0001801169-22-000041 | 10-Q | XBRL Viewer | Opendoor Technologies INC

$ 2,312

$ 1,731

Mortgage loans held for sale pledged under agreements to repurchase

444

847

Marketable securities

464

484

Escrow receivable

Other current assets ($4 and $4 carried at fair value)

4,664

6,096

126

Total current assets

8,079

9,340

PROPERTY AND EQUIPMENT – Net

RIGHT OF USE ASSETS

GOODWILL

INTANGIBLES – Net

OTHER ASSETS ($5 and $5 carried at fair value)

TOTAL ASSETS

^[1]

8,272

9,506

CURRENT LIABILITIES:

Accounts payable and other accrued liabilities

132

137

Non-recourse asset-backed debt - current portion

2,660

4,240

Other secured borrowings

Interest payable

Lease liabilities - current portion

Total current liabilities

2,814

4,400

NON-RECOURSE ASSET-BACKED DEBT – Net of current portion

2,113

1,862

CONVERTIBLE SENIOR NOTES

955

954

LEASE LIABILITIES – Net of current portion

Total liabilities

^[2]

5,925

7,258

Commitments and contingencies

SHAREHOLDERS’ EQUITY:

Common stock, $0.0001 par value; 3,000,000,000 shares authorized; 622,918,512 and 616,026,565 shares issued, respectively; 622,918,512 and 616,026,565 shares outstanding, respectively

Additional paid-in capital

4,028

3,955

Accumulated deficit

(1,677)

(1,705)

Accumulated other comprehensive (loss) income

(4)

(2)

Total shareholders’ equity

2,347

2,248

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$ 8,272

$ 9,506

[1]

The Company’s consolidated assets at March 31, 2022 and December 31, 2021 include the following assets of certain variable interest entities (“VIEs”) that can only be used to settle the liabilities of those VIEs: Cash and cash equivalents, $17 and $9; Restricted cash, $435 and $838; Real estate inventory, net, $4,621 and $6,046; Escrow receivable, $55 and $78; Other current assets, $59 and $35; and Total assets of $5,187 and $7,006, respectively.

[2]

The Company’s consolidated liabilities at March 31, 2022 and December 31, 2021 include the following liabilities for which the VIE creditors do not have recourse to Opendoor: Accounts payable and other accrued liabilities, $40 and $59; Interest payable, $6 and $11; Current portion of non-recourse asset-backed debt, $2,660 and $4,240; Non-recourse asset-backed debt, net of current portion, $2,113 and $1,862; and Total liabilities, $4,819 and $6,172, respectively.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions

Mar. 31, 2022

Dec. 31, 2021

Statement of Financial Position [Abstract]

Other current assets, carried at fair value

$ 4

Other assets, carried at fair value

$ 5

Common stock, par value (in dollars per share)

$ 0.0001

Common stock authorized (in shares)

3,000,000,000

Common stock issued (in dollars per share)

622,918,512

616,026,565

Common stock outstanding (in dollars per share)

622,918,512

616,026,565

$ 2,312

$ 1,731

444

847

Other current assets ($4 and $4 carried at fair value)

4,664

6,096

Escrow receivable

126

Assets

^[1]

8,272

9,506

Accounts payable and other accrued liabilities

132

137

Interest payable

Non-recourse asset-backed debt - current portion

2,660

4,240

NON-RECOURSE ASSET-BACKED DEBT – Net of current portion

2,113

1,862

Liabilities

^[2]

5,925

7,258

Variable Interest Entity, Primary Beneficiary

435

838

Other current assets ($4 and $4 carried at fair value)

4,621

6,046

Escrow receivable

Assets

5,187

7,006

Accounts payable and other accrued liabilities

Interest payable

Non-recourse asset-backed debt - current portion

2,660

4,240

NON-RECOURSE ASSET-BACKED DEBT – Net of current portion

2,113

1,862

Liabilities

$ 4,819

$ 6,172

[1]

[2]

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
REVENUE	$ 5,151,000	$ 747,000
COST OF REVENUE	4,616,000	650,000
GROSS PROFIT	535,000	97,000
OPERATING EXPENSES:
Sales, marketing and operations	276,000	69,000
General and administrative	101,000	222,000
Technology and development	40,000	51,000
Total operating expenses	417,000	342,000
INCOME (LOSS) FROM OPERATIONS	118,000	(245,000)
WARRANT FAIR VALUE ADJUSTMENT	0	15,000
INTEREST EXPENSE	(68,000)	(11,000)
OTHER (LOSS) INCOME – Net	(22,000)	1,000
INCOME (LOSS) BEFORE INCOME TAXES	28,000	(270,000)
INCOME TAX EXPENSE	(300)	(100)
NET INCOME (LOSS)	$ 28,000	$ (270,000)
Earnings Per Share [Abstract]
Basic (in dollars per share)	$ 0.05	$ (0.48)
Diluted (in dollars per share)	$ 0.04	$ (0.48)
Weighted-average shares outstanding:
Basic (in shares)	619,137,000	565,381,000
Diluted (in shares)	640,785,000	565,381,000

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Other Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ 28	$ (270)
OTHER COMPREHENSIVE (LOSS) INCOME:
Unrealized (loss) gain on marketable securities	(2)	0
COMPREHENSIVE INCOME (LOSS)	$ 26	$ (270)

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Millions	Total	Restricted Shares	RSUs	Common Stock	Common Stock Restricted Shares	Common Stock RSUs	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income
Beginning balance (in shares) at Dec. 31, 2020				540,714,692
Beginning balance at Dec. 31, 2020	$ 1,553			$ 0			$ 2,596	$ (1,043)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with the February 2021 Offering (in shares)				32,817,421
Issuance of common stock in connection with the February 2021 Offering	857						857
Vesting of restricted stock and restricted stock units (in shares)					331,227	11,736,872
Vesting of restricted stock and restricted stock units		$ 0	$ 0
Exercise of stock options (in shares)				91,517
Exercise of stock options	0
Stock-based compensation	244						244
NET INCOME (LOSS)	(270)							(270)
Ending balance (in shares) at Mar. 31, 2021				585,691,729
Ending balance at Mar. 31, 2021	2,384			$ 0			3,697	(1,313)	0
Beginning balance (in shares) at Dec. 31, 2021				616,026,565
Beginning balance at Dec. 31, 2021	$ 2,248			$ 0			3,955	(1,705)	(2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of restricted stock and restricted stock units (in shares)					72,918	4,923,229
Vesting of restricted stock and restricted stock units		$ 0	$ 0
Exercise of stock options (in shares)	1,896,000			1,895,800
Exercise of stock options	$ 2						2
Stock-based compensation	71						71
Other comprehensive loss	(2)								(2)
NET INCOME (LOSS)	28							28
Ending balance (in shares) at Mar. 31, 2022				622,918,512
Ending balance at Mar. 31, 2022	$ 2,347			$ 0			$ 4,028	$ (1,677)	$ (4)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	$ 28.0	$ (270.0)
Adjustments to reconcile net income (loss) to cash, cash equivalents, and restricted cash provided by (used in) operating activities:
Depreciation and amortization	18.0	10.0
Amortization of right of use asset	2.0	2.0
Stock-based compensation	67.0	239.0
Warrant fair value adjustment	0.0	15.0
Gain on settlement of lease liabilities	0.0	(5.2)
Inventory valuation adjustment	8.0	0.0
Changes in fair value of equity securities	22.0	0.0
Net fair value adjustments and gain (loss) on sale of mortgage loans held for sale	(1.0)	(1.0)
Origination of mortgage loans held for sale	(46.0)	(32.0)
Proceeds from sale and principal collections of mortgage loans held for sale	43.0	32.0
Changes in operating assets and liabilities:
Escrow receivable	26.0	(18.0)
Real estate inventory	1,416.0	(375.0)
Other assets	(28.0)	(8.0)
Accounts payable and other accrued liabilities	2.0	16.0
Interest payable	(5.0)	0.0
Lease liabilities	(2.0)	(10.0)
Net cash provided by (used in) operating activities	1,550.0	(405.0)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(10.0)	(4.0)
Purchase of marketable securities	(28.0)	(34.0)
Proceeds from sales, maturities, redemptions and paydowns of marketable securities	22.0	23.0
Purchase of non-marketable equity securities	(25.0)	(10.0)
Capital returns from non-marketable equity securities	3.0	0.0
Net cash used in investing activities	(38.0)	(25.0)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	2.0	0.0
Proceeds from the February 2021 Offering	0.0	886.0
Issuance cost of common stock	0.0	(29.0)
Proceeds from non-recourse asset-backed debt	2,292.0	673.0
Principal payments on non-recourse asset-backed debt	(3,622.0)	(423.0)
Proceeds from other secured borrowings	45.0	31.0
Principal payments on other secured borrowings	(41.0)	(31.0)
Payment of loan origination fees and debt issuance costs	(10.0)	0.0
Net cash (used in) provided by financing activities	(1,334.0)	1,107.0
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	178.0	677.0
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – Beginning of period	2,578.0	1,506.0
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – End of period	2,756.0	2,183.0
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION – Cash paid during the period for interest	68.0	9.0
DISCLOSURES OF NONCASH ACTIVITIES:
Stock based compensation capitalized to internally developed software	4.0	5.0
RECONCILIATION TO CONDENSED CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	2,312.0	2,040.0
Restricted cash	444.0	143.0
Cash, cash equivalents, and restricted cash	$ 2,756.0	$ 2,183.0

DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Description of Business

Opendoor Technologies Inc. (the “Company” and “Opendoor”) including its consolidated subsidiaries and certain variable interest entities (“VIEs”), is a leading digital platform for residential real estate. By leveraging software, data science, product design and operations, Opendoor has rebuilt the service model for real estate and has made buying and selling possible on a mobile device. The Company was incorporated in Delaware on December 30, 2013.

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to generally accepted accounting principles in the United States of America (“GAAP”). The condensed consolidated financial statements as of March 31, 2022 and December 31, 2021 and for the three month periods ended March 31, 2022 and 2021 include the accounts of Opendoor, its wholly owned subsidiaries and VIEs where the Company is the primary beneficiary. The accompanying unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements herein. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation.

The Company was formed through a business combination with Social Capital Hedosophia Holdings Corp. II (“SCH”), a Cayman Islands exempted company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Business Combination, pursuant to which Opendoor Labs Inc. became a wholly owned subsidiary of SCH and SCH changed its name from “Social Capital Hedosophia Holdings Corp. II” to “Opendoor Technologies Inc.”, was completed on December 18, 2020, and was accounted for as a reverse recapitalization, in accordance with GAAP.

The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“Annual Report”) filed on February 24, 2022.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ materially from such estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the fair value of common stock, share-based awards, warrants, and inventory valuation adjustment. Management believes that the estimates and judgments upon which they rely are reasonable based upon information available to them at the time that these estimates and judgments are made. To the extent that there are material differences between these estimates and actual results, the Company’s financial statements will be affected.

Significant Risks and Uncertainties

The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, the Company believes that changes in any of the following areas could have a significant negative effect on the Company in terms of its future financial position, results of operations or cash flows: public health crises, like the COVID-19 pandemic; its rates of revenue growth; its ability to manage inventory; engagement and usage of its products; the effectiveness of its investment of resources to pursue strategies; competition in its market; the stability of the residential real estate market; the impact of interest rate changes on demand and its costs; changes in technology, products, markets or services by the Company or its competitors; its ability to maintain or establish relationships with listings and data providers; its ability to obtain or maintain licenses and permits to support its current and future businesses; actual or anticipated changes to its products and services; changes in government regulation affecting its business; the outcomes of legal proceedings; natural disasters and catastrophic events; scaling and adaptation of existing technology and network infrastructure; its management of its growth; its ability to attract and

retain qualified employees and key personnel; its ability to successfully integrate and realize the benefits of its past or future strategic acquisitions or investments; the protection of customers’ information and other privacy concerns; the protection of its brand and intellectual property; and intellectual property infringement and other claims, among other things.

Concentrations of Credit Risk

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, investments in marketable securities, and mortgage loans held for sale pledged under agreements to repurchase (“MLHFS”). The Company places cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, in order to limit exposure of the Company’s investments.

Similarly, the Company’s credit risk on mortgage loans held for sale is mitigated due to having a large number of customers. Further, the Company’s credit risk on mortgage loans held for sale is mitigated by the fact that the Company typically sells mortgages on the secondary market within a relatively short period of time after which the Company’s exposure is limited to borrower defaults within the initial few months of the mortgage.

The Company’s significant accounting policies are discussed in “Part II – Item 8 – Financial Statements and Supplementary Data – Note 1. Description of Business and Accounting Policies” in the Annual Report. There have been no changes to these significant accounting policies for the three month period ended March 31, 2022, except as noted below.

Investments

The Company’s investments in marketable securities consist of debt securities classified as available-for-sale as well as marketable equity securities. The Company's available-for-sale debt securities are measured at fair value with unrealized gains and losses included in Accumulated other comprehensive income (loss) in shareholder’s equity and realized gains and losses included in Other income.

The Company’s strategic investments consists of a marketable equity security, which is publicly traded, and non-marketable equity securities, which are investments in privately held companies. Marketable equity securities have readily determinable fair values with changes in fair value recorded in Other income. Non-marketable equity securities and equity method investments do not have readily determinable fair values. These securities are accounted for under one of the following accounting methods:

•Equity method: This method is applied when the Company has the ability to exert significant influence over the investee. The securities are recorded at cost and adjusted for the Company’s share of the investee’s earnings or losses, less any dividends received and/or impairments.

•Measurement alternative: This method is followed for all remaining non-marketable equity securities. These securities are recorded at cost minus impairment, if any, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer.

All realized and unrealized gains and losses or the Company's share of the investee's earnings or losses, including impairment losses, are recognized in Other income. Any dividends on equity method investments are recognized as a reduction of the investment's carrying value. Non-marketable equity securities are reported in Other assets.

The Company assesses whether an impairment loss on its non-marketable equity securities has occurred due to declines in fair value or other market conditions. When the fair value of an equity method investment is less than its carrying value, the Company writes down the investment to fair value when the decline in value is considered to be other than temporary. When the fair value of an investment accounted for using the measurement alternative is less than its carrying value, the Company writes down the investment to its fair value, without the consideration of recovery. See “Note 4 — Cash, Cash Equivalents, and Investments” for further discussion.

Real Estate Inventory

Real estate inventory is carried at the lower of cost or net realizable value and the Company applies the specific identification method whereby each property constitutes the unit of account. Real estate inventory cost includes but is not limited to the property purchase price, acquisition costs and direct costs to renovate or repair the home, less inventory valuation

adjustments, if any. Work in progress inventory includes homes undergoing repairs and finished goods inventory includes homes that are listed for sale or under contract for sale. Real estate inventory is reviewed for valuation adjustments at least quarterly. If the carrying amount or basis is not expected to be recovered, an inventory valuation adjustment is recorded to cost of revenue and the related assets are adjusted to their net realizable value.

Impairment of Long-Lived Assets

Long-lived assets, such as property and equipment and definite-lived intangible assets, among other long-term assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment loss is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. The impairment loss recognized for the three months ended March 31, 2022 and 2021 is related to abandonment of property and equipment, impairment and abandonment of certain internally developed software projects, and sublease of certain right of use assets. The impairment loss recognized during the periods presented is as follows (in millions):


	Three Months Ended March 31,
	2022		2021
General and administrative	$	—	$	1
Technology and development	—		2
Total impairment loss	$	—	$	3

Stock-Based Compensation

Stock-based compensation awards consist of stock options, restricted stock units (“RSUs”), shares of restricted stock (“Restricted Shares”), and shares issued pursuant the 2020 Employee Stock Purchase Plan ("ESPP").

Stock Options

The Company has granted stock options with a service condition to vest, which is generally four years. The Company records stock-based compensation expense for service-based stock options on a straight-line basis over the requisite service period, which is generally the option’s vesting period. These amounts are reduced by forfeitures as they occur. The Company uses the Black-Scholes-Merton option-pricing model to determine the fair value as of the grant date for stock options.

RSUs

The Company has granted RSUs with a performance condition, based on a liquidity event, as defined by the share agreement, as well as a service condition to vest, which is generally four years. The Company determines the fair value of RSUs based on the valuation of the Company’s common stock as of the grant date. No compensation expense is recognized for performance-based awards until the liquidity event has occurred. Subsequent to the occurrence of a liquidity event, compensation expense is recognized to the extent the requisite service period has been completed. Compensation expense is recognized on an accelerated attribution basis over the requisite service period of the awards subject to the achievement of the liquidity event. After the Company became listed, the RSUs granted are generally only subject to a service condition to vest and typically vest over four years. Compensation expense is recognized on a straight-line basis subject to a floor of the vested number of shares for each award.

Market Condition RSUs

The Company has granted RSUs with a performance condition, based on a liquidity event, as defined by the share agreement, as well as a market condition to vest. Subject to the employee’s continued services to the Company, the market-based conditions are satisfied upon the Company’s achievement of certain share price milestones calculated based on 60-day volume weighted average.

For market-based RSUs, the Company determines the grant-date fair value utilizing Monte Carlo simulations, which incorporates various assumptions, including expected stock price volatility, contractual term, dividend yield, and stock price at grant date. The Company estimates the volatility of common stock on the date of grant based on the weighted-average historical stock price volatility of comparable publicly-traded companies. As the Company had no history of dividend payments and had not declared any prospective dividends, a 0% dividend yield was assumed.

For stock-based compensation, each market-based condition is treated as an accounting unit and expense is recognized over the requisite service period with respect to each unit and only if performance-based conditions are considered probable to be satisfied. The Company determines the requisite service period by comparing the derived service period to achieve the market-based condition and the explicit service-based period, if any, using the longer of the two service periods as the requisite service period.

Restricted Shares

The fair value of the Restricted Shares is equal to the estimated fair value of the Company’s common stock on the grant date. The Company recognizes compensation expense for the shares on a straight-line basis over the requisite service period of the awards. The fair value of these shares will be recognized into common stock and additional paid-in-capital as the shares vest.

ESPP

The Company recognizes stock-based compensation expense related to purchase rights granted pursuant to the 2020 ESPP on a straight-line basis over the offering period. The Company estimates the fair value of purchase rights granted under the ESPP using the Black-Scholes option-pricing model.

BUSINESS COMBINATIONS	3 Months Ended
BUSINESS COMBINATIONS	Mar. 31, 2022
Business Combinations [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATIONS On September 3, 2021, the Company acquired 100% of the outstanding equity of Services Labs, Inc., including its consolidated subsidiaries (“Pro.com”), in exchange for $22 million in cash consideration. The Company acquired Pro.com, a construction project platform, for its technology and talent. Acquired intangible assets consist of developed technology valued at $4 million which will be amortized over one year. Goodwill attributed to the Pro.com acquisition was $16 million. On November 3, 2021, the Company acquired the assets of RedDoor HQ Inc. (“RedDoor”) as part of a business combination in exchange for $15 million in cash consideration, of which $2 million is to be paid out one year following the date of closing. The Company acquired the processes, systems and talent of RedDoor, which previously operated an online mortgage brokerage platform. Acquired intangible assets consist of developed technology valued at $3 million, which will be amortized over one year. Goodwill attributed to the RedDoor acquisition was $13 million.

REAL ESTATE INVENTORY

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

REAL ESTATE INVENTORY

The following table presents the components of inventory, net of applicable inventory valuation adjustments, as of the dates presented (in millions):


	March 31, 2022		December 31, 2021
Work in progress	$	1,174	$	1,971
Finished goods:
Listed for sale	1,848		2,325
Under contract for sale	1,642		1,800
Total real estate inventory	$	4,664	$	6,096

As of March 31, 2022, the Company was in contract to purchase 8,066 homes for an aggregate purchase price of $3.2 billion.

CASH, CASH EQUIVALENTS, AND INVESTMENTS

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

CASH, CASH EQUIVALENTS, AND INVESTMENTS

The amortized cost, gross unrealized gains and losses, and fair value of cash, cash equivalents, and marketable securities as of March 31, 2022 and December 31, 2021, are as follows (in millions):


	March 31, 2022
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	91	$	—	$	—	$	91	$	91	$	—
Money market funds	1,920		—		—		1,920		1,920		—
Time deposit	301		—		—		301		301		—
Mutual fund	199		—		—		199		—		199
Corporate debt securities	191		—		(4)		187		—		187

Commercial paper	28		—		—		28		—		28
Equity securities	24		—		—		24		—		24
Certificates of deposit	19		—		—		19		—		19
Asset-backed securities	7		—		—		7		—		7


Total	$	2,780	$	—	$	(4)	$	2,776	$	2,312	$	464


	December 31, 2021
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	81	$	—	$	—	$	81	$	81	$	—
Money market funds	1,350		—		—		1,350		1,350		—
Time deposit	300		—		—		300		300		—
Corporate debt securities	208		—		(1)		207		—		207
Mutual fund	200		—		—		200		—		200
Equity securities	46		—		—		46		—		46
Commercial paper	15		—		—		15		—		15
Asset-backed securities	7		—		—		7		—		7
Certificates of deposit	5		—		—		5		—		5
Sovereign bonds	4		—		—		4		—		4


Total	$	2,216	$	—	$	(1)	$	2,215	$	1,731	$	484

During the three months ended March 31, 2022, the Company recognized $(22) million of losses in the condensed consolidated statements of operations related to equity securities still held as of March 31, 2022. During the three months ended March 31, 2021, the Company recognized no unrealized gains or losses in the condensed consolidated statements of operations related to equity securities still held as of March 31, 2021.

A summary of debt securities with unrealized losses aggregated by period of continuous unrealized loss is as follows (in millions):


	Less than 12 Months				12 Months or Greater				Total
March 31, 2022	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Money market funds	$	295	$	—	$	—	$	—	$	295	$	—
Corporate debt securities	186		(4)		—		—		186		(4)
Commercial paper	24		—		—		—		24		—
Certificates of deposit	16		—		—		—		16		—
Asset-backed securities	7		—		—		—		7		—

Total	$	528	$	(4)	$	—	$	—	$	528	$	(4)


	Less than 12 Months				12 Months or Greater				Total
December 31, 2021	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Money market funds	$	259	$	—	$	—	$	—	$	259	$	—
Corporate debt securities	207		(1)		—		—		207		(1)
Commercial paper	15		—		—		—		15		—
Asset-backed securities	7		—		—		—		7		—
Certificates of deposit	5		—		—		—		5		—
Sovereign bonds	4		—		—		—		4		—
Total	$	497	$	(1)	$	—	$	—	$	497	$	(1)

The scheduled contractual maturities of debt securities as of March 31, 2022 are as follows (in millions):


March 31, 2022	Fair Value		Within 1 Year		After 1 Year through 5 Years
Corporate debt securities	$	187	$	83	$	104
Commercial paper	28		28		—
Certificates of deposit	19		19		—
Asset-backed securities	7		7		—



Total	$	241	$	137	$	104

A summary of non-marketable equity securities and equity method investment balances as of March 31, 2022 and December 31, 2021 are as follows (in millions):


	March 31, 2022		December 31, 2021
Equity method investments	$	21	$	—
Non-marketable equity securities	5		5
Total	$	26	$	5

VARIABLE INTEREST ENTITIES

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIESThe Company utilizes VIEs in the normal course of business to support the Company’s financing needs. The Company determines whether the Company is the primary beneficiary of a VIE at the time it becomes involved with the VIE and reconsiders that conclusion on an on-going basis.

The Company established certain special purpose entities (“SPEs”) for the purpose of financing the Company’s purchase and renovation of real estate inventory through the issuance of asset-backed debt. The Company is the primary beneficiary of the various VIEs within these financing structures and consolidates these VIEs. The Company is determined to be the primary beneficiary based on its power to direct the activities that most significantly impact the economic outcomes of the SPEs through its role in designing the SPEs and managing the real estate inventory they purchase and sell. The Company has a potentially significant variable interest in the entities based upon the equity interest the Company holds in the VIEs.

The following table summarizes the assets and liabilities related to the VIEs consolidated by the Company as of March 31, 2022 and December 31, 2021 (in millions):


	March 31, 2022		December 31, 2021
Assets
Cash and cash equivalents	$	17	$	9
Restricted cash	435		838
Real estate inventory, net	4,621		6,046
Other(1)	114		113
Total assets	$	5,187	$	7,006
Liabilities
Non-recourse asset-backed debt	$	4,773	$	6,102
Other(2)	46		70
Total liabilities	$	4,819	$	6,172

________________

(1)Includes escrow receivable and other current assets.

(2)Includes accounts payable and other accrued liabilities and interest payable.

The creditors of the VIEs generally do not have recourse to the Company’s general credit solely by virtue of being creditors of the VIEs, with the exception of limited guarantees provided by an Opendoor subsidiary for credit facilities. See “Note 6 — Credit Facilities and Long-Term Debt” for further discussion of the recourse obligations with respect to the VIEs.

CREDIT FACILITIES AND LONG-TERM DEBT

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

CREDIT FACILITIES AND LONG-TERM DEBT

The following tables summarize certain details related to the Company's credit facilities and long-term debt as of March 31, 2022 and December 31, 2021 (in millions, except interest rates):


			Outstanding Amount
March 31, 2022	Borrowing Capacity		Current		Non-Current		Weighted Average Interest Rate		End of Revolving / Withdrawal Period	Final Maturity Date
Non-Recourse Asset-backed Debt:
Asset-backed Senior Revolving Credit Facilities
Revolving Facility 2018-2	$	1,000	$	236	$	—	2.93	%	September 23, 2022	December 23, 2022
Revolving Facility 2018-3	750		383		—		2.39	%	May 26, 2024	May 26, 2024
Revolving Facility 2019-1	900		663		—		2.99	%	June 30, 2023	June 30, 2023
Revolving Facility 2019-2	1,850		870		—		2.49	%	July 8, 2023	July 8, 2024
Revolving Facility 2019-3	925		428		—		3.25	%	April 5, 2024	April 5, 2025
Revolving Facility 2021-1	125		80		—		2.22	%	October 31, 2022	October 31, 2022
Asset-backed Senior Term Debt Facilities
Term Debt Facility 2021-S1	400		—		400		3.48	%	April 1, 2024	April 1, 2025
Term Debt Facility 2021-S2	600		—		500		3.20	%	September 10, 2024	September 10, 2025
Term Debt Facility 2021-S3	1,000		—		—		3.75	%	January 31, 2027	July 31, 2027
Term Debt Facility 2022-S1	250		—		250		4.07	%	March 1, 2025	September 1, 2025
Total	$	7,800	$	2,660	$	1,150
Issuance Costs					(5)
Carrying Value					$	1,145

Asset-backed Mezzanine Term Debt Facilities

Term Debt Facility 2020-M1	3,000		—		1,000		10.00	%	April 1, 2025	April 1, 2026
Term Debt Facility 2022-M1	500		—		—		10.00	%	September 15, 2025	September 15, 2026
Total	$	3,500	$	—	$	1,000
Issuance Costs					(32)
Carrying Value					$	968

Total Non-Recourse Asset-backed Debt	$	11,300	$	2,660	$	2,113

Recourse Debt - Other Secured Borrowings:
Mortgage Financing
Repo Facility 2019-R1	$	100	$	10	$	—	2.00	%	May 26, 2022	May 26, 2022
Total Recourse Debt	$	100	$	10	$	—


	Outstanding Amount
December 31, 2021	Current		Non-Current		Weighted Average Interest Rate
Non-Recourse Asset-backed Debt:
Asset-backed Senior Revolving Credit Facilities

Revolving Facility 2018-2	$	759	$	—	2.84	%
Revolving Facility 2018-3	673		—		2.39	%
Revolving Facility 2019-1	648		—		2.84	%
Revolving Facility 2019-2	1,149		—		2.52	%
Revolving Facility 2019-3	886		—		3.25	%
Revolving Facility 2021-1	125		—		2.15	%
Asset-backed Senior Term Debt Facilities
Term Debt Facility 2021-S1	—		400		3.48	%
Term Debt Facility 2021-S2	—		500		3.20	%
Term Debt Facility 2021-S3	—		—		3.75	%

Total	$	4,240	$	900
Issuance Costs			(3)
Carrying Value			$	897

Asset-backed Mezzanine Term Debt Facilities

Term Debt Facility 2020-M1	$	—	$	1,000	10.00	%

Total	$	—	$	1,000
Issuance Costs			(35)
Carrying Value			$	965

Total Non-Recourse Asset-backed Debt	$	4,240	$	1,862

Recourse Debt - Other Secured Borrowings:
Mortgage Financing
Repo Facility 2019-R1	$	7	$	—	1.84	%
Total Recourse Debt	$	7	$	—

Non-Recourse Asset-backed Debt

The Company utilizes inventory financing facilities consisting of asset-backed senior debt facilities and asset-backed mezzanine term debt facilities to provide financing for the Company’s real estate inventory purchases and renovation. The credit facilities are secured by the assets and equity of one or more SPEs. Each SPE is a consolidated subsidiary of Opendoor and a separate legal entity. Neither the assets nor credit of any such SPE are generally available to satisfy the debts and other obligations of any other Opendoor entities, except to the extent other Opendoor entities are also a party to the financing arrangements. These facilities are non-recourse to Opendoor and, with limited exceptions, non-recourse to other Opendoor subsidiaries.

As of March 31, 2022, the Company had total borrowing capacity with respect to the Company’s non-recourse asset- backed debt of $11.3 billion. Borrowing capacity amounts under non-recourse asset-backed debt as reflected in the table above are in some cases not fully committed and any borrowings above the fully committed amounts are subject to the applicable lender’s discretion. As of March 31, 2022, the Company had fully committed borrowing capacity with respect to the Company’s non-recourse asset-backed debt of $8.4 billion.

Asset-backed Senior Revolving Credit Facilities

The Company classifies the senior revolving credit facilities as current liabilities on the Company’s condensed consolidated balance sheets as amounts drawn to acquire and renovate homes are required to be repaid as the related real estate inventory is sold, which the Company expects to occur within 12 months.

Borrowing capacity amounts under the senior revolving credit facilities as reflected in the table above are in some cases not fully committed and any borrowings above the fully committed amounts are subject to the applicable lender’s discretion. As of March 31, 2022, the Company had fully committed borrowing capacity with respect to the Company’s senior revolving credit facilities of $4.0 billion.

The senior revolving credit facilities are typically structured with an initial revolving period of up to 24 months during which time amounts can be borrowed, repaid and borrowed again. The borrowing capacity is generally available until the end of the applicable revolving period as reflected in the table above. Outstanding amounts drawn under each senior revolving credit facility are required to be repaid on the facility maturity date or earlier if accelerated due to an event of default or other mandatory repayment event. The final maturity dates and revolving period end dates reflected in the table above are inclusive of any extensions that are at the sole discretion of the Company. These facilities may also have extensions subject to lender discretion that are not reflected in the table above.

Borrowings under the senior revolving credit facilities accrue interest at a Benchmark reference rate ("Benchmark Rate"), which may be based on London Interbank Offered Rate ("LIBOR") or the secured overnight financing rate ("SOFR"), plus a margin that varies by facility. The Company may also pay fees on certain unused portions of the committed borrowing capacity, as defined in the respective credit agreements. The Company’s senior revolving credit facility arrangements typically include upfront fees that may be paid at execution of the applicable agreements or be earned at execution and payable over time. These facilities are generally fully prepayable at any time without penalty other than customary Benchmark Rate breakage costs.

These borrowings are collateralized by cash, equity in the real estate owning SPEs, and the real estate inventory funded by the relevant facility. The lenders have legal recourse only to the real estate-owning SPE borrowers, certain SPE guarantors, and the assets securing the debt, and do not have general recourse to the Company.

The senior revolving credit facilities have aggregated borrowing bases, which increase or decrease based on the cost and value of the properties financed under a given facility and the time that those properties are in the Company’s possession. When the Company resells a home, the proceeds are used to reduce the outstanding balance under the related senior revolving credit facility. The borrowing base for a given facility may be reduced as properties age beyond certain thresholds and any borrowing base deficiencies may be satisfied through contributions of additional properties or partial repayment of the facility.

Asset-backed Senior Term Debt Facilities

The Company classifies its senior term debt facilities as non-current liabilities on the Company’s condensed consolidated balance sheets because its borrowings under these facilities are generally not required to be repaid until the final maturity date.

Borrowing capacity amounts under the senior term debt facilities as reflected in the table above are in some cases not fully committed and any borrowings above the fully committed amounts are subject to the applicable lender’s discretion. Any amounts repaid reduce total borrowing capacity as repaid amounts are not available to be reborrowed. As of March 31, 2022, the Company had fully committed borrowing capacity with respect to the Company’s senior term debt facilities of $1.9 billion. The total outstanding amount presented above includes $1.2 billion of non-current liabilities; the carrying value of the non-current liabilities is reduced by issuance costs of $5 million.

The senior term debt facilities are typically structured with an initial withdrawal period up to 60 months during which the outstanding principal amounts are generally not required to be repaid when homes financed through those facilities are sold and instead are intended to remain outstanding until final maturity for each facility. Outstanding amounts drawn under each senior term debt facility are required to be repaid on the facility maturity date or earlier if accelerated due to an event of default or other mandatory repayment event. The final maturity dates and withdrawal period end dates reflected in the table above are inclusive of any extensions that are at the sole discretion of the Company. These facilities may also have extensions subject to lender discretion that are not reflected in the table above.

Borrowings under the senior term debt facilities accrue interest at a fixed rate. The Company's senior term debt facilities may include upfront issuance costs that are capitalized as part of the facilities' respective carrying values. These facilities are fully prepayable at any time but may be subject to certain customary prepayment penalties.

The senior term debt facilities have aggregated property borrowing bases, which increase or decrease based on the cost and the value of the properties financed under a given facility, the time those properties are in the Company’s possession and the amount of cash collateral pledged by the SPE borrowers. The borrowing bases for a given facility may be reduced as properties age beyond certain thresholds and any borrowing base deficiencies may be satisfied through contributions of additional properties, cash or through partial repayment of the facility.

Asset-backed Mezzanine Term Debt Facilities

The Company classifies its mezzanine term debt facilities as long-term liabilities on the Company’s condensed consolidated balance sheets because its borrowings under these facilities are generally not required to be repaid until the applicable final maturity date. These facilities are structurally and contractually subordinated to the related asset-backed senior debt facilities.

Borrowing capacity under the mezzanine term debt facilities as reflected in the table above are not fully committed and any borrowings above the fully committed amounts are subject to the applicable lender’s discretion. Any amounts repaid reduce total borrowing capacity as repaid amounts are not available to be reborrowed. As of March 31, 2022, the Company had fully committed borrowing capacity with respect to the Company’s mezzanine term debt facilities of $2.5 billion. The total outstanding amount presented above includes $1.0 billion of non-current liabilities; the carrying value of the non-current liabilities is reduced by issuance costs of $32 million.

The mezzanine term debt facilities have been structured with an initial 42 month withdrawal period during which the outstanding principal amounts are generally not required to be repaid when homes financed through those facilities are sold and instead are intended to remain outstanding until final maturity. Outstanding amounts drawn under the mezzanine term debt facilities are required to be repaid on the facility maturity date or earlier if accelerated due to an event of default or other mandatory repayment event. The final maturity date and withdrawal period end date reflected in the table above are inclusive of any extensions that are at the sole discretion of the Company. These facilities may also have extensions subject to lender discretion that are not reflected in the table above.

Borrowings under a given term debt facility accrue interest at a fixed rate. The mezzanine term debt facilities include upfront issuance costs that are capitalized as part of the facilities’ respective carrying values. These facilities are fully prepayable at any time but may be subject to certain prepayment penalties.

These borrowings are collateralized by cash and equity in certain holding companies that own the Company’s real estate owning SPEs. The lenders generally have legal recourse only to the applicable borrowers of the debt and their assets securing the debt and do not have recourse to Opendoor and, with limited exceptions, do not have recourse to other Opendoor subsidiaries.

The mezzanine term debt facilities have aggregated property borrowing bases, which increase or decrease based on the cost and the value of the properties financed under a given facility and time in the Company’s possession of those properties and the amount of cash collateral pledged by the relevant SPE borrower. The borrowing base for a given facility may be reduced as properties age beyond certain thresholds and any borrowing base deficiencies may be satisfied through contributions of additional properties or cash or through partial repayment of the facility.

Covenants

The Company’s inventory financing facilities include customary representations and warranties, covenants and events of default. Financed properties are subject to customary eligibility criteria and concentration limits.

The terms of these inventory financing facilities and related financing documents require Opendoor to comply with a number of customary financial and other covenants, such as maintaining certain levels of liquidity, tangible net worth or leverage (ratio of debt to equity). As of March 31, 2022, the Company was in compliance with all financial covenants and no event of default had occurred.

Mortgage Financing

To provide capital for Opendoor Home Loans, the Company utilizes a master repurchase agreement (the “Repurchase Agreement”) which is classified as a current liability on its condensed consolidated balance sheets. In March 2019, the Company entered into the Repurchase Agreement with a lender to provide short-term funding for mortgage loans originated by Opendoor Home Loans. The facility provides short-term financing between the issuance of a mortgage loan and when Opendoor Home Loans sells the loan to an investor. In accordance with the Repurchase Agreement, the lender agrees to pay Opendoor Home Loans a negotiated purchase price for eligible loans and Opendoor Home Loans simultaneously agrees to repurchase such loans from the lender within a specified timeframe and at an agreed upon price that includes interest. Opendoor Labs Inc. is the guarantor with respect to the Repurchase Agreement and the obligation to repurchase loans previously transferred under the arrangement for the benefit of the lender.

As of March 31, 2022, the Repurchase Agreement has a borrowing capacity of $100 million, of which $20 million is fully committed. The Repurchase Agreement includes customary representations and warranties, covenants and provisions regarding events of default. As of March 31, 2022, $11 million in mortgage loans were financed under the facility, and Opendoor was in compliance with all financial covenants and no event of default had occurred.

Transactions under the Repurchase Agreement bear interest at a rate based on one-month LIBOR plus an applicable margin, as defined in the Repurchase Agreement, and are secured by residential mortgage loans available for sale. The Repurchase Agreement contains margin call provisions that provide the lender with certain rights in the event of a decline in the market value of the assets purchased under the Repurchase Agreement. The Repurchase Agreement is recourse to Opendoor Labs Inc.

Convertible Senior Notes

In August 2021, the Company issued 0.25% senior notes due in 2026 (the “2026 Notes”) with an aggregate principal amount of $978 million. The tables below summarizes certain details related to the 2026 Notes (in millions, except interest rates):


March 31, 2022	Aggregate Principal Amount		Unamortized Debt Issuance Costs		Net Carrying Amount
2026 Notes	$	978	$	(23)	$	955


March 31, 2022	Maturity Date	Stated Cash Interest Rate		Effective Interest Rate		Semi-Annual Interest Payment Dates	Conversion Rate	Conversion Price
2026 Notes	August 15, 2026	0.25	%	0.77	%	February 15; August 15	51.9926	$	19.23

The 2026 Notes will be convertible at the option of the holders before February 15, 2026 only upon the occurrence of certain events. Beginning on August 20, 2024, the Company has the option to redeem the 2026 Notes upon meeting certain conditions related to price of the Company's common stock. Beginning on February 15, 2026 and until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2026 Notes are convertible at any time at election of each holder. The conversion rate and conversion price are subject to customary adjustments under certain circumstances. In addition, if certain corporate events that constitute a make-whole fundamental change occur, then the conversion rate will be adjusted in accordance with the make-whole table within the Indenture. Upon conversion, the Company may satisfy its conversion obligation by paying cash or providing a combination of cash and the Company's common stock, at the Company's election, based on the applicable conversion rate.

For the three months ended March 31, 2022, total interest expense on the Company's convertible senior notes was $2 million, with coupon interest of $1 million and amortization of debt issuance costs of $1 million.

Capped Calls

In August 2021, in connection with the issuance of the 2026 Notes, the Company purchased capped calls (the “Capped Calls”) from certain financial institutions at a cost of $119 million. The Capped Calls cover, subject to customary adjustments, the number of shares of the Company's common stock underlying the 2026 Notes. By entering into the Capped Calls, the Company expects to reduce the potential dilution to its common stock (or, in the event of a conversion of the 2026 Notes settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2026 Notes its common stock price exceeds the conversion price. The Capped Calls have an initial strike price of $19.23 per share and an initial cap price of $29.59 per share or a cap price premium of 100%.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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FAIR VALUE DISCLOSURES

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.

Following is a discussion of the fair value hierarchy and the valuation methodologies used for assets and liabilities recorded at fair value on a recurring and nonrecurring basis and for estimating fair value for financial instruments not recorded at fair value.

Fair Value Hierarchy

Fair value measurements of assets and liabilities are categorized based on the following hierarchy:

Level 1 — Fair value determined based on quoted prices in active markets for identical assets or liabilities.

Level 2 — Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means.

Level 3 — Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.

Estimation of Fair Value

The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities.

Asset/Liability Class

Valuation Methodology, Inputs and

Assumptions

Classification

Cash and cash equivalents

Carrying value is a reasonable estimate of fair value based on short-term nature of the instruments.

Level 1 estimated fair value measurement.

Restricted cash

Carrying value is a reasonable estimate of fair value based on short-term nature of the instruments.

Level 1 estimated fair value measurement.

Marketable securities

Debt securities

Prices obtained from third-party vendors that compile prices from various sources and often apply matrix pricing for similar securities when no price is observable.

Level 2 recurring fair value measurement.

Mutual fund

Price is quoted given the security is traded on an exchange.

Level 1 recurring fair value measurement.

Equity securities

Price is quoted given the securities traded on an exchange.

Level 1 recurring fair value measurement.

Mortgage loans held for sale pledged under agreements to repurchase

Fair value is estimated based on observable market data including quoted market prices, deal price quotes, and sale commitments.

Level 2 recurring fair value measurement.

Other current assets

Mortgage loans held for sale

Fair value is estimated based on observable market data including quoted market prices and deal price quotes.

Level 2 recurring fair value measurement.

Non-recourse asset-backed debt

Credit facilities

Fair value is estimated using discounted cash flows based on current lending rates for similar credit facilities with similar terms and remaining time to maturity.

Carried at amortized cost.

Level 2 estimated fair value measurement.

Other secured borrowings

Loans sold under agreements to repurchase

Fair value is estimated using discounted cash flows based on current lending rates for similar asset-backed financing facilities with similar terms and remaining time to maturity.

Carried at amortized cost.

Level 2 estimated fair value measurement.

Convertible senior notes

Fair value is estimated using broker quotes and other observable market inputs.

Carried at amortized cost.
Level 2 estimated fair value measurement.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The following tables present the levels of the fair value hierarchy for the Company’s assets measured at fair value on a recurring basis (in millions).


March 31, 2022	Balance at Fair Value		Level 1		Level 2		Level 3
Marketable securities:
Mutual fund	$	199	$	199	$	—	$	—
Corporate debt securities	187		—		187		—
Commercial paper	28		—		28		—
Equity securities	24		24		—		—
Certificates of deposit	19		—		19		—

Asset-backed securities	7		—		7		—


Mortgage loans held for sale pledged under agreements to repurchase	11		—		11		—
Other current assets:
Mortgage loans held for sale	3		—		3		—

Total assets	$	478	$	223	$	255	$	—


December 31, 2021	Balance at Fair Value		Level 1		Level 2		Level 3
Marketable securities:
Corporate debt securities	$	207	$	—	$	207	$	—
Mutual fund	200		200		—		—
Equity securities	46		46		—		—
Commercial paper	15		—		15		—
Asset-backed securities	7		—		7		—
Certificates of deposit	5		—		5		—
Sovereign bonds	4		—		4		—


Mortgage loans held for sale pledged under agreements to repurchase	7		—		7		—
Other current assets:
Mortgage loans held for sale	4		—		4		—

Total assets	$	495	$	246	$	249	$	—

Fair Value of Financial Instruments

The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company’s financial instruments other than assets and liabilities measured at fair value on a recurring basis (in millions).


	March 31, 2022
	Carrying Value		Fair Value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	2,312	$	2,312	$	2,312	$	—
Restricted cash	444		444		444		—

Liabilities:
Non-recourse asset-backed debt	$	4,773	$	4,810	$	—	$	4,810
Other secured borrowings	10		10		—		10
Convertible senior notes	955		767		—		767


	December 31, 2021
	Carrying Value		Fair Value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	1,731	$	1,731	$	1,731	$	—
Restricted cash	847		847		847		—

Liabilities:
Non-recourse asset-backed debt	$	6,102	$	6,140	$	—	$	6,140
Other secured borrowings	7		7		—		7
Convertible senior notes	954		1,019		—		1,019

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2022

PROPERTY AND EQUIPMENT

Property and equipment as of March 31, 2022 and December 31, 2021, consisted of the following (in millions):


	March 31, 2022		December 31, 2021
Internally developed software	$	81	$	71
Computers	12		11
Security systems	12		10
Furniture and fixtures	3		3
Software implementation costs	3		3
Leasehold improvements	2		2
Office equipment	2		2
Total	115		102
Accumulated depreciation and amortization	(66)		(57)
Property and equipment – net	$	49	$	45

Depreciation and amortization expense of $9 million and $6 million was recorded for the three months ended March 31, 2022 and 2021, respectively.

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

There were no additions to goodwill for the three months ended March 31, 2022. For the year ended December 31, 2021 the carrying amount of goodwill increased by $29 million due to the acquisitions as stated in “Note 2 — Business Combinations”. No impairment of goodwill was identified for the three months ended March 31, 2022 and 2021.

Intangible assets subject to amortization consisted of the following as of March 31, 2022 and December 31, 2021, respectively (in millions, except years):


March 31, 2022	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Remaining Weighted Average Useful Life (Years)
Developed technology	$	7	$	(3)	$	4	0.5
Customer relationships	7		(4)		3		2.4
Trademarks	5		(2)		3		2.4

Intangible assets – net	$	19	$	(9)	$	10


December 31, 2021	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Remaining Weighted Average Useful Life (Years)
Developed technology	$	7	$	(2)	$	5	0.7
Customer relationships	7		(3)		4		2.7
Trademarks	5		(2)		3		2.7

Intangible assets – net	$	19	$	(7)	$	12

Amortization expense for intangible assets was $2 million and $1 million for the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022, expected amortization of intangible assets is as follows:


Fiscal Years	(In millions)
Remainder of 2022	$	6
2023	2
2024	2

Total	$	10

SHAREHOLDERS’ EQUITY	3 Months Ended
SHAREHOLDERS’ EQUITY	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
SHAREHOLDERS’ EQUITY	SHAREHOLDERS’ EQUITYOn February 9, 2021, the Company completed an underwritten public offering (the “February 2021 Offering”) in which the Company sold 32,817,421 shares of its common stock at a public offering price of $27.00 per share, including the exercise in full by the underwriters of their option to purchase up to 4,280,533 additional shares of common stock, which was completed on February 11, 2021. The Company received aggregate net proceeds from the February 2021 Offering of approximately $859 million after deducting underwriting discounts and commissions and offering expenses payable by the Company upon closing. The February 2021 Offering satisfied the liquidity event vesting condition of certain restricted stock units (“RSUs”). For further information on the RSUs, see “Note 11 — Share-Based Awards”.WARRANTS Public and Sponsor Warrants In connection with the Business Combination, on January 12, 2021, the Company filed a Registration Statement on Form S-1. This Registration Statement relates to the issuance of an aggregate of up to 19,933,333 shares of common stock issuable upon the exercise of its publicly-traded warrants. The warrants issued as part of SCH's initial public offering are the “Public Warrants” and warrants sold privately to the sponsor of SCH are the "Sponsor Warrants." On July 9, 2021, the Company completed the redemption of all of its outstanding Public and Sponsor Warrants to purchase shares of the Company's common stock, par value $0.0001 per share, that were issued under the Warrant Agreement, dated April 27, 2020. Of the 13,799,947 Public Warrants that were outstanding as of the time of the Business Combination, 874,739 were exercised for cash at an exercise price of $11.50 per share of Common Stock and 12,521,776 were exercised on a cashless basis in exchange for an aggregate of 4,452,659 shares of Common Stock. In addition, of the 6,133,333 Sponsor Warrants that were outstanding as of the date of the Business Combination, 1,073,333 were exercised for cash at an exercise price of $11.50 per share of Common Stock and 5,060,000 were exercised on a cashless basis in exchange for an aggregate of 1,799,336 shares of Common Stock. Total cash proceeds to the Company generated from exercises of the Warrants were $22 million. In connection with the redemption, the Public Warrants stopped trading on the Nasdaq on July 9, 2021. The Company recorded a decrease to the warrant fair value adjustment of $15 million for the change in fair value of the Sponsor Warrants for the three months ended March 31, 2021.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Share-based Payment Arrangement [Abstract]

SHARE-BASED AWARDS

3 Months Ended

Mar. 31, 2022

SHARE-BASED AWARDS

Stock options and RSUs

Option awards are generally granted with an exercise price equal to the fair value of the Company’s common stock at the date of grant. Options are exercisable over a maximum term of 10 years from the date of grant and generally vest over a period of four years. Incentive stock options granted to a 10% shareholder are exercisable over a maximum term of five years from the date of grant.

A summary of the stock option activity for the three months ended March 31, 2022, is as follows:


	Number of Options (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Balance-December 31, 2021	14,546	$	2.12	4.7	$	182
Granted	—	—
Exercised	(1,896)	1.18
Forfeited	(33)	2.87
Expired	(35)	1.42
Balance-March 31, 2022	12,582	$	2.26	4.4	$	81
Exercisable-March 31, 2022	11,354	$	1.95	4.2	$	76

RSUs typically vest upon a service-based requirement, generally over a four year period. Prior to 2021, certain awards also had a performance condition to vesting, which was satisfied upon completion of the February 2021 Offering and triggered the recognition of compensation expense for certain RSUs for which the time-based vesting condition had been satisfied or partially satisfied. Subsequent to the February 2021 Offering, these RSUs are only subject to time-based vesting conditions.

A summary of the RSU activity for the three months ended March 31, 2022, is as follows:


	Number of RSUs (in thousands)	Weighted- Average Grant-Date Fair Value
Unvested and outstanding-December 31, 2021	53,446	$	17.35
Granted	9,009	9.75
Vested	(4,923)	9.27
Forfeited	(878)	15.04
Unvested and outstanding-March 31, 2022	56,654	$	16.88

Restricted Shares

The Company has granted Restricted Shares to certain continuing employees, primarily in connection with acquisitions. The Restricted Shares vest upon satisfaction of a service condition, which generally ranges from three to four years.

A summary of the Restricted Shares activity for the three months ended March 31, 2022 is as follows:


	Number of Restricted Shares (in thousands)	Average Grant-Date Fair Value
Unvested-December 31, 2021	692	$	3.91
Granted	—	—
Vested	(69)	3.02
Unvested-March 31, 2022	623	$	4.01

ESPP

The first offering period for the Company's 2020 ESPP began on March 1, 2022. The ESPP, pursuant to Internal Revenue Code Section 423, allows eligible participants to purchase shares using payroll deductions of up to 15% of their total compensation, subject to a $25,000 calendar year limitation on contributions. The Company has limited the maximum number of shares to be purchased in an offering period to 1,000 shares per employee. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a 15% discount on the lower price of either (i) the offer period start date or (ii) the purchase date. Each offering period is six months in duration. ESPP employee payroll contributions withheld as of March 31, 2022 were $1 million and are included within Accounts payable and other accrued liabilities in the condensed consolidated balance sheets. Payroll contributions withheld as of March 31, 2022 will be used to purchase shares at the end of the current ESPP purchase period ending on August 31, 2022.

The fair value of ESPP purchase rights is estimated at the date of grant using the Black-Scholes option-pricing valuation model. The following assumptions were applied in the model to estimate the grant-date fair value of the ESPP for the initial offering period that began on March 1, 2022.


	2022
Fair value	$	3.55
Volatility	101.4		%
Risk-free rate	0.60		%
Expected life (in years)	0.5
Expected dividend	$	—

As of March 31, 2022, total estimated unrecognized compensation expense related to the ESPP was $1 million. That cost is expected to be recognized over the remaining term of the offering period of 5 months.

Stock-based compensation expense

Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. The following table summarizes total stock-based compensation expense by function as presented in the condensed consolidated statements of operations for the three months ended March 31, 2022 and 2021, as follows (in millions):


	Three Months Ended March 31,
	2022		2021
General and administrative	51		197
Sales, marketing and operations	4		7
Technology and development	12		35
Total stock-based compensation expense	$	67	$	239

During the three months ended March 31, 2022, no market condition awards satisfied their market condition.

As of March 31, 2022, there was $632 million of unamortized stock-based compensation costs related to unvested RSUs, stock options, and Restricted Shares. The unamortized compensation costs are expected to be recognized over a weighted-average period of approximately 2.8 years.

WARRANTS	3 Months Ended
WARRANTS	Mar. 31, 2022
Equity [Abstract]
WARRANTS	SHAREHOLDERS’ EQUITYOn February 9, 2021, the Company completed an underwritten public offering (the “February 2021 Offering”) in which the Company sold 32,817,421 shares of its common stock at a public offering price of $27.00 per share, including the exercise in full by the underwriters of their option to purchase up to 4,280,533 additional shares of common stock, which was completed on February 11, 2021. The Company received aggregate net proceeds from the February 2021 Offering of approximately $859 million after deducting underwriting discounts and commissions and offering expenses payable by the Company upon closing. The February 2021 Offering satisfied the liquidity event vesting condition of certain restricted stock units (“RSUs”). For further information on the RSUs, see “Note 11 — Share-Based Awards”.WARRANTS Public and Sponsor Warrants In connection with the Business Combination, on January 12, 2021, the Company filed a Registration Statement on Form S-1. This Registration Statement relates to the issuance of an aggregate of up to 19,933,333 shares of common stock issuable upon the exercise of its publicly-traded warrants. The warrants issued as part of SCH's initial public offering are the “Public Warrants” and warrants sold privately to the sponsor of SCH are the "Sponsor Warrants." On July 9, 2021, the Company completed the redemption of all of its outstanding Public and Sponsor Warrants to purchase shares of the Company's common stock, par value $0.0001 per share, that were issued under the Warrant Agreement, dated April 27, 2020. Of the 13,799,947 Public Warrants that were outstanding as of the time of the Business Combination, 874,739 were exercised for cash at an exercise price of $11.50 per share of Common Stock and 12,521,776 were exercised on a cashless basis in exchange for an aggregate of 4,452,659 shares of Common Stock. In addition, of the 6,133,333 Sponsor Warrants that were outstanding as of the date of the Business Combination, 1,073,333 were exercised for cash at an exercise price of $11.50 per share of Common Stock and 5,060,000 were exercised on a cashless basis in exchange for an aggregate of 1,799,336 shares of Common Stock. Total cash proceeds to the Company generated from exercises of the Warrants were $22 million. In connection with the redemption, the Public Warrants stopped trading on the Nasdaq on July 9, 2021. The Company recorded a decrease to the warrant fair value adjustment of $15 million for the change in fair value of the Sponsor Warrants for the three months ended March 31, 2021.

INCOME TAXES	3 Months Ended
INCOME TAXES	Mar. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company's tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter. The Company’s provision for income taxes, which was primarily composed of state tax expense, was $0.3 million for the three months ended March 31, 2022 with an effective tax rate of 1.00%. The Company's provision for income taxes was $0.1 million for the three months ended March 31, 2021 with an effective tax rate of (0.03)%. The effective tax rate differs from the U.S. statutory tax rate primarily due to the recording of a full valuation allowance against the net deferred tax assets. The Company evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. Based on the Company’s history of operating losses, including a three-year cumulative loss position, the Company believes that based on the weight of available evidence, it is more likely than not that all of the deferred tax assets will not be realized and recorded a full valuation allowance on its net deferred tax assets as of March 31, 2022 and December 31, 2021.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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NET INCOME (LOSS) PER SHARE

RELATED PARTIES	3 Months Ended
RELATED PARTIES	Mar. 31, 2022
Related Party Transactions [Abstract]
RELATED PARTIES	RELATED PARTIESIn 2018, an executive early exercised stock options to purchase 1,479,459 shares of unvested common stock at a price per share of $1.01 by issuing a promissory note to the Company for a total price of $1.5 million with an interest rate of 2.31% per annum. On June 29, 2021, the outstanding balance under the promissory note of $1.6 million was repaid in full.

NET INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER SHAREBasic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. During the periods when there is a net income (loss), potentially dilutive common stock equivalents have been excluded from the calculation of diluted net income (loss) per share as their effect is anti-dilutive. No dividends were declared or paid for the three months ended March 31, 2022 or 2021.

The Company uses the two-class method to calculate net income (loss) per share and apply the more dilutive of the two-class method, treasury stock method or if-converted method to calculate diluted net income (loss) per share. Undistributed earnings for each period are allocated to participating securities, based on the contractual participation rights of the security to share in the current earnings as if all current period earnings had been distributed. As there is no contractual obligation for participating securities to share in losses, the Company’s basic net income (loss) per share is computed by dividing the net income (loss) attributable to common shareholders by the weighted-average shares of common stock outstanding during periods with undistributed losses.

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common shareholders for the three months ended March 31, 2022 and 2021 (in millions, except share amounts which are presented in thousands, and per share amounts):


	Three Months Ended March 31,
	2022		2021
Basic net income (loss) per share:
Numerator:



Net income (loss) attributable to common shareholders – basic	$	28	$	(270)
Denominator:
Weighted average shares outstanding – basic	619,137		565,381
Basic net income (loss) per share	$	0.05	$	(0.48)
Diluted net income (loss) per share:
Numerator:




Net income (loss) attributable to common shareholders – diluted	$	28	$	(270)
Denominator:
Weighted average shares outstanding – basic	619,137		565,381
Plus: Potential common shares:
RSUs	11,043		—
Options	10,104		—
Restricted Shares	501		—
Weighted average shares outstanding - diluted	640,785		565,381
Diluted net income (loss) per share	$	0.04	$	(0.48)

The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (in thousands):


	Three Months Ended March 31,
	2022	2021
Common Stock Warrants	—	19,933


RSUs	36,034	52,106
Options	150	23,965
Unvested Shares from Early Exercise	—	36
Restricted Shares	—	1,837
Employee Stock Purchase Plan	439	—

Total anti-dilutive securities	36,623	97,877

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Lease Commitments During the three months ended March 31, 2022, the Company did not enter into any material new leases, lease renewals, or lease modifications. On September 25, 2020, the Company exercised an option to early terminate the San Francisco headquarters lease, effective September 30, 2021. In September 2020, the Company did not anticipate returning to the San Francisco space, so the Company accelerated amortization of the right-of-use asset and incurred and paid early termination fees. In January 2021, the Company terminated the San Francisco lease prior to the anticipated termination date of September 30, 2021, which resulted in a $5.2 million gain recognized in the condensed consolidated statements of operations for the three months ended March 31, 2021. Legal Matters From time to time, the Company may be subject to potential liability relating to the ownership and operations of the Company’s properties. Accruals are recorded when the outcome is probable and can be reasonably estimated. There are various claims and lawsuits arising in the normal course of business pending against the Company, some of which seek damages and other relief which, if granted, may require future cash expenditures. In addition, from time to time the Company receives inquiries and audit requests from various government agencies and fully cooperates with these requests. The Company does not believe that it is reasonably possible that the resolution of these matters would result in any liability that would materially affect the Company’s condensed consolidated results of operations or financial condition except as noted below. On December 23, 2020, the Federal Trade Commission (“FTC”) notified the Company that they intend to recommend that the agency pursue an enforcement action against the Company and certain of its officers, if the Company is unable to reach a negotiated settlement acceptable to all parties. This notice is related to an initial FTC civil investigative demand sent to the Company in August 2019 seeking documents and information relating primarily to statements in Opendoor’s advertising and website comparing selling homes to Opendoor with selling homes in a traditional manner using an agent and relating to statements that Opendoor’s offers reflect or are based on market prices. In February 2022, the Company met with the FTC Commissioners to explain its responses to the allegations and settlement proposals. Settlement negotiations are ongoing, and settlement or the initiation of an administrative enforcement action by the FTC could occur at any time. The Company has accrued an immaterial amount for this matter. Any settlement could result in material monetary remedies and/or compliance requirements that could have a materially adverse impact on its financial results. The Company cannot make an estimate of the possible loss or range of loss incremental to the amount accrued, if any, resulting from negotiations with the FTC at this time.

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSThe Company has evaluated the impact of events that have occurred subsequent to March 31, 2022, through the date the condensed consolidated financial statements were filed with the SEC. Based on this evaluation, other than as recorded or disclosed within these condensed consolidated financial statements and related notes, the Company has determined that there are no material subsequent events that would require recognition or disclosure.

DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Description of Business	Description of Business Opendoor Technologies Inc. (the “Company” and “Opendoor”) including its consolidated subsidiaries and certain variable interest entities (“VIEs”), is a leading digital platform for residential real estate. By leveraging software, data science, product design and operations, Opendoor has rebuilt the service model for real estate and has made buying and selling possible on a mobile device. The Company was incorporated in Delaware on December 30, 2013.
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to generally accepted accounting principles in the United States of America (“GAAP”). The condensed consolidated financial statements as of March 31, 2022 and December 31, 2021 and for the three month periods ended March 31, 2022 and 2021 include the accounts of Opendoor, its wholly owned subsidiaries and VIEs where the Company is the primary beneficiary. The accompanying unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements herein. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. The Company was formed through a business combination with Social Capital Hedosophia Holdings Corp. II (“SCH”), a Cayman Islands exempted company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Business Combination, pursuant to which Opendoor Labs Inc. became a wholly owned subsidiary of SCH and SCH changed its name from “Social Capital Hedosophia Holdings Corp. II” to “Opendoor Technologies Inc.”, was completed on December 18, 2020, and was accounted for as a reverse recapitalization, in accordance with GAAP. The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“Annual Report”) filed on February 24, 2022.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ materially from such estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the fair value of common stock, share-based awards, warrants, and inventory valuation adjustment. Management believes that the estimates and judgments upon which they rely are reasonable based upon information available to them at the time that these estimates and judgments are made. To the extent that there are material differences between these estimates and actual results, the Company’s financial statements will be affected.
Significant Risks and Uncertainties	Significant Risks and Uncertainties The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, the Company believes that changes in any of the following areas could have a significant negative effect on the Company in terms of its future financial position, results of operations or cash flows: public health crises, like the COVID-19 pandemic; its rates of revenue growth; its ability to manage inventory; engagement and usage of its products; the effectiveness of its investment of resources to pursue strategies; competition in its market; the stability of the residential real estate market; the impact of interest rate changes on demand and its costs; changes in technology, products, markets or services by the Company or its competitors; its ability to maintain or establish relationships with listings and data providers; its ability to obtain or maintain licenses and permits to support its current and future businesses; actual or anticipated changes to its products and services; changes in government regulation affecting its business; the outcomes of legal proceedings; natural disasters and catastrophic events; scaling and adaptation of existing technology and network infrastructure; its management of its growth; its ability to attract and retain qualified employees and key personnel; its ability to successfully integrate and realize the benefits of its past or future strategic acquisitions or investments; the protection of customers’ information and other privacy concerns; the protection of its brand and intellectual property; and intellectual property infringement and other claims, among other things.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, investments in marketable securities, and mortgage loans held for sale pledged under agreements to repurchase (“MLHFS”). The Company places cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, in order to limit exposure of the Company’s investments. Similarly, the Company’s credit risk on mortgage loans held for sale is mitigated due to having a large number of customers. Further, the Company’s credit risk on mortgage loans held for sale is mitigated by the fact that the Company typically sells mortgages on the secondary market within a relatively short period of time after which the Company’s exposure is limited to borrower defaults within the initial few months of the mortgage.
Investments	InvestmentsThe Company’s investments in marketable securities consist of debt securities classified as available-for-sale as well as marketable equity securities. The Company's available-for-sale debt securities are measured at fair value with unrealized gains and losses included in Accumulated other comprehensive income (loss) in shareholder’s equity and realized gains and losses included in Other income.
Non-marketable equity securities	The Company’s strategic investments consists of a marketable equity security, which is publicly traded, and non-marketable equity securities, which are investments in privately held companies. Marketable equity securities have readily determinable fair values with changes in fair value recorded in Other income. Non-marketable equity securities and equity method investments do not have readily determinable fair values. These securities are accounted for under one of the following accounting methods: •Equity method: This method is applied when the Company has the ability to exert significant influence over the investee. The securities are recorded at cost and adjusted for the Company’s share of the investee’s earnings or losses, less any dividends received and/or impairments. •Measurement alternative: This method is followed for all remaining non-marketable equity securities. These securities are recorded at cost minus impairment, if any, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer. All realized and unrealized gains and losses or the Company's share of the investee's earnings or losses, including impairment losses, are recognized in Other income. Any dividends on equity method investments are recognized as a reduction of the investment's carrying value. Non-marketable equity securities are reported in Other assets. The Company assesses whether an impairment loss on its non-marketable equity securities has occurred due to declines in fair value or other market conditions. When the fair value of an equity method investment is less than its carrying value, the Company writes down the investment to fair value when the decline in value is considered to be other than temporary. When the fair value of an investment accounted for using the measurement alternative is less than its carrying value, the Company writes down the investment to its fair value, without the consideration of recovery. See “Note 4 — Cash, Cash Equivalents, and Investments” for further discussion.
Real Estate Inventory	Real Estate Inventory Real estate inventory is carried at the lower of cost or net realizable value and the Company applies the specific identification method whereby each property constitutes the unit of account. Real estate inventory cost includes but is not limited to the property purchase price, acquisition costs and direct costs to renovate or repair the home, less inventory valuation adjustments, if any. Work in progress inventory includes homes undergoing repairs and finished goods inventory includes homes that are listed for sale or under contract for sale. Real estate inventory is reviewed for valuation adjustments at least quarterly. If the carrying amount or basis is not expected to be recovered, an inventory valuation adjustment is recorded to cost of revenue and the related assets are adjusted to their net realizable value.
Impairment of Long-Lived Assets	Impairment of Long-Lived AssetsLong-lived assets, such as property and equipment and definite-lived intangible assets, among other long-term assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment loss is recognized to the extent the carrying amount of the underlying asset exceeds its fair value.
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation awards consist of stock options, restricted stock units (“RSUs”), shares of restricted stock (“Restricted Shares”), and shares issued pursuant the 2020 Employee Stock Purchase Plan ("ESPP"). Stock Options The Company has granted stock options with a service condition to vest, which is generally four years. The Company records stock-based compensation expense for service-based stock options on a straight-line basis over the requisite service period, which is generally the option’s vesting period. These amounts are reduced by forfeitures as they occur. The Company uses the Black-Scholes-Merton option-pricing model to determine the fair value as of the grant date for stock options. RSUs The Company has granted RSUs with a performance condition, based on a liquidity event, as defined by the share agreement, as well as a service condition to vest, which is generally four years. The Company determines the fair value of RSUs based on the valuation of the Company’s common stock as of the grant date. No compensation expense is recognized for performance-based awards until the liquidity event has occurred. Subsequent to the occurrence of a liquidity event, compensation expense is recognized to the extent the requisite service period has been completed. Compensation expense is recognized on an accelerated attribution basis over the requisite service period of the awards subject to the achievement of the liquidity event. After the Company became listed, the RSUs granted are generally only subject to a service condition to vest and typically vest over four years. Compensation expense is recognized on a straight-line basis subject to a floor of the vested number of shares for each award. Market Condition RSUs The Company has granted RSUs with a performance condition, based on a liquidity event, as defined by the share agreement, as well as a market condition to vest. Subject to the employee’s continued services to the Company, the market-based conditions are satisfied upon the Company’s achievement of certain share price milestones calculated based on 60-day volume weighted average. For market-based RSUs, the Company determines the grant-date fair value utilizing Monte Carlo simulations, which incorporates various assumptions, including expected stock price volatility, contractual term, dividend yield, and stock price at grant date. The Company estimates the volatility of common stock on the date of grant based on the weighted-average historical stock price volatility of comparable publicly-traded companies. As the Company had no history of dividend payments and had not declared any prospective dividends, a 0% dividend yield was assumed. For stock-based compensation, each market-based condition is treated as an accounting unit and expense is recognized over the requisite service period with respect to each unit and only if performance-based conditions are considered probable to be satisfied. The Company determines the requisite service period by comparing the derived service period to achieve the market-based condition and the explicit service-based period, if any, using the longer of the two service periods as the requisite service period. Restricted Shares The fair value of the Restricted Shares is equal to the estimated fair value of the Company’s common stock on the grant date. The Company recognizes compensation expense for the shares on a straight-line basis over the requisite service period of the awards. The fair value of these shares will be recognized into common stock and additional paid-in-capital as the shares vest. ESPP The Company recognizes stock-based compensation expense related to purchase rights granted pursuant to the 2020 ESPP on a straight-line basis over the offering period. The Company estimates the fair value of purchase rights granted under the ESPP using the Black-Scholes option-pricing model.

DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Schedule of Impairment Loss Recognized

The impairment loss recognized during the periods presented is as follows (in millions):


	Three Months Ended March 31,
	2022		2021
General and administrative	$	—	$	1
Technology and development	—		2
Total impairment loss	$	—	$	3

REAL ESTATE INVENTORY (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Real Estate Inventory

The following table presents the components of inventory, net of applicable inventory valuation adjustments, as of the dates presented (in millions):


	March 31, 2022		December 31, 2021
Work in progress	$	1,174	$	1,971
Finished goods:
Listed for sale	1,848		2,325
Under contract for sale	1,642		1,800
Total real estate inventory	$	4,664	$	6,096

CASH, CASH EQUIVALENTS, AND INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The amortized cost, gross unrealized gains and losses, and fair value of cash, cash equivalents, and marketable securities as of March 31, 2022 and December 31, 2021, are as follows (in millions):


	March 31, 2022
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	91	$	—	$	—	$	91	$	91	$	—
Money market funds	1,920		—		—		1,920		1,920		—
Time deposit	301		—		—		301		301		—
Mutual fund	199		—		—		199		—		199
Corporate debt securities	191		—		(4)		187		—		187

Commercial paper	28		—		—		28		—		28
Equity securities	24		—		—		24		—		24
Certificates of deposit	19		—		—		19		—		19
Asset-backed securities	7		—		—		7		—		7


Total	$	2,780	$	—	$	(4)	$	2,776	$	2,312	$	464


	December 31, 2021
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	81	$	—	$	—	$	81	$	81	$	—
Money market funds	1,350		—		—		1,350		1,350		—
Time deposit	300		—		—		300		300		—
Corporate debt securities	208		—		(1)		207		—		207
Mutual fund	200		—		—		200		—		200
Equity securities	46		—		—		46		—		46
Commercial paper	15		—		—		15		—		15
Asset-backed securities	7		—		—		7		—		7
Certificates of deposit	5		—		—		5		—		5
Sovereign bonds	4		—		—		4		—		4


Total	$	2,216	$	—	$	(1)	$	2,215	$	1,731	$	484

Schedule of Unrealized Loss on Investments

A summary of debt securities with unrealized losses aggregated by period of continuous unrealized loss is as follows (in millions):


	Less than 12 Months				12 Months or Greater				Total
March 31, 2022	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Money market funds	$	295	$	—	$	—	$	—	$	295	$	—
Corporate debt securities	186		(4)		—		—		186		(4)
Commercial paper	24		—		—		—		24		—
Certificates of deposit	16		—		—		—		16		—
Asset-backed securities	7		—		—		—		7		—

Total	$	528	$	(4)	$	—	$	—	$	528	$	(4)


	Less than 12 Months				12 Months or Greater				Total
December 31, 2021	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Money market funds	$	259	$	—	$	—	$	—	$	259	$	—
Corporate debt securities	207		(1)		—		—		207		(1)
Commercial paper	15		—		—		—		15		—
Asset-backed securities	7		—		—		—		7		—
Certificates of deposit	5		—		—		—		5		—
Sovereign bonds	4		—		—		—		4		—
Total	$	497	$	(1)	$	—	$	—	$	497	$	(1)

Scheduled Contractual Maturities of Marketable Securities

The scheduled contractual maturities of debt securities as of March 31, 2022 are as follows (in millions):


March 31, 2022	Fair Value		Within 1 Year		After 1 Year through 5 Years
Corporate debt securities	$	187	$	83	$	104
Commercial paper	28		28		—
Certificates of deposit	19		19		—
Asset-backed securities	7		7		—



Total	$	241	$	137	$	104

Schedule of Non- marketable Equity Securities and Equity Method Investment

A summary of non-marketable equity securities and equity method investment balances as of March 31, 2022 and December 31, 2021 are as follows (in millions):


	March 31, 2022		December 31, 2021
Equity method investments	$	21	$	—
Non-marketable equity securities	5		5
Total	$	26	$	5

VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

The following table summarizes the assets and liabilities related to the VIEs consolidated by the Company as of March 31, 2022 and December 31, 2021 (in millions):


	March 31, 2022		December 31, 2021
Assets
Cash and cash equivalents	$	17	$	9
Restricted cash	435		838
Real estate inventory, net	4,621		6,046
Other(1)	114		113
Total assets	$	5,187	$	7,006
Liabilities
Non-recourse asset-backed debt	$	4,773	$	6,102
Other(2)	46		70
Total liabilities	$	4,819	$	6,172

________________

(1)Includes escrow receivable and other current assets.

(2)Includes accounts payable and other accrued liabilities and interest payable.

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

Schedule of Long-term Debt Instruments

CREDIT FACILITIES AND LONG-TERM DEBT (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

The following tables summarize certain details related to the Company's credit facilities and long-term debt as of March 31, 2022 and December 31, 2021 (in millions, except interest rates):


			Outstanding Amount
March 31, 2022	Borrowing Capacity		Current		Non-Current		Weighted Average Interest Rate		End of Revolving / Withdrawal Period	Final Maturity Date
Non-Recourse Asset-backed Debt:
Asset-backed Senior Revolving Credit Facilities
Revolving Facility 2018-2	$	1,000	$	236	$	—	2.93	%	September 23, 2022	December 23, 2022
Revolving Facility 2018-3	750		383		—		2.39	%	May 26, 2024	May 26, 2024
Revolving Facility 2019-1	900		663		—		2.99	%	June 30, 2023	June 30, 2023
Revolving Facility 2019-2	1,850		870		—		2.49	%	July 8, 2023	July 8, 2024
Revolving Facility 2019-3	925		428		—		3.25	%	April 5, 2024	April 5, 2025
Revolving Facility 2021-1	125		80		—		2.22	%	October 31, 2022	October 31, 2022
Asset-backed Senior Term Debt Facilities
Term Debt Facility 2021-S1	400		—		400		3.48	%	April 1, 2024	April 1, 2025
Term Debt Facility 2021-S2	600		—		500		3.20	%	September 10, 2024	September 10, 2025
Term Debt Facility 2021-S3	1,000		—		—		3.75	%	January 31, 2027	July 31, 2027
Term Debt Facility 2022-S1	250		—		250		4.07	%	March 1, 2025	September 1, 2025
Total	$	7,800	$	2,660	$	1,150
Issuance Costs					(5)
Carrying Value					$	1,145

Asset-backed Mezzanine Term Debt Facilities

Term Debt Facility 2020-M1	3,000		—		1,000		10.00	%	April 1, 2025	April 1, 2026
Term Debt Facility 2022-M1	500		—		—		10.00	%	September 15, 2025	September 15, 2026
Total	$	3,500	$	—	$	1,000
Issuance Costs					(32)
Carrying Value					$	968

Total Non-Recourse Asset-backed Debt	$	11,300	$	2,660	$	2,113

Recourse Debt - Other Secured Borrowings:
Mortgage Financing
Repo Facility 2019-R1	$	100	$	10	$	—	2.00	%	May 26, 2022	May 26, 2022
Total Recourse Debt	$	100	$	10	$	—


	Outstanding Amount
December 31, 2021	Current		Non-Current		Weighted Average Interest Rate
Non-Recourse Asset-backed Debt:
Asset-backed Senior Revolving Credit Facilities

Revolving Facility 2018-2	$	759	$	—	2.84	%
Revolving Facility 2018-3	673		—		2.39	%
Revolving Facility 2019-1	648		—		2.84	%
Revolving Facility 2019-2	1,149		—		2.52	%
Revolving Facility 2019-3	886		—		3.25	%
Revolving Facility 2021-1	125		—		2.15	%
Asset-backed Senior Term Debt Facilities
Term Debt Facility 2021-S1	—		400		3.48	%
Term Debt Facility 2021-S2	—		500		3.20	%
Term Debt Facility 2021-S3	—		—		3.75	%

Total	$	4,240	$	900
Issuance Costs			(3)
Carrying Value			$	897

Asset-backed Mezzanine Term Debt Facilities

Term Debt Facility 2020-M1	$	—	$	1,000	10.00	%

Total	$	—	$	1,000
Issuance Costs			(35)
Carrying Value			$	965

Total Non-Recourse Asset-backed Debt	$	4,240	$	1,862

Recourse Debt - Other Secured Borrowings:
Mortgage Financing
Repo Facility 2019-R1	$	7	$	—	1.84	%
Total Recourse Debt	$	7	$	—

Convertible Debt

The tables below summarizes certain details related to the 2026 Notes (in millions, except interest rates):


March 31, 2022	Aggregate Principal Amount		Unamortized Debt Issuance Costs		Net Carrying Amount
2026 Notes	$	978	$	(23)	$	955


March 31, 2022	Maturity Date	Stated Cash Interest Rate		Effective Interest Rate		Semi-Annual Interest Payment Dates	Conversion Rate	Conversion Price
2026 Notes	August 15, 2026	0.25	%	0.77	%	February 15; August 15	51.9926	$	19.23

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Fair Value Measurement Methodologies

FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities.

Asset/Liability Class

Valuation Methodology, Inputs and

Assumptions

Classification

Cash and cash equivalents

Carrying value is a reasonable estimate of fair value based on short-term nature of the instruments.

Level 1 estimated fair value measurement.

Restricted cash

Carrying value is a reasonable estimate of fair value based on short-term nature of the instruments.

Level 1 estimated fair value measurement.

Marketable securities

Debt securities

Prices obtained from third-party vendors that compile prices from various sources and often apply matrix pricing for similar securities when no price is observable.

Level 2 recurring fair value measurement.

Mutual fund

Price is quoted given the security is traded on an exchange.

Level 1 recurring fair value measurement.

Equity securities

Price is quoted given the securities traded on an exchange.

Level 1 recurring fair value measurement.

Mortgage loans held for sale pledged under agreements to repurchase

Fair value is estimated based on observable market data including quoted market prices, deal price quotes, and sale commitments.

Level 2 recurring fair value measurement.

Other current assets

Mortgage loans held for sale

Fair value is estimated based on observable market data including quoted market prices and deal price quotes.

Level 2 recurring fair value measurement.

Non-recourse asset-backed debt

Credit facilities

Fair value is estimated using discounted cash flows based on current lending rates for similar credit facilities with similar terms and remaining time to maturity.

Carried at amortized cost.

Level 2 estimated fair value measurement.

Other secured borrowings

Loans sold under agreements to repurchase

Fair value is estimated using discounted cash flows based on current lending rates for similar asset-backed financing facilities with similar terms and remaining time to maturity.

Carried at amortized cost.

Level 2 estimated fair value measurement.

Convertible senior notes

Fair value is estimated using broker quotes and other observable market inputs.

Carried at amortized cost.
Level 2 estimated fair value measurement.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the levels of the fair value hierarchy for the Company’s assets measured at fair value on a recurring basis (in millions).


March 31, 2022	Balance at Fair Value		Level 1		Level 2		Level 3
Marketable securities:
Mutual fund	$	199	$	199	$	—	$	—
Corporate debt securities	187		—		187		—
Commercial paper	28		—		28		—
Equity securities	24		24		—		—
Certificates of deposit	19		—		19		—

Asset-backed securities	7		—		7		—


Mortgage loans held for sale pledged under agreements to repurchase	11		—		11		—
Other current assets:
Mortgage loans held for sale	3		—		3		—

Total assets	$	478	$	223	$	255	$	—


December 31, 2021	Balance at Fair Value		Level 1		Level 2		Level 3
Marketable securities:
Corporate debt securities	$	207	$	—	$	207	$	—
Mutual fund	200		200		—		—
Equity securities	46		46		—		—
Commercial paper	15		—		15		—
Asset-backed securities	7		—		7		—
Certificates of deposit	5		—		5		—
Sovereign bonds	4		—		4		—


Mortgage loans held for sale pledged under agreements to repurchase	7		—		7		—
Other current assets:
Mortgage loans held for sale	4		—		4		—

Total assets	$	495	$	246	$	249	$	—

Fair Value Disclosure of Asset and Liability Not Measured at Fair Value


	March 31, 2022
	Carrying Value		Fair Value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	2,312	$	2,312	$	2,312	$	—
Restricted cash	444		444		444		—

Liabilities:
Non-recourse asset-backed debt	$	4,773	$	4,810	$	—	$	4,810
Other secured borrowings	10		10		—		10
Convertible senior notes	955		767		—		767


	December 31, 2021
	Carrying Value		Fair Value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	1,731	$	1,731	$	1,731	$	—
Restricted cash	847		847		847		—

Liabilities:
Non-recourse asset-backed debt	$	6,102	$	6,140	$	—	$	6,140
Other secured borrowings	7		7		—		7
Convertible senior notes	954		1,019		—		1,019

PROPERTY AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property and equipment as of March 31, 2022 and December 31, 2021, consisted of the following (in millions):


	March 31, 2022		December 31, 2021
Internally developed software	$	81	$	71
Computers	12		11
Security systems	12		10
Furniture and fixtures	3		3
Software implementation costs	3		3
Leasehold improvements	2		2
Office equipment	2		2
Total	115		102
Accumulated depreciation and amortization	(66)		(57)
Property and equipment – net	$	49	$	45

GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Intangible assets subject to amortization consisted of the following as of March 31, 2022 and December 31, 2021, respectively (in millions, except years):


March 31, 2022	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Remaining Weighted Average Useful Life (Years)
Developed technology	$	7	$	(3)	$	4	0.5
Customer relationships	7		(4)		3		2.4
Trademarks	5		(2)		3		2.4

Intangible assets – net	$	19	$	(9)	$	10


December 31, 2021	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Remaining Weighted Average Useful Life (Years)
Developed technology	$	7	$	(2)	$	5	0.7
Customer relationships	7		(3)		4		2.7
Trademarks	5		(2)		3		2.7

Intangible assets – net	$	19	$	(7)	$	12

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of March 31, 2022, expected amortization of intangible assets is as follows:


Fiscal Years	(In millions)
Remainder of 2022	$	6
2023	2
2024	2

Total	$	10

SHARE-BASED AWARDS (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Summary of the Stock Option Activity

A summary of the stock option activity for the three months ended March 31, 2022, is as follows:


	Number of Options (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Balance-December 31, 2021	14,546	$	2.12	4.7	$	182
Granted	—	—
Exercised	(1,896)	1.18
Forfeited	(33)	2.87
Expired	(35)	1.42
Balance-March 31, 2022	12,582	$	2.26	4.4	$	81
Exercisable-March 31, 2022	11,354	$	1.95	4.2	$	76

Summary of the RSU Activity

A summary of the RSU activity for the three months ended March 31, 2022, is as follows:


	Number of RSUs (in thousands)	Weighted- Average Grant-Date Fair Value
Unvested and outstanding-December 31, 2021	53,446	$	17.35
Granted	9,009	9.75
Vested	(4,923)	9.27
Forfeited	(878)	15.04
Unvested and outstanding-March 31, 2022	56,654	$	16.88

Summary of the Restricted Shares Activity

A summary of the Restricted Shares activity for the three months ended March 31, 2022 is as follows:


	Number of Restricted Shares (in thousands)	Average Grant-Date Fair Value
Unvested-December 31, 2021	692	$	3.91
Granted	—	—
Vested	(69)	3.02
Unvested-March 31, 2022	623	$	4.01

Summary of Assumptions Used in the Black-Scholes Model for Employee and non-Employee Stock Options


	2022
Fair value	$	3.55
Volatility	101.4		%
Risk-free rate	0.60		%
Expected life (in years)	0.5
Expected dividend	$	—

Summary of Stock-Based Compensation Expense in the Statements of Operations


	Three Months Ended March 31,
	2022		2021
General and administrative	51		197
Sales, marketing and operations	4		7
Technology and development	12		35
Total stock-based compensation expense	$	67	$	239

NET INCOME (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted


	Three Months Ended March 31,
	2022		2021
Basic net income (loss) per share:
Numerator:



Net income (loss) attributable to common shareholders – basic	$	28	$	(270)
Denominator:
Weighted average shares outstanding – basic	619,137		565,381
Basic net income (loss) per share	$	0.05	$	(0.48)
Diluted net income (loss) per share:
Numerator:




Net income (loss) attributable to common shareholders – diluted	$	28	$	(270)
Denominator:
Weighted average shares outstanding – basic	619,137		565,381
Plus: Potential common shares:
RSUs	11,043		—
Options	10,104		—
Restricted Shares	501		—
Weighted average shares outstanding - diluted	640,785		565,381
Diluted net income (loss) per share	$	0.04	$	(0.48)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	Three Months Ended March 31,
	2022	2021
Common Stock Warrants	—	19,933


RSUs	36,034	52,106
Options	150	23,965
Unvested Shares from Early Exercise	—	36
Restricted Shares	—	1,837
Employee Stock Purchase Plan	439	—

Total anti-dilutive securities	36,623	97,877

DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES - Impairment of Long-Lived Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Impairment of long-lived assets held-for-use	$ 0	$ 3
General and administrative
Finite-Lived Intangible Assets [Line Items]
Impairment of long-lived assets held-for-use	0	1
Technology and development
Finite-Lived Intangible Assets [Line Items]
Impairment of long-lived assets held-for-use	$ 0	$ 2

DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES - Stock-Based Compensation (Details)	3 Months Ended
	Mar. 31, 2022
Employee Stock Purchase Plan
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Vesting period	4 years
RSUs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Vesting period	4 years
Vesting period for awards with service condition	4 years
Expected dividend	0.00%

BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Millions	Nov. 03, 2021	Sep. 03, 2021	Mar. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill			$ 60	$ 60
Pro.com
Business Acquisition [Line Items]
Acquisition of outstanding equity (in percent)		100.00%
Cash consideration		$ 22
Goodwill		16
Pro.com \| Developed technology
Business Acquisition [Line Items]
Acquired intangible assets		$ 4
Remaining weighted average useful life (years)		1 year
RedDoor
Business Acquisition [Line Items]
Goodwill	$ 13
Total consideration transferred	15
Cash consideration paid out after closing	$ 2
Length of time after closing when deferred payment is due	1 year
RedDoor \| Developed technology
Business Acquisition [Line Items]
Acquired intangible assets	$ 3
Remaining weighted average useful life (years)	1 year

REAL ESTATE INVENTORY (Details) $ in Millions	Mar. 31, 2022 USD ($) home	Dec. 31, 2021 USD ($)
Inventory Disclosure [Abstract]
Work in progress	$ 1,174	$ 1,971
Listed for sale	1,848	2,325
Under contract for sale	1,642	1,800
Total real estate inventory	$ 4,664	$ 6,096
Amount of homes under contract to be purchased \| home	8,066
Aggregate purchase price for homes	$ 3,200

CASH, CASH EQUIVALENTS, AND INVESTMENTS - Amortized Cost (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 2,312	$ 1,731	$ 2,040
Equity securities	24	46
Total cost basis	2,780	2,216
Unrealized Gains	0	0
Unrealized Losses	(4)	(1)
Fair Value	241
Total fair value	2,776	2,215
Cash and Cash Equivalents	2,312	1,731
Equity securities, cash and cash equivalents	0	0
Equity securities, marketable securities	24	46
Marketable securities	464	484
Corporate debt securities
Cash and Cash Equivalents [Line Items]
Cost Basis	191	208
Unrealized Gains	0	0
Unrealized Losses	(4)	(1)
Fair Value	187	207
Debt securities, available-for-sale, cash and cash equivalents	0	0
Debt securities, available-for-sale, marketable securities	187	207
Commercial paper
Cash and Cash Equivalents [Line Items]
Cost Basis	28	15
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	28	15
Debt securities, available-for-sale, cash and cash equivalents	0	0
Debt securities, available-for-sale, marketable securities	28	15
Mutual fund
Cash and Cash Equivalents [Line Items]
Mutual fund	199	200
Mutual fund, cash and cash equivalents	0	0
Mutual fund, marketable securities	199	200
Asset-backed securities
Cash and Cash Equivalents [Line Items]
Cost Basis	7	7
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	7	7
Debt securities, available-for-sale, cash and cash equivalents	0	0
Debt securities, available-for-sale, marketable securities	7	7
Certificates of deposit
Cash and Cash Equivalents [Line Items]
Cost Basis	19	5
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	19	5
Debt securities, available-for-sale, cash and cash equivalents	0	0
Debt securities, available-for-sale, marketable securities	19	5
Sovereign bonds
Cash and Cash Equivalents [Line Items]
Cost Basis		4
Unrealized Gains		0
Unrealized Losses		0
Fair Value		4
Debt securities, available-for-sale, cash and cash equivalents		0
Debt securities, available-for-sale, marketable securities		4
Cash
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	91	81
Money market funds
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	1,920	1,350
Time deposit
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 301	$ 300

CASH, CASH EQUIVALENTS, AND INVESTMENTS - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash and Cash Equivalents [Abstract]
Recognized unrealized gain (loss) related to equity securities still held	$ (22,000,000)	$ 0

CASH, CASH EQUIVALENTS, AND INVESTMENTS - Summary of Debt Securities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Fair Value, Less than 12 Months	$ 528	$ 497
Unrealized Losses, Less than 12 Months	(4)	(1)
Fair Value, 12 Months or Greater	0	0
Unrealized Losses 12 Months or Greater	0	0
Fair Value, Total	528	497
Unrealized Losses, Total	(4)	(1)
Money market funds
Cash and Cash Equivalents [Line Items]
Fair Value, Less than 12 Months	295	259
Unrealized Losses, Less than 12 Months	0	0
Fair Value, 12 Months or Greater	0	0
Unrealized Losses 12 Months or Greater	0	0
Fair Value, Total	295	259
Unrealized Losses, Total	0	0
Corporate debt securities
Cash and Cash Equivalents [Line Items]
Fair Value, Less than 12 Months	186	207
Unrealized Losses, Less than 12 Months	(4)	(1)
Fair Value, 12 Months or Greater	0	0
Unrealized Losses 12 Months or Greater	0	0
Fair Value, Total	186	207
Unrealized Losses, Total	(4)	(1)
Commercial paper
Cash and Cash Equivalents [Line Items]
Fair Value, Less than 12 Months	24	15
Unrealized Losses, Less than 12 Months	0	0
Fair Value, 12 Months or Greater	0	0
Unrealized Losses 12 Months or Greater	0	0
Fair Value, Total	24	15
Unrealized Losses, Total	0	0
Certificates of deposit
Cash and Cash Equivalents [Line Items]
Fair Value, Less than 12 Months	16	5
Unrealized Losses, Less than 12 Months	0	0
Fair Value, 12 Months or Greater	0	0
Unrealized Losses 12 Months or Greater	0	0
Fair Value, Total	16	5
Unrealized Losses, Total	0	0
Asset-backed securities
Cash and Cash Equivalents [Line Items]
Fair Value, Less than 12 Months	7	7
Unrealized Losses, Less than 12 Months	0	0
Fair Value, 12 Months or Greater	0	0
Unrealized Losses 12 Months or Greater	0	0
Fair Value, Total	7	7
Unrealized Losses, Total	$ 0	0
Sovereign bonds
Cash and Cash Equivalents [Line Items]
Fair Value, Less than 12 Months		4
Unrealized Losses, Less than 12 Months		0
Fair Value, 12 Months or Greater		0
Unrealized Losses 12 Months or Greater		0
Fair Value, Total		4
Unrealized Losses, Total		$ 0

CASH, CASH EQUIVALENTS, AND INVESTMENTS - Schedule of Contractual Marketable Securities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Fair Value	$ 241
Within 1 Year	137
After 1 Year through 5 Years	104
Corporate debt securities
Cash and Cash Equivalents [Line Items]
Fair Value	187	$ 207
Within 1 Year	83
After 1 Year through 5 Years	104
Commercial paper
Cash and Cash Equivalents [Line Items]
Fair Value	28	15
Within 1 Year	28
After 1 Year through 5 Years	0
Certificates of deposit
Cash and Cash Equivalents [Line Items]
Fair Value	19	5
Within 1 Year	19
After 1 Year through 5 Years	0
Asset-backed securities
Cash and Cash Equivalents [Line Items]
Fair Value	7	$ 7
Within 1 Year	7
After 1 Year through 5 Years	$ 0

CASH, CASH EQUIVALENTS, AND INVESTMENTS - Non-marketable Equity Securities and Equity Method Investment (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Equity method investments	$ 21	$ 0
Non-marketable equity securities	5	5
Total	$ 26	$ 5

VARIABLE INTEREST ENTITIES (Details) - USD ($)
$ in Millions

Mar. 31, 2022

Dec. 31, 2021

Mar. 31, 2021

ASSETS

$ 2,312

$ 1,731

$ 2,040

444

847

Variable Interest Entity, Primary Beneficiary

4,664

6,096

TOTAL ASSETS

^[1]

8,272

9,506

Liabilities

Total liabilities

^[2]

5,925

7,258

ASSETS

435

838

Non-recourse asset-backed debt

4,621

6,046

Other

114

113

TOTAL ASSETS

5,187

7,006

Liabilities

4,773

6,102

Other

Total liabilities

$ 4,819

$ 6,172

[1]

[2]

CREDIT FACILITIES AND LONG-TERM DEBT - Summary of Credit Facilities and Long-Term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Line of Credit
Debt Instrument [Line Items]
Borrowing Capacity	$ 11,300
Net Carrying Amount	2,113	$ 1,862
Outstanding, current	2,660	4,240
Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	7,800
Outstanding amount, current	2,660	4,240
Outstanding amount, noncurrent	1,150	900
Issuance costs	(5)	(3)
Net Carrying Amount	1,145	897
Line of Credit \| Asset-backed Mezzanine Term Debt Facilities
Debt Instrument [Line Items]
Borrowing Capacity	3,500
Outstanding amount, current	0	0
Outstanding amount, noncurrent	1,000	1,000
Issuance costs	(32)	(35)
Net Carrying Amount	968	965
Secured Debt
Debt Instrument [Line Items]
Borrowing Capacity	100
Net Carrying Amount	0	0
Outstanding, current	10	7
Secured Debt \| Repo Facility 2019-R1
Debt Instrument [Line Items]
Borrowing Capacity	100
Outstanding amount, current	10	7
Outstanding amount, noncurrent	$ 0	$ 0
Weighted average interest rate (in percent)	2.00%	1.84%
Revolving Facility 2018-2 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 1,000
Outstanding amount, current	236	$ 759
Outstanding amount, noncurrent	$ 0	$ 0
Weighted average interest rate (in percent)	2.93%	2.84%
Revolving Facility 2018-3 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 750
Outstanding amount, current	383	$ 673
Outstanding amount, noncurrent	$ 0	$ 0
Weighted average interest rate (in percent)	2.39%	2.39%
Revolving Facility 2019-1 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 900
Outstanding amount, current	663	$ 648
Outstanding amount, noncurrent	$ 0	$ 0
Weighted average interest rate (in percent)	2.99%	2.84%
Revolving Facility 2019-2 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 1,850
Outstanding amount, current	870	$ 1,149
Outstanding amount, noncurrent	$ 0	$ 0
Weighted average interest rate (in percent)	2.49%	2.52%
Revolving Facility 2019-3 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 925
Outstanding amount, current	428	$ 886
Outstanding amount, noncurrent	$ 0	$ 0
Weighted average interest rate (in percent)	3.25%	3.25%
Revolving Facility 2021-1 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 125
Outstanding amount, current	80	$ 125
Outstanding amount, noncurrent	$ 0	$ 0
Weighted average interest rate (in percent)	2.22%	2.15%
Term Debt Facility 2021-S1 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 400
Outstanding amount, current	0	$ 0
Outstanding amount, noncurrent	$ 400	$ 400
Weighted average interest rate (in percent)	3.48%	3.48%
Term Debt Facility 2021-S2 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 600
Outstanding amount, current	0	$ 0
Outstanding amount, noncurrent	$ 500	$ 500
Weighted average interest rate (in percent)	3.20%	3.20%
Term Debt Facility 2021-S3 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 1,000
Outstanding amount, current	0	$ 0
Outstanding amount, noncurrent	$ 0	$ 0
Weighted average interest rate (in percent)	3.75%	3.75%
Term Debt Facility 2022-S1 \| Line of Credit \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 250
Outstanding amount, current	0
Outstanding amount, noncurrent	$ 250
Weighted average interest rate (in percent)	4.07%
Term Debt Facility 2020-M1 \| Line of Credit \| Asset-backed Mezzanine Term Debt Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 3,000
Outstanding amount, current	0	$ 0
Outstanding amount, noncurrent	$ 1,000	$ 1,000
Weighted average interest rate (in percent)	10.00%	10.00%
Term Debt Facility 2022-M1 \| Line of Credit \| Asset-backed Mezzanine Term Debt Facilities
Debt Instrument [Line Items]
Borrowing Capacity	$ 500
Outstanding amount, current	0
Outstanding amount, noncurrent	$ 0
Weighted average interest rate (in percent)	10.00%

CREDIT FACILITIES AND LONG-TERM DEBT - Non-Recourse Asset-backed Debt (Details) - Line of Credit $ in Millions	Mar. 31, 2022 USD ($)
Debt Instrument [Line Items]
Borrowing capacity	$ 11,300
Asset Back Senior Credit Facility and Mezzanine Term Debt Facilities
Debt Instrument [Line Items]
Borrowing capacity	11,300
Fully committed borrowing capacity	$ 8,400

CREDIT FACILITIES AND LONG-TERM DEBT - Asset Backed Senior Credit Facilities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Credit facility, outstanding amount, noncurrent liabilities	$ 2,113,000,000	$ 1,862,000,000
Convertible Debt \| Senior Convertible Notes 2026
Debt Instrument [Line Items]
Unamortized Debt Issuance Costs	$ (23,000,000)
Multiple Senior Revolving Credit Facilities \| Revolving Credit Facility
Debt Instrument [Line Items]
Term	24 months
Multiple Senior Revolving Credit Facilities \| Revolving Credit Facility \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Fully committed borrowing capacity	$ 4,000,000,000
Credit facility, outstanding amount, noncurrent liabilities	1,200,000,000
Unamortized Debt Issuance Costs	(5,000,000)
Multiple Term Loan Facilities \| Revolving Credit Facility \| Asset-backed Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Fully committed borrowing capacity	$ 1,900,000,000
Debt instrument, term, withdrawal period, maximum	60 months

CREDIT FACILITIES AND LONG-TERM DEBT - Asset-backed Mezzanine Term Debt Facilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Non-current liabilities	$ 2,113	$ 1,862
Revolving Credit Facility \| Asset-backed Mezzanine Term Debt Facilities
Debt Instrument [Line Items]
Debt instrument, term, withdrawal period, maximum	42 months
Revolving Credit Facility \| Asset-backed Mezzanine Term Debt Facilities \| Multiple Senior Revolving Credit Facilities
Debt Instrument [Line Items]
Fully committed borrowing capacity	$ 2,500
Non-current liabilities	1,000
Issuance costs	$ (32)

The carrying value as of the balance sheet date of the noncurrent portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

CREDIT FACILITIES AND LONG-TERM DEBT - Mortgage Financing (Details) - Secured Debt $ in Millions	Mar. 31, 2022 USD ($)
Debt Instrument [Line Items]
Aggregate Principal Amount	$ 11
Repo Facility 2019-R1
Debt Instrument [Line Items]
Principal amount	100
Amount fully committed	$ 20

CREDIT FACILITIES AND LONG-TERM DEBT - Convertible Senior Notes (Details) - Senior Convertible Notes 2026 - Convertible Debt	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares	Aug. 31, 2021 USD ($)
Debt Instrument [Line Items]
Stated Cash Interest Rate	0.25%	0.25%
Principal amount		$ 978,000,000
Aggregate Principal Amount	$ 978,000,000
Unamortized Debt Issuance Costs	(23,000,000)
Net Carrying Amount	$ 955,000,000
Effective Interest Rate	0.77%
Conversion Rate	0.0519926
Conversion price (in dollars per share) \| $ / shares	$ 19.23
Interest expense	$ 2,000,000
Coupon interest	1,000,000
Amortization of debt issuance costs	$ 1,000,000

CREDIT FACILITIES AND LONG-TERM DEBT - Capped Calls (Details) $ / shares in Units, $ in Millions	1 Months Ended
	Aug. 31, 2021 USD ($) $ / shares
Debt Instrument [Line Items]
Capped calls cap price premium	100.00%
Call Option
Debt Instrument [Line Items]
Capped calls cost \| $	$ 119
Capped calls strike price (in dollars per share)	$ 19.23
Capped calls cap price (in dollars per share)	$ 29.59

FAIR VALUE DISCLOSURES - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets, Fair Value Disclosure [Abstract]
Total assets	$ 478	$ 495
Level 1
Assets, Fair Value Disclosure [Abstract]
Total assets	223	246
Level 2
Assets, Fair Value Disclosure [Abstract]
Total assets	255	249
Level 3
Assets, Fair Value Disclosure [Abstract]
Total assets	0	0
Mutual fund
Assets, Fair Value Disclosure [Abstract]
Marketable securities	199	200
Mutual fund \| Level 1
Assets, Fair Value Disclosure [Abstract]
Marketable securities	199	200
Mutual fund \| Level 2
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Mutual fund \| Level 3
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Corporate debt securities
Assets, Fair Value Disclosure [Abstract]
Marketable securities	187	207
Corporate debt securities \| Level 1
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Corporate debt securities \| Level 2
Assets, Fair Value Disclosure [Abstract]
Marketable securities	187	207
Corporate debt securities \| Level 3
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Commercial paper
Assets, Fair Value Disclosure [Abstract]
Marketable securities	28	15
Commercial paper \| Level 1
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Commercial paper \| Level 2
Assets, Fair Value Disclosure [Abstract]
Marketable securities	28	15
Commercial paper \| Level 3
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Equity securities
Assets, Fair Value Disclosure [Abstract]
Marketable securities	24	46
Equity securities \| Level 1
Assets, Fair Value Disclosure [Abstract]
Marketable securities	24	46
Equity securities \| Level 2
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Equity securities \| Level 3
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Certificates of deposit
Assets, Fair Value Disclosure [Abstract]
Marketable securities	19	5
Certificates of deposit \| Level 1
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Certificates of deposit \| Level 2
Assets, Fair Value Disclosure [Abstract]
Marketable securities	19	5
Certificates of deposit \| Level 3
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Asset-backed securities
Assets, Fair Value Disclosure [Abstract]
Marketable securities	7	7
Asset-backed securities \| Level 1
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Asset-backed securities \| Level 2
Assets, Fair Value Disclosure [Abstract]
Marketable securities	7	7
Asset-backed securities \| Level 3
Assets, Fair Value Disclosure [Abstract]
Marketable securities	0	0
Sovereign bonds
Assets, Fair Value Disclosure [Abstract]
Marketable securities		4
Sovereign bonds \| Level 1
Assets, Fair Value Disclosure [Abstract]
Marketable securities		0
Sovereign bonds \| Level 2
Assets, Fair Value Disclosure [Abstract]
Marketable securities		4
Sovereign bonds \| Level 3
Assets, Fair Value Disclosure [Abstract]
Marketable securities		0
Mortgage loans held for sale pledged under agreements to repurchase
Assets, Fair Value Disclosure [Abstract]
Mortgages held-for-sale	11	7
Mortgage loans held for sale pledged under agreements to repurchase \| Level 1
Assets, Fair Value Disclosure [Abstract]
Mortgages held-for-sale	0	0
Mortgage loans held for sale pledged under agreements to repurchase \| Level 2
Assets, Fair Value Disclosure [Abstract]
Mortgages held-for-sale	11	7
Mortgage loans held for sale pledged under agreements to repurchase \| Level 3
Assets, Fair Value Disclosure [Abstract]
Mortgages held-for-sale	0	0
Mortgage loans held for sale
Assets, Fair Value Disclosure [Abstract]
Mortgages held-for-sale	3	4
Mortgage loans held for sale \| Level 1
Assets, Fair Value Disclosure [Abstract]
Mortgages held-for-sale	0	0
Mortgage loans held for sale \| Level 2
Assets, Fair Value Disclosure [Abstract]
Mortgages held-for-sale	3	4
Mortgage loans held for sale \| Level 3
Assets, Fair Value Disclosure [Abstract]
Mortgages held-for-sale	$ 0	$ 0

FAIR VALUE DISCLOSURES - Fair Value Disclosure of Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Level 1
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash and cash equivalents	$ 2,312	$ 1,731
Non-recourse asset-backed debt	0	0
Other secured borrowings	0	0
Convertible senior notes	0	0
Level 1 \| Restricted Cash
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash and cash equivalents	444	847
Level 2
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash and cash equivalents	0	0
Non-recourse asset-backed debt	4,810	6,140
Other secured borrowings	10	7
Convertible senior notes	767	1,019
Level 2 \| Restricted Cash
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash and cash equivalents	0	0
Reported Value Measurement
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash and cash equivalents	2,312	1,731
Non-recourse asset-backed debt	4,773	6,102
Other secured borrowings	10	7
Convertible senior notes	955	954
Reported Value Measurement \| Restricted Cash
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash and cash equivalents	444	847
Estimate of Fair Value Measurement
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash and cash equivalents	2,312	1,731
Non-recourse asset-backed debt	4,810	6,140
Other secured borrowings	10	7
Convertible senior notes	767	1,019
Estimate of Fair Value Measurement \| Restricted Cash
Fair Value, Option, Quantitative Disclosures [Line Items]
Cash and cash equivalents	$ 444	$ 847

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	3 Months Ended
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 115		$ 102
Accumulated depreciation and amortization	(66)		(57)
Property and equipment – net	49		45
Depreciation and amortization expense	9	$ 6
Internally developed software
Property, Plant and Equipment [Line Items]
Property, plant and equipment	81		71
Computers
Property, Plant and Equipment [Line Items]
Property, plant and equipment	12		11
Security systems
Property, Plant and Equipment [Line Items]
Property, plant and equipment	12		10
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment	3		3
Software implementation costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment	3		3
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	2		2
Office equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 2		$ 2

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill acquisition cost	$ 0		$ 29,000,000
Goodwill, impairment loss	0	$ 0
Amortization expense of intangible assets	$ 2,000,000	$ 1,000,000

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Indefinite-lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 19	$ 19
Accumulated Amortization	(9)	(7)
Net Carrying Amount	10	12
Developed technology
Indefinite-lived Intangible Assets [Line Items]
Gross Carrying Amount	7	7
Accumulated Amortization	(3)	(2)
Net Carrying Amount	$ 4	$ 5
Remaining Weighted Average Useful Life (Years)	6 months	8 months 12 days
Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 7	$ 7
Accumulated Amortization	(4)	(3)
Net Carrying Amount	$ 3	$ 4
Remaining Weighted Average Useful Life (Years)	2 years 4 months 24 days	2 years 8 months 12 days
Trademarks
Indefinite-lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 5	$ 5
Accumulated Amortization	(2)	(2)
Net Carrying Amount	$ 3	$ 3
Remaining Weighted Average Useful Life (Years)	2 years 4 months 24 days	2 years 8 months 12 days

GOODWILL AND INTANGIBLE ASSETS - Expected Amortization of Intangible Assets (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 6
2023	2
2024	2
Net Carrying Amount	$ 10	$ 12

SHAREHOLDERS’ EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 11, 2021	Feb. 09, 2021
Public Offering And Over-Allotment Option
Class of Stock [Line Items]
Shares sold (in shares)		32,817,421
Common stock price per PIPE Shares (in dollars per share)		$ 27.00
Net proceeds from offering		$ 859
Over-Allotment Option
Class of Stock [Line Items]
Shares sold (in shares)	4,280,533

SHARE-BASED AWARDS - Stock Options and RSUs Information (Details)	3 Months Ended
	Mar. 31, 2022
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Vesting period	4 years
Incentive Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	5 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

SHARE-BASED AWARDS - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Number of Options
Beginning balance (in shares)	14,546
Granted (in shares)	0
Exercised (in shares)	(1,896)
Forfeited (in shares)	(33)
Expired (in shares)	(35)
Ending balance (in shares)	12,582	14,546
Exercisable (in shares)	11,354
Weighted-Average Exercise Price
Beginning balance (in dollars per share)	$ 2.12
Granted (in dollars per share)	0
Exercised (in dollars per share)	1.18
Forfeited (in dollars per share)	2.87
Expired (in dollars per share)	1.42
Ending balance (in dollars per share)	2.26	$ 2.12
Exercisable (in dollars per share)	$ 1.95
Weighted-Average Remaining Contractual Term (in years) and Aggregate Intrinsic Value
Weighted-average remaining contractual term (in years), outstanding	4 years 4 months 24 days	4 years 8 months 12 days
Weighted-average remaining contractual term (in years), exercisable	4 years 2 months 12 days
Aggregate intrinsic values	$ 81	$ 182
Exercisable, aggregate intrinsic value	$ 76

SHARE-BASED AWARDS - RSU and Restricted Share Activity (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2022 $ / shares shares
RSUs
Number of RSUs
Beginning balance (in shares) \| shares	53,446
Granted (in shares) \| shares	9,009
Vested (in shares) \| shares	(4,923)
Forfeited (in shares) \| shares	(878)
Ending balance (in shares) \| shares	56,654
Weighted- Average Grant-Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 17.35
Granted (in dollars per share) \| $ / shares	9.75
Vested (in dollars per share) \| $ / shares	9.27
Forfeited (in dollars per share) \| $ / shares	15.04
Ending balance (in dollars per share) \| $ / shares	$ 16.88
Restricted Shares
Number of RSUs
Beginning balance (in shares) \| shares	692
Granted (in shares) \| shares	0
Vested (in shares) \| shares	(69)
Ending balance (in shares) \| shares	623
Weighted- Average Grant-Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 3.91
Granted (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	3.02
Ending balance (in dollars per share) \| $ / shares	$ 4.01

SHARE-BASED AWARDS - Restricted Shares (Details) - Restricted Shares	3 Months Ended
	Mar. 31, 2022
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

SHARE-BASED AWARDS - ESPP (Details) - Employee Stock Purchase Plan	3 Months Ended
	Mar. 31, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Calendar year limitation on contributions	$ 25,000
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payroll deductions	15.00%
Common stock discount on 1000 shares per employee	15.00%
Employee payroll contributions with held	$ 1,000,000
Estimated unrecognized compensation expense	$ 1,000,000
Recognized over remaining term of offering period	5 months

SHARE-BASED AWARDS - Fair Value Assumptions (Details) - Employee Stock Purchase Plan - Employee Stock Purchase Plan	3 Months Ended
	Mar. 31, 2022 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value	$ 3.55
Volatility	101.40%
Risk-free rate	0.60%
Expected life (in years)	6 months
Expected dividend	0.00%

SHARE-BASED AWARDS - Expense and Capitalized (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 67	$ 239
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	51	197
Sales, marketing and operations
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	4	7
Technology and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 12	$ 35

SHARE-BASED AWARDS - Stock-Based Compensation Expense (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) marketConditionAward	Mar. 31, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 67	$ 239
Market Condition Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards with satisfied market conditions \| marketConditionAward	0
Unvested Stock Options and Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized stock-based compensation	$ 632
Unamortized stock-based compensation period (in years)	2 years 9 months 18 days

WARRANTS - Public and Sponsor Warrants (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Jul. 09, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Class of Warrant or Right [Line Items]
Warrants to purchase shares (in shares)		19,933,333
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001		$ 0.0001
Proceeds from warrant exercise	$ 22
Warrant fair value adjustment		$ 0	$ 15
Public Warrants
Class of Warrant or Right [Line Items]
Warrants to purchase shares (in shares)	13,799,947
Warrants exercised (in shares)	874,739
Exercise price of warrants (in dollars per share)	$ 11.50
Warrants exercised on a cashless basis (in shares)	12,521,776
Common stock received in exchange for warrants (in shares)	4,452,659
Private Warrants
Class of Warrant or Right [Line Items]
Warrants to purchase shares (in shares)	6,133,333
Warrants exercised (in shares)	1,073,333
Exercise price of warrants (in dollars per share)	$ 11.50
Warrants exercised on a cashless basis (in shares)	5,060,000
Common stock received in exchange for warrants (in shares)	1,799,336

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income tax provision	$ 300	$ 100
Effective tax rate	1.00%	(0.03%)

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.