Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by. Welcome to the Opendoor Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Kukulka, conference Group. Investor like speaker to now Whitney today, Relations would turn over the your I of Blueshirt go ahead. Please

Whitney Kukulka

the additional Relations of letter, call webcast which corporate Thank our be that found company's in afternoon. this good Investor can section at earnings management Relations on investor.opendoor.com. the and note section our shareholder you, be available website commentary the will and Details release of simultaneously on Investor are our and website. results of Please

and Before I the like meaning Opendoors' regarding and from objectives remind management neither following financial statements may not could here. results uncertainties law. statements to discussion Federal anticipated that market performance', that materially condition, for deemed promises to the reliance financial statements than cause statements on actual All be the but we risks discussed limited within business of forward and Such would to undue start, are nor placed should including you These historical statements other future strategy statements expansion contains that forward-looking opportunity of be them. are differ fact and and Securities those statements guarantees looking, involve plans, operations. forward-looking not

XXXX on cause Report could updated Form the can by be XX-K Risk that differ the actual found as that XX-K. information Annual filed from after for Additional ended in most our Opendoors Factors to results forward-looking XX, December recent statements periodic section reports year of

today future obligation result whether or expectations and otherwise, a are by of them conference and Any law. as of required forward-looking current or on responses based as new made management's call to including as no revise reasonable information, except to assumes Opendoor questions events this on update statements assumptions your

contains financial to references financial measures. discussion non-GAAP the performance. measurements as to measures company's useful supplemental investors Company are believes to non-GAAP evaluate these certain financial The operational The following

non-GAAP these comparable see most of financial directly measures please to each website GAAP For of metric, a reconciliation our investor.opendoor.com. the at

Wheeler, Opendoor. over call I will of Carrie turn the to Executive Chief Officer now

Carrie Wheeler

Good Officer; today President and me with afternoon. Open Christy Chief Fraser, Financial Interim of Also on Schwartz, Capital Exchange. the our and call Dod is

to where for their buyers people most e-commerce and being platform vision we're sellers home to and move. trusted is continue to the with and life place estate and certainty. simplicity that committed Regardless real can residential the most trusted build and transact home Opendoor's macro environment considering the first transactions of look and

an learned be focusing the to ability new can healthy In to the U.S. market. in time inventory, driving navigating we've and leveraging risk. We're we progress strengthening generate continues demonstrates it economics on of book in control. and lessons We've what made housing cost what current a the significant unit building in offering, environment, we're efficiencies managing positive our our uncertain

We remain us and our pricing operations levers platforms focused come. benefit making on investments will years in to in for growth that durable

best as or to option and of what we've who home. innovate, to be the all-weather product adapt We're always sell with an Opendoor are for we experience want doing consumer the We a build buy and leading done. millions people

costs have maintained platforms. consumer We've resulting and long-term estate that's durable, pace represent with risk. highly spreads efficient to in costs customer our into partnerships are channels. homebuilders, for moderated and us. acquisition to acquisition These fixed channels leaned and average customer have lower higher marketing agents We've online year real We paid intentionally partnerships and this above manage acquisition conversion our our and direct

QX, of contracts contracts. and In partnerships XX% XX% grew total acquisition sequentially acquisition and represented

to grow. continue We expect these partnerships to

direct paid reduced our market as spreads. plan stabilization marketing also to to volume additional we and more drive consumer we However, increase to see

decide those future sell as to bringing incremental we customer to possible seller, at which the paid true of from sellers be contracts home to of quarters sell our top yet seller true everyone that they sellers our minimis reengaging an accepted who who choose received true have sold were a their registered accept an treat cost. requires drive initial whenever their sellers Three time but marketing growth request as one. Not to funnel of home We QX growth. is our offer, believe and sellers offer, Opendoor. but a until and base an access they Partnerships us gives defined important will offer in growing sellers de everyone continue base, do acquisition of to didn't not source we subsequent their registered a registered but

to marketing contracts us in paid QX. of delivering an consumer our channel for XX% remains Direct important

remained However, marketing we such quarter. prioritized flat have but influencer in brand QX, investments given environment, highly consumer spread effective awareness our the nearly year-over-year Despite reducing the spend media limited ad campaigns, creative and as brand in aided higher programs. marketing XX% and agent

the stabilization, certain spreads market. our nimble durably housing is year but the we're of macro for think we're beginning but As looking since housing HPA. be of reducing reactive the control, to seeing improved reaccelerating about signals including The what today, need to in broader and we much a we within growth for further outlook more sitting and market here has

uncertainty. the navigate ongoing have as things taken action we on can we We prescriptive control

management focused overall contribution while customers target to inventory our still achieving structure. pricing and spreads accuracy, are on improve are We trusted margin. durably to our intended These investments reduce cost actions

data model us investment accuracy. data overall pricing home which which computer pricing and into more An all in example level vision, on structured continued our AI relies which turn and our informs modeling insights, home based improve condition of is assessments, to condition, give interior

progress move return will net and today steadfast home us our mission we're much to in positive for transactions the down a heads we actions generational time. to we to build and lives allow to years adjusted do many power The income and more one remain business reflect We continue cycle to come. at to company taking leadership. will our resilient is market this There to from commitment positioned for as transform that are still emerge a

call going over I'm and to that the results. to to review financial With guidance Christy turn

Christina Schwartz

you, Carrie. Thank

clearance reflect disciplined guidance billion second delivered This on strong held into healthy selling continuing end results through inventory. and focused and of and of quarter. homes, Our of We driven $X the by cost while our by remain homes. through sell-through our in management. new We of high build adjusted the contribution a second our market to revenue longer-dated the quarter risk revenue exceeded rates progress delivering capital longest book preserving X% margins

March we was year on resale cohort, of between quarter QX or last XX% end. homes and Notably June made of offers the is sold under by which contract

of QX with of The acquisition prior decline on primarily sidelines. last our purchased offers the front, coupled the as quarter, embedded the result of a versus we year On year since homes down XX% in comes the in sellers elevated June X,XXX XXXX. versus spreads remaining

in reduced to second New buy-box first costs pricing condition, and improvements modest holding XXXX our times improvement declined the on quarter. holding decline view related of shorter prices. model and the We listings expected selling to quarter XX% XXXX and in home reflect our in offered reduced XX% to of year-over-year second first the and a continued to year-over-year to between the in spread due quarter average home

in levels, reduction volumes acquisition XXXX. at elevated translated Even increase though a to XX% spreads the to QX from QX still are

XX% versus negative was represented the of margin of positive driven and which contribution XXXX. negative book inventory, the QX resale QX in X.X% These of contribution negative were Our XX.X% margin mix. in old of XXXX X.X% of results QX by performance our

cohort this of new continues performance gross XX.X% XX.X% Our of contribution to second of book strong with and homes the quarter. generating margin margins in show margins

target to contribution once sold X% We homes our of X% through. group line expect with of perform this in to fully revised margin

to a new We of margin return positive expect in quarter the when contribution majority third composes of book inventory to the resales.

of range EBITDA loss was and inventory $XXX million guidance previously recorded our an quarter the of with adjusted million. high $XXX second loss improvement $XXX the loss of $XXX Adjusted in QX end an from in inclusive negative of XXXX. an EBITDA of adjusted as adjustments This million beat valuation EBITDA of million our

expenses, in spend, from was of QX, adjusted in the as by operating and second million driven $XXX define and contribution in EBITDA beginning margin fixed and half million XXXX million last operational XXXX down between capacity reduced marketing we of Adjusted of the which QX in QX XXX year. delta $XX expenses

begin expect be to rebuilding XXXX. modest adjusted the to expenses of at inventory approximately reflects quarter. the third We to operating $XXX in third quarter a from in million pace The expectation third our quarter increase the second sequential

an XXXX. the partially ended sheet. which with Turning We first was convertible second of equity, this total the to of to million. in our to discount increase $X.X substantial shareholders' driven completed by convertible billion a at our This is with million note from done $XX quarter quarter almost was repurchase March, from value. which $XXX XX% May, our the obligation in million $XXX we in repurchase by note face Combined reduced balance

the ended second which marketable of related equivalents and and securities $XXX total invested unrestricted billion billion in $X.X includes of with assets, in million and quarter We inventory homes capital, $X.X cash, cash in net valuation equity adjustments.

of and mezzanine credit committed $XX.X At of capacity, of capacity senior borrowing facilities total $X.X borrowing billion. senior quarter non-recourse of had billion $X.X asset term was facilities, we $X.X end, revolving comprised backed and billion billion which debt

through our the financing dedicated substantial we've we quarter cohort last in the selling During progress given these homes. the of made round down QX facilities offer

Turning be EBITDA we revenue to be billion expect to loss between $XX adjusted $XX guidance, million third million between to $X $XXX million. quarter and and and

beginning when comprises our contribution resales. of to We margin quarter the expect negative quarter our the second contribution of QX levels last fresh in of positive the with majority book margin mark inventory

to of target to XXXX. QX perform X% We in margin expect X% beginning contribution our within

positive believe in our structure to operating adjusted do and and cash balance have income, return place managing flow for we is sheet We business are proxy to we so. which best to the our net cost

per to of billion We steady acquisitions X% margin at state resales range month our XXXX at or A&I breakeven expect approximately to of and annual contribution X%. revenue XX target reach

the year has beginning modest in the continuing home uncertainty. of spread half expectations at operate XXXX, to to making state the reductions and anticipate we to of with we for price the improved market elevated relative housing back ongoing opportunistically our are account overall the spreads While of

growth to expect return in XXXX. We to revenue

the to A&I it an important not of is as getting the While destination, end journey. breakeven

certain and we acquisition reached our into exceeds we Given resale, costs home lean A&I will be costs corresponding realizing between such recognize the the pace at business holding the in which we and financing point by our revenue. the the lag resale in in breakeven inventory impacted pace, marketing, period SG&A pace inflection inherent which our variable before If growth. would acquisition acquisition as

like I'd our healthy our overall Opendoor our in automation. half cost book cost customers growth and second for these to operations serving improving pursuit via inventory team our with and and continued of The platforms, and thank our a pricing of their members of to will their strong durable investments position. reduced efficiency structure, structure XXXX showcase initiatives capital levers and dedication

We are very forward outlook. the by encouraged go

to I'd the the operator turn to open like over line now to up Q&A. call for the

Operator

Our [Operator the question with Thank JPMorgan. first from Instructions] you. Dae of comes line Lee

Your open. line is now

Dae Lee

the thanks I have taking Great, for questions two.

perspective? first one and the expectations half as in a what help like drove the partnership, pretty XX%. mean component partnership growth? it's drove mix And I sounds So look core last it of as to about a quarter ahead, Could volume looks about mix we grew how should that XXXX, second the like on from think the growth that unpack it us an you your - overall third you to

what your then about Help need headcount are I growing spend main actually Thank costs quarter-over-quarter, I to you. your secondly incremental inventory? more adjusted that talked or the us you as do about think OpEx more starting XQ drivers think your is. you drive on going like on in in inventory today, understand And brand

Carrie Wheeler

partnership I'm I sort hand just Carrie, adjusted it's missed and first Christy the think please talk I'll in. missed Dae jump take something question, got bit little you a to will over Hi, and question, I but OpEx. happy please, she I about adjusted of your to in

one this us acquisition like real us homebuilders, being for a of estate and On like they them includes standpoint. agents partnerships and channels variety platforms include the side these from we'd online cost that customer includes a and Realtor are the reminder, reasons, is partnership of fixed Redfin Zillow, for

and spread to of all agnostic are kind they durable So environments. in

and our in the really was XX% it over contracts about what traded a with product of of those agents moved long natural channel time longer grew noticed we've so time but continue if it customer business, for in of we XX% and driven elevated total parts but plus various growth group environment, so. recognize with we've We to Opendoor makes the partnership a been we would expect that into the in that was, them of partnerships, incremental out for last up the growth the a been a have working You I we, mix, us us quarter-on-quarter. it's for you say really from driver also and the been the and to use we they evolution agents think great quarter, that long power for within of year it contract channel as nice don't spread over was into a an do to overall a break almost of time, for

Zillow three. to And that's online relationship estate, really example to is are grow which And is last of quarter XXX most ramping the in nascent markets the for just us nicely. for then last really of the we starting and just the real part that

that in probably without in growth, getting after order, into of mix. So actual terms specifics

about you OpEx, Christy, do please. want, talk the

Christina Schwartz

Yes, absolutely.

So still throughout we're in effort. the saying by optimizing P&L making that I'll are very and start cost progress we that on focused

a profit adjusted contribution and between As is the delta OpEx adjusted reminder, EBITDA.

profit that And is quarter in contribution adjusted second you the and and a reflection relationship the debt so the of adjusted OpEx OpEx. saw between

When to adjusted in of when contracting Conversely the costs inventory the benefit to some margins. additional will costs specifically contribution of of growth. related related OpEx did movement cohort resale these to is it inventory XQ, as costs will bear OpEx holding adjusted from that growing

a in the per XXX appropriate pace an estimate. at to million quarter, inventory modest third rebuilding be began expect we we As quarter

Dae Lee

right. All Thank you.

Operator

you. Thank

of from next Our Jason Oppenheimer. the question line comes with Helfstein

is now line Your open.

Chad Larkin

on is Hi, thanks. This Chad for Jason.

then sequential at sounds back like of normalized And more. kind it a we so, a How starting least a you're of one basis. the stabilizing bottomed step market of Thanks. taking that the on the prices with I mean growth I bit the market housing bank seemingly should about gone think and the now housing kind little with cohort back into win business in growth have

Carrie Wheeler

Hi, it's Carrie.

pretty growth the a rate, the lot weathered what talk right we've little commentary a which at quarter I'd just last acquisitions couple the back steady half a or as a around the me we this say of year of to tailwind Let back and is I reminder, the X,XXX that. bit of lean growth a month right now, just over the is for seeing a half we then years, weathering of into per Normalized as QX cycle. becomes X,XXX year, recent be given now pace and what about expect obviously headwind. per homes it's think when seasonality

next volume obviously, more partnership drive to to will to us year. start And increase grow that those about We paid us allow will our efficient and way. more will into spend reduce spreads, We're continue drive that more to it talking allows a in marketing the into to we'll volume, lean continue channels.

outlook. that's margins in and be kind for adjusted middle next is we'll of for usually target us acquisitions. volumes, to The we state that's contracts to really net next that X,XXX steady breakeven So marker year, have where the to near-term X,XXX double income of the back growth

Chad Larkin

there? Okay. just helpful. then phase kind And Opendoor update of sounds testing Thanks, in it that's still any you're like exclusives on

Carrie Wheeler

about experiences update that the the markets. Yes, say last we to would surrounding prove no marketplace we're homes say sure around on on in the in we the yes. where product are consumer really last. focused propensity but focus market put we were people quarters, plan from owned sitting fit, two-thirds perfecting can significant remains to their of talked I we're really consumer knew making we've - continuing couple We're

Opendoor offer give offer me there's back get the you a aware an buyer cash amount give better some another can time of you and think to So, come then us from from to institution of or an and if we're market. with that

- continued just see. about so here continue So, the business to be caution, small, the for I we we're over But more more signs by our we we serve but home capital-light sellers evolution really and and would still to early know prospects somebody the long-term it's be that remains of exclusive encouraged optimistic, time. end

Operator

Thank you.

Ygal from of the comes with line Citi question next Group. Arounian Our

Your line is now open.

Ygal Arounian

to characterization? are - correctly, like of remember actually ways good end rolled piece. If Chad's want on afternoon from I sound we more the Is out that capital XX% I think it were the a out strategy I guys. question being slowly. I targeting it's the follow-up year. those changing, exclusive Hi, by that. a bit feel of fair a pushed we're or doesn't being around I a does it on mean little is being the like in more markets off think at kind still bit little

where goals So where bridge are from us today kind maybe to help want like Thanks. you - of to just the we - be?

Carrie Wheeler

that. to happy address I'm Sure.

So we the markets what our market markets volumes we'll like actually in we at wanes said add and in have We exclusive. quarter in volumes We be through last want marketplace. as of waxes that XX% hit so running to. which those the to the

the So protecting is year. I of being we volumes consumer those plays what on actual the how about now, meeting of would We'll see end but slate, we're focused experience tool, again - reflecting think it of still the us metrics for more out. percentage by right the this

Ygal Arounian

XXXX. environment, have to of inventory think couple. spreads you back strategy of to you we the on guys things before as a which And from to purchase slowed you a kind kind And be down can kind going about and still I for year. prudent similarly need your Can on real on business starting the - people product think where to to little to from the a like entice people's sense? then is know the back later to feel bit. expand do back experience that more, level more you certain historically A up move we acquisition of here? or homeowners the been and here scale the about have be that. delivers lot of strategy move to in I inventory growth what drag to reducing just might you Thanks. to inventory sell they needle of Okay. push kind a But of people to we're of willingness their spread amount on out bridge revenue low homes. Maybe up. getting just there's what's needs reluctancy that of still a for and to if like If to always of get go people going makes lot value need levels push

Carrie Wheeler

So Dod?

Dod Fraser

of the - on can macro we move sort there. from then that Yes question, layer of

I what about think the stable housing like need in when home looks think stability we we pricing. market

reduce we So, can spreads. our

look where have today, you we we of sit in just which wider if And a distribution so, outcomes at reflected there's spreads. much higher

it's so, reduce that to spreads. pricing which us And our really allow stability, will

volumes need fully do market not We to recover.

for with $X market a of about TAM our trillion If dollar zoom kind billion. a you talking minute, we're out being $XXX

So, despite today. we a in lower slice had market volumes big that slightly the a of bigger very we're

cost conversion is unlocks improving reduce can what what focused and spreads we're improves control. We our So, can spend. on we marketing structure, which through

on our growth with focused partnership We're our deepening drivers. channels, long-term

us volumes, those will we've in drive were of XXXX. incremental allow really and acquisition to to all volumes as those So re-accelerate taken actions discussed

Ygal Arounian

so Thanks much.

Dod Fraser

Of course.

Operator

you. Thank

with Nick of line the from JMP comes question Securities. next Jones Our

now line Your open. is

Nick Jones

there's costs of Is to some brand through strong does to Great, room able back those taking partnership marketing your maybe And top generate your channels? that thanks kind as spend. own, is success of continue ability channels. that having first direct-to-consumer of supersede kind brands acquiring kind wiggle then those fair to to or take, brand awareness partner be to operations on you through down the channels just I build kind pull and the for assume Opendoor of of you're kind sales, through of guess questions. it may with

Carrie Wheeler

channels marketing. imagine to but time. to we cost paid would you of another marketing We some that continue fixed of so, may Carrie, potentially leverage outstrip It's marketing spreads make to invest right our volumes, Where a channels over to as the that's grow, able cost overall allow we're be Nick. driving our should want that effective direct-to-consumer paid so not investments and do us those going we be with to long dollars. cap Hi driver

returns. not it's If high

So we've awareness. let's objective we our time, do long-term continue to our able it an scale, nationally. but grown in draw been we've We've say to is market evolves to for able leverage that as been to and over sure spend marketing

our been us to And I expenses jump the recent XX% customers spend about of paid are It's most sustained things is Opendoor and the even know in we more think to awareness into, come. we called so good for our to trying been take creative leaned brand shareholder letter of we've come around great. One about think that we which static, it's and testimony premium what as know to what our us brand has more just to out is pretty have though reduced side. organically some continuing marketing

Nick Jones

billion then kind of Great. those income intact? on XXXX net the there $XX of some any kind kind of of positive in annualized Are timing? objectives. Is To or run any EBITDA, And adjusted rate. still and cadence goals the change comments

Christina Schwartz

structure we X,XXX where talk us today return that and volumes And from We a believe Christy and committed steady sheet, that at is absolutely to Carrie rate balance the that state next bit annualized requires here. returning the we would to the market to $XX breakeven take revenue. earlier. absolutely little level question. year capital cost It Happy some there. this stabilization fixed assuming Yes, a remain to which A&I come have to point billion of structure take to they of are

Nick Jones

the questions. thanks Great, taking for

Operator

you. Thank

of question Our with line Tomasello KBW. comes next Ryan the from

line open. Your is now

Ryan Tomasello

Thanks everyone. questions. the for taking Hi,

enough but should needs the to investment trying how run commentary, OpEx support efficiencies. think the unpacking breakeven about to target? here we any Just quarterly the balancing billion Just is rate understand million further the $XX $XXX

partnership side here? the sure rationale on and making models getting Thanks. are You're

Christina Schwartz

adjusted It's breakeven is components. and for is targets, Thanks the yes the there the and Hi, basic There $XX Ryan. question. OpEx expense. margin contribution Christy, three target, interest billion the

breakeven, to to increased of X% range at higher we margin of For contribution X%. the end need be our target

to X% interest expense. for to expect We OpEx X% X% for and be X% adjusted in to

Ryan Tomasello

helpful. or SFR just And in more players any like short-term I of that That's a supplement here? those then of guess the question seeing platforms really is of given nuance buying Curious you're the pipeline amount acquisition you're the terms the Okay. of - rental uptick to funnels. in from institutional there side if seem REITs kind that even be way calling to portfolios their attractive acquisition an homes

Dod Fraser

those we've partners engaged been entire obviously So, existence. for our with

for them. to that close that So, same comment individual - partners. But use consumers can't specific we were useful to simplicity the on are certainly we we thing very for the do certainty, in a I we're think and do institutions. can way all same of I provide

because that both actively disposition are of them about can talking for those. help obviously strategies to both strategies, their their we we So, and acquisition solve

Ryan Tomasello

Thanks taking questions. for Okay. the

Dod Fraser

down think on more there, a Those And do Yes. industry think, if you single-family aggregate to rental. quite are point just volumes at add I I bit. for one look - obviously

they But portfolio. more - do any they were of And where that versus as in are of increases big capital turnover, their well with on year. to last they natural capitalize patient well of do positioned as any turnover so, they sort certainly sort we're deployment

Operator

Curtis Instructions] with Our the of comes question Thank line Nagle Bank from of next [Operator you. America.

is line Your open. now

Curtis Nagle

taking for thanks the question. the and topic. just afternoon Maybe changing Good

back little think lows, bought it but Just deals discount nice are a curious nice you of at discounts. a still pretty the bit guys to couple pretty now to bonds market don't into the converse, you I go if a you've through the where done principal.

next So to allocation into just capital a are curious standpoint an or capital what reserve going be that year? we for you're acceleration in yes, from thinking inventory

Dod Fraser

Yes.

Christy to equity did So down two those half principal by happy alluded execution, the the have obviously that almost over earlier. there. of basically Happy with we as pricing, the with year with course taken and the do of happy changed the

If $XX up last our sort you actually by look shareholders' equity quarter at that the in of million.

on sort. I forward, future of think transactions don't that we going comment

I capital for always all think and of the balancing system us the to right have weather in act amount liquidity scenarios. for the us

so, And very we're but today, won't with comment transactions. position in comfortable future the capital on

Curtis Nagle

Thanks. Okay.

Operator

Thank you.

of and Associates. next with comes Our from Zelman the question line McKeveny Ryan

Your now line open. is

Ryan McKeveny

Hi question. for might data for be margins. there, This on taking contribution the thanks

homes were So this X.X% new CM, book the that quarter on sold last XX.X% up from quarter.

seen get guess I just, year step-up we've of is question increase on mostly kind generally sequentially, HPA the as that in think that So that of first function a and then hoping the we should this maybe to basis by X be CM will of to to? back overall for on you can obviously connect guidance the XQ getting X good that to an

path X% on book in mostly homes", dynamics. on assumingly the But and "new I spread whether book guess at the to to seasonality that also quarter, maybe you're margin the there just today help pricing from it's sort where what's of bridge fourth new X%

bit? can if help curious Just kind a you of Thank dots connect you. those

Dod Fraser

piece. the Yes, can then Christy on quarter jump I'll start in and fourth

at back past half first year actually XXXX were to So this the look look at market and they if of they XXXX. volumes, in were sort of you where

it was was So very strong and buy paired a demand tight supply homes. with consumer to

resulted outperforming our And home so expectations. that in prices

your resulted margin in the as second question, reduce quarter. cost allowed executed the plus outperformance to growth quarter-over-quarter highlighted, plus spreads, we've in we That, XX% both which, us reductions and to

obviously to home month-over-month year, which we If current you still changes, into this the to half price of baked see are expect forward do second spreads. negative our look

around distribution prices This goes back the to of much the outcomes point I market current a conditions. home made right just earlier now about being wider there given

spreads earlier, first the and both marketing incremental price quarter. about in the reramp allows cost we which and to seasonality, talked reaccelerate to fourth will in us volumes to conversion, we given As do paid leads expect savings quarter, increased home reduce

I that's dots. macro want margin sort So, Hopefully, the you And think overlay. that tackle piece, if to of margin Christy, progression. the connects those then

Christina Schwartz

Christy Ryan, it's here. hi Yes,

that of Keep of that from the offer QX XX% to QX So, QX. contract. progression cohort in in in is X% mind About margin QX. the

So those have still sell. homes we plus to percent close more one in QX, will

the be a is our in why bit of expect there's So, from in QX. and QX mostly that QX to targeted by in is drag old X% gone, X% to of book that range

Ryan McKechnie

just you. talked shift Carrie, makes sort the time, in Got headwind headwinds if you about tailwind, buying to that of XQ mentioned a the be comment That homes of you bit generally, presumably a to it. pricing I tailwinds. into over made of their when generally, things as in pricing homes And you've commentary from sense. year are like is to that get fourth And like year you that XQ alluding is you're kind stronger? versus XQ, there's you of periods might Thank quarter next think kind selling seasonality and the

Carrie Wheeler

You got it.

Ryan McKechnie

Curious yes, you, Go sorry. Carrie. ahead if

Carrie Wheeler

nutshell. tend half, second Sorry. half. it. in mean That's same I that's that to stronger tend follow exactly the in the be pattern. Market first seasonality in volumes Prices to softer

next And into of, reduce in quarter moving the so, to again, we seasonal on would first look our year. in QX tailwinds spreads anticipation pricing

with. every of a and also strong we're the volumes up that We into selling rhythm quarter XXXX. year single super year. Market That's first seasonality familiar picking in manage next first half

quite it's - been it's consistent. So

Ryan McKechnie

Yes absolutely.

much. Okay. so Awesome. Thank you

Operator

Carrie concludes This to question-and-answer Thank the closing remarks. over Wheeler now I the call hand back will for session. you.

Carrie Wheeler

say Thanks to very thanks today. us joining much. I want just for

business, control, years benefits time that in what substantial will yield comes we and to we think we've focused across, using the hope a this stabilizing for made can really we've improvements year to really and As progress make on come. this

to dedication, to support their shareholders, next Thank and team talk and you the Opendoor you thanks for your continued quarter. work for hard and to our we'll

Operator

conference call. for participating. concludes This you today's Thank

You disconnect. now may

Opendoor (OPEN) 3 Aug 232023 Q2 Earnings call transcript