Losing more than $1 billion in two years seldom gives optimism. But Compass found reason to smile.
Its executives claim its record losses can be seen as an investment in the future — a transformative bet on developing technology for its agencies that rival firms cannot match.Now that the money has run out, it’s time focus on getting into blackkeep thinking.
“The whole point of raising all the money is to spend it on things that help attract and keep the best agents ,” when the company revealed it had lost $150 million this quarter. Golod sees the rise in the company’s stock price as a sign that investors are comfortable with the company’s direction.
“Investors are always looking forward and saying, ‘Well, you’re showing us that you can actually get there,'” Golod said, referring to the company’s goal of being free cash flow positive.
Samtani and Golod delved into many of Compass’ broad issues, from its ability to attract and retain agents to its ongoing technology investment. “We’re still spending $100 million [annually] On the technology side,” Golod said. “We don’t see anyone else catching up to that world because no company can raise that kind of capital, no investor will fund it. ”
The pair also discussed the impact of AI on residential brokerage and what Compass is doing to take advantage of it.
Watch the video above for the full conversation.