Compass, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $1,494.0 million for the three months ended September 30, 2024, marking an increase of $156.6 million (11.7%) compared to $1,337.4 million for the same period in 2023. For the nine months ended September 30, 2024, revenue reached $4,248.7 million, up $460.1 million (12.1%) from $3,788.6 million in the prior year. This growth was partially driven by the acquisition of residential real estate brokerages, contributing 6.4% of the revenue increase for the quarter.
Despite the revenue growth, total operating expenses also rose, reaching $1,497.4 million for the three months ended September 30, 2024, compared to $1,376.3 million in the same period last year. For the nine-month period, operating expenses totaled $4,362.9 million, up from $4,020.5 million. The company reported a loss from operations of $(3.4) million for the third quarter, a notable improvement from a loss of $(38.9) million in the same quarter of 2023. The net loss for the three months ended September 30, 2024, was $(1.9) million, significantly reduced from $(39.2) million in the prior year.
The company’s total assets increased to $1,199.8 million as of September 30, 2024, up from $1,160.3 million at the end of 2023. Cash and cash equivalents rose to $211.2 million, compared to $166.9 million at the end of 2023. However, total liabilities also increased to $768.7 million from $728.3 million, with current liabilities rising to $358.3 million from $292.5 million.
Strategically, Compass completed several acquisitions, including 100% ownership interests in Latter & Blum Holdings, LLC and Parks Village Nashville, LLC, during the second quarter of 2024. The total consideration for these acquisitions was approximately $26.1 million in Class A common stock and $21.3 million in cash. The company also faced challenges due to a slowdown in the U.S. residential real estate market, influenced by high interest rates and changing industry practices following a nationwide class action settlement.
In terms of operational metrics, the number of principal agents increased by 20.0% year-over-year to 17,542, and total transactions rose by 16.1% to 55,872 for the quarter. The gross transaction value for the quarter was $57.7 billion, reflecting a 13.4% increase from the previous year. The company continues to assess the impact of market conditions on its business and financial results.
About Compass, Inc.
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