Opendoor Technologies Inc. stock research
FY2023 Q4
Opendoor Technologies (OPEN) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased from the previous quarter, while cost of revenue also fell, leading to a slightly lower gross margin. Year over year, revenue was much lower but gross profit was comparable, as cost of revenue dropped sharply, driving a higher gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both decreased from the previous quarter, while cost of revenue also fell, leading to a slightly lower gross margin. Year over year, revenue was much lower but gross profit was comparable, as cost of revenue dropped sharply, driving a higher gross margin.
- The relative movement of cost of revenue compared to revenue is the strongest observable driver: sequentially, cost declined less than revenue, weakening margin; year over year, cost declined more than revenue, strengthening margin.
- Sequentially, revenue and gross profit were lower, with gross margin weakening from the prior quarter. Year over year, revenue was significantly lower, but gross margin improved due to a larger proportionate decline in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
8.3%
Gross profit
$72.0M
Revenue
$870.0M
Cost of revenue
$798.0M
Quarter-over-quarter change
-1.5 pts
Year-over-year change
+5.8 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% |
| Dec 31, 2023 | $870.0M | $72.0M | $798.0M | 8.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.5 pts
Year-over-year change
Dec 31, 2022
+5.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relative movement of cost of revenue compared to revenue is the strongest observable driver: sequentially, cost declined less than revenue, weakening margin; year over year, cost declined more than revenue, strengthening margin.
Sequentially, revenue and gross profit were lower, with gross margin weakening from the prior quarter. Year over year, revenue was significantly lower, but gross margin improved due to a larger proportionate decline in cost of revenue.
The company's need for additional capital and debt financing to pursue business objectives, as noted in the liquidity discussion, is a key item to monitor.