Ahead of the SPAC-led public launching, what can we find out?
As investing whirlwind Chamath Palihapitiya continues to make headings with his full-court press to take personal tech companies public via SPACs while markets are hot, one of his targets has actually revealed monetary information that assists us much better understand the deal it is undertaking.
Palihapitiya’s Social Capital Hedosophia Holdings Corp. II (a public, blank-check business, or SPAC) is integrating with Opendoor, a San Francisco-based tech startup that helps with realty transactions. Opendoor frequently purchases homes from sellers, later offering them itself. Offered the complexity present in the property real estate market and its scale, the company is a fascinating play.
TechCrunch covered the Opendoor-SPAC tie-up in mid-September, when it was revealed. The other day we got a fuller look into Opendoor’s monetary results. This morning, let’s peek at the numbers to see if we can spy what Palihapitiya talked about in his investment thesis concerning the business’s future prospects.
Opendoor’s 2020 outcomes are not excellent. However that fact is not a surprise. The business went through a round of layoffs in April, affecting around 35% of its personnel at the time.
Even then, TechCrunch reported that “house sales haven’t fallen as far or as quickly as one might imagine.” In numerous markets the real estate market has shown surprisingly long lasting throughout the COVID lockdowns as some leave major cities for smaller sized towns.
Opendoor states plainly in its SEC filing worrying its mix with the SPAC that COVID has actually “adversely impacted our company.” Its outcomes, then, are framed by a changing market and a pandemic, even if locations of residential realty have held up better than we may have anticipated.
Here are Opendoor’s raw numbers, for your perusal:
You have to read right-to-left to follow the circulation of time correctly.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.