Slide 1: 4Q & FY 2023 Business Update & Supplementary Information
4Q & FY 2023 Business Update & Supplementary Information 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements, which are statements other than statements of historical facts, and statements in the future tense. These statements include, but are not limited to, statements regarding our future performance, including expected financial
Slide 3: 4Q 2023 Highlights
4Q 2023 Highlights FINANCIAL(1) OPERATIONAL $1,096M | -1% 14,689 | +8% 4Q 2023 Revenue & Y-o-Y Change 4Q 2023 Average Number of Principal Agents & Y-o-Y Change(2) 18.3% | Declined 9 BPS(3) 29,744 | +2% 4Q 2023 Revenue less Non-GAAP Commissions & 4Q 2023 Average Number of Agents & Y-o-Y Change(2) Oth
Slide 4: FY 2023 Highlights
FY 2023 Highlights FINANCIAL(1) OPERATIONAL $4,885M | -19% 13,973 | +5% FY 2023 Revenue & Y-o-Y Change FY 2023 Average Number of Principal Agents & Y-o-Y Change(2) 18.2% | Improved 4 BPS(3) 28,781 | +1% FY 2023 Revenue less Non-GAAP Commissions & FY 2023 Average Number of Agents & Y-o-Y Change(2) Ot
Slide 5: Compass Saw Continued Macro Headwinds in 2023
Compass Saw Continued Macro Headwinds in 2023 Total Revenue ($M) Gross Transaction Value ($B) 1% y-o-y decline 2% y-o-y decline $254.2 $6,421 $230.3 $6,018 $1,107 $1,096 $42.5 $41.8 $4,885 $186.1 $151.7 $3,721 2020 2021 2022 2023 4Q22 4Q23 2020 2021 2022 2023 4Q22 4Q23 Average Number of Principal Ag
Slide 6: Guidance
Guidance 1Q 2024 Revenue $975 - $1,075 million Adjusted EBITDA ($40) - ($22) million Weighted-Average 489 - 492 million Share Count FY 2024 Non-GAAP Operating $855 - $875 million Expenses(1) Free Cash Flow Positive (1) Non-GAAP Operating Expenses excludes Commissions and other related expenses, Depr
Slide 7: Financial Tables
Effective July 1, 2023, pursuant to an amendment entered into on May 1, 2023 by and among the parties to the Revolving Credit Facility, the London Interbank Offered Rate (“LIBOR”) benchmark will be replaced with a new benchmark based on the Secured Overnight Financing Rate (“SOFR”). Financial Tables
Slide 8: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (in millions, unaudited) December 31, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents $ 166.9 $ 361.9 Accounts receivable, net of allowance 36.6 36.6 Compass Concierge receivables, net of allowance 24.0 42.9 Other current assets 54.5 76.5
Slide 9: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations (in millions, except share and per share data, unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 (1) Total stock-based compensation expense included in the condensed consolidated statements Revenue $ 1,096.4 $ 1,107
Slide 10: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (in millions, unaudited) Year Ended December 31, 2023 2022 Operating Activities Net loss $ (320.1) $ (601.5) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 90.0 86.3 Stock-based compensation 15
Slide 11: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation (in millions, unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net loss attributable to Compass, Inc. $ (83.7) $ (158.1) $ (321.3) $ (601.5) Adjusted to exclude the following: Depreciation and amortization 21.5 21.2 90.
Slide 12: Reconciliation of Operating Cash Flows to Free Cash Flow
Reconciliation of Operating Cash Flows to Free Cash Flow (in millions, unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net cash used in operating activities $ (38.7) $ (117.8) $ (25.9) $ (291.7) Less: Capital expenditures (2.3) (13.2) (11.2) (70.1) Free cash fl
Slide 13: Reconciliation of GAAP to Non-GAAP Operating Expenses
Reconciliation of GAAP to Non-GAAP Operating Expenses (in millions, unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 GAAP Commissions and other related expense $ 895.9 $ 918.8 $ 4,007.0 $ 4,936.1 Adjusted to exclude the following: Stock-based compensation — (22.
Slide 14: Total Non-GAAP Operating Expenses Excluding Commissions and Other Related Expense
Total Non-GAAP Operating Expenses Excluding Commissions and Other Related Expense (in millions, unaudited) Three Months Ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, 2022 2022 2022 2022 2023 2023 2023 2023 Sales and marketing $ 134.3 $ 143.7 $ 133.
Slide 15: Revenue Less Non-GAAP Commissions & Other Related Expense Excluding Agent Equity Program Contributions
Revenue Less Non-GAAP Commissions & Other Related Expense Excluding Agent Equity Program Contributions (in millions, unaudited) Three Months Ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, 2022 2022 2022 2022 2023 2023 2023 2023 Revenue $ 1,397.0 $ 2
Slide 16: Key Business Metrics and Non-GAAP Financial Measures
Key Business Metrics and Non-GAAP Financial Measures (unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Total Transactions(1) 40,621 42,719 178,848 211,538 Gross Transaction Value (in billions) $ 41.8 $ 42.5 $ 186.1 $ 230.3 Average Number of Principal Agents(2) 1
Slide 17: Investor Contact
Investor Contact Richard Simonelli 973-896-8184 richard.simonelli@compass.com