Bowflex (BFXXQ) 10 Aug 212021 Q2 Earnings call transcript

Good day and welcome to the Compass Second Quarter 2021 Earnings Conference Call. My name is Catherine and I will be your conference operator today. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Ben Barrett, Vice President of Investor Relations, you may begin your conference.

you for thank quarter Compass' and call. earnings afternoon to joining everyone second Good our will on actual operations of review Today's financials and items basis. of address certain are non-GAAP presented a Compass continuing the reconciliations from and financing included the quarter at shareholder GAAP our guidance of back as year-to-date non-GAAP for letter. as measures The both between the second the our well are and earnings release be SEC including the and on future other and XX-Q COVID-XX predicting financial and materially the cite course which posed see from reflects forward-looking housing pandemic Compass' market Form performance, our which difficulty its of view in in also performance filings uncertainties may Please actual and statements impact by future different we the the our for the disclosure current that on reasons our economy. global

and us Kristen more will Joining Officer; a of over Executive Compass' will detail. Officer. Reffkin, turn will outlook strategy Robert I like the cover Financial With quarter financial Robert to discussion today and to overview results provide call in would the Founder Chief Chairman and Robert. and then be a Ankerbrandt, brief of Kristen Chief that our Compass' and Compass'

the thanks call. you, for Thank Ben to everyone and joining

we EBITDA. and as strongest We record able can about transactions, position deliver to second quarter, today revenue, quarter in ever transaction work to say adjusted have been a I of we results to our hard back in results. in agents' we terms confidently value, to are company. are the gross were excited Compass with the you throughout Thanks be talk and our and employees'

our outperformance, our agents our growing industry quarters, outperformed increase the a tailwind, market better and trailing we which up look we revenue transaction certainly The first expenses a from their revenue agent almost ongoing commission for having increased adjusted impact previously we the we year-over-year. the strong of improvement to transaction XX%. of side, doubled in of transaction generated XXX% if quarter, year-over-year, a XXX primarily EBITDA. $XX the financial EBITDA than market, we million. second housing to compared now of $XX the record wide driven In growth, share base. a adjusted four and the share the delivered counts industry the was growth year an our XX other year strength for than nearly the market at accelerant point a fiscal that full from $X of EBITDA to in we And the by year the million basis up percentage Due the prior basis on earlier was we points Compass XXXX, Adjusted agents' quarterly growth be combination saw the billion, positive quarter national and quarter. XXX% is our basis as Year-over-year X.X%, was by On our we'll by is our but margin. transaction-related improved housing of believe X.X% as to profitable expected. business as Non-GAAP platform all-time an

XXX% in $XX year-over-year. agents' completed was XXX% and The closed This particularly number is platform. XX% quarter, transaction are of the of XX% the On Compass combination compared on to a $X.X year-over-year. of average, was GTV the more prices agents the industry We productive principal and principal our million, record in our financial new record. by that a to on billion success excited home making driven agents XX%. each outperformance deals this up X.X year-over-year in per up quarter, drove GTV the agent of increase growth transactions up

record prior XX,XXX the second XX,XXX agents over transactions. in transactions the on Our beat Compass our and over platform by recorded we quarter

agents X.X% market share. over X% real Our in of US, represent agents estate but the industry's up make roughly of the

the the of This prior and value than is the is feel count over principal as retention customers to getting This QX to principal XX%. our agent higher quarter was from increased are that us, higher say, important primary prior rates to our above agent am XX,XXX than that quarter, retention the continue with our I in pleased our industry year. retention indicator particularly the they platform. XXXX to at lead

half of have increases Minneapolis to first half market. of the of the expand to rate new of expected our bringing in positioned of market we broader markets market the XX XXXX second are in will we including U.S. opportunity expansion launched XX% our total And saw end slow continue course count into well market, XX, launches of to where of in year. the the footprint that an the upper-and-mid-tier Indianapolis, We the the for outpaced We back upper year. is throughout covering new XQ in originally the as the price to the The accelerate planned population. and was markets half approximately year Charlotte

is of to The firms end-to-end integrated our of has larger to the, end-to-end necessary see the the it Compass at unique the years. over more service move many that you powers the the above-industry client making will one long-term incumbents. size sustainable am to an our United us are powers I than sustainable Now, strategy a first platform is agents our their Compass our to creating proud, investments No agents. advantage to adjacent platform way has brokerage of the approach much know entirety traditional nature financial technology invested this the the and States. and seven of needs, see our of facilitate technology in a real of estate you for platform fastest-growing transaction a empower for be financial relative in brokerage. services how the their I how past brokerage. And creating number in a to in let's entirety to that average because our brokerage us as others with made platform opportunity advantage Overtime, relative made possible, team industry. and attach, Compass But just

With and of that Compass brokerage product engineering by larger team is any than the firm. consisting far more has traditional X,XXX technology a than people team,

with in platform, competitive the to any summer, Rate. contact, transaction built code on pay to them software. don't advantage to-date, services Given the transaction into next first the tools be an them be Unlike by QX, approach closing other. real company we base company place, Compass, From log in transaction. prevent to overtime like, technology already the traditional to JV both, management a offering integrated marketing Title mobile value-added Escrow. first the integrated platform, the our And gives to a property agents one fully that to management, adjacent And brokerages easily search property multiple through and that our to that to for speak connecting and running allow sellers, We services more on expect value-added platform of full attach have full as an will and in the Guaranteed to announced services across success we traditional offer to building having mortgage such our disconnected experience, client estate a of each integrating without single buyers facilitate and experience. their process provide the will with workflow transaction include or to to services Compass' connected third-party adjacent transaction third-party a from to collection CRM, for to natural for web. transaction in

And positioning to real property and estate see property traditional more have to a that are client adjacent we marketing facilitating real also addition centralized of one business through to more estate their Digital videos, spend In spend home and sign the make photography, and by listing, where some types XD and and buyers these them of platform. are platform services Compass the spend. security can Compass on programs, all past and of home gifting share convenient to agents. these we Currently, insurance, agents agent warranty, for many clear of uniquely our open to of including monetizing adjacent in dozens production, a home dollars renderings, examples path billions moving ads, agents clients spend, location, brochures, services. enabled everything of additional client having access type more are cost-effective sellers seeking spend, access opportunities, our third-parties services, for like of easier house just services by

be average, these per incumbents. multiples above relative With services, the industry sustainable financial by creating incremental will transaction the advantage addition TAM the potential provided Compass' of value-added to a revenue

mentioned, last mortgage I Rate. with OriginPoint JV our announced Guaranteed we As month

expertise our are agents, best-in-class We and OriginPoint. to high-quality bring to technological transaction excited funnel

XXXX. We for or JV an averages for transactions to basis in in this rate be Our XXXX. in year expand states attach and years, nationwide eligible the year-end in business EBITDA above goal multiple by profitability expected adjusted with to five at an industry of three on is aim

are Turning and believe fundamentals is while home, homebuyers future. among just not an incredibly only pandemic. about strength housing see Consumer to strong of market. remains are million near when millions on in you but XX buyers looking. still a historic have meaning X.X Remember, market. already one the there aftereffect This we We interest demand chosen, are Yes, the being in the continued lows. hear more moved, offers Americans high, rates the remain put nine is

demand has The work people the ever US the work of markets, pent-up seven and play the this a from and more out interaction, a of resulted course, we've -- demand and the real home-buying are us is optimistic it the to and international like using expectations that on from buyers industry, in utilize best for agents better want hybrid Compass maybe more to environments Continued to to the better sustain is lifestyle. next. across from the platform, including have focus continue key This primary help America, service, Canada, our and than are impact optimize many shift. unable same new realize now. it’s Europe food the may outlook in has COVID potential. their inception. their high more before the further from them entering our years homes of many helps is best engineering York media of leads to transform COVID demand. look New utilize homes technology of In our entrepreneurial buyer. travel over lifestyle. which all permanent millennials and Customers to estate, All agents like And acceleration digital significant. of can be and, their lasting for to seen help of to and their significant company that to In in experience years, $XXX Latin client been level result delivery for places in said, the than be COVID spur best industries, estate. market continuing than will The technology. Asia brokerage demand looks that residential Compass' the buyers the real which Moreover, year the investments, technology housing million the And agents winners and hybrid in unique That streaming, this lead to which support work those more be firms Florida people and will that year more suited digital will like been California, being the who can since adoption, segment use their in

from seen agents adoption to industry technology and has transactions digital lead XX our for to with Kristen continually XX%. the it This have me on serve am the in end that, to XXXX, per positioned each in Compass use Compass I use say financials how once quarter in we continue of and years, grow estate, over results. to help continued let secular floor to pleased to which number place infancy, one in the to who in this just XXXX XXXX am XX company XXXX over reflecting going is at to more where am felt confident detail. want agent, again, a last still With and to XX more industry. real I more with through is to best in and increased and XH answer technology, how software its back turn go trend the that further I agents and clients in relative to XX a transactions This to to XX,XXX worked at increase hard to to year. going for XH that clients, in XXXX empower never I create I've the best With the can been the has people years Compass the agents is Compass the be more principal average performance can complete each now increase Q&A. hand year I'll business. in so incredible to such to thankful quality Kristen, of that transactions be the But over their for they making Over the

excited I'm path second to quarter also for a share our be of I'm to into today bit the Robert. going to Compass' adjusted profitability remainder Thanks, go updated EBITDA and some provide guidance to here the year. deeper results.

national an $XX Transactions share generated in, of the to outstanding grew $XXX Revenue the board. average how of year-over-year XX%. reiterating our million our that's X.X%. dive market want to million industry EBITDA, XXX%, results by nearly improvement compared Before were adjusted We start I we to XXX%. of year-over-year. QX doubled across We grew and

Our grew over generated cash We and launched XX of of average XX%. untapped million have $XX and an million We we free revolver. agents markets. new cash million $XXX principal flow, $XXX

our and and persistence exceeded momentum adjusted sheet financial well coming EBITDA. our ahead these So strength, guidance that expectations both in breadth is results on of our balance revenue The healthy. of showed

results XX Our adjusted in months. bringing quarter. XX,XXX truly quarter results a on our more $XX closed extraordinary armed EBITDA EBITDA outsized. over outsized better than million these positive quarter, which tech were transactions our last agents, coming with than billion, Revenue XXX lines, bottom the and the in delivered over transactions in a us million the we next top platform the Adjusted $XX best and $X.XX at And $XXX per equates to of record day. profitability was both to million was

a most the We in growth QX XXXX beyond. of our half We revenue have now strength quarter and expect by COVID. of we will saw estate remainder lot negatively of XXXX, prior will strength the we that in year, the that impacted but the harder underlying back lapped to compared in continued business, we XXXX real XX% comps believe the but the through market see persist residential of get

in quarters. demand strength of be the market. IPO, pointing outperformed to Continued low continued simply the by supply, several the grown market business the ahead our current strong cannot we Since housing and the met have for expectations

expected, anticipated in in EBITDA at came elevated result, of originally previously second we XXXX. business quarter combination adjusted has to significantly following to expense time in in profitability while structural operate generated sooner adjusted and than We profitability The continued we to a growth sustainable profitability As a lower the the that revenues more base accelerated than communicated. EBITDA saw as achieve QX we line stronger our than COVID. expected

$X.XX we improvement We're be annual $X.XX our provided EBITDA the significant billion in our to quarter a $X.X rate profitable growth reflects our revenue prior call, guidance. adjusted revised On million a year-over-year Given year midpoint expect the year of expect of earnings increase our billion we We now of in an guidance. a strong to XX% on outlook, full guidance. $X.XX basis XX% and now of our to in for to last XXXX. compared to $XXX an revenue billion full of revenue. to XXXX report at This rate our happy growth guidance billion

million $XXX of to expect million million. negative full $XX loss $XXX prior of and to our guidance EBITDA $XX midpoint. EBITDA improvement reflects $XXX $XXX $XX for adjusted guidance the a million improvement to million year of to X% an was a We adjusted XXXX. loss a of compared at This million prior compared margin loss Our now million of and

third the for expect to – billion. we $X.XX July of in billion so the expect growth rather, quarter this our we year, At activity implies third year-over-year and healthy in midpoint, far. seen revenue the August of $X.XX We've markets For XX%.

the generated due of COVID. unusual For reflect XXXX this QX, quarter, CAGR we growth magnified growth and in year-over-year To and in of EBITDA saw in the in the seasonality and In in revenue year the $X.XX that, be for the expect XXX% million. we prior was to was quarter to looked to loss weak These mind traction XX%, revenue at we we we rate to billion comparison third breakeven normalize was in XXXX. adjusted from continued strong. The a similar second the QX. growth a expect two-year we QX XXXX, CAGR two-year Keep saw for trend by two-year business our core services. CAGRs adjacent $XX early

than We of revenue in half did half. the expect first we to second year generate the in the more

outlook from combined increase opted markets in there has market business drive to QX in year. in back with is with confidence outperformance count of strong us XX long-term quarter. per half of pace make that our quarter markets to our QX to and new last the into given to investments We Growing of future XX our just the the visibility two profitability. in an XX versus typical Our the our reflects cost associated XX% launch

are confidence sustainable our that outperformance to outperformance building and long-term high-margin continue in by There platform, drive and in adjusted market three three These have than sooner it our states to which possible EBITDA technology year-over-year seven drive investments: achieve are the profitability. X.X% to Title investment we I and in new to agents services we made we relative These the made our adjacent positive sustainable, by And launching as markets, example. business, quarter expanding this double industry. reasons XXXX. drive share profitability adjacent nearly in will an launch is can investing invest expand We proprietary new to Prior Escrow XXXX. tech investments also cover services to year will decision our what the planned. mortgage tech year-end drives a Compass' to to

our agents, business First, done consistently. scale dependent on is to this recruiting successful transactions how we their and at retaining agents are ability most have the growing and we

successfully our our we transaction count Second, should adjacent are adjusted mortgage steepen as services continues growing adjacent transaction EBITDA curve in business the our including services to JV. Growth high-margin in grow. per

Third, markets profitability markets see the profitability share in we success our we the that on a to demonstrated market and have based driving mature. path seen as we serve scaling in clear

ability of points margin a detailed results. our of been commitment with letter, on we with drive having expand The EBITDA this team provides We years the to in XXXX. market-level expect time. now consistent first have services markets markets base are for business show, employees and and that share achieve agents full these markets launched market-level adjacent a positive grow and half the hard operating been share can Early in thanks expansion unprofitable market-level XXXX and which different confidence with our share investment market the third agent for importantly, proven operational their had with that to in been our results XXXX and our roughly and number across launched of positive to adjusted our consistently market best all we in, XXXX, the our has possible. X%, we and As to continue profitability years expectations. profitability remarkably by local ever dramatically operational markets Compass margin across across shareholder since a still markets financial The that price Most XX% sized scaled year launched full performing expect in norms. But We've and XXXX. for raised to their our profitability years. strong The reached for to on in deliver in these three Compass. seven scale of sustainable amazing a combination seven start our our same markets in within is of double-digit performance MLS average to another in phase. in were launch. fantastic line to and markets indications our All transactions to us of this guidance and made work sustainable those second year, quarter these market various to geographies of the trends We over markets then, three off achieved

to happy your with that questions. Now we're take

question, first please? Operator,

from Morgan Our comes first Brian the question Nowak Stanley. of with line

Thanks Hi. This Alex Wong much question. the Brian. for is for so on taking

maybe profitability. in tech drop-through markets? terms maybe new out impressive. either XX% on help principal maybe talking really of just what think are that's second the think talked the that on pull-forward number by quarter, parse And you're more the you sort revenue EBITDA I And agent how ancillary sustainable do parse that what's that Can versus the one in three year. was forward? areas of which about added. incremental First of existing new Kristen, assumes and driving in agents Maybe question guidance going of the transactions services leading and roughly around new markets? the pushing X.X markets Can about of Robert, you out a and you is you. which terms new the ones you Thank per

Great.

I'll with then number the how pass Kristen. X.X to I'll So, of on driver about highlighting start and that

We've principal industry XX% consistent consistently, going agent been agents it not our this this for past quarter, outperforming at versus transactions XX%. Okay. -- very in And over prior an average the years. growth quarter quarter, many this market. the it's was and But the just seen

number and to about that in agent year at per business two scale. past seeing XXXX to the at average geographies that data on growing -- XXXX of XXXX top number in is where the you're so, that's impact years. is gets XXXX the then five across that across XX% increased -- their family business money be to unique goal their is we're to -- top and that are life different talent grow now people And their all results company industries their subsequent insights back And to get. what in of on many, technology we've more agents then here these and where cohort their one Compass family bring unique the of grow transactions you of it and now a the have And per of to all focused helping you X,XXX-person between across talked and all that to when on agent of XXXX of have XX% time to their company the help this year over from we're a business further larger from And better and further a many quality and of year more years agents bringing to that the support goal. with their team

happy two to your talk I'm And to other questions.

So launched in in QX, new we that terms points in additions we agent of we saw as QX the quarter. markets different XX throughout mentioned, at the

into expansion see markets have ensuring new that have are launch in you our as new have agents of team And we're quarter those recruiting do those launch any markets. our where who that those on bringing we all markets. base. working salespeople team new our markets. we throughout we're sales In the additions we the focused markets generally, launching, So quarter, to we announcements is across But

markets So, I markets. our different existing ability we markets the terms our And the would new any in unusual it's at to we between or anything either split look say, agents different recruit those our existing haven't markets. seen in -- adds, anything new of really or and new as

QX that highlighted. launched I we is as we And we question, the your of first were back And XX of three back terms services areas in markets last that third a driving in really and there mostly in related at the of as increase are the the half QX, the those few spend there And the third launched look really the small in half driving in other that three The in markets expansion. the then well. year, spend remaining another there a third. those of are is investment the year. adjacent is items to about although incremental In tech

Great, thanks.

comes Our Mike question of line Goldman Ng from next Sachs. the with

will you a Thank very was launches. much for of improvement to for XXXX talk adjacent that drivers key the you. margin market-level afternoon. services C&O you that detail or helpful question. time? margins Thank how that little see Is margin Good the primarily there bit over leverage it drive those about Any and instance? helpful. incredibly Would time for attached the over expenses It be really Hey. the

enjoyed Sure. Well, you disclosure. the glad new

over profitability we're agents we and launch share and have about the don't we three building to And a in these further. of on already are year new level. get and to and where it, the first from market takes really a of market as profitability talked the have at presence, invest For focused major can a build market typically markets. launch, major operations. We our market those double-digit markets generally years And strong and year we we in agent I've the to generally transaction adding from ahead revenue out cross a expand to in third base as which second

adjacent all driving that little markets was within showed that that At you across there categories. the at was services saw. in data what's launched it look is you the literally we numbers XXXX, really XXXX. cost leveraged specific And the in As that no reflected various points -- were to

Probably come. and also noting of phase three at investment some that within half worth markets to years. are still our moving opportunity all the point in profitability to the So next roughly is they're

even So growth and for that we within have there's launched of opportunities the markets lot a profitability. already additional

Great. Thanks Kristen.

with Jason comes the Helfstein line question next from of Oppenheimer. Your

all work detail. guess the just direction. the a help Maybe in right little more of I Well, key us understand metrics

Maybe down? peak X.X how to also at Kind we about of you think we X.X. saw more? think explain a efficiency. it productivity was I in come year-over-year this basis why transaction So, about that you saw a of that revenue. think just that I on also kind marketing talk very percent in a bit -- Do a a as stay And is commission need of obviously and nice should gains of kind agent then little forward? this down. Maybe going decline on that level? Does

fluctuations in very talk will other I'll in to was Kristen line items. agent in year XXXX but and on we're Look XXXX; -- be productivity pass year-over-year. increase XX XX. two talk agent about in trend the about per Remember the productivity that the -- it XX quarter-to-quarter we of Maybe productivity confident may agent XXXX; transactions the to there

that So, ongoing have And the looking we help time and because them into provide is feel very We're if agents again at grow confident that able sure that's in helping business tools over more bring will right. today clear we are making productive agents. that out just that productivity be number an up and that into the grow time. agent we're And to anything agents. Compass building insight for over their going we that be not constantly to definitely our can everything there

Jason, I'm and other. your through to happy talk And on commissions question

So, saw see year-over-year. and year-over-year. points XXX percentage revenue we improvement a trend of improve as similar QX we in And where a an basis basis we saw other commissions did point XX

did margin structure focusing his in as three post the better of economics that we to we the York continue think comments; COVID then and more Compass. we even Robert in this first, our of improving international is New expansion the market recovery And things: reenter as quarter. buyers which will City the mentioned markets than mature; attractive primarily result have this where So been is our agent cohorts as

related greater XXX price was principal that some average prioritize first the -- in so line far have that increases. in saw line we We saw basis see see leverage to are costs -- as the categories. the all it roll a that sales from expansion, given When P&L. and financials. do so, that and agents as all of of a of and to other some by offset other, on big across marketing were really occupancy things leverage we really And through We for as it costs touched you're with that mean, number thrilled economies couple along the category. of with comes sales and and entire associated those commissions fixed down essentially of markets came is chunk marketing we the we scale About that operating starting points one in benefit but I and to

operating leverage outsized line. in the drove what that's so that And

Thank you.

comes with Our the next Barclays. line question Ross from of Sandler

Hi, guys.

new disclosure on question. data then other follow-up that a and market Just one

the the markets it is playing was first to sooner color because markets Compass in adjacencies flipping in back dozen the so Any great. that's -- to looks couple or obviously than point happening of like EBITDA-positive? your day. in on role compared years or So is today over the data those And Anywhere maybe breakeven of that new the last

you quicker just can lot question? guess markets get a on the to question. new And So high-level I a these is breakeven then

the that high market seeing you guys end operate, color moving strong you're in across versus if board. or to of things when agents prop we've in Any the Thanks cool to the little where one kind seen? platforms other from your much recruit not So start the a just to higher softening same value a softening the we're bit? market at some but as on Is ability the a Compass off agents for lot.

from to you. hear Good All right, Ross.

we playbook, continued launching have these is expansion The profitability but over market-level at In cohort newest of, markets terms -- have to sort XXXX one really the that it better we've time. we since then. reflects, evolve just our of gotten

space. of time office role see Anywhere are creates in cohorts came market XXXX And We a that's doesn't we Compass did to those when we Essentially coming in plays capacity in markets whole the require that before of things. relative a it to profitability that. incremental the host that launched that from the -- line terms XXXX. associated to an improvement

really there. services certainly numbers. a not those Adjacent So does that's factor impact

from We come. are level in adjacent profitability services is a of new opportunity to market a most perspective on the so that

our healthy plan of we pretty as by escrow our to title escrow reaching expansion the we've XXXX. a for across all markets have catalyst title for and will be potentially of got continue end all by course this mortgage That markets and to want operational of of So even another profitability across and and roll-out mortgage we year quicker.

our I throughout But cools And does cool, have again business about to housing market the very seeing we're if happens what it's if that a think on what market your has many positive performed at past because successfully question Compass that growth outlook with different a the on very XX%. the large at market. we built have market we buffer a second a we of you this transactions have transaction it local And when environments, versus the consistently very on particularly outgrown market at quarter level. growth at top the the of our outperformed market look XXX% industry have and

help unanticipated So agents. even to time are us of down really, allow if is Compass. there talk when new there we their That market, day sales team. time will But which enterprise the consequences have it to When the on companies. have is busy more really flat aggressively. it talk grow to market they're and said or decline buffer that needs their focused don't things one just conversations in a slowing family The slow not they easier our a makes things are still meeting have and to to with two having after to significant client enough in agents

or for the The second growth. looking slows for is when their that. down business answer is goes they're And Compass

less growth. firms While different of when on for to business. all things charging where the that we are focused That's and how help in split kinds result a answer of the brokerage create again of best grow focused ways uniquely on to lot we're more and value them And pie are how is energy the slow agents their lies. for Operator…. and down of our

from comes of Mayank the Tandon question next Needham. Your line with

And rates? you the What's of guidance? they then the forward? in around expect principal bit growth, your of touched do granularity terms But provide underlying a or clarity on on a productivity question. the guide Will little your the guide, response on commission this XQ year? in you these the concrete a drivers you to also think, previous year for half be maybe over Congrats in more back embedded I average sort going evening. or any could Kristen, could Good expectations quarter. bit agents levels, fluctuation you. the you the and little full on Thank resilient of the -- any

were lower than half, will a will needless growth expect half guidance second the QX. In grow we second generate the we in lower in of for year-over-year, Well, up strength first Sure. to in in to estate QX, half say $X.XX the the price XXX%. market. of bring did more revenue $X.XX We because in very of pleased billion into rate year. market. And revenue billion prices back real our the reflecting And the but to provided we that with actually did at continued year QX buyers it this than we the expect is good

market rates, also buyers continue of were in trends overpaying prices just the Some the to pricing market. as of commission of a but the for out loosening also the of we I talked year-over-year, supply better comes QX fear dropped changes given going. to don't will grow Transactions, where expect there. partially When significant result any expect result about, the in of it a we as

that actually the focused We -- line are expect to with rates over are that business, several for as in we've on And pretty the most the thinking last we the transactions. levels commission through remain for really seen quarters we steady.

to our attach on platform, transactions we more the adjacent the opportunities So more services. have

the your the a That's of you the targets? benefits hit the On Thank see OpEx line. the as model, leverage OpEx on but of most back not where to see targets, do And in you. Where play out? side, only the the just potential of you sort year profitability really most half this XXXX to do sort mentioned helpful scale as quick in color. you follow-up for then

of won't guidance, where leverage deeper I level of a we in that's line, XXXX of today and see expense we will a in it. and other detail most We that, think the would see place but about it the other how into on commissions the categories. that's The really across lot is go probably Sure. all going in terms

so you much. Thank it. Got

next of line the comes Your from Akaash Agarwal with UBS. question

that you puts question. Thank so give was the could JV. super be color then the and about I economics rolling the profitability in the within JV Thank any if you you Hi. wondering out talk the of guys getting much if well takes on would mortgage And guys more could for helpful. and as you. more to

be that there. get and successful for market Guaranteed It's Well, view experienced a TAM. are this extension for expertise is quickly an We really look, opportunity a our is big And of our month mortgage. us. Guaranteed we to a it's is business. billion ago. It's to excited with it a with us derisks Rate to Rate about $XX and to our operational natural really the JV partner ability grow -- also about announced business core mortgage ultimately

with directly even at drive result attach line As we for a -- think than our in we be able look as do integrate to we being the to could able that to better platform. be mortgage ahead expect And the rates of should industry. into we levels offering we

have the course, Of important our most to compelling agents that their are to clients. element is recommend one there offering, a to proud

And right so on are that really now. we focused

getting the are we're working set JV up, set we get as the warehouse the for addition, In to up. line operations

originate to hope revenue, and to lot lot of our offering to very a Ultimately, pursuing regulatory to I mortgage contributor all with of we going But are XXXX. mortgage cover financially. approvals. with think our by And markets within end We a hope various year first of the before our of the has be small mortgage but of potential. end one potential XXXX, long-term it's a the

Great. Thank you.

please. question final Operator,

sir. Yes,

the Gaudioso Your comes last from of Matthew line Compass with Point. question

end-to-end good question. you for Hey, first afternoon, next mentioned in and having the taking thanks summer. Robert, the platform place

wondering pieces the escrow. maybe develop title Just expanding traditional following then mortgage there? adjacent remaining beyond and what to And to are the services up just on some

not able an those capture how Thanks. platform might opportunity to? that services traditional provide wondering might maybe Compass' be to Just brokerages

have disconnected may Robert think I unfortunately. been

is operator him minute. I us think just a the back. calling Give

Go for technical holding ahead. Just yeah. difficulty,

We him do reconnecting. have

So just I hold, just one moment, apologies.

Thank you.

Hello.

Robert And rejoined. has

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