Opendoor Technologies ( NASDAQ:OPEN ) delivered an earnings surprise a few days ago. While still operating at a loss, it was much lower than anticipated.
However, looking at the 12-month trailing cash burn leaves us a bit less optimistic. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth.
Opendoor Technologies is an Arizona-based real estate digital platform. It launched in 2014 and went public in 2020 through a reverse merger with a special purpose acquisition company (SPAC). Over the last 7 years, the company brokered over 90,000 homes in 27 U.S markets. Its current market cap is at US$10.6b
Compared to the traditional real estate agent business model, Opendoor innovates by purchasing the home directly from a seller by using an AI-driven assessment to make an initial offer. Upon further inspection, the deal can close as fast as 3…