Key Highlights
- Company generated $4.7B in revenue in 2019 and sold +18,000 homes
- Recently merged with Social Capital Hedosophia Holdings Corp. II for Opendoor enterprise value of $4.8B
Opendoor, a well-funded iBuying startup since its inception, made it official at Inman’s Connect opening day…the company is officially ready to go public after merging with Social Capital Hedosophia Holdings Corp.II, a special purpose acquisition company or SPAC. (SPAC is a “blank-check” or essentially shell company that acquires another company solely to take that company public via an IPO2.0 platform.)
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According to SPAC’s CEO Chamath Palihapitiya, “We created the IPO2.0 platform to identify and partner with iconic technology companies with proven management teams and assist in their transition to the public markets. Opendoor perfectly embodies this vision.”
Eric Wu, co-founder and president of Opendoor, said that the company sold more than 18,000 homes and generated $4.7B in revenue during 2019. (FYI, ZillowOffers, Opendoor’s top competitor, generated $1.3B in revenue during 2019.) Wu also said that Opendoor has provided its services to more than 80,000 customers and sold approximately $10B in homes during the company’s lifetime.
According to Opendoor’s US Securities and Exchange Commission filing, the company posted an adjusted net loss of $327M in 2019. During Q1 2020, the company posted an adjusted net loss of $56M.
Why go public now? Opendoor is anticipating that a public listing will give the company an estimated $1B influx of capital so it can grow its market share in existing markets, expand to new markets and launch new products to enable it to become a “one-stop-shop” for customers.
Opendoor, like all other iBuyers, had to “pause” during 2020 due to the COVID pandemic and therefore limited its revenue projections to hit $2.5B in 2020 and $3.5B in 2021. Not so for 2023. The company makes no bones about its 2023 projections…$9.8B in revenue and 37,689 homes sold.
Thanks to Opendoor and InmanNews.
Also read: Finally, Manhattan A Buyer’s Market – Could Brooklyn Be Next?, Top Work-From-Home Counties, Most & Least Affordable Places & States to Buy a Home
