Sep 30, 2023

Compass Q3 2023 Earnings Report

Compass achieved positive free cash flow and increased market share in Q3 2023.

Key Takeaways

Compass, Inc. reported a 10% decrease in revenue year-over-year to $1.34 billion for Q3 2023, while achieving positive free cash flow of $12 million. The company's national market share increased by 26 basis points year-over-year to 4.4%. Compass is targeting $850 million annualized non-GAAP operating expense for 2024.

Revenue decreased by 10% year-over-year to $1.34 billion.

GAAP Net loss was $39 million, an improvement of 74% from Q3 2022.

Free cash flow was $12 million in Q3 2023.

National market share increased to 4.4%, up 26 basis points year-over-year.

Total Revenue
$1.34B
Previous year: $1.49B
-10.4%
EPS
-$0.08
Previous year: -$0.36
-77.8%
Average Number of Principal Agents
14.06K
Previous year: 13.31K
+5.6%
Total Transactions
48.13K
Previous year: 54.61K
-11.9%
Gross Transaction Value
$50.9B
Previous year: $57.3B
-11.2%
Gross Profit
$241M
Previous year: $276M
-12.5%
Cash and Equivalents
$220M
Previous year: $355M
-38.0%
Free Cash Flow
$12.2M
Previous year: -$69.1M
-117.7%
Total Assets
$1.26B
Previous year: $1.59B
-20.5%

Compass

Compass

Forward Guidance

Compass expects revenue between $1.1 billion and $1.2 billion and Adjusted EBITDA between negative $35 million and negative $20 million for Q4 2023.