Keep pulling the thread on Keith Rabois.
Opendoor's high fixed-cost structure made it vulnerable to the Federal Reserve's rapid series of six interest rate hikes in 2022.
At its peak performance after going public, Opendoor was generating between $500 million and $1 billion of free cash flow.
Opendoor is significantly overstaffed with 1,400 employees and should have a maximum of 200 to 300.
Airbnb was saved from failure during the COVID-19 pandemic by a structured note financing deal with Silver Lake.
Opendoor plans to implement AI to substitute for human labor, which is now technologically easy and will be the biggest unlock for reducing fixed costs.
In the U.S. residential real estate market, 20% of accepted offers on homes do not ultimately close.
Opendoor's market capitalization reached a peak of $20 billion for at least a day or two after going public.
The success of PayPal was primarily due to its ability to build and sustain an unusual density of talent.
The U.S. residential real estate market is a $289 trillion asset class.
Opendoor has not significantly innovated on its core product for five or more years.
As COO of Shopify, Kazuhiko 'Kaz' Nejatian reduced the company's G&A expenses as a fraction of revenue from 14% to 4%.
Shopify is on target to reduce its G&A as a fraction of revenue to 1% next year.