Compass, Inc.
TypePublic
NYSE: COMP
IndustryReal estate
FoundedOctober 4, 2012 (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)
ServicesBroker
RevenueDecrease US$6.018 billion (2022)
Decrease US$−589 million (2022)
Decrease US$−601 million (2022)
Total assetsDecrease US$1.533 billion (2022)
Total equityIncrease US$520 million (2022)
OwnerSoftBank Vision Fund (30.1%)
Robert Reffkin (2.1%)
Number of employees
3,191 (2022)
Websitecompass.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]

In 2022, the company closed 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]

The company then expanded into several markets, both organically and via acquisitions.[22][23][24][25][26][27][28][29]

In July 2016, the company launched a new mobile app that offers real-time data on the real estate market.[30]

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.[31] At that time, it had 1,300 agents.[32]

In November 2019, Compass announced plans to open its India Development Centre in Hyderabad.[33]

On April 1, 2021, the company became a public company via an initial public offering.[34]

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.[35]

In June 2022, the company announced 450 layoffs. In October 2022, it announced layoffs of half of its technology team, or approximately 750 people.[36] The company announced additional layoffs in January 2023.[37]

Acquisitions

Date Acquired Description Source
November 2014 Lindsay Reishman Real Estate Washington, D.C.-based broker [38][39]
April 2016 Shane Aspen Real Estate Aspen-based broker [40]
January 2017 Bushari Real Estate Boston-based brokerage [41]
April 2018 Conlon Chicago-based brokerage [42][43]
April 2018 Northwest Group Real Estate Seattle-based brokerage [44][45]
June 2018 The Hudson Company Chicago-based brokerage [46][47]
July 2018 Paragon Real Estate Group San Francisco-based brokerage [48][49]
August 2018 Avenue Properties Seattle-based brokerage [50][51]
August 2018 Pacific Union International San Francisco-based brokerage [52][53]
November 2018 Wydler Brothers Washington, D.C.-based brokerage [54][55]
February 2019 Contactually CRM provider; shut down in March 2022 [56]
March 2019 Alain Pinel Realtors San Francisco-based brokerage [57][58]
April 2019 Stribling & Associates New York-based brokerage [59][60]
November 2019 Detectica AI Startup [61][62][63]
October 2020 Modus Home closing startup, shut down in June 2022 [64][65]
February 2021 KVS Title Title insurance and settlement services provider [66][67]
April 2021 Glide Labs Transaction management platform [68][69]
September 2021 First Alliance Title Title insurance and settlement services provider [70][71]
September 2021 CommonGround Abstract Title insurance and settlement services provider [72][73]
May 2022 Consumer's Title Company Title insurance and settlement services provider [74][75]
April 2023 Launch Real Estate Arizona-based brokerage [76][77]

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.[78]

In January 2019, it was ranked 14th on Glassdoor's Best Places to Work.[79]

In April 2019, Compass received a Webby Award for Best Real Estate Website.[80]

In August 2019, it was named to Fast Company's Best Workplaces for Innovators.[81]

Compass won the 2020 Webby Award in the real estate web category.[82]

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. ↑ Cordle, Ina (August 21, 2015). "Compass opens first SoFla office on Lincoln Road". The Real Deal.
  23. ↑ "Urban Compass picks up top team from Citi Habitats". The Real Deal. September 10, 2014.
  24. ↑ WIGGIN, TEKE (September 30, 2015). "Compass riding $50M funding round into Boston". Bradley Inman.
  25. ↑ Solomont, E.B. (September 4, 2015). "Compass turns to the Hamptons, where rivals roam". The Real Deal.
  26. ↑ Rodkin, Dennis (November 28, 2017). "City's top-selling residential broker team jumps to new-in-town firm". Crain's Chicago Business.
  27. ↑ SEDERSTROM, JOTHAM (November 7, 2017). "Compass reveals plans for massive expansion". Bradley Inman.
  28. ↑ Clarke, Katherine (September 2, 2016). "Compass now claims its agents account for $8B in sales -- but what's that number made of?". The Real Deal.
  29. ↑ McAlone, Nathan (August 31, 2016). "This startup that wants to blow up the real-estate market is now worth more than $1 billion". Business Insider.
  30. ↑ McAlone, Nathan (July 20, 2016). "This $800 million startup just launched an app to make buying a home easier". Business Insider.
  31. ↑ Lunden, Ingrid (January 18, 2017). "Maelle Gavet is the new COO at real estate startup Compass". TechCrunch.
  32. ↑ KALFUS, MARILYN (February 5, 2017). "Luxury real estate startup Compass expands to Newport Beach, scores top agent Rob Giem". Orange County Register.
  33. ↑ Kearns, Patrick (November 5, 2019). "Compass goes global with India tech hub, adds Amazon veteran". Bradley Inman.
  34. ↑ Podder, Sohini (April 1, 2021). "SoftBank-backed Compass valued at $8.22 bln in NYSE debut". Reuters.
  35. ↑ "EX-99.1". U.S. Securities and Exchange Commission.
  36. ↑ 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.
  37. ↑ C, Priyamvada (January 5, 2023). "Real estate broker Compass to cut more jobs to deal with housing downturn". Reuters.
  38. ↑ Haynes, Dion (November 13, 2014). "New York realty firm to open office in D.C." The Washington Post.
  39. ↑ "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.
  40. ↑ Glendenning, Lauren (April 1, 2016). "Tech company Compass acquires Shane Aspen Real Estate". The Aspen Times.
  41. ↑ Sims, Stephanie; Terchek, Natalie (January 19, 2018). "Compass acquires Bushari Real Estate". Boston Agent Magazine.
  42. ↑ Rodkin, Dennis (April 25, 2018). "Compass acquires Chicago brokerage Conlon Christie's". Crain's Chicago Business.
  43. ↑ SOUTH, GILL (April 25, 2018). "Compass acquires Chicago's Conlon Real Estate". Bradley Inman.
  44. ↑ Solomont, E.B.; Blake, Matthew (March 2, 2020). "Compass faces a reckoning". The Real Deal.
  45. ↑ Stiles, Marc (April 25, 2018). "$2.2 billion real estate tech company enters the Puget Sound region market". American City Business Journals.
  46. ↑ Lynch, Dennis (June 25, 2018). "Compass buys Hudson Company, continuing Chicago expansion effort". The Real Deal.
  47. ↑ Kearns, Patrick (June 25, 2018). "Compass acquires Chicago indie brokerage The Hudson Company". Bradley Inman.
  48. ↑ "Paragon Real Estate of SF acquired by Compass to form city's largest brokerage". San Francisco Chronicle. July 10, 2018.
  49. ↑ Kearns, Patrick (July 9, 2018). "Compass acquires Paragon, seeks San Francisco market supremacy". Bradley Inman.
  50. ↑ Stiles, Marc (August 14, 2018). "Avenue Properties joins real estate tech company Compass". American City Business Journals.
  51. ↑ Kearns, Patrick (August 14, 2018). "Compass takes over Avenue Properties' Seattle offices". Bradley Inman.
  52. ↑ "Compass buying Pacific Union – its second SF real estate acquisition in two months". San Francisco Chronicle. August 22, 2018.
  53. ↑ Norman, Hannah (August 29, 2018). "Compass acquires Pacific Union". American City Business Journals.
  54. ↑ "Compass acquires DC indie brokerage". The Real Deal. November 13, 2018.
  55. ↑ Kearns, Patrick (November 12, 2018). "Compass Acquires D.C. Indie Wydler Brothers Real Estate". Bradley Inman.
  56. ↑ Lunden, Ingrid (February 27, 2019). "Compass acquires Contactually, a CRM provider to the real estate industry". TechCrunch.
  57. ↑ Pender, Kathleen (March 5, 2019). "Compass buys Alain Pinel to create Bay Area real estate behemoth". San Francisco Chronicle.
  58. ↑ Kelliher, Fiona (March 4, 2019). "Alain Pinel turned down Compass' acquisition offer last year. Now, it's changed its mind". American City Business Journals.
  59. ↑ Solomont, E.B. (April 3, 2019). "Compass strikes deal to buy Stribling". The Real Deal.
  60. ↑ Kearns, Patrick (April 3, 2019). "Compass to acquire Stribling & Associates". Bradley Inman.
  61. ↑ Council, Jared (November 19, 2019). "Real-Estate Brokerage Compass Buys AI Startup Detectica". The Wall Street Journal. ISSN 0099-9660.
  62. ↑ "Compass Acquires Detectica, Deepening Artificial Intelligence and Machine Learning Capabilities Across The Compass Real Estate Platform" (Press release). PR Newswire. November 19, 2019.
  63. ↑ Rosacia, Pam (November 19, 2019). "Home trading platform Compass buys AI company Detectica". S&P Global.
  64. ↑ SOPER, TAYLOR (October 5, 2020). "Real estate brokerage Compass to acquire Seattle-based home closing startup Modus". GeekWire.
  65. ↑ SOPER, TAYLOR (June 16, 2022). "Real estate giant Compass shuts down Modus, the Seattle-based title business it acquired in 2020". GeekWire.
  66. ↑ "Compass Acquires KVS Title" (Press release). PR Newswire. February 25, 2021.
  67. ↑ Kearns, Patrick (February 25, 2021). "Compass moves deeper into closing services with KVS Title acquisition". Bradley Inman.
  68. ↑ James, Cordilia (April 26, 2021). "Compass buys Glide, RE transaction management platform". The Real Deal.
  69. ↑ "Compass Agrees to Acquire Real Estate Transaction-Management Platform Glide" (Press release). PR Newswire. April 26, 2021.
  70. ↑ "Compass Agrees to Acquire First Alliance Title" (Press release). PR Newswire. September 22, 2021.
  71. ↑ DALRYMPLE II, JIM (September 22, 2021). "Compass scoops up yet another title company". Bradley Inman.
  72. ↑ "Compass Agrees to Acquire CommonGround Abstract" (Press release). PR Newswire. September 28, 2021.
  73. ↑ DALRYMPLE II, JIM (September 28, 2021). "Compass acquiring third title company in less than a month". Bradley Inman.
  74. ↑ "Compass Agrees to Acquire Consumer's Title Company of California" (Press release). PR Newswire. May 3, 2022.
  75. ↑ VERDE, BEN (May 3, 2022). "Compass acquires Consumer's Title Company of California". Bradley Inman.
  76. ↑ Gonzales, Angela (April 6, 2023). "Scottsdale's Launch Real Estate joins national giant, introducing it to metro Phoenix". American City Business Journals.
  77. ↑ DALRYMPLE II, JIM (April 6, 2023). "Compass scoops up 300-agent indie brokerage in Arizona". Bradley Inman.
  78. ↑ ANUTA, JOE (October 14, 2018). "Compass". Crain Communications.
  79. ↑ Renzulli, Kerri Anne (January 8, 2019). "WORK: The 15 best tech companies to work for in 2019, according to Glassdoor". CNBC.
  80. ↑ Liao, Shannon (April 23, 2019). "Here are all the winners of the 2019 Webby Awards". The Verge.
  81. ↑ "The 50 best workplaces for innovators". Fast Company. August 5, 2019.
  82. ↑ Kastrenakes, Jacob (May 20, 2020). "Here are all the winners of the 2020 Webby Awards". The Verge.
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