Today’s RealTrending features an exclusive interview with Robert Reffkin, CEO of Compass. While not backing off recruiting, Reffkin talks about a new focus on agent productivity as well as the firm’s commitment to core services as a profitability center and value-add for agents and consumers.
Tracey Velt: Given the growth that you’ve achieved in less than 10 years, do you think that you’re still going to be as aggressive with agent and team acquisition and brokerage acquisition, as well?
Robert Reffkin: Brokerage acquisition is a small part of our growth. I would say that the growth that I’m most focused on is the growth of our agents’ businesses. And so far year to date, our agents grew their transactions three times faster than the market. So, year to date, our agents grew their business 37% while the market grew at 13%. The way we go about doing that is Compass as a company, we hire incredible agents from across the country and we observe and watch and ask what helps them grow their business. And we bring the best of those tools and services and marketing and support into Compass so that all agents can benefit.
Look, we’re proud to say that Compass is in the best place we’ve ever been financially as a company, that we were profitable in the last quarter on an adjusted EBITDA basis over the last 12 months. We’ve been profitable on an adjusted EBIDA basis. Adjusted EBITDA is the primary metric that investors and analysts use to measure profitability for a company.
Our company [is] investing hundreds of millions of dollars a year on research and development (R&D) — our in-house technology. So, over the life of the company, we’ve invested $600 million into building our in-house technology. We’re currently at a $300 million annual run rate of investment there. So to be able to cover all that is a pretty amazing thing.
RealTrending features the brightest minds in real estate. Twice a month, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.