Compass, Inc. (NYSE:COMP) Q4 2024 Earnings Conference Call February 18, 2025 5:00 PM ET Company Participants Soham Bhonsle - Head of IR Robert Reffkin - Founder & CEO Kalani Reelitz - CFO Conference Call Participants Jason Helfstein - Oppenheimer Christopher Kuntarich - UBS Bernie McTernan - Needham Ryan McKeveny - Zelman & Associates Michael Ng - Goldman Sachs Operator Thank you for standing by. And at this time, I would like to welcome everyone to today's Compass, Inc. Q4 and full year 2024 financial resu ...

Financial Data and Key Metrics Changes - In Q4 2024, revenue increased by 25.9% year over year, reaching $1.38 billion, exceeding the high end of the original guidance range [31] - Adjusted EBITDA for Q4 was $16.7 million, a significant improvement from a loss of $23.7 million a year ago [36] - Full year 2024 revenue was $5.6 billion, a 15% increase, with adjusted EBITDA reaching a record $126 million [39] - Free cash flow for Q4 was $26.7 million, a strong recovery from negative free cash flow of $41 million last year [38] Business Line Data and Key Metrics Changes - Total transactions increased by 24.1% year over year, while organic transactions grew by 15.5% [7] - The title and escrow business saw a nearly quadrupled profitability year over year, with expectations to double adjusted EBITDA in 2025 [8] - Principal agent count grew by 21% year over year, with a strong retention rate of 96.9% [7] Market Data and Key Metrics Changes - Market share increased by 65 basis points year over year, from 4.41% to 5.06%, marking the highest increase in the past twelve quarters [11] - The overall market for transactions increased by 6.8%, indicating that Compass's growth outpaced the market significantly [7] Company Strategy and Development Direction - The company aims to control organic operating expenses at 3% to 4% annual growth while expanding market share through agent recruitment and M&A [5] - The acquisition of Christie's International Real Estate is expected to enhance margins and expand the high-margin affiliate business [10] - The company is focused on leveraging its end-to-end platform and unique inventory strategy to drive growth and improve agent productivity [19] Management's Comments on Operating Environment and Future Outlook - Management believes that structural changes in the brokerage industry will favor Compass, particularly following the NAR settlement that removes anti-competitive rules [12] - The company expects to continue gaining market share and improving financial performance despite a challenging housing market [11] - Management is optimistic about the future, projecting continued positive free cash flow and strong growth in adjusted EBITDA [42] Other Important Information - The company ended Q4 with $234 million in cash and cash equivalents, with no outstanding draws on its revolving line of credit [39] - The guidance for Q1 2025 revenue is set between $1.35 billion and $1.475 billion, including contributions from the Christie's acquisition [40] Q&A Session Summary Question: Are new initiatives attracting more agents to Compass? - Management noted that private exclusives and coming soon listings provide agents with a competitive edge, which is increasingly attracting agents to Compass [50] Question: What is the expected impact of acquisitions on revenue? - Management indicated that the acquisition impact for Q1 is around 900 basis points, with expectations for similar impacts throughout 2025 [54] Question: How is the company planning to drive awareness for Compass One? - The company relies on its agents for marketing, leveraging their extensive networks rather than corporate marketing [59] Question: What are the plans for free cash flow usage? - Free cash flow will be focused on fortifying the balance sheet, investing in technology, and potentially returning value to shareholders in the future [63] Question: What is the outlook for agent growth? - The company expects to add between 600 to 700 gross agents while maintaining a high retention rate [78]

CHICAGO, Feb. 05, 2025 (GLOBE NEWSWIRE) -- 2025 will bring a shift toward heritage architectural styles, a heightened interest in security and privacy, and a spotlight on up-and-coming markets including Madrid and the Balkans, according to the Christie's International Real Estate 2025 Global Luxury Forecast.   Unveiled today, the annual report examines key trends and factors shaping the global luxury real estate market, with insights from broker-owners and leading agents within the network of more than 100 ...

HONG KONG, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Global luxury real estate network Christie’s International Real Estate continues its expansion in East Asia with the launch of Christie’s International Real Estate Hong Kong.   The new venture is led by Hong Kong native Samson Law, who brings more than three decades of local real estate experience in sales, management and technology to his role. His background includes founding several boutique real estate firms, including online property search pioneer HongKongH ...

CHICAGO and PLAYA DEL CARMEN, MEXICO, Jan. 27, 2025 (GLOBE NEWSWIRE) -- Christie's International Real Estate, the global leader in luxury real estate, is expanding to the Mexican Caribbean and Yucatan Peninsula through a new agreement with leading local brokerage firm, Mexico Real Estate Group. To highlight its new affiliation with Christie's International Real Estate, the brokerage is also changing its name to Christie's International Real Estate Mexico Luxury Properties.  The firm will serve the states of ...

Core Insights - Christie's International Real Estate is expanding into the Mexican Caribbean and Yucatan Peninsula through a partnership with Mexico Real Estate Group, which will now operate under the name Christie's International Real Estate Mexico Luxury Properties [1][2] Company Overview - Christie's International Real Estate Mexico Luxury Properties was founded in 2005 by Jason Waller and has grown to a team of 16 multilingual agents, with leadership from Waller, his wife Leah Campbell, COO Matthew Mathieson, and Elizabeth Gregg [3] - The firm is well-established in the high-end residential market of the Yucatan Peninsula, which is gaining recognition alongside established luxury markets like Los Cabos and Puerto Vallarta [4] Market Dynamics - The luxury real estate market in the region is robust, with demand for million-dollar homes surpassing that for smaller condos, and properties range from under $1 million to over $10 million [5] - The firm's current inventory includes high-value properties such as a $3.85 million beachfront home and a $2.9 million home in Tulum [6] Infrastructure Developments - Significant infrastructure projects, including Tulum's new international airport and the Maya Train, are enhancing accessibility and tourism, positively impacting the luxury real estate market [7] Strategic Advantages - As the exclusive affiliate of Christie's International Real Estate, the brokerage will benefit from enhanced marketing, international visibility, and connections to Christie's auction house for luxury goods [8] - The recent acquisition of Christie's International Real Estate by Compass, the largest residential brokerage in the US, provides a valuable referral network for international brokers [9] Leadership Perspective - Jason Waller emphasizes that the partnership with Christie's will elevate brand recognition and showcase their expertise in luxury real estate [10] - Kevin Van Eck, president of affiliate strategy at Christie's, highlights the professionalism and experience of Waller's team as ideal for expanding Christie's global network in the region [11] Expansion Context - Christie's International Real Estate Mexico Luxury Properties is part of a broader expansion strategy, now serving over 18 destinations in the Caribbean, including new affiliates in various locations [12]

NEW YORK, Jan. 15, 2025 /PRNewswire/ -- Compass, Inc. (NYSE: COMP) ("Compass" or "the Company"), the largest residential real estate brokerage in the United States by sales volume1, announces an update to its Q4 2024 and full-year 2024 outlook ahead of its participation at the Needham Growth Conference this morning. "In a year where resale transactions are expected to approach a 29 year-low, Compass is on track to deliver record Adjusted EBITDA and free cash flow for the full-year 2024, and expects to be ab ...

CHARLOTTESVILLE, Va., Jan. 14, 2025 /PRNewswire/ -- Quad-C Management, Inc. ("Quad-C"), a leading middle market private equity firm, has completed the sale of @properties to Compass, Inc. ("Compass"; NYSE: COMP). @properties is a Chicago-based real estate services company that owns and operates real estate brokerage firms in seven states, multi-state title and mortgage companies, and the Christie's International Real Estate network. Christie's International Real Estate is a global luxury real estate network ...

franckreporter Listen below or on the go on Apple Podcasts and Spotify The Nasdaq is up 30% and the Dow trails badly, up 14%. (0:34) Housing and manufacturing data dominate short week. (1:57) South Korea plane crash kills 179. (3:07) The following is an abridged transcript: It’s another holiday-shortened week for Wall Street, with markets shut on Wednesday, January 1. But Tuesday, December 31 the stock market closing bell rings at 4 p.m. ET as normal as it’s the last trading day of the year. The bond ...

wildpixel Listen below or on the go on Apple Podcasts and Spotify The holiday-shortened week will market the start of seasonal stock gains. (0:18) Costs soaring on ChatGPT improvement project. (4:06) How much did the "12 Days of Christmas" cost in '24? (5:14) Investors will enjoy a holiday-shortened trading week. The stock and bond markets are shut on Wednesday for Christmas Day and both will also close early on Tuesday for Christmas Eve. But while there are no major earnings, there’s still the Santa ...