Compass, Inc. (NYSE:COMP) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET Company Participants Richard Simonelli – Vice President-Investor Relations Robert Reffkin – Chief Executive Officer Greg Hart – Chief Operating Officer Scott Wahlers – Chief Accounting Officer Conference Call Participants Matthew Bouley – Barclays Michael Ng – Goldman Sachs Bernie McTernan – Needham and Co Justin Ages – Berenberg Operator Good afternoon. My name is Colby, and I’ll be your conference operator today. At th ...

3Q 2022 Business Update & Supplementary Information 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 results for the fourth quarter and full year of 2022, planned operating expenses and cash flow levels for 2023, and our expectations for operational achievemen ...

Compass Inc. (NYSE:COMP) Q2 2022 Earnings Conference Call August 15, 2022 4:30 PM ET Company Participants Richard Simonelli - Head of IR Robert Reffkin - CEO Greg Hart - COO Kristen Ankerbrandt - CFO Conference Call Participants Matthew Bouley - Barclays Brian Nowak - Morgan Stanley Jason Helfstein - Oppenheimer Ryan McKeveny - Zelman & Associates Justin Ages - Berenberg Operator Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like ...

Company Overview - As of June 30, 2022, Compass had over 28,000 agents on its platform, with an average of 12,979 principal agents, representing a 22.1% increase from the same period in 2021[156]. - The company completed its IPO on April 6, 2021, raising $438.7 million from the sale of 26.3 million shares at $18.00 per share[152]. - The ongoing COVID-19 pandemic has not adversely impacted Compass's business and financial results for the three and six months ended June 30, 2022[163]. Market Performance - During the three months ended June 30, 2022, Compass agents closed 66,846 total transactions, a 1.7% increase compared to the same period in 2021, while the gross transaction value remained flat at $76.8 billion[157]. - The gross transaction value for both the three months ended June 30, 2022, and 2021 represented 4.9% of residential real estate transacted in the U.S.[158]. - Macroeconomic conditions, including rising inflation and increasing mortgage interest rates, contributed to a slowdown in the U.S. residential real estate market during the first half of 2022[164]. - The residential real estate market is seasonal, with transaction volume typically highest in spring and summer, impacting Compass's revenue and operating expenses[159]. Financial Performance - Revenue for the three months ended June 30, 2022, was $2,020.1 million, an increase of $68.7 million or 3.5% compared to the same period in 2021[170]. - Revenue for the six months ended June 30, 2022, was $3,417.1 million, an increase of $351.8 million or 11.5% compared to the same period in 2021[170]. - Net loss for the three months ended June 30, 2022, was $(101.1) million, compared to $(7.1) million for the same period in 2021[170]. - Net loss attributable to Compass, Inc. for the three and six months ended June 30, 2022, was $(101.2) million and $(289.2) million, compared to $(7.1) million and $(219.5) million in the same periods of 2021[201]. - Adjusted EBITDA for the three and six months ended June 30, 2022, was $4.2 million and $(92.5) million, a significant decrease from $71.3 million and $40.7 million in the same periods of 2021[203]. Expenses - The company incurred $18.9 million in restructuring costs during the three months ended June 30, 2022, primarily due to severance and lease termination costs[151]. - Commissions and other related expenses for the three months ended June 30, 2022, were $1,652.9 million, an increase of $62.5 million or 3.9% compared to the same period in 2021[171]. - Sales and marketing expense increased to $154.9 million for the three months ended June 30, 2022, up $30.6 million or 24.6% year-over-year[174]. - Research and development expense reached $107.2 million for the three months ended June 30, 2022, up $33.7 million or 45.9% year-over-year[177]. - General and administrative expense decreased to $55.2 million for the three months ended June 30, 2022, down $4.2 million or 7.1% compared to the prior year[178]. Cash Flow and Financing - As of June 30, 2022, the company reported cash and cash equivalents of $430.5 million and an accumulated deficit of $1.9 billion[208]. - For the six months ended June 30, 2022, net cash used in operating activities was $120.3 million, primarily due to a net loss of $289.4 million adjusted for non-cash charges of $175.7 million[213]. - The company expects operating losses and negative cash flows to continue as it invests in business expansion, research and development, and sales and marketing activities[209]. - The company had a total outstanding balance of $30.4 million under its Concierge Facility and Revolving Credit Facility as of June 30, 2022[229]. - The company anticipates future capital requirements will depend on growth in the number of agents, geographic expansion, and investments in technology[210]. Restructuring and Liabilities - As of June 30, 2022, the remaining liability related to restructuring activities was $10.4 million, mainly for unpaid severance costs[151]. - The company is contingently liable for escrow and trust deposits totaling $259.0 million as of June 30, 2022[220]. Interest and Investment - Interest expense for the three and six months ended June 30, 2022, was $0.7 million and $1.4 million, representing a 16.7% and 27.3% increase compared to the same periods in 2021[183]. - Investment income, net was $0.3 million for the three months ended June 30, 2022, reflecting a 100% increase from the previous year[182]. - A 100-basis point increase or decrease in market interest rates would not result in a material change to the company's interest expense based on outstanding amounts[229].

Compass, Inc. (NYSE:COMP) Q1 2022 Earnings Conference Call May 12, 2022 5:00 PM ET Company Participants Rich Simonelli - Vice President of Investor Relations Robert Reffkin - Founder, Chairman & Chief Executive Officer Kristen Ankerbrandt - Chief Financial Officer Conference Call Participants Trevor Young - Barclays Justin Ages - Berenberg Capital Markets Ryan McKeveny - Zelman & Associates Mike Ng - Goldman Sachs Jason Helfstein - Oppenheimer Operator Ladies and gentlemen, thank you for standing by and wel ...

COMPASS 1Q 2022 Business Update & Supplementary Information 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 results for the second quarter and full year of 2022, long-term financial targets for full year of 2025, and our expectations for operational achieveme ...

Table of Contents Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Class A Common Stock, $0.00001 par value per share COMP The New York Stock Exchange ___________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ___________________________ FORM 10-Q ___________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR o TRANSITION REPORT ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40291 COMPASS, INC. (Exact name of registrant as specified in its charter) Delaware 30-0751604 (State or other jur ...

Financial Data and Key Metrics Changes - For the full year 2021, revenue grew 73% year-over-year to $6.4 billion, with a three-year CAGR of 94% [33] - Adjusted EBITDA improved from a loss of $325 million in 2019 to a loss of $156 million in 2020, reaching positive adjusted EBITDA of $2 million in 2021 [33] - GAAP net loss for 2021 was $494 million, compared to a net loss of $270 million the previous year, primarily due to increased non-cash stock-based compensation [34] - Cash at the end of 2021 was $618 million, with an untapped $350 million revolver available [35] Business Line Data and Key Metrics Changes - The total number of agents grew from 7,400 in Q4 2018 to 26,300 in Q4 2021, a 3.5 times increase [17] - Commissions as a percentage of revenue improved by 130 basis points year-over-year [36] - Transactions grew by 20% in Q4 2021, aligning with expectations [36] Market Data and Key Metrics Changes - Market share increased to 5.6% in 2021, up from 1.1% three years ago, reflecting a 40% year-over-year increase [12] - The company expects to continue gaining market share, projecting a principal agent count increase of 2,600 to 2,800 in 2022 [42] Company Strategy and Development Direction - The company aims to achieve a 10% adjusted EBITDA margin by 2025, targeting over $1.2 billion in adjusted EBITDA [6][50] - Focus on integrating adjacent services into the transaction flow, with a market opportunity in adjacent services estimated at $140 billion annually [27] - The company plans to expand its Title & Escrow services and mortgage business, with expectations to offer mortgages in most markets by the end of 2022 [29] Management's Comments on Operating Environment and Future Outlook - Management anticipates strong market growth for 2022, despite tight inventories and potential moderation in market growth rates [10][38] - The company is committed to improving profitability and free cash flow, expecting to be free cash flow positive by 2023 [6][54] - Management expressed optimism about revenue growth, citing strong demand and favorable supply-demand dynamics in the housing market [10][14] Other Important Information - The company has a strong technology advantage, which is expected to drive agent productivity and operational efficiency [30] - The company is shifting its R&D focus towards lowering the cost to serve agents and enhancing adjacent services [26] Q&A Session Summary Question: Path of revenue less commission margin improvement - Management highlighted that agent cohort maturation and hiring agents with more attractive splits are key drivers for margin improvement [58] Question: Strong attach rates for Title in DC - Management noted that integrating KVS into the platform and leveraging agent referrals contributed to increased attach rates [61] Question: Market share goals and expansion opportunities - Management reported that market share has grown from less than 1% to 5.6%, exceeding original goals, with consistent gains across various markets [64] Question: Timeline for adjacent services and M&A - Management indicated that the launch of mortgage services has been accelerated, with plans to explore additional adjacent services [66] Question: Areas for improving execution - Management identified opportunities to automate processes and improve transaction management to enhance agent productivity [68] Question: 2025 guidance and capital deployment - Management expects attach rates for adjacent services to be in the 12% to 15% range, with ongoing capital deployment focused on market expansions and M&A opportunities [76][79]

FY 2021 & Q4 Earnings Discussion & Supplementary Information 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 and market opportunity, including expected financial results for the first quarter and full year of 2022, long-term financial targets for full year of 2025, our continuous ability ...