Key Highlights

  • Compass files investor prospective for its pending IPO on March 1
  • Revenue growth of +56% to $3.7B in 2020

Compass Discloses Revenue Earnings of $3.7B & Losses of $270M in 2020

The booming housing of 2020 was good to Compass.This fast-growing residential brokerage posted revenue earnings of $3.7B last year, an increase of +56% from the year before. The company also cut its losses to $270M in 2020 from $388M in 2019.  As of December 31, 2020, Compass lost a total of $1.12B.

All of this information in Compass’sinvestor prospectus was filed on March 1 for the company’s pending IPO

Compass Ranked Third-Largest Brokerage in 2020

Compass, founded in 2012, currently boasts 19,000 agents in the US.  Real Trends data found that the company became the third-largest brokerage by deal volume with +$91B in 2019 sales.

In its last funding round concluded in July 2019, investors, including SoftBank Group, chipped in +$1.5B. The company was then valued at $6.4B.   Today, Compass currently has $440.1M in cash on hand, according to its latest investor prospectus filed on March 1.

Compass Co-Founders Own Approximately 7.6% of Class A Shares Issued

Co-founders Ori Allon and Robert Reffkin own some 7.6% of Class A Common Stock, according to these March 1 2021 IPO documents filed.  Allon, the former executive chairman of Compass’ board of directors, now serves as the company’s “chief strategis.”  Reffkin serves as the company’s CEO.  Reffkin also owns +1.5M shares of Class C Common Stock that give him 20 votes/share.

Other major stockholders in Compass include SoftBank’s Vision Fund with 34.8% of Class A common stock and Robert Citrone’s Discovery Capital Management with 9.2% of Class A shares.

Sales Transactions Hit $151.7B in 2020

According to its latest IPO documentation filing on March 1, Compass indicated it sold $151.7B worth of real estate in 2021. This is an increase of +66% y/y.  The company also claimed it now has approximately 4% of the total US housing market.

Bottom line according to the Compass IPO fillings…the firm is gaining market share while continuing to lose money.


Thanks to TheRealDeal.


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