NYSE$COMP

Compass Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Compass's performance improved with significant revenue growth and increased agent productivity.

Compass reported a record quarter with a 186% year-over-year increase in revenue to $1.95 billion. The company nearly doubled its market share and achieved Adjusted EBITDA profitability.

  • Revenue increased by 186% year-over-year to $1.95 billion.
  • GAAP Net Loss was $(7) million, improved from $(84) million in Q2 2020.
  • Adjusted EBITDA was a record $71 million, compared to $(56) million in Q2 2020.
  • Compass agents closed a record 65,743 total transactions, up 140% year-over-year.

Headline financials

Total Revenue

$1.95B

Previous: $682M+186.1%
EPS (adj)

-$0.02

Previous: -$0.24+91.6%
Principal Agents

10.6K

Previous: 8.5K+24.5%
Total Transactions

65.7K

Previous: 0
Gross Transaction Value

$77B

Previous: $0.00
Capital Expenditures

-$20.1M

No prior period
Free Cash Flow

-$27.2M

No prior period
Net Income

-$7.1M

Previous: -$84.2M+91.6%
Operating Income

-$7.8M

Previous: -$85.6M+90.9%
Gross Profit

$1.95B

Previous: $123M+1482.9%
Cash & Equivalents

$811M

No prior period
Total Assets

$1.91B

No prior period
Stock-Based Comp

$54.3M

No prior period

Revenue & EPS history

Compass · Revenue · Quarterly

$1.95B

Q2 2021+186.1%vs Q2 2020
Beat estimate in 3 of 10 quarters(30%)
ActualEstimate

Forward guidance

Compass provided guidance for Q3 2021 and FY2021, including revenue and Adjusted EBITDA expectations.

Tailwinds

  • 3Q21 Revenue of $1.65 billion to $1.75 billion.
  • FY2021 Revenue of $6.15 billion to $6.35 billion, compared to prior guidance of $5.35 billion to $5.55 billion.
  • FY2021 Adjusted EBITDA of $(85) million to $(45) million, compared to prior guidance of $(245) million to $(225) million.
  • Demonstrated confidence in achieving Adjusted EBITDA profitability in 2022.
  • Company expects to cover markets comprising roughly half of total transactions by the end of 2021.

Headwinds

  • 3Q21 Adjusted EBITDA of $(20) million to $0 million.
  • Risks related to general economic conditions and the real estate industry.
  • Uncertainties related to the impact of COVID-19 on the business.
  • Risks associated with attracting and retaining agents.
  • Potential impact of monetary policies and fluctuations in quarterly results.

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 Q2 2021

Historical avgQ2 2021

+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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