Home Enterprise Tech Compass files S-1, reveals $3.7B in revenue on net loss of $270M

Compass files S-1, reveals $3.7B in revenue on net loss of $270M

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Compass files S-1, reveals $3.7B in revenue on net loss of $270M

Compass, the say-property brokerage startup backed by roughly $1.6 billion in undertaking funding, filed its S-1 Monday.

Early Newspaper

The switch comes appropriate below one 12 months after the Recent York-essentially based completely firm laid off 15% of its team because of this of the shifting economic fortunes created by the world response to the unconventional coronavirus pandemic.

Outdated to the IPO, SoftBank’s Vision Fund holds a dinky extra than a one-third stake in the firm. Other investors include the Canadian Pension Notion Investment Board, Fidelity, Wellington Administration, and the Qatar Investment Authority, according to Crunchbase.

The firm’s final fundraise became in July 2019, when Compass — a firm that has built a 3-sided marketplace for the say property industry, along with a huge region of algorithms to aid manufacture it work — raised a $370 million round of funding. That financing valued Compass at $6.4 billion.

One of the supreme things about corporations going public is that we find insight into their financials. Compass is no longer profitable but it absolutely did glance a huge surge in revenue over the previous couple of years.

The firm’s revenues gain increased from $186.8 million in 2016 to a whopping $3.7 billion final 12 months, with worthy of the top-line revenue development coming in the final two years, according to its S-1. Given the startup’s agency mannequin, most of that revenue is paid out straight to the firm’s agents, who netted about $3 billion in commissions in 2020. Compass posted a net loss of $270 million in 2020, a net loss roughly in line with what it has experienced in the previous two years.

Full transactions on the platform grew from about 27,000 in 2018 to 145,000 in 2020, while total transaction volume (the cost of the properties the firm brokers) went up by about five-fold, from $34 billion to $152 billion final 12 months. Since commissions on right property are determined as mounted share of the cost of the property, extra transaction volume straight interprets into extra revenue for Compass. The firm had 19,385 agents on its platform as of Dec. 31, 2020.

Compass had its part of exertion forward of the pandemic. In September 2019, the Wall Avenue Journal reported that the firm had misplaced a amount of senior level individuals over the outdated eighteen months including its chief financial officer, chief marketing officer and chief expertise officer.

The yarn became updated publish-publication to extra accurately think the amount of agents Compass has on its platform

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Compass files S-1, reveals $3.7B in revenue on net loss of $270M