Innovating from within, Opendoor announces Mainstay as an independent company

Since 2014, Opendoor has been home to the real estate industry’s leading innovators and entrepreneurs who are fundamentally transforming the experience of buying and selling homes. While industries like transportation and financial services have rapidly embraced the power of online services, residential real estate still has approximately 99% of transactions happening offline – a disservice to the more than four million Americans who sell a home annually. Opendoor was founded to disrupt this ~$1.6 trillion industry by making the moving process easier. We are creating world-class technology supported by data-driven insights and backed by experienced, entrepreneurial teams leading the future of real estate.

It is because of the team’s innovation and drive to transform an archaic industry, that Khosla Ventures has invested in Mainstay, formerly Open Exchange, a separate business line within Opendoor. Mainstay is a comprehensive market intelligence and transaction platform for the single-family rental industry, which we started in order to better serve enterprise customers. The outside funding of Mainstay marks its separation from Opendoor, enabling both companies to focus on building their respective businesses with independent teams and resources. While Opendoor will retain less than 50% ownership on a fully diluted basis, it will continue to be the largest shareholder, enabling it to benefit from any future upside in the business.

“Americans deserve an easier and more certain way to sell and buy homes– and real estate should be more accessible through online, tech-forward products and services,” said Carrie Wheeler, CEO of Opendoor. “I’m proud of our team and those who have built Mainstay. Their focus on providing deep insights via data and leveraging the integrated transaction platform capabilities created by Opendoor empowers everyone looking to move. ”

“We’re grateful to the Opendoor team for its support as we’ve built Mainstay over the past few years,” said Mainstay co-founders Dod Fraser and Nate Harbacek. “The entrepreneurial spirit of Opendoor and its commitment to innovation is what enabled the formation of Mainstay. During our more than eight years at Opendoor, we’ve been fortunate to experience first-hand the impact this company has had on the industry and its customers. As we move to Mainstay, we look forward to similarly helping to transform the single-family rental industry.”

Opendoor builds technologies and services that give consumers more transparency, simplicity and certainty in real estate transactions. It is through our industry-leading, e-commerce platform and our guiding principle to “start and end with the customer” that we will continue to help more people reach their next chapter as we power life’s progress, one move at a time.

NOTE: The Company is in the process of assessing the financial statement impact of the fundraise, but we do not anticipate recognizing Mainstay’s ongoing financial results in Opendoor’s income or loss from operations going forward. Mainstay’s business had a de minimis impact on Opendoor’s revenue and Contribution Profit in the first half of 2024 and incurred approximately $17 million of Adjusted Operating Expenses. Mainstay will continue to be led by Dod Fraser and Nate Harbacek.

NOTE: Contribution Profit and Adjusted Operating Expenses are non-GAAP financial metrics. Please see our shareholder letter posted on August 1, 2024, on our investor relations website (investor.opendoor.com) for full financial data and the reconciliation of non-GAAP financial metrics to their most comparable GAAP measure.

NOTE: This post contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are statements that could be deemed forward-looking, including, but not limited to, statements regarding Opendoor’s and/or Mainstay’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 undue reliance should not be placed on them. Such forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those discussed here. 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, 2023, as updated by our periodic reports filed after that 10-K. Any forward-looking statements made herein, including responses to your questions, are based on management’s reasonable current expectations and assumptions as of today and Opendoor assumes no obligation to update or revise them whether as a result of new information, future events or otherwise, except as required by law.