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(Sharecast News) - American real estate platform operator Opendoor Technologies saw shares jump on Friday after fourth-quarter revenues topped Wall Street predictions, as confidence builds in its 'Opendoor 2.0' turnaround programme.
Revenues totalled $736m for the three months to 31 December, down from $1.08bn the year before, as the firm deliberately lowered home inventory levels in an effort to streamline the business. This was well ahead of the $594m consensus forecast.
The number of homes purchased during the period was 1,706, down from 2,951 the year before but well ahead of the 1,169 purchased in the third quarter, while the percentage of homes on the market for longer than 120 days dropped to just 33% from 51% three months earlier.
However, net losses swelled to $1.10bn, compared with $113m the year before, though this was mainly due to a $933m loss on extinguishing debt.
"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. This quarter demonstrates we are executing on that plan," said chief executive Kaz Nejatian.
"These results reflect structural improvements in how we operate with more accurate pricing, faster inventory turns, and disciplined selection."
The stock was up around 12% at $5.19 by 1604 GMT.
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