04:51
Traffic jam:   0
$
92.2628
99.7057

Real estate platform Compass plans IPO

3 March 2021
2927
2 min.
5
Real estate platform Compass plans IPO

IPO plans

Major real estate company Compass, which provides technology solutions for real estate transactions in the US, has reported 55% revenue growth and plans for an IPO.

Compass, a technology start-up in US residential real estate, on Monday announced plans to float on the US stock market.

Compass' digital platform provides technology tools and services to help real estate agents grow their businesses and better serve their clients.

Compass was founded in 2012 by Ori Allon, the former chief technology officer of Twitter (TWTR), and Robert Reffkin, formerly of Goldman Sachs (GS).

Compass has about 4% of the US residential real estate market and its business covers 46 agglomerations. Compass has more than 18,000 agents on its platform and offices in many states.

The company earns revenue from commissions on transactions made on the platform.

Compass agents were involved in $91.2bn worth of home sales in 2019, double the year before. According to the company, the total amount of transactions that Compass agents completed exceeded $300 billion from more than 275,000 home buyers and sellers. Given an average deal size of $1.09m and a minimum house price of $1.25m on the company's web page Compass specialises in high-end homes and markets.

The company's revenues

Last year, the US residential property market grew strongly as the Covid-19 pandemic and quarantine restrictions forced people to work from home.

According to the S&P CoreLogic Case-Shiller house price index, national house prices rose 10.4% in December compared with a year earlier.

Compass' 2020 revenues rose to $3.7bn from $2.4bn.

Compass said the main growth came in the second half of 2020, with the total number of transactions last year rising to 144,784, a 66% increase on 2019.

However, the company incurred a loss of $270.2 million for the year. In 2019, the cash and cash equivalents balance fell by 20%.

Compass IPO

It is not yet known when Compass plans to go public, how many shares it will sell in the IPO, at what price or what the company's valuation is.

However, the latest funding round in 2019 by investment fund SoftBank valued Compass at about $6.4bn.

Persons2 and Companies3 in the news

Founder of Compass
1 place
Founder of Compass
2 place
Compass
1 place
X (Twitter)
2 place
Goldman Sachs
3 place
Section:

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8112776893
Died this year
14352243
Born this year
35309058