Compass, Inc. Revenue and Transaction Statistics (2022)
Compass is a full-service real estate brokerage incorporated in 2012 under the name Urban Compass. The company later shortened its name and went public in 2021.
Compass’ integrated software platform is a CRM built specifically for real estate providing end-to-end workflows that help its agents attract and retain clients, list and market homes more effectively, and locate desirable properties at attractive prices for buyers.
Here’s an overview of what you’ll find on this page as we take a deeper look at Compass’ business activities:
- How Many Transactions Does Compass Do?
- How Many People Visit Compass.com?
- Compass Revenue
- Compass Expenses
- Is Compass Profitable?
- Compass Market Share
- How Many People Work at Compass?
Key Compass Stats
- In 2021, Compass agents represented buyers or sellers in 225,272 transactions totaling over $559 billion in gross volume.
- Compass had a 5.6% share of the total U.S. real estate market by total transaction volume in 2021.
- Compass generated $6.4 billion in revenue in 2021 but is not currently profitable.
- Compass had an average of 11,058 Principal Agents (defined below), a 27.3% year-over-year increase from 2020.
- Mid-2022 Update: On June 14, 2022, Compass announced a cut to its workforce of 10%.
How Many Transactions Does Compass Do?
Since the company started, Compass agents represented buyers or sellers in over 500,000 transactions.
The company reports transaction in its annual reports by year, represented in this chart.
Here is a table showing the number of deals closed by Compass agents since 2019:
The company claims that it is the largest independent real estate brokerage by gross transaction volume, the combined dollar amount of properties closed by its agents.
Gross transaction volume in 2021 was $254 million, a 51% increase over 2021.
Here is Compass’ gross transaction volume broken down by year:
|Year||Gross Transaction Volume|
How Many People Visit Compass.com?
Compass’ website receives an average of 1.7M organic visitors per month, ranked 16th among the most-visited residential real estate websites.
Here is a table with Compass.com's average monthly organic visits:
|Year||Monthly Organic Visits|
The company’s early growth strategy was one of acquiring traditional brokerages. In traditional brokerages, agents are responsible for marketing and sourcing deals.
In contrast, Redfin, Zillow et al. grew by increasing website traffic and leads.
Redfin and Compass are similar in that they are both full-service brokers but diverge in their approaches to growth. Zillow's business model is even more divergent; it earns money primarily from selling leads to agents at traditional brokerages and has few agents working directly with consumers.
Compass generates nearly all of its revenue from agent commissions earned by helping customers through the process of buying and selling homes. The company states that it makes a small amount of revenue from ancillary real estate services like title and escrow. It plans to expand its revenue from services and add new ones.
Here is a look at how Compass has increased its revenue over the past three years.
Here is a table with the revenue since 2019:
From 2019 to 2021, Compass has increased its total revenue by 2.7x. The revenue increase comes from additional agents who joined the company in 2020 and 2021 and a higher number of new and existing agent transactions.
Compass’ total expenses amounted to $6.9 billion in 2021, up 2.5X sinse 2019. The company's expenses consist of commissions and other related costs, sales and marketing, operations and support, research and development, and general & administrative expenses.
Here are Compass' operating expenses broken down since 2019.
|Year||Total Operating Expenses|
Compass Commission & Other Related Expenses
Around 82.7% of Compass' total expenses are comprised of commission and agent-related costs, which amount to $5.31 billion in 2021, a year-over-year increase of 74% from 2020. Roughly $5.2 billion of the total $5.3 billion of expenses in this category were agent commissions, the company’s most significant and critical expense. In 2021, agent commissions amounted to 80.7% of Compass’ total revenue.
Here is a table that shows this bucket of expenses:
|Year||Commissions & Other Related Expenses|
Compass Sales & Marketing Expenses
Compass’ sales and marketing expenses amounted to $510 million in 2021, up 25% from 2020. This made up approximately 7.9% of the total expenses at the company.
Here are the sales and marketing expenses broken down, by year:
|Year||Sales & Marketing Expenses|
Compass Operations & Support Expenses
Compass’ total operations and support expenses amounted to $374 million in 2021, around 5.8% of total expenses. Compass’ operations and support expenses in 2021 were up 67% from 2020.
Here are the operations and support costs, by year:
|Year||Operations & Support Expenses|
Compass Research & Development Expenses
Compass’ research and development expenses amounted to $365 million in 2021, up 2.5x from $146 million in 2020.
Here is a table of the R&D expenses:
|Year||Research & Development Expenses|
Compass General & Administrative Expenses
Compass’ general and administrative expenses amounted to $288 million in 2021, around 4.5% of the company’s total expenses. Compass’ G&A expenses in 2021 were up 2.7x from 2020.
Here is a table of the G&A expenses:
|Year||General & Administrative Expenses|
Is Compass Profitable?
In 2021 the company reported a net loss of $494 million, resulting in a negative net margin of (7.7%). The company had a negative net margin of (7.3%) in 2020 and 16.3% in 2019. Compass, Inc. is not yet profitable.
Adjusted EBITDA was $1.6 million compared negative EBITDA of ($155 million) in 2020.
Here is table of income, by year:
|Year||Net Income (Loss)|
Compass Market Share
In 2021 Compass had a 5.6% share of the total U.S. real estate market by total transaction volume, up from 4.0% in 2020.
The company calculates its market share by dividing its gross transaction value (value of transactions closed by compass agents) by two times (to account for selling and buying sides) the total transaction value of home sales in the U.S., as reported by the National Association of Realtors (NAR).
Here is a table of the company's market share since 2020:
|Year||Compass Market Share|
How Many People Work at Compass?
As of 2021, 4,775 employees work at Compass. On June 14, 2022, Compass laid off 10% of its employee (non-agent) workforce.
Compass currently has over 26,000 agents.
Of those agents, approximately 48% use the company’s software platform and CRM. This subset of agents is referred to as ‘Principal Agents.'
The average number of Principal Agents is essential to the company's growth potential, particularly when coupled with Compass' platform strengths.
In 2021 Compass had an average of 11,058 Principal Agents, an increase of 27.3% year over year.
Here is a breakdown of Principal Agents in recent years:
|Year||Average Number of Principal Agents|
Compass reports that its principal agents have grown their transaction count 2.7x faster than the average agent. Its Principal Agent retention rate exceeded 90% in 2021.
That's it for my 2022 round-up of Compass Real Estate.
This leading brokerage – differentiated by its use of technology and its software platform – has shown steady growth in revenue and number of agents, despite not yet reaching profitability.
What do you think? Does Compass have what it takes to be a profitable company in the company years? Will they continue to increase their market share in the U.S. residential real estate market?
Leave your remarks below.