COMP - Earnings call transcript Q2 2022

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Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Compass Inc.

Second Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks session. and speakers the will question be answer After Instructions] to Vice Richard Relations. like would President the Investor [Operator now to turn I conference over of Simonelli, ahead. go Please

Richard Simonelli

are of included our you for cite XX-Q non-GAAP and and website. other of and are first afternoon, measures second operator, and financial be may certain future quarter XXXX Today's reflects will items on actual from call. basis. QX presented as on GAAP the see well XX-K, of quarter also earnings joining Form earnings which non-GAAP our disclosure operations performance, address actual you, Thank we the quarter which at and release that thank the continuing different Reconciliations performance the back reasons financials all Please forward-looking between filings. good in materially posted second view presentation our and our long-term Compass Form our financials current a guidance near-term review that's our on statements, targets our for of Compass, Compass’ SEC as and

XXXX, as You today's All information is forward-looking should date, reliance statements. to place this disclaim presentation August information. not any in any expressly undue on and XX, obligation this we of update

the overview on outlook be cover Kristen discussion brief provide an Joining Ankerbrandt, a will our Kristen and and Reffkin, our financial of us Officer. Greg detail. in our will results our more today's business, then Chief call provide Operating Officer; Robert results Hart, Greg Chief on Compass' will Chief our update and and will strategy. Executive Officer; Robert of Financial a

to the Robert? the I turn Robert for call, again call joining thanks Reffkin. So and over

Robert Reffkin

To United the seen the and Since joining which one-week our for Thank mortgage history took you, I our reduction expense quarter fastest well and cash driving hope the year for increase Today, had revenue. we've rates June, down call earnings of repeated of positive ongoing Fed this on everyone our position the us States in landing. has year, to in of have direct provide they stronger. our year, generate the the actions, the welcome financial effect updates are summer. we and results economic for the amount an safe, sharing our plans quarter the in and second XXXX, of uncertainty as for is full to a context, are third enjoying free well XXXX. today. as soft the and XXXX everyone how other outlook headwinds This growing of created all but rest enormous we hoping flow

in Compass for such at calendar shared quarterly are preparing deliver the so such we we year, to estate flow a calls time nearly XXXX industry ago. in manage steps cash expenses, with year you XX% believe Never it in on months beyond. our positive market a to in have below we real already my short cash would market time. taking We this normalized downturn big free be this could our and been where six and just and We earlier be seen the experts have

to We these conditions. taking to additional adjust new are market actions

cash positive LTM of billion approximately would result non-GAAP our other the this XXXX, a midpoint, commissions to free million XX, expenses XXXX. $XXX operating in range billion our believe expenses in ended will from $X.XX expect we enable after generate exiting period. Specifically, the We June and of flow $X.XX XXXX. us At in reduced to reduction

agents while means existing not or levels reducing initiated incentive without zero Moreover, Specifically, and which not now we cash to we acquire our is to plan technology our base service recently biggest recruiting ensure two incentives program, incentives to areas impacted. reduce the of equity revenue expense: agent anymore. we agents, are

to tools an create business. platform that the grow build in to is services $XXX million our best over we provides. We an ability with vision unprecedented My competitive a events. agents. have and we to to the large is place a for platform Over created the to do time, build over unwilling Compass enduring to unable value for Our the their of are support believe the outstanding advantage that agents invested competitors the of real reflection this moat have estate tools or benefit industry

to a the with heavy from brokerage one in built behind strength. States have United investment number the bring ability the having importantly, position and OpEx of More down we the period us,

and presence, of higher state eliminate to agents We brand the the reduce without moving first real recruiting. our to able platform, agent the of Compass we and maturity technology Given the that at estate or now been retention financial Compass. X focus able risking recognize to business for cash scaling in and flow financing has incentives market of strong are markets and positive XX to and the on our to generate XXXX can I beyond. spend invest during free years fortunate be

free positioned pivot revenue flow. more QX Since action pressure. been uncertain call now have our cash in these under are earnings aggressive during to May, taking in is We when to achieve market we conditions positive

growing the company's and our cash principal and and market retaining three I flow; efforts continues one, enhancing continue one We retention the forward, three, free share; following the position to productivity agents objectives: offer our plan maintain best number to industry our Going gaining tools two, be am above of agent to XX%, agents. profitably our platform focusing services generating to quarter-over-quarter. even around

of We stronger business. expect more scalable downturn a business. scalable this profitable company with and come an even out to

Greg hard its businesses, turn from profitable to transformation Echo global it and the experience wealth I'll our including at next our serving into about Alexa Not will our the Compass, of walk of company work Compass where him. Chief platform, name has over Prime at Officer. also new operational end help to came spent want we the years the details the I and office XX that, of he Greg. a we Hart, little along cost a tell to ago and known just to taking Officer, through Chief pass to been excellence at call margins years I back to two running Technology but launching only partnership in bit overseeing business. drive a design Prior which He Before level. responsible to over scale. of solution, help services COO, taking Amazon platform business, are Video, Product in the and Greg And and Greg been And agents platform has of brings down the couple. with did as increase you Sirosh, implementation our the to for our building with Joseph at the a for oversee leading

Greg Hart

expanded excited of Thank today. to years the my you, to Robert. be you of all It's in I'm to as at good speaking product two Compass you be business. after COO role with side the on

As a so and that making Chief tools our that and sure we to to allows I'm do Officer, generate return while expense that our our that the build continue can incredible we services revenue range agents, ensuring within to dictates, investment. committed Operating to on us offering of

ability core XX%. is industry-leading gains facing agent and headwinds, While to the to is of evidenced our over our market our as agents industry estate outperforming continue by retention market the business our residential add real share

laser-focused we operating under stay control, year, severe especially We what revenue will pressure. our on has This can expenses. been

So to we're taking measures business. of appropriate the the expense side the reduce

to other billion the $X.XX billion As commissions Robert range of XXXX. after outlined, $X.XX and we expect in non-GAAP operating expenses exiting

September expect all targeted and by to the of this the targeted calendar cost of end year. reductions cost We complete by the end of majority reductions

Going our that that EBITDA happy do share, the new our I'm generate our so team a September, plan over ensure positive while said, working launch of services. advantage to cash announce and and adjusted With significant to technology forward, we and I longer set the to can with in will grow free we platform flow margins expand work solid market of that to features very tools term. to

the further being software. from will manage contact Our to to retain maximize being profit. agents unique make is close significant our their helps It also helps milestone place third-party This will able aspects agents. without Compass It forced to well. strengthen one us to helps first them also another is to agent's in of and ability forced what use third-party transaction as be the without place that use across all country recruiting

the confident We their industry have that solution in are for best is to the agents the business. we grow built

have we reducing incentives give agents. years, been we Over to financial the the new

or cash Accordingly, agents going we split calls, coming than to highlighted a at new previous their to attract a brokerage. have Compass they prior receiving were told that As on not great equity lower for are providing have be we're they to many agents. incentives us

in improving has talking also tools, agents agents, and the services more serve we to I ultimately team been to This cost increase will to to be of the platform with Compass be our a the grow drive margins. agents. way coming help addition to what improve will call months and you to Services. expanding and In interaction to have about standardizes down My their upon that business. our efficiencies we and software automates develop worked

better lead increasing rates trends market. improved of a levels, mortgage that We We a believe market inventory estate are recent see can of encouraged stock to continuation performance. stabilization and these a real to

to continue the market However, if adjust market achieve it and operating make goal will in gets evaluate further, opportunities goal. expenses steps weeks expense the clear, positive to flow that cash If will our conditions months, be achieve we our to coming to the worse, I want pursue we free necessary and XXXX. in reduction and we'll to perfectly necessary,

I talking focus us a the are you looking area all are aspects of because control assure want for a lot at to expense today. about business. we that's that But We

via of now standardization, considering new further grow to additional well as are the Kristen. ways to We streams and efficiency. line turn will to enhance profitability the I business top other automation process the over as call revenue

Kristen Ankerbrandt

Thank you, Greg.

X% was our Our quarter to compared highest $X date. XXXX up quarter revenue second QX and to billion,

positive was in EBITDA QX down adjusted from $X XXXX. million, Our a a million positive $XX

in revenue by the market slowdowns key was of markets. some our Our growth affected

For still LTM increase compared Despite on a average, seen and our two top top pressure we market result, markets, more line. of our more example, California, which in has put as pressure, decline our the an saw share. this to includes transaction national

to our $XX Our with line transactions a in NAR was our just value. gross XX% the year billion, X% by transactions prior in XX,XXX quarter. In period. decline X% transaction was transaction to compared increase average during under the offset X% in quarter transactions grew decline a second volume in QX, The

and one against QX. grew in from to down the It's our quarters quarter, XX% California, history that the real in we X.X in are average Transactions GTV comparing important QX of X.X were estate year-over-year in XXXX. agent XXXX, per of XX.X per Excluding our XXXX transactions strongest XXXX principal LTM still QX strongest the quarter in quarters. transactions agent we've remember increased the the in Despite ever of in XX.X agent to QX from average for principal transactions X.X average declines market, per our seen our metric. principal the period. this strongest in one is

Turning to expenses.

expense we QX our key made and higher growth. to the to in the businesses. XXXX scaling of was completion These investments of base XXXX Our since driven services of Compass XX profitable new achieve adjacent by platform, annualization launching markets included long-term the progress beginning drive

was as a participation increase from driven in XXXX equity XX.X% reduced in agent XXXX, XXXX. program to the was and revenue the prior up commissions relative of QX other in XX.X% by primarily year This non-GAAP period. Our year-over-year percentage

reduced participation, brokerage AEP an economics we the the in improvement underlying of saw impact business. the Excluding of

in in discontinued as we and call, into XX we you our second initiated June, align reduction on to expenses expansion a conditions other new M&A This the cost well reduction a employee operating revenue cost May as our we with as workforce our to told weaken, all market lower our as started markets paused activity. expectations. reduction quarter, measures. continue plan better In Now with XX%

XXXX. the loss in quarter Included $X $XX stock-based savings in compared of we QX to net a QX June net the a a of $XXX compared expense GAAP cost in included net also million in $XX second was incurred XXXX loss million of XXXX, charge QX $XX loss million with restructuring as actions. result of million During to compensation XXXX, million GAAP of the a

OpEx noncash incurred the with of during of We million $X equivalents remaining need $XXX current assets associated write-off our the of capital the for cash business intangible had reductions, see sheet leases you the associated the for the expense QX. balance plan. planned fund end shutdown amortization additional fixed and our incorporate Motus of also depreciation of We to noncash and with cash other do Motus write-off million leases additional we as and June. currently assets on exited and of When our not

result we our billion As X our to this to down levels to after in for from Robert information. of expenses $X.XX bring $X.XX a other expenses we intend LTM the million Greg deck midpoint, as and At would billion Page mentioned, and reduction non-GAAP QX commissions exit nearly operating more see $X.XX of billion. of $XXX on approximately the investor schedule Please the XXXX XXXX.

by compared prior earnings interest added we rates equity our that retention, revised the basis is our detailed representing agents year. control to Note rates our principal agent industry-leading metrics XXX market XX%. strong. which are within to can While is QX, we business. we market XX on national agent to average And market are at based an also In NAR's our These and market share QX, QX, and on the growth continued metrics LTM acquisition measure and in over metrics these retain our year-over-year. In performance increased health this of share principal we in the our broader on agents, calculation not methodology, remain that focus basis points we control, of share release. XX% gains,

XXXX turn me our to and QX year XXXX let outlook. Now full

to XXXX the which market X.X% year. $X. Given negative are the to full our we $X.XX full uncertainty, the revenue for billion, outlook billion growth lowering of for X% year represents XX to positive

a this decline this XX%, decline for market for year an and the of range XXXX XX%. XXXX of second is full assumed assumption half to to market X% Our XX% incorporates of

prudent our it spending outlook. remainder we conservative, particularly approaching be is to We revenue down bring are expenses our the align with of operating as with better believe to XXXX We caution. our updated to look

effectively on managing our focused position. are We cash

revenue growth QX, which had down from X% year outlook of market to billion our outlook is Our full assumed $X.X prior between and X%. billion in $X of

to Our year for full a current breakeven. loss the million, from adjusted now down $XXX million $XXX outlook is EBITDA XXXX at least of

Turning to our XXXX quarter guidance. third

reflects of to we declines, see We stock billion which expect This challenges billion revenue our peak an $X.X we and EBITDA of adjusted May range the to XX million $XX seen million. have June, and $XX to $X.X of generally business impacting market impact mortgage most loss significantly out. in and macro rates XX days

margin adjusted confident remain targets and XX% we X%, our Lastly, EBITDA cash X% of to flow in and long-term free respectively.

of achieve frame on However, and XXXX, the depending time required beyond to duration these targets could depth extend market downturn. this the

turn we that, of to our For our to grow flow portion us conditions. we free the challenges the the continue structure our the of with our of base, let half operator to ourselves and it market in second billion This adjusted EBITDA variety revenue XXXX share in me Despite increase a we clarity, suspending allow start manage market call. to the can cash updated agent cost With believe XXXX. are $X.X target Q&A better to call the be effectively XXXX, will align positive outlook. to market for position back in principal

Operator

first [Operator of will question Barclays. ahead. Instructions] come Bouley the go Matthew from Our with Please line

Matthew Bouley

Just the one on recruiting the first agent side.

that a talked kind recruit going variable you're kind any removing you're way removing world do the is commission kind in how the engine about guess, is kind that think guess, agents? that that more how I recruitment You with of splits? thinking you're you keeping where commission of Or there. change of how the else competitively? splits? to a in about of I about of incentives Does thinking a the about sort come

Robert Reffkin

on eliminated on if financial and a is. of two, no -- Monday it context, that we is no incentive we year. ago, our we would months policy, for and last Yes, of -- they we than any split we agent that can incentive one of to this so had bring the areas that in they one they that equity major keep We market, that that ability question. they talking any policy give -- expense, impact policy four that whatever as our were current agents. our given on split to -- way great better would If the had be for our the on that for And to started decided way, of

So go that's the but agreement, they then policy. to our

coming then to that, And we the so have go XX over the can had for And split incentives team to in for is company vast if the no policy commit and split, more our one -- better financial really week that, our for come year same And than about. We past of we policy. good preferential they which either a feel again, in. their or to to split people they that Compass one. majority already

a So times Early split all company. to better the positive. one that's data, but forced to

Matthew Bouley

secondly, that. can of timing of then guess of I cost guess, that, the you kind the are the the we math kind I P&L guess, EBITDA of reductions looking of to as just right, QX numbers, a implies through where and sort think that that? And just of piece within narrow at Maybe new loss I that presumably just kind outlook? bridge for if then guide the the into And can through of I'm I rolls look the and savings, zooming the run cost some year-over-year, all would,

Kristen Ankerbrandt

Sure.

reductions on QX in to today. losses call do And you we've that midpoint as we expect EBITDA said, some at discussing is, what see year. here's that would cost the benefit reflecting that So of in the exactly relative could of say, fact, last I would the we the been the narrow

expenses. plan the of we mentioned, of rate, to OpEx million of end Greg timing there, $XXX as relative run cost commissions and and remainder reduction to through the the savings LTM those excluding the a course September then the other the that's of savings implement good QX. chunk The So before cost of

be there So certainly factor the one that number timing will QX. the will in EBITDA drive

we to, growth a we for of revenue. appropriate other just also in you course, we market but the what outlook -- be wanted will of was thought business, an outlook, only The associated are with the piece, not view rate. And the our provide all

XXXX, that be So have focus in for out bringing of QX, the own heading that you'd your down ensuring all OpEx free market in 'XX our progress QX business. to of may all we on in translate view really rate making the that XXXX. XXXX, happen as a and are you Regardless, to run revenue is flow what positive into number the able coming the of with number goal into cash

Operator

with line Your next question from Nowak will Morgan come go of Brian Please ahead. the Stanley.

Brian Nowak

a have I couple.

you about at sources, reductions. the to, one Greg, And examples? give are you other where talked And us tech examples think a cetera. technology then et how already new through investment? platform the you've on company, all Just the first impact? these the on a the about timing revenue about what to I cost second evolving areas some are update going in cost should those unfortunately, cutbacks think, one, some And you the of any some of potentially Can make of lot mentioned ancillary Rob, of a being tech platform, you revenue start cuts? think the how we

Robert Reffkin

still Greg, I And the majority think end year. you for adjacent this we markets expect services, be one on pursuing by second I'll On perfect to of in do we're the mortgage. and the of it's the first.

a the the -- attach logical and senior I this of an of weekly, and implemented to on paused really title involved meet and and every one of working period not margin insurance. services. pursuing we're We've that drive week, leaders growth still group lot our is are attach And adjacent through for focused We go organic where a company real priority it's We time. I'm in M&A for just next home attach.

prepared timing We of will cost, you share to I but think low is given the publicly high but opportunity, we're Greg, the over environment, let And the next low I'll pause. another first the the don't profit current are cost, course right probably likely yet, contemplating take we very there question. a month. which

Greg Hart

and we're So in focus Robert two technology our reductions to on that mentioned revenue that the R&D the and on the areas have: those on are P& acquire and terms we service without isn't as do L of incentives, biggest existing to expense report. to call, base that we're agents, And the impacted. going of reflected marketing lines, we going reduction, so in the that ensure the sales levels reducing to agent our

the national out end-to-end believe in do this a delivery position in reasons R&D. to coming be is us our investment our we across in be platform that able a that puts we're base the to of of in with that able the rolling all to One position of to that moderate the weeks, agent

also In feel outlined our we reached addition, a on his recruiting approach, well, give recruit financial Robert of the incentives to them. the answer need prior on point reasons to to we've as don't maturity, in terms

an incentive We're not few incentives, doing Robert ago. seen that. or that a mentioned cash we've equity great and providing from results So weeks we're launched program

agents the business to to the And so new we've reinforces continue grow platform in our that for attract the company. our is built and to agents platform to best confidence to industry their the that that

Operator

Our with line will next question Oppenheimer. Jason come Helfstein from of the

Jason Helfstein

I'll guess I two. ask

about quarter-to-quarter, decline versus share high the X.X% at market kind was flat with on stock overall then, have real because more trends think did talk market of that, the of -- since in metrics. end to not this lag. connected trends new the the was a guess, are improved Was the estate? but kind So not I June, impacted And like sounds I it or you

share any it an out? then guidance? other update closing? kind mean, broadly they you're that on I can rates somewhat Has as give equity and can you online thinking without the you stay fully what And of kind us giving market stabilizes, been mortgage if guess, that of Greg, are just does the on opine forward to want Or product. of for just color you if maybe just, rolled So just where kind ability

Robert Reffkin

is our flat it's basis attributed questions, The was first the sequentially do you're flat and quarter-over-quarter share on XX points. has able So yes, the hit end to largely as Northern it also The buyer why market about we year-over-year to been has high high stock been have our the market. is California, there, generally, is profile not just end in more California, weighted where particularly market. towards only reason but -- fortunately, biggest the

so from their And basically mortgage the I from from difficult but based rates their stock got moving down. as some one, off we in June. of whammy, a double mortgage is in stock moving very also portfolio portfolios, as this shared up, well trends is earlier, . July, I market of rates as guess,

for does could look bottom it comp. like monthly However, be the July the year-over-year

We it's to we of But members into hope our note others. important markets stabilization hope of very putting market planning any have scenario. some in and that that seen and aren't

be And still XX% but X% large There's buyer still expect multi so definitely we flat have by -- growth X% everywhere are prices -- But and that low Days increasing. offers way said there's on -- they're into modestly the mostly to of there's assuming in down. challenged public We're They're full to no year, to longer before. markets. to they down good inventory. demand, are market -- down. like more markets. comparison, market a still this competitor XX% There's company down

or bottom X we're for comp, take the things on monthly July that looks be so of data let like And I'll the question. we're you but the not it the recent negative second are overall, putting our over not forecast. just X still we're basis, year-over-year a do Greg, just new But of but could the suggest on into weeks any And on month-over-month again, outlook. stabilizing. -- last the planning trends

Greg Hart

Yes.

the great a question, you. question. Thank it's On second

roll receive So documents the are remainder and within then ability transaction of different to will the in the live that of the our terms end steps of compliance and across regions offer regions and an the book number already forms September. e-signature consummate to of a and and in all a by out of platform transmit

we're go first Compass And contact close, which place so platform, sorry, be from to our will one agents in able all to excited for. on the contract very

Jason Helfstein

Kristen, kind to quick I the implied cash of flat free of in would for of around follow-up next year? flow factor that for revenue that down kind based the guide, assume using year If to just And model is kind ballpark? on guess. positive it a a the just fair expense I next bit comment about expenses Is play

Kristen Ankerbrandt

Yes. Jason, I think Greg's At positive. providing very not in Robert's as business. to conservative XXXX that's very free the being And point, for you we're flow say. planning here guidance comments, cash being in comments our comments as prudent, on see can this and focus beyond fair and my for we're we're

to that assumptions the the XXXX forward time. see you're there, we'll sort using how information So of XXXX providing to numbers we today. and look more getting on as your provided at information the appropriate But that I think I

Operator

line from Ryan Your next come will & McKeveny question Associates. of the Zelman with

Ryan McKeveny

but curious in basis of the And can is with of And any or why seen market of are markets. expansion industry curious, incentive kind market. I'm has So way an industry obviously pipeline the recruitment, on I you're slower retention been changes paused, the up approaching and we've housing just I parlaying is, on movements and part down within bit the I market? into the changes about macro recruitment thinking around other Robert, topic, outside recruitment retention a know the question there economic new so or what and ultimately, the count agent think historically, just ask flux just on on of existing a

potentially market intermediate let's term the how agent the it's ability pulls say, you're is near even count the feeling if industry keep So to for about, count just agent back? ultimately gauging down growing and

Robert Reffkin

we half the are So -- even of of it hiring industry, less the is the top approaching [indiscernible] hire And agent not I hiring GCI do noting the that I median XXX virtually more in -- industry. our for mid-tier industry, think they the $XX, is think the GCI. because than agents, the terms of but that's we're worth agents agents all that growth for count that just in we

to And hire professional so agents, challenged. not is we real the they are given the industry tend when is leave

And so industry nonprofessional expect things leading related departures I have us agents, get to wouldn't when to challenged.

In not to our to it and terms to of give in items more retention, by focus markets. the support us allows markets, new expanding

this you complaint that's expansion from year helps and in last it's can our experience retention. that And worth us? mode that agent positive are expansion past within more not noting -- big actually retention you So year. improved quarter-over-quarter, on is sequentially drive X% you're so or last than a this it when time the quarter It's where was hear why focusing this also of

there's incredibly unlike XXs. our strong. the the So above our principal of not off still in sign that lead retention retention based half top agents as a all competitors, just move or or no cultural of again, don't that the And we numbers our departures It's isn't cities move that top unlike include retire for reasons, support. industries quartile. -- people, altogether, competitors, are that And

in there very have should and sometimes doing And doing of financial many there's you stop go. recruiting, change is CEOs incentives. And a to other than what terms you great you a in time have it's said long so us no integrity downturn, before, offering the stopped And number. not sentiment high a

showed more always have number we incentives we offering. were retention than we strength our think that that have I us the -- strength

where real that we on. strong test to is need incentives don't in them hire enough And to to the platform so show this bring can we give a is

come. excited say criticisms I sentence the agents months and the only the that be of give financial over to only agents I'm people to weeks of company, major incentives. one last you them come because of eliminated think really see --

Ryan McKeveny

and might this or maybe a be bit as high-level well So Greg, for of but one. one a question, other you

there off market So these on more strategic agents, on some long-term to maybe that in a touch bit, do things let's their basis? the whether the areas on the with sellers keep that can outside any on of of to so of or giving time -- client the even guess, education platform you or buyers like training lean and in say, working agents in a have tech If thoughts cooling Just engaged areas or bit benefit with platform, that market, keep could a leaning current would with I the it's you are hands opportunity is more maybe adoption. some

Robert Reffkin

I was in Yes, recently best year, that We've one the of of earnings XXxXX. first the of that launch the call XXxXX, program. which happened that I to extended think the is now things coaching mentioned a

Core quarter. every Compass have We

coaching and success group a virtual called entire have in an a rallies program around marketplace. we customer We effort. marketplace, the this We're that created assistant launching

a is past grow hard what agent is technology what I agents to to is mentioned how that we on what I business in their the learn and them. learned how help is use think the And wants technology, happens we did trained to want before just to way way learn that they technology. we to so no

the most analysis, programs. of And An example so just of has a the stands early we we can success this Day. a our one months. year CMA CMA adoption it's tools for call market continued these a to continue we that see home. of recent launched, saw these comparative it valuation been all through of that We strong over

them and with collateral, that And tracker engagement. it. their CMA to overall Day is to a it around seen so value messages connects client that their the a on with business listings evaluation digital lot that, CMA of their to connects And client every top pipeline. have and it their of in each a our some our CMA And CRM the lead connects one marketing where and of and it to a of asking leads to a years we just one CMA and a to it surprise, send surprise, clients day, we're month to agents, create for take in

of the And more so we're example that's of and put that to effort we've some an going continue to the training behind. in, invested

Operator

go comes Our Ages the with ahead. Berenberg. next line question Justin of from Please

Justin Ages

take opportunity understand programs to that recruit First, this go on only you're you outlined to in to obviously to just share that continue view that aren't not agents? but the markets into some of markets. moving continue general, deeper new the as you've an and overall, I softer in But you environment in, or based do incentives

Robert Reffkin

absolutely. No, Yes.

to at top look objectives in market of the mentioned to call, And it gain three on continuing our the is a when share we're sequential by Like I the change in top MLS, the question California. by share market-by-market the we a As the in. largely that really flat markets positive earlier, one market trend. market we alluded driven being very was see in on basis

Justin Ages

And for OpEx the XXXX. exiting of then target understand I second, -- in kind

Kristen let's of you then went went if played more translate line? could other that On home out, laid the correctly, commissions -- prices Do the side, or and then where that the the number savings, value seems transaction have off out on down. transactions up leveled think to commission what it say, I if

Kristen Ankerbrandt

to nice it's talk you. Justin, So to

is, as that we're which think So would the -- we price think will I to we sure at the market the all, be it are agents as making for we productivity possible. seen much about for start delivering overall. look increases slow market, prices about of we down, really positive the have our all first way When ultimately

while had bit less little between just buyers given a disconnect with and mortgage for a sellers' think here, I expectations are. purchasing price you've a power rates in coming where of

right you take time see over to So transactions going going time, find expect some incremental to I the is forward. market the I but market to it for the should equilibrium, think, in think

that best see sellers platform last have can the In tougher transactions and terms seen are their best numbers housing market, very and even paying deliver to to Compass extraordinary commission the that it buyers slightly the that attribute over and we rate they up for really to to on the tick to buyers and it in more rates, agents and these the run able of we are as And the quarter. actually a But model. times. agents, results you relates that drives very commission are agents tough just I that, your by sellers mean in through you when commission

our great see and to our something in for see agents for us great So that's results that's been been to for their businesses. own

Operator

no at management back closing the questions I'll any turn remarks. over time. further We have to conference this for

Kristen Ankerbrandt

you for the to Thank over to speaking you time the forward the We opportunity update you. on Thank to your and coming appreciate today. look weeks. business all you

Robert Reffkin

you. Thank

Operator

conclude that will Ladies call. Thank today's you all and for gentlemen, joining.

disconnect. You may now

Compass (COMP) 16 Aug 222022 Q2 Earnings call transcript