The
Softbank-backed real estate brokerage went public in April in a splashy debut, taking advantage of a boom in the residential real estate market during the pandemic.
Image source: Getty Images.
The company is now the country's second-largest real estate brokerage, and fetched a valuation near $10 billion when it began trading, more than
Redfin and more than four times higher than
Realogy, the country's largest brokerage, which owns brands like Century 21, Coldwell Banker, and Corcoran. That sparked some concerns that it was overpriced, though it's now valued below $6 billion.
In its first earnings report as a public company, Compass reported 80% revenue growth to $1.1 billion as it lapped the initial pause in home sales during the early stages of the pandemic. That figure topped estimates at $968.7 million. Meanwhile, gross transaction value rose 75% to $43.8 billion, and the company's market share improved from 3.8% to 5.2%. However, Compass continued to lose money, posting an adjusted EBITDA loss of $31 million, though that was an improvement from a loss of $102 million. On the bottom line, it finished the quarter with an adjusted net loss of $64 million, compared to a loss of $69 million a year ago.