) | $ 0.10 | ||
Social Capital Hedosophia Holdings Corp II - IPO | |||
Class of Warrant or Right [Line Items] | |||
Number of units issued (in shares) | 41,400,000 | ||
Common stock price per share (in usd per share) | $ 10 | ||
Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Exercise price of warrants (in dollars per share) | $ 11.50 | $ 11.50 | |
Warrants to purchase shares (in shares) | 13,799,947 | 13,800,000 | |
Warrants to purchase share of Class A common stock | 1 | ||
Sponsor Warrants | |||
Class of Warrant or Right [Line Items] | |||
Exercise price of warrants (in dollars per share) | $ 11.50 | ||
Warrants to purchase shares (in shares) | 6,133,333 | ||
Price per warrant (in usd per share) | $ 1.50 | ||
Warrants to purchase share of Class A common stock | 1 | ||
Reference value (in dollars per share) | 18 | ||
Maximum | Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Reference value (in dollars per share) | $ 18 |
BUSINESS COMBINATION - Addition
BUSINESS COMBINATION - Additional Information (Details) $ / shares in Units, $ in Thousands | Dec. 18, 2020USD ($)$ / sharesshares | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Business Combination [Line Items] | |||
PIPE share conversion ratio | 1 | ||
Equity issuance costs | $ 28,876 | $ 0 | |
Transaction with Social Capital Hedosophia Holdings Corp. II I Common Stock | |||
Business Combination [Line Items] | |||
Consideration received due to reverse recapitalization | $ 376,600 | ||
PIPE shares issued by Social Capital Hedosophia Holdings Corp. II | shares | 60,005,000 | ||
Common stock price per PIPE Shares (in usd per share) | $ / shares | $ 10 | ||
Total PIPE shares investment | $ 600,100 | ||
Exchange ratio upon Business Combination with Social Capital Hedosophia Holdings Corp. II | 1.618 | ||
Opendoor Technologies Inc. Common Stock | Common Stock Warrants | |||
Business Combination [Line Items] | |||
Equity issuance costs | $ 43,600 |
BUSINESS COMBINATION - Pro.com
BUSINESS COMBINATION - Pro.com Acquisition (Details) - Pro.com $ in Thousands | Sep. 03, 2021USD ($) |
Business Acquisition [Line Items] | |
Acquisition of outstanding equity (in percent) | 100.00% |
Cash consideration | $ 21,800 |
Developed technology | |
Business Acquisition [Line Items] | |
Acquired intangible assets | $ 4,200 |
Remaining Weighted Average Useful Life (Years) | 1 year |
REAL ESTATE INVENTORY (Details)
REAL ESTATE INVENTORY (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Work-in-process | $ 2,759,984 | $ 183,004 |
Finished goods | 3,508,097 | 282,932 |
Total real estate inventory | $ 6,268,081 | $ 465,936 |
CASH, CASH EQUIVALENTS, AND I_3
CASH, CASH EQUIVALENTS, AND INVESTMENTS - Amortized Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 1,358,775 | $ 1,412,665 | $ 469,365 |
Equity securities | 61,013 | ||
Total cost basis | 1,839,932 | 1,460,260 | |
Unrealized Gains | 17 | 48 | |
Unrealized Losses | (123) | (6) | |
Fair Value | 219,774 | ||
Total fair value | 1,839,826 | 1,460,302 | |
Cash and Cash Equivalents | 1,358,775 | 1,412,665 | |
Equity securities, cash and cash equivalents | 0 | ||
Equity securities, marketable securities | 61,013 | ||
Marketable Securities | 481,051 | 47,637 | |
Commercial paper | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 81,037 | ||
Unrealized Gains | 1 | ||
Unrealized Losses | 0 | ||
Fair Value | 81,038 | ||
Cash and Cash Equivalents | 81,038 | ||
Corporate debt securities | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 205,805 | 29,891 | |
Unrealized Gains | 17 | 26 | |
Unrealized Losses | (120) | (2) | |
Fair Value | 205,702 | 29,915 | |
Cash and Cash Equivalents | 3,506 | ||
Debt securities, available-for-sale, cash and cash equivalents | 0 | ||
Debt securities, available-for-sale, marketable securities | 205,702 | 26,409 | |
Mutual fund | |||
Cash and Cash Equivalents [Line Items] | |||
Mutual fund | 200,264 | ||
Mutual fund, cash and cash equivalents | 0 | ||
Mutual fund, marketable securities | 200,264 | ||
Asset-backed securities | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 4,907 | 12,518 | |
Unrealized Gains | 0 | 19 | |
Unrealized Losses | (1) | (4) | |
Fair Value | 4,906 | 12,533 | |
Cash and Cash Equivalents | 0 | ||
Debt securities, available-for-sale, cash and cash equivalents | 0 | ||
Debt securities, available-for-sale, marketable securities | 4,906 | 12,533 | |
Certificates of deposit | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 4,750 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | 0 | ||
Fair Value | 4,750 | ||
Debt securities, available-for-sale, cash and cash equivalents | 0 | ||
Debt securities, available-for-sale, marketable securities | 4,750 | ||
Sovereign bonds | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 4,418 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | (2) | ||
Fair Value | 4,416 | ||
Debt securities, available-for-sale, cash and cash equivalents | 0 | ||
Debt securities, available-for-sale, marketable securities | 4,416 | ||
U.S. agency securities | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 6,993 | ||
Unrealized Gains | 2 | ||
Unrealized Losses | 0 | ||
Fair Value | 6,995 | ||
Cash and Cash Equivalents | 0 | ||
Debt securities, available-for-sale, marketable securities | 6,995 | ||
U.S. Treasury securities | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 1,700 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | 0 | ||
Fair Value | 1,700 | ||
Cash and Cash Equivalents | 0 | ||
Debt securities, available-for-sale, marketable securities | 1,700 | ||
Cash | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 83,893 | 709,924 | |
Money market funds | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 974,657 | $ 618,197 | |
Time deposit | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 300,225 |
CASH, CASH EQUIVALENTS, AND I_4
CASH, CASH EQUIVALENTS, AND INVESTMENTS - Summary of Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Fair Value, Less than 12 Months | $ 188,741 | $ 31,445 |
Unrealized Losses, Less than 12 Months | (123) | (6) |
Fair Value, 12 Months or Greater | 0 | 0 |
Unrealized Losses 12 Months or Greater | 0 | 0 |
Fair Value, Total | 188,741 | 31,445 |
Unrealized Losses, Total | (123) | (6) |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Fair Value, Less than 12 Months | 19,296 | |
Unrealized Losses, Less than 12 Months | 0 | |
Fair Value, 12 Months or Greater | 0 | |
Unrealized Losses 12 Months or Greater | 0 | |
Fair Value, Total | 19,296 | |
Unrealized Losses, Total | 0 | |
Corporate debt securities | ||
Cash and Cash Equivalents [Line Items] | ||
Fair Value, Less than 12 Months | 174,669 | 7,538 |
Unrealized Losses, Less than 12 Months | (120) | (2) |
Fair Value, 12 Months or Greater | 0 | 0 |
Unrealized Losses 12 Months or Greater | 0 | 0 |
Fair Value, Total | 174,669 | 7,538 |
Unrealized Losses, Total | (120) | (2) |
Asset-backed securities | ||
Cash and Cash Equivalents [Line Items] | ||
Fair Value, Less than 12 Months | 4,906 | 4,611 |
Unrealized Losses, Less than 12 Months | (1) | (4) |
Fair Value, 12 Months or Greater | 0 | 0 |
Unrealized Losses 12 Months or Greater | 0 | 0 |
Fair Value, Total | 4,906 | 4,611 |
Unrealized Losses, Total | (1) | $ (4) |
Certificates of deposit | ||
Cash and Cash Equivalents [Line Items] | ||
Fair Value, Less than 12 Months | 4,750 | |
Unrealized Losses, Less than 12 Months | 0 | |
Fair Value, 12 Months or Greater | 0 | |
Unrealized Losses 12 Months or Greater | 0 | |
Fair Value, Total | 4,750 | |
Unrealized Losses, Total | 0 | |
Sovereign bonds | ||
Cash and Cash Equivalents [Line Items] | ||
Fair Value, Less than 12 Months | 4,416 | |
Unrealized Losses, Less than 12 Months | (2) | |
Fair Value, 12 Months or Greater | 0 | |
Unrealized Losses 12 Months or Greater | 0 | |
Fair Value, Total | 4,416 | |
Unrealized Losses, Total | $ (2) |
CASH, CASH EQUIVALENTS, AND I_5
CASH, CASH EQUIVALENTS, AND INVESTMENTS - Schedule of Contractual Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Fair Value | $ 219,774 | |
Within 1 Year | 69,662 | |
After 1 Year through 5 Years | 150,112 | |
Corporate debt securities | ||
Cash and Cash Equivalents [Line Items] | ||
Fair Value | 205,702 | $ 29,915 |
Within 1 Year | 58,452 | |
After 1 Year through 5 Years | 147,250 | |
Asset-backed securities | ||
Cash and Cash Equivalents [Line Items] | ||
Fair Value | 4,906 | $ 12,533 |
Within 1 Year | 2,044 | |
After 1 Year through 5 Years | 2,862 | |
Certificates of deposit | ||
Cash and Cash Equivalents [Line Items] | ||
Fair Value | 4,750 | |
Within 1 Year | 4,750 | |
After 1 Year through 5 Years | 0 | |
Sovereign bonds | ||
Cash and Cash Equivalents [Line Items] | ||
Fair Value | 4,416 | |
Within 1 Year | 4,416 | |
After 1 Year through 5 Years | $ 0 |
CASH, CASH EQUIVALENTS, AND I_6
CASH, CASH EQUIVALENTS, AND INVESTMENTS - Additional Information (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Purchase of non-marketable equity securities | $ 5,100,000 | $ 0 |
DERIVATIVE INSTRUMENTS - Notion
DERIVATIVE INSTRUMENTS - Notional Amounts and Fair Values of Derivatives (Details) - Interest rate lock commitments - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 34,146 | $ 15,130 |
Fair Value Derivatives, Asset | 616 | 373 |
Fair Value Derivatives, Liability | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gain (loss) | $ (195) | $ 222 | $ 243 | $ 753 |
Derivative and warrant fair value adjustment | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gain (loss) | 0 | (23,317) | 0 | (23,317) |
Other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative gain (loss) | $ 0 | $ 0 | $ 0 | $ (4) |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
ASSETS | ||||
Cash and cash equivalents | $ 1,358,775 | $ 1,412,665 | $ 469,365 | |
Restricted cash | 484,476 | 92,863 | ||
Real estate inventory | 6,268,081 | 465,936 | ||
TOTAL ASSETS | [1] | 8,968,615 | 2,175,582 | |
Liabilities | ||||
Total liabilities | [2] | 6,605,754 | 622,924 | |
Variable Interest Entity, Primary Beneficiary | ||||
ASSETS | ||||
Cash and cash equivalents | 11,567 | 15,849 | ||
Restricted cash | 475,305 | 81,408 | ||
Real estate inventory | 6,131,362 | 460,680 | ||
Other | 141,938 | 6,729 | ||
TOTAL ASSETS | 6,760,172 | 564,666 | ||
Liabilities | ||||
Non-recourse asset-backed debt | 5,417,801 | 474,640 | ||
Other | 75,547 | 3,394 | ||
Total liabilities | $ 5,493,348 | $ 478,034 | ||
[1] | The Company’s consolidated assets at September 30, 2021 and December 31, 2020 include the following assets of certain variable interest entities (“VIEs”) that can only be used to settle the liabilities of those VIEs: Cash and cash equivalents, $11,567 and $15,849; Restricted cash, $475,305 and $81,408; Real estate inventory, net, $6,131,362 and $460,680; Escrow receivable, $102,685 and $1,364; Other current assets, $39,253 and $5,365; and Total assets of $6,760,172 and $564,666, respectively. | |||
[2] | The Company’s consolidated liabilities at September 30, 2021 and December 31, 2020 include the following liabilities for which the VIE creditors do not have recourse to Opendoor: Accounts payable and other accrued liabilities, $66,134 and $2,335; Interest payable, $9,413 and $1,059; Current portion of non-recourse asset-backed debt, $4,049,812 and $339,173; Non-recourse asset-backed debt, net of current portion, $1,367,989 and $135,467; and Total liabilities, $5,493,348 and $478,034, respectively. |
CREDIT FACILITIES AND LONG-TE_3
CREDIT FACILITIES AND LONG-TERM DEBT - Summary of Credit Facilities and Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 6,354,000 | |
Net Carrying Amount | 1,367,989 | $ 135,467 |
Outstanding, Current | 4,049,812 | 339,173 |
Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | 5,730,000 | |
Outstanding Amount, Current | 4,049,812 | 339,173 |
Outstanding Amount, Noncurrent | 750,000 | 0 |
Issuance costs | (3,234) | |
Net Carrying Amount | 746,766 | |
Line of Credit | Mezzanine Term Debt Facilities | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | 624,000 | |
Outstanding Amount, Current | 0 | 0 |
Outstanding Amount, Noncurrent | 624,000 | 140,000 |
Issuance costs | (2,777) | (4,533) |
Net Carrying Amount | 621,223 | 135,467 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | 100,000 | |
Net Carrying Amount | 0 | 0 |
Outstanding, Current | 19,728 | 7,149 |
Secured Debt | Repo Facility 2019-R1 | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | 100,000 | |
Outstanding Amount, Current | 19,728 | 7,149 |
Outstanding Amount, Noncurrent | $ 0 | $ 0 |
Weighted average interest rate (in percent) | 1.84% | 1.94% |
Revolving Facility 2018-2 | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 1,000,000 | |
Outstanding Amount, Current | 999,206 | $ 0 |
Outstanding Amount, Noncurrent | $ 0 | $ 0 |
Weighted average interest rate (in percent) | 2.84% | 4.36% |
Revolving Facility 2018-3 | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 750,000 | |
Outstanding Amount, Current | 650,000 | $ 25,385 |
Outstanding Amount, Noncurrent | $ 0 | $ 0 |
Weighted average interest rate (in percent) | 2.47% | 4.19% |
Revolving Facility 2019-1 | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 900,000 | |
Outstanding Amount, Current | 632,366 | $ 32,535 |
Outstanding Amount, Noncurrent | $ 0 | $ 0 |
Weighted average interest rate (in percent) | 2.84% | 3.58% |
Revolving Facility 2019-2 | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 1,030,000 | |
Outstanding Amount, Current | 1,028,206 | $ 230,352 |
Outstanding Amount, Noncurrent | $ 0 | $ 0 |
Weighted average interest rate (in percent) | 2.55% | 3.08% |
Revolving Facility 2019-3 | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 925,000 | |
Outstanding Amount, Current | 627,938 | $ 50,901 |
Outstanding Amount, Noncurrent | $ 0 | $ 0 |
Weighted average interest rate (in percent) | 3.25% | 3.60% |
Revolving Facility 2021-1 | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 125,000 | |
Outstanding Amount, Current | 112,096 | |
Outstanding Amount, Noncurrent | $ 0 | |
Weighted average interest rate (in percent) | 2.15% | |
Term Debt Facility 2021-S1 | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 400,000 | |
Outstanding Amount, Current | 0 | |
Outstanding Amount, Noncurrent | $ 250,000 | |
Weighted average interest rate (in percent) | 3.48% | |
Term Debt Facility 2021-S2 | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 600,000 | |
Outstanding Amount, Current | 0 | |
Outstanding Amount, Noncurrent | $ 500,000 | |
Weighted average interest rate (in percent) | 3.20% | |
Term Debt Facility 2016-M1 | Line of Credit | Mezzanine Term Debt Facilities | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 324,000 | |
Outstanding Amount, Current | 0 | $ 0 |
Outstanding Amount, Noncurrent | $ 324,000 | $ 40,000 |
Weighted average interest rate (in percent) | 10.00% | 10.00% |
Term Debt Facility 2020-M1 | Line of Credit | Mezzanine Term Debt Facilities | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 300,000 | |
Outstanding Amount, Current | 0 | $ 0 |
Outstanding Amount, Noncurrent | $ 300,000 | $ 100,000 |
Weighted average interest rate (in percent) | 10.00% | 10.00% |
Revolving Facility 2018-1 | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Outstanding Amount, Current | $ 0 | |
Outstanding Amount, Noncurrent | $ 0 | |
Weighted average interest rate (in percent) | 4.28% |
CREDIT FACILITIES AND LONG-TE_4
CREDIT FACILITIES AND LONG-TERM DEBT - Asset Backed Senior Credit Facilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Credit facility, outstanding amount, current liabilities | $ 4,049,812 | $ 339,173 |
Credit facility, outstanding amount, noncurrent liabilities | 1,367,989 | $ 135,467 |
Revolving Credit Facility | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility, outstanding amount, current liabilities | 4,049,800 | |
Credit facility, outstanding amount, noncurrent liabilities | 750,000 | |
Unamortized Debt Issuance Costs | $ (3,200) | |
Multiple Senior Revolving Credit Facilities | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Term | 24 months | |
Multiple Senior Revolving Credit Facilities | Revolving Credit Facility | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Fully committed borrowing capacity | $ 3,837,400 | |
Withdrawal period | 36 months |
CREDIT FACILITIES AND LONG-TE_5
CREDIT FACILITIES AND LONG-TERM DEBT - Asset-backed Mezzanine Term Debt Facilities (Details) $ in Millions | Sep. 30, 2021USD ($) |
Long-term Debt | |
Debt Instrument [Line Items] | |
Unused borrowing capacity | $ 0 |
CREDIT FACILITIES AND LONG-TE_6
CREDIT FACILITIES AND LONG-TERM DEBT - Mortgage Financing (Details) - Secured Debt $ in Millions | Sep. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
Amount financed | $ 20.6 |
Repo Facility 2019-R1 | |
Debt Instrument [Line Items] | |
Principal amount | 100 |
Amount fully committed | $ 20 |
CREDIT FACILITIES AND LONG-TE_7
CREDIT FACILITIES AND LONG-TERM DEBT - Convertible Senior Notes (Details) - Senior Convertible Notes 2026 - Convertible Debt | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2021USD ($)$ / shares | Aug. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |||
Principal amount | $ 977,500,000 | ||
Amount financed | $ 977,500,000 | $ 977,500,000 | |
Unamortized Debt Issuance Costs | (25,085,000) | (25,085,000) | |
Net Carrying Amount | $ 952,415,000 | $ 952,415,000 | |
Stated Cash Interest Rate | 0.25% | 0.25% | |
Effective Interest Rate | 0.77% | 0.77% | |
Conversion Rate | 0.0519926 | ||
Conversion price (in dollars per share) | $ / shares | $ 19.23 | $ 19.23 | |
Interest expense | $ 694,000 | $ 694,000 | |
Coupon interest | 278,000 | 278,000 | |
Amortization of debt issuance costs | $ 416,000 | $ 416,000 |
CREDIT FACILITIES AND LONG-TE_8
CREDIT FACILITIES AND LONG-TERM DEBT - Capped Calls (Details) $ / shares in Units, $ in Millions | 1 Months Ended |
Aug. 31, 2021USD ($)$ / shares | |
Debt Instrument [Line Items] | |
Capped calls cap price premium | 100.00% |
Call Option | |
Debt Instrument [Line Items] | |
Capped calls cost | $ | $ 118.8 |
Capped calls strike price (in dollars per share) | $ 19.23 |
Capped calls cap price (in dollars per share) | $ 29.59 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrants outstanding | $ 0 | $ 47,349 |
Interest rate lock commitments | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative asset | 616 | 373 |
Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans held for sale pledged under agreements to repurchase | 22,858 | 7,529 |
Total assets | 504,525 | 55,539 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrants outstanding | 47,349 | |
Total liabilities | 47,349 | |
Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans held for sale pledged under agreements to repurchase | 0 | 0 |
Total assets | 261,277 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrants outstanding | 0 | |
Total liabilities | 0 | |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans held for sale pledged under agreements to repurchase | 22,858 | 7,529 |
Total assets | 242,632 | 55,539 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrants outstanding | 47,349 | |
Total liabilities | 47,349 | |
Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Mortgage loans held for sale pledged under agreements to repurchase | 0 | 0 |
Total assets | 616 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Warrants outstanding | 0 | |
Total liabilities | 0 | |
Fair Value, Recurring | Interest rate lock commitments | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative asset | 616 | 373 |
Fair Value, Recurring | Interest rate lock commitments | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative asset | ||
Fair Value, Recurring | Interest rate lock commitments | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative asset | 0 | 373 |
Fair Value, Recurring | Interest rate lock commitments | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative asset | 616 | |
Fair Value, Recurring | Corporate debt securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 205,702 | 26,409 |
Fair Value, Recurring | Corporate debt securities | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Corporate debt securities | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 205,702 | 26,409 |
Fair Value, Recurring | Corporate debt securities | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Mutual fund | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 200,264 | |
Fair Value, Recurring | Mutual fund | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 200,264 | |
Fair Value, Recurring | Mutual fund | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Mutual fund | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Equity securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 61,013 | |
Fair Value, Recurring | Equity securities | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 61,013 | |
Fair Value, Recurring | Equity securities | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Equity securities | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Asset-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 4,906 | 12,533 |
Fair Value, Recurring | Asset-backed securities | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Asset-backed securities | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 4,906 | 12,533 |
Fair Value, Recurring | Asset-backed securities | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 4,750 | |
Fair Value, Recurring | Certificates of deposit | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Certificates of deposit | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 4,750 | |
Fair Value, Recurring | Certificates of deposit | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Sovereign bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 4,416 | |
Fair Value, Recurring | Sovereign bonds | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Sovereign bonds | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 4,416 | |
Fair Value, Recurring | Sovereign bonds | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | $ 0 | |
Fair Value, Recurring | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 6,995 | |
Fair Value, Recurring | U.S. agency securities | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | U.S. agency securities | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 6,995 | |
Fair Value, Recurring | U.S. agency securities | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | U.S. Treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 1,700 | |
Fair Value, Recurring | U.S. Treasury securities | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 0 | |
Fair Value, Recurring | U.S. Treasury securities | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | 1,700 | |
Fair Value, Recurring | U.S. Treasury securities | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Marketable securities | $ 0 |
FAIR VALUE DISCLOSURES - Fair_2
FAIR VALUE DISCLOSURES - Fair Value Disclosure of Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Non-marketable equity securities | $ 61,013 | |
Fair Value, Inputs, Level 1 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Cash and cash equivalents | 1,358,775 | $ 1,412,665 |
Non-marketable equity securities | 0 | |
Credit facilities and other secured borrowings | 0 | 0 |
Other secured borrowings | 0 | |
Convertible senior notes | 0 | |
Fair Value, Inputs, Level 1 | Restricted Cash | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Cash and cash equivalents | 484,476 | 92,863 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Non-marketable equity securities | 5,100 | |
Credit facilities and other secured borrowings | 5,423,812 | 486,322 |
Other secured borrowings | 19,728 | |
Convertible senior notes | 1,226,332 | |
Fair Value, Inputs, Level 2 | Restricted Cash | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Reported Value Measurement | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Cash and cash equivalents | 1,358,775 | 1,412,665 |
Non-marketable equity securities | 5,100 | |
Credit facilities and other secured borrowings | 5,417,802 | 481,789 |
Other secured borrowings | 19,728 | |
Convertible senior notes | 952,415 | |
Reported Value Measurement | Restricted Cash | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Cash and cash equivalents | 484,476 | 92,863 |
Estimate of Fair Value Measurement | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Cash and cash equivalents | 1,358,775 | 1,412,665 |
Non-marketable equity securities | 5,100 | |
Credit facilities and other secured borrowings | 5,423,812 | 486,322 |
Other secured borrowings | 19,728 | |
Convertible senior notes | 1,226,332 | |
Estimate of Fair Value Measurement | Restricted Cash | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Cash and cash equivalents | $ 484,476 | $ 92,863 |
FAIR VALUE DISCLOSURES - Unobse
FAIR VALUE DISCLOSURES - Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest rate lock commitments | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 811 | $ 0 | $ 0 | $ 0 |
Additions | 1,524 | 3,872 | ||
Originations/Terminations/Settlement Of Convertible Notes | (2,080) | 0 | (3,747) | 0 |
Net change in fair value | 361 | 0 | 491 | 0 |
Ending balance | 616 | 0 | 616 | 0 |
Warrants | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 0 | 5,428 | 0 | 4,538 |
Additions | 0 | 0 | ||
Originations/Terminations/Settlement Of Convertible Notes | 0 | 0 | 0 | 0 |
Net change in fair value | 0 | 1,012 | 0 | 1,902 |
Ending balance | 0 | 6,440 | 0 | 6,440 |
Embedded Conversion Option | ||||
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 0 | 41,697 | 0 | 41,697 |
Additions | 0 | 0 | ||
Originations/Terminations/Settlement Of Convertible Notes | 0 | (65,014) | 0 | (65,014) |
Net change in fair value | 0 | 23,317 | 0 | 23,317 |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | $ 88,190 | $ 88,190 | $ 63,486 | ||
Accumulated depreciation and amortization | (49,869) | (49,869) | (34,258) | ||
Property and equipment – net | 38,321 | 38,321 | 29,228 | ||
Depreciation and amortization expense | 7,200 | $ 6,100 | 18,900 | $ 17,000 | |
Internally developed software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 62,599 | 62,599 | 47,823 | ||
Computers | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 9,588 | 9,588 | 5,511 | ||
Security systems | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 6,791 | 6,791 | 681 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 2,817 | 2,817 | 3,279 | ||
Software implementation costs | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 2,304 | 2,304 | 1,680 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 1,978 | 1,978 | 2,456 | ||
Office equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | $ 2,113 | $ 2,113 | $ 2,056 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill acquisition cost | $ 16,200,000 | $ 0 | |||
Goodwill, impairment loss | $ 0 | $ 0 | 0 | $ 0 | |
Domain names for intangible assets | 200,000 | 200,000 | $ 200,000 | ||
Amortization expense of intangible assets | $ 1,000,000 | $ 900,000 | $ 2,200,000 | $ 3,100,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 20,811 | $ 15,821 | |
Accumulated Amortization | (9,471) | (7,295) | |
Net Carrying Amount | 11,340 | 8,526 | |
Developed technology | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 7,911 | 2,921 | |
Accumulated Amortization | (3,357) | (2,921) | |
Net Carrying Amount | $ 4,554 | 0 | |
Remaining Weighted Average Useful Life (Years) | 0 years | 10 months 24 days | |
Customer relationships | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 7,400 | 7,400 | |
Accumulated Amortization | (3,597) | (2,622) | |
Net Carrying Amount | $ 3,803 | 4,778 | |
Remaining Weighted Average Useful Life (Years) | 3 years 8 months 12 days | 2 years 10 months 24 days | |
Trademarks | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 5,400 | 5,400 | |
Accumulated Amortization | (2,417) | (1,652) | |
Net Carrying Amount | $ 2,983 | 3,748 | |
Remaining Weighted Average Useful Life (Years) | 3 years 8 months 12 days | 2 years 10 months 24 days | |
Non-competition agreements | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 100 | 100 | |
Accumulated Amortization | (100) | (100) | |
Net Carrying Amount | $ 0 | $ 0 | |
Remaining Weighted Average Useful Life (Years) | 0 years | 0 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Expected Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 1,838 | |
2022 | 5,616 | |
2023 | 2,320 | |
2024 | 1,566 | |
Net Carrying Amount | $ 11,340 | $ 8,526 |
SHAREHOLDERS_ EQUITY (Details)
SHAREHOLDERS’ EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 11, 2021 | Feb. 09, 2021 |
Public Offering And Over-Allotment Option | ||
Class of Stock [Line Items] | ||
Shares sold (in shares) | 32,817,421 | |
Common stock price per PIPE Shares (in usd per share) | $ 27 | |
Net proceeds from offering | $ 859.5 | |
Over-Allotment Option | ||
Class of Stock [Line Items] | ||
Shares sold (in shares) | 4,280,533 |
SHARE-BASED AWARDS - Stock Opti
SHARE-BASED AWARDS - Stock Options and RSUs Information (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 150 |
Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 10 years |
Vesting period | 4 years |
Incentive Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 5 years |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
SHARE-BASED AWARDS - Stock Op_2
SHARE-BASED AWARDS - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Number of Options | ||
Beginning balance (in shares) | shares | 24,158 | |
Granted (in shares) | shares | 150 | |
Exercised (in shares) | shares | (6,791) | |
Forfeited (in shares) | shares | (774) | |
Expired (in shares) | shares | (3) | |
Ending balance (in shares) | shares | 16,740 | 24,158 |
Exercisable (in shares) | shares | 14,386 | |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ / shares | $ 1.91 | |
Granted (in dollars per share) | $ / shares | 15 | |
Exercised (in dollars per share) | $ / shares | 1.68 | |
Forfeited (in dollars per share) | $ / shares | 3.84 | |
Expired (in dollars per share) | $ / shares | 3.02 | |
Ending balance (in dollars per share) | $ / shares | 2.05 | $ 1.91 |
Exercisable (in dollars per share) | $ / shares | $ 1.70 | |
Weighted-Average Remaining Contractual Term (in years) and Aggregate Intrinsic Value | ||
Weighted-average remaining contractual term (in years), outstanding | 4 years 9 months 18 days | 5 years 4 months 24 days |
Weighted-average remaining contractual term (in years), exercisable | 4 years 4 months 24 days | |
Aggregate intrinsic values | $ | $ 309,327 | $ 502,767 |
Exercisable, aggregate intrinsic value | $ | $ 270,848 |
SHARE-BASED AWARDS - RSU and Re
SHARE-BASED AWARDS - RSU and Restricted Share Activity (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
RSUs | |
Number of RSUs | |
Beginning balance (in shares) | shares | 46,525 |
Granted (in shares) | shares | 29,830 |
Vested (in shares) | shares | (17,712) |
Forfeited (in shares) | shares | (2,239) |
Ending balance (in shares) | shares | 56,404 |
Weighted- Average Grant-Date Fair Value | |
Beginning balance | $ / shares | $ 10.88 |
Granted (in dollars per share) | $ / shares | 20.44 |
Vested (in dollars per share) | $ / shares | 7.09 |
Forfeited (in dollars per share) | $ / shares | 8.69 |
Ending balance | $ / shares | $ 17.63 |
Restricted Shares | |
Number of RSUs | |
Beginning balance (in shares) | shares | 2,148 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (932) |
Ending balance (in shares) | shares | 1,216 |
Weighted- Average Grant-Date Fair Value | |
Beginning balance | $ / shares | $ 3.74 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 3.58 |
Ending balance | $ / shares | $ 3.86 |
SHARE-BASED AWARDS - Restricted
SHARE-BASED AWARDS - Restricted Shares (Details) - Restricted Shares | 9 Months Ended |
Sep. 30, 2021 | |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
SHARE-BASED AWARDS - Expense an
SHARE-BASED AWARDS - Expense and Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 62,011 | $ 2,522 | $ 465,059 | $ 9,162 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 52,289 | 1,531 | 405,032 | 5,117 |
Sales, marketing and operations | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 1,807 | 240 | 10,077 | 996 |
Technology and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 7,915 | $ 751 | $ 49,950 | $ 3,049 |
SHARE-BASED AWARDS - Stock-Base
SHARE-BASED AWARDS - Stock-Based Compensation Expense (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)marketConditionAwardshares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)marketConditionAward | Sep. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 62,011 | $ 2,522 | $ 465,059 | $ 9,162 |
Market Condition Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of awards with satisfied market conditions | marketConditionAward | 0 | 2 | ||
Stock-based compensation expense, accelerated recognition | $ 2,200 | |||
Market Condition Award | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value for awards | $ 22,400 | 22,400 | ||
Market condition RSUs granted (in shares) | shares | 0 | |||
Stock-based compensation expense | $ 20,000 | $ 270,900 | ||
Market Condition Award | Executive Officer | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 6 months | |||
Market Condition Award | Executive Officer | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 3 years | |||
Unvested Stock Options and Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unamortized stock-based compensation | $ 632,400 | $ 632,400 | ||
Unamortized stock-based compensation period (in years) | 3 years |
SHARE-BASED AWARDS - Valuation
SHARE-BASED AWARDS - Valuation of Options (Details) | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Share-based Payment Arrangement [Abstract] | |
Fair value | $ 15 |
Volatility | 73.00% |
Risk-free rate | 1.09% |
Expected life (in years) | 7 years |
Expected dividend | 0.00% |
WARRANTS - Public and Sponsor W
WARRANTS - Public and Sponsor Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 09, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Class of Warrant or Right [Line Items] | ||||||
Warrants to purchase share of Class A common stock | 1 | |||||
Exercise price of warrants (in dollars per share) | $ 11.50 | $ 11.50 | ||||
Warrant term | 5 years | |||||
Length of trading period used to determine reference value | 30 days | |||||
Exercise price of warrants (in dollars per share) | $ 0.01 | |||||
Reference value (in dollars per share) | $ 18 | $ 18 | ||||
Warrants to purchase shares (in shares) | 19,933,333 | 19,933,333 | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Proceeds from warrant exercise | $ 22,400 | $ 22,402 | $ 0 | |||
Derivative and warrant fair value adjustment | $ (3,500) | $ (12,179) | $ 1,901 | |||
Sponsor Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Derivative and warrant fair value adjustment | $ (33,800) | |||||
Sponsor Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants to purchase shares (in shares) | 6,133,333 | |||||
Warrants to purchase share of Class A common stock | 1 | |||||
Exercise price of warrants (in dollars per share) | $ 11.50 | |||||
Warrant exercise period following completion of business combination | 30 days | |||||
Warrant exercise period following close of initial public offering | 12 months | |||||
Reference value (in dollars per share) | $ 18 | $ 18 | ||||
Public Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants to purchase shares (in shares) | 13,799,947 | 13,800,000 | ||||
Warrants to purchase share of Class A common stock | 1 | |||||
Exercise price of warrants (in dollars per share) | $ 11.50 | $ 11.50 | ||||
Class of warrant or right period of redemption of outstanding warrants with prior written notice of redemption | 30 days | |||||
Number of trading days within trading period | 20 days | |||||
Exercise price of warrants (in dollars per share) | $ 0.10 | |||||
Warrants exercised (in shares) | 874,739 | |||||
Warrants exercised on a cashless basis (in shares) | 12,521,776 | |||||
Common stock received in exchange for warrants (in shares) | 4,452,659 | |||||
Public Warrants | Minimum | ||||||
Class of Warrant or Right [Line Items] | ||||||
Reference value (in dollars per share) | 10 | 10 | ||||
Public Warrants | Maximum | ||||||
Class of Warrant or Right [Line Items] | ||||||
Reference value (in dollars per share) | $ 18 | $ 18 | ||||
Private Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants to purchase shares (in shares) | 6,133,333 | |||||
Exercise price of warrants (in dollars per share) | $ 11.50 | |||||
Warrants exercised (in shares) | 1,073,333 | |||||
Warrants exercised on a cashless basis (in shares) | 5,060,000 | |||||
Common stock received in exchange for warrants (in shares) | 1,799,336 |
WARRANTS - Warrants to Purchase
WARRANTS - Warrants to Purchase Series D Preferred Stock (Details) - USD ($) | Jul. 09, 2021 | Nov. 12, 2020 | Nov. 07, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 12, 2018 |
Class of Warrant or Right [Line Items] | |||||||
Warrants to purchase shares (in shares) | 19,933,333 | ||||||
Exercise price of warrants (in dollars per share) | $ 11.50 | ||||||
Proceeds from warrant exercise | $ 22,400,000 | $ 22,402,000 | $ 0 | ||||
Series D, Penny warrants | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrants to purchase shares (in shares) | 485,262 | ||||||
Exercise price of warrants (in dollars per share) | $ 0.006 | ||||||
Shares exercised and issued (in shares) | 485,262 | ||||||
Proceeds from warrant exercise | $ 3,000 | ||||||
Warrants to purchase shares (in shares) | 0 | ||||||
Series E Warrants | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrants to purchase shares (in shares) | 121,356 | 242,713 | |||||
Exercise price of warrants (in dollars per share) | $ 5.92 | ||||||
Shares exercised and issued (in shares) | 364,069 | ||||||
Proceeds from warrant exercise | $ 2,200,000 | ||||||
Warrants to purchase shares (in shares) | 0 |
WARRANTS - Commitment to Issue
WARRANTS - Commitment to Issue Warrants (Details) - USD ($) | Jul. 09, 2021 | Nov. 07, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Class of Warrant or Right [Line Items] | |||||||
Warrants to purchase shares (in shares) | 19,933,333 | 19,933,333 | |||||
Exercise price of warrants (in dollars per share) | $ 11.50 | $ 11.50 | |||||
Proceeds from warrant exercise | $ 22,400,000 | $ 22,402,000 | $ 0 | ||||
Increase to the warrant fair value adjustments | $ (3,500,000) | $ (12,179,000) | $ 1,901,000 | ||||
Series E Warrants | |||||||
Class of Warrant or Right [Line Items] | |||||||
Warrants to purchase shares (in shares) | 121,356 | 121,356 | 242,713 | ||||
Exercise price of warrants (in dollars per share) | $ 5.92 | $ 5.92 | |||||
Shares exercised and issued (in shares) | 364,069 | ||||||
Proceeds from warrant exercise | $ 2,200,000 | ||||||
Warrants to purchase shares (in shares) | 0 | 0 | |||||
Increase to the warrant fair value adjustments | $ 0 | $ 1,000,000 | $ 0 | $ 1,900,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 326 | $ 35 | $ 610 | $ 234 |
Effective tax rate | (0.58%) | (0.04%) | (0.17%) | (0.12%) |
RELATED PARTIES (Details)
RELATED PARTIES (Details) - Executive Officer - USD ($) $ / shares in Units, $ in Millions | Jun. 29, 2021 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Unvested common stock purchased (in shares) | 1,479,459 | |
Share price (in dollars per share) | $ 1.01 | |
Consideration for purchase of unvested common stock | $ 1.5 | |
Interest rate (in percent) | 2.31% | |
Amount repaid under promissory note | $ 1.6 |
NET LOSS PER SHARE - Additional
NET LOSS PER SHARE - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Dividends declared | $ 0 | $ 0 | $ 0 | $ 0 |
Preferred dividends declared | $ 0 | $ 0 |
NET LOSS PER SHARE - Earnings P
NET LOSS PER SHARE - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (56,819) | $ (80,853) | $ (471,060) | $ (198,968) |
Weighted average shares outstanding - basic (in shares) | 603,389,000 | 89,070,000 | 585,854,000 | 85,907,000 |
Weighted average shares outstanding - diluted (in shares) | 603,389,000 | 89,070,000 | 585,854,000 | 85,907,000 |
Diluted net loss per share (in dollars per share) | $ (0.09) | $ (0.91) | $ (0.80) | $ (2.32) |
Basic net loss per share (in dollars per share) | $ (0.09) | $ (0.91) | $ (0.80) | $ (2.32) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities | 74,369 | 383,266 | 74,369 | 383,266 |
Warrants | Common Stock Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities | 0 | 3,370 | 0 | 3,370 |
Warrants | Series D Preferred Stock Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities | 0 | 485 | 0 | 485 |
Warrants | Series E Preferred Stock Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities | 0 | 363 | 0 | 363 |
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities | 56,404 | 31,804 | 56,404 | 31,804 |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities | 16,740 | 30,288 | 16,740 | 30,288 |
Unvested Shares from Early Exercise | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities | 9 | 74 | 9 | 74 |
Restricted Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities | 1,216 | 2,458 | 1,216 | 2,458 |
Redeemable convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total anti-dilutive securities | 0 | 314,424 | 0 | 314,424 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)home | Sep. 30, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Amount of homes purchased under contract | home | 6,231 | |
Aggregate purchase price for homes | $ 2,259,900 | |
Gain on settlement of lease liabilities | $ 5,237 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Nov. 03, 2021 | Oct. 01, 2021 | Sep. 30, 2021 |
Line of Credit | |||
Subsequent Event [Line Items] | |||
Borrowing Capacity | $ 6,354,000 | ||
Line of Credit | Senior Credit Facility | |||
Subsequent Event [Line Items] | |||
Borrowing Capacity | $ 5,730,000 | ||
Subsequent Event | RedDoor | |||
Subsequent Event [Line Items] | |||
Cash consideration | $ 12,500 | ||
Subsequent Event | Line of Credit | Mezzanine Term Debt Facility | |||
Subsequent Event [Line Items] | |||
Borrowing Capacity | $ 3,000,000 | ||
Committed borrowing capacity | 2,300,000 | ||
Subsequent Event | Line of Credit | Senior Credit Facility | |||
Subsequent Event [Line Items] | |||
Borrowing Capacity | 9,600,000 | ||
Committed borrowing capacity | 6,700,000 | ||
Incremental borrowing capacity | $ 895,000 |