Opendoor(OPEN)2025-02-27 21:19Financial Position - As of December 31, 2024, Opendoor Technologies Inc. had total outstanding balances on asset-backed debt of $1.9 billion, with 91% at a fixed rate and 9% at a floating rate[440]. - Total current assets decreased to $2.997 billion in 2024 from $3.445 billion in 2023[460]. - Total liabilities decreased to $2.413 billion in 2024 from $2.600 billion in 2023[460]. - The accumulated deficit increased to $3.725 billion in 2024 from $3.333 billion in 2023[460]. - The company reported a total shareholders' equity of $713 million as of December 31, 2024, down from $967 million in 2023[460]. - The total assets related to Variable Interest Entities (VIEs) decreased from $2,283 million as of December 31, 2023, to $2,236 million as of December 31, 2024[542]. - The Company's total liabilities related to VIEs decreased from $2,163 million as of December 31, 2023, to $1,948 million as of December 31, 2024[542]. - The Company had total borrowing capacity of $6.9 billion with respect to non-recourse asset-backed debt as of December 31, 2024[549]. - The committed borrowing capacity for non-recourse asset-backed debt was $2.2 billion, including $400 million for senior revolving credit facilities and $1.4 billion for senior term debt facilities[549]. Revenue and Profitability - Revenue for the year ended December 31, 2024, was $5,153 million, a decrease of 26.0% from $6,946 million in 2023[462]. - Gross profit for 2024 was $433 million, down from $487 million in 2023, reflecting a gross margin of 8.4%[462]. - Net loss for 2024 was $392 million, compared to a net loss of $275 million in 2023, representing a 42.5% increase in losses[465]. - The company reported a comprehensive loss of $391 million for 2024, compared to a comprehensive loss of $272 million in 2023[465]. - The loss before income taxes for the year ended December 31, 2024, was $391 million, compared to $274 million in 2023 and $1,351 million in 2022[615]. - The Company reported a net loss of $392 million for the year ended December 31, 2024, compared to a net loss of $275 million in 2023 and $1.353 billion in 2022[629]. - Basic and diluted net loss per share for 2024 was $(0.56), compared to $(0.42) in 2023 and $(2.16) in 2022[629]. Cash Flow and Liquidity - Cash flows from operating activities showed a net cash used of $595 million in 2024, a significant decline from a net cash provided of $2,344 million in 2023[472]. - The company had cash, cash equivalents, and restricted cash of $763 million at the end of 2024, down from $1,540 million at the end of 2023[473]. - Cash and cash equivalents totaled $679 million as of December 31, 2024, down from $1,069 million in 2023[536]. - The Company’s cash position included $60 million in cash and $611 million in money market funds as of December 31, 2024[536]. - As of December 31, 2024, the Company reported $671 million in cash and cash equivalents, down from $999 million in 2023[579]. Expenses - Total operating expenses decreased to $753 million in 2024 from $873 million in 2023, a reduction of 13.7%[462]. - Stock-based compensation expense was $114 million in 2024, a decrease from $126 million in 2023[472]. - The Company recorded total interest expense of $3 million on convertible senior notes for the year ended December 31, 2024, down from $5 million in 2023[569]. - Operating lease costs for the year ended December 31, 2024, were $8 million, down from $11 million in both 2023 and 2022[582]. - The company recorded a total lease termination cost of $3 million recognized in restructuring for early lease terminations in December 2024[582]. Inventory and Valuation - The company's real estate inventory, net, increased to $2.159 billion as of December 31, 2024, up from $1.775 billion in 2023[460]. - Real estate inventory is carried at the lower of cost or net realizable value, with valuation adjustments reviewed at least quarterly[490]. - The company recorded inventory valuation adjustments of $57 million, $65 million, and $737 million for the years ended December 31, 2024, 2023, and 2022, respectively[535]. - The company was under contract to purchase 1,705 homes for an aggregate purchase price of $589 million as of December 31, 2024[534]. Tax and NOLs - Total deferred tax assets as of December 31, 2024, were $859 million, with a valuation allowance of $795 million, resulting in net deferred tax assets of $64 million[619]. - The effective tax rate for the year ended December 31, 2024, was (0.2)%, compared to (0.5)% in 2023 and (0.4)% in 2022[616]. - The Company had a net operating loss of $633 million as of December 31, 2024, an increase from $541 million in 2023[619]. - The Company has $2.5 billion of U.S. federal NOLs and $659 million of state NOLs with an unlimited carryover period as of December 31, 2024[620]. - As of December 31, 2024, the Company had U.S. federal net operating loss (NOL) carryforwards of $2.6 billion and state NOL carryforwards of $2.0 billion, both beginning to expire in 2034 if not utilized[620]. Market and Economic Conditions - The company is exposed to inflationary pressures affecting costs of goods and services, including labor and materials for home repairs[441]. - The Federal Reserve's rate increases since 2022 have impacted mortgage interest rates, affecting the company's business environment[442]. - A one percentage point increase in applicable benchmark rates is estimated to increase annual interest expense by approximately $2 million as of December 31, 2024[440]. Shareholder and Equity Information - Weighted-average shares outstanding increased to 699,457,000 in 2024 from 657,111,000 in 2023, indicating a dilution effect on earnings per share[462]. - The Company has not paid any cash dividends on common stock to date and has no current plans to do so in the foreseeable future[590]. - The Company recognized stock-based compensation expense related to the Employee Stock Purchase Plan (ESPP) of $3 million in 2024, up from $2 million in both 2023 and 2022[603]. Other Notable Items - The Company recognized a $14 million gain in Other income (loss) – net due to the deconsolidation of Mainstay Labs Inc. on July 31, 2024[633]. - As of December 31, 2024, the retained interest in Mainstay was valued at $39 million, classified as a non-marketable equity security investment[633]. - The Company performed an ownership analysis and identified three previous ownership changes, but none resulted in material limitations on NOL carryforwards[621].