Opendoor Technologies Inc. (OPEN) reported its first-quarter 2025 financial results, surpassing Wall Street’s earnings expectations. The company posted an earnings per share (EPS) of -$0.12, slightly better than the forecasted -$0.13. Revenue for the quarter reached $1.2 billion, outperforming the anticipated $1.07 billion. Following these announcements, Opendoor’s stock surged 9.37% in aftermarket trading, reflecting investor optimism despite ongoing challenges in the housing market. InvestingPro analysis indicates the company operates with a significant debt burden of $2.3 billion, while maintaining a "WEAK" overall financial health score.
Key Takeaways
- Opendoor reported a smaller-than-expected loss per share, beating analyst forecasts.
- Revenue reached $1.2 billion, exceeding expectations by $130 million.
- The stock increased by 9.37% in aftermarket trading after the earnings announcement.
- Operational efficiency improved, with a 33% reduction in fixed operating expenses.
- The company is shifting its strategy towards a hybrid agent-assisted selling model.
Company Performance
Opendoor’s performance in the first quarter of 2025 showed resilience amid a challenging real estate market. The company maintained flat year-over-year revenue at $1.2 billion, while improving its adjusted EBITDA loss to $30 million from $50 million in the previous year. The number of homes sold was 2,946, and purchases increased by 4% year-over-year to 3,609. This performance highlights Opendoor’s strategic adjustments and operational efficiencies, though InvestingPro data reveals a concerning gross profit margin of 8.4% and rapid cash burn rate. Subscribers to InvestingPro can access 20+ additional insights about OPEN’s financial health and market position.
Financial Highlights
- Revenue: $1.2 billion (flat year-over-year)
- EPS: -$0.12 (better than the forecasted -$0.13)
- Contribution Profit: $54 million with a 4.7% margin
- Adjusted EBITDA Loss: $30 million (improved from $50 million in Q1 2024)
- Homes sold: 2,946
- Homes purchased: 3,609 (4% increase YoY)
Earnings vs. Forecast
Opendoor’s actual EPS of -$0.12 surpassed the forecast of -$0.13, marking a positive surprise for investors. The revenue of $1.2 billion also exceeded the expected $1.07 billion by approximately 12.1%. This earnings beat reflects the company’s effective cost management and strategic initiatives to navigate the challenging housing market.
Market Reaction
Following the earnings release, Opendoor’s stock price increased by 9.37% in aftermarket trading, reaching $0.767. This positive movement indicates investor confidence in the company’s ability to manage its financials and adapt to market conditions. The stock’s performance contrasts with its 52-week low of $0.7, suggesting a potential recovery trajectory. InvestingPro analysis shows the stock has declined 68.55% over the past year, though technical indicators suggest it may be oversold. Gain access to comprehensive technical analysis and Fair Value estimates through InvestingPro’s detailed research reports.
Outlook & Guidance
For Q2 2025, Opendoor projects revenue between $1.45 billion and $1.525 billion, with a contribution profit ranging from $65 million to $75 million. The company anticipates an adjusted EBITDA between $10 million and $20 million, reflecting continued focus on profitability. However, Opendoor expects a revenue decline in the latter half of the year due to a slowdown in home acquisitions.
Executive Commentary
CEO Carrie Wheeler emphasized the company’s commitment to providing "certainty, convenience, and choice" for customers, particularly during uncertain times. She noted that Opendoor is leveraging its powerful platform to unlock more value for both customers and agents. CFO Celine highlighted the cautious approach being adopted due to consumer hesitation in the current market.
Risks and Challenges
- Persistent high mortgage rates above 7% could dampen housing market activity.
- A 25% year-over-year decline in clearance rates may impact sales volumes.
- Rising delistings, up 30% year-over-year, indicate market volatility.
- Ongoing market uncertainty and seller hesitation pose challenges to growth.
- Potential macroeconomic pressures could affect consumer confidence and spending.
Q&A
During the earnings call, analysts inquired about seasonal acquisition patterns and the new agent partnership model’s economics. Discussions also covered inventory valuation amid market softness and explored further cost-saving opportunities. These topics reflect investor interest in Opendoor’s strategic shifts and financial management.
Full transcript - Opendoor Technologies Inc (OPEN) Q1 2025:
Conference Operator: Good day, and thank you for standing by. Welcome to the Opendoor Technologies First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Please be advised that today’s conference is being recorded.
I would now like to hand the conference over to your speaker today, Kimberly Newhouse, Investor Relations. Please go ahead.
Kimberly Newhouse, Investor Relations, Opendoor Technologies: Thank you, and good afternoon. Details of our results and additional management commentary are available in our earnings release and shareholder letter, which can be found on the Investor Relations section of our website at investor.opendoor.com. Please note that this call will be simultaneously webcast on the Investor Relations section of the company’s corporate website. Before we start, I would like to remind you that the following discussion contains forward looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are statements that could be deemed forward looking, including but not limited to statements regarding Opendoor’s financial condition, anticipated financial performance, business strategy and plans, market opportunity and expansion, and management objectives for future operations.
These statements are neither promises nor guarantees, and undue reliance should not be placed on them. Such forward looking statements involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward looking statements can be found in the Risk Factors section of the Opendoor’s most recent annual report on Form 10 ks for the year ended 12/31/2024, as updated by our periodic reports filed after that 10 ks. Any forward looking statements made on this conference call, including responses to your questions, are based on management’s reasonable current expectations and assumptions as of today, and Open Door assumes no obligation to update or revise them, whether as a result of new information, future events, or otherwise, except as required by law. The following discussion contains references to certain non GAAP financial measures.
The company believes these non GAAP financial measures are useful to investors as supplemental operational measurements to evaluate the company’s financial performance. For a reconciliation of each of these non GAAP financial measures to the most directly comparable GAAP metric, please see our website at investor.opendoor.com. I will now turn the call over to Carrie Wheeler, Chief Executive Officer of Opendoor.
Carrie Wheeler, Chief Executive Officer, Opendoor Technologies: Thanks, everyone, for joining us today. At Opendoor, we remain relentlessly focused on our mission to reinvent residential real estate in The US, making it simpler, more convenient and more customer centric. The strategy we’re executing against is designed to take full advantage of the strengths we’ve built over the past decade and to position us for long term success. We continue to operate in an extremely challenging macroeconomic environment, with heightened uncertainty on the back of shifting economic policies and the evolving tariff landscape. Home sellers and buyers are taking a pause.
Mortgage rates are back up over 7%, clearance rates are down nearly 25% year over year, and delistings are up over 30% as sellers continue to exit the market. Despite these headwinds, our focus hasn’t changed. We’re here to give customers certainty, convenience and choice, especially when they need it most. We enter 2025 with a clear plan to drive towards profitability while strengthening our product experience and leadership position. Our progress is reflected in our first quarter results, where acquisition volumes, revenue, contribution profit and adjusted EBITDA demonstrate strong execution amidst a challenging macro backdrop.
And while we’re focused on driving profitability, we’re also investing in our future. Over the past decade, we’ve built a trusted category defining platform that gives sellers a certainty of a cash offer. Now, we’re evolving into a platform where every seller can explore all their selling options, whether that’s through cash offer or listing with an agent. We are expanding how we go to market, leveraging our unique platform and relationships. Today, a meaningful percentage of our acquisitions come to us through an agent who is bringing their customer to Opendoor and requesting a cash offer.
For many listing agents, having a cash offer as part of a complete set of selling solutions is considered table stakes. And we built the platform that allows them to provide a certain and seamless path of fulfilling a cash offer on behalf of their client. We are taking our existing vibrant partnership with agents and flipping the script, so to speak, by sending open door customer referrals to embedded agent partners. Those agents are able to talk through the options that a customer has to sell from an open door cash offer to a full listing. In doing so, they’re meeting that customer where they are, and they’re able to put all options in context relative to that particular seller’s needs.
We are piloting this experience in select markets and are encouraged by the early indicators we’re seeing. Customers are receptive to having a local expert explain their options. Agents benefit from high intense seller referrals from our marketing engine and are able to bring all options to the table and assessing the smartest move for the customer. An Opendoor has the opportunity to improve conversion, whether it is higher conversion for cash offers or our participation in the listing, which in turn generates asset light revenue for us. Moreover, we’re able to deliver final underwritten offers faster by allowing agents to do an in home assessment in their first meeting by leveraging our platform.
There will continue to be customers who come to Opendoor directly and want the self serve experience that we have pioneered. But we expect many customers will benefit from having an advisor help them navigate the selling process. We will see how our pilot evolves, but we believe that this channel will allow us to serve more sellers, monetize a greater portion of our funnel, and leverage our platform to drive more asset light business. In addition to how we’ve expanded the consumer experience, we are continuing to operate the business with four core priorities. First, we’re maintaining our pricing discipline.
We’re monitoring macro conditions closely given an uncertain market and heightened volatility and against that backdrop have been proactively increasing our spreads. Well, does impact acquisition growth. We believe it’s the right trade off to protect contribution margin. Second, we are working on improving conversion. In addition to the channel expansion I just spoke about, we are making enhancements to our pricing models, including refining how we allocate spreads and improving price segmentation with the goal of enhancing our conversion performance.
In Q1, we continue to add new features to our algorithms like school district quality and active competition. Third, we’re allocating our marketing investment to better align with seasonal housing dynamics and spreads. As we shared last quarter, we believe this shift in our advertising strategy drives greater spend efficiency. Consistent with our strategy, we expect our marketing spend in Q2 to be meaningfully lower than in Q1. We’ll continue to deploy dollars with a focus on efficiency and impact.
And finally, we are highly focused on delivering our product as efficiently as possible. We’re building a leaner, more agile organization. Fixed operating expenses in Q1 were $19,000,000 lower or down 33% versus a year ago. These cost efficiencies paired with our margin improvements should position us to reduce adjusted net losses in 2025 as compared to last year. We have built a powerful platform and now we’re working to unlock even more value for customers and agents all while keeping our sites firmly on profitability.
We look forward to sharing more as we progress throughout the year. And with that, I will turn it over to Celine for the financial overview.
Celine, Chief Financial Officer, Opendoor Technologies: Thank you, Carrie. At the beginning of the year, we shared our commitment to drive towards profitable, sustainable growth. Our first quarter results reflect progress towards that objective. We delivered $1,200,000,000 of revenue in the first quarter, roughly in line with the same quarter in 2024, representing 2,946 homes sold. On the acquisition side, we purchased 3,609 homes in the first quarter, up 4% versus the same quarter last year.
Growth in acquisitions was enabled by enhancements to our product flow and improvements to our pricing models, which drove better conversion despite higher spreads. Contribution profit was 54,000,000 in the first quarter versus 57,000,000 in q one twenty four or a contribution margin of 4.7%. Adjusted EBITDA loss was 30,000,000 in the first quarter, down significantly from a loss of $50,000,000 in Q1 twenty four. This improvement in adjusted EBITDA was primarily driven by reductions in adjusted operating expenses, which were $84,000,000 in the first quarter, down from $107,000,000 in Q1 twenty twenty four. We continue to be focused on operating with greater efficiency and strong cost discipline.
Turning to our balance sheet, we ended the quarter with 7,080 homes, representing 2,400,000,000.0 in net inventory, up 24% from the prior year. We also had 1,000,000,000 in total capital, primarily comprised of 559,000,000 in unrestricted cash and 350,000,000 of equity invested in homes, net of inventory valuation adjustments. At quarter end, we had 7,900,000,000.0 in non recourse asset backed borrowing capacity, of which total committed borrowing capacity was 2,300,000,000.0. In the first quarter, we renewed three revolving credit facilities and one term debt facility at consistent or improved credit spreads, while both of our mezzanine facilities were extended through at least 2027. The successful extension of these credit facilities reflects the continued confidence and support of our capital partners.
Looking forward, as Carrie mentioned, the housing market has further deteriorated since the beginning of the year. Persistently high mortgage rates continue to suppress buyer demand and we are seeing more sellers pull out of their contracts than we normally would expect, which speaks to the uncertainty that sellers have at this moment. Our outlook assumes that these headwinds will continue to impact our performance in the near term. Our outlook for the second quarter of twenty twenty five includes the following. Revenue is expected to be between 1.45 and 1,525,000,000.000.
Contribution profit between 65 and 75,000,000, which implies a contribution margin of 4.5 to 4.9%. Adjusted EBITDA between 10 and 20,000,000, representing a $20,000,000 year over year improvement at the midpoint of our guidance, marking a return to positive quarterly adjusted EBITDA for the first time in three years. Adjusted operating expenses of approximately 55,000,000 and non cash stock based compensation expense between 13 and 15,000,000, which represents a decline of over 50% year over year. Looking a bit deeper at our operating expense guidance, we are assuming a significant sequential step down in marketing spend, given typical seasonal dynamics and spreads. Additionally, our operating expense includes timing adjustments related to changes in inventory levels.
In q two, we expect resales to outpace acquisitions, which will reduce our inventory balance and result in a favorable adjustment to operating expenses on a quarter over quarter basis. Finally, we expect home acquisitions of approximately 1,700 in the second quarter. Our acquisition outlook is informed by two key factors, higher spread levels and lower marketing spend. With respect to spreads, we expect to continue to operate at these elevated levels with the intent of focusing on margin improvement, and the reduction in marketing spend will further impact acquisitions. Given our focus on efficiency and current market dynamics, we believe this is a prudent approach to managing our business at this time.
This slowdown in acquisitions is expected to put pressure on our top line in the back half of the year, with revenue expected to decline on a year over year basis in the third and fourth quarters all else equal. However, our goal is to deliver year over year contribution margin improvements in those quarters through continued operating efficiencies and wider spreads. And our ongoing cost discipline should result in an improvement in adjusted net losses in 2025 as compared to last year. Finally, the current macro volatility makes it challenging to predict how buyers and sellers will react or how market conditions will unfold. Given the consumer hesitation we’re seeing, we feel a more cautious approach is warranted.
That said, we are closely monitoring market signals and we are prepared to react to more favorable conditions. With that, I will ask the operator to open the line for questions.
Conference Operator: Thank you. Our first question comes from the line of Day Li with JPMorgan. Your line is now open.
Day Li, Analyst, JPMorgan: Great. Thanks for taking the questions. I have two. So first, so name on your comment about slowing down acquisition growth to about 1,700 in 2Q. Is that kind of the right level to think about as you look into the back half of the year?
Or is there some element of rebalancing the inventory to current housing market levels? And if there’s something that you’re doing across all markets or just some markets, so curious if there are any markets that are working better for you right now? And then secondly, how should we think about contribution margins of these newer homes that you’re acquiring given the higher spreads? Is it going to be towards the medium to high end of that 5% to 7% target that you guys normally have? Thanks.
Celine, Chief Financial Officer, Opendoor Technologies: Thanks for the questions, Day. On the acquisition pace, what I would say is all else equal, given that we are in a generally uncertain environment with respect to the outlook on the housing market, we would expect the normal seasonal pattern to look like a sort of a barbell similar to our marketing approach, where we are going to acquire more homes in Q1 and Q4 and fewer homes in Q2 and Q3. So on a sequential basis, going forward, we would expect a sequential decline from Q1 to Q2, relatively flat acquisitions from Q2 to Q3 and then a ramp up again in Q4. And based on what we see today and our expectation, again, with what we do know, we would expect a similar pattern for the second half of the year. With respect to contribution margins in Q2 and sort of the newer cohorts, I would first say that our expectation of contribution margin between 4.54.9% would be 4.7% at the midpoint, fairly consistent with Q1 and down roughly a point and a half versus the prior year.
And simply put, this is a mix issue. The decline is really driven by older inventory at relatively lower margins, making up a larger share of homes sold in Q2, given the slower acquisition pace of new homes in Q2 that we’re seeing. Setting that aside, we do see cohorts that we are acquiring in more recent times performing very well from a contribution margin perspective in the early resale days, but it’s not enough to offset the prior year mix impact that I referenced.
Day Li, Analyst, JPMorgan: Got it. Thank you.
Conference Operator: Thank you. Our next question comes from the line of Yigal Aronian with Citigroup. Your line is now open.
Yigal Aronian, Analyst, Citigroup: Hey guys, thanks for taking the question. First, just to follow-up on that point on the older homes or maybe for Carrie also. Is that how you view the overall health of that book of inventory? How much wiggle room, I guess, is there in the valuation of those homes if we might continue to get continuing softness in the housing market and we see home prices start to fall. I think we’re starting to see that in some geography geographies, particularly in the South.
So have you factored that in or how do you think about that? Then I have a follow-up.
Celine, Chief Financial Officer, Opendoor Technologies: Yeah. Our thanks for the question, Yigal. Generally, what we see when we acquire cohorts is sort of a natural degradation. So the homes that sell sort of earlier tend to have higher margins and the longer we hold homes, obviously the margins do decay. And that’s a pretty typical pattern we’ve seen historically.
I think the difference is now the homes that we’re acquiring more recently are starting at a higher absolute contribution margin level and will decay from there. But that gives us some confidence on sort of year over year expected year over year improvements in contribution margin in the second half. With respect to sort of the valuation expectation that is factored into our outlook. It’s factored into how we set spreads. And obviously pricing is a lever that we can use, but there’s no incremental or additional pressure that we see, because we do look out sort of on the resale environment and make an assumption on where we think homes will resell at relative to the current carrying costs that we have on the books.
Okay.
Yigal Aronian, Analyst, Citigroup: And then I want to spend a little bit of time on the expansion of the agent partnership. So this feels maybe like a little bit more of a shift in the asset light model than the products we’ve talked about in the past. So firstly, I just kinda wanna understand a little bit more what this product is, how different it is. Are you can you continue to operate? What’s with the Opendoor and marketplace?
Has it become part of this? You’ve had relationships with other brokerages. Is this shift where you’re working directly with the agents versus the brokerages? And then in terms of mix, what is it today? Because you talk about moving more in this direction and some people will continue to come direct, but it sounds like this might be the, at least your goal for it to be the kind of predominant channel.
And then what’s so what’s the overall mix that you intend to get to as well? And I know there was a bunch of questions in that, but just trying to understand how this plays out. Thanks.
Carrie Wheeler, Chief Executive Officer, Opendoor Technologies: I’ll try and hit all those. And if I don’t, you don’t, just feel free to come back at me at the end. If you step back for a second, I think it’s important to appreciate that today, a meaningful percentage of our business already comes from agents. Have agents coming to us every day who want to bring a cash offer to their client because they want to give their client choice. And they understand the value prop of our cash offer.
And they’re expert at converting it because that client is looking for convenience, certainty, and speed. So those are agents coming to us today, and we understand that motion very, very well. We know who those power listing agents are across the 50 markets we’re working in. We’re kind of flipping the script now. Instead of agents coming to us with their customer, we are going in 11 markets we’re piloting.
We are providing them our customer referrals, and we’re doing it earlier in the customer engagement. We think that trusted agent partner then learns more about the seller’s needs. They can provide more local expertise. And they’re also completing an in home assessment on our behalf. It’s a way to improve conversion, speed delivery, more trust, aiding decision making.
And ultimately, to your point, we believe this is a distribution channel and a partnership that will allow us to drive more asset light revenue. To your question on mix, I don’t know yet. I I do think there’s a segment of customers that will very much want that direct to consumer self-service interaction that we pioneered. People will still come to us and want a cash offer and be very happy to do that on a one to one basis. There are other customer types that we believe will benefit from having that additional agent relationship and advice.
And we’re going to be able to, I think, time to figure out how we direct customers in the most optimal way. So it’s early, I’d say. As I said, we’re piloting, but in a meaningful number of markets. And over time, that will continue to evolve.
Luke, Analyst, Citizens JMP Securities: Okay, thanks. I guess the only thing
Yigal Aronian, Analyst, Citigroup: that you missed, Carrie, just for clarification on lists with Opendoor and Marketplace, are those going to continue to operate? Are they going to be separate products? Are you rolling it into this agent partnership thing as one
Carrie Wheeler, Chief Executive Officer, Opendoor Technologies: thing I think about new partnership as a channel strategy, go to market strategy, and then it may end up with a listing. So for us, List with Opendoor, think about that as an end of funnel referral program, really. A customer comes to us for a cash offer. They go through the offer process, and we refer them at the end towards a partner agent to explore listing, oftentimes with our backstop cash offer as something for them to think about as they test the market.
So those two things are not mutually exclusive. We’ll continue to have a list of Opendoor product across direct to consumer channels, and we will be powering more and more agents with the benefit of our marketing engine and our referrals. And that may happen with a listing. It may happen with cash offer. That’s okay.
With respect to Marketplace, what I would say is we’re currently today in Dallas, Charlotte, Raleigh, and we’re holding there for now. Not a material contributor to revenue or earnings for us today. Given the pause and the pullback we’re seeing in the housing market right now, we are going to evaluate the best path forward for marketplace. I really believe that sitting here today, our new expanded partnership channel is a much more immediate path to allow us to serve more customers, monetize more of that funnel that we have and generate that incremental asset light revenue we’re looking for. And that’s where we’re going put more and more of our energy and resources into, most likely.
Yigal Aronian, Analyst, Citigroup: Okay. Really helpful. Thank you.
Carrie Wheeler, Chief Executive Officer, Opendoor Technologies: Thanks.
Conference Operator: Thank you. Our next question comes from the line of Nicholas Jones with Citizens JMP Securities. Your line is now open.
Luke, Analyst, Citizens JMP Securities: Hi, this is Luke on for Nick. Thanks for taking our question. Can you just speak on further cost savings opportunities? You’ve made nice progress over the past few quarters improving the cost structure. How much more room do you think you have there to gain additional efficiencies, you know, particularly if macro worsens?
Thanks.
Celine, Chief Financial Officer, Opendoor Technologies: Yeah. I’ll take that, Luke. Thanks for the question. Look, we are still focused optimizing our cost structure to drive durable cost savings beyond the progress we’ve already made. As a reminder, reflected in our Q1 results is a year over year fixed cost reduction of nearly $20,000,000 or roughly 33%, and our Q2 guidance implies a similar reduction.
These are durable cost savings that are here to stay. Beyond these, we continue to look at various aspects of our business and our operations to drive more efficiency as we go forward, including infrastructure, including how we go to market and including the overall fixed cost base. At this point, don’t know that we would expect similar reductions beyond this, but we do think that there is more efficiency opportunity as we move forward. And to your question on what does this look like in a slower market, we have rightsized the business for a slower market. That has been the dynamic in which we’ve been operating for the last year plus.
And as we look forward, the outlook will also inform how we think about the fixed cost base going forward. And we do think that there are still opportunities ahead of us.
Luke, Analyst, Citizens JMP Securities: Great. Very helpful. Thank you.
Conference Operator: Thank you. Our next question comes from the line of Ryan Tomasello with KBW. Your line is now open.
Ryan Tomasello, Analyst, KBW: Hi, everyone. Thanks for taking the questions. Following up on the expense topic, can you just clarify how much of the $29,000,000 quarter over quarter reduction implied in the OpEx guidance is driven by lower marketing expenses that are more seasonal and intentional based on the pullback you’re implying on acquisitions? And how much is more of like a structural reduction?
Celine, Chief Financial Officer, Opendoor Technologies: Yes, I would say that the majority of the reduction is in marketing. And the step down in marketing spend is driven by the typical seasonal dynamics that we’ve discussed before and the spread levels at which we’re operating right now. Additionally, our operating expense includes timing adjustments related to changes in inventory levels. In Q2, we expect resales to outpace acquisitions, and that will reduce our inventory balance and result in a favorable adjustment to operating expenses on a quarter over quarter basis. Between the two of those things, I would say those are the material contributors to the quarter over quarter variance.
There will be some amount of further fixed cost reduction, but I would say that’s less material in the face of the marketing move.
Ryan Tomasello, Analyst, KBW: Okay. I appreciate that. And then on the agent partnership program, can you just elaborate on what the economics are of this new arrangement where you’ll be bringing the agent in early in the process? Is that just simply a referral fee, a success fee? Just trying to understand what that what those contribution contribution margin look like on these types of partnership acquisitions.
Carrie Wheeler, Chief Executive Officer, Opendoor Technologies: Sure. I’d say, I mean, we’re still piloting. But at a high level, we believe that this partnership channel will allow us to drive better conversion and getting a better chance of getting that customer to a selling outcome that we participate in and generates that asset light revenue for us. So on a listing, we would earn a share of that commission. On a cash offer, we earn the margin we earn today on that cash offer minus any referral fee that we would plan to pay to that agent.
And our hypothesis is that the incremental conversion benefits are likely to outweigh the cost of that additional referral fee.
Ryan Tomasello, Analyst, KBW: Got it. Thanks for the color, Clarke, Carrie.
Carrie Wheeler, Chief Executive Officer, Opendoor Technologies: Yeah. Thanks, Ryan.
Conference Operator: Thank you. Our next question comes from the line of Benjamin Black with Deutsche Bank. Your line is now open.
Day Li, Analyst, JPMorgan: Great. Thanks for the question.
Yigal Aronian, Analyst, Citigroup: Just a quick follow-up on the agent partnership. I mean, you spoke about the test markets. What signal are you looking for that would potentially drive a broader rollout of the partnership? And then also curious to hear if you have all the infrastructure, so to speak, scale up partnership or is there some go to market investments that are required going forward? Thank you.
Carrie Wheeler, Chief Executive Officer, Opendoor Technologies: Yeah. I’ll do this in reverse order, maybe. Like, you think about what we’ve built, we have built a brand, the marketing engine, this huge funnel of high-tech sellers, all the pricing capabilities and the transaction platform. And this is just a way for us to leverage all those capabilities via another go to market channel. So we have all those things built today.
We’re just leveraging them vis a vis our agent partnership relationships with people, many of whom we’re interacting with already every day, as they fulfill our cash offer. So I think it’s actually a pretty seamless move. We’ve built things like creating a platform to do assessments that we do or sometimes agents do on our behalf. So we are very set up, and we’ve been working on that for a while to be able to expand it. So that’s one.
To your first part of your question, which is what are we looking for in terms of signal, ultimately, we’ll be looking for conversion, whether that’s incremental conversion, neutral better to a cash offer, and also incremental conversion to a listing outcome that we participate in.
Day Li, Analyst, JPMorgan: Great. Thank you. Thanks so much.
Carrie Wheeler, Chief Executive Officer, Opendoor Technologies: Thanks.
Conference Operator: Thank you. This concludes today’s question and answer session. Thank you all for your participation on today’s call. This does conclude the call. You may now disconnect.
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