Shares of Opendoor Technologies (OPEN 8.16%) rose on Friday after the online home-selling platform showed progress toward achieving profitability.
By the close of trading, Opendoor's stock price was up more than 7% after rising as much as 20% earlier in the day.
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Executing the plan
Soon after Kaz Nejatian, the former chief operating officer of e-commerce leader Shopify, took over as CEO of Opendoor in September, he laid out his strategy to turn around the struggling real estate platform.
"Last quarter, we outlined a four-step plan to transform Opendoor: reach breakeven adjusted net income by the end of 2026 on a 12-month go-forward basis, drive positive unit economics while increasing transaction velocity, transition to direct-to-consumer relationships, and expand our product suite," Nejatian said.
NASDAQ: OPEN
Key Data Points
Opendoor's fourth-quarter results demonstrate significant developments toward those goals. Its home purchases jumped 46% from the prior quarter. At the same time, the percentage of homes on the market over 120 days fell to 33% from 51%.
Opendoor also improved its cost structure. Fixed operating expenses declined to $35 million, down from $37 million in the third quarter and $43 million in the year-ago period.
"These results reflect structural improvements in how we operate with more accurate pricing, faster inventory turns, and disciplined selection," Nejatian said.
Profitability goals remain on track
Opendoor reiterated its intentions to achieve positive adjusted net income on a 12-month go-forward basis by the end of this year.
"While our newer cohorts are still early in their sell-through, we like what we see," Nejatian said.
