Opendoor Technologies Inc. stock research
FY2024 Q3
Opendoor Technologies (OPEN) Gross Margin — Quarter Ended Sep 30, 2024
Revenue for the quarter was lower compared to the prior quarter but higher than the same quarter last year. Gross margin weakened both sequentially and from a year ago, as cost of revenue grew at a faster pace than revenue over the yearly comparison.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue for the quarter was lower compared to the prior quarter but higher than the same quarter last year. Gross margin weakened both sequentially and from a year ago, as cost of revenue grew at a faster pace than revenue over the yearly comparison.
- The most observable margin driver was the difference between revenue and cost of revenue growth rates; cost growth outpaced revenue growth compared to last year, compressing gross margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all declined. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower due to a proportionally larger increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
7.6%
Gross profit
$105.0M
Revenue
$1.4B
Cost of revenue
$1.3B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-2.2 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $870.0M | $72.0M | $798.0M | 8.3% |
| Mar 31, 2024 | $1.2B | $114.0M | $1.1B | 9.7% |
| Jun 30, 2024 | $1.5B | $129.0M | $1.4B | 8.5% |
| Sep 30, 2024 | $1.4B | $105.0M | $1.3B | 7.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.9 pts
Year-over-year change
Sep 30, 2023
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver was the difference between revenue and cost of revenue growth rates; cost growth outpaced revenue growth compared to last year, compressing gross margin.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all declined. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower due to a proportionally larger increase in cost of revenue.
Monitor the relationship between revenue and cost of revenue in upcoming quarters to assess whether gross margin stabilizes.