Reffkin suggested that Compass is not giving agents the compensation packages it has in the past, stating 62% of agents who recently came to Compass are receiving a less favorable split compared to their brokerage. The company reported an over 90% agent retention, a rebuke to anecdotal tales of agents and agent teams souring on the brokerage. real estate market grew to 5.6% from 4.0% in 2020, suggesting that the brokerage may overtake Realogy as enjoying the largest share of an exceedingly fragmented landscape.Īlso, if Compass’s independent contractor agents are concerned about the company’s financials, they are not showing it with their feet. Compass also reported that its share of the U.S. The desultory bottom line stands in sharp contrast to the brokerage’s glittering sales growth.Ĭompass’s agent count has shot up to 26,000 agents, who produced $254 billion in sales transaction volume in 2021 – a 68% leap from 2020. Not known is how long Compass can continue to hemorrhage money, though the company reports having $618 million cash on hand. Compass began selling shares on the New York Stock Exchange in April, generating $440 million in one-time proceeds from issuing common stock.Ĭompass’s market capitalization has sank 240% since that debut and is now at $3.4 billion, which is still higher than competitor Realogy. Just $149 million – or 38% - of the compensation is a one-time cost from Compass’s initial public offering. While acquisition expenses may be a one-time cost, the vast majority of stock-based compensation is not. By treating stock-based compensation and acquisition expenses as non-operating expenses, Compass can claim to have an adjusted EBITDA of positive $2 million for 2021. It also wipes off $24 million in expenses from acquisitions. Compass’s adjusted EBITDA, meanwhile, effectively wipes off the books the company’s $386 million stock-based compensation to agents and employees. Improved profitability? Reffkin would appear to measure profitability not by net income, but adjusted EBITDA, a measurement that he and Chief Financial Officer Kristen Ankerbrandt referenced frequently on the call.ĮBITDA is earnings before interest, taxes, deductions, and amortization. “I am happy to announce that our strategy of achieving strong revenue growth while improving profitability and investing in our business is working exceptionally well,” Reffkin said on the earnings call. Please ensure to provide as much information as possible with your query to ensure your question reaches the team best placed to support.The net income loss was not discussed by CEO and company co-founder Robert Reffkin. Still have a question? We can help! Contact us through one of the options at the bottom of this page. These users will receive a different email containing directions on how to sign in. Please Note: Users who belong to an institution that requires authentication through Federated Access may not reset their Evolve password. If no email is received within ten minutes, please check your junk/spam folder and ensure the information you are providing is correct. The Secure Link will expire within 1 hour. Enter your email address or username and click ‘Submit’.Īfter completing these steps a secure link to update your password will be sent to the email address associated with your account.Click ‘Sign in’ in the upper right corner, then click ‘Forgot Username or Password?’.You will need to reset your password if you:įollow these steps to reset your password:
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |