drew

Opendoor gross margins include the net amount spent on renovations, so would need to include that from Zillow for a comparable gross figure. Can also compare contribution figures.

It's not a perfect comparison but it's pretty much a wash. Opendoor includes high gross margin ancillary revenue (title, escrow) in that number and Zillow doesn't.

this what i didn't understand. The numbers didn't look that different so not sure what i'm missing?

They aren’t different. Rabois and the $OPEN crowd can blurt out “BETTER ALGOS!!!” all day, there is no structural advantage for Opendoor. If anything Zillow would have had an advantage long term because they get way more leads through their platform than anyone else

Why do you think we profit and they don’t?

I think we have very different definitions of profit. My definition has a lot do to with GAAP and cash flows and less with EBITDA adjustments

why you avoid the question? Hes asking why open has more transition and better margin than zillow?

No, he is saying they are profitable which is not true