Opendoor Technologies Inc. (OPEN), a company operating as a digital platform for residential real estate, has surged 16.70% in premarket trading session and consequently is trading at $22.78 at the time of the writing. The surge could be attributed to the announcement of quarterly results by the company. On Wednesday, OPEN closed the day $19.52 after declining 7.05% during regular trading hours.
Q3 2021 Financial Results
In the late hours of Wednesday, OPEN released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company generated total revenue of $2.26 billion during the quarter against $338.61 million for the same period of 2020. The total operating expenses for the period were $270.89 million against $80.68 million for the same period of 2020. The company bore a net loss of $56.81 million (or $0.09 per basic and diluted share) for the quarter against $80.85 million (or $0.91 per basic and diluted share) for the same quarter of 2020. The company had cash and cash equivalents of $1.38 billion at the end of the quarter.
Corporate Highlights and Financial Outlook
Alongside financial results, the company also reported the key corporate highlights of the quarter as well as the financial outlook for the upcoming quarter. The company expanded to 44 markets at the end of the third quarter of 2021 as a result of the launch of 5 new markets. The company purchased 15,181 homes during the quarter, which is an increase of 79% when compared with the second quarter of 2021. With regards to financial outlook, the company expected the fourth quarter of 2021 revenue to stand between $3.1 billion to $3.2 billion.
Eric Wu, Co-Founder, and CEO of OPEN, while commenting on the results said that the company is making it possible to buy, sell and move at the tap of a button. He said that the third-quarter results are the product of the company’s focus on consumer experience and strong as well as consistent execution of plans. The company hopes to further improve its performance in upcoming quarters.
What’s Ahead for OPEN?
During the last six months, OPEN has increased more than 35%. The reason for this increase in OPEN stock is an association of certain positive sentiments associated with it. Analysts suggest that strong quarterly results are an indicator of the company’s improvement in its financial stature, which in turn would aid it in the long run.