Why are Compass Real Estate Executives Smiling?
Losing north of a billion dollars over two years is rarely cause for optimism. But Compass has found reasons to smile.
Its record-breaking losses can be viewed as investments into the future, its executives claim — a transformative bet on developing technology for its agents that rival firms will not be able to match. And now that the money has been spent, it’s time to focus on getting into the black, goes the thinking.
“The intention of raising all that capital was to spend it on things that would help attract the best agents and retain them,” Rory Golod, Compass’ president of growth, told The Real Deal’s Hiten Samtani shortly after the company’s first-quarter earnings call, when the company revealed it lost $150 million in the quarter. Golod cited a jump in the firm’s stock price as a sign that investors felt good about where the company’s headed.
I’m willing to give Compass a thumbs up for the steps they have taken to become profitable. However, as they saying goes the “proof is in the pudding” Lets. put the appearances and promises aside and examine 2nd Q numbers when they come out. If the numbers are still negative, I don’t want to hear its because of the housing market is slow.