It’s earnings report season for the real estate industry—and we’re keeping you up to date on all the latest numbers!
Late yesterday, Compass released both its quarterly and annual numbers, along with a whole lot of context from CEO Robert Refkin. In Q4 of 2022, Compass saw revenue decrease by 31 percent year-over-year to $1.11 billion. Transactions declined 25 percent, which was attributable to lower industry wide transactions.
Net loss stood at $158 million, an improvement from a net loss of $175 million in a year earlier.
“2022 was a difficult year for the residential real estate market and Compass. The unexpected and rapid 18 percent decline in industry-wide transactions resulted in one of the worst years for the real estate market and a decline at the same rate as the 2007-2008 housing crisis,” said Robert Reffkin, Founder and Chief Executive Officer of Compass. “Despite industry challenges, Compass increased market share year-over-year with transactions being down 6 percent compared to the industry decline of 18 percent year-over-year. Moreover, our principal agent retention for Q4 2022 was 98 percent which is the same as Q3 2022 and Q4 2021. We attribute a significant amount of our agents’ productivity to our differentiated technology platform, which is the only proprietary end-to-end technology platform for agents in the country.”
For 2022 as a whole, Compass brought in $6 billion in revenue, down 6 percent year-over-year. Net loss, which includes non-cash stock-based compensation expenses, restructuring charges and litigation charges, was $602 million compared to $494 million in 2021.