Jun 30, 2022

Compass Q2 2022 Earnings Report

Compass's performance reflected revenue growth despite challenging market conditions, with a focus on technology deployment and cost reduction.

Key Takeaways

Compass, Inc. reported a 4% year-over-year increase in revenue to $2.0 billion for the second quarter of 2022. The company's GAAP net loss increased to $101 million, and it announced a new cost reduction program targeting $320 million in run rate savings. Market share increased to 4.6% on an LTM basis.

Revenue increased by 4% year-over-year to $2.0 billion.

Market Share on an LTM basis increased approximately 50 bps to 4.6% compared to prior year.

GAAP net loss was $101 million, compared to a loss of $7 million in Q2 2021.

A new cost reduction program was announced with approximately $320 million in target run rate savings.

Total Revenue
$2.02B
Previous year: $1.95B
+3.5%
EPS
-$0.2
Previous year: -$0.02
+900.0%
Average Number of Principal Agents
12.98K
Previous year: 10.63K
+22.1%
Total Transactions
66.85K
Previous year: 65.74K
+1.7%
Gross Transaction Value
$76.8B
Previous year: $77B
-0.3%
Gross Profit
$367M
Previous year: $361M
+1.7%
Cash and Equivalents
$431M
Previous year: $811M
-46.8%
Free Cash Flow
-$29.9M
Previous year: $81.3M
-136.8%
Total Assets
$1.72B
Previous year: $1.91B
-10.3%

Compass

Compass

Forward Guidance

Compass anticipates revenue between $1.4 to $1.5 billion and an adjusted EBITDA loss between $(85) to $(60) million for Q3 2022. For the full year 2022, Compass projects revenue of $6.15 to $6.45 billion and an adjusted EBITDA loss of $(225) to $(150) million.