Compass Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chris Kuntarich - UBS Equities - Analyst : Great. Thanks for taking the question. Just going -- let's start on the 1Q revenue. Could you just help us think about what revenue, or what was revenue growth tracking to ahead of the disruption in the latter half of March? And then as we think about the 2Q guide, what is revenue growth tracking in April?

Question: Chris Kuntarich - UBS Equities - Analyst : That's helpful. As we think about the disruption in the back half of March, my sense is that what you're talking about is people are putting themselves on pause when they're planning on completing a home purchase. Are you seeing any of those purchases? Like, how should we be thinking about the share of purchases that were completed so far through April? And are there other case studies to look back when there were points of significant market disruption here when a part of a month or a full month has been disrupted here? How long it typically takes for some of those transactions to end up getting completed? Thanks.

Question: Jason Helfstein - Oppenheimer & Co., Inc. - Analyst : Hi, this is [Steve Holman] on for Jason. So apologies if this has been asked already as we're juggling several calls at once. Could you just, if possible, level set for investors what's the latest with NAR's clear cooperation policy? And is your sort of legal standing, for lack of a better term, of the three phased marketing strategy still intact?

Question: Bernie McTernan - Needham & Company - Analyst : Great. Thanks for taking the question. And Robert, just to follow-up on that. So I get the point that 3-Phased Marketing is still a priority, but are you okay with your houses or with inventory not being available on Zillow? Or just what the response has been from agents? Just trying to -- as as things are still being worked out in the industry, what's happening real time?

Question: Bernie McTernan - Needham & Company - Analyst : Got it. Understood. And post these, these NAR changes, has there been any change in the organic recruiting effort for the for the company? I'm assuming that 3-Phased Marketing was a was a big push and not sure if and just wanted to see if agents are still responding to that value proposition.

Question: Bernie McTernan - Needham & Company - Analyst : Understood. And one more, if I could, just a quick one, the clarification on OpEx. Claudia, I know you mentioned how seasonality 2Q is normally higher than 3Q. Should two q be that number that we can kind of run rate for the rest of the year? Should we expect an additional step up from seasonality in the second half Thank you.

Question: Michael Ng - Goldman Sachs - Analyst : Good afternoon. Thank you very much for the questions. First, I wanted to ask about the principal agents and agent recruitment. I certainly appreciate the disclosures around the gross adds as a result of Christie's and the organic adds. I was wondering if you could just talk a little bit about churn trends in the quarter and if there's anything unusual that you would point to that may have caused churn in the quarter whether the environment or the deal itself? And then second, one for Robert. Just on the 3-Phased Marketing Strategy, as you roll this out over the next couple of months and year, I was wondering if you could talk a little bit about what your yardstick for success of the strategy is, whether that's agent recruitment or Compass market share gains. Would just love to hear a little bit more about that. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 9:00PM, COMP.N - Q1 2025 Compass Inc Earnings Call

Question: Elizabeth Langan - Barclays - Analyst : Hi. Are you guys able to hear me?

Question: Elizabeth Langan - Barclays - Analyst : Okay. Great. Thank you very much. This is Elizabeth on for Matt today. I did have a couple questions actually about the private exclusive listings. I know that been a topic on the call so far, but I was wondering if you could talk about how agents are actually using it. Are you seeing people actually get those offers while they're marketing it privately? Or are you still seeing people migrate to the public listings after going through that 3-Phased Marketing?

Question: Elizabeth Langan - Barclays - Analyst : Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 9:00PM, COMP.N - Q1 2025 Compass Inc Earnings Call

Question: Elizabeth Langan - Barclays - Analyst : Yes, I did have a follow-up. I wanted to touch on market share. Obviously, you've seen it move higher into this quarter. But in the context of M&A and expanding your platform through transactions, I guess, how are you thinking about it given the context of today's market? Are you seeing interesting things come up or reasonable pricing just given all of the uncertainty or if things cooled down a little bit?