Compass (COMP) 31 Jul 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Aaron, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Compass, Inc., Q2 2024 Financial Results Call. All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question-and-answer session. you. Thank Instructions.) (Operator like Vice our President now Richard over Simonelli, Senior of to would call turn to I Investor Relations. ahead. go Please

Thank everyone, afternoon, the earnings and you operator, call. joining Quarter Compass and for Second you, thank good

us and Executive Founder Chief Officer Officer Reffkin, performance. company's our Chief discussing Reelitz, today our will Kalani Joining Robert Financial our be and

We will refer to some non-GAAP measures.

we GAAP XXXX find measures Relations today. to directly which comparable non-GAAP earnings Investor reconciliation quarter the second these measures on of the our site You can in our posted release, most earlier

including on expectations making current involve expenses operating We statements for statements the full our will be cash comments forward-looking free uncertainties. and XXXX, of and forecasts that include as operational and related are assumptions to quarter well based guidance as for and third our our and our achievements. flow These expectations, XXXX risks year

Our these from actual statements. may differ results materially

risks, results annual that information SEC, factors uncertainties also with more other find the Form on available Form report our can in reports XX-Q XX-K and filed our Relations about You website. on and Investor quarterly our most on affect could recent

of expressly in this place You and July information any is turn reliance the this now information. I'll disclaim Robert We today, as Robert? presentation to forward-looking undue all XX. Reffkin. any obligation today update statements, on should not to over call

and discuss second commitment XXXX an quarter finally, conference reduce impact results advantages, our will quarter our the the call. will for our today dilution. compensation XX-XX our to settlement. results, second of us vision discuss on continued And stock-based I joining our for to I equity Thank update NAR structural Today, strengthen

we adjusted we ago. best million, net compares income quarter EBITDA a our as our pleased is more results. loss with achieved to adjusted of year We $XX.X our performance say start GAAP have that double ever I'm of positive high $XX.X company. We than of which XXXX. $XX.X a million. a let's This EBITDA had all-time net generated in high second the QX have million to all-time So,

row the includes four $XX.X payment. $XX.X cash of For second impact free five litigation which million flow, of flow. quarter Compass in a antitrust positive the the quarters, and free cash We the generated million generated for in last settlement

X.X% excluding XX.X% of So, period. cost in X% $XX.X settlement. We increase of In in the growth. million, same an generated revenue XXXX, a declined the $X.X as grew ago we of significantly. the the year transactions organic by increased overall during which revenue, by year-over-year, Transactions XX% was QX billion market

than transactions Compass increased XX.X% So, market. the more

of CRM to As our the in the additional in color, X% quarter transactions from the recommendations AI Compass months. likely XX that prior closed sell were

in our of cash with and cash sheet the at $XXX.X $XXX.X grew to market As credit market XX quarterly compared basis In points balance million sources. We on these listings half equivalents year-over-year ended significantly. We first and to a was and We cash X% to XXXX. lead rate process leads to of are X.XX%, to developed QX increase XX% XX% no share revolving reminder, and an our typical grew the the down basis we transactions was share of generation historically than our XXXX, QX an an from sequential points to more able cost in million, outstanding convert strong. this QX this million tools we were draws XXXX, our operations platform team XXXX the We XXXX, half million OpEx XX of on reducing or XX of Compass second OpEx is XXXX compared $XXX balance, a An of basis of reduce example quarter in XXXX. OpEx our facility. $XX.X our by investments. XXXX the We million, to compared $XXX.X QX transactions. From reduced platform -- team. our with to first improvement the thanks

despite prior & million Our Blum antitrust Real and Estate. the and quarter Parks the litigation the Latter $XX from settlement in last increased cash cash from used of balance acquisitions year-end payments and

acquired seek agency from Parks with with the brokerages acquisitions increase in our strategic in which continue Nashville second In existing transactions, agency as Tennessee, Number further XX% Blum, in closed of now added We the X,XXX XXXX, market we When New combined and robust. Tennessee, We In share acquisition Latter with the Louisiana continue nearly we Number to our of Real to operations over agents. over inbound market principal two accretive the in be are X in in Orleans. X Tennessee. share & presence quarter Estate. Southeast have XX% increased the we

of We was agents the We XX% organically. XXX principal gates an in in also principal principal the hire agents increase QX continue compared XX,XXX at Compass XX,XXX QX hired the end At number quarter. of year-over-year. XXXX, to agents organically to XXXX, of

with trend retention quarterly in We QX agent XX.X% retention the continued agent strong also XXXX. of principal

title continues we January finished six XXXX, Moreover, improved percentage escrow We to Our strengthen. of with attach attach highest our our and rates. since points. ever business by QX rate

into in Bay XXXX. future, market transaction-rich our Austin. I Boston, market, to XX our and markets, achieved about average launching integrated our XX-XX want seven New end of City, our key vision over all talk and Houston, the finally, we platform Chicago the across months, in we six operations of title are the realize platform most including top the title of for now Compass have XX San calling and Seattle, have on seven will to focused into all mature our vision we which QX. And XX% our by cities York are partners Area escrow share Additionally, partners next Francisco integrated the on

come compelling complementary unlocks vision employees our XX-XX sellers, Our and homebuyers, compounding agents, home for inventory-based that may advantages and company structural as a investors.

structural advantages I'd of share our believe you advantages, in only brokerage combined offering to importantly, that structural of result the our attributes. from what even our structural the financial of advantages we Most these attributes of are the forward. one. one sources our our There combination cohesive following these advantages. Today, have come brokerage is and The on four structural date to advantage sources other firm no our that to are brokerages few has strengthen platform. advantages with structural the going into and We firm impact rests doing has that clear advantages technology we like the

brokerage that nature with first ability a offer Our structural an integrated efficiencies. its is where first the operating employees to new functions like productivity the agents; unrivaled employee-to-agent We only company advantage title in contact-to-close place management Compass platform drive the platform. The where support agent contact using. closing go client, the key same the for our to support, and can one is execute commission all of through collection, support and is from transaction and to marketing in agent platform escrow can agent the platform all end-to-end and and

XX,XXX and to the is scale. With over continue States, more something across by do. are investments technology to brokerages smaller our are advantage invest build that structural United second cost is agents. national of we our unable amortizing Our to over agents able our the differentiation upon This

advantage network. Compass than firm. more top structural at agents is other agent trends third any brokerage Per work real Our our top

for XX% has firms Compass real In as brokerage [turns]. next more top the largest fact, agents

drive agent-to-agent the tool referrals. referral agent-to-agents network Compass' best have an We the in client country and client helps find agent

agent Compass, more of average referrals. Referrals Our retention [XX.X%] their for and revenue result act recruiting as from not business derives [fly only in but wheel]. agent a

of to Compass data attributes. to we and of Compass belongs success advantages for publicly Our of have create sellers position inventory estate any advantage than agents, market better of inventory, sum our that agents combined path access market their public Compass is and agents therefor Number structural inventory. other All The consumer listings buyer breadth The a constituents, can We clients have we more success inventory. structural send outcomes Without or to clear over a and believe the have Compass, the searchable to players X nothing real which they MLS in combination is valuable and is for listing effect four our whether our that in parts. in aggregators, the advantage of and to financial will fourth reap nothing has term entity near source depth access bigger Compass. to foundation MLSs, or agents and therefore, sites, to every take where agents. At have sell to to any the and buy of inventory. buyers all aggregators the signal this of listing need sellers, than the of is our each is from search industry, the help agents Compass.com. The list. Listing benefits powerful share,

time less costs them business. more third-party For agents, our and that helping to generate means with operate lower revenue

house homes cost money their market with selling sale. for to for prepare means or sellers, For less time it their and less more

for buyers, best For them house most access the the means them best helping it at of the to time. amount the price least inventory in find

Compass, services For and -- firm. to brokerage lower a cost integrated than a revenue, while any while growing serve integrated means to serve revenue, -- traditional brokerage it lower cost creating agents

structural recruiting, improvement We gross three strengthen them our retention, leads, have agent to to key and initiatives advantages, search and share margin agent market traffic, drive gains. we expect

the the inventory in The of largest first homes creating sale initiative is for country.

a add have cities that the mentioned, clients, plan on access. information on top in XX Agents for would their these in of who homeowners vision in average, XX active a our in have, for passive as one accept place inventory, previously XX-XX entire market of Think that mind larger central live price they pool the We their know of inventory. the in passive of challenge share to to may it XX% open is As agents our our network some listed is top market. to XXXX. prices that of for doesn't but haven't home inventory

a market publicly ability and they to than to market. add that in me to with make homes will will is I combines one today, and inventory have platform Compass Compass with we move market. only buyers same in that Compass in have see is a However, contacts need their that times We the further the reside on place, since where make MLS -- clear million to work the search me a that more the the This [off] prices contacts make CRM almost agent CRM. expect active move combined currently the unique many listings Compass only aspirational XXXX, searchable to agent million single-family the XXX that

able their agents this in of As to our prices to their new add are clients compass CRM. make week,

the The is Compass estate. real second making for initiative required destination

transactions Compass Our Compass aren't agents, make and searching if goal have sending it inventory than you buyers clear a with to third-party Compass, strong Compass.com is the sites, that agents signal that working to more aren't agents, seeing result comes more agents that our all to you're we not more a given the that send traffic web approximately can our With at XX% inventory. from leads margin. leads to are

providers listing key client officers, valuations, Compass and Compass put true tax, Our third results, agents clients incorporate into inspectors, provide service CMA, plan videographers, the search in Only more. as is engine dashboard. ongoing the client such platform. clients six need Over client for place, the all agents communication, security to and offers escrow the only launching title home will initiative listing insurance in home dashboard products client feedback, home the improvement buyer experience appraisers, document, open as home interactions as a Client negotiations, and and interactions including agent time, home one well Launching photographers, buyer because loan tours, agents offers marketing, features in transaction we vendors. well, in and and line, providers the months, as key can Compass all house dashboard one insights, time to

Compass creation. three agent any undeniable by place being be With and homebuyer an a client, expect home advantage is a XXXX. within cash flow structural value these seller any advantages by our an agent, Ultimately, to at drive in shareholder all these is KPIs, I being initiatives, Compass and where Compass or at undeniable advantage a generation

settlement that approved a the settlement nationwide the Compass all been into to by on covering claims of NAR against [insurance] us entered sell-side has agreement and preliminary court. the Moving settlement.

seen compensation be our XXXX. the amount down To We offer change been many October settlement had settlements either average or a announcement late simply months noticeable the are percentage since settlement, the approval buyer not in of has the buyer's about disappearing commission in not they of before X.X the expect in a final fears from have NARS and commissions agents. It that of sellers paying commission clear, has the going or buyers/agent materialized. we

and period new our listings pay listings, of to are the Over agents. commission not August included of more. We included X% the offers change time the and during the on Furthermore, the more the May the than MLS three X.X% listings a just agents more than XX% XX% than June, impact or more month agreement do about Compass or on actual the of XX% majority -- XX on of the in [position] new that to requiring XX% revenue, buyer pay markets buyer not pay expect offers and more generating for to rule to reasons. offering buyer to MLS,

as the the from to value continue subsequent should buyer pay the clearly we or which seen the after whether sellers incentivizing that attacking questions commissions, and as First, from the data press buyer unprecedented the saw they sellers unprecedented commissions, biggest shows agent risk about data agents. not

And don't to will seller the agreement Representation Buyer's is the the determine the Agreement believe Second, buyer. since by the we shared with influenced be after buyer agent the commission. XX, only buyer August will seller continue

Third, Buyer many half been Agreements them we not before states already the this impact years settlement. and Compass in, have the NAR Representation in for and many, been seen required has have commissions, operate

on stock-based to Now comp.

annualized created we bring years, our the to million $XXX while by down close two still growing to DNA expenses in business. operating last the our Over muscle

compensation quarters only the of forward, move our create straight we significantly we dollar past recognize the decreases. not fully six of that opportunities is to shareholder As few cost We control. we the have identify continue over OpEx And in reduced annual have we to years, stock-based amount with value.

reducing to Compass comp expected cash detail is QX about share. $XXX am for and around was and $XXX is consecutive we as less be XX% dilution consolidating from his than is provide what less free over will the for stock-based industry expense we've free company I reported Kalani ago per see comp to our we increasing flow we in what plan flow winners. and XXXX. date three the $XXX million compensation the stock-based Number or stock-based in to million lowest expense in which cash prepared closing, remarks. In to years. a years public brokerage our XXXX, the Importantly, on two more X million committed in our done the just And do history

their their have We draw revolver. on I thanking to facility, our successful by to Compass financial free exhibited want results, employees through strong with are balance debt dedication moving will making given and have to the being with delivering pass entire over responsibility and convertible allowed Kalani. by of liquidity flow sheet, a end cash and team agents. commitment we incredible credit excellent to now no fiscal determination. I ample positive I no the Compass we see and our it

Robert. Thank you,

Simonelli. my go I by I Head our start details remarks thanking and acknowledging Before into performance, of IR, wanted our QX Richard of to prepared

a history. you a Compass the has the As of but a helped tell some many the and of us professionals, thank Robert and started. in leaves turbulent when most is the you we professional, Rich great Compass in Compass, I done. on better know, Rich at pro, all from pros, company's from much place than and times is you and for personally all Rich, exciting through work team, Compass story thank you've of moving

in I add Now the quarter, a into share XX% cities. comments to market the Robert's about I get want the achieving to for before XX results top

network and how of of people will their firms is share and brokerage organic be get grow else why a the million me M&A. We through believe that life agents we're It quality can of accretive Compass of Let growth join downturn. seeking prospective agents X.X to during the no has. mix one improve has going many increased pace their there. business Compass. offering comprehensive joining by the of to and This Compass technology, gives a

strategic making We have capitalized on by acquisitions. this accretive

are interested We talking local We're very and brokerages. in premium regional selective. blue-chip being to and

in benefits added real two we brokerages in build Compass However, to by office agents make And and Tennessee. California costs processes three attractive we our of Louisiana estate when In in XXXX, footprint have lowering and brokerages leveraging the for we XXXX, including including acquisitions that our become the platform, synergies, technology, overall exist. the the in Arizona, more already added financials and back Texas. operating sense. These

transactions the residential we Realtors. you for detail ago, Now XX.X% some the market the Association quarter, to in real National provide our very let of decline processed me XX,XXX with reported estate the operations for entire by an on year second increase X.X% of quarter. a second In transactions, compares quarter as in which the from the favorably

X.XX%, basis year-over-year share market XX QX points up XX of and XXXX for points from basis XXXX. Our QX was up sequentially

June XX,XXX X,XXX as Blum agents Louisiana principal acquired of Estate Tennessee. June principal increase XX, compared had driven that was through agents by or XX, X,XXX and year-over-year, the XX%. we to in of XXXX, increase of an & in As Parks we the acquisition XX,XXX This XXXX; Real Latter acquisition

Additionally, agents a on which us. organic was quarter strong second basis, in quarter, the team recruiting XXX recruited principal an our for

retention second Our in the quarterly was XX.X%. quarter

Turning the to for our quarter. results financial

Our XX% Gross our year an at billion, to from second $X.X of period, the increase which guidance of $X.X the revenue billion of was high $X.X end quarter billion. range ago was an transaction second XX% increase increase total average was from reflecting $XX an price. year XX% in a billion ago, the value selling transactions quarter, increase of the in combined in with

an percent a as revenue points increase was XX expense of year. QX last from commission XX.X%, basis of Our of

Compass we that splits a long-term made than acquisitions brokerage brokerage since operate the expense, is markets with commission which overall closed in revenue period in quarter, geo to continue our in from year-ago attributable changes average mix rate. were in the in markets lower as we and the related in we commission the to to expense see structural of of expense, While percent increase the tailwinds two-thirds about

total related expenses expenses, operating million and past QX reflects XXXX, considering year assumed of $XXX each Our the the the this in a This acquisitions to ago. QX other acquisition past closed of second Florida of million January we added $XX the X% two or a in brokerage we we quarter. for were and related excluding completed this non-GAAP acquisitions two from Title brokerage quarter. reduction after expenses commission expenses Even

And included expenses we our and our As reconcile the a as of non-GAAP amidst amounts operating that XX we adjusted and always, expenses, in stock-based the we've QX deck investor and from calculation XX to compensation including EBITDA, Page refer excluded amortization. expense. these reminder, operating that tables GAAP on depreciation to

EBITDA the was results. adjusted $XX company. for the million. high of ago better end Our reflects million as to range the This guidance it highest was XXX% second as reflects slightly a company an importantly, million, the which reported we $XX quarter a adjusted level EBITDA $XX of over record year EBITDA adjusted of improvement new of than our And level

addition income. all-time as adjusted record to EBITDA, a to new GAAP In it new of a achieved we relates record also net

During Most year during from company. earnings. was GAAP quarter compensation time excluded quarter, with as possible incredible reported we $XX was traditionally assisted in history expense the operating reduction of the compensation to expense lowest of on notably, This of us public also adjusted was positive GAAP a stock-based positive the the important the which a expenses, that the income is reflects we stock-based quarter, which that expense the second made GAAP our of million, note the by operating level the milestone the a of second some reporting relentless levels a net is first and achievement that net but our million of reflects reducing from $XX.X financial our company's validates are by that ago income lines model for expenses, it at as was reducing EBITDA. focus calculation right XX% an works. It's

mentioned, we Robert value on creating shareholders. constantly As focused are for our

months us on that highlight last by operating successfully to the several nearly that bringing compensation. We action stock expenses XX It's manage compensation reduce our items to with approach over discipline a to and $XXX accomplished have focus important put the we've same million. allowed stock-based already down

in we Compass of December their First, commission which agents allowed cash convert to portion a agent sunset program XXXX, our equity of equity. into

as Second, quarter same of incentives agents to use the we in the of time the XXXX for agents. eliminated as the of recruit third cash use that recruiting a sign eliminated equity we around on an incentive

over reductions use largest the including reduction XXXX, employee-based product the Third, force size And the grants. which in of markets consumes amount XXXX and greatly contractors. our in and to our several we low-cost offshore engineering the workforce a reduced we've the a considerable of team, fourth, labor of of equity through shifted during portion

for expect to as million. by equity of reduction over XX% XXXX, compensation expense In stock-based helping million years cash XX% for expenses, we measures million have reduction in in XXXX. or our compensation was equity will stock-based also reduce addition our XXXX, in expense. the reflect reduced resulted or And stock-based to our full issue to the XXXX. this, reduces $XXX $XXX two contractors. These This to of of reduce this million, $XX the don't million In our use will we stock-based compensation $XXX compensation $XXX since first approximately and year to a significant

IPO time based two will reduce at stock one reduced, as compensation is our the the years compensation since continue low-cost compensation time the vest next not at Also, to determined utilized. the over where of of issued on grant. will will Going efforts to the stock-based expense OpEx we is the is gradually higher-priced out and work price through labor equity offshore our shares forward, share

applies like they a vest stock-based a revenue net ultimately, for at taxes Compass M&A to cash made ways addition the from [pays] continue settle withhold time strict any compensation minimizing payroll equity employees' dilution amount EBITDA are reduces of -- we taxes well. framework the in as example In regular through other going equal that compensation One and to through during an The vesting. when forward issuance withholding the from that we for will year. Further, expense, shares effectively shareholder that in is share employee and be settlement deals program this of this net the value. holdback by allows the favorable share RSUs focused of dilution way and stock multiples of on at grow to about accretive operates buyback XX% and reduction

While our members stock-based outcomes management Robert, the of team to the team reductions, of real align actions -- to compensation. to represents myself we we down believe bring the Compass, operating also important continue tool compensation stock-based delivered In action an our understand full and plans we same it cost. exact way expenses expense is a are focused with to

we As the and is stock-based compensation the housing occurs, not need future. market amount in recovers there growth of materially a the revenue do to dollar believe absolute increase

OpEx look efforts, As our this progress and commitment showing we have calls. done with upcoming on earnings forward to we

cash results. during million. positive $XX.X quarter our to back financial second flow Free the Turning was

by previously of $XX the first the As settlement flow million. quarter class the disclosed, in reduced in legal our quarter, action cash which payment the was made second

free of cash have effect an payment, cash of the of of million, the million flow XX% would would have QX free improvement in that $XX last flow year. meant which Excluding been $XX over

in reminder, it's in have the my and positive later the effects XXXX due of that year. cash will to a half of timing that last is items with to first consistent As year, offsetting a couple flow important our comments partially note

beginning many of of the the to calendar fees that these at First, are that the our fees are occur -- year. of many agents billed

are year effect and fees by flow an aided the they cash paid, when year. the part of is timing of the in our offsetting So, will in early later the have

opposite of are in beginning capital each seasonality of when year for higher but year. full be a these year -- to The collections tend negative QX QX individual and neutral the the from in quarters. timing impacts of see impacts is way. the quarters these should we two true to working the for create end capital commissions when favorable working at generally cash items within our choppiness quarters in Second, of These can brokerage first that quarter in especially the are to seasonal the the compared quarters

after We made expect full million considering flow $XX payment legal positive be the to for even free QX. cash year in settlement the

and million flow balance of cash we quarter free with to only and outstanding cash that cash ended we we QX flow line in We negative of to QX. We cash react expect sheet, continued in have second equivalents market believe and positive challenges. draws credit. positioned well free However, will are will our the $XXX on slightly be on be revolving no our

Now turning to our guidance. financial

For QX The midpoint each of XXXX, range increases million. EBITDA $X.XXX and of million year. of to in we of QX $XX last to we $X.XXX the to expect and compared billion XX% these range billion, EBITDA the ranges the adjusted and reflect of in expect be $XX revenue -- of of revenue to XX% adjusted

provide second modeling few it data the me doing for half Let of XXXX. a additional as points relates to financial you may be

that expect revenue for have of balance recent the the brokerage. integration We transactions margin our commissions that are reflects this percent which QX our was consider remain would for core M&A of the this XX.X%. around to as than First, level rates higher of our a year, commission

OpEx for million range to $XXX the $XXX it we our updated as million. to of XXXX year OpEx, have Second, relates

and out of quarter, the $XXX XXXX for in OpEx & million that our and May. laid range just acquisition million As April $XX entities that from OpEx, $XX this an core of of we Parks in we with company last million balance OpEx $X adds Latter closed million additional starts acquired the M&A Blum for in XXXX for

sequential full and OpEx QX to quarter's QX. QX QX the a of impact and expect you increase worth of purpose, OpEx modeling to QX and contribute in an quarter our Parks acquisition additional partial as in & For should of Blum Latter

our cash full year. reiterating are we earlier, stated I as flow Finally, positive the to free for expectation be

of a on cash and flow business. negative our However, expect in in given QX QX the marginally positive basis, seasonality we be free to quarterly

some my up second recap standout. like prepared we made wrap just made a of that the to highlights that I As I'd remarks, the quarter such

say to do our without volume operator hard record like GAAP grew from call you a these our principal for over industry. and public to that the again decline ago nearly Q&A. XX We ago, of which market overall the million with brokerage now net year million, We We and million compared versus to like achieved of our a million completed of and number on delivered sales I team market. XX% the million or of income. Results an share begin of two over even increased work And ago X after all quarter We ever Orleans volume versus -- I'd marks recent in million delivered positive transaction a adjusted QX a of position X,XXX we despite versus X%. prior considering basis $XX.X $XX points of $XX the dedication a over acquisitions. We in employees XX% first compared an M&A by by The as incredibly company volume which the record. increase income legal for and Compass. of of over in we increasing increased million our that in X% a being $XXX First, of by for basis, to which GAAP turn we've an $XX QX year of reduction $XX transaction like our transactions to produced time adjusted reported New down cash agents XX% to we through the reduced EBITDA an additional annualized the by flow a and revenue out thank additional members, paying agents. EBITDA you $XX net new to over the reported OpEx OpEx Number revenue settlements. Nashville despite year assumed increase was year last free we would principal to don't for finally, agents became level cash XXXX, happen

you. Thank the went We'll roster. Instructions.) for (Operator just pause to compound Q&A

Our for Bouley Barclays. today first with question the from Matthew line comes of

kind of know to I'll you is understanding top competitive mechanically mentioned and array I The strategy, your getting ask XX XX-XX retention. recruiting wide and would have around it supporting of advantages a markets. a XX% organic you the that be in of combination question the share M&A. speaking,

few I pipeline those you where kind And kind Or a get share be may need point, M&A to around of there? go we today of some agents that of competition after gain should are guess, starting there in a could a So, years of piece. to markets? around you the is from kind returning there ago think kind to organic that clear of you in uptick some

the On Compass. of days the to of We strength an platform. we -- are organic equity the That's coming be the to back interest not old increased side, to going incentives. and incentives seeing needed expect given you in cash and don't

on I to a is of part desire think there small for in agents historically, boutiques. be balance

agents settlement NAR accelerate just as seeing the helped part not the that being well. has understanding when that, think bigger company. And I of are is the CEOs of seeing a of benefits are brokerage

of benefit basis will and it be an the to so, disciplined sure brokerage of EBITDA the a said, And that on framework before yes, organic Kalani a mix accretive make synergies. very M&A, as it's will cost M&A. multiple And leave always

synergies. accretive And so, cost when you include more even the it can be

Got you.

Okay. kind Maybe a have market. zooming of secondly, interest bit. come Super helpful. into rates down just Obviously, the

what kind color around high-level settlement, doing rates, it look what impacting you the around may just Kind be of fully market and and getting move color but and is great commission back is is seeing actually -- the kind of yes, maybe be of with transactions you're settlement of in sort right? it rates how there market. not at creating uncertainty pushed of that that Mortgage may some if the any the to not around seeing overall of terms what also etc., So, then are that around online? availability inventory data I'm in Bankers yet. has of curious coming You Association, reflected NAR

not people you, a So, and the around as and are to headlines, the but to that much agents go people hurt business. I It Agreements fear the professionals, that has the impacting the are desire settlement the for than it's the business, say to there more remember, is really impacted I little business. think, straightforward. fear latter the Not has earlier. actually Agreements let's the that in certain impacting to some the I would Representation and all may that I I now to just, offices, been I MLSs to offices it's Representation that more out think the made start because not that we're of country, will their industry. their transactions. of agents or haven't experience when practicing travel them industry desire When going in don't with leading -- really But do the committed seller certain regularly people are are first, beginning, transact. agents mean have around from It's or think already concerned, be XX. Buyer's decide joining were this revenue, business tell have The But [amended] different NAR those anything I've everyone their there impacted and buyer money. Buyer's actually but newer that agents, or in seen August And agents. their aren't across And Compass desire I agents not business that help

are out there are that data there. points So,

In happened look, it terms of been market. market, the of has somewhat what's real estate in confusing a overall

for optimistic modestly sales $X.XX the to This annual compares home quarter, $X.XX I'm rate we million home existing last last about million. seasonally sale year. However, full That of the adjusted saw year average fall.

larger was since was all rate know level transaction annual So, is back we now it what that The on [adjusted] last actually than quarter population was than is XX% of worse XX year. means sales home than more last ago. And this of the years lowest it year, last XXXX, seasonally then. of

[million]. been want demand. has build $X There believe -- market the has is clearly, is up pent-up upside which of it's to must the we creating demand. it's kind also been move the So, market move But to continuing the around moving, on depressed, market

rates QX, while The rates. the buyers, absolute in all change happened react consumer the itself. what think I mortgage I rates think to more they it's than it X% in down was around mortgage mortgage year-over-year,

up basis to mortgage the went I last and X.X%. spring, X% a boom why X%. up XXX so, this points, up rate went that fall, from or because started The but X% at went it -- with more that's started it last then to the now, And we in mortgage off stopped it quarter the market,

in up absolute the not year-over-year. is June, the went saw it up points. it's today, just data out XXX actually And the So, X.X% that rate. What it's came were basis change in the the we again, just rate, pending transactions

so, that real-time of April, makes X.X%. And June X.X% of to June the from versus actually sense a in And broader -- more back down market, seeing trend, which makes went a hit mortgages rates on on we're basis. but a closed just And because reversal happening not pending X%. because now as mortgage what's

fall mortgage so, look going what what's believe to continue will the more I in to And it's rates. about happen like?

mortgage the of had see this X.X% of mortgage think believe this going funds X.X%, then fall X% you rate where the mortgage we're highest rates that particularly below by range, but was an now, in X% we've right not years. of a I If fed subsequent to that last lowering defined have in kind they're just year to to in XX that will anywhere to rates, a over year-over-year, going given below lowering going X.X, increase

inventories we still up X% In inventory, optimistic. up But single-family still That's relative yes, Total sounds is it's of year-over-year. it XX%. inventory XX% less. and to terms XXXX, have

price, up X.X%. still last levels. note, we're to below thing I'd say, pre-pandemic are so, And And the prices is on

it's has is inventory, when and every so almost confusing, you grown. so, more I say inventory great, this sellers, have week which And year, more

because that's can't can't sell. And what good buy you so, you

would numbers it's X.X% the fact that so have also more actual -- more been last that couple into confusing because going But low have sales home of the up, -- And months. I good we is this inventory there's so, buyers are fall. it's buyers where existing Right? that the homes price of point now. is sellers. it has than be a right there data the that less If at to hard which for and all-time be at an be price sellers is than high, more they

thanks Got luck asked I addressing for good it. and Well, everything guys.

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

Everyone, of kind just M&A. questions of bunch a around

you deals. I standpoint, but gave Do it Robert, potentially it from revenue, further at And a cash expect the what's primary an you then transactions. think acquisitions any for gave just earnout you Thanks. transaction but was the on don't sells capital for Do or So, growth? you look I M&A out, to this constraints for You M&A impact Kalani, transactions reason Compass? year? XXX% have housekeeping, don't what think agency

as CEOs, Remember, family about of if Many that are I care they they as Compass. really their people, not companies hard. that great really, reason work they're primary treat Even great these families, they're entrepreneurs, the So, they're CEOs selling are to agents about mine. businesses. and family businesses, their they much care them

have market first their that together -- people So, inventory. we the are so, foremost, know someone hears have overall our there's private we an that a Compass in to off-MLS a think of agents market for objectives I your is, a don't level our the private goals. from even technology of who unique share the with be conversation. which being many listings, financial At have been achieve of And what that but their say, what's would their the now that exclusives, agents. -- I market any meet their the interest. opportunity interested? saying give the I that ways at I inventory, more our way it's actually CEO agents to not And shows technology in And in for now, of broader I'm I'm what be lot all. would merge. start call agents, coming a If to -- exclusive they conversation I calling of just in you may when different interested? you and It's helping where say is It's our I well give a the your then for off-MLS I us there, kind about personal CEO. three -- life speaking, I'm pain list, of almost we what that top can and of do what the can mean, years

target that (making this) pre-synergy. we're EBITDA, terms multiples aspiring are on In of multiple, average, Xx the to we

the But around significantly. down number goes Kalani that post discuss let capital. synergies, I'll after So, question more

two-thirds Jason, from the Thanks, M&A. our for just came I would of counts right Look, Yes. -- thanks of it's -- Robert. question. transaction north

of XXXX, a reminder, at ASP. times the & Latter and Just bit lower have a and some even acquisitions the of recent Parks lower Blum, significantly

And math so, square that's how there. the you

with of from comes Bernie question the next Our & McTernan Needham line Company.

what framework start to GTV overall to revenue to just able get trying XX those if just And step-up set, goal? Maybe some share this reach be market it does of in this of the the represent? is could maybe markets? just you're level top much of in terms big XX-XX on to a your how current how And

be might you think on mute. I Robert,

Let Robert. with me Go -- ahead, start

average hi. On --

but not getting on share top it's of of average. having to have average today. more markets. in -- units our every XX market, in market It's terms There on number some markets not market that we share in First the closed in volume, do

in We and most in more. have more we're -- share XX many markets than today, XX% market in XX between to in many

these we're of for -- say just we for And Every well. agents are as there, the would halfway aren't for more advantages but they Compass. And but so, advantages one marginally. advantages I than just structural advantages, --

just for client not is clients. obviously three what like more with years for last one of enough inventory, we've issues and there's the in dealt dashboard is inventory. the is their Having And so, agents agents key

better say, inventory, the inventory, of your clients creating launched with So, me we the clients on better making of all that which and addresses. to platform, make we searchable along can that just clients' go [off] into to their MLS you and contacts, all help inventory, week MLS and you're all platform more access are your move can your a because this we a give and serve not agents you can they inventory, we the

neighborhood, CRM addresses profile, etc. $XXX And have so, have those million from they beds, and again, like all in our our contacts we number a of addresses,

a agents the as that And to I moving we're helps this two and this of the bigger a out out, is in that, has of search allowing comes of that isn't able be to so, agents the company with all world platform. believe where to part Compass year, all a matter benefits months. coming platform a this And being years,

to going the agents to these I it on ability align in are As for dramatically firms them. CEOs benefit with organically our bring and things accelerate or see they brokerage ability think out, dramatically accelerate our to to because coming it's

Robert, be that but there August I will there then, impact, you be? to trying might it the question, NAR Or anything? think material just Will to or not you a now, in previous impact, answered And once it there just -- know from or partially settlement. Understood. significant think a -- a about is understand a think that be right overblown isn't XX, we change hit do if it's do still. does But going really there no, be change like any like significant you

seller the And -- in be of saying this think even not side, not mind anymore. fraction around anything buyers and was, don't -- headlines like be and after what NAR to not the I -- it's it top and there wouldn't of happened the August think sellers transaction there's XX national if from settlement. buyer it's a I going are

know should Representation little coming should that not but it's negotiation, early a showing. are it not out an number viewpoints the of too a before before to you in -- change our change how those kind Buyer's seller have buyer, so, think -- what we've around -- around different don't think change Representation the A. to already is Agreements. going of And half to mindset it's going I remember, The their regulators also states that have that markets paying already using out doing of And And markets B, with are and I I before don't Buyer's showing. transactions, parties. that it's earlier. they Agreement that coming think be about been some it offer should it saying with there a But

it So, if change. be I see think somebody's But allow I time that early. a in there to will still again, markets, if being don't will the tell state even even

to we agents, tools the opportunity internally, though, would continue train Yes, the value. to to I as just agents, add we're to show using trade continue it Bernie, our have to

it's a to on and good show don't to continue ton end, internally, I for us value. train think but think there's the a I macroly, in So, opportunity

with question is of line Soham next BTIG. Bhonsle Our from the

debate on It just last guess. doesn't amount still like but following Robert, there's investors. of sound amongst about a that question, think up concerned I I commission rates, fair you're

we how just you that on going maybe the to in if and you specifically your sort this just some split about commission split of And talk if So, contingency focus done planning have see is intend side line defend on to there pressure. were you that forward pressure. sort of of where situation could

the view split competitive to the think market dynamics, can lower. relation you and on side, think don't that the value on I spreads relative dynamics I in much competitive provide that. that's look, Well, overall go the to is My

hard Agreement has August anymore. there there a about to was change creating a that I pressure. or earlier what that think loan going said some of and that doesn't what Buyer's some the increase the are this terms that on that way, investors -- actually, look, to see so, on afterwards. aren't And worried that that to I value seller. that conversation XX think happen is dramatically investors, agent have terms -- had Again, agents. because I the -- are investors, But is listing yes, in the -- my by are call, that the say, pressure Representation there belief were And with I okay, the -- we're advantage] many The of know I more think in providing [the given

wants And is On is listing the going framework. going so, incentivize before, much about be talk down XX the how the same We're the to buyer's with have agent. a seller week -- agent. conversation to versus agents to the that the going listing seller August

does And thing change agent the are when with negotiate so, saying, does. What is I themselves, this, best I the for buyer right? oh, the actually seller is agents don't can happy say going negotiate it's I what actually best it to for the left actually how now like see it So, because myself.

historically. for actually more actually agents, listing kind them. can of negotiating negotiated whatever country, what before the of I come many listing agent -- were -- than mind, buyer It's asking the to historically the I interesting. taking agent for behalf the the buyers meet on was across just them now And their don't buyer they're best their Now I agents who

flat. but will see so, haven't going I things that And I can but tell, can time being yet. maybe see down just modestly, them I seen

and You up will also it time can see going tell.

it. Got

the a Okay. bit. tool. I'm make source then sounds And on move unique like interesting some But to way It me just inventory. a curious understand to pretty trying this little

time? system So, sort that the Or if seller the to just on of a market to of Compass in inventory platform? on MLS in the there's indicates and sort well get hand, will broader buyer you they're over of their syndication that that remain home sort that interested selling, do intend raises your as

Yes.

to try So, I'm be very going to here. clear

I them gave in more a I We to to clients -- the challenge. or to have all ask more said, your million out our I home. their CRM. them than people went this XXX want list if XXX and go million agents they in than and week, contacts

Ask has want sell sell price an aspirational get the say (inaudible), finding it price Is a they sell a build build our to an no, them they is, if example, to engage, in is want our if agents nothing a price, them exclusive]. there at never you If relationship if that front a this is clients as you would out an would and else, there there they at? business. CRM. price of that to is price. ask say, -- would Everyone right? So, private My [a But asked, Compass minimum, at? wife, opportunity But when home. to in and putting that

And the who know will the them is in it's only so, they there. price make The only it's agent just it move -- person internal. so, put

Number just the the request we're search, -- put the our platform in our comes what and has that's Number of our place a we an was -- you to is we idea, is how in this just the the better agents X with say from to which searching, CRM? it's is contacts Francisco. sell San X why same that exclusive ahead let's the available so of and the building The where same working CRM you by on exclusive, Can because these and CRM, penthouse it, have when history we MLS. on MLS? everything remember would third contracts. Compass, have penthouse, what's Can the also ability, five-bedroom over because agent, on However, Compass it, you're I voted not off addresses likely request, this Francisco. do months is this this is agents? Can say, private private people there the call What's in all in Soho, what's I let's people, in have five my we're in it be average. So, a X,XXX line San that and make in Robert's two -- the is

names are line, show the So, at And be then people It available. line or will an are will bedrooms addresses, line agents actual have that that as example, are their the reference confidential agents Penthouses. what's who the will there they in have Francisco other only number. fourth people XX would those who their know The San third Compass. five of fourth I lines. not I only five other contacts, of have the a in

spend looks five-bedroom on San million say, Francisco. buyer to hey, Jane, So, can John, hey, a I two who a you like It $XX have contacts. penthouse in I wants have

do for line off the other -- making estate and world want numbers, real adding platform. CRM the last and and the bring make reference contacts in but we're in fifth we're new that to their just today my one into are CRM, platform. those buy? We is this top to on taking prices. would And what's Here have already, in the it's agents one, We're it they agents it's

agent it to would is the at be signal they I the what that in what how sell prices, is And makes. making search and so, that surfaced gives be -- better people these So, of when every that will willing price? a us say

sounds a sense Okay. were and achieve normalized in, last that across it $X call and fully appreciating then a levels? have of so, exclusive about U.S., all we of you're to not think platform. for that Kalani, just strategy, the sort share if do just -- one, sort in And kind the the home markets sales XX-XX existing to market of of environment, you sort translates million to it, what you those as

Yes. Sure, Soham.

there probably half the of we're mentioned, Robert already. As way

obviously, this at five-plus estimate reported five. number, exact but I'll we're don't know an We And just so, that quarter. I

high said, are math of kind somewhere teens, inventory the is that Robert agents. but digits, driving here on Like markets. So, our sure to in single goal really advantages low make advantaging our would and the structural estimate, be will the it we depend about

get But And we think that's how it this at I about it depend so, will markets point. there. how and the on fast

Michael Ng Our with next Sachs. question is from Goldman the of line

I two. just have

First, this for one is Kalani.

a And Or And have beyond sustained commissions point, follow-up. is the it On for is higher commissions higher I does normalize M&A? that that of and be rest that around just the lower? XX.X%, year of expenses then level down something for the Is given should the XXXX? level that the a year. even separate that

sure. Sure. Yes,

margin So, M&A decline, commissions, basis about point XX I relates the mainly related. as and right, it to mentioned, two-thirds of the market mix we is saw we think as that gross it well driven as by

the we and I are directly. of answer of to it think I more time think as do think, to period a gross question it's consistent relates to margin, for working, I I so actively of year, lot it your there's of see quarter. tailwinds and we a this think relatively kind

per So, recruiting but XXX of on our as agents beneficial right? are of XX%, that. we're about to in organic bringing our we of to quarter. think is fleet. that agents our top tailwinds, bringing XXX on about XX%, team at think top not These good the a economics kind XXX-plus some doing I And that really do this agents is have there, you the are overall team The to quarter. job we'll the continue

for some that half of in incentives seeing, and we a to we'll Additionally, stopped incentives second we little the the more, continue XXXX. are of see bit

services, we'll of us escrow. burns integrated incentive And particularly tailwinds reach see and our then continue you'll some talk opportunity off, our title see As our and there. lastly, about depth to grow to

business has T&E Our abnormally favorable impacts our gross on margin.

to grow par that as a aggressive plan growth we And so, really be with to grow, have improvement as see kind we significant and peers, that well. continue think as I from of gross and margin on our continues, you'll

favor. of I we think of to the a commission as more and rates the some of do time overall, in lap I market period M&A it's kind of dynamics. So, our our we're think lap positioned well some of the grow But

And the just a the the Kalani. you, a why and follow-up move. passive apply? I Thank just clear Could of I inventory confines how fits you about had NAR's Great. guess, within, like or bit policy that that cooperation may may me talk little not on make

so, cooperation by I effectively and largest in It with clear industry. will of already lot a others leaders no MLSs focus, now priority think MLS to Yes. the be of longer the number eliminated restrictions of has restricted. beginning been I a a top first, top allowing the mine, end. -- in it's and

cooperation cooperation of clear believe I believe I the is, the the is system too And so, that anti-homeowner. works believe for much even homeowner. clear I -- wasn't way -- it today the if that isn't what

The is why on days of have any what is Days market. Mercedes-Benz they go When When on not have killer value. don't the on do Price drop price price to killer Compass days reason or good, so, market. drop you do Mercedes-Benz not every other go you see the the or -- they value. I'll the at we history luxury are history. up, private drop lot couple a And they because of exclusives examples. so give market is of popular

able that, Compass homeowners, over Because the our sees be of the test those so, who where call to And want some the a you have as buyer there share, market without are markets XX% where to first. we listings negative market majority they on come marketing. of it what

in history, drop don't have crime, other in that are aggregators AVMs, of kinds things States things. These estimates, world Now and price the the negative markets all many in evaluation exist. these on market, United days the that market

So, REA, no which any insight owned into if Corp, is negative of kind. you go Australia, by News there's

the it's with forcing an -- has from what easy negative where like and homeowners the test insights those doing it it market to more problem cooperation, insights put gave homeowners easy is day sharing searching agent, can -- go them. And insights. of -- so, inventory, took it negative different one we and without highlight clear anyone or having because protect it's there on all saying agent, is why buyers, so anyone construct I'm after has is who tools, of negative into an the through is the to It's it a negative system, the place goes on to the choice have it through where a a And then States the get no And through in with that market negative which on which system, you we insights test this put to helps these United homeowner the it say, pretty agents, actually public on. in it can to marketing, MLS. come your aggregators to you insights it have doesn't privately who

is very currently And for away make confident so, as only if is your will top were in a me known. go the not and as an leaders not us, the is And move they're because cooperation, we're clear in that's talking searchable -- we're when prices why with now and clear it priority of cooperation the public I'm industry. to marketing issue. even even it the contrast not, you're CRM in they're talking agents, this

really helpful. color, Great. Thank that's Robert, the for all you

line Our Zelman of Associates. next & Ryan is from question with McKeveny the

Yes.

quarter. guys. to for Sorry taking margin. on was you P&O mute. questions. less I job the Thanks come on wanted just back on that about the revenue the I Nice Kalani, to

from that and that makes the on agent Anything there. think economics lot expand is out share can that time, mix obviously confidence agents? can [CNO] there gap I over called comes some products margin the was I to your upsell these margin you on a potential know time? over be improvement sense. offerings, you and But for more new agents? of Would get commentary the be just curious of to plays as something bridge to that Geography over ancillaries opportunity a improvement So, you Just of maybe how on you the there role. all leverage time?

I'll if add. Ryan. anything have A few to Sure, start, you things. Yes. Robert,

again currently It's mix, agent-for-agent of mix. basis. seeing we're not right? noting around Just are headwinds structural kind the just a it's so, more on an And

opportunity that's have have that we so, And move continue confidence to some to why our I economics.

in we're I we're renegotiating deals were folks I prior. us where And the you think every we're of on hear incentive we think off that time the as plans bringing today, of about when really excited can kind we those, structural where those And agents. we how and we have we're with confident are those are about. conversations the of help advantages agents, some talking having

conversations. but better, making productive make commission, we we have that, they're can So, the more that it's not do how when do can just most we sure obviously money

around is resetting think So, more the the short mix. do term I

we I as Compass, teams well think think continued the commission more hard that if showing are individually, And the to and of there make is fill us our economic kind of bring to will, value sure our for agents I working day -- which every then rates. opportunity portfolio, we're really you on improve will positions bring improvement. out

to add what just I'll said. Yes. Kalani

agents at is lower better the I T&E, benefit the think our offset benefit helping margins. what of mentioning. the think were really we our was I markets, market, that things of splits acquisitions end is more which I But just with kind -- hiring we have of seeing has margin, of

be -- balanced. M&A be that time, an more over be there'll will think strategy we'll I

won't it I And us. help think it us, will so, hurt even

that's -- months, of we're T&E transaction those basis to a challenged strategy. call, the to next all T&E. think number split points think that of M&A hundreds add per why largest -- where going I I of most our to lower are be the the that's over of you some I referenced we're markets the and transactions, the the the multiple XX And referenced when expanding one, in. Two, course cities there's on I those just more markets

just expanding that -- markets more the call, clients on we're now, but things with we markets that And will well coming I there agent. their be fruition, and three, believe to. And go to then do many conversations. mentioned advantage in an the so, T&E the are there help as to margin seven at believe advantage an to It and undeniable will that every I has Compass with

improving comp, look includes OpEx, economics, are I add, forgot if Yes. you actually we're of so, of talking -- which those cost part look the kind we total add, would agent, look about right, of all total stock marketing, commissions. Ryan. time. right, just includes over to the our of I the economics you think some which the that, if of etc. agent I That's also prior If we at at

would I I the us that economics. So, and agent commission just to that that kind everything the point think side, on dollar Robert in also said, of company I has total

years. the that to made that's of metric We That's steps over a already each we've last with improving. the are improving two three

Robert, a made the is year-over-year. than like share you gains. In that And to platform translates said a it, ultimately, of just listings was for that lot Compass are having me is had call at the it a Thanks Got of to guess things think rate color. that guess, I in let's listings, peers. rise. obviously winning XX% now comment and new agents and sense. lot faster inventory what's had make at success side that I it. seller a February, I move something that on started attention. makes interesting. activity here you is And up all your getting The today, time, seems listing And That very of happening

taken expand. generally of those updates agents agents to indication early that an success Compass Compass versus trends of listings in signs as on seeing guess So, seller were by the started can activity agents just any amount or platform overall? seemingly you're on today kind overall the you listings having of just I share

know, through CMAs, conversations presentation reports. happening. But their agents their platform so if are the it's the listing we -- we market remember platform the brokerage many with year, as having Compass and [traditional] agents the clients presentations the come as not build, to when I their third-party earlier how analysis, a because a well systematically agents we when platform, listing in know the Yes. their -- the doesn't comparative saw market which doesn't know of platform, on are

And buy an so, we the pipeline on the full we can the can side sell from see and agents contact way see first -- of side activity through. all

we then early yes, year, And tell were is the around XX%. directionally so, And the mentioned the call, up earlier as inventory listing now XX%. up conversations that I in could presentation actual the on

now And insight. so, updated that it's have I -- on that we going do have don't listing of an view the presentations, number into fall.

you not so, to I some not and agent a data likely people, CRM and recommendation addresses CRM anyone a the a ones in it's recommendation. It's around that. time of is last home that's I if one And two to how moving at what looking agent of your we And bunch or these, people transactions call, that has of the says, it's -- weighted details have looking sale key And sell in model baths, or at likely medium are about for -- there's whenever property, that your that percent that highly LTS, of owners, X,XXX factors, what in to bedrooms, it's attached if and don't sell. our they're go frequency a their of those recommendation database average contact renters, and things, square the -- do have there's past shared button earlier sell. they to the like recommendations But on likely can an in a they're platform, move. the they footage or value appreciation for are since a sell

And of so, XX to in likely transactions that addresses it's the QX, closed sell it is those in based on Compass of those types of factors. saw were And months. what recommended we was X% the the Compass through prior

forward when in what we likely not an And versus -- seeing we've past. the look number sells, necessarily we're so, increase going actually the the sells to seen we likely in to of at

-- the inventory. don't big I And think declining to see But that boom I that's I it's -- think don't new an so, indication that think in that either. going is we're a market

-- well, will market think inventory I new versus more the actual to inventory with be coming to sellers. buyers do have in fall

Ben Bank. the Deutsche final question today a have line Black with from of We

for is on [Steiner] This Ben. Jeff

on bigger NAR into policy go some any into way? one will mentioning that you you more you advantage, Just talk industry inventory a as private clear one lean to to of about a mentioned maybe the and listing the push that potentially structure? decentralized broadly, lot are a cooperation of going a maybe structural And of effect. potentially quick a on that. exclusives away to Does more of any in of And kind that allow the rules

looking believe good lot really which that It's the that forced can't clear question we live the that MLS, that And right? of at DOJ believe we is not a they that question. that opened listings inevitable, MLS put a is this is asking, and but which because It's and forced not a public, that's be that case. world if -- I leaders so, aren't they're publicly, agents all are -- actively to that's cooperation, the in, I in

coverage. a And when clear heart the recently you when of clear is, somebody do of believe, on people? top that's you're So, there think away. on I agent to from, another are problem a around have I again, it will case forcing it And something. cooperation. this judges going one you the And a -- lot at and forcing network are -- go There's reopened

not will County, Napa, find, standpoint, PIN, broker we just of number mechanism clear MLS in it's is no -- have clear fine. cooperation And no in points. And is -- data -- are And be other there work away, [Baris.] There which in and under NAR, the Marin, is which go we an from of examples. but things There MLS will believe It's so, Sonoma it the I a that's already Massachusetts. cooperation forcing fine. state because

beforehand in it -- will -- -- will many are to market a days choice. What their end will And much the as they're fear for What that so, to think majority vast it not happen, they're inventory they're paint that many of decentralized the foreseen they're a They to they're the the be MLS that isn't and for up want some and it? -- it want market from homeowners What believe to market the they if test stakeholders believe, what What always favor. if I reasons they aspirational if of is get? starts. need for married? instant. there if what that, property What it will it won't getting And coming and develop how But the if stage why a There not if price? I reasons celebrity? a the before mean really CEO, want divorced? test What so, will to like of is it's people are getting into probably marketing instant. There centralized place. homeowners not are always be there's

able will the data many that MLSs that choice still choice But that work happens, when are think don't cooperation. the I the any that because do Compass our where inventory there's public other Compass.com, But sites. be I believe for that on clear will will as we well point have to inventory so, more already there than as show system happen. more And have agents

helpful. very Great. It was

today's remarks. and will Q&A turn to end you Thank Reffkin gentlemen, your call that for back to question. ladies Robert for And like I'd session. over the closing

today. Well, for you first thank of joining call our all,

are As tell, and we by very going excited where a we where are you company. can as I'm

financial I call. all just return company the who to we you through thank and of amazing excellent are want results for all positioned always on persevered track their times demonstrate their you. the to in difficult very capitalize. well am for when say on clients amazing results say that market to great does the delivering eyes to with and have grateful I and right agents, employees joining Thank for midst this to the really how the be Our we a to market the normal, avail. will difficult And

joining. Thank conclude for today's you, gentlemen. Thank ladies call. does That and you

Have a day. disconnect. great now may You