In a significant announcement, Opendoor Technologies Inc. (“Opendoor”) (Nasdaq: OPEN), a prominent e-commerce platform specializing in residential real estate transactions, has granted restricted stock units covering 5,073,831 shares of its common stock to thirty-three (33) non-executive employees. The award took place on May 23, 2023, under the 2022 Inducement Award Plan (the “Inducement Plan”), as part of an inducement for these individuals to begin employment with Opendoor.
The stock units will vest over a span of two years, contingent on continued service. For most recipients, 50% of the shares from the restricted stock units will vest on the first anniversary of their vesting commencement date, with an additional 1/8th of the shares vesting quarterly thereafter. The restricted stock units will be subject to the terms and conditions of the Inducement Plan and a restricted stock unit agreement that governs the grant.
In another development, Opendoor also reported its financial results for the quarter ending March 31, 2023. Carrie Wheeler, CEO of Opendoor, highlighted the firm’s dedication to its vision of building the most trusted e-commerce platform for residential real estate. “Our Q1 results demonstrate our progress in navigating the housing market transition against an uncertain macro backdrop,” Wheeler added.
Despite the uncertain climate, the first quarter of 2023 brought some significant highlights for the company. Total homes sold for the quarter stood at 8,274, with revenue totaling $3.1 billion. Gross profit for the quarter was $170 million, while net loss was reported at $101 million.
However, the company did see a decrease in revenue and home sales compared to Q1 2022. The total revenue was down 39%, and the total homes sold decreased by 35%. The gross margin was also slightly lower, standing at 5.4% compared to 10.4% in the first quarter of 2022. The inventory balance, representing 6,261 homes, decreased by 55% compared to Q1 2022, and 1,747 homes were purchased, down 81% compared to the same period last year.
Looking forward to Q2 2023, Opendoor has given revenue guidance of $1.75 billion to $1.85 billion and an adjusted EBITDA guidance of $180 million to $200 million loss.
To discuss these financial results, Opendoor will host a conference call on May 4, 2023, at 2:00 p.m. Pacific Time. The webcast will be accessible live from Opendoor’s Investor Relations website, with an archived version available later.
Through ups and downs, Opendoor continues to fulfill its mission to power life’s progress, one move at a time. It’s notable that even in an uncertain macroeconomic environment, the company is making strides in operational excellence and attracting more sellers, and the stock award is a clear commitment to its employees’ long-term growth.
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