NYSE$COMP
Compass Inc. · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Compass reported Q3 2022 results with revenue down 14% year-over-year, driven by lower market volumes, but made progress on cost reductions and platform rollout.
Compass, Inc. announced its Q3 2022 financial results, reporting a revenue of $1.49 billion, a 14% decrease compared to Q3 2021. The company's GAAP Net Loss was $154 million, and Adjusted EBITDA was a loss of $42 million. Despite challenges in the housing market, Compass continued to roll out its national end-to-end workflow platform and achieved cost reductions in technology, engineering, and general & administrative expenses.
- Revenue decreased by 14% year-over-year to $1.49 billion due to a 12% decline in transactions.
- GAAP Net Loss was $154 million, compared to a loss of $100 million in Q3 2021, including non-cash and restructuring charges.
- Adjusted EBITDA was $(42) million, compared to $12 million in 3Q21.
- Average Number of Principal Agents was 13,314, an increase of 15% from 3Q21.
Headline financials
Revenue & EPS history
Compass · Revenue · Quarterly
$1.49B
Forward guidance
Compass anticipates a challenging housing market in 2023 before a return to stability and growth. The company is focused on providing tools and support for agents while implementing cost productivity measures to achieve future profitability.
Tailwinds
- Successfully rolled out the Compass national agent platform in all markets.
- Achieved significant cost reductions in technology, engineering and general and administrative expenses.
- Actions taken in the third quarter and in progress are expected to deliver targeted non-GAAP operating expenses after commissions and other related expenses of between $1.05 billion and $1.15 billion exiting 2022.
- Compass team remains laser focused on providing agents with technology, workflow tools, and marketing support to be successful in the market.
- Driving to implement fundamental cost productivity measures that will deliver profitability in the future.
Headwinds
- Housing market will remain challenged during 2023.
- Revenue of $1.15 billion to $1.30 billion is expected for Q4 2022.
- Adjusted EBITDA of negative $50 million to negative $80 million is expected for Q4 2022.
- Revenue of $6.05 billion to $6.20 billion is expected for FY22.
- Adjusted EBITDA of negative $185 million to negative $215 million is expected for FY22.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q3 2022
+8.7%
Avg return
Earnings day
+6.9%
Avg return
5 days after
+3.5%
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% | -11.9% | |
| 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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