Compass reported a loss of $ 188 million in the first quarter and the chief financial officer resigned as a technology-first brokerage firm tried to reassure investors on the path to profitability. ..
The company recorded $ 1.4 billion in revenue this quarter, with a loss of 45 cents per share, up 25% year-over-year to $ 1.6 billion in expenses. This is above Wall Street’s consensus forecast of 48 cents per share. That $ 188 million loss outweighs the $ 212 million loss from the same period last year.
“We are currently the number one real estate agent in terms of sales volume,” CEO Robert Leffkin said in a statement Thursday.
Compass added 398 key agents in the first quarter, bringing the total to 12,574, according to earnings reports. The company has completed 47,367 transactions, a record for the first quarter.
However, as soon as a brokerage firm acquires an agent, it loses one of its top executives. Kristen Anchor Brandt She said she would resign as CFO in September and leave the brokerage firm to launch an investment fund on Thursday afternoon. Ankerbrandt arrived at the company in 2018 and replaced Craig Anderson, a former Flywheel executive. CraigAnderson lived in this position for less than a year.
The compass has not nominated a successor to Anchor Brand, Greg HeartJoined as Chief Operating Officer in 2020, has been promoted to COO.
Reffkin told investors that earnings in the second and third quarters were higher than the previous quarter due to the seasonality inherent in real estate and promised not to invest any more. The compass reported Thursday that it had $ 476 million in cash and access to a $ 350 million credit line.
“We do more with less effort,” said belt-tightening Refkin. “We manage our business to ensure that we do not need additional capital.”
Reffkin has adopted a variety of ways securities firms can mitigate cash burns, including expanding into new markets and slowing the pace of acquisitions.
The company lowered its second-quarter earnings forecast from $ 2 billion to $ 2.2 billion due to rising interest rates and supply shortages in California.
“The purchasing power of the average buyer has declined,” says Ankerbrandt.
Equity-based compensation, a recruitment tool that helped Compass gain market share rapidly, continued to reduce earnings and accounted for about one-third of losses.Recent compass Shrink The employee stock incentive program delays its rollout and allows employees to wait longer for full monetization.
Compass stocks fell to a record low of $ 3.86 before closing at $ 4.47 this Thursday. The January 3 quarter high was $ 9.55, down from more than $ 20 immediately after the initial public offering in April 2021.
Douglas Elliman, one of Compass’s major competitors, also saw stock trading at record lows this week.The quarterly report revealed that it was spending $ 6.7 million to become a publicly traded company. Halved profit From the same period a year ago.