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Sep 30, 2021
Compass Q3 2021 Earnings Report
Compass reported a 47% increase in revenue, positive Adjusted EBITDA, and raised FY 2021 guidance.
Key Takeaways
Compass, Inc. announced its Q3 2021 consolidated financial results, with revenue growing 47% year-over-year to $1.74 billion. The company reported a GAAP Net Loss of $100 million and an Adjusted EBITDA of $12 million. Compass's technology and services platform facilitated a 36% transaction growth compared to the prior year.
Revenue increased by 47% year-over-year to $1.74 billion.
GAAP Net Loss was $(100) million.
Adjusted EBITDA was $12 million.
Total Transactions increased 36% year-over-year.
Compass
Compass
Forward Guidance
Compass provided guidance for Q4 2021 and FY2021.
Positive Outlook
- FY2021 Revenue of $6.375 billion to $6.425 billion, compared to prior guidance of $6.15 billion to $6.35 billion.
- FY2021 Adjusted EBITDA of $(25) million to $(5) million, compared to prior guidance of $(85) million to $(45) million.
- We remain confident in achieving Adjusted EBITDA profitability in 2022.
- Compass expanded its Title & Escrow offering into 4 new states, increasing our coverage to approximately half of our Total Transaction volume, effectively giving us more opportunities to drive incremental revenue on each of our transactions.
- OriginPoint has obtained the required licenses to provide mortgage services in 6 states to date, is hiring loan officers, and has set up its first warehouse line of credit.
Challenges Ahead
- 4Q21 Revenue of $1.575 billion to $1.625 billion.
- 4Q21 Adjusted EBITDA of $(75) million to $(55) million.
- GAAP Net Loss was $(100) million, compared to $(14) million in 3Q20.
- GAAP Net Loss margin was (5.7%), compared to (1.1%) in 3Q20.
- Adjusted EBITDA margin was 0.7%, compared to 0.9% in 3Q20.