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Compass, Inc.

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For other uses, see Compass (disambiguation).

Compass, Inc.
FormerlyUrban Compass, Inc. (2012–2021)
Company typePublic
NYSE: COMP
IndustryReal 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
ServicesBroker
RevenueDecrease US$4.89 billion (2023)
Negative increase US$−315 million (2023)
Negative increase US$−320 million (2023)
Total assetsDecrease US$1.16 billion (2023)
Total equityDecrease US$432 million (2023)
OwnerSoftBank Vision Fund (30.1%)
Robert Reffkin (2.1%)
Number of employees
2,549 (2023)
Websitecompass.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]

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

[edit]

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

[edit]
Date Acquired Description Source
November 2014 Lindsay Reishman Real Estate Washington, D.C.–based broker [26][27]
April 2016 Shane Aspen Real Estate Aspen-based broker [28]
January 2017 Bushari Real Estate Boston-based brokerage [29]
April 2018 Conlon Chicago-based brokerage [30][31]
April 2018 Northwest Group Real Estate Seattle-based brokerage [32][33]
June 2018 The Hudson Company Chicago-based brokerage [34][35]
July 2018 Paragon Real Estate Group San Francisco–based brokerage [36][37]
August 2018 Avenue Properties Seattle-based brokerage [38][39]
August 2018 Pacific Union International San Francisco–based brokerage [40][41]
November 2018 Wydler Brothers Washington, D.C.–based brokerage [42][43]
February 2019 Contactually CRM provider; shut down in March 2022 [44]
March 2019 Alain Pinel Realtors San Francisco–based brokerage [45][46]
April 2019 Stribling & Associates New York–based brokerage [47][48]
November 2019 Detectica AI Startup [49][50][51]
October 2020 Modus Home closing startup, shut down in June 2022 [52][53]
February 2021 KVS Title Title insurance and settlement services provider [54][55]
April 2021 Glide Labs Transaction management platform [56][57]
September 2021 First Alliance Title Title insurance and settlement services provider [58][59]
September 2021 CommonGround Abstract Title insurance and settlement services provider [60][61]
May 2022 Consumer's Title Company Title insurance and settlement services provider [62][63]
April 2023 Launch Real Estate Arizona-based brokerage [64][65]
September 2023 Deasy Penner Podley/DPP Pasadena-based luxury boutique brokerage [66]
September 2023 Realty Austin and Realty San Antonio Texas-based brokerages [67][68][69]
January 2024 Attorneys Key Title Fort Lauderdale–based title company [70]
April 2024 Latter & Blum Broker operating in Louisiana and Mississippi [71][72]
May 2024 Parks Real Estate Broker operating in Tennessee [73]

Awards

[edit]

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]

References

[edit]
  1. ^ MCPHERSON, MARIAN (September 16, 2021). "Avi Dorfman's 8-year battle with Compass is finally over". Bradley Inman.
  2. ^ a b c d "Compass, Inc. 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 28, 2024.
  3. ^ a b "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. ^ a b Mascarenhas, Natasha (November 16, 2021). "Avi Dorfman's legal battle to be named founding member of Compass has ended in a settlement". TechCrunch.
  7. ^ a b Popper, Ben (November 27, 2012). "After cashing out to Google and Twitter, Ori Allon is going all in with Urban Compass". The Verge.
  8. ^ a b 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. ^ a b 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. ^ a b 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.
[edit]
  • Official website
  • Business data for Compass, Inc.:
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