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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------------------------------------------------------|----------------------------------------- ...

2021 Q3 S H A R E H O L D E R L E T T E R 2 | --- | --- | --- | |---------------------------------------------------|----------------------------------------------|---------------------| | | | | | 2 0 2 1 Q 3 S H A R E H O L D E R L E T T E R | | | | HIGHLIGHTS | 11,616 | | | | Average Number of Principal Agents 1 | +31% Year-Over-Year | | | 62,349 | +36% | | | Total Transactions 2 | Year-Over-Year | | | $69.1 B | +45% | | | Gross Transaction Value 3 | Year-Over-Year | | | $1.7 B Revenue | +47% Year-Over-Ye ...

Compass, Inc. (NYSE:COMP) Q3 2021 Earnings Conference Call November 10, 2021 4:30 PM ET Company Participants Ben Barrett - Vice President, Investor Relations Robert Reffkin - Founder, Chairman and Chief Executive Officer Kristen Ankerbrandt - Chief Financial Officer Conference Call Participants Ross Sandler - Barclays Jason Helfstein - Oppenheimer Daniel Adam - Loop Capital Markets Operator Good day, everyone and welcome to the Compass Third Quarter 2021 Earnings Conference Call. My name is Berl [ph] and I ...

Compass, Inc. (NYSE:COMP) Q2 2021 Earnings Conference Call August 9, 2021 4:30 PM ET Company Participants Ben Barrett - Vice President, Investor Relations Robert Reffkin - Founder, Chairman, & Chief Executive Officer Kristen Ankerbrandt - Chief Financial Officer Conference Call Participants Alex Wong - Morgan Stanley Mike Ng - Goldman Sachs Jason Helfstein - Oppenheimer Ross Sandler - Barclays Mayank Tandon - Needham Akaash Agarwal - UBS Matthew Gaudioso - Compass Point Operator Good day and welcome to the ...

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, highlighting significant revenue growth, reduced net loss, and a strengthened balance sheet post-IPO Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $810.7 | $440.1 | | Total assets | $1,911.6 | $1,365.1 | | Total liabilities | $836.1 | $741.3 | | Total stockholders' equity (deficit) | $1,075.5 | $(862.9) | Condensed Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,951.4 | $682.1 | $3,065.3 | $1,302.0 | | Loss from operations | $(7.8) | $(85.6) | $(220.4) | $(219.8) | | Net loss | $(7.1) | $(84.2) | $(219.5) | $(216.9) | | Net loss per share | $(0.02) | $(0.77) | $(0.87) | $(1.99) | Condensed Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $44.1 | $(159.9) | | Net cash (used in) provided by investing activities | $(123.9) | $24.4 | | Net cash provided by financing activities | $450.4 | $3.0 | - In April 2021, the company completed its IPO, issuing **26,296,438 shares** and receiving net proceeds of **$438.7 million**[39](index=39&type=chunk) - In connection with the IPO, all outstanding convertible preferred stock was converted into **223,033,725 shares** of common stock[39](index=39&type=chunk) - On March 31, 2021, the company recognized **$148.5 million** in stock-based compensation expense related to the vesting of certain RSUs and other equity awards upon the effectiveness of the IPO registration statement[40](index=40&type=chunk)[108](index=108&type=chunk) - During the first six months of 2021, the company completed several acquisitions, including KVS Title and Glide Labs, for a total consideration of **$117.0 million** in cash, **$5.8 million** in stock, and up to **$4.7 million** in contingent payments[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - These acquisitions resulted in the recognition of **$57.6 million** in goodwill[61](index=61&type=chunk) - Subsequent to the quarter end, on July 13, 2021, the company announced a joint venture with Guaranteed Rate, Inc. to form a new mortgage origination company called OriginPoint[131](index=131&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong performance, attributing significant revenue growth to increased agents and transactions, improved operating leverage, positive Adjusted EBITDA, and enhanced IPO liquidity [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Revenue surged in Q2 and H1 2021 due to increased agents and transactions, with operating expenses decreasing as a percentage of revenue, significantly reducing the loss from operations Revenue and Transaction Growth | Metric | Three Months Ended June 30, 2021 | YoY Change | Six Months Ended June 30, 2021 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Revenue (millions) | $1,951.4 | +186.1% | $3,065.3 | +135.4% | | Total Transactions | 65,743 | +140.3% | 106,011 | +106.0% | | Avg. Principal Agents | 10,629 | +24.5% | 10,221 | +22.5% | - Commissions and other related expense, excluding non-cash stock-based compensation, decreased as a percentage of revenue to **80.9%** in Q2 2021 from **81.9%** in Q2 2020, primarily due to changes in the mix of commission arrangements and geographic mix[172](index=172&type=chunk) - Sales and marketing expense, excluding non-cash stock-based compensation, decreased significantly as a percentage of revenue to **5.9%** in Q2 2021 from **12.9%** in Q2 2020, demonstrating economies of scale[173](index=173&type=chunk) - Research and development and Operations and support expenses also decreased as a percentage of revenue, excluding non-cash stock-based compensation, reflecting improved operating leverage as revenue grew faster than support and technology investment costs[175](index=175&type=chunk)[176](index=176&type=chunk) [Key Business Metrics and Non-GAAP Financial Measures](index=33&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Key business metrics show substantial growth in transactions, GTV, and agents, leading to a significant turnaround in non-GAAP profitability with positive Adjusted EBITDA Key Business Metrics | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Total Transactions | 65,743 | 27,357 | | Gross Transaction Value (billions) | $77.0 | $26.9 | | Average Number of Principal Agents | 10,629 | 8,534 | Reconciliation of Net Loss to Adjusted EBITDA (in millions) | Line Item | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net loss | $(7.1) | $(84.2) | | Stock-based compensation | $54.3 | $13.0 | | Depreciation and amortization | $14.9 | $12.7 | | Other adjustments | $9.2 | $2.0 | | **Adjusted EBITDA** | **$71.3** | **$(56.4)** | | **Adjusted EBITDA Margin** | **3.7%** | **-8.3%** | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity significantly improved with **$810.7 million** in cash and cash equivalents, primarily from IPO proceeds, alongside positive operating cash flow and substantial credit facilities - As of June 30, 2021, the company had cash and cash equivalents of **$810.7 million** and an accumulated deficit of **$1.3 billion**[203](index=203&type=chunk) - Net cash provided by financing activities was **$450.4 million** for the first six months of 2021, primarily consisting of **$439.6 million** in net proceeds from the IPO[221](index=221&type=chunk) - In March 2021, the company entered into a new **$350.0 million** Revolving Credit Facility, which was undrawn as of June 30, 2021[211](index=211&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations affecting cash and variable-rate debt, though exposure is deemed immaterial due to short-term investments and limited international operations - The company is exposed to interest rate risk on its cash and cash equivalents (**$810.7 million**) and its LIBOR-based credit facilities[233](index=233&type=chunk)[234](index=234&type=chunk) - As of June 30, 2021, the outstanding balance on debt facilities was **$11.1 million**; a 100-basis point change in interest rates would not have a material impact on interest expense[234](index=234&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to material weaknesses in internal control over financial reporting, stemming from insufficient experience, processes, and IT controls, with remediation ongoing - The CEO and CFO concluded that disclosure controls and procedures were not effective as of June 30, 2021, due to material weaknesses in internal control over financial reporting[240](index=240&type=chunk) - The material weaknesses relate to an inadequate control environment, lack of formal accounting policies and procedures, and insufficient IT general controls for systems relevant to financial reporting[241](index=241&type=chunk)[316](index=316&type=chunk) - Remediation efforts are underway, including hiring personnel and implementing new financial systems and processes, but the material weaknesses are not yet fully remediated[243](index=243&type=chunk)[244](index=244&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, including a lawsuit by Avi Dorfman and a complaint from Realogy Holdings Corp., with outcomes currently unpredictable - In the case of *Avi Dorfman v. Robert Reffkin and Urban Compass, Inc.*, the plaintiff seeks compensation for alleged contributions to the company's formation; a trial is scheduled for January 2022[84](index=84&type=chunk) - In the case of *Realogy Holdings Corp., et al v. Urban Compass, Inc. and Compass Inc.*, the plaintiff alleges unfair competition; discovery is proceeding with an end date of June 30, 2022, and the outcome is currently unpredictable[85](index=85&type=chunk)[88](index=88&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks, including dependence on the cyclical U.S. real estate market, agent retention, history of net losses, intense competition, internal control weaknesses, and concentrated CEO voting power - The business is highly dependent on the health of the U.S. real estate industry, which is subject to economic downturns and seasonal and cyclical trends[251](index=251&type=chunk) - The company has a history of net losses (**$219.5 million** for H1 2021) and may not achieve or sustain profitability as it continues to invest in growth[258](index=258&type=chunk) - The company faces significant competition from traditional real estate brokerages and technology companies, which could impact its ability to attract and retain agents[272](index=272&type=chunk)[274](index=274&type=chunk) - Material weaknesses in internal controls over financial reporting have been identified, which could impair the ability to produce timely and accurate financial statements[315](index=315&type=chunk) - The multi-class stock structure concentrates approximately **45%** of voting power with the founder and CEO, Robert Reffkin, limiting the influence of other stockholders[385](index=385&type=chunk)[386](index=386&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on unregistered equity sales, including Class A shares for acquisitions and Class B to Class A conversion, and details the use of IPO proceeds for working capital and general corporate purposes - The company raised **$449.7 million** in net proceeds from its IPO in April 2021, which is being used for working capital and other general corporate purposes[412](index=412&type=chunk) - On July 1, 2021, all outstanding **4,562,160 shares** of non-voting Class B common stock were converted into an equal number of voting Class A common stock shares[411](index=411&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including an amended credit agreement, equity award forms, and CEO/CFO certifications - Exhibits filed include the Amended and Restated Revolving Credit and Security Agreement, forms of equity award agreements, and officer certifications pursuant to Sarbanes-Oxley Sections 302 and 906[415](index=415&type=chunk)

Compass, Inc. (NYSE:COMP) Q1 2021 Earnings Conference Call May 12, 2021 4:30 PM ET Company Participants Ben Barrett - Vice President, Investor Relations Robert Reffkin - Founder, Chairman and Chief Executive Officer Kristen Ankerbrandt - Chief Financial Officer Conference Call Participants Lloyd Walmsley - Deutsche Bank Jason Helfstein - Oppenheimer Mayank Tandon - Needham Daniel Adam - Loop Capital Markets Trevor Young - Barclays Alex Wong - Morgan Stanley Matt Gaudioso - Compass Point Operator Good day an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 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 _______ | --- | --- | |--------------------------------------------------------------------------------------------------------------------------|--- ...