Bernie McTernan: Understood. Thank you all.
Operator: Our next question comes from the line of Mike Ng with Goldman Sachs. Please go ahead.
Mike Ng: Hey, good afternoon. Thanks for the question. I just have two. First, I was just wondering if you could talk a little bit about Compass’ GTV market share performance in the context of whether geography contributed to it or the acquisitions? Whether on a year-over-year or quarter-on-quarter basis? And then second, I was just wondering, if you could talk a little bit about Compass’ mix of buy side versus sell side transactions. Is that evenly split on and are there any factors to consider as you think about, things that impact that split whether by market or brokerage size or target customer otherwise? Thank you.
Greg Hart : I’ll speak to – Mike, this is Greg. I’ll speak to the market share. One of the things that we’ve seen for the last three years is that our Q3 market share tends to be sequentially lower than Q2. And so, Q3 was year-over-year little bit down sequentially. We’ve seen that the last three years in a row. We believe that’s primarily just geo mixed across the entire country. The markets the company is in playing a smaller role in overall transactions in Q3 versus the rest of the country than they do in Q2. And so, we believe that’s one of the factors that that’s playing out in our market share in the quarter. In terms of buy side versus sell side, they’re pretty evenly split. I’ll defer to Robert, sort of if he had some thoughts he wanted to share on that?
Robert Reffkin : Yeah, I’m pretty sure that we’re around 55% buy side versus sell side. It has changed over time as the markets change. But that’s the most recent number that I have.
Mike Ng: Great. Thanks, Greg. Thanks, Robert.
Operator: Our next question comes from the line of Matthew Bouley with Barclays. Please go ahead.
Matthew Bouley: Hey. Good evening, everyone. Thank you for taking the questions. I wanted to touch on commission splits. I think even excluding the equity comp adjustments, it looked like they went the splits went 50 basis points or so in favor of the agent this quarter. I’m curious if there’s any anything driving that, any mix in there to be aware of? And if this is the direction of commissions splits that we should assume kind of as we model 2024? Thank you.
Kalani Reelitz : Yeah. Thanks Matt. It’s Kalani. Just a couple of things. I think that when we think of – think about our Q3 margin, you are right. It’s a favorable kind of year-over-year driven mainly by two big buckets. First, Q3 of last year was one of the two best margin percentage quarters in our history. So, we are facing tough prior year comps. I think second, we did see year-over-year margin change primarily due to mix shift both regional mix shift as well as production mix shift. And then also some impact from select number of agent split changes. So, those are the two big kind of in quarter drivers. I think as we think about and go forward, we continue to believe we have opportunity in our commission space. Again, just a reminder, quoting in mix.
So we continue to drive the overall book of our agents through the top 50%. Obviously, the problem side of that has better economics. We continue to think that we can drive also incentives as they come off. If you think about the last three or four years as we’ve recruited, I think we stopped about a year ago with incentives and so those burn off and improve. And then obviously, if you think about total, I think we have some more opportunity on the adjacent services. So I think this quarter has propping and some mix more than anything, but it shouldn’t be indicative of future modeling.
Robert Reffkin: Yeah, I just want to double down that point that this is not be indicative of the future. This is always an area of focus. But the bigger areas of focus over the last year was bringing our expenses down in a number of ways and we are very focused on this to ensure that it’s not a trend that we see in the future.
Matthew Bouley: Got it. Okay. It’s super helpful. Thank you for that detail. And then, back on the topic of commissions, certainly the kind of worry out there is that there would be additional changes compelled, beyond what happened in the Northwest MLS there, for example, a scenario where home buyers kind of have to pay their agents out of pocket as one possibility. So you know from your perspective and really great color around all the proactive efforts you’re making you mentioned something around kind of consolidation. I mean, so Robert, I mean, is this the type of thing where you are hearing from acquisition targets out there? Do you find that this is a type of thing that could drive a brokerages to want to join Compass? And just kind of what’s your thoughts on how that kind of overall industry market and consolidation may take shape?
