More bad news for Compass Real Estate. When will it end?
Compass suffered losses of $101.1 million in the second quarter, the residential brokerage said Monday, noting that it would look to slash costs as the industry grapples with a slower housing market.
The brokerage reported losses of $289 million for the first half of the year, according to an earnings release
Compass outlook a lot less rosy
In the second quarter of 2021, with the residential market hitting record highs, Compass lost $7 million, even as revenue tripled. Now, however, the outlook is a lot less rosy, and Compass said it would act accordingly.
“Given the challenges the real estate market has faced so far this year and the likelihood that this difficult environment will continue for the foreseeable future, we are announcing a significant cost reduction program,” Compass CEO and co-founder Robert Reffkin said in the release. In a subsequent earnings call, Reffkin said that “never in my time at Compass have we seen such a big downturn in such a short period of time.”
How much money did Compass lose in one year?
Compass had $430.5 million in cash and cash equivalents at the end of the quarter, down from $618.3 million at the end of last year.
Let’s do the math
Compass started off with $1.5 Billion in seed money….
Last year they had $618.3 million in cash and “cash equivalents….”
In the 2nd Q of 2022 Compass reported $430.5 million in cash and “Cash equivalents”
That $1.5B in seed money provided by Wall Street is fading fast.
Compass cash projections
What does the CEO of Compass have to say?
Reffkin response was saying speculation from critics and competitors was “not new, not true, and not credible.”
Well in that case, I guess I was wrong, Compass is not losing money.
Filed Under: House of cards.