NYSE$COMP

Compass Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Compass exceeded expectations by growing revenue 10% year-over-year and significantly reducing non-GAAP operating expenses, generating positive free cash flow.

Compass reported a strong Q1 2024, exceeding expectations with a 10% year-over-year revenue increase to $1.05 billion and positive free cash flow of $5.9 million. The company also grew market share and agent count while reducing non-GAAP operating expenses.

  • Revenue increased by 10% year-over-year to $1.05 billion.
  • GAAP Net loss improved by $17.5 million from Q1 2023, totaling $132.9 million.
  • Free cash flow was positive at $5.9 million, an improvement of $64.9 million year-over-year.
  • Principal agent count increased by 7.3% year-over-year, adding 990 agents.

Headline financials

Total Revenue

$1.05B

Previous: $957M+10.1%
EPS

-$0.27

Previous: -$0.33+18.2%
Principal Agents

14.6K

Previous: 13.5K+8.0%
Total Transactions

38.4K

Previous: 35.9K+7.1%
Gross Transaction Value

$40.1B

Previous: $36.6B+9.6%
Quarterly Agent Retention

96.3%

No prior period
Capital Expenditures

-$2.7M

Previous: -$3.5M+22.9%
Free Cash Flow

-$136M

Previous: -$154M+11.9%
Net Income

-$133M

Previous: -$150M+11.6%
Operating Income

-$132M

Previous: -$148M+11.0%
Gross Profit

$1.05B

Previous: $957M+10.1%
R&D Expense

$47M

No prior period
Stock-Based Comp

$32.9M

Previous: $44.9M-26.7%

Revenue & EPS history

Compass · Revenue · Quarterly

$1.05B

Q1 2024+10.1%vs Q1 2023
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Forward guidance

Compass provided Q2 2024 revenue guidance of $1.6 billion to $1.7 billion and adjusted EBITDA guidance of $55 million to $75 million. The company expects to be free cash flow positive for the full year 2024.

Tailwinds

  • Revenue of $1.6 billion to $1.7 billion is expected for Q2 2024.
  • Adjusted EBITDA of $55 million to $75 million is expected for Q2 2024.
  • The company anticipates being free cash flow positive for the full year 2024.
  • Non-GAAP OPEX is projected to be $867 million to $887 million for FY 2024, including the impact of the Latter & Blum acquisition.
  • The company expects significant upside when the market begins to recover.

Headwinds

  • The company's Q1 2024 GAAP net loss was $132.9 million.
  • The net loss includes a $57.5 million expense for the proposed settlement of class action lawsuits.
  • The net loss includes non-cash stock-based compensation expenses of $32.9 million.
  • The net loss includes depreciation and amortization of $20.8 million.
  • The company's adjusted EBITDA for Q1 2024 was still negative at ($20.1) million, although it improved significantly from the previous year.

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 2024

Historical avgQ1 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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