Compass, Inc.

Last updated

Compass, Inc.
Company type Public
NYSE:  COMP
Industry Real estate
FoundedOctober 4, 2012;11 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
  • Ori Allon (Executive Chairman)
  • Robert Reffkin (CEO)
  • Kalani Reelitz (CFO)
Services Broker
RevenueDecrease2.svg US$6.018 billion (2022)
Decrease2.svg US$−589 million (2022)
Decrease2.svg US$−601 million (2022)
Total assets Decrease2.svg US$1.533 billion (2022)
Total equity Increase2.svg US$520 million (2022)
Owner SoftBank Vision Fund (30.1%)
Robert Reffkin (2.1%)
Number of employees
3,191 (2022)
Website compass.com
Footnotes /references
[2] [3]

Compass, Inc. operates a residential real estate brokerage in the United States. [4] [5] It has approximately 28,000 agents, who are generally independent contractors, on its platform. [2]

Contents

In 2022, the company completed 211,538 transactions for a gross dollar value of $230.3 billion. It had a market share in the U.S. of 4.5%. [2] SoftBank Vision Fund owns 30.1% of the company. [3]

For its customers who sell their homes, in addition to regular brokerage services, the company provides access to loans to make home improvements [6] and access to bridge loans to fund down payments on new homes before the customers' previous home is sold. [7] [8]

History

Compass was founded by Ori Allon, Robert Reffkin, and Avi Dorfman as Urban Compass, Inc. in New York City in October 2012. [2] [9] Allon was a Director of Engineering at Twitter, and previously founded companies acquired by Twitter and Google. [10] Reffkin had previously served as the chief of staff to the president of Goldman Sachs [11] and worked in the White House. [12] [13] Avi Dorfman had previously worked at McKinsey & Company and Lehman Brothers, and founded a startup.

The company raised $8 million of seed funding. [13] [10] The initial business model employed full-time, salaried brokers [14] and was focused only on rentals. [15] The service was launched in May 2013. [16] [15]

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. [17]

In July 2014, Compass signed a lease on 25,000 square feet of office space at 90 5th Avenue, which became its global headquarters. [18]

In June 2014, Leonard Steinberg, previously with Douglas Elliman, was named president of the company. [19] [20] At that time, the company had 125 agents and 70 staff members. [21]

In July 2016, the company launched a mobile app. [22]

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. [23] At that time, it had 1,300 agents. [24]

On April 1, 2021, the company became a public company via an initial public offering. [25]

In November 2021, Compass formally settled with Avi Dorfman, ending an 8-year dispute, and acknowledging him as a member of the founding team. [9] The company took a $21.3 million charge in connection with the matter. [26]

The company announced several rounds of layoffs in 2022 and 2023. [27] [28]

Acquisitions

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

Awards

Compass was named Mid-Sized Business of the Year by the Manhattan Chamber of Commerce in 2015. [11]

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 to Fast Company's Best Workplaces for Innovators. [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. 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. March 1, 2023.
  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. ↑ Zafar, Nina (June 24, 2019). "Real estate agencies put the spotlight on staging" . The Washington Post .
  7. ↑ Olick, Diana (October 21, 2019). "Brokerage Compass starts offering an easier, less expensive way to get a bridge loan". CNBC .
  8. ↑ Kearns, Patrick (October 21, 2019). "Compass launches bridge loan program". Bradley Inman .
  9. 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 .
  10. 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 .
  11. 1 2 TITLOW, JOHN PAUL (June 18, 2015). "Why This Real Estate App Is Making New York Brokers Nervous". Fast Company .
  12. ↑ ROBERTS, DANIEL (October 13, 2014). "Modernizing the New York apartment hunt" . Fortune .
  13. 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 .
  14. ↑ Popper, Ben (May 7, 2013). "Urban Compass: can a startup finally fix the nightmare of renting an apartment in NYC?". The Verge .
  15. 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 .
  16. ↑ 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 .
  17. ↑ Wiggin, Teke (January 15, 2014). "The big pivot: why Urban Compass has gone traditional" . Bradley Inman .
  18. ↑ DELAPORTE, GUS (July 22, 2014). "Urban Compass Signs Lease at RFR's 90 Fifth Avenue". Observer Media .
  19. ↑ Samtani, Hiten; Kussin, Zachary (June 2, 2014). "Leonard Steinberg exits Douglas Elliman for Urban Compass" . The Real Deal .
  20. ↑ Taufen, Amber (June 24, 2016). "The Real Trends/WSJ Thousand list for 2016 has been unveiled" . Bradley Inman .
  21. ↑ Hagey, Paul (November 15, 2014). "Urban Compass launches nationwide expansion push with Washington, DC, acquisition". Bradley Inman .
  22. ↑ McAlone, Nathan (July 20, 2016). "This $800 million startup just launched an app to make buying a home easier". Business Insider .
  23. ↑ Lunden, Ingrid (January 18, 2017). "Maelle Gavet is the new COO at real estate startup Compass". TechCrunch .
  24. ↑ KALFUS, MARILYN (February 5, 2017). "Luxury real estate startup Compass expands to Newport Beach, scores top agent Rob Giem" . Orange County Register .
  25. ↑ Podder, Sohini (April 1, 2021). "SoftBank-backed Compass valued at $8.22 bln in NYSE debut". Reuters .
  26. ↑ "EX-99.1". U.S. Securities and Exchange Commission.
  27. ↑ 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 .
  28. ↑ C, Priyamvada (January 5, 2023). "Real estate broker Compass to cut more jobs to deal with housing downturn". Reuters .
  29. ↑ Haynes, Dion (November 13, 2014). "New York realty firm to open office in D.C." The Washington Post .
  30. ↑ "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.
  31. ↑ Glendenning, Lauren (April 1, 2016). "Tech company Compass acquires Shane Aspen Real Estate". The Aspen Times .
  32. ↑ Sims, Stephanie; Terchek, Natalie (January 19, 2018). "Compass acquires Bushari Real Estate". Boston Agent Magazine.
  33. ↑ Rodkin, Dennis (April 25, 2018). "Compass acquires Chicago brokerage Conlon Christie's". Crain's Chicago Business .
  34. ↑ SOUTH, GILL (April 25, 2018). "Compass acquires Chicago's Conlon Real Estate" . Bradley Inman .
  35. ↑ Solomont, E.B.; Blake, Matthew (March 2, 2020). "Compass faces a reckoning" . The Real Deal .
  36. ↑ Stiles, Marc (April 25, 2018). "$2.2 billion real estate tech company enters the Puget Sound region market". American City Business Journals .
  37. ↑ Lynch, Dennis (June 25, 2018). "Compass buys Hudson Company, continuing Chicago expansion effort" . The Real Deal .
  38. ↑ Kearns, Patrick (June 25, 2018). "Compass acquires Chicago indie brokerage The Hudson Company" . Bradley Inman .
  39. ↑ "Paragon Real Estate of SF acquired by Compass to form city's largest brokerage". San Francisco Chronicle . July 10, 2018.
  40. ↑ Kearns, Patrick (July 9, 2018). "Compass acquires Paragon, seeks San Francisco market supremacy" . Bradley Inman .
  41. ↑ Stiles, Marc (August 14, 2018). "Avenue Properties joins real estate tech company Compass" . American City Business Journals .
  42. ↑ Kearns, Patrick (August 14, 2018). "Compass takes over Avenue Properties' Seattle offices" . Bradley Inman .
  43. ↑ "Compass buying Pacific Union – its second SF real estate acquisition in two months". San Francisco Chronicle . August 22, 2018.
  44. ↑ Norman, Hannah (August 29, 2018). "Compass acquires Pacific Union" . American City Business Journals .
  45. ↑ "Compass acquires DC indie brokerage" . The Real Deal . November 13, 2018.
  46. ↑ Kearns, Patrick (November 12, 2018). "Compass Acquires D.C. Indie Wydler Brothers Real Estate" . Bradley Inman .
  47. ↑ Lunden, Ingrid (February 27, 2019). "Compass acquires Contactually, a CRM provider to the real estate industry". TechCrunch .
  48. ↑ Pender, Kathleen (March 5, 2019). "Compass buys Alain Pinel to create Bay Area real estate behemoth". San Francisco Chronicle .
  49. ↑ Kelliher, Fiona (March 4, 2019). "Alain Pinel turned down Compass' acquisition offer last year. Now, it's changed its mind". American City Business Journals .
  50. ↑ Solomont, E.B. (April 3, 2019). "Compass strikes deal to buy Stribling" . The Real Deal .
  51. ↑ Kearns, Patrick (April 3, 2019). "Compass to acquire Stribling & Associates" . Bradley Inman .
  52. ↑ Council, Jared (November 19, 2019). "Real-Estate Brokerage Compass Buys AI Startup Detectica" . The Wall Street Journal . ISSN   0099-9660.
  53. ↑ "Compass Acquires Detectica, Deepening Artificial Intelligence and Machine Learning Capabilities Across The Compass Real Estate Platform" (Press release). PR Newswire. November 19, 2019.
  54. ↑ Rosacia, Pam (November 19, 2019). "Home trading platform Compass buys AI company Detectica". S&P Global .
  55. ↑ SOPER, TAYLOR (October 5, 2020). "Real estate brokerage Compass to acquire Seattle-based home closing startup Modus". GeekWire .
  56. ↑ SOPER, TAYLOR (June 16, 2022). "Real estate giant Compass shuts down Modus, the Seattle-based title business it acquired in 2020". GeekWire .
  57. ↑ "Compass Acquires KVS Title" (Press release). PR Newswire. February 25, 2021.
  58. ↑ Kearns, Patrick (February 25, 2021). "Compass moves deeper into closing services with KVS Title acquisition" . Bradley Inman .
  59. ↑ James, Cordilia (April 26, 2021). "Compass buys Glide, RE transaction management platform" . The Real Deal .
  60. ↑ "Compass Agrees to Acquire Real Estate Transaction-Management Platform Glide" (Press release). PR Newswire. April 26, 2021.
  61. ↑ "Compass Agrees to Acquire First Alliance Title" (Press release). PR Newswire. September 22, 2021.
  62. ↑ DALRYMPLE II, JIM (September 22, 2021). "Compass scoops up yet another title company" . Bradley Inman .
  63. ↑ "Compass Agrees to Acquire CommonGround Abstract" (Press release). PR Newswire. September 28, 2021.
  64. ↑ DALRYMPLE II, JIM (September 28, 2021). "Compass acquiring third title company in less than a month" . Bradley Inman .
  65. ↑ "Compass Agrees to Acquire Consumer's Title Company of California" (Press release). PR Newswire. May 3, 2022.
  66. ↑ VERDE, BEN (May 3, 2022). "Compass acquires Consumer's Title Company of California" . Bradley Inman .
  67. ↑ Gonzales, Angela (April 6, 2023). "Scottsdale's Launch Real Estate joins national giant, introducing it to metro Phoenix" . American City Business Journals .
  68. ↑ DALRYMPLE II, JIM (April 6, 2023). "Compass scoops up 300-agent indie brokerage in Arizona" . Bradley Inman .
  69. ↑ Asch, Andrew (September 19, 2023). "Compass acquires Pasadena firm DPP" . The Real Deal .
  70. ↑ Baird, Cody (September 27, 2023). "Compass buys Realty Austin, Realty San Antonio" . American City Business Journals .
  71. ↑ MCPHERSON, MARIAN (September 27, 2023). "Compass acquires No. 1 indie brokerage in Central Texas" . Bradley Inman .
  72. ↑ Lovinger, Joe (September 27, 2023). "Compass Acquires Realty Austin, Realty San Antonio" . The Real Deal .
  73. ↑ Hinsche, Kate (January 16, 2024). "Compass to acquire Fort Lauderdale-based Attorneys Key Title" . The Real Deal .
  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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