Slide 1: 1Q 2023 Business Update & Supplementary Information
1Q 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: 1Q 2023 Highlights
1Q 2023 Highlights FINANCIAL(1) OPERATIONAL $957.2M | -31% 13,515 | +6% 1Q 2023 Revenue & Y-o-Y Change 1Q 2023 Average Number of Principal Agents & Y-o-Y Growth(2) 18.6% | Improved 27 BPS(3) 28,599 | +6% 1Q 2023 Revenue less Non-GAAP Commissions & 1Q 2023 Total Average Agents & Y-o-Y Growth(2) Other
Slide 4: Compass Saw Macro Headwinds in 1Q 2023
Compass Saw Macro Headwinds in 1Q 2023 Total Revenue ($M) Gross Transaction Value ($B) 31% y-o-y decline 32% y-o-y decline $1,397 $254.2 $6,421 $230.3 $6,018 $53.7 $957 $151.7 $36.6 $3,721 $2,386 $97.5 2019 2020 2021 2022 1Q22 1Q23 2019 2020 2021 2022 1Q22 1Q23 Average Number of Principal Agents(1)
Slide 5: Guidance
Guidance 2Q 2023 Revenue $1.45 - $1.6 billion Adjusted EBITDA $30 - $50 million Weighted-Average 459 – 463 million Share Count Free Cash Flow Positive FY 2023 Non-GAAP Operating $850 - $950 million Expenses Free Cash Flow Positive 5
Slide 6: Appendix
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”). Appendix
Slide 7: Compass & Industry Historical Transactions and Sales Volume Seasonality
Compass & Industry Historical Transactions and Sales Volume Seasonality NAR Historical Sales Volume Seasonality Q1 Q2 Q3 Q4 2016 18% 30% 29% 24% 2017 19% 30% 28% 24% 2018 19% 30% 28% 23% 2019 18% 29% 29% 24% 2020 17% 21% 32% 30% 2021 18% 28% 28% 25% 2022 22% 31% 27% 20% Compass Historical GTV Season
Slide 8: 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 9: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (in millions, unaudited) March 31, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents $ 363.6 $ 361.9 Accounts receivable, net of allowance 56.7 36.6 Compass Concierge receivables, net of allowance 40.9 42.9 Other current assets 72.6 76.5 Tot
Slide 10: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations (in millions, except share and per share data, unaudited) Three Months Ended March 31, (1) Total stock-based compensation expense included in the condensed consolidated statements of operations is as follows (in millions): 2023 2022 Revenue $ 957.2 $ 1
Slide 11: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (in millions, unaudited) Three Months Ended March 31, 2023 2022 Operating Activities Net loss $ (150.2) $ (188.3) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 24.9 18.7 Stock-based compensati
Slide 12: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation (in millions, unaudited) Three Months Ended March 31, 2023 2022 Net loss attributable to Compass, Inc. $ (150.4) $ (188.0) Adjusted to exclude the following: Depreciation and amortization 24.9 18.7 Investment income, net (2.9) (0.1) Interest expense 3.2 0.7
Slide 13: Reconciliation of Operating Cash Flows to Free Cash Flow
Reconciliation of Operating Cash Flows to Free Cash Flow (in millions, unaudited) Three Months Ended March 31, 2023 2022 Net cash used in operating activities $ (55.5) $ (111.0) Less: Capital expenditures (3.5) (20.8) Free cash flow $ (59.0) $ (131.8) 13
Slide 14: Reconciliation of GAAP to Non-GAAP Operating Expenses
Reconciliation of GAAP to Non-GAAP Operating Expenses (in millions, unaudited) Three Months Ended March 31, 2023 2022 GAAP Commissions and other related expense $ 790.9 $ 1,146.4 Adjusted to exclude the following: Stock-based compensation (11.6) (17.0) Non-GAAP Commissions and other related expense
Slide 15: 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, 2022 2022 2022 2022 2023 Sales and marketing $ 134.3 $ 143.7 $ 133.6 $ 121.5 $ 106.7 Operations and support 96.5 97.8
Slide 16: 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, March 31, 2021 2021 2021 2021 2022 2022 2022 2022 2023 Revenu
Slide 17: Key Business Metrics and Non-GAAP Financial Measures
Key Business Metrics and Non-GAAP Financial Measures (unaudited) Three Months Ended March 31, 2023 2022 (1) Total Transactions 35,886 47,367 Gross Transaction Value (in billions) $ 36.6 $ 53.7 Average Number of Principal Agents(2) 13,515 12,794 Net loss attributable to Compass, Inc. (in millions) $
Slide 18: Investor Contact
Investor Contact Richard Simonelli 973-896-8184 richard.simonelli@compass.com