Compass Q1 2024 Earnings Report
Key Takeaways
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.
Compass
Compass
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.