Dec 31, 2022

Compass Q4 2022 Earnings Report

Announced financial results for the fourth quarter and full year ended December 31, 2022.

Key Takeaways

Compass, Inc. reported a decrease in revenue by 31% year-over-year to $1.11 billion for Q4 2022. The GAAP Net Loss was $158 million, an improvement from a net loss of $175 million in 4Q21. The company's net cash and cash equivalents at the end of 4Q22 was $362 million, which includes a $150 million draw on the revolver.

Revenue decreased by 31% year-over-year to $1.11 billion as transactions declined 25%, which was attributable to lower industry wide transactions.

GAAP Net Loss was $158 million, an improvement from a net loss of $175 million in 4Q21.

Adjusted EBITDA was a loss of $75 million in 4Q22, compared to a loss of $51 million in 4Q21.

Compass’ net cash and cash equivalents at the end of 4Q22 was $362 million which includes a $150 million draw on the revolver.

Total Revenue
$1.11B
Previous year: $1.61B
-31.3%
EPS
-$0.36
Previous year: -$0.43
-16.3%
Gross Profit
$188M
Previous year: $265M
-28.9%
Cash and Equivalents
$362M
Previous year: $618M
-41.5%
Free Cash Flow
-$131M
Previous year: -$93.4M
+40.3%
Total Assets
$1.53B
Previous year: $1.8B
-14.9%

Compass

Compass

Forward Guidance

Compass expects revenue of $850 million to $950 million and Adjusted EBITDA of negative $90 million to negative $70 million for 1Q23. For FY23, Compass projects a Non-GAAP Operating Expense range of $850-$950 million.