Slide 1: 2Q 2023 Business Update & Supplementary Information
2Q 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: 2Q 2023 Highlights
2Q 2023 Highlights FINANCIAL(1) OPERATIONAL $1,494M | -26% 13,633 | +3% 2Q 2023 Revenue & Y-o-Y Change 2Q 2023 Average Number of Principal Agents & Y-o-Y Growth(2) 18.1% | Improved 38 BPS(3) 28,717 | +2% 2Q 2023 Revenue less Non-GAAP Commissions & 2Q 2023 Average Number of Agents & Y-o-Y Growth(2) O
Slide 4: Compass Saw Macro Headwinds in 2Q 2023
Compass Saw Macro Headwinds in 2Q 2023 Total Revenue ($M) Gross Transaction Value ($B) 26% y-o-y decline 26% y-o-y decline $254.2 $6,421 $230.3 $6,018 $76.8 $2,020 $56.8 $151.7 $3,721 $1,494 $2,386 $97.5 2019 2020 2021 2022 2Q22 2Q23 2019 2020 2021 2022 2Q22 2Q23 Average Number of Principal Agents(1
Slide 5: Guidance
Guidance 3Q 2023 Revenue $1.3 - $1.4 billion Adjusted EBITDA $15 - $35 million Weighted-Average Share Count(1) 466 – 470 million Free Cash Flow Positive FY 2023 Non-GAAP Operating $850 - $950 million Expenses Free Cash Flow Positive (1) Weighted-average share count forecast excludes any potential sp
Slide 6: 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 7: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (in millions, unaudited) June 30, 2023 December 31, 2022 Assets Current assets Cash and cash equivalents $ 335.4 $ 361.9 Accounts receivable, net of allowance 58.4 36.6 Compass Concierge receivables, net of allowance 36.4 42.9 Other current assets 63.7 76.5 Tota
Slide 8: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations (in millions, except share and per share data, unaudited) Three Months Ended June 30, Six Months Ended June 30, (1) Total stock-based compensation expense included in the condensed consolidated statements of 2023 2022 2023 2022 operations is as follows
Slide 9: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (in millions, unaudited) Six Months Ended June 30, 2023 2022 Operating Activities Net loss $ (197.1) $ (289.4) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 47.2 44.1 Stock-based compensation
Slide 10: Net Loss to Adjusted EBITDA Reconciliation
Net Loss to Adjusted EBITDA Reconciliation (in millions, unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net loss attributable to Compass, Inc. $ (47.8) $ (101.2) $ (198.2) $ (289.2) Adjusted to exclude the following: Depreciation and amortization 22.3 25.4 47.2
Slide 11: Reconciliation of Operating Cash Flows to Free Cash Flow
Reconciliation of Operating Cash Flows to Free Cash Flow (in millions, unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net cash provided by (used in) operating activities $ 53.3 $ (9.3) $ (2.2) $ (120.3) Less: Capital expenditures (2.6) (20.6) (6.1) (41.4) Free c
Slide 12: Reconciliation of GAAP to Non-GAAP Operating Expenses
Reconciliation of GAAP to Non-GAAP Operating Expenses (in millions, unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 GAAP Commissions and other related expense $ 1,224.0 $ 1,652.9 $ 2,014.9 $ 2,799.3 Adjusted to exclude the following: Stock-based compensation — (6
Slide 13: 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, 2022 2022 2022 2022 2023 2023 Sales and marketing $ 134.3 $ 143.7 $ 133.6 $ 121.5 $ 106.7 $ 104.3 Operations
Slide 14: 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, June 30, 2021 2021 2021 2021 2022 2022 2022 2022 20
Slide 15: Key Business Metrics and Non-GAAP Financial Measures
Key Business Metrics and Non-GAAP Financial Measures (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Total Transactions(1) 54,207 66,846 90,093 114,213 Gross Transaction Value (in billions) $ 56.8 $ 76.8 $ 93.4 $ 130.5 Average Number of Principal Agents(2) 13,63
Slide 16: Investor Contact
Investor Contact Richard Simonelli 973-896-8184 richard.simonelli@compass.com