Opendoor Technologies Inc. stock research
FY2024 Q1
Opendoor Technologies (OPEN) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased compared to the preceding quarter but decreased compared to the same quarter last year. Gross profit and gross margin improved relative to both periods, while cost of revenue was higher than the prior quarter and lower than the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased compared to the preceding quarter but decreased compared to the same quarter last year. Gross profit and gross margin improved relative to both periods, while cost of revenue was higher than the prior quarter and lower than the year-ago quarter.
- The gross margin improved sequentially and year-over-year, driven by a lower proportion of revenue consumed by cost of revenue. This indicates that cost of revenue grew at a slower pace than revenue compared to the prior periods.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin strengthened. Relative to the same quarter one year earlier, revenue was lower, but gross profit was also lower, yet gross margin improved due to a proportionally larger decline in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.7%
Gross profit
$114.0M
Revenue
$1.2B
Cost of revenue
$1.1B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+4.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $1.2B | $114.0M | $1.1B | 9.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+1.4 pts
Year-over-year change
Mar 31, 2023
+4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a lower proportion of revenue consumed by cost of revenue. This indicates that cost of revenue grew at a slower pace than revenue compared to the prior periods.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin strengthened. Relative to the same quarter one year earlier, revenue was lower, but gross profit was also lower, yet gross margin improved due to a proportionally larger decline in cost of revenue.
Monitor the impact of seasonal housing market trends and macroeconomic conditions on the relationship between revenue and cost of revenue, as noted in the company's filing.