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| | | | 126 | | | |
| | | | 126 | | | |
| | | | F-1 | | | |
| | | | F-34 | | |
(in thousands, except for share and per share amounts)
|
| | | | | | |
Shares transferred at Closing(1)
|
| | | | 500,000,000 | | |
Value per share(2)
|
| | | | 10.00 | | |
Total Share Consideration
|
| | | $ | 5,000,000 | | |
| | |
# New Entity Shares
|
| |
%
|
| ||||||
Opendoor stockholders(1)
|
| | | | 503,980,000 | | | | | | 82.4% | | |
SCH’s public shareholders
|
| | | | 41,387,632 | | | | | | 6.8% | | |
Sponsor & related parties(2)
|
| | | | 26,375,000 | | | | | | 4.3% | | |
Third Party PIPE Investors
|
| | | | 40,000,000 | | | | | | 6.5% | | |
Pro Forma Common Stock at Closing
|
| | | | 611,742,632 | | | | | | 100.0% | | |
| | |
Opendoor
(Historical) |
| |
Social Capital
(Historical)(1) |
| |
Transaction
Accounting Adjustments |
| | | | | | | |
Pro Forma
Combined |
| ||||||||||||
Revenue
|
| | | | 2,583,121 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,583,121 | | |
Cost of revenue
|
| | | | 2,363,324 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,363,324 | | |
Gross profit
|
| | | | 219,797 | | | | | | — | | | | | | — | | | | | | | | | | | | 219,797 | | |
Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Formation and operating costs
|
| | | | — | | | | | | (6,363) | | | | | | 5,849 | | | | |
|
AA
|
| | | | | (514) | | |
Sales, marketing and operations
|
| | | | (194,721) | | | | | | — | | | | | | — | | | | | | | | | | | | (194,721) | | |
General and administrative
|
| | | | (152,769) | | | | | | — | | | | | | — | | | | | | | | | | | | (152,769) | | |
Technology and development
|
| | | | (58,172) | | | | | | — | | | | | | — | | | | | | | | | | | | (58,172) | | |
Total operating costs and expenses
|
| | | | (405,662) | | | | | | (6,363) | | | | | | 5,849 | | | | | | | | | | | | (406,176) | | |
Net operating loss
|
| | | | (185,865) | | | | | | (6,363) | | | | | | 5,849 | | | | | | | | | | | | (186,379) | | |
Derivative and warrant fair value adjustment
|
| | | | (25,941) | | | | | | — | | | | | | — | | | | | | | | | | | | (25,941) | | |
Loss on extinguishment on debt
|
| | | | (11,356) | | | | | | — | | | | | | — | | | | | | | | | | | | (11,356) | | |
Interest expense
|
| | | | (67,806) | | | | | | — | | | | | | 7,837 | | | | |
|
BB
|
| | | | | (59,969) | | |
Interest income
|
| | | | — | | | | | | 42 | | | | | | (42) | | | | |
|
CC
|
| | | | | — | | |
Other income, net
|
| | | | 4,271 | | | | | | — | | | | | | — | | | | | | | | | | | | 4,271 | | |
Loss before income taxes
|
| | | | (286,697) | | | | | | (6,321) | | | | | | 13,644 | | | | | | | | | | | | (279,374) | | |
Income tax expense
|
| | | | (63) | | | | | | — | | | | | | — | | | | |
|
DD
|
| | | | | (63) | | |
Net loss
|
| | | | (286,760) | | | | | | (6,321) | | | | | | 13,644 | | | | | | | | | | | | (279,437) | | |
Less net income attributable noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Net loss
|
| | | | (286,760) | | | | | | (6,321) | | | | | | 13,644 | | | | | | | | | | | | (279,437) | | |
Weighted average shares outstanding of common stock — basic
|
| | | | 109,301 | | | | | | 10,112 | | | | | | | | | | | | | | | | | | 540,715 | | |
Weighted average shares outstanding of common stock — diluted
|
| | | | 109,301 | | | | | | 10,112 | | | | | | | | | | | | | | | | | | 540,715 | | |
Basic net income (loss) per share
|
| | | $ | (2.62) | | | | | $ | (0.63) | | | | | | | | | | | | | | | | | $ | (0.52) | | |
Diluted net income (loss) per share
|
| | | $ | (2.62) | | | | | $ | (0.63) | | | | | | | | | | | | | | | | | $ | (0.52) | | |
(in thousands, except per share data)
|
| |
For the Year ended
December 31, 2020 |
| |||
Pro forma net loss
|
| | | | 279,437 | | |
Weighted average shares outstanding of common stock(1)
|
| | | | 540,715 | | |
Net loss per share (Basic and Diluted) attributable to common stockholders(1)(2)
|
| | | $ | (0.52) | | |
Location
|
| |
Purpose
|
| |
Approximate
Square Feet |
| |
Principal Lease
Expiration Dates |
| ||||||
Tempe, Arizona
|
| |
General Office Space, Corporate Mailing
Address |
| | | | 100,807 | | | | | | 2030 | | |
San Francisco,
California |
| | General Office Space | | | | | 80,088 | | | | | | 2021 | | |
Duluth, Georgia
|
| | General Office Space | | | | | 71,085 | | | | | | 2029 | | |
Statement of
Operations Data |
| |
For The Year
Ended December 31, 2020 |
| |
For The Year
Ended December 31, 2019 |
| |
For The Year
Ended December 31, 2018 |
| |
For The Year
Ended December 31, 2017 |
| |
For The Year
Ended December 31, 2016 |
| | |||||||||||||||||
Revenue:
|
| | | | 2,583,121 | | | | | | 4,740,583 | | | | | | 1,838,066 | | | | | | 711,066 | | | | | | 338,742 | | | | ||
Cost of revenue
|
| | | | 2,363,324 | | | | | | 4,439,333 | | | | | | 1,704,638 | | | | | | 644,719 | | | | | | 321,934 | | | | ||
Gross profit
|
| | | | 219,797 | | | | | | 301,250 | | | | | | 133,428 | | | | | | 66,347 | | | | | | 16,808 | | | | ||
Operating expenses
|
| | | | (405,662) | | | | | | (549,084) | | | | | | (297,100) | | | | | | (127,989) | | | | | | (50,214) | | | | ||
Net operating loss
|
| | | | (185,865) | | | | | | (247,834) | | | | | | (163,672) | | | | | | (61,642) | | | | | | (33,406) | | | | ||
Interest expense
|
| | | | (67,806) | | | | | | (109,728) | | | | | | (60,456) | | | | | | (23,342) | | | | | | (10,792) | | | | ||
Other income / (expense) – Net
|
| | | | (33,026) | | | | | | 18,644 | | | | | | (15,424) | | | | | | 217 | | | | | | (2,094) | | | | ||
Loss before income taxes
|
| | | | (286,697) | | | | | | (338,918) | | | | | | (239,552) | | | | | | (84,767) | | | | | | (46,292) | | | | ||
Income tax expense
|
| | | | (63) | | | | | | (252) | | | | | | (377) | | | | | | — | | | | | | — | | | | ||
Net loss
|
| | | | (286,760) | | | | | | (339,170) | | | | | | (239,929) | | | | | | (84,767) | | | | | | (46,292) | | | | ||
Less net income attributable to noncontrolling interests
|
| | | | — | | | | | | 1,847 | | | | | | 1,362 | | | | | | 62 | | | | | | — | | | | ||
Net loss attributable to Opendoor Labs, Inc
|
| | | | (286,760) | | | | | | (341,017) | | | | | | (241,291) | | | | | | (84,829) | | | | | | (46,292) | | | | ||
Weighted average shares outstanding basic
|
| | | | 109,301 | | | | | | 79,977 | | | | | | 78,564 | | | | | | 64,588 | | | | | | N/M(1) | | | | | |
Weighted average shares outstanding diluted
|
| | | | 109,301 | | | | | | 79,977 | | | | | | 78,564 | | | | | | 64,588 | | | | | | N/M(1) | | | | | |
Basic net loss per ordinary share
|
| | | $ | (2.62) | | | | | $ | (4.26) | | | | | $ | (3.16) | | | | | $ | (1.31) | | | | | | N/M(1) | | | | | |
Diluted net loss per ordinary share
|
| | | $ | (2.62) | | | | | $ | (4.37) | | | | | $ | (3.16) | | | | | $ | (1.31) | | | | | | N/M(1) | | | | | |
Net cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Operating activities . . .
|
| | | $ | 681,911 | | | | | $ | (272,050) | | | | | $ | (1,179,637) | | | | | $ | (218,553) | | | | | $ | (197,359) | | | | ||
Investing activities . . . .
|
| | | | (21,866) | | | | | | (95,078) | | | | | | (7,432) | | | | | | (29,942) | | | | | | (1,026) | | | | ||
Financing activities . . .
|
| | | | 160.661 | | | | | | 646,179 | | | | | | 1,496,494 | | | | | | 161,177 | | | | | | 334,255 | | | |
Balance Sheet Data
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |
December 31,
2016 |
| |||||||||||||||
Total assets
|
| | | $ | 2,175,582 | | | | | $ | 2,231,684 | | | | | $ | 1,842,295 | | | | | | 514,406 | | | | | | 423,249 | | |
Total current liabilities.
|
| | | | 393,389 | | | | | | 1,126,382 | | | | | | 1,068,191 | | | | | | 224,755 | | | | | | 113,999 | | |
Total liabilities
|
| | | | 575,575 | | | | | | 1,583,285 | | | | | | 1,191,797 | | | | | | 330,960 | | | | | | 164,368 | | |
Working capital
|
| | | | 1,659,722 | | | | | | 961,262 | | | | | | 739,980 | | | | | | 285,944 | | | | | | 307,395 | | |
Total stockholders’ equity (deficit)
|
| | | | 1,600,007 | | | | | | (733,103) | | | | | | (413,366) | | | | | | 320,786 | | | | | | 315,855 | | |
Total temporary Equity
|
| | | | — | | | | | | 1,381,502 | | | | | | 1,063,864 | | | | | | (137,340) | | | | | | (56,974) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
(in whole numbers)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Number of markets (at period end)
|
| | | | 21 | | | | | | 21 | | | | | | 18 | | |
| | |
Year Ended December 31,
|
| | | |||||||||||||||||||
(in thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| | | |||||||||||||
Gross profit (GAAP)
|
| | | $ | 219,797 | | | | | $ | 301,250 | | | | | $ | 133,428 | | | | | ||||
Gross Margin
|
| | | | 8.5% | | | | | | 6.4% | | | | | | 7.3% | | | | | ||||
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | ||
Inventory impairment – Current Period(1)
|
| | | | 119 | | | | | | 10,363 | | | | | | 15,103 | | | | | ||||
Inventory impairment – Prior Periods(2)
|
| | | | (10,544) | | | | | | (14,941) | | | | | | (2,419) | | | | | ||||
Restructuring in cost of revenue(3)
|
| | | | 1,902 | | | | | | — | | | | | | — | | | | | ||||
Adjusted Gross Profit
|
| | | | 211,274 | | | | | | 296,672 | | | | | | 146,112 | | | | | ||||
Adjusted Gross Margin
|
| | | | 8.2% | | | | | | 6.3% | | | | | | 7.9% | | | | | ||||
Adjustments: | | | | | | | | | | | | | | | | | | | | | | ||||
Direct selling costs(4)
|
| | | | (72,928) | | | | | | (149,221) | | | | | | (62,396) | | | | | ||||
Holding costs on sales – Current Period(5)(6)
|
| | | | (16,787) | | | | | | (42,837) | | | | | | (15,881) | | | | | ||||
Holding costs on sales – Prior Periods(5)(7)
|
| | | | (11,436) | | | | | | (12,561) | | | | | | (3,192) | | | | | ||||
Contribution Profit
|
| | | | 110,123 | | | | | | 92,053 | | | | | | 64,643 | | | | | ||||
Contribution Margin
|
| | | | 4.3% | | | | | | 1.9% | | | | | | 3.5% | | | | | ||||
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on homes sold – Current Period(8)(9)
|
| | | | (17,946) | | | | | | (51,388) | | | | | | (18,309) | | | | | ||||
Interest on homes sold – Prior Periods(8)(10)
|
| | | | (10,488) | | | | | | (13,179) | | | | | | (3,091) | | | | | ||||
Contribution Profit After
Interest |
| | | | 81,689 | | | | | | 27,486 | | | | | | 43,243 | | | | | ||||
Contribution Margin After Interest
|
| | | | 3.2% | | | | | | 0.6% | | | | | | 2.4% | | | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
(in thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net loss (GAAP)
|
| | | $ | (286,760) | | | | | $ | (339,170) | | | | | $ | (239,929) | | |
Adjustments: | | | | | | | | | | | | | | | | | | | |
Stock-based compensation
|
| | | | 38,005 | | | | | | 13,196 | | | | | | 14,966 | | |
Derivative and warrant fair value adjustment(1)
|
| | | | 25,940 | | | | | | (6,243) | | | | | | 18,022 | | |
Intangibles amortization expense(2)
|
| | | | 3,714 | | | | | | 2,945 | | | | | | 613 | | |
Inventory impairment – Current Period(3)
|
| | | | 119 | | | | | | 10,363 | | | | | | 15,103 | | |
Inventory impairment — Prior Periods(4)
|
| | | | (10,544) | | | | | | (14,941) | | | | | | (2,419) | | |
Restructuring(5)
|
| | | | 30,752 | | | | | | 3,428 | | | | | | — | | |
Convertible note PIK interest, amortization and derivative fair value adjustment(6)
|
| | | | 7,838 | | | | | | 4,102 | | | | | | 478 | | |
Loss on extinguishment on debt
|
| | | | 11,356 | | | | | | — | | | | | | — | | |
Other(7)
|
| | | | 4,515 | | | | | | (498) | | | | | | 1,271 | | |
Adjusted Net Loss
|
| | | | (175,065) | | | | | | (326,818) | | | | | | (191,895) | | |
Adjustments: | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization, excluding intangibles amortization expense
|
| | | | 21,755 | | | | | | 15,043 | | | | | | 4,572 | | |
Property financing(8)
|
| | | | 37,571 | | | | | | 84,314 | | | | | | 47,725 | | |
Other interest expense(9)
|
| | | | 22,398 | | | | | | 21,312 | | | | | | 12,253 | | |
Interest income(10)
|
| | | | (4,732) | | | | | | (11,999) | | | | | | (3,869) | | |
Income tax expense
|
| | | | 63 | | | | | | 252 | | | | | | 377 | | |
Adjusted EBITDA
|
| | | | (98,010) | | | | | | (217,896) | | | | | | (130,837) | | |
Adjusted EBITDA Margin
|
| | | | (3.8)% | | | | | | (4.6)% | | | | | | (7.1)% | | |
| | |
Year Ended December 31,
|
| |
Change in
|
| |||||||||||||||
(in thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
$
|
| |
%
|
| |||||||||
Revenue
|
| | | $ | 2,583,121 | | | | | $ | 4,740,583 | | | | | $ | (2,157,462) | | | |
(46)%
|
|
Cost of revenue
|
| | | | 2,363,324 | | | | | | 4,439,333 | | | | | | (2,076,009) | | | |
(47)%
|
|
Gross profit
|
| | | | 219,797 | | | | | | 301,250 | | | | | | (81,453) | | | |
(27)%
|
|
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | |
Sales, marketing and operations
|
| | | | 194,721 | | | | | | 384,416 | | | | | | (189,695) | | | |
(49)%
|
|
General and administrative
|
| | | | 152,769 | | | | | | 113,446 | | | | | | 39,323 | | | |
35%
|
|
Technology and development
|
| | | | 58,172 | | | | | | 51,222 | | | | | | 6,950 | | | |
14%
|
|
Total operating expenses
|
| | | | 405,662 | | | | | | 549,084 | | | | | | (143,422) | | | |
(26)%
|
|
Net operating loss
|
| | | | (185,865) | | | | | | (247,834) | | | | | | 61,969 | | | |
(25)%
|
|
Derivative and warrant fair value adjustment
|
| | | | (25,941) | | | | | | 6,243 | | | | | | (32,184) | | | |
(516)%
|
|
Loss on extinguishment of debt
|
| | | | (11,356) | | | | | | — | | | | | | (11,356) | | | |
N/M
|
|
Interest expense
|
| | | | (67,806) | | | | | | (109,728) | | | | | | 41,922 | | | |
(38)%
|
|
Other income-net
|
| | | | 4,271 | | | | | | 12,401 | | | | | | (8,130) | | | |
(66)%
|
|
Loss before income taxes
|
| | | | (286,697) | | | | | | (338,918) | | | | | | 52,221 | | | |
(15)%
|
|
Income tax expense
|
| | | | (63) | | | | | | (252) | | | | | | 189 | | | |
(75)%
|
|
Net loss
|
| | | | (286,760) | | | | | | (339,170) | | | | | | 52,410 | | | |
(15)%
|
|
Less net income attributable to noncontrolling interest
|
| | | | — | | | | | | 1,847 | | | | | | (1,847) | | | |
(100)%
|
|
Net loss attributable to Opendoor Technologies Inc.
|
| | | $ | (286,760) | | | | | $ | (341,017) | | | | | $ | 54,257 | | | |
(16)%
|
|
| | |
Year Ended December 31,
|
| |
Change in
|
| |||||||||||||||
(in thousands, except percentages)
|
| |
2019
|
| |
2018
|
| |
$
|
| |
%
|
| |||||||||
Revenue
|
| | | $ | 4,740,583 | | | | | $ | 1,838,066 | | | | | $ | 2,902,517 | | | |
158%
|
|
Cost of revenue
|
| | | | 4,439,333 | | | | | | 1,704,638 | | | | | | 2,734,695 | |