Opendoor Technologies Inc

Good day, and thank you for standing by. Welcome to the Open Door Technologies first quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. Kimberly Niehaus, Investor Relations. Please go ahead.

Thank you and good afternoon. 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. All statements, other than statements of historical fact, are statements that could be deemed forward-looking, including but not limited to statements regarding Opendoor's financial condition, anticipated financial performance, business strategy and plans, market opportunity and expansion, and management objectives for future operations. These statements are neither promises nor guarantees, and undue reliance should not be placed on them. Such forward-looking statements 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 factor section of the Opendoor's most recent annual report on Form 10-K for the year ended December 31st, 2024, as updated by our periodic reports filed after that 10-K. Any forward-looking statements made on this conference call, including responses to your questions, are based on management's reasonable current expectations and assumptions as of today. And Opendoor assumes no obligation to update or revise them, whether as a result of new information, future events, or otherwise, except as required by law. The following discussion contains references to certain non-GAAP financial measures. The company believes these non-GAAP financial measures are useful to investors as supplemental operational measurements to evaluate the company's financial performance. For 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 Carrie Wheeler, Chief Executive Officer of Opendoor.

Thanks, everyone, for joining us today. At Opendoor, we remain relentlessly focused on our mission to reinvent residential real estate in the U.S., making it simpler, more convenient, and more customer-centric. The strategy we're executing against is designed to take full advantage of the strengths we've built over the past decade and to position us for long-term success. We continue to operate in an extremely challenging macroeconomic environment, with heightened uncertainty on the back of shifting economic policies and the evolving tariff landscape. Home sellers and buyers are taking a pause. Mortgage rates are back up over 7%, clearance rates are down nearly 25% year over year, and deal listings are up over 30% as sellers continue to exit the market. Despite these headwinds, our focus hasn't changed. We're here to give customers certainty, convenience, and choice, especially when they need it most. We entered 2025 with a clear plan to drive towards profitability while strengthening our product experience and leadership position. Our progress is reflected in our first quarter results, where our acquisition volumes, revenue, contribution profit, and adjusted EBITDA demonstrate strong execution amidst a challenging macro backdrop. And while we're focused on driving profitability, we're also investing in our future. Over the past decade, we've built a trusted, category-defining platform that gives sellers the certainty of a cash offer Now we're evolving into a platform where every seller can explore all their selling options, whether that's through a cash offer or listing with an agent. We are expanding how we go to market, leveraging our unique platform and relationships. Today, a meaningful percentage of our acquisitions come to us through an agent who is bringing their customer to Opendoor and requesting a cash offer. For many listing agents, having a cash offer as part of a complete set of selling solutions is considered table stakes. And we've built the platform that allows them to provide a certain and seamless path of fulfilling a cash offer on behalf of their client. We are taking our existing vibrant partnership with agents and flipping the script, so to speak, by sending open-door customer referrals to vetted agent partners. Those agents are able to talk through the options that a customer has to sell from an open-door cash offer to a full listing. In doing so, they're meeting that customer where they are, and they're able to put all options in context relative to that particular seller's needs. We are piloting this experience in select markets and are encouraged by the early indicators we're seeing. Customers are receptive to having a local expert explain their options. Agents benefit from high-intense seller referrals from our marketing engine and are able to bring all options to the table in assessing the smartest move for the customer. And Opendoor has the opportunity to improve conversion, whether it is higher conversion for cash offers or our participation in the listing, which in turn generates asset-light revenue for us. Moreover, we're able to deliver final underwritten offers faster by allowing agents to do an in-home assessment in their first meeting by leveraging our platform. There will continue to be customers who come to Opendoor directly and want the self-serve experience that we have pioneered, but we expect many customers will benefit from having an advisor help them navigate the selling process. We will see how our palette evolves, but we believe that this channel will allow us to serve more sellers, monetize a greater portion of our funnel, and leverage our platform to drive more asset-light business. In addition to how we've expanded the consumer experience, we are continuing to operate the business with four core priorities. First, we're maintaining our pricing discipline. We're monitoring macro conditions closely given an uncertain market and heightened volatility, and against that backdrop, have been proactively increasing our spreads. While that does impact acquisition growth, we believe it's the right trade-off to protect contribution margin. Second, we are working on improving conversion. In addition to the channel expansion I just spoke about, we are making enhancements to our pricing models, including refining how we allocate spreads and improving price segmentation with the goal of enhancing our conversion performance. In Q1, we continue to add new features to our algorithms like school district quality and active competitions. Third, we're allocating our marketing investment to better align with seasonal housing dynamics and spreads. As we shared last quarter, we believe this shift in our advertising strategy drives greater spend efficiency. Consistent with that strategy, we expect our marketing spend in Q2 to be meaningfully lower than in Q1. We'll continue to deploy dollars with a focus on efficiency and impact. And finally, we are highly focused on delivering our product as efficiently as possible. We're building a leaner, more agile organization Fixed operating expenses in Q1 were $19 million lower, or down 33% versus a year ago. These cost efficiencies, paired with our margin improvements, should position us to reduce adjustment losses in 2025 as compared to last year. We have built a powerful platform, and now we're working to unlock even more value for customers and agents, all while keeping our sites firmly on profitability. We look forward to sharing more as we progress throughout the year. And with that, I will turn it over to Celine for the financial overview.