Q3 2021 Opendoor Technologies Inc Earnings Call

Good day, and thank you for standing by and welcome to the open door.

Third quarter 2021 earnings conference call at this time, all participants gonna listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question during fashion, you'll need to press star one on your telephone. Please be advised that today's conference is being recorded.

You require any further assistance please press star zero I.

I would now like to hand, the conference over to your host today at least.

Please go ahead.

Thank you and good afternoon.

About results and additional management commentary are available.

And shareholder letter, which can be found on the Investor Relations section of our website at <unk> Dot <unk> Dot 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 I've been doing future financial results and management's expectations and plans for the business.

These statements I need the promises no guarantees and 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 open doors annual report on Form 10-K for the end of December 31st 2020, and open doors, all the periodic SEC filings, including the cool, though you report on form 10.

Q for the period ended September 30th 2021 to be filed with the SEC.

Any forward looking statements made in this conference call, including responses to your questions are based on current expectations as of today and open doors dreams, no obligation to update or revise them, whether as a result of new developments or otherwise except as required by law.

The following discussion may contain non-GAAP financial measures.

For a reconciliation of each of these non-GAAP financial measures to the most directly comparable gasometric. Please see our web site at <unk> Dot <unk> Dot com.

I will now turn nickel labor to Eric Blue closed down to and Chief Executive Officer.

Good afternoon, and thank you for joining us today I'm excited to share our third quarter results alongside Terry Wheeler, Our Chief Financial Officer, and Andrew Milwaukee, Our president aligning with their first core value, which is to start and then with the customer I Wanna ground up at our work with a recent customer story.

You'll hear from Tyler Butler, who sold his home and bought a home completely with open door, while fulfilling a childhood dream.

Hi, I'm Tyler bomber I live in Litchfield Park, Arizona, and I bought and sold my House and open door.

The Big reason why we wanted to move was one we wanted to find the dream home and probably most importantly was getting too.

Ah location that had really high marks for education or something when.

When we first started the process a lot of the apprehension you had was trying to locate.

Gary ideal or specific home that we wanted.

Also selling your home.

We've sold potentially Buck convention prior and going through that process.

And then going through open doors process.

I don't I really couldn't put a value too.

How much easier that process was.

What they made possible for us was.

Eventually.

Getting a.

Ah like that we didn't think was with possible being able to sell a home that we.

We're not quite sure we'd get what we want or even if the cell would go through and to be able to buy a home move into our dream neighborhood and Dream House.

The open door experience.

I'd say, probably just one word.

Easy.

We often side externally that two thirds of salaries are also buyers, but we rarely detail the complexity and timing of managing to transactions, while balancing the realities of life.

And these reality is include the forming of a new family the pressures of work the hearts of of a pandemic the death of a family member or the drive for a better School district. This is why our work matters.

Our vision, which has remained the same since starting open door, if they make it possible to buy <unk> at the top of a button.

We know the end state for the real estate market place will be a simple certain and fast transaction powered by technology.

It's not a matter of if but when.

So we've been heads down building this future experienced piece by piece with a consumer in mind at every step or a third quarter results are a byproduct of this focus exceeding our expectations on the top line and bottom line, we generated $2.3 billion in revenue acquired over 15000 homes delivered over 100.

$70 million contribution profit and generate a 35 million of adjusted EBITDA.

While we're clear on our vision and strategy. The foundation of our performance has been and will continue to be our team and execution.

In terms of our team we've added substantial talent this past quarter.

In addition to expanding our political decorative across pricing engineering product operations and people tease we've made three acquisitions.

Required co dot com and skylight two seasons really special teams that are spent years, combining logistics and technology to build digital consumer experiences to upgrade a home.

This will in turn strengthen our ability to continue to scale or home operations.

We also acquired Red door Dot com, a digital hub balancing products, which makes it possible to get pre qualified for a mortgage and less than 50 seconds with an elegant model experience.

Are you excited to welcome our new teammates open door as we build out the next evolution of our products in terms of our execution, we're continuing on our journey of driving existing market growth expanding nationwide and building an end to end digital experience.

With an existing market growth in Q3, we saw material games and the adoption of open door growing acquisition by 79% and resales by 72% quarter on quarter.

This was driven by rising consumer awareness and expanded by box coverage, which again resulted in record offer growth and record real seller conversion.

As a tangible example of the impact of our pricing and cost advantages nearly half of our acquisitions are coming from our expanded by box.

With an expanding nationwide, we lost five new markets and two three bringing our total footprint to 44 markets more than doubling our market account year to date and ahead of our 2020th one forecast.

With our growing footprint, we are already seeing the benefits of increasing scale and driving awareness and operational efficiency, which further reduces the cost and effort to lots more markets upcoming we're laying the groundwork for continued expansion next year and well on our way to our long term goal of servicing customers and every market.

Nationwide.

Most importantly, we continued our investments and building the digital one stop shop for movers there.

Generational shift happening from offline the online and we intend to capture this opportunity.

Last week, we lost Opendoor complete which brings together all the disparate steps to buy and sell a home into a single streamline the experience.

Open door complete provides homeowners certainty and instant access to the equity in their home the power and guarantee of our cast to strengthen and buyers off or have the ability to line up closing date to avoid double moves and double mortgages. This.

This is the integrated experienced buyers and sellers are demanding.

We are not standing still we're pushing forward with the same speed focus and grit that has defined us over the past seven years.

Now turn it over to carry to discuss our financial performance.

Thanks, Eric is Eric said Q3 with another strong corner for open door.

Purchase 15181 home at 79% for his cue to.

This growth was driven by our superior value proposition and robust operation capabilities, which led to record levels of offers and record real seller conversion.

By the last expansion providing strong tailwind.

45% of the home declared keeps me coming from our extended by box at the end of 2019.

In addition, our brand owning efforts and lifecycle marketing delivery strawberry than anticipated growth.

On the resale of Fries, you said 5980 homes.

72% versus key too and generate revenue nearly $2.3 billion.

91% quarter over quarter.

We exceeded the height of her guidance, primarily the unit blames driven by strong home acquisition growth and the overall strength of demand for homes would you like to attach yourself to rape emitted case of painted.

Home price appreciation and bought price related by box games were also tailwinds revenue driving a sequential increase in revenue for home field of 11% Alright.

Alright, Jesse gross profit margin was 10.3% and a contribution margin with hidden 0.5% in Q3, these continuing to 13.5% and 10.8% respectively and can you too.

Clincher moderation is in line with our expectations and our prior guidance.

As a reminder, we believe we can sustainably liver mid single digit contribution margins have approximately 46% on annual basis, given a cost structure and the strength of a pricing and operational capabilities.

Q1, and Q2, our margins outperform these novels for two primary reasons.

One and he exited 2020 with very little inventory levels are resale makes it was heavily over index two recently acquired house.

And two we are deliberately at the conservative and how much HPA, we embedded into our pricing in the early part of the year, particularly as HPA accelerated throughout Q1.

Restart both of these temporary factors begin to online Q3 in line with our internal expectations and the guidance you provided last quarter.

We expect to be back operating within our 46% target Marie D range in queue for.

Over the long term you believe this moves to 79% as we continue to grow our services revenue and margin streams.

One additional note on unit margins given the news in the last few weeks.

We understand the importance of one forecasting and two managing seasonal and macro market changes, we can prioritize our investments and our pricing capabilities across acquisition valuation forecasting and resale systems since our inception.

Vestments pay with a strong risk management DNA, that's embedded in our pricing our operations and our finance team Arthur.

Our philosophy for growth has always been and will continue to be anchored and disciplined unit economics.

I would note the Q4 of 2021 will Margaret 20th consecutive quarter of positive contribution Martin.

Adjusted EBITDA and a quarter was $35 million compared to 26 million in queue too.

Adjusted EBITDA was well ahead of our expectations due to revenue outperformance and strong you to economics, both of which provide incremental leveraged against their operating expense base.

Adjusted operating expenses defined as a gentleman between adjusted EBITDA and contribution profit for $135 million.

33 million quarter over quarter.

We expect Q4 opex to increase sequentially by approximately $20 million in Q3 levels and we continue to invest in our platform and growth.

We ended the quarter with adjusted net income of negative $17 million compared to positive $2 million in queue too.

Leave your adjusted net income is the best proxy for free cash flow as it distinguishes true free cash flow on an operating basis, how we found our inventory purchases.

Turning to the balance sheet.

We ended Q3 with $1.8 billion in cash and cash equivalents and marketable securities as well as $484 million and we strictly cash they represent working capital related to our inventory financing as of today, we have more than doubled our maximum borrowing capacity from last quarter up now from $9 billion across our nonrecourse.

<unk>, we are well Capitalised, if you look tremendous growth, we're seeing across our business.

Turning now to our guidance.

We are reiterating the expectations, we laid out last quarter, which puts us at a run rate polls for our original three year financial plan by two years.

Overall housing fundamentals remains strong with inventory levels at multi decade lows for this time of year alongside continued high demand for single family housing.

HPA softened relative to all time highs largely due to seasonality the remains positive and well above the typical levels expected for this time of year.

But most importantly, the dominating driver for our business is that customers value the simplicity uncertainty of our products and product adoption continues to accelerate.

This is evident in our acquisition volume growth of almost 80% quarter on quarter, which puts us in an annualized gz run right north of 20 billion.

We expect queue for acquisition volumes to be lower than third quarter due to proactive volume management initiated in the middle Q3, as well as a typical seasonal slowdown associated with Q4.

Is our growth significantly exceeded our expectations, we need the decision to meter acquisition growth and ensure we continue the liver as seamless customer experience.

Have been and continue to invest aggressively our internal operations vendor network and choosing in automation to lay the foundation for another strong year of growth in 2022 will continuing to meet our overall customer operating and financial objectives.

We expect fourth quarter revenue to be between 3.1, and $3.2 billion, which represents 39% sequential growth over Q3 at the midpoint of the expected range.

And we expect adjusted EBITDA in the range of negative five deposit of $5 million, which represents breakeven at the midpoint.

This outlook is consistent with the expectations, we outline last quarter.

We are proud of Q3 kudos to our team for these results for their agility and navigating market conditions and a period of hyper growth and for their unwavering focus on delivering a simple certain entrusted experience to our customers and with that will now open up the call for questions. Thank you.

And thank you as a reminder to ask a question you'll need to press star one on your telephone to withdraw your question press the pound key and we please ask that you limit yourself to one question.

And our first question comes from Nick Jones from City. Your line is now open.

Great. Thanks for taking my questions I guess, maybe too one can you touch on housing pricing volatility.

And how you feel your model is kind of position to withstand that kind of detected given kind of a turnover.

And then if they price.

Price of Jacob pressed a little bit.

How much contribution margin compression can we expect and how much can a kind of model withstand given some of the other kind of headlines that I buying of over the last two weeks.

Quickly, let me before I pass by carrying talk about the the price housing price volatility question and the compression of contribution margin.

<unk> I just wanted to reemphasize that we're at a generational shift and housing from offline the online and we understand it carefully the consumers love our product and we have very strong stable unit economics.

So let me let me pass the carrier talks about the two questions you have.

Thank you Sir.

Uhm embedded in your question is how do we price for home and how do we think about forecasting.

A couple of comments one we're very good at this is this is core to what we do we have built over the last seven years very robust pricing systems, we have seven years investment in the data in the modeling and in our team that allows us to continuously improve how remodel and approach home price valuations.

We are offering a business or the child discipline is Eric said, we originally bad testing or models everyday they're highly responsive fast feedback loops, and we can react to changing market conditions.

Are forecasting accuracy with what allows us to manage the business within a reasonable range of outcomes.

And deliver margins within that 4% to 6% contribution margin range that we've gone into.

Ultimately the proof of our ability to do that as a result, I just want to mention again Q4 will mark our 20th consecutive quarter a positive.

Today's housing.

Housing and forecasting question in total.

Part two of your question was around contribution margin and how they may fluctuate and changes in HPA.

Important is that our model really works an upmarket it's going to work implant market is going to work in down markets. We've talked about this before but we are a market maker.

To find that that means we provided with plenty of the customers were pricing uncertainty and we're taking a spread we're getting paid for that.

And we're managing that our business to that 4% to 6% range I just indicated in HPA, where to go down we would look to fluctuate increase our spreads to manage to that target market margin range. So I would not marry HPA trend and contribution marine training together.

We're driving for consistency within that range of outcomes.

Yeah.

Great News, maybe I could ask a follow up just around pricing models I think there's a lot of.

There's a lot of available data to a lot of people to try to kind of.

Real estate agents do this.

Has a ton of data is there is there an angle to kind of how the data structure and applied that.

We need to think more about.

In terms of kind of a competitive mode.

Okay.

That's a good question and something that we treated proprietary and.

A large competitive moat that compounds as we get the scale of the time and so I would just say that since we started open door. This has been corn foundational to the business and we've invested.

Time energy and the team the data pipelines, how we think about feedback loops across multiple vectors of pricing to be in the business position. We are in today and so I'm not going to speak to the specifics, but it is a is a very big investment area for the company.

Great. Thanks for taking my questions.

Thank you.

And thank you and our next question comes from Jason Health steamed from Oppenheimer. Your line is now open.

Thanks to how much of the 11% quota quota increase in revenue for homeless.

Byproduct of the buyback expansion versus home price appreciation and then back in with a halo exiting.

How do you think that impact marketing efficient you're marketing efficient.

No impact or just general thoughts Paradise.

Hey, Jay and be at 11% increase in revenue per home.

A mixer I'd say price related by birth expansion and Sanders market appreciation, we don't like to think that specifically, but I would say that it's a good mix of both.

More ready to the Bible outside.

Yeah. So the second part of the question I would just say that the the value proposition is resonating and it's resonated before zillow within the category and it will continue to resonate as we expand nationwide and drive deepening market share within our existing cities. In fact, we see the after happening as as we get to ski.

Oh within cities are marketing becomes quite efficient.

Thank you.

And thank you.

And our next question comes from your Golf Rooney in from Wedbush Securities. Your line is now open.

Hey, good afternoon.

So.

One of the things that came up over the past couple of weeks with what's happened and my bank business, but unpleasant side. The other thing that's come up is on the operational side you touched on it.

Comments.

And an investor letter can you maybe expand on scout a little bit how it drives benefits and helps you scale more more efficiently.

You mentioned I think when you guys first Ramon public 10000 contractors on the App you update that number and then maybe talk a little bit about how how the acquisitions and integrate with scout and can I help you.

Improve your scalability on the operational side.

Hey, Andrew here happy to speak to that we did see acquisition demand significantly outpaced our own expectations are getting early in Q3, and we took steps to proactively manage the overall system balance.

Is it really a good reflection of the integrated system, we run here I'd open door.

You mentioned and scout and our ability to absorb that 80% quarter over quarter increase in our acquisition volume really highlighted seven years of investment not just in scout, but in our technology and operations platform more broadly capabilities like centralization the ability to take calls from a cross or 44.

<unk> footprints in one location or virtualization, you, who introduced it for customers or.

Employees or vendors to do things.

Instead of imperfect or self serve which less Ah customer do things and take action on their own timeline when it most convenient for them without ever evolving earth, those or capabilities that don't happen overnight.

Those investment actually that let us flex up so rapidly so quickly even.

While maintaining the customer experience to an incredibly high standard.

Okay. That's really helpful and then I guess.

And all this happening a little bit lost in the shop or something that usually gets a little bit more. Thank you Mister <unk> on the ancillary services in any update on on that in general and open back offers and then how how open a complete and for how you expect open a complete the kind of pilot together and potentially better attach in coming quarters.

Sure.

Sure back last quarter, we share that we have that 1 billion dollar GMB milestone an open door back offers and that really was about product market.

That are open to her back offers were helping customers be more successful in winning their next toe right. Now we're focused on scalability, making sure our hacking off platforms for our services are ready to scale.

Perfect comment on our core business, we know that those upfront investments are critical to deliver a great experiences over time and we're focused on investing there. We continue to make make progress as you called out we launched open to work complete last week, which helps the nearly two thirds of sellers who are also.

Bye have certainty on their sale and the equity in our home.

Power of an open door back operatively, Ernesto and convenience of lining up all the dates all the power of open an organization in one seamless offer it we also announced the acquisition of radar.

Digital mortgage brokerage the delivered a truly delightful customer experience Eric mentioned in the prepared remarks, a buyer can go from happy install the prequel in less than 60 seconds.

We're focused on getting the integration and licensing Donna look forward to rolling that out in the early part of next year. Overall, we're seeing strong five that V and digital experience is what our customers credit and we're confident that our strategy and execution will deliver for years to come.

I appreciate the answers.

Thank you.

And our next question comes from Stephen Jew.

Credit Suisse. Your line is now open.

Alright. Thank you so much I'll I'm sorry, if this it was covered a little bit earlier, but can you talk about your level of inventory filling up this quarter should we be thinking that the traditional holding period of around 90 to 100 days, maybe elongate and a bit here. So.

Give yourself a little bit more time to refurbish given the labor constraints or.

Is there another operational factor that scored it through a decision here.

And and I guess, there's probably nuances for each market, but are you finding that the timeline to lodge each subsequent city or market is coming down as you get more practice then.

At this point, how much prep work or timeline does it usually take to go into each your market. Okay. Thanks.

Atheist, carrying any other touch base, a little bit Ah Metairie House, Andrew speaking the last part of your question.

Yeah inventory guerilla last quarter, that's a function of us growing to a good thing and.

And we feel good about what we're doing right now and the pace of our resale or recent payment is going to be slower or faster, depending on the market and by Maureen and certainly time of year is one consideration there and people don't love moving during the holidays. So Q4, maybe four Q1, a little bit faster et cetera, we factor our research.

Expectations and to have the price and how we manage our inventory and I'd say the queue for you reflects that resale pace and where we're at right now against what continues to be a very healthy housing market.

Nothing fundamentally has changed really matter holding period.

Andrew to comment on the.

The latter part of your question sure.

I think two parts in there the first around holding periods.

Overall, we did as I mentioned and take steps to proactively manage the overall system here at this.

This imbalance because that that's holding period is elongate it.

We're confident that the supply will be balanced with our demand outlook across the vast majority of our 44 market footprint by the end of the year now certainly we see some of the labor constraints that are so prevalent across the country right now, but it's really important to call out the homes, we buy our debt home good conditions.

Typically do small jobs life repairs are getting a home resale ready doesn't require specialty labor. So we feel good about our ability to have that system completely imbalance.

By the end of this year and then I think you also had a question in there around the time to launch launch additional cities.

We have more than doubled our market footprint. We started the year with 21 markets were now in 44 that twenty-three market increase it's really a testament to our team's execution.

<unk> at the playbook that we've made.

You saw is actually not only watched twenty-three markets here today, you saw March six markets in a single day and that's a function of the time and investment in centralizing team. So that we could launching scale more quickly.

And about the heinous continues to be hard at work to expand our footprint nationwide. So we feel good about our playbooks there.

Thank you.

And thank you and our next question comes from Michaeline from Goldman Sachs. Your line is now open.

Hey, good afternoon. This is out of hodgkiss on for Mike. Thanks for taking the questions I have two <unk>.

First you mentioned the record real seller conversion, which I think given the bidding wars in the market and high velocity of homes going through the traditional process seems to be quite impressive could you give us a sense for what dynamics. You think are driving this quarter and then second.

With the 45% of acquisitions, you mentioned coming from the expanded by box since 2019 could you give us a sense of how much of that is new markets versus the expansion of the buy box on some of your other core markets I guess it would just be good to get a sense of how quickly you ramp to buy box and more heterogeneous markets as you launch them and what gives you the confidence there.

Thanks, so much.

Yeah I appreciate the question Adam So we're like you mentioned, we're seeing record highs and two vectors, which is offer request and then real solid conversion and what I can highlight is that we work and we have been and continue to focus on three factors to drive conversion, which is simplicity start team speed. The last sector that we started to focus on is is.

Really trust and we see that as we get depth and markets.

The mouth takes over a M. B S is north of 80 and that helps to drive additional conversion.

An offer awareness to.

The second part of the question I'll password to carry to talk about.

The market the baybars expansion, yeah, I'm happy to say, the 45% increase in <unk> and see 2019 time period in the vast majority of that is driven by what's in our existing markets. It's just expanding the.

Surface area, we can cover with any given market, whether that's home type of price. Her age would have you, it's really mostly driven by the existing market that.

And thank you.

And our next question comes from Edward Rumour from Keybanc capital markets. Your line is now open.

Hi, This is that his name Nick on for AD. So I know that you know penetration of Ibuying is still low but can you believe that salaries were crushed shopping different I buy it and then if so have you seen any localized pricing changes due to the exited fill out and then add a second part to the question on the teeth.

The bypass has expanded to higher value homes and are you also open to older housing stock our homes they require more prepared remodel.

I appreciate the question. So the first part of the question was how we observed cross shopping and Ibuying and what is the impact of less competition.

I think.

Well, we've seen is that if we can if we can meet customer expectations and.

And deliver again on a simple and fast transaction.

That people will say, yes to open the door.

And.

While there are cases, where people are cross shopping where invested heavily in experience offers for capabilities to lower the costs are partly accuracy to win the trust of our customers again conversion is north of 35%. So cross shopping hazard at all impaired our ability to grow and and.

In fact, there is in our perspective too much demand for our product.

And on your question around buybacks changes.

Kerry mentioned, that's really expanding our coverage of homes that we can offer on we wanted the light more customers with the experiences we offer and that could be any number of diamond changed that drive that expansion. It could be an older home it could be the home price it could be a little bit around home condition.

Could be.

Take take your pick of the long list of different attributes that drive that expansion in our team and really good about finding those opportunities, where we were where we were not making offers to customers and expanding our offering to them, while making sure that we felt really good about the pricing accuracy and the our.

<unk> forecast.

Okay. Thank you.

And thank you.

And ladies and gentlemen, if you'd like to ask a question that is star one again, if you'd like to ask a question that is star one and our next question comes from Ryan Mickey Rooney from Zelman an associate your line is not open.

Hey, Eric and Kari Congrats on the results and thanks for taking my question. So.

Obviously inventory risk management is clearly top of mind here and.

Terry you mentioned risk management.

DNA of the company. So at the end of the day, obviously, we can see the results in terms of the unit margins, obviously remaining good the inventory valuation of determined staying very modest relative to the size of the inventory. So to ask several of my colleagues how can they call it <unk>, but a bit different way.

Part of it clearly relates to the pricing accuracy at the start but then their salsa managing things once it's an inventory managing that risk resale pace can you talk about your philosophy around whether it's managing cohorts based on geography, your time in inventory and ultimately just thinking about that tail risk of the portfolio.

Oh and kind of how you think about managing that to avoid this situation, where you get caught with some inventory that's maybe not selling for where you thought it would just just general thoughts on the risk management side would be helpful.

Sure I'm happy to give you some more color on that <unk> said, you highlighted high remarks. It really is part of our DNA, we spend as much time on the risk management times are you thinking about the acquisition tacky and obviously those two things are paired together.

We're constantly looking at cohort performance and making sure that they are performing in line with where we expected we hold our own feet to the fire and that every day, we're not just looking at Geography's Ryan that we're looking at home segment.

Price segments.

You mean and to understand well to the expectations. We had how are they performing over time and that feeds into our ability to forecast in the initiative to the margin range as we had.

We have a a big team very smart people, who has been in other time on this topic of pricing and investment with our chief investment officer, but the dealership a risk.

And the risk management systems really extend beyond that it's it's it's core to not just the pricing team.

Ross team held accountable for managing the risks are financing thinks about certainly capital markets. We meet regularly on the topic of risk management at the very senior levels.

The at the open door management team and then down from there. So it's really quarter, what we do just part of our daily operating gauge it has to be.

That's helpful. Karen. Thank you Uhm second question so.

On the labor or materials side of things for renovations. So obviously, whether it's whether it's homebuilders, whether it's renovators.

There are constraints and makes sense to call out the open door Scout platform I guess to take it a step further and think a bit big picture as opposed to the near term.

The acquisitions of Proto common skylight should we think of those platforms that can get you guys over the longterm into things like customization upgrades options that a customer could actually.

Come in kind of digitally and start customizing, some some things and become.

In theory and added income stream over time.

Maybe just some commentary on product common skylight and how that how that Tyson. Thank you.

Yeah. That's a good question and a good idea. So we I have known the founders of Crow and skylight for years.

And my perspective, it's rare to find teams that understand the complexity and have the expertise to combined with just isn't technology and that's why we acquired these companies. These teams are passionate about solving similar problems in housing that technology capabilities that can pull forward, a roadmap and they're gonna be working on helping us scale open door.

The second part of the question is do we want to apply these capabilities in the future to help consumers personalized homes in AD revenue streams.

Something that we dream about something that we will put into motion once we feel comfortable with our operational scale and and lastly, more importantly than we can deliver on a fantastic consumer experience in that category I think it's something that we can do in the future.

Thanks, Eric.

And thank you and I'm showing no further questions I would now like to turn the call back over to Arab Blue for closing remarks.

I just wanted to spend a second to think.

Our teammates here at open door.

Put in the hard work when no one is looking to delight of our customers. These results are a byproduct of that hard work and the teammates around the table that spend a night to me.

Thank you.

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

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