What Is the Company Compass

Compass promoted its «20/20 by 2020» plan, which would give it 20% market share in the top 20 markets by 2020. However, in January 2019, the company announced plans to cease expansion after encountering unspecified challenges. CEO Robert Reffkin acknowledged that the slowdown in equity markets contributed to the decision not to enter new markets in 2019. [56] In 2021, the Company reported a net loss of $494 million, resulting in a negative net margin of (7.7%). The company recorded a negative net margin of (7.3%) in 2020 and 16.3% in 2019. Compass, Inc. is not yet profitable. Compass was founded in 2012 by entrepreneurs Ori Allon, Robert Reffkin and Avi Dorfman as «Urban Compass». [21] Allon was Director of Engineering at Twitter and previously founded companies that were acquired by Twitter and Google. [22] Reffkin was previously chief of staff to the chairman of Goldman Sachs[13] and worked in the White House. [23] [24] Avi Dorfman had previously worked at McKinsey & Company, Lehman Brothers and founded a start-up.

The company has raised $8 million in seed funding from Founders Fund, Thrive Capital, Goldman Sachs, as well as several individual investors, including Kenneth Chenault, CEO of American Express, and Cyrus Massoumi, CEO of ZocDoc. [24] [22] The original business model employed full-time brokers with whom users of the platform could book appointments online after searching for offers on the company`s desktop or mobile app. [25] The company made its public debut at an event in May 2013 where then-New York City Mayor Michael Bloomberg helped celebrate the launch. [26] [27] Initially, the business focused solely on leasing. [27] What do you think? Does Compass have what it takes to be a profitable business during the company`s years? Will they continue to increase their market share in the United States? Since the company`s inception, Compass agents have represented buyers or sellers in more than 500,000 transactions. Compass generates almost all of the brokerage commission revenue generated by helping clients buy and sell homes. The company states that it derives a small amount of income from additional real estate services such as the title and escrow account. It plans to increase its revenues from services and add new ones. Compass` sales and marketing expenses were $510 million in 2021, up 25% from 2020. This represented approximately 7.9% of the company`s total expenses.

The Company reports transactions in its annual reports by year, which are presented in this chart. In September 2015, Compass raised a $50 million Series C funding round at a stated valuation of $800 million. The investment was led by Institutional Venture Partners. [37] The company has also opened offices in Brooklyn, South Florida, Boston and the Hamptons. [38] [39] [40] [41] [37] In August 2016, Compass raised a $75 million Series D funding round, led by Wellington Management, bringing its valuation to over $1 billion. [42] [43] The company also launched a new mobile app that provides real-time data on the real estate market. [44] Earlier this year, the company expanded into Aspen with the acquisition of Shane Aspen Real Estate[45] and Los Angeles to Aspen. [46] Reports also cited Compass` expansion into Santa Barbara[42] and San Francisco,[47] as well as several other smaller submarkets in its other major metropolitan areas.

[48] Approximately 82.7% of Compass` total expenses consist of commissions and agent fees, which will be $5.31 billion in 2021, an increase of 74% over 2020. About $5.2 billion of the total $5.3 billion in expenses in this category were agent commissions, the company`s largest and most critical expenses. In 2021, brokerage commissions accounted for 80.7% of Compass` total revenue. The company claims to be the largest independent real estate brokerage in terms of gross transaction volume, the combined dollar amount of properties closed by its agents. Compass` total expenses were $6.9 billion in 2021, an increase of 2.5 times in 2019. The Company`s expenses include commissions and other related expenses, sales and marketing, operations and support, research and development, and general and administrative expenses. The company`s initial growth strategy was to acquire traditional brokerages. In traditional brokerages, agents are responsible for marketing and procurement operations. From 2019 to 2021, Compass increased its total revenue by 2.7 times. The increase in revenues is the result of additional agents joining the Company in 2020 and 2021 and a higher number of new and existing agent transactions. Of these agents, about 48% use the company`s software platform and CRM.

This subset of agents is called «prime agents.» Here`s a look at what you`ll find on this page if we take a closer look at Compass` business activities: The company calculates its market share by dividing its gross transaction value (value of transactions made by distributors) by twice (to account for the sale and purchase side) the total transaction value of U.S. home sales, as reported by the National Association of Realtors (NAR). The Compass Coming Soon program markets real estate on compass.com. [64] In September 2013, the Company raised a Series A financing round of $20 million at a reported valuation of $150 million. [28] Investors included Advance Publications, CEO Marc Benioff Salesforce.com and .406 Ventures. [28] [29] «Although Compass operates like a traditional broker, the company`s promise is to use technology to reduce the time and friction involved in buying and selling a house or apartment. Last month, Compass launched an app designed to replace outdated quarterly market reports with more dynamic information. Compass, Inc. is an American licensed real estate agent that uses the Internet as a marketing medium using real estate technology. Compass employs more than 25,000 agents who earn a percentage of the sale price and give a percentage of each commission to Compass, in keeping with the traditional real estate brokerage business model. [5] [6] Compass specializes in high-margin luxury properties in high-end markets. Founded in 2012, the company is headquartered in New York City.

[2] The Company provides software to real estate agents. [7] Compass is the first company to develop a proprietary mobile app for real estate agents. [8] Compass is a full-service real estate agent founded in 2012 as Urban Compass. The company then shortened its name and went public in 2021. Here`s Compass` gross trading volume broken down by year: Compass went public on April 1, 2021, with a valuation of $8.22 billion. [20] The Marketing Center is a digital design studio that allows Compass agents to create personalized, personalized, and localized marketing materials. [65] Sales and marketing expenses broken down by year are as follows: The Compass Concierge program helps sell a home by covering the cost of DIY enthusiasts to prepare the home for the market. [61] In November 2019, Compass announced plans to open its India Development Centre in Hyderabad.

[57] Here is an overview of how Compass has increased its revenues over the past three years.