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Mar 31, 2021

Compass Q1 2021 Earnings Report

Compass reported strong revenue growth and improving Adjusted EBITDA as agents increasingly utilized Compass’ proprietary platform.

Key Takeaways

Compass reported an 80% year-over-year revenue increase to $1.1 billion in Q1 2021. The company's GAAP net loss was $212 million, which included a one-time non-cash charge of $149 million for stock-based compensation related to the IPO. Excluding this charge, the Non-GAAP Net Loss was $64 million. The company's market share increased to 5.2% in Q1 2021, up from 3.8% in Q1 2020.

Revenue of $1.1 billion, up 80% year-over-year

GAAP Net Loss of $212 million includes a one-time non-cash charge of $149 million for stock-based compensation in connection with the Company’s IPO. Excluding this charge, Non-GAAP Net Loss was $64 million

Total Transactions of 40,268, up 67% year-over-year, faster than the 14% transaction growth for the residential real estate market

Gross Transaction Value (“GTV”) of $43.8 billion, up 75% year-over-year

Total Revenue
$1.11B
Previous year: $620M
+79.7%
EPS
-$1.67
Previous year: -$0.374
+346.4%
Average Number of Principal Agents
9.81K
Previous year: 8.15K
+20.4%
Total Transactions
40.27K
Previous year: 24.12K
+67.0%
Gross Transaction Value
$43.8B
Previous year: $25B
+75.2%
Gross Profit
$172M
Previous year: $111M
+54.5%
Cash and Equivalents
$330M
Free Cash Flow
-$57.3M
Total Assets
$1.37B

Compass

Compass

Forward Guidance

Compass provided guidance for Q2 2021 with revenue between $1.5 billion and $1.6 billion, and Adjusted EBITDA between $(10) million and $10 million. For FY2021, revenue is expected to be between $5.35 billion and $5.55 billion, and Adjusted EBITDA between $(245) million and $(225) million.

Positive Outlook

  • 2Q21 Revenue of $1.5 billion to $1.6 billion.
  • 2Q21 Adjusted EBITDA of $(10) million to $10 million.
  • FY2021 Revenue of $5.35 billion to $5.55 billion.
  • FY2021 Adjusted EBITDA of $(245) million to $(225) million.