Dec 31, 2021

Compass Q4 2021 Earnings Report

Compass's Q4 2021 results were released, showcasing a 31% increase in revenue year-over-year and a 20% increase in transactions.

Key Takeaways

Compass, Inc. reported a 31% increase in revenue for Q4 2021, reaching $1.6 billion. The company's net loss for the quarter was $175 million.

Revenue for the fourth quarter 2021 was $1.6 billion, an increase of 31% year-over-year.

Compass agents closed a fourth quarter record 56,912 Total Transactions, up 20% year-over-year.

Net loss was $175 million for the fourth quarter.

Average Number of Principal Agents was 12,176, an increase of 560 from 3Q21.

Total Revenue
$1.61B
Previous year: $1.23B
+31.0%
EPS
-$0.43
Previous year: -$0.246
+74.8%
Average Number of Principal Agents
12.18K
Previous year: 9.65K
+26.2%
Total Transactions
56.91K
Previous year: 47.43K
+20.0%
Gross Transaction Value
$64.3B
Previous year: $51.9B
+23.9%
Gross Profit
$265M
Previous year: $221M
+20.0%
Cash and Equivalents
$618M
Previous year: $440M
+40.5%
Free Cash Flow
-$93.4M
Previous year: $21.5M
-534.4%
Total Assets
$1.8B
Previous year: $1.37B
+31.9%

Compass

Compass

Forward Guidance

Compass provided revenue and Adjusted EBITDA guidance for FY2022 and Q1 2022 and financial targets for 2025.

Positive Outlook

  • FY2022 Revenue of $7.9 billion to $8.1 billion
  • FY2022 Adjusted EBITDA of at least $40 million
  • 1Q22 Revenue expected to be 16.25% - 16.75% of FY2022 Outlook
  • 2025 Adjusted EBITDA Margin of 10% and minimum Adjusted EBITDA of $1.2 billion
  • 2025 Free Cash Flow Margin of at least 8-9%

Challenges Ahead

  • 1Q22 Adjusted EBITDA of $(100) million to $(110) million