NYSE$COMP

Compass Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Achieved positive free cash flow and market share gains.

Compass, Inc. reported its Q2 2023 financial results, achieving positive free cash flow and marking the third consecutive quarter of market share gains. The company's net loss improved significantly, and adjusted EBITDA showed substantial growth despite a decrease in revenue. Compass also continued to enhance its technology platform and maintain high agent retention rates.

  • Achieved positive free cash flow in Q2 2023.
  • National market share increased to 4.6%, marking the third consecutive quarter of gains.
  • GAAP Net loss improved by 53% year-over-year to $48 million.
  • Adjusted EBITDA improved to $30 million, compared to $4 million in Q2 2022.

Headline financials

Total Revenue

$1.49B

Previous: $2.02B-26.0%
EPS (adj)

-$0.10

Previous: -$0.20+50.0%
Principal Agents

13.6K

Previous: 13.0K+5.0%
Total Transactions

54.2K

Previous: 66.8K-18.9%
Gross Transaction Value

$56.8B

Previous: $76.8B-26.0%
Capital Expenditures

-$6.1M

Previous: -$41.4M+85.3%
Free Cash Flow

-$53.9M

Previous: -$143M+62.2%
Net Income

-$47.8M

Previous: -$101M+52.8%
Operating Income

-$44.6M

Previous: -$99.3M+55.1%
Gross Profit

$1.49B

Previous: $2.02B-26.0%
Cash & Equivalents

$335M

Previous: $431M-22.1%
Total Assets

$1.42B

Previous: $1.72B-17.0%
Stock-Based Comp

$39M

No prior period

Revenue & EPS history

Compass · Revenue · Quarterly

$1.49B

Q2 2023-26%vs Q2 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Forward guidance

Compass anticipates revenue between $1.3 billion and $1.4 billion and adjusted EBITDA between $15 million and $35 million for Q3 2023. The company also expects to be free cash flow positive for the full year 2023 and anticipates non-GAAP operating expenses to be between $850 million and $950 million.

Tailwinds

  • Revenue of $1.3 billion to $1.4 billion
  • Adjusted EBITDA of $15 million to $35 million
  • Free cash flow positive FY 2023 Outlook
  • Non-GAAP Operating expense range of $850-$950 million
  • Company expects to achieve its goal of a $900 million annualized operating expense run rate in Q4 2023

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 2023

Historical avgQ2 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

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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