Opendoor

Opendoor is a platform that facilitates the buying and selling of residential properties. The platform also offers an iBuyer facility that allows sellers to sell their homes directly to Opendoor without having to list the property for sale. Opendoor provides home financing services that help home buyers to pre-qualify and make home offers backed by Opendoor. The company charges 5% service fees on homes sold to Opendoor and 5% commission on sales made through listing homes with Opendoor. It also charges 1% closing fees for transactions closed through the Opendoor platform. 

Opendoor acquired Open Listings, a platform that facilitates home buying through automation and provides listing services, in September 2018. The following year, Opendoor acquired OS National, a title and escrow service provider. The company continued its acquisition spree by acquiring Pro.com, a home improvement service provider and Skylight, another home improvement service provider, in September 2021. Through the acquisition of both companies, Opendoor will shut down Pro.com’s and Skylight’s platform and utilize their talent and technology to scale up Opendoor’s iBuyer operations. 

In December 2020, Opendoor raised close to USD 1 billion by going public through a merger with a publicly traded special purpose acquisition company (SPAC), Social Capital Hedosophia Holdings Corp. Following this SPAC merger, the new company will be named as Opendoor Technologies and will be listed on the Nasdaq exchange under its new ticker symbol “OPEN.” Through this transaction, the company planned to utilize the funding to support business growth, market expansion, develop new product offerings, and build its platform’s technology. 

Opendoor reported a 55% YoY decline in total revenue to USD 6.9 billion for FY2023, from USD 15.6 billion recorded for FY2022. The company reported a net loss of USD 275 million for FY2023, compared to a net loss of USD 1.4 billion for FY2022. Opendoor reported an adjusted EBITDA loss of USD 627 million (translating to an adjusted EBITDA margin of -9.0%) for FY2023, compared to an adjusted EBITDA loss of USD 168 million (translating to an adjusted EBITDA margin of -1.1%) recorded in FY2022.

Key customers and partnerships

As of July 2024, the company had 250,000+ customers and over 2+ million homeowners had requested an offer from Opendoor’s platform. 

In September 2021, Opendoor partnered with Builders Digital Experience, a provider of listings of newly constructed homes through its New Home Source platform. Through this partnership, Opendoor will leverage newly built home listings available on the New Home Source platform to provide its clients seeking home trade-in with a wide range of home choice. In August 2022, Opendoor partnered with Zillow Group to bundle product offerings, allowing users of Opendoor to access Zillow’s Premier Agent to connect with a potential buyer.  

In October 2023, Opendoor partnered with eXp Realty to integrate its cash offer solution into eXp's ExpressOffers platform, enabling nearly 90,000 eXp agents to request cash offers directly. This collaboration aimed to streamline the home-selling process by providing clients with an Opendoor cash offer and the option to list on the market. Additionally, eXp agents can earn extra commissions through Opendoor for Agents rewards programs.

In June 2024, Opendoor partnered with My State MLS to integrate cash offer estimates on eligible properties. This partnership expands Opendoor's reach to over 60,000 agents across all its markets, increasing its potential customer base. Opendoor benefits by streamlining transactions and enhancing its Agent Access loyalty program, incentivizing agents to close more deals through their platform.