Opendoor financials, profitability as it preps for SPAC merger - Business Insider

In order to show the company's potential for scale and positive unit economics in its more established markets, Opendoor's presentation focused on Phoenix, its first market.

This reveals a major factor in the iBuyer world: even though iBuying companies are some of the most tech-forward residential real-estate companies, tech's usual focus on the ability to scale and see increasing profit per-unit can look very different in the ultra-local world of real estate. In more mature markets like Phoenix, the company says it should see better profit margins as its understanding of the market increases. The company included a graph in its presentation that suggested that the most mature markets had the closest resale price to the projected sales price, but the graph didn't include any figures.More than half of the company's first-quarter revenue came from its first six markets, where the company had 3.2% of total market share.

The company is banking on these products to greatly increase the company's margins per home. These additional products could bring Opendoor's total fee closer to 12% of the total transaction, the company projected. Opendoor is the largest player in its category, selling 18,799 homes in 2019, more than 4.4 times its closest competitor Zillow. The company says it does not see Zillow or Redfin as competitors, but instead the whole housing market.

This view of digital transformation has the company comparing itself, at one point in the presentation, to Amazon and Uber.In the SPAC's presentation about the merger, the company highlights the potential trend of relocation outside of the largest markets like New York and San Francisco to markets like Atlanta, Phoenix, and Raleigh-Durham, where housing prices and state taxes are lower.

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Inside Balyasny's training program for hedge fund portfolio managers - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »

Inside Citi's exec shakeup — Chime's latest round — Buy now, pay later's future - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »

Inside the real reasons behind Mike Corbat's early retirement - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. They said the same about MLK,slavery,segregation,share cropping ,under paid blacks ,systemic racism but praise white nationalists terrorists who walks the streets with guns.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »

Social Capital SPAC surges 25% after it confirms tie-up with Opendoor - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Anyone else think Chamath is a tool? 🙄
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »

Home Buyer Opendoor Is Going Public In $4.8 Billion MergerIt will merge with a shell company helmed by Chamath Palihapitiya, a venture capitalist and early Facebook executive. Noah_Kirsch This just gets dumber by the minute. Noah_Kirsch Ifb
Källa: Forbes - 🏆 394. / 53 Läs mer »