There probably aren’t many people today who expect to see any frenzy left in the marketplace. But here’s a view from the street, looking at actual sales closed over the last 30 days.
At 22 minutes, this turned into a full-length feature film (sorry), but consider it an audio track about the current market conditions, with video evidence to support it.
Compass 3Q call:
We are managing the business to reduce the cost base with a very specific goal to become free cash flow positive for 2023, starting with being free cash flow positive in the second quarter of 2023. Market conditions are continuing to deteriorate and as a result we’ll be implementing additional cost reduction initiatives to get ahead of any future market declines.
We are seeing industry forecasts of plus 1% to negative 23% for the full year 2023.
We have been planning for a significant double-digit decline.
While we do not believe the market will go down 25% next year. We are not waiting and have already begun to build a plan to account for a decline of this magnitude, and we expect this plan to be implemented in the next three months.