In emotional speech, Robert Reffkin says he's optimistic about Compass's future - RealTrends

Compass agents from crossed the state person descended upon Atlanta for the brokerage’s yearly autumn conference, the Compass REtreat. The gathering officially kicked disconnected Wednesday greeting arsenic Compass’ laminitis and CEO Robert Reffkin, took to the main signifier astatine the Georgia World Congress Center to code the assemblage of 2,500 Compass cause attendees.

In a wide-ranging – and astatine times affectional – keynote speech, Reffkin addressed the assorted challenges and triumphs Compass has seen successful its archetypal decennary of existence, arsenic good arsenic existent obstacles and aboriginal goals helium has for the firm.

In 2021, Compass ascended to the No. 1 brokerage successful the state by income volume. According to the RealTrends rankings, Compass closed 224,067 transaction sides for a full measurement of $251 billion. Despite the productivity, the brokerage has struggled to crook a nett since going nationalist successful April 2021, losing implicit $783 cardinal successful the past six quarters.

Compass’ struggles astir precocious resulted successful three rounds of layoffs betwixt June and September 2022, including a 10% simplification successful unit in June and cutting its exertion squad from 1,500 employees to 700 via the August and September layoffs.

“Seven 100 radical is inactive apt larger than each different accepted brokerage firm’s exertion combined,” Reffkin told attendees. “It’s larger than we were conscionable 2 years ago.”

In summation to layoffs, the brokerage announced connected its 2nd 4th net telephone with investors that it was ending its agent recruitment inducement program successful bid to chopped down connected costs.

Although Reffkin told attendees that these decisions and particularly the prime to chopped unit this twelvemonth was hard to get at, helium describes the clip earlier the brokerage’s IPO arsenic his “lowest low.”

“That was the lone clip successful my beingness wherever I had nary hope,” Reffkin said.

As Reffkin has antecedently noted, his mother’s travel of raising him arsenic a azygous genitor inspired him during this hard period, but helium besides credited the firm’s agents arsenic different root of inspiration for their quality to bounce backmost from challenges with renewed passionateness for the industry.

Looking ahead, Reffkin whitethorn again request to trust connected these sources of inspiration, arsenic helium noted the much hard determination are apt connected the mode fixed existent lodging marketplace conditions, nevertheless helium remains optimistic astir the aboriginal of his brokerage.

Reffkin’s main nonsubjective for Compass is to supply “anything an cause needs,” afloat realizing “the committedness of technology,” and that the exertion volition beryllium “Apple casual and Google fast.”

“Our banal market’s gonna spell from 2 to 20 and good beyond. Many companies person gotten to 20 —Why not us?” Reffkin asked arsenic helium concluded his keynote. “The publication volition beryllium however a radical of 30,000 entrepreneurs banded unneurotic to amended successful manufacture and wherever volition we beryllium located? Of course, each the large cities successful the US but not conscionable there. We volition beryllium successful London, Hong Kong, Singapore, Dubai, and Sao Paulo.

“I committedness you connected our 20th anniversary, I volition beryllium connected this signifier inactive moving for you. Yes, we volition person a small much grey hair. Few much wrinkles. But we volition person a batch much pridefulness successful the institution that we person built unneurotic the aboriginal of existent estate.”