Opendoor Technologies Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Opendoor Technologies Inc. has filed its 2023 annual report (10-K), detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Opendoor Technologies Inc. (OPENZ) filed a Annual Report (10-K) with the SEC on February 15, 2024. Opendoor Technologies Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 410 N. Scottsdale Road, Suite 1600, Tempe, AZ 85288. Opendoor Technologies Inc. was formerly known as Social Capital Hedosophia Holdings Corp. II, with a name change effective January 24, 2020. The filing includes financial data for the fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking Opendoor Technologies Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Opendoor's financial health, operational strategies, and risk factors for the past fiscal year, which is crucial for investors to assess the company's current standing and future prospects. As a publicly traded company, Opendoor Technologies Inc. is required to disclose detailed financial information and business operations annually, offering transparency to shareholders and the market regarding its performance in the real estate sector.

Risk Assessment

Risk Level: medium — Opendoor Technologies Inc. shows moderate risk based on this filing. The company operates in the real estate sector, which is subject to significant economic fluctuations and interest rate changes, as indicated by the need for detailed financial disclosures in its 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Opendoor's performance and outlook in the current real estate market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-15 — Filing Date (Date of submission)
• 2020-01-24 — Date of Name Change (Transition from former name)

Key Players & Entities

• Opendoor Technologies Inc. (company) — Filer name
• Social Capital Hedosophia Holdings Corp. II (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-02-15 (date) — Filing date
• 410 N. Scottsdale Road, Suite 1600, Tempe, AZ 85288 (address) — Business address

FAQ

Industry Context

Opendoor Technologies Inc. operates in the real estate industry, specifically focusing on iBuying and related services. The company's performance is closely tied to the broader housing market conditions.

Regulatory Implications

As a public company, Opendoor Technologies Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the risk factors section to understand potential challenges facing Opendoor.
3. Compare Opendoor's reported performance against industry benchmarks and previous years.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-15: Filing Date — Date the 10-K was officially submitted to the SEC.
• 2020-01-24: Name Change — Date Opendoor Technologies Inc. officially changed its name from Social Capital Hedosophia Holdings Corp. II.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.0001 — ange on which registered Common stock, $0.0001 par value per share OPEN The Nasdaq Sto
• $1.6 — s were sold, representing approximately $1.6 trillion in transactions. Additionally,
• $6.9 billion — we sold over 18,700 homes and generated $6.9 billion in revenue, the latter of which represe

Filing Documents

• open-20231231.htm (10-K) — 2764KB
• a2023ex1031formofrsugrantn.htm (EX-10.31) — 78KB
• a2023ex1032formofrsugrantn.htm (EX-10.32) — 49KB
• a2023ex211xlistofsubsidiar.htm (EX-21.1) — 32KB
• a2023ex231xconsentofdeloit.htm (EX-23.1) — 2KB
• a202310-kexhibit311.htm (EX-31.1) — 12KB
• a202310-kexhibit312.htm (EX-31.2) — 12KB
• a202310-kexhibit321.htm (EX-32.1) — 9KB
• a2023ex971policyforrecover.htm (EX-97.1) — 33KB
• open-20231231_g1.jpg (GRAPHIC) — 43KB
• 0001801169-24-000016.txt (&nbsp;) — 13783KB
• open-20231231.xsd (EX-101.SCH) — 84KB
• open-20231231_cal.xml (EX-101.CAL) — 111KB
• open-20231231_def.xml (EX-101.DEF) — 489KB
• open-20231231_lab.xml (EX-101.LAB) — 1020KB
• open-20231231_pre.xml (EX-101.PRE) — 781KB
• open-20231231_htm.xml (XML) — 2078KB

RISK FACTORS

ITEM 1A. RISK FACTORS 13

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 37 I TEM 1C. CYBERSECURITY 37

PROPERTIES

ITEM 2. PROPERTIES 38

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 39

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 40 PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 41

[RESERVED]

ITEM 6. [RESERVED] 42

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 43

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 65

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 66

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 113

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 113

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 115

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 115 PART III

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 116

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 116

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 116

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS , AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS , AND DIRECTOR INDEPENDENCE 116

PRINCIPAL ACCOUNTING FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 116 PART IV

EXHIBIT AND FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES 117

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 120

SIGNATURES

SIGNATURES 121 i TABLE OF CONTENTS OPENDOOR TECHNOLOGIES INC. As used in this Annual Report on Form 10-K, unless the context requires otherwise, references to "Opendoor," the "Company," "we," "us," and "our," and similar references refer to Opendoor Technologies Inc. and its wholly owned subsidiaries following the Business Combination (as defined herein) and to Opendoor Labs Inc. prior to the Business Combination.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including, without limitation, statements regarding: current and future health and stability of the real estate housing market and general economy; volatility of mortgage interest rates and expectations regarding future shifts in behavior by consumers and partners; the health and status of our financial condition; anticipated future results of operations or financial performance; priorities of the Company to achieve future financial and business goals; our ability to continue to effectively navigate the markets in which we operate; anticipated future and ongoing impacts and benefits of acquisitions, partnership channel expansions, product innovations and other business decisions; health of our balance sheet to weather ongoing market transitions and any expectation to quickly re-scale in the future upon market stabilization; our ability to adopt an effective approach to manage economic and industry risk, as well as inventory health; our expectations with respect to the future success of our partnerships and our ability to drive significant growth in sales volumes through such partnerships; our business strategy and plans, including plans to expand into additional markets; market opportunity and expansion and objectives of management for future operations, including statements regarding the benefits and timing of the roll out of new markets, products, or technology; and the expected diversification of funding sources, are forward-looking statements. When used in this Annual Report on Form 10-K, words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect

Business

Item 1. Business. Mission Our mission is to power life's progress, one move at a time. Our Company We are the largest digital platform for residential real estate transactions. In 2014, we founded Opendoor to reinvent one of life's most important transactions and make it possible to buy, sell, and move at the tap of a button. By leveraging software, data science, product design and operations, we are building a technology platform for residential real estate that offers buyers and sellers a digital, on-demand experience that we believe will be the future of how people buy or sell a home. Residential real estate is the largest undisrupted category in the United States. In 2023 alone, more than four million existing homes were sold, representing approximately $1.6 trillion in transactions. Additionally, with approximately two-thirds of Americans living in a home they own, housing is the single largest consumer expenditure in the United States, ahead of transportation, food, insurance, and healthcare. Yet, in a world where purchases are increasingly migrating online, the real estate transaction has largely remained unchanged. The typical process of buying or selling a home is complex, uncertain, time consuming, and primarily offline. A traditional home sale requires countless decisions and an average of six intermediaries, often brings unexpected costs, and takes approximately three months from start to finish. Ultimately, the consumer is left dissatisfied with a broken, disjointed experience. Opendoor transforms the home selling and buying process into a simple and certain online experience. Since launch, customers have demonstrated their desire for our digital, on-demand real estate solution with over 246,000 homes bought and sold by Opendoor across the United States. In 2023, we sold over 18,700 homes and generated $6.9 billion in revenue, the latter of which represents a compound annual growth rate of over 45% since 2017. Importantly, we have achieved this g

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View this 10-K filing on SEC EDGAR