Opendoor Technologies Inc. stock research
FY2023 Q3
Opendoor Technologies (OPEN) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was lower than both the preceding quarter and the year-ago quarter. Gross profit decreased from the prior quarter but turned positive from a negative level a year ago, while cost of revenue declined more than revenue, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was lower than both the preceding quarter and the year-ago quarter. Gross profit decreased from the prior quarter but turned positive from a negative level a year ago, while cost of revenue declined more than revenue, resulting in an improved gross margin.
- Gross margin improved sequentially and year-over-year, driven by a faster decline in cost of revenue relative to revenue.
- Compared with the prior quarter, gross margin strengthened as cost of revenue fell more sharply than revenue. Relative to the same quarter a year earlier, gross margin recovered from a negative position to a positive one, reflecting a significant improvement in cost efficiency.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.8%
Gross profit
$96.0M
Revenue
$980.0M
Cost of revenue
$884.0M
Quarter-over-quarter change
+2.3 pts
Year-over-year change
+22.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.1B | $170.0M | $3.0B | 5.4% |
| Jun 30, 2023 | $2.0B | $149.0M | $1.8B | 7.5% |
| Sep 30, 2023 | $980.0M | $96.0M | $884.0M | 9.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+2.3 pts
Year-over-year change
Sep 30, 2022
+22.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially and year-over-year, driven by a faster decline in cost of revenue relative to revenue.
Compared with the prior quarter, gross margin strengthened as cost of revenue fell more sharply than revenue. Relative to the same quarter a year earlier, gross margin recovered from a negative position to a positive one, reflecting a significant improvement in cost efficiency.
Monitor whether the trend of cost of revenue declining faster than revenue can persist, given the seasonal patterns referenced in the filing.