Compass, Inc.

Last updated

Compass, Inc.
FormerlyUrban Compass, Inc. (2012–2021)
Company type Public
NYSE:  COMP
Industry Real estate
FoundedOctober 4, 2012;12 years ago (2012-10-04)
FounderOri Allon
Robert Reffkin
Avi Dorfman [1]
Headquarters
New York, New York
,
United States
Area served
 United States
Key people
Services Broker
RevenueDecrease2.svg US$4.89 billion (2023)
Increase Negative.svg US$−315 million (2023)
Increase Negative.svg US$−320 million (2023)
Total assets Decrease2.svg US$1.16 billion (2023)
Total equity Decrease2.svg US$432 million (2023)
Owner SoftBank Vision Fund (30.1%)
Robert Reffkin (2.1%)
Number of employees
2,549 (2023)
Website compass.com
Footnotes /references
[2] [3]

Compass, Inc. operates a residential real estate brokerage in the United States. [4] [5] It has approximately 29,000 agents, who are generally independent contractors, on its platform. [2]

Contents

In 2023, the company completed 178,848 transactions for a gross dollar value of $186.1 billion. It had a market share in the U.S. of 4.5%. [2] SoftBank Vision Fund owns 30.1% of the company. [3]

History

Compass was founded by Ori Allon, Robert Reffkin, and Avi Dorfman as Urban Compass, Inc. in New York City in October 2012. [2] [6] Allon was a Director of Engineering at Twitter, and previously founded companies acquired by Twitter and Google. [7] Reffkin had previously served as the chief of staff to the president of Goldman Sachs [8] and worked in the White House. [9] [10] Avi Dorfman had previously worked at McKinsey & Company and Lehman Brothers, and founded a startup.

The company raised $8 million of seed funding. [10] [7] The initial business model employed full-time, salaried brokers [11] and was focused only on rentals. [12] The service was launched in May 2013. [13] [12]

In January 2014, Compass announced it would change its overall business model by contracting independent real estate agents, receiving a portion of the broker commission. [14]

In July 2014, Compass signed a lease on 25,000 square feet of office space at 90 5th Avenue, which became its global headquarters. [15]

In June 2014, Leonard Steinberg, previously with Douglas Elliman, was named president of the company. [16] [17] At that time, the company had 125 agents and 70 staff members. [18]

In July 2016, the company launched a mobile app. [19]

The company expanded into several markets, both organically and via acquisitions. By January 2017, the company operated in 9 U.S. markets: New York, Boston, San Francisco, Miami, Washington, the Hamptons, Los Angeles, Santa Barbara, and Aspen. [20] At that time, it had 1,300 agents. [21]

On April 1, 2021, the company became a public company via an initial public offering. [22]

In November 2021, Compass settled with Avi Dorfman, ending an 8-year dispute, and acknowledging him as a member of the founding team. [6] The company took a $21.3 million charge in connection with the matter. [23]

The company announced several rounds of layoffs in 2022 and 2023. [24] [25]

Acquisitions

DateAcquiredDescriptionSource
November 2014Lindsay Reishman Real EstateWashington, D.C.–based broker [26] [27]
April 2016Shane Aspen Real EstateAspen-based broker [28]
January 2017Bushari Real EstateBoston-based brokerage [29]
April 2018ConlonChicago-based brokerage [30] [31]
April 2018Northwest Group Real EstateSeattle-based brokerage [32] [33]
June 2018The Hudson CompanyChicago-based brokerage [34] [35]
July 2018Paragon Real Estate GroupSan Francisco–based brokerage [36] [37]
August 2018Avenue PropertiesSeattle-based brokerage [38] [39]
August 2018Pacific Union InternationalSan Francisco–based brokerage [40] [41]
November 2018Wydler BrothersWashington, D.C.–based brokerage [42] [43]
February 2019ContactuallyCRM provider; shut down in March 2022 [44]
March 2019 Alain Pinel Realtors San Francisco–based brokerage [45] [46]
April 2019Stribling & AssociatesNew York–based brokerage [47] [48]
November 2019DetecticaAI Startup [49] [50] [51]
October 2020ModusHome closing startup, shut down in June 2022 [52] [53]
February 2021KVS TitleTitle insurance and settlement services provider [54] [55]
April 2021Glide LabsTransaction management platform [56] [57]
September 2021First Alliance TitleTitle insurance and settlement services provider [58] [59]
September 2021CommonGround AbstractTitle insurance and settlement services provider [60] [61]
May 2022Consumer's Title CompanyTitle insurance and settlement services provider [62] [63]
April 2023Launch Real EstateArizona-based brokerage [64] [65]
September 2023Deasy Penner Podley/DPPPasadena-based luxury boutique brokerage [66]
September 2023Realty Austin and Realty San AntonioTexas-based brokerages [67] [68] [69]
January 2024Attorneys Key TitleFort Lauderdale–based title company [70]
April 2024Latter & BlumBroker operating in Louisiana and Mississippi [71] [72]
May 2024Parks Real EstateBroker operating in Tennessee [73]

Awards

Compass was named Mid-Sized Business of the Year by the Manhattan Chamber of Commerce in 2015. [8]

In 2018, Compass was named to Crain's Fast 50. [74]

In January 2019, it was ranked 14th on Glassdoor's Best Places to Work. [75]

In April 2019, Compass received a Webby Award for Best Real Estate Website. [76]

In August 2019, it was named one of the Best Workplaces for Innovators by Fast Company . [77]

Compass won the 2020 Webby Award in the real estate web category. [78]

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References

  1. ↑ MCPHERSON, MARIAN (September 16, 2021). "Avi Dorfman's 8-year battle with Compass is finally over". Bradley Inman .
  2. 1 2 3 4 "Compass, Inc. 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 28, 2024.
  3. 1 2 "SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION". U.S. Securities and Exchange Commission.
  4. ↑ Delprete, Mike (May 1, 2019). "How has Compass grown so fast? A look at the numbers". Bradley Inman .
  5. ↑ Bourque, Andre (September 28, 2016). "25 Inspiring Entrepreneurs Under 40 Who Are Creating the Next Big Thing". Entrepreneur .
  6. 1 2 Mascarenhas, Natasha (November 16, 2021). "Avi Dorfman's legal battle to be named founding member of Compass has ended in a settlement". TechCrunch .
  7. 1 2 Popper, Ben (November 27, 2012). "After cashing out to Google and Twitter, Ori Allon is going all in with Urban Compass". The Verge .
  8. 1 2 TITLOW, JOHN PAUL (June 18, 2015). "Why This Real Estate App Is Making New York Brokers Nervous". Fast Company .
  9. ↑ ROBERTS, DANIEL (October 13, 2014). "Modernizing the New York apartment hunt" . Fortune .
  10. 1 2 Lunden, Ingrid (December 16, 2012). "With $8M in Seed Funding From Founders Fund, Goldman Sachs; Urban Compass Wants To Build A Hyper-Local, Human-Powered Database". TechCrunch .
  11. ↑ Popper, Ben (May 7, 2013). "Urban Compass: can a startup finally fix the nightmare of renting an apartment in NYC?". The Verge .
  12. 1 2 SHEFTELL, JASON (May 7, 2013). "High-tech start-up Urban Compass hopes to change how we rent and live in new york city" . New York Daily News .
  13. ↑ Lunden, Ingrid (May 7, 2013). "Urban Compass Comes Out Of Stealth with a Hyperlocal Social Network, And A Disruptive Rental Portal That Will Serve As A Magnet". TechCrunch .
  14. ↑ Wiggin, Teke (January 15, 2014). "The big pivot: why Urban Compass has gone traditional" . Bradley Inman .
  15. ↑ DELAPORTE, GUS (July 22, 2014). "Urban Compass Signs Lease at RFR's 90 Fifth Avenue". Observer Media .
  16. ↑ Samtani, Hiten; Kussin, Zachary (June 2, 2014). "Leonard Steinberg exits Douglas Elliman for Urban Compass" . The Real Deal .
  17. ↑ Taufen, Amber (June 24, 2016). "The Real Trends/WSJ Thousand list for 2016 has been unveiled" . Bradley Inman .
  18. ↑ Hagey, Paul (November 15, 2014). "Urban Compass launches nationwide expansion push with Washington, DC, acquisition". Bradley Inman .
  19. ↑ McAlone, Nathan (July 20, 2016). "This $800 million startup just launched an app to make buying a home easier". Business Insider .
  20. ↑ Lunden, Ingrid (January 18, 2017). "Maelle Gavet is the new COO at real estate startup Compass". TechCrunch .
  21. ↑ KALFUS, MARILYN (February 5, 2017). "Luxury real estate startup Compass expands to Newport Beach, scores top agent Rob Giem" . Orange County Register .
  22. ↑ Podder, Sohini (April 1, 2021). "SoftBank-backed Compass valued at $8.22 bln in NYSE debut". Reuters .
  23. ↑ "EX-99.1". U.S. Securities and Exchange Commission.
  24. ↑ Turner, Matt; Geiger, Daniel; Parker Erb, Jordan; Bullock, Hallam (December 18, 2022). "Compass is reeling from a horrible year, from financial losses to tech troubles to mass layoffs". Business Insider .
  25. ↑ C, Priyamvada (January 5, 2023). "Real estate broker Compass to cut more jobs to deal with housing downturn". Reuters .
  26. ↑ Haynes, Dion (November 13, 2014). "New York realty firm to open office in D.C." The Washington Post .
  27. ↑ "Urban Compass Takes First Milestone Step in National Expansion by Acquiring Lindsay Reishman Real Estate in Washington, D.C. Market" (Press release). PR Newswire. November 13, 2014.
  28. ↑ Glendenning, Lauren (April 1, 2016). "Tech company Compass acquires Shane Aspen Real Estate". The Aspen Times .
  29. ↑ Sims, Stephanie; Terchek, Natalie (January 19, 2018). "Compass acquires Bushari Real Estate". Boston Agent Magazine.
  30. ↑ Rodkin, Dennis (April 25, 2018). "Compass acquires Chicago brokerage Conlon Christie's". Crain's Chicago Business .
  31. ↑ SOUTH, GILL (April 25, 2018). "Compass acquires Chicago's Conlon Real Estate" . Bradley Inman .
  32. ↑ Solomont, E.B.; Blake, Matthew (March 2, 2020). "Compass faces a reckoning" . The Real Deal .
  33. ↑ Stiles, Marc (April 25, 2018). "$2.2 billion real estate tech company enters the Puget Sound region market". American City Business Journals .
  34. ↑ Lynch, Dennis (June 25, 2018). "Compass buys Hudson Company, continuing Chicago expansion effort" . The Real Deal .
  35. ↑ Kearns, Patrick (June 25, 2018). "Compass acquires Chicago indie brokerage The Hudson Company" . Bradley Inman .
  36. ↑ "Paragon Real Estate of SF acquired by Compass to form city's largest brokerage". San Francisco Chronicle . July 10, 2018.
  37. ↑ Kearns, Patrick (July 9, 2018). "Compass acquires Paragon, seeks San Francisco market supremacy" . Bradley Inman .
  38. ↑ Stiles, Marc (August 14, 2018). "Avenue Properties joins real estate tech company Compass" . American City Business Journals .
  39. ↑ Kearns, Patrick (August 14, 2018). "Compass takes over Avenue Properties' Seattle offices" . Bradley Inman .
  40. ↑ "Compass buying Pacific Union – its second SF real estate acquisition in two months". San Francisco Chronicle . August 22, 2018.
  41. ↑ Norman, Hannah (August 29, 2018). "Compass acquires Pacific Union" . American City Business Journals .
  42. ↑ "Compass acquires DC indie brokerage" . The Real Deal . November 13, 2018.
  43. ↑ Kearns, Patrick (November 12, 2018). "Compass Acquires D.C. Indie Wydler Brothers Real Estate" . Bradley Inman .
  44. ↑ Lunden, Ingrid (February 27, 2019). "Compass acquires Contactually, a CRM provider to the real estate industry". TechCrunch .
  45. ↑ Pender, Kathleen (March 5, 2019). "Compass buys Alain Pinel to create Bay Area real estate behemoth". San Francisco Chronicle .
  46. ↑ Kelliher, Fiona (March 4, 2019). "Alain Pinel turned down Compass' acquisition offer last year. Now, it's changed its mind". American City Business Journals .
  47. ↑ Solomont, E.B. (April 3, 2019). "Compass strikes deal to buy Stribling" . The Real Deal .
  48. ↑ Kearns, Patrick (April 3, 2019). "Compass to acquire Stribling & Associates" . Bradley Inman .
  49. ↑ Council, Jared (November 19, 2019). "Real-Estate Brokerage Compass Buys AI Startup Detectica" . The Wall Street Journal . ISSN   0099-9660.
  50. ↑ "Compass Acquires Detectica, Deepening Artificial Intelligence and Machine Learning Capabilities Across The Compass Real Estate Platform" (Press release). PR Newswire. November 19, 2019.
  51. ↑ Rosacia, Pam (November 19, 2019). "Home trading platform Compass buys AI company Detectica". S&P Global .
  52. ↑ SOPER, TAYLOR (October 5, 2020). "Real estate brokerage Compass to acquire Seattle-based home closing startup Modus". GeekWire .
  53. ↑ SOPER, TAYLOR (June 16, 2022). "Real estate giant Compass shuts down Modus, the Seattle-based title business it acquired in 2020". GeekWire .
  54. ↑ "Compass Acquires KVS Title" (Press release). PR Newswire. February 25, 2021.
  55. ↑ Kearns, Patrick (February 25, 2021). "Compass moves deeper into closing services with KVS Title acquisition" . Bradley Inman .
  56. ↑ James, Cordilia (April 26, 2021). "Compass buys Glide, RE transaction management platform" . The Real Deal .
  57. ↑ "Compass Agrees to Acquire Real Estate Transaction-Management Platform Glide" (Press release). PR Newswire. April 26, 2021.
  58. ↑ "Compass Agrees to Acquire First Alliance Title" (Press release). PR Newswire. September 22, 2021.
  59. ↑ DALRYMPLE II, JIM (September 22, 2021). "Compass scoops up yet another title company" . Bradley Inman .
  60. ↑ "Compass Agrees to Acquire CommonGround Abstract" (Press release). PR Newswire. September 28, 2021.
  61. ↑ DALRYMPLE II, JIM (September 28, 2021). "Compass acquiring third title company in less than a month" . Bradley Inman .
  62. ↑ "Compass Agrees to Acquire Consumer's Title Company of California" (Press release). PR Newswire. May 3, 2022.
  63. ↑ VERDE, BEN (May 3, 2022). "Compass acquires Consumer's Title Company of California" . Bradley Inman .
  64. ↑ Gonzales, Angela (April 6, 2023). "Scottsdale's Launch Real Estate joins national giant, introducing it to metro Phoenix" . American City Business Journals .
  65. ↑ DALRYMPLE II, JIM (April 6, 2023). "Compass scoops up 300-agent indie brokerage in Arizona" . Bradley Inman .
  66. ↑ Asch, Andrew (September 19, 2023). "Compass acquires Pasadena firm DPP" . The Real Deal .
  67. ↑ Baird, Cody (September 27, 2023). "Compass buys Realty Austin, Realty San Antonio" . American City Business Journals .
  68. ↑ MCPHERSON, MARIAN (September 27, 2023). "Compass acquires No. 1 indie brokerage in Central Texas" . Bradley Inman .
  69. ↑ Lovinger, Joe (September 27, 2023). "Compass Acquires Realty Austin, Realty San Antonio" . The Real Deal .
  70. ↑ Hinsche, Kate (January 16, 2024). "Compass to acquire Fort Lauderdale-based Attorneys Key Title" . The Real Deal .
  71. ↑ RIEGEL, STEPHANIE; DAIGLE, ADAM (April 3, 2024). "Louisiana's dominating Latter & Blum sells to country's largest brokerage". The Times-Picayune/The New Orleans Advocate .
  72. ↑ DALRYMPLE II, JIM (April 3, 2024). "Compass acquires 3,100-agent Gulf Coast giant Latter & Blum" . Bradley Inman .
  73. ↑ "Compass Strengthens Footprint in Southeastern U.S., Welcoming the Top Brokerage in Tennessee". PR Newswire (Press release). May 13, 2024.
  74. ↑ ANUTA, JOE (October 14, 2018). "Compass". Crain Communications .
  75. ↑ Renzulli, Kerri Anne (January 8, 2019). "WORK: The 15 best tech companies to work for in 2019, according to Glassdoor". CNBC .
  76. ↑ Liao, Shannon (April 23, 2019). "Here are all the winners of the 2019 Webby Awards". The Verge .
  77. ↑ "The 50 best workplaces for innovators" . Fast Company . August 5, 2019.
  78. ↑ Kastrenakes, Jacob (May 20, 2020). "Here are all the winners of the 2020 Webby Awards". The Verge .
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