Quarterly earnings reports are trickling in, giving us an inside look at just how strong of a start brokerages and real estate companies are having in this new year. Compass, always an anticipated report out, shared some wins and a big loss.
According to its earnings report, Compass reported that revenue for the first quarter 2022 was $1.4 billion, an increase of 25 percent year-over-year. Market share increased to 5.8 percent over the past year, up from 4.3 percent and increased to 6.1 percent in Q1, up from 5.6 percent in Q4 of 2021.
Net loss, however, was $188 million. A significant driver of the net loss was non-cash stock based compensation expense of $64 million.
Compass execs expect the first quarter to be its largest net loss quarter of the year, consistent with historical seasonality.
“We delivered $1.4 billion in revenue, a first quarter record for Compass,” said Robert Reffkin, Founder, Chairman, and CEO of Compass. “Compass agents have consistently demonstrated their ability to grow in a variety of market conditions and in the first quarter, they grew market share to 6.1 percent, our second highest market share quarter ever. This is even more impressive since the first quarter is typically our slowest volume quarter. Consistent with historical performance over the past four years, we expect to take even more share through the remainder of 2022.”