OP

Opendoor Technologies Inc. stock research

Jun 30, 2023

FY2023 Q2

Opendoor Technologies (OPEN) Gross Margin — Quarter Ended Jun 30, 2023

Revenue declined from the prior quarter and the year-ago quarter, while cost of revenue also decreased. Gross profit moved lower, but gross margin improved sequentially, though it remained below the year-ago level.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue declined from the prior quarter and the year-ago quarter, while cost of revenue also decreased. Gross profit moved lower, but gross margin improved sequentially, though it remained below the year-ago level.

  • The strongest observable margin driver was the sequential improvement in gross margin from the previous quarter to the current quarter.
  • Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

7.5%

Gross profit

$149.0M

Revenue

$2.0B

Cost of revenue

$1.8B

Quarter-over-quarter change

+2.1 pts

Year-over-year change

-4.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$3.1B$170.0M$3.0B5.4%
Jun 30, 2023$2.0B$149.0M$1.8B7.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

+2.1 pts

Year-over-year change

Jun 30, 2022

-4.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver was the sequential improvement in gross margin from the previous quarter to the current quarter.

Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.

Monitor future gross margin trends given the opposing sequential improvement and year-over-year decline, alongside the seasonal and macroeconomic factors noted in the filing.

OPEN Gross Margin — Quarter Ended Jun 30, 2023