Opendoor Technologies Inc. stock research
FY2024 Q4
Opendoor Technologies (OPEN) Gross Margin — Quarter Ended Dec 31, 2024
Revenue for the quarter was mostly consumed by cost of revenue, yielding a modest gross profit. The gross margin, expressed as gross profit divided by revenue, indicates the portion of revenue retained after covering direct costs.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue for the quarter was mostly consumed by cost of revenue, yielding a modest gross profit. The gross margin, expressed as gross profit divided by revenue, indicates the portion of revenue retained after covering direct costs.
- The most notable margin driver is the relative movement of cost of revenue versus revenue; cost of revenue declined proportionally more than revenue, resulting in a higher gross margin than the prior quarter.
- Compared to the prior quarter, revenue and gross profit were lower, while gross margin improved slightly. Compared to the same quarter a year earlier, revenue and gross profit were higher, but gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
7.8%
Gross profit
$85.0M
Revenue
$1.1B
Cost of revenue
$999.0M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-0.4 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, 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% |
| Dec 31, 2024 | $1.1B | $85.0M | $999.0M | 7.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.2 pts
Year-over-year change
Dec 31, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver is the relative movement of cost of revenue versus revenue; cost of revenue declined proportionally more than revenue, resulting in a higher gross margin than the prior quarter.
Compared to the prior quarter, revenue and gross profit were lower, while gross margin improved slightly. Compared to the same quarter a year earlier, revenue and gross profit were higher, but gross margin weakened.
Monitor the company's gross margin trend in light of its disclosed need for additional capital and potential credit market conditions.