Real estate brokerage giant, Compass, has filed the disclosure of its IPO with the Securities & Exchange Commission. The filing reported that the company saw growth amidst the struggles brought on by the COVID crisis in 2020. In fact, Compass claims its revenue spiked 56%. Specifically, its revenue hit $3.7 billion, but the brokerage saw an annual loss of $270 million. Still an improvement of its 2019 numbers.
In 2020, Compass laid off 15% of its staff in response to the beginning of the loss it saw during the pandemic. However, with revenue up, Co-Founder Robert Refkin has high hopes for the coming year:
“We have accomplished a great deal in our first eight years. But I assure you: we are just getting started.”
With backing from SoftBank, Compass has held aggressive initiatives to target agents at rival companies and its valuation has jumped to $4.6 billion following a $370 million funding round in 2019. With the looming IPO, Compass is expected to hit an even higher valuation.
With this IPO, Compass will join a number of other successful startups within the real estate tech sector that have gone public within the last year, including Airbnb, Opendoor, and Snowflake.