Compass, Inc. has recently released its 10-Q report, providing a detailed look into the company's financial condition and operations. Compass, Inc. is a real estate brokerage services provider in the United States, offering a cloud-based platform with an integrated suite of software for customer relationship management, marketing, client service, and operations in the real estate industry. The company also provides mobile apps for agents, consumer-grade user interfaces, automated workflows, and insight-rich dashboards, along with title and escrow/settlement services and the Compass Concierge program for home sellers.
In the 10-Q report, Compass, Inc. reported a revenue of $1,494.0 million for the three months ended September 30, 2024, marking an increase of 11.7% 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. Additionally, Compass, Inc. reported a Gross Transaction Value of $57.7 billion for the same period, representing a 13.4% increase from the previous year.
The report also highlighted the company's operational highlights, revealing that Compass, Inc. had over 33,000 agents on its platform as of September 30, 2024, with a subset of 17,542 principal agents. The number of principal agents increased by 20.0% from the previous year, mainly due to the company's recent acquisitions of various residential real estate brokerages. During the same period, the company's agents closed 55,872 total transactions, marking a 16.1% increase compared to the previous year.
Commissions and other related expenses for Compass, Inc. totaled $1,227.7 million for the three months ended September 30, 2024, representing a 12.0% increase from the same period in 2023. Similarly, for the nine months ended September 30, 2024, these expenses amounted to $3,495.3 million, reflecting a 12.3% increase from the previous year.
The 10-Q report also addressed the impact of macroeconomic conditions and recent industry practice changes on the U.S. residential real estate market and Compass, Inc.'s business. The company noted that high interest rates and Federal Reserve Board policies contributed to a slowdown in the U.S. residential real estate market, affecting consumer demand, home affordability, and inventory. Additionally, changes in industry-wide practices, including those related to buyer brokers' compensation offers, were implemented, potentially impacting Compass, Inc.'s business and financial results.
As a result of these announcements, the company's shares have moved 4.3% on the market, and are now trading at a price of $6.62. Check out the company's full 10-Q submission here.
