Earnings statements for the third quarter of the year are rolling out and we’re diving in to examine the market slowdown’s impact on revenue and growth for some of the industries biggest companies.
Compass managed to add a boatload of new agents amid shrinking revenue and rising losses. According to its earnings report, the brokerage saw total revenue of $1.49 billion, down 14 percent compared to the third quarter of last year.
Net Loss was $154 million, compared to a loss of $100 million in last year. The net loss includes non-cash stock-based compensation expenses of $50 million, depreciation and amortization of $21 million, restructuring charges due to the cost saving actions of $29 million, and litigation charges of $11 million.
“Against a backdrop of significant challenges for the housing industry, Compass continued to make progress in a number of important areas during the third quarter,” said Robert Reffkin, Chief Executive Officer of Compass.”We continued to successfully roll out our enhanced national end-to-end workflow platform which we believe allows our agents to be the most productive in the industry and deliver their buyers and sellers a best-in-class experience. Over the longer term, I believe our platform offers important differentiation in the marketplace and it is a conduit to drive incremental revenue lift and cost efficiency.”
Still, Compass added some 335 agents to the company—totaling 13,314, an increase of 15 percent.