What happened

Shares of Opendoor Technologies (NASDAQ:OPEN) have plunged today, down by 11% as of 12:15 p.m. EDT, after the company reported first-quarter earnings. Opendoor went public last year by merging with a special-purpose acquisition company (SPAC), and investors have been shunning anything remotely related to SPACs in recent months.

So what

Revenue in the first quarter was $747 million, which resulted in a net loss of $270 million, or $0.48 per share. The iBuying company, which buys and sells homes, reported a gross profit of $97 million, or a gross margin of 13%. Opendoor purchased a total of 3,594 homes during the quarter and sold 2,462 units. The company exited the quarter with 2,958 homes in inventory valued at a total of $840.6 million.

An Opendoor For Sale sign in front of a home

Image source: Opendoor.

"We are relentless in our pursuit of making it possible to buy, sell, and move at the tap of a button," CEO Eric Wu said in a statement. "We exceeded our guidance for Q1 and are experiencing strong momentum as we look forward to the rest of the year."

Now what

"In the hottest real estate market in a generation, we are seeing record demand and engagement on the Opendoor platform," the company wrote in a letter to shareholders. "Consumer expectations for digital-first experiences have extended to real estate."

Guidance for the second quarter calls for revenue of approximately $1.03 billion to $1.08 billion. Adjusted EBITDA is forecast in the range of negative $5 million to positive $5 million.

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