Compass Beats Estimates as Brokerage Rides Hot Housing Market
(Bloomberg) -- Compass Inc. reported second-quarter results that beat estimates, with the New York-based brokerage boosting its market share in the frenzied U.S. housing market.
The SoftBank-backed company’s revenue topped estimates and it posted a narrower net loss than analysts expected, sending its shares higher in late trading.
Led by Chief Executive Officer Robert Reffkin, Compass raised $450 million through an initial public offering earlier this year. The stock had slipped 15% since its April 1 trading debut through Monday’s close.
Compass posted revenue of $1.95 billion in the quarter, while it reported a net loss of $7 million, according to a statement.
“Compass agents strongly outperformed their peers in one of the most competitive real estate markets in recent memory,” Reffkin said in the statement, adding that the company had “nearly doubled its share of the national residential real estate market over the past year.”
Compass has benefited from the surging U.S. housing market. The company has invested heavily in technology, arguing it can boost productivity for agents. But it’s under pressure to show it has a competitive advantage.
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