Opendoor (OPEN) 25 Feb 222021 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Opendoor Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Elise Wang, Vice President of Investor Relations. Thank you. Please go ahead.

afternoon. good and you, Thank our Full details available which management are section and be our our earnings results of Relations in Investor letter, on additional at release investor.opendoor.com. found commentary the of website and can shareholder will that website. on corporate the simultaneously note section Please be the Relations of webcast call this company's Investor

and strategy market nor and plans, and future those actual regarding and for federal discussion statements involve differ here. within operations. and statements statements the opportunity Before uncertainties we promises to expansion financial like limited forward-looking neither to would management cause Opendoor's including, remind may from you not of results financial contains are objectives the securities anticipated that start, risks These I that laws, materially guarantees but the discussed performance, following condition, meaning to, business

Form Additional periodic except to measures certain references as based from these differ annual believes Risk section results are required current financial them, contains Any SEC to of supplemental otherwise, measures. update information new Opendoor's by financial Opendoor whether to of in other filed discussion of or conference law. performance. and financial investors following company's ended the to with to responses forward-looking as and management's as operational forward-looking useful the be are expectations and assumes The assumptions filings. statements on or for measurements your non-GAAP actual could developments revise and The today, call, no recent on obligation the that in non-GAAP be evaluate found a December to this company XX, made result Factors XX-K including Opendoor's to questions, most statements XXXX, SEC the year cause can report

Chief Wu, investor.opendoor.com. Executive financial the and Eric non-GAAP most over call a Opendoor. our at to comparable Officer website please to these the of of each Co-Founder, will directly I now GAAP For metric, measures Chairman see reconciliation of turn

afternoon. Good

On our with is Wheeler, me our Ah Officer; Carrie Kee, Chief President. call Financial Low the and Andrew

are usual, let's start Opendoor of Presentation] impact at we on on Our one do the the everything that customers center [Audio/Video lives. by their from them of has hearing and had per

proud We have the with sale we're growth to up of we but like a delivered in ambitious one Thomas’, pricing the XXXX $XX In in year-over-year. move by was experience, top for nearly and on our metrics. only growth XXX% and away profit, their investments operations so buy, seamlessly over was demonstrated from in in prior unit year. across growth the ourselves our key financial And positive versus in year. up contribution this EBITDA, million growth financial results previous million we These from revenue booked million $XXX the adjusted and $XXX We years, XXX% and tremendous significantly platform. forward of technology, targets our and our expectations This consumer the pulled execution and result focused outperforming our set consumer further profits, helping who their year and centered can offline honored shifting generation where billion not in trusted towards they move lead be families also us consumers home transaction. purchase, sell around simple heading, are that can with home and generated XX a process their agents just mobile representing digital experience, disjointed revenue, months, a device. we $X last the where

on centered our our improving terms differentiating experience our experience, and experience. consumer our In work seller of we buyer

inspection to assessments, sell. customer complete the home focus sellers, themselves. friction sellers on assessments, For inspection launched virtually. steps of a to the launched virtual home the an complete allowing self-service And then We home reducing and ability we automation we to giving

our XX% gives of costly digital for and existing we double of which impactful our winning X personalization customers combined customers is Opendoor costly their and the moves. mortgages a double offer it and selling a our by timeline and will lengthy Furthermore, increases power and control wealthy. home moving disparate gives and mortgage new Complete, backed buying Pro.com an teams, acquired RedDoor, eliminates and Skylight work and exclusive processes enabling XXXX cash, a NPS because your sellers has and all With The both of their This make this dream of homebuyers, at which we to north simple in efforts Opendoor high in Backed home so experience. significantly our XX of which home Offers, For was of north superpower, the seller come. to of historically chances of been launched home launch into result one we conversion of buyers very their XXXX. years real

consumer We offerings. our homebuilders, rapid XX, new are partnerships markets, Realtor.com, year up better increase market In XX from number and demonstrating and we of with in sites brought of very XX in a a the over systems, with partnering more extended playbooks the the online such this our growth, as scalability our total now with solution. of terms We giving serving. and marked addition homebuilders sellers our coverage service of customers of a home robustness

our the We and processes. with a improvements. This level more pricing points ago. multiple move, made significant labor also Last significantly of of registered also to Opendoor to almost and centralization XX% over core similar cost an virtualization years operation acquisitions. led offer and and X.X beyond. XXX XXXX, who our and has our as ability requesting resulted Furthermore, this in staffing technology, from in awareness in yet least, growth Scout, were and in operational home homeowners also system, and our from our homeowners improvements not Xx times as saw XXXX previous will structure well operations ready We improved platforms dramatically repairs, home X which increases who customers Opendoor turnaround deliver of resulted year. faster to assessments at in drive reengaging of enabled last us This help years, our basis to but improvements efforts not new in million over in reengagement

analyzed continued of assessed, our system each of We of in task. ingested data image signals. and points variance and including our data we our secret by pricing we XX%. and to hundreds buybox We led data significant a over our expansion This as home reduction about investments new demand millions pricing pricing individual work points, is the of

while Looking steps profit. XXXX, growing a big contribution fully audience, will forward and digital for to take our we significantly towards revenue our vision experience,

customer expand First, grow positive we we of suite seeing, Buy part our Complete are offerings. of and given and the as Opendoor with product Opendoor feedback will

some to in recently markets to SF continue will of nationwide, the such Bay as largest U.S., expand We more the launched Area. including markets

costs We the our consumers will platform, automation contribution lowest to and margins. goal in will continue invest which to of lower scalability, lead and expanded for having cost

homes We insights on data will price necessary flow the an build home. and to finally, acquire more and personalization our a when scale. continue financing we of differentiated top buying home pricing to to home checkout will deeply e-commerce-like pricing company And being engine, only at into the integrate

I for transitions. in it delighting Given and strength Opendoor life servicing I'll QX work our the to to turn one Carrie tireless the defining important for a our now of market over their our XXXX Opendoor. innovations and customers of most and focus, for discuss financial in to year. executional year be during expectations performance leadership teammates your to Last, thank want flight, our prove will team, and

to Adjusted Eric. and year-on-year to momentum. record XXXX is up Thanks, QX up entering the to a range we're with expected million revenue EBITDA year million, at expected at XXXX $X.X between midpoint. be $XX was XXX% the for billion year-over-year the Opendoor, midpoint. $XX is in million to strong $XX billion, be of $X.X

on including and strong outlook. in then of key I'll address fourth quarter the the Let highlights me first for touch base XXXX, finish some our financial our

in you'll we resale guidance. we today. always, shareholder by the billion than the year. us revenue, in that came was demand. went end details year We at delivered of higher finished year As when operating up years the fourth into This our $X.X XXXX. versus the record and strong revenue letter in all XXXX. to pace capabilities, of quarter, meaningfully the $X sales to X we a most XXX% driven than plan we And billion the total we a the public at ended with, again, market exceeded find market outperformance more prior importantly, Once in ahead lean published X,XXX% enabling that with our We

in margin contribution was Our was X% the quarter, line fourth which expectations. with internal in our

driven with up XXXX. QX that X,XXX% reminder, exceeded was favorable indicated the in we Acquisitions balanced our is the the a by QX fourth repair temporary we X,XXX to seamless million the over XXXX. versus million with with we trajectory system-wide reflection in for related X% indicated in list our was manage million sold and capabilities to the X,XXX X.X% positive housing Adjusted were XXXX part deliver This to $X.X during system's ended the was pace homes us manage of the $XX XX,XXX relative the margins with the a enabling back which what representing forecasting. the inventory, in of year highly our despite to for when XXXX, homes homes shortages ended year of and X% our of a moderated increase a value, throughout total backlog in in of decisions us contribution operations customer volume we've to with and $X.X $XX allowed last factors year. our underwriting homes negative was impacting in and HPA we industry. billion EBITDA quarter. conservative guardrails year ensure inventory experience first That what As of mix to to we labor homes trade acquisition We in relative in guided our capacity to the to volume XXx could our QX, purchased We expectations annually. quarter We versus consistent line a capacity. margin by quarter,

result, a strength. entered a from we As position QX of

built holding to the call and management, metric of operational offer insight new We to of flexibility, inventory health including historical inventory timelines our repair inventory a maintain we for in new capacity overall our disciplined out periods. we're that into I We've is highly and back our approach Our portfolio. providing are the manage a duration how greater to acquisitions norms. healthy. more

home our number As that was the days listed part of of we market. the on that, track

this only which listed for in well when which our X% year-end, manage days market, XXX to. within Moreover, more had of that our healthier been XXX filtered the than of homes than inventory of than range the XX% we listed that the homes far more our market As for for indicates days, is metric is have buybox.

guidance. now Turning our to

the entered We quarter inventory QX with we between to we're Therefore, elevated the would billion, XXX% billion to our a demand seeing first first to revenue year-over-year have us As the earlier, sell-through expect represents be some $X.X enable revenue we $X.X the quarter. high which in will pull I landed meet midpoint. strong growth in resulting QX in which expect in a mentioned balance, ordinarily at that and homes. rate into housing for of market,

continue precision margin year, year-on-year. representing million which over expect difficult versus adjusted our platform to and at it's close, for to marketing. represents EBITDA, margins and adjacent While is expected midpoint to forecasted that delta invest between which $XX between in services in QX, billion contribution generate be half is margin range. million, $XX the sequentially with guidance. $X revenue QX, pricing we up of a and consistent with XXX% exactly to we $XX X.X% growth be we EBITDA is Adjusted up when the the across approximately Contribution Adjusted first to transactions the be our million predict expected as are expected capabilities, scaling, define of approximately to OpEx,

of Before want an year customers shareholders progress questions, at to our your for incredible all Eric support call echo open and Opendoor the in and and for our of I teammates, thank was I what our growth.

I'll the provide vision and certain. We call now that selling end-to-end open that, home Thank And are questions. is on focused energized simple, buying you. experience we're and up delivering to an on fast our and for with

comes first Stephen of Instructions] the question from Your from [Operator Ju Credit line Suisse.

inventory. and So crucial was access to ability Carrie, Eric old to capital pretty an purchase your to

So in lines growth as existing of been there's in sort would additional about to changes there change you for credit credit terms prepare XXX XX also, lines? in terms we about thinking which additional holding inventory is I historically your access anything And from future, in period, believe any of be talk was to potential bankers of around and the the days? whether you stance should your to

this. take Carrie let I'll Stephen. Thanks,

respect growth with our for financing, XXXX. in what so hand we're to to plan with our we Stephen, have today well support capitalized

our if home think north the over for billion about across of firepower. of that We terms acquisition year, billion have $XX financing you the be how of work inventory. course $XX would And of

have exit of in terms We seen category. change with ability other the in lenders, a to of since our financing from not attract -- our our people

In What fact, you There's we holding the homes periods, added homes to we QX. we we've increase to list be sell. to prelist fall. the acquired historical that how and year acquire periods QX our exit list of that facility acquired in repair when about think the that around overall in saw when respect elongated function until that QX. we an your hold we backlog want as working X to lots of then work through we hold of there's in -- a with inventory, back question in actually to was of in we standards. is we of some since When and through we timeline, we did in see we segments. And terms sort QX the we period, moment With where what call

from question from line comes Helfstein Jason Oppenheimer. Your of the next

Two questions.

think, First, revenue than were gross in think profit of more better, but I I came in line. looking for, was us many

kind of help the us any just gross on of of And with just just and maybe revenue, attach ancillary you of the of line? a of kind the quarter? then products end Would line on this be the updated time to just by dynamics, comment maybe so maybe mix as the of and percent year? profit And some understand expect kind an attached kind maybe

book And and part where revenue contribution ended hand With having overall we be first to Delivery that of intentionally which gross we saw $XXX we then feel the margin did how a capacity homes more the that up systems very about into now good to to ended really systems in coming targets talked Andrew we And sure and I'll QX degrade experience and we for that up to hand, with inventory capacity expectations then and to CM landed QX, respect then QX, to we what the we of of EBITDA out line met to over. year. you then take we down we're customer lot well healthy make and I'll all, to our not about of back decision hand it our financial our and set wanting free the to Jason, million and line it beyond about first walk guidance. on quarter, the we be. Part a where well line that line X. the in did. in with EBITDA margin clear over up talk want made to inventory

one first markets on step, the mortgage, market agencies run they're to the approach delivering it first integrating all of in growing it experience, the are now services long-term Taking our to building the business, scale is then rate some on of best to become On step We've We're which over to consumer We're signals. maximize title and goals well. the it our Opendoor. $XX Jason, billion. the those experience seeing to on largest margins. to a positive focus then seamlessly with is Sure. for and core but in rest quickly, the is to on and offerings to buyer compared exceptionally services, country. adjacent still which small perform business our of grown back, our continued a title

targeted in a few XX, Our currently buyer and we're increasing NPS awareness markets. is

a approach to we Additionally, acquired X% this to the to margin where the long-term experience right know, from as of believe goal one is quarter, mortgage X% single experience, it on first focusing on we RedDoor. in you the We customer contribution digits. later the deliver it high we is believe fourth scale increasing best-in-class launch in of the our and expect to We half.

next Goldman line the Michael question of Your comes Sachs. from Ng from

I could. if Just two,

and just strong And you sequentially. then margin that on wondering an I that driving a talk could more improvement? XQ First, it for improvement sounds guidance there's commentary gross and the about implied bit if in little adjusted around based implied margin like EBITDA quick was the OpEx, have a what's gross I follow-up.

sequential OpEx Michael, basis, relative yes, respect be contribution the for With improvement seeing in know, guardrail guide to we annual first guided but are within that no, to you're right. what well as on that exactly then and gave, to the We X% we an QX EBITDA look margins manage, you to to in QX. we'll X% quarter. for we

Great. more does first outlook half. Is was the I a wondering just And at about for what bit does macroeconomic if all? could for current how the I that guess that the in talk affect then revenue outlook little if imply that, quarter? billion And moderating? the $X you purchases first

to Yes, address I'm happy that.

now of implied we're first will robust is is homes We the people want give the seeing what what's half we about our rate. demand seeing We're bit our that a for a very to context continue. shape the market potential of incredible guide, for healthy and year. right strong sell-through little a and So housing QX within

revenue revenue with what from really the and year-over-year sorry, fantastic I'm in for in So bit guide. still excellent QX QX. indicate both a good -- billion up Year-over-year, little another $X revenue pull quarter-on-quarter trying growth, that's XXX-plus QX, quarter, into a We quarters. we're really record may to percent of

what trying first guide. the half indicate to that's with we're So

Markets. Capital Your next Yruma question of comes Edward line from KeyBanc from the

I XX% as just Opendoor understand, do go focus are guess in I the business. repeat. relative of the Complete to still of use know a you could a impressive that to to I will all wanted want understand you required stick investment more, given is where said then I the Or set? the time? it's first, that's transactions pretty And over And kind a of what of driven that medium by little business? term. reengaged think surprising big bit of just number feel that level think do guess, follow-up, within that be guess I like you kind I

Thanks, to Ed. I'll pass I'll for first part, the and second take part. the Andrew

registered sellers the the a Andrew our pulling that convert with previously our that future, grown through ability into and pattern surprised current then and and been in large into the things of pool years for for speak Complete. years what interested reengage have us sold is We they we've can haven't had And customers as Opendoor pool pool. customers market, homeowners. to be the home forward to I'll what sellers. that potential of them the by of quarters into in offering who to sold not worth will One come. that of reengage that is haven't we we've And understanding to historically, in Opendoor, able are tap been we've with and to us people unlock see where have their

And a and markets. now right small. early And raising amongst the the also that sellers few We're with that of in the pretty that launched sellers investment are selling the target early a our we buying journey. November. Complete seamless days, just still by Opendoor together belief with with taking signal. into could we we're incremental It's launched Sure. brings Complete who associated experience. help just is we Complete their on back, one Opendoor buying step focused And excited in X/X and awareness

line Nagle comes from America. of of Bank Your next Curtis question the from

rate. make go sure commentary to in what that to to what But first to drove and the guess, the what I not you decline due quarter? the that to quarter drove, up implication relative XQ, yes, to clearing margin. expect go just, was wanted on do X.X% What gross sequential back understand think Or XQ? sure homes? the I contribution I was I in Just margin the And I'm understood we for talked

take Yes, Curtis. to I'm that, happy

back sold we really kind rebuilding back, been that knew explicit we year, part we've balance. factors our of of part normal very came X when or fact what as was into was deliberately half the years trajectory on into step relative some drove X.X the in -- about decisions would into flowed the think trajectory, during to first were underwriting large market, year. of margins we with with the the was for for second that had So around kind to you $X that margin excessive, of turn the excess the having margin if good given the X% inventory inventory, high no dissipate And very, essentially our XXXX back temporary inventory first margins. was driving billion we the that the the X% we kind a we came relatively but of Again, the relative and made and realized to what of and course we the resales, came was conservative One that and HPA COVID up. to into guardrail. year That that that very time through that of

that we wasn't we is on we call it gross margin trajectory year like that long. all disclosed missed for the So

contribution will flow the QX, and that's back increases what to QX. gross is that to also seeing through So margin margin. sequential quarter-on-quarter we're

I specific mean, from -- Any should it X%, margin? bit the X%? go more X%, Right. on up mean, be can little to Just gross there? you I back a commentary

but we're it really We're you margin, smart. guiding not back can really -- guiding you're to gross because not into

are we can and add You margin. is to then ultimately, good I guiding that is X% say how guiding gross play quarter the to about annual X% to baseline of going What what contribution. my with not feel to out. we is do math the We're EBITDA And would back.

ahead do guess, of little terms the many of, guess, and then how rates up, people So XQ, I appreciation factor? Okay. maybe yes, follow-up, declining And enough. going and but derivative, up? I accelerating interplay commentary going So words purchases Fair forward. the between a think a still guess, pull the a that second always just a you much right? of I think XQ on as you How related in could I still that do could be be to price use

we're little a rising which advance going in what demand designed for homes. looking they're is is to to you are the up are seeing down they're neutral. environment bit of rates. or we're What be of an Ultimately, mortgage in, I There purchase spectre said, whatever think of whether incredible working people may to we're or rates going respond

more were this So any about is acquire coming just the shape about into ability to quarters our of or necessarily how homes and sell-through. the commentary

comes Your from from of next Wedbush. line Arounian question Ygal the

and First, and seeing on that's about the you're not can kind limited think but also a how through you the year, in factors Just macro lows out in be prices that's ask your inventory of to for sell follow-up. broadly how environment. -- I front, then inventory, record be the pricing, just sell in market go of If the dynamic tighter to what we as you I the inventory to homes you how guys? And easier it'd business, on about that both number impacting the think side, and a want inventory environment? in play inventory the at inventory specifically, limited how in acquisitions do continues have presumably Opendoor reflecting a how about acquisitions,

Ygal, something, Sure. all I correct hit to where along try way. and of the I'll that, miss you'll me

housing your of we is terms for the what just we First responding how in seeing to current are of are housing. environment, overall question part macro

housing started when is remains in And talked seeing continued ever it. been clearance about, is we're robust. demand going for for the year mean the seeing as What all-time guidance we seeing rate this notwithstanding. strong I it rates. We're increase same for at outlook as tracking really of has low just back XXXX Our I we're time in like seeing supply. lows to the QX we're mean, time, numbers our XXXX for Lennar homes. for inventory that is

side of into. as the we're -- year market and we the to don't think strong. that about -- the you we for forecast continue is us that's balance selling what resale be So on will very our for

supply and traditional question actually was business, with time as where are about being your both to marry and In to going acquiring which of being just we it's coming Complete, hard your at transaction, sell simple, buy able don't this the what home, buy alternative listing able sides home your home at has the our second consumers. see and not constrained really Opendoor really process do I that's same And think we assurance too. Opendoor for a powerful transaction is time we are to in part a The offer, talked sides this of been be issues your environment, the what that on acquisition fueling We both side. can because having to an homes, the being issue say forward. certain a of Reason consumers fast. is we that's superior to what on thing

the that and sell as and are clearly The not list still The we Opendoor of fit. solutions for to that our product last the Opendoor of of challenge, we're what to providing an is people amount coming in our because customers growth market see thing alternatives market. to of strength but add is sellers the a choosing I'd and with are indication

Got it.

Okay. to helpful And That's wanted really there. pricing. touch on I then

breakthroughs couple in your improvements of You kind your investor called processes of letter, pricing call, guys there. times in the and out and a

about? about as you've two-parter potentially the over a the your talked pricing think Zillow then we on at drive ability on time that quick And the Has to could you than Just exit all? improvements, you help maybe what giving of there. better profitability

term. short We market business in the the that know a will good be beneficial it's leadership question. to Yes, and very term long

both In through the a over it hasn't time collecting market, vis-a-vis And again, modeling through terms of years local the of well out as course modified X pricing competitors we've this better our plan. as of data advantage and coming built in period.

whether to there's not And Our we as as more as competition homes, over we process continues not. or time pricing improve and more more will that's of a resell analyze it homes. we function homes, compound

about Okay. the is potentially built margins about you way there? that than it? improve talked more Or into we've kind you've of talked better And as

Sorry, part question? can you of repeat the second that

is kind about? that of could you've talked built profitability outlined? improve, improvements to you As you've that what into that Or of the drive kind

us margin It as pricing as We growth. or either it the to view improvements us additional our optionality. contribution it which consumers, we with can enables improve gives fuels capture

And growth. margin view contribution both scale either more operational as gains so or more to well improvements the pricing as drive optionality economies as we drive with

next Your question from Ryan Tomasello KBW. comes the line from of

expand you go, where of that, in that can elaborate underwriting expansion, opportunities intent there say, up your follow-up do there and XX% as over to the capabilities in longer I that letter, would was terms to what your acquisition you single-family, for the product? unique customer terms then considerations of And Opendoor and shareholder be the opens and and term? beyond the next think highlighted that on a buybox you hoping year In can different

In certainly, And in our townhomes, our grow types is range believe there But able terms, grow. worth the that properties. scenarios So of to couldn't it's exist we than and cover got to decidedly market. by be In already to we there, might more the Ryan, we've XX% XX% coverage aren't room cover, effort of thought practical the in to to us higher Andrew start the going Again, should to be ever our expand capability I principle, it. here. expanding other not to of entire to tail pricing cover likely is broadly, investments coverage. to and the enable be might saying niche. out more. there's able condos, market believe we many we sophistication would continue terms be continue then

And institutions various homebuilders. with you perhaps particularly portion acquisition the benefits you for elaborate that maybe explore for partnerships additional that have there larger you then volume fit with a of acquisition, or can customer material of your into And model? brokerages financial could on maybe even the partnerships Is are driving customer could funnels, today? the

of view parts beneficial We partners Eric. consumers. extremely It's both Yes. to these and some as

does of homebuilders, an example drive the a so win-win-win. volume business, And for which it's substantial

a buy oftentimes The new of on build, contingent certainty consumer gets homebuilder current to the selling looking So the execution. home. is

And with home and is contingency. help build which to will without offer so an on the funded are new flywheel. our to the fuels be the finish And conversely, and the with consumer that able homebuilder continue then a make for we're they able acquire we the inventory, able certainty the build consumer to

really love with pipeline homebuilders. so And other a we And the win-win-win in do win-win-win the are we partners and live as situation have also that view we situation. many

move an my is every And can the where terms homeowner to they is in their their U.S. journey worth much how start in here, with offer. equity of and wants to their go how In and we to seamlessly. from understand home they Opendoor want home, single belief that the have

so will our again, to expand the wherever in single is, there. customer U.S. to march partnerships we the to And every And looking be explore in homeowner

next from from comes Berenberg. of Your question the Ages line Justin

they that seeing you hoping as you just investments get back expand and mentioned you're you your market? I'm to on that ability that the proprietary called houses tool upon the can were improving making out, the

Sure.

investments and and in is serve customer our called scale operations just country technology across grow to platform ability our core to the out. as every Our and Eric

central invest to means actually let may consumer video, us and the more seeing be like virtualization, hand, Virtualization What us the which it something and centralization capacity video. ramp Centralization actually grow other self-serve You're do those to words means mean? the do on via to able quickly. actually do themselves and externalization in it as well capabilities by and capacity, ability bring parties take accommodate lets when our both see And in lets field demand flex use that as then talent third surges. lets teammates manage of to us different us markets. externalization which XX work to footprint we across our own us capacity the agilely of teams, now more out to

And our so those that just make, leadership examples of given we believe and to are scale. making of we're in able some uniquely the our investments we're and market platform the

No, that's just I on competition. one appreciate helpful. And more, I And the then could, color. if

finding deep same? seen still haven't that. you're really competitors bumping you Zillow the shoulders bidding buybox enough markets are a relatively is of in given just terms markets yet? the the of exit lot impacts for Or of same overlap, the or the in But not that are other of the that really mentioned you house there's You where

we way. this the that competition not not I'd define sure has XX% Again, and our that of is at Competition as look I'm do our it growth, are Eric. transactions impeded offline.

on thing be lean competitive a much and leader very is developed market the markets have that we us faster enable in we're about deep and grow that far is would structure. to cost in I better in and other capabilities think I operations The that with some robust pricing and be and

working integrated is I of so XX% starts us digital is the offline. want aimed experience. no -- a point And our at hard consumer seamless the and are make And to one that that are transactions to we're as build as

on And so remain focused we that.

the comes & from line Ryan Zelman next Your from of Associates. question McKeveny

Congrats year. on results the and this progress

level high one So here.

financing would business, you of to So the couple, rising in thinking in are that terms talked high-level second affordability, And and costs? my is risk. uncertainty what just And maybe on impact the not And potential maybe a financing, of about pricing? be, the sense impairment inventory to area just inventory What overlays is in there's availability sales as of of I'll through. then one, impact the relation about. the call also these investors of rates terms

slowed. So managing can rose, you the rates example to interest And a business? XXXX rate little even you're how talk late the risk maybe a housing where decent is about

think if the I'm second And at I managing So is there curious that then end percent Any be this risk. normal, you the relatively level fared And would inventory tail just the be of of talk some that as things? those considering of on should that thoughts time? of of point, long, process inventory on normal the homes is how a is can at about will business great. we sorry, know always impairments kind a

best keep through Ryan, remember honest do all me that, as I to it. but you'll go I'll my

impact increases, we the manageable. expect cost at is home do increase we small those interest in per overall but our The in over rate the quite rates to costs that first unit to costs moreover, basis structure our points headline on the we We're XX part to an that impact impact modeling of to course a and a embed that's expect us and And basis. year, our our of P&L offers. the to approximately XX relatively be

question. come And the expectation to so LIBOR for the There we'll current over over course was for and it the that versus we for the floating. consumer. headline sector housing to is or… your to layering of believe, on including manageable. pass year. I how to the how curve overall be course year, our inventory are the leasing around, over increases of fixed look one That the market expect time, That's the overall just of clear assumptions But has us into that two some guidance, Part in part rate facilities interest go in was turns rates

I then, And inventory that. just valuation was of Yes, the things. part side three on guess,

Yes.

overall you of and Let we which days on relative people inventory me for portfolio. to that on basis focus can second. with We of as health the saw we hit we it, at, inventory is look that absolute look metric a – yes, right health new our also on That’s one a management an the now and came the market. market understand to overall why measure that

the As because at our the of for and healthier market market than days of XX%. X% we’re older, days of a lot the that was year, inventory overall end just was XXX metric market listed same or the on overall

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just of ‘XX, in expansion that you more significant benefits diversification? as fourth here, market about we maybe of they or the you question greatest? ‘XX. talk market Can in maybe the expansion Are levels? concentrations the And diversification? of expect had the the the you in question potentially Second terms add the so geographic new how And geographic expansion desired about maybe concentration does are some think portfolio, where at coverage, the

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to questions further I now no Officer. would at Chief are this to turn There time. the Executive Wu, Eric back like conference

Thanks. we products of want customers. put work delivered our XXXX metrics. results delight In say key thank across in and teammates the build hard I of closing, I our want we're to to proud extremely our all just our in that personally the we to

way we innovating are consumers to Thank heads well for you on building are joining. for and mission. business, fulfilling we our down and the shareholders, our best our For

for have a conference Thank wonderful call. today's concludes you day. and This participating,

may You all disconnect.