Compass losses continue in the 1st Q 2023
The brokerage brought in a total of $957 million in revenue and lost $150 million. The results are something of a repeat from the fourth quarter of 2022. The losses were up slightly over the last two quarters of last year, which counted $76 million per period. However, they did beat expectations.
The reported loss puts Compass’ cash burn for the period at $80 million, down from roughly $120 million in the first quarter of 2022 but up slightly over the last two quarters of last year, which counted $76 million per period.
Quarterly revenue fell 31 percent year-over-year to $957 million, while transaction volume declined 24 percent annually as rising interest and mortgage rates impacted the housing market.
Compass CFO Kalani Reelitz said in an earnings call the company will be cash flow positive by the end of the second quarter — less than two months away. The forecast puts the brokerage in line with a deadline it announced last year.
“We remain on track to achieve our full-year operating expense targets,” said Reelitz.
My Thoughts on Compass
Compass is making bold statements that they will be profitable in tow more months. As my mother would say actions speaking louder than words. I’m sure if they don’t make their mark they will blame the housing market cooling down.
I will give credit to Compass for making numerous price reductions.
Source: The Real Deal