Compass, Inc. has recently released its 10-Q report, offering a detailed look into its financial performance and operations for the three and six months ended June 30, 2024, compared to the same periods in 2023. Compass, Inc. is a real estate brokerage company based in New York City, providing a cloud-based platform and integrated suite of software for customer relationship management, marketing, client service, and other functionalities in the real estate industry. The company also offers mobile apps, consumer-grade user interfaces, automated workflows, and insight-rich dashboards for agents, as well as title and escrow/settlement services and Compass Concierge, a program that provides home sellers access to capital for home improvement services.
In the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section of the 10-Q report, Compass, Inc. provided an overview of its business and business model, highlighting its end-to-end platform empowering residential real estate agents. The report also discussed the company's operational highlights for the three months ended June 30, 2024, including the number of agents on its platform, total transactions closed, and gross transaction value.
For the three months ended June 30, 2024, Compass, Inc. reported revenue of $1,700.6 million, representing a 13.8% increase compared to the same period in 2023. The company attributed this growth to an increase in the number of agents on its platform and a higher volume of transactions. The number of principal agents as of June 30, 2024, grew to 16,997, marking a 24.1% increase from the year-ago period.
Commissions and other related expenses for the three months ended June 30, 2024, amounted to $1,405.3 million, reflecting a 14.8% increase compared to the same period in 2023. This expense accounted for 82.6% of the company's revenue during the period.
The report also discussed the impact of macroeconomic conditions on the U.S. residential real estate market and its business, highlighting factors such as the conflict in Ukraine, volatility in the U.S. equity markets, rising inflation, rapidly rising mortgage interest rates, and the Federal Reserve Board's actions, which contributed to a slowdown in the U.S. residential real estate market, impacting Compass, Inc.'s business and financial results.
As a result of these announcements, the company's shares have moved 0.5% on the market, and are now trading at a price of $4.28. If you want to know more, read the company's complete 10-Q report here.
