Slide 1: 4Q & FY 2022 Business Update & Supplementary Information
4Q & FY 2022 Business Update & Supplementary Information
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 2022 Highlights
4Q 2022 Highlights FINANCIAL(1) OPERATIONAL $1.11B | -31% 13,426 | +10% 4Q22 Revenue & Y-o-Y Change 4Q22 Average Number of Principal Agents & Y-o-Y Growth 80.9% | +20 BPS 29,018 | +13% 4Q22 Non-GAAP Commission & Other Related 4Q22 Total Avg Agents & Y-o-Y Growth Expenses as a % of Revenue & Y-o-Y Ch
Slide 4: FY 2022 Highlights
FY 2022 Highlights FINANCIAL(1) OPERATIONAL $6.02B | -6% 13,073 | +18% FY22 Revenue & Y-o-Y Change FY22 Average Number of Principal Agents & Y-o-Y Growth 81.0% | +30 BPS 28,237 | +22% FY22 Non-GAAP Commission & Other Related FY22 Total Avg Agents & Y-o-Y Growth Expenses as a % of Revenue & Y-o-Y Cha
Slide 5: Compass Saw Macro Headwinds in 2022
Compass Saw Macro Headwinds in 2022 Total Revenue ($M) Gross Transaction Value ($B) 31% y-o-y decline 34% y-o-y decline $6,421 $1,612 $64.3 $6,018 $254.2 $230.3 $1,107 $42.5 $3,721 $151.7 $2,386 $97.5 2019 2020 2021 2022 4Q21 4Q22 2019 2020 2021 2022 4Q21 4Q22 Average Number of Principal Agents Tota
Slide 6: Agent Count Growth and Transactions Trends
Agent Count Growth and Transactions Trends CAGRs 4Q19 – 4Q22: CAGR 4Q19 – 4Q22: Total average agents: 25% GTV (LTM): 33% Average principal agents: 20% Industry GTV (LTM)(1): 15% 1000 Compass transactions (LTM): 34% 35,000 $350 Industry transactions (LTM)(1): (2)% 0.05 4.6% 4.6% 4.6% 4.6% 900 4.5% 29
Slide 7: Guidance
Guidance 1Q 2023 Revenue $850 - $950 million Adjusted EBITDA $(90) - $(70) million Weighted-Average 447 – 452 million Share Count FY 2023 Non-GAAP $850 - $950 million Operating Expenses 7
Slide 8: Appendix
COMPASS Appendix
Slide 9: 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 10: Financial Tables
COMPASS Financial Tables
Slide 11: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (in millions, unaudited) December 31, 2022 December 31, 2021 Assets Current assets Cash and cash equivalents $ 361.9 $ 618.3 Accounts receivable, net of allowance 36.6 48.5 Compass Concierge receivables, net of allowance 42.9 32.9 Other current assets 76.5 94.9
Slide 12: 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, (1) Total stock-based compensation expense included in the consolidated statements of operations is as 2022 2021 2022 2021 Revenue $ 1,107
Slide 13: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (in millions, unaudited) Year Ended December 31, 2022 2021 Operating Activities Net loss $ (601.5) $ (494.1) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 86.3 64.4 Stock-based compensation 23
Slide 14: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation (in millions, unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Net loss attributable to Compass, Inc. $ (158.1) $ (174.8) $ (601.5) $ (494.1) Adjusted to exclude the following: Depreciation and amortization 21.2 19.3 86
Slide 15: 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, 2022 2021 2022 2021 Net cash used in operating activities $ (117.8) $ (76.9) $ (291.7) $ (28.6) Less: Capital expenditures (13.2) (16.5) (70.1) (50.1) Free cash f
Slide 16: Reconciliation of GAAP to Non-GAAP Operating Expenses
Reconciliation of GAAP to Non-GAAP Operating Expenses (in millions, unaudited) Three Months Ended Year Ended March 31, June 30, September 30, December 31, December 31, 2022 2022 2022 2022 2022 GAAP Commissions and other related expense $ 1,146.4 $ 1,652.9 $ 1,218.0 $ 918.8 $ 4,936.1 Adjusted to excl
Slide 17: Non-GAAP Operating Expenses Excluding Commissions and Other Related Expense
Non-GAAP Operating Expenses Excluding Commissions and Other Related Expense (in millions, unaudited)
Slide 18: 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, 2022 2021 2022 2021 Total Transactions 42,719 56,912 211,538 225,272 Gross Transaction Value (in billions) $ 42.5 $ 64.3 $ 230.3 $ 254.2 Average Number of Principal Agents 13,426
Slide 19: Non-GAAP Commissions & Other Related Expense Excluding Agent Equity Program Contributions
Non-GAAP Commissions & Other Related Expense Excluding Agent Equity Program Contributions (in millions, unaudited) 19
Slide 20: Investor Contact
Investor Contact Richard Simonelli 973-896-8184 richard.simonelli@compass.com