Dod Fraser: Yes, I mean, I think I just started with level setting on where we are from a balancing perspective. So as you can see from our financials, we’ve got over $ billion in cash, $1.3 billion total capital, $8 billion in debt capacity. I think we feel very good about executing our business plan, again, with our current capital base. Really, the ATM for us gives us the ability to opportunistically raise equity over the next three years. I think it’s really important. It’s a three year program. And because of how they’re structured, we do that at a lower fee and at market. So there’s no discount to market. So we really do it as a tool and toolkit for us as a business to opportunistically fund future growth. And this is one of many ways we could implement that, but we wanted to get it out there.
Because you need, these programs are very common in capital intensive businesses like the REIT sector or biotech. But there is actually a growing list of technology companies putting these in place, especially post -COVID. I think people sort of realize how useful they can be. Carvana has one, Zillow has one, Tesla has one. And so to Christy’s point earlier, we were opportunistic last year in repurchasing the convertible notes, creating over $200 million in equity. We do not plan to utilize the ATM immediately. We’ll be patient with this. And we don’t plan to use it this quarter.
Operator: Our next question comes from the line of f Nick Jones with Citizens JMP.
Nick Jones: Great. Thanks for taking the questions. I guess maybe one on, path to positive adjusted EBITDA then I guess the best of adjusting net income. It’s been a nice cadence over the last few quarters. As we kind of think about shaping the rest of the year, is it right to kind of think of 4Q maybe being the weaker quarter throughout the year, but maybe not as weak as Q1? And then are we kind of on a linear path from here? Are you confident that we can kind of get to positive adjusted EBITDA, I guess maybe even this year or next year?
Carrie Wheeler: Hey, Nick, it’s Carrie, I’ll take that. What I would say at a high level is what we are indicating is that we are on this path of increasing acquisitions year-on-year for every quarter for 2024. And we feel good about delivering within our 5% to 7% contribution margin target. And all of that goes together to substantially reduce the losses we’ve seen in the system. So without giving you specifics or guiding Q to kind of where EBITDA is going to fall in subsequent quarters, I’d just say that we’re feeling good about the path we’re on to substantially improve kind of the bottom line of the business.
Nick Jones: Got it. Helpful. And then maybe a higher level question, Carrie, you mentioned, with the NAR settlement, and I think there’s some headlines that the DOJ might be, taking a look or a closer look at the NAR. I think you said in your comments that folks might bypass the MLS. At a high level, the NAR and the MLS, while it was kind of the original marketplace, whatever, 100 plus years ago, there are complaints that they create this sense of urgency that potentially damages the selling and buying experience. Do you think this is the start of kind of their dominance in the ecosystem to potentially starting to wane and is that kind of a long-term secular challenge for Opendoor?
Carrie Wheeler: Yes, it’s a good question and I just want to clarify my comments. Like we think this is net positive, first of all, for consumers. I mean, it’s good for consumers, that’s good for Opendoor. I mean, this is all about giving more choice and transparency and agency in the hand of home buyers in terms of how they want to engage with an agent. The reason I think we’re so set up well in this context is because we have this direct platform. I wasn’t talking about homes going off the MLS. There’s been some talk about that. We think the MLS is a great thing because it’s democratic. Everyone can understand kind of what’s available for sale, but it really says to certain home buyers or sellers, I may decide that I don’t need an agent in this transaction or I can dial in the amount of advice I need to get.
The only place you can sell your home directly today and the only place you can buy a home directly with an e-commerce like transaction is Opendoor. We have the only direct platform in the industry. So no matter how the real estate ecosystem evolves, we’re really set up well to take advantage of that. And there’s lots of talk about touring and having to get a buyer representation agreement beforehand. You can still tour all our homes. We want to give the consumer total agency to do what is right for them in whatever way they want to do it, including if they want an agent to come with them. So my comments were not about off the MLS. We’re supportive of the MLS, but really about enabling consumers to go direct.
Operator: Our next question comes from the line of Jason Helfstein with Oppenheimer.
Unidentified Analyst : Hey, thanks. This is Chad on for Jason. So homes purchased were down slightly sequentially, but there was a nice increase in the sequential homes under contract. So just anything like what’s going on there? Is that just normal seasonality? Or is there something that’s just giving you more confidence to lean back into buying? And then I have another one.
Carrie Wheeler: Yes, I mean, I said the market is slowed enough. And also, we offer the customer a great deal of choice about when they close their homes. So I focus less on like the quarter-to-quarter because a contract in one quarter may close, may slip and close another quarter. This is about, I think the focus should be on like the year-over-year growth for proposing or for showing. And to your point, Chad, like we had really nice end of the quarter with like really nice number of contracts in the Q of 24% versus Q4. So just a nice momentum going through the quarter and that really feeds into that contract, momentum really feeds into what is a strong guide for over 4,500 acquisitions in Q2.
Unidentified Analyst : Okay, thanks.
Carrie Wheeler: I guess what I’m saying is I wouldn’t make too much of the down slightly versus Q4.
Unidentified Analyst : Yes, fair enough. And then just on the eXp partnership, just anything else you can share there and how meaningful could that be, kind of over the long run?
