OpenDoor, the leading IBuying company in the U.S., posted $3.1 billion in revenue in the first quarter of the year, down by 39% versus Q1 2022, on the back of 8,274 total homes sold, 35% fewer year on year.

The company’s gross profit stood at $170 million, which it said, announcing its results, reflected a $23 million inventory valuation adjustment on homes remaining in inventory at the end of the quarter.

It posted a net loss of $101 million, versus net income of $28 million in Q1 2022, and an adjusted net loss of $409 million, versus net income of $99 million in the year-ago period.

OpenDoor’s adjusted EBITDA stood at -$341 million for the quarter, against $176 million in Q1 2022 with an adjusted EBITDA margin of -10.9%, as compared to 3.4%.

Its inventory balance of $2.1 billion, representing 6,261 homes, marked a slump of 55% versus Q1 2022, while the number of purchased homes slumped by 81% to 1,747.

“Our Q1 results demonstrate our progress in navigating the housing market transition against an uncertain macro backdrop. We exceeded our sell-through expectations for our longest-held homes and continued to build a new book of inventory with strong margin performance,” said CEO Carrie Wheeler.

“We also took further actions to right-size our cost structure. As we look ahead, we are focused on attracting more sellers, including via the expansion of our partnership channels and product diversification, and driving operational excellence to improve our long-term profitability.”

Announced revenue guidance for Q2 2023 is from $1.75 billion to $1.85 billion, with adjusted EBITDA guidance of -$180 million to -$200 million.

Like the rest of the IBuying sector, OpenDoor, which was founded in 2014, has struggled amid the real estate market downturn. With Zillow and Redfin having abandoned IBuying, OfferPad is now its main rival.

Last month, the company cut 560 jobs, or 22% of the workforce, citing a declining housing market. The move followed a layoff in November of 550, then about 18% of its workforce.

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