Opendoor Technologies Inc. (OPEN), a digital platform for residential real estate, has slid 8.01% in the premarket trading session. As a result, the stock was trading at $10.10 when last checked. During Thursday’s regular trading session, the stock surged 19.09% and closed the day at $10.98. The stock’s abysmal performance in the premarket could be attributed to the announcement of financial results.
Q4 and FY 2021 Results
On Thursday, OPEN announced the results for Q4 2021 and FY 2021. The total revenue for Q4 2021 was $3.8 billion, a belligerent increase of 1,435% compared to Q4 2020. The gross profit for the quarter was $272 million compared to $39 million for Q4 2020. The net loss for Q4 2021 was $191 million against $54 million for the same quarter of 2020. During FY 2021, the total revenue was $8 billion, an increase of 211% versus 2020. The gross profit for 2021 was $730 million, up 377% when compared to 2020. The net loss suffered during 2021 was $662 million versus $253 million in 2020.
Outlook for Q1 2022
OPEN also reported the outlook for the upcoming quarter. The company expects to generate revenue in a range of $4.1 to $4.3 billion during the first quarter of fiscal 2022, an increase of 462% on a year-over-year basis at the midpoint of the range. The adjusted EBITDA for the first quarter of fiscal 2022 is expected to remain between $30 and $40 million, an increase of $37 million on a year-over-year basis at the midpoint of the range.
Comments from OPEN CEO
Eric Wu, Co-founder, and CEO of OPEN, commented that the company has seen a long-lasting shift in demand for its products in fiscal 2021. The consistent performance has caused the company to pull forward its financial targets by years. The seamless experience that customers enjoy on the company’s platform would continue to attract more and more customers in years to come.
What’s Next for OPEN?
Analysts believe that despite the current falling trend, several technical signals for OPEN stock are pointing in a positive direction. Hence, the stock is expected to perform strongly in the next couple of weeks.