Opendoor Technologies (OPEN) shares rose 5.06% to close at $1.87 on November 7th, following the company's third-quarter earnings report that exceeded Wall Street expectations. The real estate technology firm reported a 40.5% year-over-year increase in revenue to $1.38 billion, surpassing analyst estimates of $1.27 billion. Despite a GAAP loss of $0.11 per share, this was significantly better than the anticipated loss of $0.18 per share. Opendoor's adjusted EBITDA loss of $38 million also outperformed the expected $63.02 million loss. However, the company's guidance for the fourth quarter, with expected revenue of $950 million, fell short of analyst projections of $1.20 billion. CEO Carrie Wheeler noted that while the company exceeded its guidance in several key areas, the housing market remains challenged by high mortgage rates and affordability issues.
Opendoor's forecast for a fourth-quarter adjusted EBITDA loss between $60 million to $70 million aligns with market expectations, which may have contributed to the stock's positive movement. The company also highlighted improvements in its operating and EBITDA margins compared to the previous year, alongside a significant increase in free cash flow to $56 million.