Compass, Inc.

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]

For other uses, see Compass (disambiguation).

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]

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. "Compass, Inc. 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. March 1, 2023.
  3. "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. Mascarenhas, Natasha (November 16, 2021). "Avi Dorfman's legal battle to be named founding member of Compass has ended in a settlement". TechCrunch.
  10. Popper, Ben (November 27, 2012). "After cashing out to Google and Twitter, Ori Allon is going all in with Urban Compass". The Verge.
  11. 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. 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. 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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