Dec 31, 2023

Compass Q4 2023 Earnings Report

Compass increased agent count and market share, while also reducing operating expenses.

Key Takeaways

Compass reported a 1% year-over-year revenue decrease to $1.1 billion in Q4 2023. The company grew agent count and market share year-over-year and quarter-over-quarter. They anticipate being free cash flow positive for the full year 2024.

Revenue decreased by 1% year-over-year to $1.1 billion.

GAAP Net loss improved by 47% to $83.7 million.

Adjusted EBITDA improved by 69% to ($23.7) million.

National market share increased to 4.41%.

Total Revenue
$1.1B
Previous year: $1.11B
-1.0%
EPS
-$0.17
Previous year: -$0.36
-52.8%
Average Number of Principal Agents
14.69K
Total Transactions
40.62K
Gross Transaction Value
$41.8B
Gross Profit
$98.8M
Previous year: $188M
-47.6%
Cash and Equivalents
$167M
Previous year: $362M
-53.9%
Free Cash Flow
-$41M
Previous year: -$131M
-68.7%
Total Assets
$1.16B
Previous year: $1.53B
-24.3%

Compass

Compass

Forward Guidance

Compass anticipates Q1 2024 revenue between $975 million and $1,075 million and adjusted EBITDA between negative $22 million and negative $40 million. For FY 2024, they expect non-GAAP OPEX of $855 million - $875 million and to be free cash flow positive.

Positive Outlook

  • Revenue of $975 million to $1,075 million (Q1 2024)
  • Adjusted EBITDA of negative $22 million to negative $40 million (Q1 2024)
  • Non-GAAP OPEX of $855 million - $875 million (FY 2024)
  • Expects to be free cash flow positive for full year 2024