Opendoor Technologies Inc

Good day, and thank you for standing by, and welcome to the Open Door Third Quarter 2021 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your host today, Elise Wang.

Please go ahead.

Thank you and good afternoon. Full details of our results and additional management commentary are available in our earnings release and shareholder letter, which can be found on the investor relations section of our website at investor.opendoor.com. Please note that this call will be simultaneously webcast on the Investor Relations section of the company's corporate website. Before we start, I would like to remind you that the following discussion contains forward-looking statements within the meaning of the Federal Securities Laws, including, but not limited to, statements regarding Opendoor's future financial results and management's expectations and plans for the business. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Opendoor's Annual Report on Form 10-K for the year ended December 31, 2020, and Opendoor's other periodic SEC filings, including the Quality Report on Form 10-Q for the period ended September 30, 2021, to be filed with the SEC. Any forward-looking statements made in this conference call, including responses to your questions, are based on current expectations as of today, and Opendoor assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. The following discussion may contain non-GAAP financial measures. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP metric, please see our website at investor.opendoor.com. I will now turn the call over to Eric Wu, co-founder and chief executive officer.

Good afternoon, and thank you for joining us today. I'm excited to share our third quarter results alongside Kerry Wheeler, our chief financial officer, and Andrew Lewaki, our president. Aligning with our first core value, which is to start and end with the customer, I want to ground us in our work with a recent customer story. You will hear from Tyler Botna, who sold his home and bought a home completely with Opendoor while fulfilling a childhood dream.

Hi, I'm Tyler Botna. I live in Lynchfield Park, Arizona, and I bought and sold my house through Opendoor. The big reason why we wanted to move was, one, we wanted to find the dream home and probably most importantly was getting to a location that had really high marks for education for our son. When we first started the process, a lot of the apprehension we had was trying to locate a very ideal or specific home that we wanted while also selling the home. We've sold conventionally and bought conventionally prior and going through that process and then going through open doors, process. I really couldn't put a value to how much easier that process was. What they made possible for us was essentially getting us a life that we didn't think was possible. Being able to sell a home that we weren't quite sure we would get what we want or even if the sale would go through, and to be able to buy a home, move into our dream neighborhood and dream house. The open-door experience, I'd say probably just in one word, is easy.

We often cite externally that two-thirds of sellers are also buyers, but we rarely detail the complexity and timing of managing two transactions while balancing the realities of life. And these realities include the forming of a new family, the pressures of work, the hardship of a pandemic, the death of a family member, or the drive for a better school district. This is why our work matters. Our vision, which has remained the same since starting Opendoor, is to make it possible to buy, sell, and move at the tap of a button. We know the end state for the real estate marketplace will be a simple, certain, and fast transaction powered by technology. It's not a matter of if, but when. So we've been heads down building this future experience piece by piece with the consumer in mind at every step. Our third quarter results are a byproduct of this focus, exceeding our expectations on the top line and bottom line. We generated $2.3 billion in revenue, acquired over 15,000 homes, delivered over 170 million of contribution profit, and generated 35 million of adjusted EBITDA. While we were clear on our vision and strategy, The foundation of our performance has been and will continue to be our team and execution. In terms of our team, we've added substantial talent this past quarter. In addition to expanding our pool of executives across pricing, engineering, product operations, and people teams, we've made three acquisitions. We acquired Pro.com and Skylight, two seasoned, really special teams that have spent years combining logistics and technology to build digital consumer experiences to upgrade a home. This will in turn strengthen our ability to continue to scale our home operations. We also acquired RedDoor.com, a digital home financing product, which makes it possible to get pre-qualified for a mortgage in less than 60 seconds with an elegant mobile experience. We are excited to welcome our new teammates to OpenDoor as we build out the next evolution of our products. In terms of our execution, we are continuing on our journey of driving existing market growth, expanding nationwide, and building an end-to-end digital experience. With an existing market growth, in Q3, we saw material gains in the adoption of Opendoor, growing acquisitions by 79% and resales by 72% quarter on quarter. This was driven by rising consumer awareness and expanded buy box coverage, which again resulted in record offer growth and record real seller conversion. As a tangible example of the impact of our pricing and cost advantages, nearly half of our acquisitions are coming from our expanded buy box. With an expanding nationwide, we launched five new markets in Q3, bringing our total footprint to 44 markets, more than doubling our market count year to date and ahead of our 2021 forecast. With our growing footprint, we are already seeing the benefits of increasing scale and driving awareness and operational efficiency, which further reduces the cost and effort to launch more markets. Upcoming, We are laying the groundwork for continued expansion next year and well on our way to our long-term goal of servicing customers in every market nationwide. Most importantly, we continued our investments in building the digital one-stop shop for movers. There is a generational shift happening from offline to online, and we intend to capture this opportunity. Last week, we launched Open Door Complete, which brings together all the disparate steps to buy and sell a home into a single streamlined experience. Open Door Complete provides homeowners certainty and instant access to the equity in their home, the power and guarantee of our cash to strengthen a buyer's offer, and the ability to line up closing dates to avoid double moves and double mortgages. This is the integrated experience buyers and sellers are demanding. Last, we are not standing still. We are pushing forward with the same speed, focus, and grit that has defined us over the past seven years. I'll now turn it over to Carrie to discuss our financial performance.

Thanks, Eric. As Eric said, Q3 was another strong quarter for Opendoor. We purchased 15,181 homes, up 79% versus Q2. This growth was driven by our superior value proposition and robust operational capabilities, which led to record levels of offers and record real seller conversion. Buy Box expansion provided a strong tailwind with more than 45% of the homes acquired in Q3 coming from our expanded Buy Box since the end of 2019. In addition, our brand building efforts and lifecycle marketing delivered stronger than anticipated growth. On the resale front, we sold 5,988 homes, up 72% versus Q2, and generated revenue of nearly $2.3 billion, up 91% quarter over quarter. We exceeded the high end of our guidance primarily due to unit volumes, driven by strong home acquisition growth, and the overall strength of demand for homes, which led to a faster sell-through rate than we anticipated. Home price appreciation and price-related buy box gains were also tailwinds to revenue, driving a sequential increase in revenue per home sold of 11%. Our adjusted gross profit margin was 10.3%, and our contribution margin was 7.5% in Q3. These compare to 13.5% and 10.8%, respectively, in Q2. This sequential moderation is in line with our expectation and our prior guidance. As a reminder, we believe we can sustainably deliver mid-single-digit contribution margins of approximately 4% to 6% on an annual basis, given our cost structure and the strength of our pricing and operational capabilities. In Q1 and Q2, our margins outperformed these levels for two primary reasons. One, as we exited 2020 with very low inventory levels, our resale mix was heavily over-indexed to recently acquired homes. And two, we were deliberately a bit conservative in how much HPA we embedded into our pricing in the early part of the year, particularly as HPA accelerated throughout Q1. We saw both of these temporary factors begin to unwind in Q3, in line with our internal expectations and the guidance we provided last quarter. We expect to be back to operating within our 46% target margin range in Q4. Over the long term, we believe this moves to 7% to 9% as we continue to grow our services revenue and margin streams. One additional note on unit margins given the news of the last few weeks. We understand the importance of one, forecasting, and two, managing seasonal and macro market changes. We have prioritized our investments in our pricing capabilities across acquisition valuation, forecasting, and resale systems since our inception. These investments pair with a strong risk management DNA that's embedded in our pricing, our operations, and our finance teams. Our philosophy for growth has always been and will continue to be anchored in disciplined unit economics. I'd note that Q4 of 2021 will mark our 20th consecutive quarter of positive contribution margins. Adjusted EBITDA on the quarter was $35 million compared to $26 million in Q2. Adjusted EBITDA was well ahead of our expectations due to revenue outperformance and strong unit economics, both of which provide incremental leverage against our operating expense base. Adjusted operating expenses, defined as the delta between adjusted EBITDA and contribution profit, were $135 million, up $33 million quarter over quarter. We expect Q4 OPEX to increase sequentially by approximately $20 million from Q3 levels as we continue to invest in our platform and growth. We ended the quarter with adjusted net income of negative $17 million compared to positive $2 million in Q2. We view adjusted net income as the best proxy for free cash flow, as it distinguishes true free cash flow on an operating basis from how we fund our inventory purchases. Turning to the balance sheet. We ended Q3 with $1.8 billion in cash and cash equivalents and marketable securities, as well as $484 million in restricted cash that represents working capital related to our inventory financing. As of today, we've more than doubled our maximum borrowing capacity from last quarter, up now to $9 billion across our non-recourse asset-backed facilities. We are well capitalized to fuel the tremendous growth we're seeing across our business. Turning now to our guidance. We are reiterating the expectations we laid out last quarter, which puts us at a run rate that pulls forward our original three-year financial plan by two years. Overall, housing fundamentals remain strong, with inventory levels at multi-decade lows for this time of year alongside continued heightened demand for single-family housing. HPA has softened relative to all-time highs, largely due to seasonality, but remains positive and well above the typical levels expected for this time of year. but most importantly the dominating driver for our business is that customers value the simplicity and certainty of our products and product adoption continues to accelerate this is evident in our acquisition volume growth of almost 80 percent quarter and quarter which puts us at an annualized gmv run rate north of 20 billion we expect q4 acquisition volumes to be lower than third quarter due to proactive volume management initiated in the middle of q3 as well as the typical seasonal slowdown associated with Q4. As our growth significantly exceeded our expectations, we made the decision to meet our acquisition growth and ensure we continue to deliver a seamless customer experience. We have been and continue to invest aggressively in our internal operations, vendor network, and tooling and automation to lay the foundation for another strong year of growth in 2022 while continuing to meet our overall customer, operating, and financial objectives. We expect fourth quarter revenue to be between 3.1 and $3.2 billion, which represents 39% sequential growth over Q3 at the midpoint of the expected range. And we expect adjusted EBITDA in the range of negative five to positive $5 million, which represents breakeven at the midpoint. This outlook is consistent with the expectations we outlined last quarter. We are proud of Q3. Kudos to our team for these results, for their agility in navigating market conditions in a period of hypergrowth, and for their unwavering focus on delivering a simple, certain, and trusted experience to our customers. And with that, we'll now open up the call for questions. Thank you.

And thank you. As a reminder, to ask a question, you'll need to press star 1 on your telephone. To withdraw your question, press the pound key. And we please ask that you limit yourself to one question. And our first question comes from Nick Jones from Citi. Your line is now open.

Great. Thanks for taking the questions. I guess maybe two. One, can you touch on housing pricing volatility and how you feel your model is kind of positioned to withstand that and kind of detect it given kind of the turnover and And then, you know, if, let's say, prices do compress a little bit, you know, how much contribution margin compression can we expect and how much can the kind of model withstand given some of the other kind of headlines and eye-buying over the last two weeks?

Thanks. Before I pass it to Kerry to talk about the housing price volatility question and the compression of contribution margin question, I just want to reemphasize that. We're in a generational shift in housing from offline to online, and we understand empirically that consumers love our product, and we have very strong, stable unit economics. So let me pass it to Carrie to talk about the two questions you had.

Thanks, Eric. Hey, Nick. Embedded in your question is just, you know, how do we price for homes and how do we think about forecasting? A couple comments. One, we're very good at this. This is core to what we do. We have built over the last seven years very robust pricing systems. We have seven years of investment in the data, in the modeling, and in our team that allows us to continuously improve how we model and approach home price valuations. We operate our business with a ton of discipline. As Eric said, we are rigorously back testing our models every day. They're highly responsive. They have fast feedback loops, and we can react to changing market conditions. Our forecasting accuracy is what allows us to manage the business within a reasonable range of outcomes and deliver margins within that 4% to 6% contribution margin range that we've guided to. Ultimately, the proof of our ability to do that is in our results. I just want to mention again, Q4 will mark our 20th consecutive quarter of positive CM. so that's housing and you know sort of the housing and forecasting question in total i think that part two of your question was around contribution margins and how they may fluctuate with changes in hpa important is that our model really works in up markets it's going to work in flat markets going to work in down markets we've talked about this before but we are a market maker like to find that that means we provided liquidity to customers We're pricing certainty, and we're taking a spread. We're getting paid for that. And we're managing our business to that 4% to 6% range I just indicated. If HPA were to go down, we would look to fluctuate or increase our spreads to manage to that target margin range. So I would not marry HPA trends and contribution margin trends together. We're driving for consistency within that range of outcomes.

Great. Maybe I can ask a follow-up question. Just around, you know, pricing models, I think there's a lot of, you know, there's a lot of available data to a lot of people to try to kind of, you know, real estate agents do this. Zillow has a ton of, I guess, data. You know, is there an angle to kind of how the data is structured and deployed that, you know, we need to think more about in terms of kind of a competitive moat? Thanks.

It's a good question, Nick, and it's something that we treat as proprietary and a large competitive moat. that compounds as we get to scale over time. And so I would just say that since we started Opendoor, this has been core and foundational to the business. And we've invested time, energy in the team, the data pipelines, how we think about feedback loops across multiple vectors of pricing to be in the position we are in today. And so I'm not going to speak to the specifics, but it is a very big investment area for the company.

Great. Thanks for taking the questions.

Thank you. And thank you. And our next question comes from Jason Helfstein from Oppenheimer. Your line is now open.

Thanks. I'm going to ask two. How much of the 11% quarter-to-quarter increase in revenue per home was a byproduct of the buy box expansion versus home price appreciation? And then second, with Zillow exiting, how do you think this impacts marketing efficiency, your marketing efficiency, or... No impact or just general thoughts there, thanks.

Hey, Jason. Yeah, the 11% increase in revenue per home, really a mix of, I'd say, price-related buy box expansion and some just market appreciation. We don't break those two things out specifically, but I would say it's a good mix of both. More weighted to the buy box side.

Yeah, to the second part of the question, I would just say that the value propositions is resonating and it's resonated before Zillow was in the category and it will continue to resonate as we expand nationwide and drive deepening market share within our existing cities. In fact, we see the opposite happening is as we get to scale within cities, our marketing becomes quite efficient.

Thank you.

And thank you. And our next question. comes from Ugal Runian from Wedbush Securities. Your line is now open.

Hey, good afternoon, guys. So one of the things that came up over the past couple of weeks with what's happened in the high buying space has been on the pricing side. The other thing that's come up is on the operational side. You touched on it in your comments and in the investor letter. Can you maybe expand on Scout a little bit, how it drives benefits and helps you scale more efficiently. You mentioned, I think, when you guys first were going public, 10,000 contractors on the app. Can you update that number and then maybe talk a little bit about how the acquisitions can integrate with Scout and kind of help you improve your scalability on the operational side?

Hey, y'all. It's Andrew here. Happy to speak to that. We did see acquisition demand significantly outpace our own expectation beginning early in Q3, and we took steps to proactively manage the overall system balance. It's really a good reflection of the integrated system we run here at Opendoor. You mentioned Scout, and our ability to absorb that 80% quarter-over-quarter increase in in our acquisition volume really highlights seven years of investment, not just in Scout, but in our technology and operations platform more broadly. Capabilities like centralization, the ability to take calls from across our 44 market footprint in one location, or virtualization, the ability for customers or employees or vendors to do things by video instead of in person. or self-serve, which lets a customer do things and take actions on their own timeline when it's most convenient for them without ever involving a person. Those are capabilities that don't happen overnight. It's those investments actually that let us flex up so rapidly and so quickly, even while maintaining the customer experience to an incredibly high standard.

Great, that's really helpful. And then I guess, And all that's happening, a little bit lost in the shuffle, something that usually gets a little bit more attention is just on the ancillary services. And any update on that in general, on open back offers, and then how Open Door Complete can, or how you expect Open Door Complete to kind of tie that together and potentially drive better attacks in the coming quarters? Thank you.

Sure thing. Last quarter, we shared that we hit that $1 billion GMV milestone on open door back offers. And that really was about product market fit, that our open door backed offers were helping customers be more successful in winning their next home. Right now, we're focused on scalability, making sure our tech and ops platforms for our services are ready to scale. Per the comments on our core business, we know that those upfront investments are critical to delivering great experiences over time. And we're focused on investing there. We continue to make progress, as you called out. We launched Open Door Complete last week, which helps the nearly two-thirds of sellers who are also buying have certainty on their sale and the equity in their home, have the power of an Open Door backed offer to win their next home, and the convenience of lining up all the dates, all the power of Open Door's innovation in one seamless offering. We also announced the acquisition of Red Door, a fully digital mortgage brokerage that delivers a truly delightful customer experience. Eric mentioned it in the prepared remarks. A buyer can go from app install to prequal in less than 60 seconds. We're focused on getting the integration and licensing done and look forward to rolling that out in the early part of next year. Overall, we're seeing strong signs that the end-to-end digital experience is what our customers crave, and we're confident that our strategy and execution will deliver for years to come.

Appreciate the answers. Thanks, guys.

Thank you. And our next question comes from Steven Ju from Credit Suisse. Your line is now open.

All right. Thank you so much. I'm sorry if this was covered a little bit earlier, but can you talk about your level of inventory buildup this quarter? Should we be thinking that the traditional holding period of around, you know, 90 to 100 days, maybe elongating a bit here. So you can give yourself a little bit more time to refurbish, given the labor constraints, or, you know, is there another operational factor that's going into a decision here? And I guess, you know, there's probably nuances for each market, but are you finding that the timeline to launch each subsequent city or market is coming down as you get more practice? And At this point, how much prep work or timeline does it really take to go into each new market? Okay, thanks.

Hey, Stephen, it's Carrie. Maybe I'll just touch base a little bit on inventory health and I'll have Andrew speak to the last part of your question. Yes, inventory grew a lot in the last quarter. That's a function of us growing, which is a good thing. And we feel good about what we own right now and the pace of our resale. Our resale pace is going to be slower or faster depending on the market environment we're in. and certainly time of year is one consideration there. People don't love moving during the holidays, so Q4 may be slower, Q1 a little bit faster, et cetera. We factor our resale expectations into how we price and how we manage our inventory, and I'd say that Q4 reflects that resale pace and where we're at right now against what continues to be a very healthy housing market. Nothing fundamentally has changed really about our holding periods, but I'll ask Andrew to comment on the latter part of your question.

Sure. And I think two parts in there. The first around holding periods. Overall, we did, as I mentioned, take steps to proactively manage the overall system period, system balance, because that holding period is elongated. We're confident that the supply will be balanced with our demand outlook across the vast majority of our 44 market footprint by the end of the year. Now, certainly, we see some of the labor constraints that are so prevalent across the country right now, but it's really important to call out that the homes we buy are generally in good conditions. We typically do small jobs, life repairs, so getting a home resale ready doesn't require specialty labor. So we feel good about our ability to have that system completely in balance by the end of this year. And then I think you also had a question in there around the time to launch additional cities. Look, we've more than doubled our market footprint. We started the year with 21 markets. We're now in 44. That 23 market increase is really a testament to our team's execution and the refinement of the playbook that we've made. You saw us actually not only launch 23 markets year to date, but you saw us launch six markets in a single day. And that's a function of the time and investment in centralizing teams so that we could launch and scale more quickly. And the team continues to be hard at work to expand our footprint nationwide. So we feel good about our playbooks there.

Thank you. And thank you. And our next question comes from Michael Ng from Goldman Sachs. Your line is now open.

Hey, good afternoon. This is Adam Hotchkiss on for Mike. Thanks for taking the questions. I have two. First, you mentioned the record real seller conversion, which I think given the bidding wars in the market and high velocity of homes going through the traditional process seems to be quite impressive. Could you give us a sense for what dynamics you think are driving this in the quarter? And then second, with the 45% of acquisitions you mentioned coming from the expanded buy box, since 2019, could you give us a sense of how much of that is new markets versus the expansion of the buy box in some of your other core markets? I guess it would just be good to get a sense of how quickly you ramp the buy box in more heterogeneous markets as you launch them and what gives you the confidence there. Thanks so much.

Yeah, I appreciate the question, Adam. So like you mentioned, we're seeing record highs in two vectors, which is offer requests and then real seller conversion. And what I can highlight is that we have been and continue to focus on three vectors to drive conversion, which is simplicity, certainty, and speed. The last vector that we've started to focus on is really trust. And we see that as we get dense in markets, word of mouth takes over. I think MPS is north of 80, and that helps to drive additional conversion and offer awareness. To the second part of the question, I'll pass it to Kerry to talk about the market, the buy box expansion?

Yeah, I'm happy to. So the 45% increase in buy box we've seen since the 2019 time period, I mean, the vast majority of that is driven by what's in our existing markets. It's just expanding the surface area we can cover within a given market, whether that's home type or price or age, what have you. It's really mostly driven by the existing market size.

And thank you. And our next question comes from Edward Yuruma from KeyBank Capital Markets. Your line is now open.

Hi, this is Abby Zvanec on for Ed. So I know that, you know, penetration of iBuying is still low, but do you believe that sellers were cross-shopping, you know, different iBuyers? And then if so, have you seen any localized pricing changes due to the exit of Zillow? And then a second part to the question, it seems like the buy box has expanded to higher-value homes, but are you also open to older housing stock or homes that require more repair and remodel?

I appreciate the question. So, the first part of the question was, have we observed cross-shopping and iBuying, and what is the impact of less competition? What we've seen is that if we can meet customer expectations and deliver, again, on a simple, certain, and fast transaction, that people will say yes to open door. And while there are cases where people are cross-shopping, we're investing heavily in the experience, our personal capabilities to lower the cost and our pricing accuracy to win the trust of our customers. Again, conversion is north of 35%. So cross-shopping hasn't at all impaired our ability to grow. And in fact, there's, in our perspective, too much demand for our product.

And on your question around buy box changes, as Kerry mentioned, that's really expanding our coverage of homes that we can offer on. We want to delight more customers with the experiences we offer. And that could be any number of dimensions that drive that expansion. It could be an older home. It could be the home price. It could be a little bit around home condition. It could be, you know, take your pick of a long list of different attributes that drive that expansion. Our team has been really good about finding those opportunities where we weren't, where we were not. making offers to customers and expanding our offering to them while making sure that we felt really good about the pricing accuracy and our ability to forecast.

Great. Thank you.

And thank you. And, ladies and gentlemen, if you'd like to ask a question, that is star 1. Again, if you'd like to ask a question, that's star one. And our next question comes from Ryan McEveney from Zellman and Associates. Your line is now open.

Hey, Eric and Kerry. Congrats on the results, and thanks for taking the question. So, obviously, inventory risk management is clearly top of mind here, and, you know, Kerry, you mentioned risk management in the DNA of the company. At the end of the day, obviously, we can see the results in terms of the unit margins obviously remaining good, the inventory valuation impairment staying very modest relative to the size of the inventory. So to ask what several of my colleagues on the call have asked, but a bit different way, part of it clearly relates to the pricing accuracy at the start, but then there's also managing things once it's in inventory, managing that resale pace. Can you talk about your philosophy around whether it's managing cohorts based on geography or time and inventory and ultimately just thinking about that tail risk of the portfolio and kind of how you think about managing that to avoid the situation where you get caught with some inventory that's maybe not selling for where you thought it would? Just general thoughts on the risk management side would be helpful.

Sure, I'm happy to give you some more color on that. As you said, and you highlighted in our remarks, it really is part of our DNA. We spend as much time on the risk management side as we do thinking about the acquisition side. Obviously, those two things are paired together. We're constantly looking at cohort performance and making sure that they are performing in line with where we expected. We hold our own feet to the fire on that every day. We're not just looking at geographies, Ryan, but we're looking at home segment, home price segments, you name it, to understand relative to the expectations we had, how are they performing over time? And that feeds into our ability to forecast and manage the margin ranges we had. We have a big team of very smart people who spend all their time on this topic of pricing and investment led by a chief investment officer. But the ownership of risk and the risk management systems really extend beyond that. It's core to not just the pricing team, Our ops team is held accountable for managing homes and risk. Our finance team thinks about certainly capital markets. We meet regularly on the topic of risk management at the very senior levels of the open-door management team and then down from there. So it's really core to what we do, and it's just part of our daily operating cadence. It has to be.

That's helpful, Carrie. Thank you. Second question, so on the labor of material side of things for innovation, so Obviously, whether it's home builders, whether it's renovators, there are constraints and it makes sense to call out the Open Door Scout platform. I guess to take it a step further and think of it big picture as opposed to the near term, the acquisitions of Pro.com and Skylight, should we think of those as platforms that can get you guys over the long term into things like customizations, upgrades, options that a customer could actually come in digitally and start customizing some things and become... in theory, an added income stream over time. Maybe just some commentary on Pro.com and Skylight and how that ties in. Thank you.

Yeah, it's a good question and a good idea. So I've known the founders of Pro and Skylight for years. And in my perspective, it's rare to find teams that understand the complexity and have the expertise to combine logistics and technology. And that's why we acquired these companies. These teams are passionate about solving similar problems in housing and that have technology capabilities that can pull forward our roadmap, and they're going to be working on helping us scale Opendoor. The second part of your question is, do we want to apply these capabilities in the future to help consumers personalize homes and add revenue streams? It's something that we dream about. It's something that we will put into motion once we feel comfortable with our operational scale. And lastly, more importantly, that we can deliver on a fantastic consumer experience in that category. I think it's something that we can do in the future.

Thanks, Eric.

And thank you. And I'm showing no further questions. I would now like to turn the call back over to Eric Wu for closing remarks.

I just want to spend a second to thank our teammates here at Opendoor that put in the hard work when no one is looking to delight our customers. These results are a byproduct of that hard work and the teammates around the table that spend their nights and weekends helping our customers. Thank you.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.