Opendoor Technologies, the San Francisco-based e-commerce platform for home sales, experienced a steep drop in revenue and anticipates another decline in the current quarter. As a result, the company's stock fell by 10% to $3.01 on Friday, representing a 32% decrease since the beginning of the year.
Fourth Quarter Results
In the fourth quarter, Opendoor's revenue plummeted by 70% to $870 million. Additionally, there was a significant decrease of 69% in the total number of homes sold compared to the previous year.
Bleak First Quarter Forecast
Opendoor does not anticipate a substantial recovery in revenue for the first quarter. The company provided a forecast of $1.05 billion to $1.1 billion in revenue, indicating a sharp decline of 65% to 66%. This projection falls short of analysts' expectations, as they had predicted first-quarter revenue to reach $1.25 billion.
Financial Performance
For the quarter ending on December 31, Opendoor reported a loss of $91 million, or 14 cents per share. This is an improvement compared to the prior year's loss of $106 million, or 16 cents per share. However, it was not in line with analysts' projections of a 24-cent loss per share.
In conclusion, Opendoor Technologies faces challenges ahead as its revenue continues to decline and its first-quarter forecast falls short of expectations.
