What changed in this filing

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Item 1. Business

2024-02-15 compared with 2023-02-23 · 124 added, 104 removed, 210 unchanged (52% of the section changed)

Our mission is to power life’s progress, one move at a time.

We are a leading e-commerce platform for residential real estate transactions.

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 managed marketplace for residential real estate that offers buyers and sellers an enhanced experience as compared to traditional real estate transactions.

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 2022 alone, more than five million existing homes were sold, representing over $1.9 trillion in transactions.

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.

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Ultimately, the consumer is left dissatisfied with a broken, disjointed experience.

We streamline the process of buying and selling a home into a seamless digital experience that is simple and certain.

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 2022, we sold over 39,000 homes and generated $15.6 billion in revenue, the latter of which represents a compound annual growth rate of 85% since 2017.

Importantly, we have achieved this growth while continuing to delight customers, maintaining an annual average Net Promoter Score of nearly 80 from our sellers in 2022.

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 growth while continuing to delight customers, maintaining an average Net Promoter Score of nearly 80 from our sellers since 2021.

Since our initial market launch in Phoenix in 2014, we have expanded across the United States and operated in 50 markets as of December 31, 2023:

Albuquerque, Asheville, Atlanta, Austin, Birmingham, Boise, Boston, Charleston, Charlotte, Chattanooga, Cincinnati, Cleveland, Colorado Springs, Columbia, Columbus, Corpus Christi, Dallas-Fort Worth, Denver, Detroit, Greensboro-Winston, Greenville, Houston, Indianapolis, Jacksonville, Kansas City, Killeen, Knoxville-Morristown, Las Vegas, Los Angeles, Miami, Minneapolis-St.

Paul, Nashville, New York-New Jersey, Northern Colorado, Oklahoma City, Orlando, Phoenix, Portland, Prescott, Raleigh-Durham, Reno, Richmond, Riverside, Sacramento, Saint Louis, Salt Lake City, San Antonio, San Diego, San-Francisco-Bay Area, Southwest Florida, Tampa, Tucson, and Washington, DC.

Albuquerque, Atlanta, Austin, Birmingham, Boston, Charleston, Charlotte, Chattanooga, Cincinnati, Cleveland, Colorado Springs, Columbia, Columbus, Corpus Christi, Dallas-Fort Worth, Denver, Detroit, Greensboro-Winston, Greenville, Houston, Indianapolis, Jacksonville, Kansas City, Killeen, Knoxville-Morristown, Las Vegas, Los Angeles, Miami, Minneapolis-St.

Paul, Nashville, New York-New Jersey, Northern Colorado, Oklahoma City, Orlando, Phoenix, Portland, Prescott, Raleigh-Durham, Richmond, Riverside, Sacramento, Saint Louis, Salt Lake City, San Antonio, San Diego, San-Francisco-Bay Area, Southwest Florida, Tampa, Tucson, and Washington, DC.

We believe we are still in the early stages of the digital transformation of real estate.

Over the coming years, we are dedicated to building a managed marketplace, where more consumers will be able to transact directly with simplicity, certainty and control over the entire process.

We are dedicated to building a digital, one-stop shop for buyers and sellers of residential real estate, where more consumers will be able to transact directly with simplicity, certainty and control over the entire process.

Market Overview

Residential real estate is a massive offline market.

Of the $1.9 trillion residential real estate transactions in 2022, iBuyers (companies that use technology to facilitate these transactions) captured only 1%.

Of the $1.6 trillion residential real estate transactions in 2023, iBuyers (companies that use technology to price homes, acquire properties, and facilitate real estate transactions) captured less than 1%.

The current landscape is highly fragmented.

Today, approximately 90% of residential real estate transactions in the United States involve an agent.

There are over three million licensed real estate agents in the United States, who on average complete less than four transactions per year and many of whom do not solely work in real estate.

Today, over 85% of residential real estate transactions in the United States involve an agent.

There are over three million licensed real estate agents in the United States, who each complete fewer than four transactions on average per year, and many of whom do not solely work in real estate.

This can lead to an inconsistent and frustrating experience for consumers looking for guidance in what is typically the largest financial decision of their lives.

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Consumers are shifting their spend online and demanding digital-first experiences for greater efficiency, certainty and speed.

They are increasingly comfortable transacting online across retail, food and

They are increasingly comfortable transacting online across retail, food and transportation, and they now expect similar experiences in real estate.

While the majority of home buyers browse for homes online, the transaction itself is still largely offline, requiring consumers to engage with real estate agents to access homes and

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transportation, and they now expect similar experiences in real estate.

While the majority of home buyers browse for homes online, the transaction itself is still largely offline, requiring real estate agents to access homes and requiring in-person closings.

requiring in-person closings.

The COVID-19 pandemic catalyzed an increase in demand for digital-first experiences with consumers prioritizing simplicity and certainty.

The traditional process of buying or selling a home is a lengthy and stressful experience for both the seller and buyer.

For the approximately 90% of United States sellers that list their home on the market using an agent, this is what their experience typically looks like:

The traditional process of selling or buying a home is a lengthy and stressful experience for both the seller and buyer.

For over 85% of United States sellers that list their home on the market using an agent, this is what their experience typically looks like:

• Find a listing agent.

Before the seller can list, they must find a qualified agent.

Over 80% of sellers contact only one real estate agent before listing.

Approximately 80% of sellers contact only one real estate agent before listing.

• Prepare the home for listing.

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• List the home.

A home typically needs to be listed for around 30 days on average before it goes into contract.

A home typically needs to be listed for over 30 days on average before it goes into contract.

• Host open houses and home visits .

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• Receive an offer.

One in four home sellers reduces their asking price at least once, while a similar percentage of sellers offer incentives to attract buyers.

Almost 30% of home sellers reduce their asking price at least once, while approximately 20% of sellers offer incentives to attract buyers.

Once an offer is received, the seller has to negotiate the offer, negotiate the closing date, and deal with any contingencies the buyer may have.

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• Contingencies.

Many Americans are reluctant to sell or cannot purchase their next home until they know with certainty what they can afford for their next home.

Many Americans are reluctant to sell or cannot purchase their next home until they know with certainty what they can afford.

Few Americans can qualify for two mortgages and few have enough money for two down payments.

These buyers often have to submit offers contingent on selling their current home, putting them at a disadvantage versus other buyers.

• The “double move”.

Alternatively, homeowners can sell their current home, move into a rental or hotel, and then buy a new home, forcing them to move twice and bear those costs.

We are building a managed marketplace for residential real estate via two core product offerings:

our first-party (1P) product and our third-party (3P) product.

Together, these two offerings leverage our centralized platform capabilities.

We are working towards a future where both 1P and 3P sales take place on our platform, enabling sellers and buyers to experience a simple and certain transaction that dramatically improves the traditional process.

• 1P Product.

Launched in 2014, sellers utilize our 1P product offering to sell their home directly to us and we resell the home to a home buyer.

By selling to Opendoor, homeowners can avoid the stress of open houses, home repairs, overlapping mortgages and the uncertainty that can come with listing a home on the open market.

Using our website, sellers can receive a preliminary offer online.

• The “double move.” Alternatively, homeowners can sell their current home, move into a rental or hotel, and then buy a new home, forcing them to move twice and bear those costs.

Opendoor is an end-to-end real estate platform enabling customers to sell and buy a home online.

We offer a number of products to customers in order to facilitate the transaction that best suits their specific needs.

All of our products leverage our centralized operations and platform capabilities, enabling sellers and buyers to experience a simple and certain transaction that dramatically improves the traditional process.

Today, our product offerings include:

• Sell to Opendoor.

Launched in 2014, sellers utilize our core product offering to sell their home directly to us and we resell the home to a home buyer.

By selling to Opendoor, homeowners can avoid the stress of open houses, home repair coordination, overlapping mortgages, and the uncertainty that can come with listing a home on the open market.

Using our website or mobile app, sellers can receive a preliminary offer online.

We then conduct a home assessment to verify the home information and finalize the offer, taking into consideration the home’s condition.

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We also charge the seller for expected repairs and home quality improvements that relate to our assessment of home condition and the expectations of buyers in the market.

Our service fee is set at 5% across all markets.

This compares favorably to the traditional listing process, which can include a broker fee of 5% to 6%, depending on location, and a number of additional costs, such as resale concessions, inspection costs, staging costs, double mortgage payments on two homes, and additional moving and storage costs.

Our offering compares favorably to the traditional listing process, which can include a broker fee and a number of additional costs, such as resale concessions, inspection costs, staging costs, mortgage payments on two homes, and additional moving and storage costs.

Many of these expenses may be unforeseen by the homeowner at the outset.

Our final offer, inclusive of purchase price, service fee, and repair charge, provides the homeowner with more certainty and transparency as to their expected sale proceeds, while removing the hassle of doing any repairs to get the home “sale ready.”

• 3P Product.

Launched in 2022, our 3P product offering connects the home seller with either an institutional or retail buyer, facilitating the transaction without us taking ownership of the home.

For home buyers, we are building an e-commerce-like experience that focuses on unique selection and a simple process.

For home sellers, we are focused on making the experience of selling seamless, with less time and less hassle than the traditional process.

Sellers can request an offer from our network of buyers, while also receiving an Opendoor offer.

There is no need for repairs, extensive home prep, or months of open houses or listings.

We are also giving home sellers control and flexibility, with no upfront commitment.

We have launched our 3P offering in a limited number of markets.

We have decided to keep our 3P product focused on a small set of markets in 2023 so we can iterate on the product experience quickly.

This is consistent with our approach to how we scaled our 1P product across markets over time.

When we are ready to scale the 3P product, we believe we are well positioned to expand it across our existing 1P markets given our ability to leverage our existing 1P infrastructure.

• List with Opendoor.

Customers can choose to list their home on the MLS with Opendoor while also receiving the certainty of our cash offer.

By choosing this product, sellers work with one of our local agents (or partner agents) to list their home through the open MLS market, leveraging the expertise of the Opendoor brokerage that has sold thousands of homes.

For customers who list their home with us, we charge a listing fee.

For sellers who do not receive the offer they are looking for on the market, they can choose to accept our cash offer.

Our listing product is currently available in 17 Opendoor markets.

• Opendoor Marketplace.

Launched in 2022, our capital-light marketplace offering connects home sellers with both institutional and retail buyers, facilitating transactions without Opendoor taking ownership of the home.

For home buyers, we are building an e-commerce-like experience that focuses on unique selection and a streamlined process, including, in some cases, self-touring and click to purchase pricing.

For home sellers, we are focused on providing options:

in addition to receiving an Opendoor offer, sellers can also look for a higher offer from our network of buyers.

For sellers who choose to place their home into our marketplace, we charge a listing fee.

There is no need for making repairs on spec and no upfront commitment.

We are giving home sellers control and flexibility, including over showings and selling timelines.

We have launched our marketplace offering in one market, Dallas Fort-Worth, so we can iterate on the product experience quickly.

When we are ready to scale, we believe we are well positioned to expand the product across our existing markets given our ability to leverage our existing core product infrastructure.

In addition to these products, we also offer customers integrated title insurance and escrow services through our subsidiaries.

Currently, we offer title insurance services in a majority of our markets and on both the acquisition and resale side of the transaction.

In the markets where our title services are offered, we provided these services for over 80% of Opendoor home transactions that closed in 2023.

Our title and escrow companies charge buyers and/or sellers fees related to settlement and escrow services.

Additionally, as agents for national title insurance underwriters, they charge title insurance premiums, which may be based on promulgated rates or rates filed by national title insurance companies.

The fees charged by our title and escrow companies vary by market.

Our Business Model

The vast majority of our revenue and margins today are generated by our core 1P product offering, where we acquire homes directly from sellers and resell those homes to buyers.

We also offer title and escrow services to customers as well as to buyers touring our homes independently via our app or website, which are accretive to our unit economics.

We plan to incrementally scale our 3P product offering to expand into more markets over time, which we believe has the potential to reduce our inventory exposure, capital intensity, and macro risk when at scale.

We also believe our 3P product offering has the potential to expand our total addressable market to be able to serve all sellers versus those only within our buybox.

We define “buybox” as the types of homes we are able to underwrite and acquire in a given market based on characteristics such as price range, home type, home location, year built and lot size.

We generate demand for our products and services through organic awareness and word-of-mouth, paid media spend, and partnership channels such as our relationships with homebuilders and online real estate portals.

The vast majority of our revenue and margins today are generated by our core product offering, where we acquire homes directly from sellers and resell those homes to buyers.

We also provide additional services to home sellers and home buyers, including title and escrow services, List with Opendoor, and Opendoor Marketplace.

To achieve our long-term margin objectives, we plan to continue to make competitive offers that customers choose, provide value-added adjacent services for our customers to increasingly adopt, and offer products that meet our customers where they are on their selling and buying journeys.

We plan to incrementally scale our listing and marketplace offerings to expand into more markets over time.

At scale, we believe these offerings have the potential to reduce our inventory exposure, capital intensity, and macro risk.

Additionally, we plan to achieve operating leverage by growing our revenue at a faster pace than our fixed cost base, which includes general and administrative as well as technology and development expenses.

We plan to continue to invest in our business and appropriately balance trade-offs between growth, margin, and risk as we scale.

Home sellers can visit our website or mobile app and answer a few questions about their home’s condition, features, and upgrades.

For eligible homes, customers receive a preliminary offer, which can be refreshed at any time through their personalized seller dashboard.

All of our preliminary offers are algorithmically generated and require minimal human intervention.

In order to finalize our offer, we conduct a combination of virtual and in-person home assessments to verify the condition of the home and determine what kind of repairs and home quality improvements will need to be performed after we acquire the home.

We typically ask for a repair charge that relates to our assessment of home condition and what it will require to get the home “sale ready.” We have developed purpose-built software to guide home assessment workflows and collect over 150 unique data points on average regarding a home’s condition and quality.

As of December 31, 2023, all of our preliminary offers are algorithmically generated and require minimal human intervention.

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In order to finalize our offer, we conduct a combination of virtual and in-person home assessments to verify the condition of the home and determine what kind of repairs and home quality improvements may need to be performed after we acquire the home.

We typically ask for a repair charge that relates to our assessment of home condition and what it will require to get the home “sale ready” based on the expectations of buyers in the market.

We have developed purpose-built software to guide home assessment workflows and collect over 150 unique data points on average regarding a home’s condition and quality.

In addition to informing the offer price for that particular home, we incorporate the proprietary data that we collect during home assessments as structured data into our underlying pricing models.

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We add these individuals to our expanding pool of prospective customers, and we re-engage with them over time for when they are ready to transact.

Nearly 30% of sellers who listed or sold their homes have previously entered their home address on

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Opendoor.com across our active markets, which suggests that our registered user base is a powerful source of future sellers that we can use to drive our future growth.

Nearly 25% of sellers who listed or sold their homes have previously entered their home address on Opendoor.com across our active markets, which suggests that our registered user base is a powerful source of future sellers that we can use to drive our future growth.

Home acquisition and repairs

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Our proprietary pricing engine helps automate many of these steps, including relevant adjustments over time.

We manage and measure our inventory performance by acquisition cohort and by market, and our pricing models can incorporate granular, relative demand signals to optimize pricing and sell-through across the portfolio.

Our resale models, in conjunction with our pricing team, are designed to enable realized margins within our targets while maintaining appropriate transaction velocity and inventory portfolio health.

We manage and measure our inventory performance by listing cohort and by market, and our pricing models can incorporate granular, relative demand signals to optimize pricing and sell-through across the portfolio.

Our resale models, in conjunction with input from our pricing team, are designed to enable realized margins within our targets while maintaining appropriate transaction velocity and inventory portfolio health.

When we receive an acceptable offer on a given home, we enter into a resale contract.

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Our pricing function focuses on ensuring we are providing competitive offers to customers while managing acquisition volumes and resale policy decisions to meet our underwriting and risk management objectives.

To create our home offers, we algorithmically produce both an estimated offer price and an assessment of our confidence level in that estimate, and we then further validate that estimate with a value and risk assessment, including a combination of virtual and in person assessments of the home, as well as additional review from our in-house pricing analysts, to finalize the offer.

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To create our final home offers, we algorithmically produce both an estimated valuation and an assessment of our confidence level in that estimate, and we then further validate that estimate with a combination of virtual and in person assessments of the home, as well as additional review from our in-house pricing analysts, to finalize the offer.

We dynamically adjust our offers to account for the level of certainty in pricing each home.

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We recalibrate our view of pricing and where market values are trending using high-frequency detailed metrics across all segments of our business, including inputs related to the dynamics of market demand and supply across markets, home types, and time periods.

These factors are reflected in our spreads, which we define as total discount to our home valuation at the time of offer, less our 5% service fee, which in turn affects seller conversion.

In general, the more spread is reduced, the higher our seller conversion is, which results in more home acquisitions and ultimately more home sales.

While the real estate industry generates a wealth of publicly sourceable data, much of this data lacks the quality and specificity essential to price individual homes.

Since our inception, we have invested in our research and data science teams, modeling capabilities, and systematized tooling to gather, aggregate, and synthesize an expanding catalog of proprietary, hyperlocal data in order to enhance and automate pricing decisions.

Since our inception, we have invested in our research and data science teams, modeling capabilities, and systematized tooling to gather, aggregate, and synthesize an expanding catalog of proprietary, hyper-local data in order to enhance and automate pricing decisions.

We have also acquired third-party data to improve our pricing models and forecast quality.

Our proprietary models are informed by hundreds of data points that have been collected and synthesized in a structured way.

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• Proprietary offline data.

We have conducted approximately 580,000 assessments during which we collect over 150 data points on average for each home and its surroundings.

We have invested in building custom inspection and operator tooling to systematically source and translate home features into a robust data library.

We have conducted approximately 690,000 assessments during which we collect over 150 data points on average for each home and its surroundings using custom inspection and operator tooling to systematically source and translate home features into a robust data library.

These proprietary data points have led us to make approximately 2.1 billion annotations and adjustments to MLS and tax assessor data, as well as build out unique geospatial data assets, such as power line and busy road proximity.

We also use artificial intelligence (“AI”) to extract and automatically categorize data on the condition of homes from customer-provided inputs, such as chat conversations, images, and videos.

Once we list a home for resale, we collect additional home-level demand data such as home visits and visitor feedback, which enable us to calibrate our resale strategy and acquisition home pricing.

• Responsive feedback loop.

Advancements in model sophistication and the integration of systematic modeling and human insights have accelerated our feedback loops, such that our pricing system can dynamically adjust to leading market indicators and human insights, and react to macro- and micro-economic conditions.

• Pricing competitiveness.

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While residential real estate markets are subject to fluctuations, as with any market, we believe we are well-positioned to manage our risk exposure due to the following:

• A critical component of our business model is managing inventory exposure and balancing growth, margin and risk.

Transaction velocity and hold times are important inputs to how we manage our inventory exposure and overall risk.

• A critical component of our business model is managing inventory exposure and balancing growth, margin, risk, liquidity, and capital.

Transaction velocity and hold times are important inputs into how we manage our inventory exposure and overall risk.

We have historically concentrated our home purchases on those segments of the residential real estate market with the highest transaction volumes, which helps lower the risk of involuntarily holding a home for longer than anticipated.

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Accordingly, changing market conditions are reflected in our pricing for new acquisitions, largely leaving previously-acquired inventory and homes under contract to be acquired at risk for potential market volatility.

In addition, we employ sophisticated resale pricing management systems that is designed to allow us to optimize sell-through and margin using real-time, local market demand information, including down to an individual home level.

In addition, we employ sophisticated resale pricing management systems that are designed to allow us to optimize sell-

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through and margin using real-time, local market demand information, including down to an individual home level.

We believe that the quality and scale of information we utilize in our inventory management decisions and our ability to manage these decisions across a scaled, diversified portfolio provides us with a structural advantage over individual sellers or agents in the traditional home selling process.

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This further limits the exposure of our inventory portfolio to macro market changes.

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Low Cost Transaction Platform

Efficient Digital Platform

We continue to invest in having an agile, low-cost platform, which allows us to provide more competitive offers to home sellers and adapt to changes in macro conditions.

Each component of our real estate business and transaction experience has been purpose-built to delight our customers through a streamlined, flexible and vertically-integrated platform.

We have reimagined the traditionally inefficient and labor-intensive processes required to purchase, repair, and resell each home.

With this in mind, we have invested in developing technology that enables virtualization, centralization, and automation in order to reduce cost, increase speed and improve quality of execution.

Our proprietary construction management technology enables us to drive efficiencies across all home servicing functions, tying together pre-acquisition assessments, pricing, repair scoping, centralized back-office operations, and renovation project management.

Our systems and processes facilitate the centralization of certain processes that previously required local labor, which provides staffing flexibility, cost economies, training and quality enhancements, and faster turnaround times, all of which result in a superior customer experience.

One example is our virtual home assessment capability for our lowest risk homes, where home sellers are able to take our operators on a virtual, guided tour of their home.

Our centralized teams then assess home conditions, leveraging a combination of industry best practices and big data.

Each component of our real estate business and transaction experience has been purpose-built to delight our customers through a streamlined, digital-first, flexible, and vertically-integrated platform.

We have reimagined the traditionally inefficient and labor-intensive processes required to purchase, repair, and resell a home, and we have designed our technology and processes to do so at scale.

With this in mind, we have invested in developing technology that enables virtualization, centralization, and automation to reduce cost, increase speed and improve quality of execution.

One example is our virtual home assessment capability for our lowest risk homes, where home sellers are able to take our operators on a virtual, guided tour of their home, both interior and exterior.

Our centralized teams then assess home condition and home features, and compare the subject home to nearby recently sold homes.

Leveraging a combination of industry best practices and big data, we can fully underwrite these lower risk homes via centralized teams in order to provide sellers fast and frictionless final offers.

This centralization has also enabled us to shift an increasing amount of back-office work to our offshore teams, which we believe will help deliver structural cost improvements over time.

We have also established a network of more than 1,000 trade partners and local service providers that use our proprietary technology to complete home repairs and maintenance.

We have also established a network of approximately 600 trade partners and local service providers that use our proprietary technology to complete home repairs and maintenance.

By leveraging our technology platform and directly interfacing with our trade partners, we reduce delays, eliminate waste, and improve quality of repairs while capturing data at every step to continuously improve the system.

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In addition, we have designed our home inventory management processes and home access technology to ensure our homes are regularly cleaned, well-maintained and safe to enable our on-demand, self-tour experience.

We receive regular home condition status updates from our trade partners and local service provider network who are in our homes multiple times per month.

This feedback enables rapid response in the event of condition defects that would otherwise persist unaddressed.

Quickly fixing potential quality issues helps ensure listed inventory remains in the necessary condition to maximize probability of resale.

Strategic Growth Priorities

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We are focused on continued growth in our existing markets — greater scale improves awareness, trust and adoption, operational cost efficiencies, and pricing competitiveness from more data.

Across all of our markets, we estimate that less than 10% of sellers received an offer from Opendoor and either sold their home to us or subsequently listed their home on the MLS within 60 days.

This low penetration gives us a significant runway for growth.

We have historically demonstrated our ability to capture over 4% market share in multiple markets, with our oldest market cohorts

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showing deeper market penetration.

As our newer markets mature, we believe we have significant runway for growth.

We will continue to expand our customer base through partnerships and marketing campaigns that increase awareness and engage customers early in their home selling and buying research.

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We have honed our market launch playbook by centralizing many of our core pricing, operations and customer service functions, enabling us to efficiently launch new markets with limited in-market physical presence.

Our largely centralized and scalable framework for new market entry enabled us to rapidly grow the number of markets we served in 2021 and 2022.

Furthermore, decision making for each home is informed by centralized, robust, data-driven playbooks that allow us to drive consistency across our markets and reach profitability in new markets more quickly.

Expand product and service offerings.

Our north star is to build the best end-to-end managed marketplace for every home buyer and seller.

We are focused on leveraging both our 1P and 3P product offerings to refine our best-in-class seller experience, expand the options available to sellers in our marketplace, invest in enhancing the buyer experience and continue to integrate the seller and buyer journey.

Over time, we plan to launch additional services that are adjacent to the core real estate transaction, bringing us closer to our vision for a digital one-stop-shop that powers all transactions.

Our largely centralized and scalable framework for new market entry enabled us to rapidly grow the number of markets we served in 2021 and the first half of 2022.

Furthermo re, decision making for each home is informed by centralized, robust, data-driven playbooks that allow us to drive consistency across our markets and reach profitability in new markets more quickly.

Expand product offerings.

Our north star is to build the best end-to-end digital experience for every home seller and buyer.

We are focused on continuing to refine our best-in-class seller experience, drive additional scale and efficiencies, expand the options available to sellers to best suit their specific needs, invest in enhancing the buyer experience, and continue to integrate the seller and buyer journey.

Over time, we plan to launch additional products related to real estate transactions and ancillary services.

We utilize a diversified, multichannel approach in marketing, with a focus on efficient growth.

In addition to earned media and online real estate partnerships with leading industry brands, we leverage a diverse range of channels and platforms

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within paid advertising, including paid online channels, direct mail, television, radio, and outdoor advertising.

In addition to earned media and online real estate partnerships with leading industry brands, we leverage a diverse range of channels and platforms within paid advertising, including paid online channels, direct mail, television, radio, social media, and outdoor advertising.

As our market footprint has expanded, we are focused on our investment in broad reach and national channels such as television and sponsorships, to efficiently drive awareness and build trust with consumers in a new category.

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As more consumers start their home journey with Opendoor, we expect this prospective customer base to continue to expand over time.

housing market is highly competitive and fragmented, with over five million residential real estate transactions per year.

We view our primary competition as the 99% of transactions that are done offline.

housing market is highly fragmented, with over four million residential real estate transactions per year.

We view our primary competition as the approximately 99% of transactions that are done offline.

As such, we compete directly with traditional, offline real estate brokers and agents.

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Our Values and People

Our values reflect how we will deliver on our goal to build a once in a generation company and include a focus on the customer, a culture of frugality, continuous invention, and ruthless execution against results:

Our values reflect how we will deliver on our goal to build a once in a generation company and include a focus on the customer, a culture of efficiency, continuous invention, and ruthless execution against results:

• Start and end with the customer.

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We assume good intentions and treat feedback as a gift.

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• 1% Better Every Day.

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The principal purposes of our equity incentive plans are to attract, retain, and motivate selected employees, consultants, and directors through the granting of stock-based compensation awards.

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Our business is driven by data and technology at all stages of the home buying and selling process.

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We operate in highly regulated businesses through a number of different channels across the United States.

As a result, we are currently subject to a variety of, and may in the future become subject to additional, federal, state and local statutes and regulations in various jurisdictions (as well as judicial and administrative decisions and state common law), which are subject to change at any time, including laws regarding the real estate and mortgage industries, settlement services, mobile and internet based businesses and other businesses that rely on advertising, as well as data privacy, consumer protection, and employment laws.

As a result, we are currently subject to a variety of, and may in the future become subject to additional, federal, state and local statutes and regulations in various jurisdictions (as well as judicial and administrative decisions and state common law), which are subject to change at any time, including laws regarding the real estate industry, settlement services, mobile and internet based businesses and other businesses that rely on advertising, as well as data privacy, consumer protection, and employment laws.

In particular, the advertising and sale of homes is highly regulated by states in which we do business, as well as the U.S.

federal government.

Regulatory bodies include the Consumer Financial Protection Bureau (“CFPB”), the Federal Trade Commission (“FTC”), the Department of Justice (“DOJ”), the Department of Housing and Urban Development (“HUD”), and various state licensing authorities, consumer protection agencies, financial regulatory agencies and insurance agencies.

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various state licensing authorities, consumer protection agencies, financial regulatory agencies and insurance agencies.

We are subject to compliance audits of our operations by many of these authorities.

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Additionally, laws, regulations, and standards covering marketing and advertising activities conducted by telephone, email, mobile devices, and the internet, may be applicable to our business, such as the Telephone Consumer Protection Act (“TCPA”), the Telemarketing Sales Rule, the CAN-SPAM Act, and similar state consumer protection laws.

Through our various subsidiaries, we also buy and sell homes, provide real estate brokerage, title insurance and settlement services, and provide other product offerings, which results in us receiving or facilitating transmission of personally identifiable information.

This information is increasingly subject to legislation and regulation in the United States.

These laws and regulations are generally intended to protect the privacy and security of personal information, including customer Social Security numbers and credit card information that is collected, processed and transmitted.

These laws also can restrict our use of this personal information for other commercial purposes.

In order to provide the broad range of products and services that we offer customers, certain of our subsidiaries maintain real estate brokerage, title insurance and escrow, property and casualty insurance, and general contractor licenses, and we may in the future apply for additional licenses as our business grows and develops.

These entities are subject to stringent state and federal laws and regulations, including, but not limited to, the Real Estate Settlement Procedures Act (“RESPA”) and those administered by applicable state departments of real estate, banking, insurance and consumer services.

These laws also can restrict our use of this personal information for other commercial purposes, including advertising.

For a discussion of the various risks we face with respect to the collection and processing of personal information, see “Item 1A.

Risk Factors — Risks Related to Our Intellectual Property and Technology .

To provide the broad range of products and services that we offer customers, certain of our subsidiaries maintain real estate brokerage, title insurance and escrow, and general contractor licenses, and we may in the future apply for additional licenses as our business grows and develops.

These entities are also subject to the scrutiny of state and federal government agencies as licensed businesses as noted above.

As of December 31, 2023:

OPENDOOR TECHNOLOGIES INC.

• Opendoor Brokerage LLC, Opendoor Brokerage Inc., and OD Homes Brokerage Inc.

(formerly known as Open Listings Co.), collectively, hold real estate brokerage licenses in all our markets and certain other states.

• Opendoor Brokerage LLC and Opendoor Brokerage Inc., collectively, hold real estate brokerage licenses in all our markets and certain other states.

• OS National LLC, and its subsidiaries, OSN Texas LLC and OSN Alabama LLC, are licensed as title agents in 27 states.

In addition, OS National LLC, and its subsidiary, OSN Escrow, are licensed as escrow agents in seven states and OS National LLC is authorized to conduct the business of title insurance in five additional states that do not require entity and/or individual licensing.

• Opendoor Home Loans LLC holds mortgage banking/lending licenses in five states.

• Digital Opendoor Insurance Services LLC holds insurance producer licenses for property and casualty lines in nine states.

• Open Exchange Brokerage LLC, holds real estate brokerage licenses in 18 states.

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At our Investor Relations website, investor.opendoor.com, we make available, free of charge, a variety of information for investors, including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, proxy statements and other information, as soon as reasonably practicable after we electronically file that material with, or furnish it to, the Securities and Exchange Commission (“SEC”).

We also use the Investor Relations page of our website for purposes of compliance with Regulation FD and as a routine channel for distribution of important information, including blogs, news releases, analyst presentations, financial information and corporate governance practices.

We also use the Investor Relations page of our website for purposes of compliance with Regulation FD and as a

OPENDOOR TECHNOLOGIES INC.

routine channel for distribution of important information, including blogs, news releases, analyst presentations, financial information and corporate governance practices.

The information found on our website is not part of this or any other report we file with, or furnish to, the SEC.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business