Opendoor Technologies Inc (OPEN) 2022 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Opendoor First Quarter 2022 Earnings Conference Call. (Operator Instructions) Please be advised today's conference may be recorded. (Operator Instructions) I'd now like to hand the conference over to your host today, Elise Wang, Head of Investor Relations.

美好的一天，感謝您的支持。歡迎來到 Opendoor 2022 年第一季度收益電話會議。 （操作員說明）請注意今天的會議可能會被錄製。 （操作員說明）我現在想將會議交給今天的主持人，投資者關係主管 Elise Wang。

Thank you, and good afternoon. Full details of our results and additional management commentary are available in our earnings release and shareholder letter, which can be found on the Investor Relations section of our website at investor.opendoor.com. Please note that this call will be simultaneously webcast on the Investor Relations section of the company's corporate website. Before we start, I would like to remind you that the following discussion contains forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding Opendoor's financial condition, anticipated financial performance, business strategy and plans, market opportunity and expansion and management objectives for future operations. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to differ materially from those discussed here.

謝謝，下午好。我們的業績和其他管理層評論的全部細節可在我們的收益發布和股東信函中找到，可在我們網站的投資者關係部分找到，網址為investor.opendoor.com。請注意，本次電話會議將同時在公司網站的投資者關係部分進行網絡直播。在開始之前，我想提醒您，以下討論包含聯邦證券法含義內的前瞻性陳述，包括但不限於關於 Opendoor 財務狀況、預期財務業績、業務戰略和計劃的陳述，市場機會以及未來運營的擴展和管理目標。這些陳述既不是承諾也不是保證，並且涉及可能導致實際結果與此處討論的結果大不相同的風險和不確定性。

Additional information that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Opendoor's most recent annual report on Form 10-K for the year ended December 31, 2021. Any forward-looking statements made in this conference call, including responses to your questions, are based on management's current expectations and assumptions as of today and Opendoor assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law.

可能導致實際結果與前瞻性陳述不同的其他信息可在 Opendoor 最新的 10-K 表格年度報告（截至 2021 年 12 月 31 日）的風險因素部分中找到。在此做出的任何前瞻性陳述電話會議，包括對您的問題的回答，是基於管理層截至今天的當前期望和假設，Opendoor 不承擔更新或修改它們的義務，無論是由於新的發展或其他原因，除非法律要求。

The following discussion contains references to certain non-GAAP financial measures. The company believes these non-GAAP financial measures are useful to investors and supplemental operational measurements to evaluate the company's financial performance. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP metric, please see our website at investor.opendoor.com. I will now turn the call over to Eric Wu, Cofounder, Chairman and Chief Executive Officer of Opendoor.

以下討論包含對某些非公認會計原則財務措施的參考。公司認為，這些非公認會計準則財務指標對投資者有用，並補充運營指標以評估公司的財務業績。如需將這些非 GAAP 財務指標與最直接可比的 GAAP 指標進行對賬，請訪問我們的網站investor.opendoor.com。我現在將把電話轉給 Opendoor 的聯合創始人、董事長兼首席執行官 Eric Wu。

Good afternoon. On the call with me is Carrie Wheeler, our Chief Financial Officer; and Andrew Low Ah Kee, our President. Our customer experience is the focal point of what we do here at Opendoor. So as always, I want to start this call by hearing from one of our recent customers, the Blasingame family.

下午好。與我通話的是我們的首席財務官 Carrie Wheeler；和我們的總裁Andrew Low Ah Kee。我們的客戶體驗是我們在 Opendoor 所做工作的重點。因此，與往常一樣，我想通過聽取我們最近的一位客戶 Blasingame 家族的意見來開始這個電話會議。

(presentation)

（介紹）

The Blasingames, alongside more than 100,000 happy customers are the reason why we know we will transform the broken off-line process into a digital seamless experience. As we reshape the consumer experience, we are also building a durable generational company. This means not only driving rapid growth but also sustainable margin improvements and a reduction in our cost structure that enable us to grow and be profitable across economic cycles.

Blasingames 以及超過 100,000 名滿意的客戶是我們知道我們會將破碎的離線流程轉變為數字無縫體驗的原因。在重塑消費者體驗的同時，我們也在打造一家經久不衰的代際公司。這不僅意味著推動快速增長，還意味著可持續的利潤率提高和成本結構的降低，使我們能夠在經濟周期中實現增長並實現盈利。

Our first quarter results are a testament to this effort. We surpassed our expectations delivering record revenue of $5.2 billion, gross profit of $535 million and contribution profit of $332 million. We also demonstrated profitability with adjusted EBITDA of $176 million and adjusted net income of $99 million. These past 8 years of investments and hard work on our cost structure, automation, technology platform and pricing engine are enabling us to deliver durable margin improvements as we scale.

我們的第一季度業績證明了這一努力。我們超過了我們的預期，實現了創紀錄的 52 億美元收入、5.35 億美元的毛利潤和 3.32 億美元的貢獻利潤。我們還以 1.76 億美元的調整後 EBITDA 和 9900 萬美元的調整後淨收入證明了盈利能力。過去 8 年在我們的成本結構、自動化、技術平台和定價引擎方面的投資和辛勤工作使我們能夠隨著規模的擴大實現持久的利潤率改善。

Alongside our progress in our key financial meters, we also continue to make improvements against our consumer flywheel. For home sellers, adoption continues to accelerate, with offer requests up threefold versus prior year. And our reengagement strategy is also successfully fueling growth. Most encouragingly, we've been able to maintain real seller conversion at over 35% and NPS north of 80. For home buyers, we hit all-time highs for purchase offers, driven by the adoption of Opendoor-backed offers and Opendoor Complete. We've also continued to make progress on our financing offering, including adding Lower.com as a strategic partner which will enable us to offer a broader suite of products, serve more customers across our market footprint and that fulfillment flexibility as we launch our digital open door financing app in coming weeks.

除了在關鍵財務計量方面取得進展外，我們還繼續改進我們的消費者飛輪。對於房屋賣家來說，採用率繼續加快，報價請求比去年增加了三倍。我們的重新參與戰略也成功地推動了增長。最令人鼓舞的是，我們能夠將真正的賣家轉化率保持在 35% 以上，NPS 保持在 80 以北。對於購房者來說，由於採用了 Opendoor 支持的報價和 Opendoor Complete，我們的購買報價創下歷史新高。我們還在融資服務方面繼續取得進展，包括將 Lower.com 添加為戰略合作夥伴，這將使我們能夠提供更廣泛的產品套件，在我們的市場足跡中為更多客戶提供服務，並在我們推出數字化服務時實現靈活性未來幾週開放融資應用程序。

And finally, we continue to take major steps towards our goal of servicing every home seller and homebuyer across the country. We recently entered some of the largest markets, including San Francisco Bay Area, New York and New Jersey, and we continue to demonstrate that we can operate in all markets in the U.S. Before I turn the call over to Carrie, I wanted to touch base on some of the macro dynamics impacting the short- to medium-term outlook for housing.

最後，我們繼續朝著為全國每一位購房者和購房者提供服務的目標邁出重大步伐。我們最近進入了一些最大的市場，包括舊金山灣區、紐約和新澤西，我們繼續證明我們可以在美國的所有市場開展業務。在我把電話轉給 Carrie 之前，我想接觸一下基地關於影響住房中短期前景的一些宏觀動態。

While rising interest rates and waiting affordability are factors we monitor very closely, we're confident in our ability to hit our financial targets across cycles. First, we have made significant progress in our margins, driving 240 basis points of structural improvements via cost reduction and services attach since 2018, which gives us the necessary margin of safety in our unit economics; second, if we study the data, housing recessions have been historically slow. And last, we hold highly liquid homes for short periods of time, aiming to turn our inventory every 90 to 100 days. Setting aside the fact that our forecasts incorporate risk and volatility, the combination of very healthy margins driven by structural price and cost improvements, and our short duration sale-ready inventory makes navigating market turbulence very manageable.

雖然利率上升和等待支付能力是我們密切關注的因素，但我們對跨週期實現財務目標的能力充滿信心。首先，我們在利潤率方面取得了重大進展，自 2018 年以來通過降低成本和附加服務推動了 240 個基點的結構改進，這為我們的單位經濟提供了必要的安全邊際；其次，如果我們研究數據，住房衰退在歷史上是緩慢的。最後，我們在短時間內持有高流動性的房屋，目標是每 90 到 100 天周轉一次庫存。撇開我們的預測包含風險和波動性這一事實不談，結構性價格和成本改善推動的非常健康的利潤率，以及我們的短期銷售就緒庫存，使得駕馭市場動盪變得非常容易管理。

In summary, this quarter marked another step along our journey to transform the real estate industry. While I am encouraged by our financial performance, I'm most proud of how we delivered these results. We focused on delivering system-level changes that enable us to drive sustainable margin improvements. We focused on a company culture, ensuring that we show up as 1 team, combining the best technology with operational excellence. And last, we focused on the consumer experience, building and innovating on products and services that will delight customers for decades to come.

總之，本季度標誌著我們在房地產行業轉型之路上又邁出了一步。雖然我對我們的財務表現感到鼓舞，但我最自豪的是我們如何實現這些結果。我們專注於提供系統級的變化，使我們能夠推動可持續的利潤率提高。我們專注於公司文化，確保我們作為一個團隊出現，將最好的技術與卓越的運營相結合。最後，我們專注於消費者體驗，構建和創新產品和服務，讓客戶在未來幾十年內取悅客戶。

I will now turn it over to Carrie to discuss our financial performance in more detail.

我現在將把它交給 Carrie 來更詳細地討論我們的財務業績。

Thanks, Eric. Before I discuss our Q1 results, I wanted to note that we've updated our annual investor presentation. You can find that on our Investor Relations website. And as always, please refer to our shareholder letter and our upcoming 10-Q for full details of the quarter. Moving on now to some key highlights. As Eric mentioned, we delivered another record quarter where we significantly outperformed our expectations on growth and profitability. We saw all-time highs in our quarterly revenue, gross profit, contribution profit and EBITDA. In addition, we generated nearly $100 million in adjusted net income, which for us is a good proxy for operating free cash flow and a strong testament to our growing scale, margin sustainability and ongoing cost structure improvements.

謝謝，埃里克。在討論我們的第一季度業績之前，我想指出我們已經更新了年度投資者報告。您可以在我們的投資者關係網站上找到該信息。與往常一樣，請參閱我們的股東信函和我們即將發布的 10-Q，以了解本季度的全部詳細信息。現在繼續討論一些關鍵亮點。正如 Eric 所說，我們實現了另一個創紀錄的季度，我們的增長和盈利能力大大超出了我們的預期。我們的季度收入、毛利潤、貢獻利潤和 EBITDA 均創下歷史新高。此外，我們產生了近 1 億美元的調整後淨收入，這對我們來說是經營自由現金流的良好代表，也是我們不斷擴大的規模、利潤率可持續性和持續成本結構改進的有力證明。

Based on the momentum we're seeing across the business, we expect to continue to drive exceptional year-over-year growth through the rest of 2022. I'd like to focus now on a few areas that are topical in today's environment, namely our margin sustainability and our expectations for how housing will trend over the coming quarters. First, it's important to reiterate that what is core to our business model and frankly what is most misunderstood is that our systems and margin structure are designed to be durable across different housing environments. That's not to say we're immune. Housing dynamics are a key input to our business, and we've custom-built our pricing and operational systems to give us a deep understanding of the underlying drivers and to be able to dynamically adjust to changing conditions. That's reflected in our offers. And those account for the level of certainty in our home acquisition pricing, inclusive of forecasted HPA.

根據我們在整個業務中看到的勢頭，我們預計將在 2022 年剩餘時間內繼續推動非凡的同比增長。我現在想關注當今環境中的幾個熱門領域，即我們的利潤率可持續性以及我們對未來幾個季度住房趨勢的預期。首先，重要的是要重申我們的商業模式的核心，坦率地說，最容易被誤解的是我們的系統和利潤率結構旨在在不同的住房環境中持久耐用。這並不是說我們免疫。住房動態是我們業務的關鍵輸入，我們定制了定價和運營系統，讓我們深入了解潛在的驅動因素，並能夠動態調整以適應不斷變化的條件。這反映在我們的報價中。這些說明了我們購房定價的確定性水平，包括預測的 HPA。

And in environments of high volatility, our models are designed to be more conservative. Combining this with holding liquid sale-ready homes and having updated views on home pricing on a daily basis gives us the confidence that we can deliver against our baseline annual contribution margin targets of 4% to 6% across market cycles.

在高波動性的環境中，我們的模型設計得更加保守。將這一點與持有流動的可銷售房屋並每天更新房屋定價觀點相結合，使我們有信心在整個市場週期中實現 4% 至 6% 的基準年度邊際貢獻目標。

To that end, with respect to what we're seeing in the macro environment, our expectation is that the housing industry may begin to experience a slowing in HPA and transaction volumes beyond what's normal from seasonal trends, beginning in the second half of this year, the pace of which should be gradual and consistent with the typical slowdown. There's a reasonable chance that housing is going to continue to be stronger for longer.

為此，就我們在宏觀環境中看到的情況而言，我們的預期是，從今年下半年開始，房地產行業可能會開始經歷 HPA 放緩和交易量超出季節性趨勢的正常水平，其步伐應該是漸進的，並與典型的放緩相一致。有一個合理的機會，住房將在更長的時間內繼續走強。

But notwithstanding that, we have been and continue to be conservative in our home valuations in light of greater macro uncertainty. And at the same time, as we've been adjusting our pricing to be more conservative, we've not seen an impact on our conversion. Our macro viewpoint is underpinned by what's happening on the supply side. We continue to operate in a historically low inventory market, which has been the predominant driver of home price increases over the last 2 years.

但儘管如此，鑑於更大的宏觀不確定性，我們一直並將繼續對房屋估值持保守態度。同時，由於我們一直在調整定價以更加保守，因此我們的轉化率並未受到影響。我們的宏觀觀點以供應方面正在發生的事情為基礎。我們繼續在歷史低位的庫存市場中運營，這一直是過去 2 年房價上漲的主要驅動力。

This supply dynamic differentiates current conditions from what led to the last housing downturn, which was during the global financial crisis. At that time, we saw very high levels of consumer leverage and willingness to take on debt at high rates that all resulted in a demand-driven bubble, even though housing supply was high and increasing. This led to multiyear delevering behavior, as well as the forced selling of assets during the GFC and subsequent recovery.

這種供應動態將當前狀況與導致上一次房地產低迷的原因區分開來，那是在全球金融危機期間。當時，我們看到消費者槓桿率非常高，並且願意以高利率承擔債務，這一切都導致了需求驅動的泡沫，儘管住房供應量很高並且還在增加。這導致了多年的去槓桿行為，以及在全球金融危機和隨後的複蘇期間被迫出售資產。

In contrast, the significant delevering, higher savings rates and lower household formation rates post GFC have resulted in debt-to-income ratios today that are well under those observed prior to the GFC. While affordability has waned with increasing prices over the last 2 years, there is currently little risk of forced selling given the strength of consumer balance sheets. Notwithstanding, real estate prices have tended to move slowly in market declines. Outside of the GFC, there have been only 6 quarters of HPA declines out of 188 since 1975, all very modest at around 1% or less. This further renders a sharp housing downturn unlikely in our view. And even during the GFC, the largest price decline sustained in a single quarter was down 3%.

相比之下，全球金融危機後顯著的去槓桿化、更高的儲蓄率和更低的家庭形成率導致如今的債務收入比遠低於全球金融危機前觀察到的水平。雖然在過去 2 年中，隨著價格上漲，可負擔性有所下降，但鑑於消費者資產負債表的強勁，目前強制出售的風險很小。儘管如此，房地產價格在市場下跌時趨於緩慢移動。在全球金融危機之外，自 1975 年以來的 188 個季度中，只有 6 個季度的 HPA 下降，均非常溫和，約為 1% 或更低。在我們看來，這進一步導致房地產市場急劇下滑的可能性不大。即使在全球金融危機期間，單季度最大的價格跌幅也下降了 3%。

On the interest rate front, while market expectations for Fed rate increases have translated to higher mortgage rates, it's worth noting that real rates today remain reasonable at around 2% compared to the pre-pandemic average of 2.5% and a pre-GFC average of 4.5%. Based on the long-term relationship between real rates and demand, again, it would suggest a gradual softening in (inaudible) mortgage applications as rates rise rather than a sharp downturn.

在利率方面，雖然市場對美聯儲加息的預期已轉化為更高的抵押貸款利率，但值得注意的是，與大流行前的平均水平 2.5% 和全球金融危機前的平均水平相比，今天的實際利率仍保持在 2% 左右。 4.5%。基於實際利率和需求之間的長期關係，這表明隨著利率上升而不是急劇下降，抵押貸款申請（聽不清）會逐漸減弱。

What's the upside of all this? First, we expect the housing industry to gradually flow and two, we're confident in our ability to respond to changing conditions and to deliver on our stated margin goals. Furthermore, as homeowners have to navigate the changing housing market, the simplicity, certainty and speed that we offer relative to the traditional listing process will only become more valuable to consumers, allowing us to be a share gainer across cycles.

這一切有什麼好處？首先，我們預計房地產行業將逐漸流動，第二，我們對我們應對不斷變化的條件並實現我們既定的利潤率目標的能力充滿信心。此外，由於房主必須應對不斷變化的住房市場，我們提供的相對於傳統上市流程的簡單性、確定性和速度只會對消費者更有價值，從而使我們能夠跨週期獲得份額。

Turning now to our guidance for Q2. We expect to continue to deliver substantial year-on-year growth. Revenue is expected to be between $4.1 billion to $4.3 billion, representing over 250% growth at the midpoint. This amounts to revenue of $9.3 billion to $9.5 billion for the first half of this year versus our prior expectations for $8 billion. We expect adjusted EBITDA to be between $170 million and $190 million, which represents an EBITDA margin of 4.3% and a year-over-year increase of over 600% at the midpoint of the range.

現在轉向我們對第二季度的指導。我們預計將繼續實現同比大幅增長。收入預計在 41 億美元至 43 億美元之間，中點增長超過 250%。這相當於今年上半年的收入為 93 億美元至 95 億美元，而我們之前的預期為 80 億美元。我們預計調整後的 EBITDA 將在 1.7 億美元至 1.9 億美元之間，即 EBITDA 利潤率為 4.3%，在該範圍的中點同比增長超過 600%。

Adjusted operating expenses are expected to increase sequentially by approximately $35 million and contribution margins are also expected to increase sequentially in the second quarter. We are continuing to manage our business against a baseline annual contribution margin range of 4% to 6%. However, we are going to be opportunistic from time to time and choose to capture additional margin when market conditions are exceptionally strong, and we expect that dynamic to be the case in Q2.

調整後的運營費用預計將環比增加約 3500 萬美元，預計第二季度的邊際貢獻也將環比增加。我們將繼續按照 4% 至 6% 的基準年度邊際貢獻率範圍來管理我們的業務。然而，我們將不時投機取巧，並選擇在市場條件異常強勁時獲得額外的利潤，我們預計第二季度會出現這種情況。

Before I open the call for questions, I want to thank all of our teammates at Opendoor. I'm proud of all that we continue to achieve together in delighting our customers with building a durable generational company. And with that, I will now open up the call for questions. Thanks.

在我開始提問之前，我要感謝我們在 Opendoor 的所有隊友。我為我們在建立一家經久不衰的世代公司而繼續共同取得的成就感到自豪。有了這個，我現在將打開提問的電話。謝謝。

(Operator Instructions) Our first question comes from Jason Helfstein with Oppenheimer.

（操作員說明）我們的第一個問題來自 Jason Helfstein 和 Oppenheimer。

This is Chad on for Jason. Could you give a little bit more color on what drove the strength in gross margin in the quarter? And then the assumingly implied further improvement in 2Q? And then how should we think about the back half of the year? And then I have one follow-up.

這是傑森的乍得。您能否就本季度毛利率的強勁增長提供更多色彩？然後假設暗示第二季度的進一步改善？那麼我們應該如何看待下半年呢？然後我有一個後續行動。

Chad, it's Carrie. I'll take that. So with respect to what we saw in Q1, I would think about the results being a more normal quarter relative to what we saw prior quarter in Q4 where we (inaudible) the operational constraints we had. So normalized margins in Q1 and then trending into Q2 were calling for a sequential tick up in margins, really driven by the fact that as we commented in our shareholder letter, we have been increasing our spread since late last fall in light of what we foresee it to be increasing market volatility. And we're leaning into margin, and you'll see that show up in our Q2 numbers.

查德，是嘉莉。我會接受的。因此，就我們在第一季度看到的情況而言，我認為相對於我們在第四季度看到的上一季度（聽不清）我們遇到的運營限制，結果是一個更正常的季度。因此，第一季度和第二季度的正常化利潤率要求利潤率連續上升，這實際上是因為正如我們在股東信中評論的那樣，根據我們的預期，自去年秋天末以來，我們一直在增加我們的價差它正在增加市場波動。我們正在向利潤傾斜，你會在我們的第二季度數據中看到這一點。

Okay. Great. And then how should we think about inventory through the rest of the year? Is that still kind of building through the back half?

好的。偉大的。那麼我們應該如何考慮今年剩餘時間的庫存呢？這仍然是一種通過後半部的建築嗎？

Yes. No, we said that Q1 should mark the low point for inventory for the year, that $4.6 billion, and we expect to grow inventory through the balance of the year.

是的。不，我們說第一季度應該是今年庫存的低點，即 46 億美元，我們預計在今年餘下時間里庫存會增加。

Our next question comes from Ygal Arounian with Wedbush.

我們的下一個問題來自與 Wedbush 的 Ygal Arounian。

First a follow-up on the inventory. Is there anything to read into a (inaudible) commentary about the expectations of the housing market and slowing HPA and [slowing] transactions and the number of transactions you had here in 1Q? relative to what you purchased, I guess.

首先是對庫存的跟進。關於房地產市場的預期和放緩的 HPA 和 [放緩] 交易以及您在 1Q 的交易數量的（聽不清）評論有什麼值得讀的嗎？相對於你購買的東西，我猜。

Yes. I mean, a couple of comments I'll make. So first of all, Q1, and we talked a little bit about the cadence of the quarters already in the prior quarter. But Q1, really for us the fact that we showed up with a really healthy base of inventory and we met very strong elevated demand for housing. We expected to see really high sell-through rates for inventory and we did but we probably sold more homes than we even have guided to.

是的。我的意思是，我會發表一些評論。首先，第一季度，我們談到了上一季度已經存在的季度節奏。但是第一季度，對我們來說，真正的事實是，我們的庫存基礎非常健康，我們遇到了非常強勁的住房需求增長。我們預計會看到非常高的庫存銷售率，我們確實做到了，但我們售出的房屋可能比我們預計的要多。

In addition, we saw a little bit of pull through of demand and we expected to see some of that. We sized it at around $300 million of what we saw in Q1, was a function of people closing homes faster than we otherwise would have expected, pulling those homes from what would have fallen into Q2 into Q1. So that was a bit of a driver of the results, but certainly, not a major one. I think your question also speaks to like what are we [proposing] for the rest of the year with respect to housing.

此外，我們看到了一些需求的拉動，我們預計會看到其中的一些。我們將其規模定為第一季度的 3 億美元左右，這是因為人們關閉房屋的速度比我們預期的要快，將這些房屋從第二季度的房屋拉到第一季度。所以這是結果的一個驅動因素，但肯定不是主要的。我認為你的問題也說明了我們在今年剩餘時間裡在住房方面的 [提議]。

As we said in our comments, what we're seeing right now or at least what we're managing against is an assumption that the housing market will cool towards the back half of the year, there will be a gradual slowing of HPA in volumes in light of rising interest rates and the pressures we're seeing on affordability. But as we also said, we expect to grow through that. We -- our offer shows up with certainty and what we think is increasing value proposition in this kind of market.

正如我們在評論中所說，我們現在看到的或者至少我們正在應對的是一個假設，即房地產市場將在今年下半年降溫，HPA 的交易量將逐漸放緩鑑於利率上升和我們看到的負擔能力壓力。但正如我們也說過的，我們希望通過這種方式成長。我們——我們的報價確定地出現了，我們認為在這種市場中增加了價值主張。

Right. So I guess what I was trying to get at was, as you -- tying together that view with your transaction, but do you -- are you buying fewer homes than you might because you think there -- I fully understand and agree with your views on the market overall, not at a collapse. There are plenty of fundamental structurally positive things in the market, but you adjust your -- the pace of your purchases based on that view. And so maybe you could take a little bit of a step back, if you think we're headed in that kind of market over the next 6 months?

對。所以我想我想表達的是，當你把這種觀點與你的交易聯繫起來，但是你買的房子比你想像的要少嗎？我完全理解並同意你的看法對市場的看法總體上，不至於崩潰。市場上有很多基本結構上積極的東西，但你會根據這種觀點調整你的購買速度。因此，如果您認為我們將在未來 6 個月內進入那種市場，也許您可以退後一點？

No. I mean not at all. I mean what we have been doing since last fall is we have been increasing our spreads. But that hasn't inhibited either a conversion or a pace of acquisition growth. And we expect to continue to grow acquisition volumes. They'll be up in Q2. And so long that we can meet our margin targets, we will continue to grow our acquisition volumes. I think that's a really important takeaway with increasing spreads and at the same time we've not seen a real market impact to conversion and we've been growing acquisition volumes. Back to this comment that in this environment, our value prop should only increase in times of greater volatility.

不，我的意思是一點也不。我的意思是自去年秋天以來我們一直在做的是我們一直在增加我們的點差。但這並沒有抑制轉換或收購增長的步伐。我們預計收購量將繼續增長。他們將在第二季度上漲。只要我們能夠達到我們的利潤目標，我們就會繼續增加我們的收購量。我認為隨著點差的增加，這是一個非常重要的收穫，同時我們還沒有看到對轉換的真正市場影響，而且我們一直在增加收購量。回到這個評論，在這種環境下，我們的價值支撐應該只在波動更大的時候增加。

This is Eric. I'd love to add on top of that, which is -- I'll say it in a different way, the value we're delivering to consumers is seeing the value we're capturing. And as we've increased spreads, we haven't seen a material impact to our conversion, which is an incredible sign that, again, if we deliver (inaudible) to consumers, they will convert. And so we're excited to see that not only have our margins improved, we've also seen conversion held steady through this period, which gives us a lot of confidence that we can continue to grow through the back half of this year.

這是埃里克。我想補充一點，那就是 - 我會以不同的方式說，我們為消費者提供的價值是看到我們正在捕捉的價值。隨著我們增加點差，我們沒有看到對我們的轉化產生實質性影響，這是一個令人難以置信的跡象，再次表明，如果我們向消費者提供（聽不清），他們就會轉化。因此，我們很高興看到不僅我們的利潤率有所提高，而且我們還看到這一時期的轉化率保持穩定，這讓我們充滿信心，相信我們可以在今年下半年繼續增長。

Okay. Awesome. That's really helpful. And then maybe just any color on the -- so far, I know it's early, but the moves into the Bay Area, New York, New Jersey. Anything you're seeing in those markets different or the same as the others? Just any kind of signs one way or the other on how things are progressing there?

好的。驚人的。這真的很有幫助。然後可能只是任何顏色 - 到目前為止，我知道現在還早，但搬到了紐約灣區，新澤西州。您在這些市場中看到的與其他市場有何不同或相同之處？只是任何一種跡象表明那裡的事情進展如何？

Ygal, it's Andrew. The early indications, and it's still really early, obviously, on the Bay Area and New York, New Jersey are strong. And in fact, I'd extend that statement to all of the markets that will be launched in 2021, where we added 23 markets over the course of the year. Those markets continue to perform in a very predictable way as we execute our playbook against them. And we're pleased with New York, New Jersey. We're also pleased with the 23 we [launched] last year.

Ygal，是安德魯。很明顯，灣區和紐約、新澤西州的早期跡像很明顯，現在還很早。事實上，我會將這一聲明擴展到將在 2021 年推出的所有市場，我們在這一年中增加了 23 個市場。當我們針對它們執行我們的劇本時，這些市場繼續以非常可預測的方式表現。我們對新澤西州的紐約市感到滿意。我們也對我們去年推出的 23 款感到滿意。

Our next question comes from Ryan McKeveny with Zelman.

我們的下一個問題來自 Ryan McKeveny 和 Zelman。

Congrats on the results and appreciate the added details on the business, the cost structure and the embedded micro views, it's definitely helpful to see you guys lay that out given the uncertainty that is out there. So Eric, I wanted to dig into a topic you got into the last couple of quarters on the long-term ecosystem being a two-sided local marketplace for sellers and buyers. And I think it's interesting to think through. So on the buy side, it's obviously great to hear that the purchase offers with buyers hit an all-time high. But I guess more broadly on this kind of flywheel opportunity with buyers and sellers, if we look at it as the aggregation of local supply is important to aggregating and capturing that high-intent demand, is there a threshold of market share at the local level that we should think about as to when you get to a certain level of market share of supply that, that buy side really starts to flourish, or is that still kind of early days to get too much into that?

祝賀結果並欣賞有關業務、成本結構和嵌入式微觀視圖的附加細節，鑑於存在的不確定性，看到你們提出這一點絕對有幫助。所以埃里克，我想深入探討你在過去幾個季度中談到的一個主題，即長期生態系統是一個面向賣家和買家的雙向本地市場。而且我認為仔細考慮很有趣。因此，在買方方面，很高興聽到買家的購買報價創下歷史新高。但我想更廣泛地說，關於買家和賣家的這種飛輪機會，如果我們將其視為本地供應的聚合對於聚合和捕捉高意向需求很重要，那麼在本地層面是否存在市場份額的門檻我們應該考慮當你達到一定水平的供應市場份額時，那個買方真的開始蓬勃發展，還是說現在還處於早期階段？

Ryan, it's a valid question. The way that I think about it is that if we're able to aggregate supply, in our case, it's actually unique supply, it's our inventory, we're going to build a differentiated experience on top of that supply.

瑞安，這是一個有效的問題。我的想法是，如果我們能夠聚合供應，在我們的例子中，它實際上是獨特的供應，它是我們的庫存，我們將在該供應之上建立差異化的體驗。

And really the end state that we're building to that, we (inaudible) possible to be able to buy a home with peace of mind with just your mobile device. And we're using our inventory to build that experience as the first step. In terms of aggregating demand with that unique supply, we are seeing really good progress and signal that we're able to do that. When the market tips and maybe to try to define that term where every single buyer in market is looking, downloading and using our app to shop, we're not certain, but we do see really good correlation with if we increase supply that we have and build a differentiated experience on top of that supply, buyers are actually using Opendoor directly.

實際上，我們正在為此建立的最終狀態是，我們（聽不清）有可能僅使用您的移動設備就可以安心購買房屋。作為第一步，我們正在使用我們的庫存來建立這種體驗。在將需求與獨特供應相結合方面，我們看到了非常好的進展，並表明我們能夠做到這一點。當市場提示並可能試圖定義市場上每個買家都在尋找、下載和使用我們的應用程序購物的術語時，我們不確定，但我們確實看到了與我們是否增加供應的良好相關性並在該供應之上建立差異化體驗，買家實際上是直接使用 Opendoor。

Got it. That's very helpful, Eric. And one more on the topic of the acquisition underwriting and obviously the spread dynamic and Carrie really helpful to hear your commentary on how the adoption and conversion has remained strong. But I guess if we do think about a period in the housing market where some geographies maybe do see price weakness or at least have greater risk of price weakness than others, should we think about your approach as kind of continuing to bake that risk into underwriting, but still making offers in all locations? Or is there a scenario where you have a big enough footprint of 50 markets and maybe the market dictates you leaning into certain geographies and pulling back or pausing even in potentially riskier areas? Maybe just comment on that geographic kind of balancing act that is out there.

知道了。這很有幫助，埃里克。還有一個關於收購承銷的話題，顯然傳播動態和嘉莉真的很有幫助聽到你關於採用和轉換如何保持強勁的評論。但我想，如果我們確實考慮房地產市場的某個時期，某些地區可能確實會出現價格疲軟，或者至少比其他地區有更大的價格疲軟風險，我們是否應該將您的方法視為繼續將這種風險納入承保範圍，但仍在所有地點提供優惠？或者是否存在這樣一種情況，即您擁有 50 個市場的足夠大的足跡，而市場可能要求您傾向於某些地區，甚至在潛在風險較高的地區撤退或暫停？也許只是評論一下那裡存在的那種地理上的平衡行為。

Ryan, it's Carrie. One of the duties of being in all 48 markets is we really have a diversified portfolio that we can make trade-offs against and we really do manage the business in that way. We can make trade-offs across markets, across home types, we can allocate capital differently depending on what's going on. So we would look to do so if that was paramount. What I would say today, though, is we are positioned, we believe, really well for the back half of the year. For the reason I said, one, gradual slowdown, we can respond to that; two, we've been increasing spreads, we're positioned for that; and three, we've operated across all different HPA environments historically.

瑞恩，我是嘉莉。進入所有 48 個市場的職責之一是我們確實擁有多元化的投資組合，我們可以對其進行權衡，並且我們確實以這種方式管理業務。我們可以跨市場、跨房屋類型進行權衡，我們可以根據發生的情況以不同的方式分配資本。因此，如果這是最重要的，我們會考慮這樣做。不過，我今天要說的是，我們相信，今年下半年我們的定位非常好。因為我說的原因，一是逐漸放緩，我們可以對此做出回應；第二，我們一直在增加點差，我們為此做好了準備；第三，歷史上我們在所有不同的 HPA 環境中運行。

And so as we sort of see HPA moderate, we're comfortable of our ability to thrive in that environment.

因此，當我們看到 HPA 適度時，我們對自己在那種環境中茁壯成長的能力感到滿意。

And Ryan, to add on top, just to provide some more context there. The way we think about it is, if there's additional volatility, obviously our spreads would increase. Now the promising signal that we're seeing is that the market also perceives the volatility, and we've seen conversion not materially change as a result. With that information, it may mean that we can be market share gainers across all markets, even as spreads fluctuate.

還有 Ryan，補充一點，只是為了提供更多的上下文。我們的想法是，如果有額外的波動，我們的點差顯然會增加。現在我們看到的有希望的信號是市場也意識到了波動性，我們已經看到轉換並沒有因此而發生重大變化。有了這些信息，這可能意味著我們可以在所有市場中獲得市場份額，即使價差波動。

I don't [compare] when we exit a market. I just don't -- I don't see it is a realistic scenario for us and we can price to that.

當我們退出市場時，我不[比較]。我只是不 - 我不認為這對我們來說是一個現實的場景，我們可以為此定價。

Our next question comes from [David Malinowski] with Bank of America.

我們的下一個問題來自美國銀行的 [David Malinowski]。

It's Dave on for Curt. I guess we're curious principally about pricing mechanisms, I know it was commented on earlier. I just wanted, I guess, to think about for modeling velocity, why you might think it's sustainable going forward, particularly as affordability is decreasing in your largest markets? And then I guess a quick follow-up if rates are going up, how should we be thinking about modeling interest expense for the year?

這是柯特的戴夫。我想我們主要對定價機制感到好奇，我知道之前已經對此進行了評論。我想，我只是想考慮一下建模速度，為什麼你可能認為它是可持續的，特別是在你最大的市場的可負擔性正在下降的情況下？然後我想如果利率上升，我們應該快速跟進，我們應該如何考慮模擬今年的利息費用？

I think there's 2 parts to that question. One is just how do we -- how we respond to a changing HPA environment for the balance of the year, if I have got that right. I'll come back to the interest rate one. We have been consistent with the comments we made earlier about our expectations for housing may perform, to be clear, there's a very good scenario that housing is going to be stronger for longer, just given the fact that there's just structurally no supply out there right now. That being said, we are going to prioritize margins in this moment and make sure (inaudible) time that we're meeting our margin targets. And so we're assuming this scenario is gradual slowing of HPA, gradual slowing of volumes, and we feel really good about our ability to respond to that.

我認為這個問題有兩個部分。一個是我們如何——如果我做對了，我們將如何應對今年餘下時間不斷變化的 HPA 環境。我會回到利率一。我們一直與我們之前就我們對住房可能表現的預期所做的評論保持一致，要明確的是，有一個很好的情況是住房會在更長時間內變得更強勁，只是考慮到結構上沒有供應的事實現在。話雖如此，我們現在將優先考慮利潤率，並確保（聽不清）我們達到利潤率目標的時間。因此，我們假設這種情況是 HPA 逐漸放緩，交易量逐漸放緩，我們對自己的應對能力感到非常滿意。

So on the second half question, which is around rates, I guess there's -- as it relates to our P&L, I'd say a couple of things. We're certainly modeling rising rates into our forecast, understandably. We expect (inaudible) the overall impact to our P&L should be quite manageable. This is consistent with the comments we made last quarter, but just to parse it through. If you look at our senior loans and how we finance our homes, today, that cost us about 70 basis points on a per home basis just based on the turns we have. And if you extend that and look through to the end of the year, we'd expect that to increase on the order of (inaudible) 100 basis points.

因此，關於利率的後半部分問題，我想有 - 因為它與我們的損益有關，我會說幾件事。可以理解，我們當然將利率上升建模到我們的預測中。我們預計（聽不清）對我們損益表的整體影響應該是可以控制的。這與我們上個季度的評論一致，但只是為了解析它。如果您查看我們的高級貸款以及我們如何為我們的房屋融資，今天，僅根據我們擁有的轉數，我們每戶花費大約 70 個基點。如果你把它延長到今年年底，我們預計它會增加大約（聽不清）100 個基點。

And that's based on a combination of things, certainly, the forward curve [which exists] today and how we assume we're going to mix in different senior facilities over the course of the year. The net of that increase, maybe 30 basis points, is pretty modest relative to our overall cost structure. And perhaps more importantly, it's important to understand that we pass on the full cost of interest to the customer via our spreads, our objective is we're going to manage to contribution margin after interest to be neutral.

這是基於多種因素的組合，當然，今天[存在]的遠期曲線以及我們如何假設我們將在一年中混合不同的高級設施。相對於我們的整體成本結構，增加的淨值（可能是 30 個基點）相當適中。也許更重要的是，重要的是要了解我們通過點差將全部利息成本轉嫁給客戶，我們的目標是我們將設法在利息後的邊際貢獻保持中性。

Our next question comes from Ryan Tomasello with KBW.

我們的下一個問題來自 KBW 的 Ryan Tomasello。

Just following up on the seller conversion, nice to see that still holding in strong despite the strong sellers environment. But curious if you've noticed any initial signs of benefit to conversion rates in any markets that may already be starting to [go off]. I guess where do you think that 35% plus conversion could go in a more normalized environment? And do you -- have you put any long-term internal targets around that metric?

只是跟進賣方轉換，很高興看到儘管賣方環境強勁，但仍然保持強勁。但是好奇你是否注意到任何可能已經開始 [go off] 的市場中的轉化率有任何好處的初步跡象。我猜你認為在更規範化的環境中，35% 以上的轉化率可以去哪裡？你有沒有圍繞這個指標制定任何長期的內部目標？

Ryan, it's Eric. Again, like I mentioned, we're quite pleased with some of the early evidence we're seeing that as we've increased spreads, obviously, it's reflective in our gross margins and contribution margins. We have not seen a material damage to the conversion rates. And again, we had a hypothesis going into this even back when we founded the company that when there's the most uncertainty, that's when Opendoor is needed the most, which means that we're creating the most value when there's times of uncertainty. And subsequently, we can actually capture that value that we're creating for consumers. I don't -- we don't have a view today on what that could look like through any softening in the back half of this year. But we're certainly optimistic that our conversion rates will be steady at the very least. And so again, as we think about increasing spreads throughout the year.

瑞恩，是埃里克。同樣，就像我提到的那樣，我們對我們看到的一些早期證據感到非常滿意，因為我們增加了價差，顯然，這反映在我們的毛利率和貢獻率上。我們還沒有看到對轉換率的實質性損害。再一次，我們甚至在成立公司時就有一個假設，即當不確定性最大的時候，就是最需要 Opendoor 的時候，這意味著我們在不確定的時候創造了最大的價值。隨後，我們實際上可以捕捉到我們為消費者創造的價值。我不 - 我們今天對今年下半年的任何軟化可能會是什麼樣子沒有看法。但我們當然樂觀地認為我們的轉化率至少會保持穩定。同樣，當我們考慮全年增加點差時。

And then considering the geographic expansion that continues, can you say what level of, I assume, drag that these new markets are initially having on the consolidated business, maybe in terms of the margin delta between your most mature markets and your ramping markets, if that's the way you look at it maybe on a contribution profit basis?

然後考慮到持續的地域擴張，你能說一下我認為這些新市場最初對合併業務的拖累程度嗎這就是你看待它的方式，也許是在貢獻利潤的基礎上？

Yes. It's Andrew here. The reality is pretty small in terms of the drag and actually in our updated investor presentation, we actually shared some of the cohort profiles of what margin looks like in those markets, and they're all positive and they're removing actually the profitability even more quickly than any of our prior cohorts have.

是的。這裡是安德魯。就阻力而言，現實非常小，實際上在我們更新的投資者演示文稿中，我們實際上分享了一些關於這些市場中保證金情況的群組概況，它們都是積極的，它們實際上甚至消除了盈利能力比我們之前的任何一個隊列都快。

Our next question comes from Justin Ages with Berenberg.

我們的下一個問題來自 Justin Ages 和 Berenberg。

Just wanted to follow up on the entry into the New York, New Jersey, San Francisco markets. Can you talk about any additional oversight that you guys take into account given some of the uniqueness of the houses in those areas, if any? And then a follow-on after that.

只是想跟進進入紐約、新澤西、舊金山市場的情況。考慮到這些地區房屋的一些獨特性，你能談談你們考慮的任何額外監督嗎？然後是之後的後續。

Sure. Look, I think, first of all, what I'd call out is our ability to enter the San Francisco Bay Area and New York, New Jersey it's actually a testament to 8-plus years of investment in our pricing and investment platforms. Our ability to underwrite a market is the fundamental gating item for us to enter a market. And that's what we look at. And we rigorously, rigorously test that before we launch. And that actually after we launch, our focus is not on growth in those markets, our focus shortly after launch is making sure the model is performing the way we expect them to. And what we've seen so far is that, that's what happens. And we monitor every market launch very, very carefully and very closely. And it's only once we feel comfortable with the risk we're taking on that we actually begin to apply our go-to-market playbook and (inaudible) in those markets.

當然。看，我想，首先，我要說的是我們進入舊金山灣區和新澤西州紐約市的能力，這實際上證明了我們在定價和投資平台上進行了 8 年多的投資。我們承銷市場的能力是我們進入市場的基本門控項目。這就是我們所看到的。我們在發布之前嚴格、嚴格地測試。實際上，在我們推出之後，我們的重點不是這些市場的增長，我們在推出後不久的重點是確保模型按照我們期望的方式運行。到目前為止，我們所看到的是，這就是發生的事情。我們非常、非常仔細、非常密切地監控每一次市場發布。只有當我們對我們所承擔的風險感到滿意時，我們才會真正開始應用我們的上市手冊並（聽不清）在這些市場中。

All right. That makes sense. And then on the vendor management system that you guys called the attention to in the letter, have you seen any improvement in kind of the inventory turnover? I know you mentioned 90 to 100 days, but is there reason to believe that, that system can bring those numbers lower and improve significantly or reduce the holding times?

好的。這就說得通了。然後關於你們在信中提到的供應商管理系統，你們看到庫存周轉率有什麼改善嗎？我知道您提到了 90 到 100 天，但有理由相信，該系統可以降低這些數字並顯著提高或減少持有時間嗎？

We're relentless in our pursuit of operational excellence. And the team is hard at work, constantly turning over rocks, looking for opportunities, embedding process improvements into technology, into platforms so that we can continue to drive down our cost structure. And I think one of the things you saw is that over a 3-year period, we've actually been able to drive 240 basis points of structural margin improvement. And a big portion of that is cost. And so yes, we do believe that continuing to invest in our technology and operations platform -- I'm sorry, our transaction and operations platform will continue to yield cost savings.

我們不懈地追求卓越的運營。團隊正在努力工作，不斷翻身，尋找機會，將流程改進嵌入技術和平台，以便我們能夠繼續降低成本結構。而且我認為您看到的一件事是，在 3 年期間，我們實際上已經能夠推動 240 個基點的結構性利潤率改善。其中很大一部分是成本。所以是的，我們確實相信繼續投資於我們的技術和運營平台——對不起，我們的交易和運營平台將繼續節省成本。

(Operator Instructions) Our next question comes from Stephen Ju with Crédit Suisse.

（操作員說明）我們的下一個問題來自瑞士信貸的 Stephen Ju。

So I was wondering if you can give us an update on the uptake rate of some of your ancillary services, I think some time ago at least for the title and escrow product I mean there was a high -- pretty high uptake in those markets where they were rolled out first. So where are the most mature markets now? And is there any reason to believe why there should be some sort of structural ceiling below 100%, almost full adoption. And are those markets that are a bit newer in terms of these products were being rolled out. Are you still seeing a similar adoption path as some of the original/older ones?

所以我想知道您是否可以向我們提供有關您的一些輔助服務的吸收率的最新信息，我認為至少在前一段時間，至少對於標題和託管產品，我的意思是在那些市場有很高 - 相當高的吸收率他們首先推出。那麼現在最成熟的市場在哪裡？有沒有理由相信為什麼應該有某種結構上限低於 100%，幾乎完全採用。那些在這些產品方面更新的市場是否正在推出。您是否仍然看到與一些原始/舊的類似的採用路徑？

Specific to our title business, we continue to see strong attach rates overall. We do see different attach rates market to market as we launch, particularly as we enter new or different states. One of the things we're very conscious of, particularly early in a market's life cycle is that we have flexible capacity, we can go up and we can go down as needed. And so we're prioritizing that flexibility in some ways early in markets over just the absolute highest attach because we actually think that leads to better system level profitability over time.

具體到我們的產權業務，我們繼續看到整體上的強勁附加率。當我們推出時，我們確實看到市場之間存在不同的附加費率，特別是當我們進入新的或不同的狀態時。我們非常清楚的一件事，特別是在市場生命週期的早期，我們有靈活的容量，我們可以根據需要上升和下降。因此，我們在市場早期以某些方式優先考慮這種靈活性，而不是絕對最高附加值，因為我們實際上認為這會隨著時間的推移帶來更好的系統級盈利能力。

And so we, I would say, see very strong attach overall in our title business. We don't think it goes to 100% per se, but we think where it is, is a pretty good indicator, and we think that we'll see that in all of our markets.

因此，我想說，我們在產權業務中總體上看到了非常強烈的依戀。我們認為它本身不會達到 100%，但我們認為它在哪裡，是一個非常好的指標，我們認為我們會在所有市場中看到這一點。

That concludes today's question-and-answer session. I'd like to turn the call back to Eric Wu for closing remarks.

今天的問答環節到此結束。我想把電話轉回給 Eric Wu 做結束語。

Thank you. I just want to say that I'm incredibly proud of the Q1 results. And as Carrie mentioned, (inaudible) entire team for working hours and hours on servicing our customers and delighting them. We are managing our business with a great deal of discipline around our margin and cost structure. And more importantly, we believe we're going to be net beneficiaries and market share gainers from any upcoming volatility. Our future is very bright. And we are reshaping the entire real estate marketplace with a far superior digital product in a $35 trillion market. Thank you.

謝謝你。我只想說我對第一季度的結果感到非常自豪。正如 Carrie 所提到的，（聽不清）整個團隊為我們的客戶提供服務和取悅他們的工作時間和時間。我們正在圍繞我們的利潤和成本結構嚴格管理我們的業務。更重要的是，我們相信我們將成為任何即將到來的波動的淨受益者和市場份額增加者。我們的未來非常光明。我們正在以價值 35 萬億美元的市場中卓越的數字產品重塑整個房地產市場。謝謝你。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。