Slide 1: 3Q 2023 Business Update & Supplementary Information
3Q 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: Agents returning to Compass for the technology said…
Agents returning to Compass for the technology said… • "We miss the Compass technology. I've tried to make it work but life is so • “My previous brokerage has nothing like the Compass tech - it’s not even much harder now. So much less efficient and my costs of doing business close.” - David DiPetro,
Slide 4: 3Q 2023 Highlights
3Q 2023 Highlights FINANCIAL(1) OPERATIONAL $1,337M | -10% 14,055 | +4% 3Q 2023 Revenue & Y-o-Y Change 3Q 2023 Average Number of Principal Agents & Y-o-Y Change(2) 18.0% | Declined 50 BPS(3) 29,260 | +1% 3Q 2023 Revenue less Non-GAAP Commissions & 3Q 2023 Average Number of Agents & Y-o-Y Change(2) O
Slide 5: Compass Saw Macro Headwinds in 3Q 2023
Compass Saw Macro Headwinds in 3Q 2023 Total Revenue ($M) Gross Transaction Value ($B) 10% y-o-y decline 11% y-o-y decline $254.2 $6,421 $230.3 $6,018 $57.3 $1,494 $50.9 $1,337 $151.7 $3,721 $2,386 $97.5 2019 2020 2021 2022 3Q22 3Q23 2019 2020 2021 2022 3Q22 3Q23 Average Number of Principal Agents(1
Slide 6: Guidance
Guidance 4Q 2023 Revenue $1.1 - $1.2 billion Adjusted EBITDA $(35) - $(20) million Weighted-Average 483 – 487 million Share Count(1) (1) Weighted-average share count forecast excludes any potential special share issuances for mergers and acquisitions. FY 2023 Non-GAAP Operating $850 - $950 million E
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) September 30, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents $ 220.0 $ 361.9 Accounts receivable, net of allowance 41.0 36.6 Compass Concierge receivables, net of allowance 34.3 42.9 Other current assets 62.5 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (1) Total stock-based compensation expense included in the condensed consolidated statements Revenue $ 1,337.
Slide 10: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (in millions, unaudited) Nine Months Ended September 30, 2023 2022 Operating Activities Net loss $ (236.3) $ (443.5) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 68.5 65.1 Stock
Slide 11: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation (in millions, unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net loss attributable to Compass, Inc. $ (39.4) $ (154.2) $ (237.6) $ (443.4) Adjusted to exclude the following: Depreciation and amortization 21.3
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net cash provided by (used in) operating activities $ 15.0 $ (53.6) $ 12.8 $ (173.9) Less: Capital expenditures (2.8) (15.5) (8.9) (5
Slide 13: Reconciliation of GAAP to Non-GAAP Operating Expenses
Reconciliation of GAAP to Non-GAAP Operating Expenses (in millions, unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 GAAP Commissions and other related expense $ 1,096.2 $ 1,218.0 $ 3,111.1 $ 4,017.3 Adjusted to exclude the following: Stock-based compen
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, 2022 2022 2022 2022 2023 2023 2023 Sales and marketing $ 134.3 $ 143.7 $ 133.6 $ 121.5 $ 106.7
Slide 15: Revenue Less Non-GAAP Commissions & Other Related Expense Excluding Agent Equity Program
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, 2022 2022 2022 2022 2023 2023 2023 Revenue $ 1,397.0 $ 2,020.1 $ 1,493.7 $
Slide 16: Key Business Metrics and Non-GAAP Financial Measures
Key Business Metrics and Non-GAAP Financial Measures (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total Transactions(1) 48,134 54,606 138,227 168,819 Gross Transaction Value (in billions) $ 50.9 $ 57.3 $ 144.3 $ 187.8 (2) Average Number of Principa
Slide 17: Investor Contact
Investor Contact Richard Simonelli 973-896-8184 richard.simonelli@compass.com