NYSE$COMP
Compass Inc. · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Compass reported first quarter 2023 results, exceeding guidance and consensus on Revenue and Adjusted EBITDA.
Compass's Q1 2023 revenue decreased by 31% year-over-year to $957 million, while achieving a GAAP Net loss of $150 million, an improvement from Q1 2022. The company's national market share increased to 4.5%, and it expects to be free cash flow positive in Q2 2023 and for the full year.
- Revenue decreased by 31% year-over-year to $957 million due to a 24% decline in transactions.
- GAAP Net loss was $150 million, an improvement from $188 million in Q1 2022.
- Adjusted EBITDA was $(67) million, compared to $(97) million in Q1 2022, an improvement of $30 million.
- National market share in Q1 2023 was 4.5%, up 17 basis points sequentially from Q4 2022.
Headline financials
Revenue & EPS history
Compass · Revenue · Quarterly
$957M
Forward guidance
Compass anticipates revenue between $1.45 billion and $1.6 billion and Adjusted EBITDA between $30 million and $50 million for Q2 2023, with expectations of being free cash flow positive for the full year. Non-GAAP Operating expense range of $850-$950 million.
Tailwinds
- Revenue of $1.45 billion to $1.6 billion
- Adjusted EBITDA of $30 million to $50 million
- Free cash flow positive
- Expense reduction initiatives
- Digitizing the real estate transaction process
Headwinds
- General macroeconomic conditions in the U.S. and globally (e.g., inflation)
- Economic and industry downturns
- The health of the U.S. real estate industry
- Risks generally incident to the ownership of residential real estate, including seasonal and cyclical trends (e.g., increases in mortgage interest rates, continued limited inventory, slowed consumer demand, reduced home affordability and declines in price appreciation and home prices)
- Current interest rates and changes in prevailing interest rates
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 18 quarterly earnings reports · overlaid with Q1 2023
+8.7%
Avg return
Earnings day
+6.9%
Avg return
5 days after
+4.2%
Avg return
30 days after
48%
10 / 21 earnings
Positive
+89.2%
Q3 2022
Best reaction
-18.8%
Q1 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.2% | -7.2% | — | |
| Q4 2025 | -2.7% | -5.1% | -29.2% | |
| Q3 2025 | +7.7% | +9.9% | +33.7% | |
| Q1 2025 | -18.8% | -18.0% | -18.6% | |
| Q4 2024 | +28.3% | +14.0% | +17.7% | |
| Q3 2024 | +17.6% | +23.3% | +31.3% | |
| Q2 2024 | -4.5% | -4.5% | +15.0% | |
| Q1 2024 | +19.4% | +21.2% | +5.9% | |
| Q4 2023 | +15.4% | +16.0% | +8.4% | |
| Q3 2023 | -5.5% | -10.5% | +21.5% | |
| Q2 2023 | -5.2% | -8.4% | -13.5% | |
| Q1 2023 | +43.2% | +38.6% | +39.0% | |
| Q4 2022 | -14.8% | -4.7% | -14.2% | |
| Q3 2022 | +89.2% | +84.9% | +38.9% | |
| Q2 2022 | -5.3% | -23.0% | -34.9% | |
| Q1 2022 | +29.5% | +27.3% | +26.8% | |
| Q4 2021 | +1.8% | -5.7% | -23.3% | |
| Q3 2021 | -8.7% | -10.9% | -17.7% | |
| Q2 2021 | +9.8% | +18.7% | +3.2% | |
| Q4 2020 | -2.1% | -1.7% | +0.6% | |
| Q1 2021 | -11.5% | -8.8% | -5.8% | |
| Q3 2020 | — | — | — | |
| Q2 2020 | — | — | — | |
| Q1 2020 | — | — | — | |
| Q4 2019 | — | — | — |
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