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Compass(COMP) - 2024 Q4 - Annual Results
COMPCompass(COMP)2025-02-18 21:07

Financial Performance - Q4 2024 revenue increased by 25.9% year-over-year to 1.4billion,withorganicrevenuegrowthof20.91.4 billion, with organic revenue growth of 20.9%[4] - Revenue for Q4 2024 was 1,380.4 million, a 25.9% increase from 1,096.4millioninQ42023[27]−AdjustedEBITDAforQ42024was1,096.4 million in Q4 2023[27] - Adjusted EBITDA for Q4 2024 was 16.7 million, a significant improvement from a loss of 23.7millioninQ42023[4]−AdjustedEBITDAfortheyearendedDecember31,2024was23.7 million in Q4 2023[4] - Adjusted EBITDA for the year ended December 31, 2024 was 126.0 million, a significant increase from a loss of 38.9millionin2023[31]−FreecashflowfortheyearendedDecember31,2024was38.9 million in 2023[31] - Free cash flow for the year ended December 31, 2024 was 105.8 million, compared to a negative free cash flow of 37.1millionin2023[33]−NetlossattributabletoCompass,Inc.forQ42024was37.1 million in 2023[33] - Net loss attributable to Compass, Inc. for Q4 2024 was 40.5 million, compared to a net loss of 83.7millioninQ42023,representinga51.683.7 million in Q4 2023, representing a 51.6% improvement[27] Market Share and Transactions - Quarterly market share reached 5.06%, up 65 basis points year-over-year, marking the highest increase in twelve quarters[8] - Total transactions closed by Compass agents in Q4 2024 were 50,411, a 24.1% increase compared to Q4 2023[8] - Gross Transaction Value (GTV) for Q4 2024 was 54.0 billion, up 29.2% from 41.8billioninQ42023[8]OperationalMetrics−OperatingcashflowforQ42024was41.8 billion in Q4 2023[8] Operational Metrics - Operating cash flow for Q4 2024 was 30.5 million, contributing to a full-year operating cash flow of 121.5million[4]−Thenumberofprincipalagentsincreasedby20.9121.5 million[4] - The number of principal agents increased by 20.9% year-over-year to 17,752, with a quarterly retention rate of 96.9%[8] Future Projections - For Q1 2025, the company projects revenue between 1.350 billion and 1.475billion,withAdjustedEBITDAexpectedtobebetween1.475 billion, with Adjusted EBITDA expected to be between 11 million and 25million[12]−Thecompanyexpectstobefreecashflowpositiveforthefullyear2025[18]AssetsandLiabilities−Totalassetsincreasedto25 million[12] - The company expects to be free cash flow positive for the full year 2025[18] Assets and Liabilities - Total assets increased to 1,178.0 million as of December 31, 2024, compared to 1,160.3millionasofDecember31,2023[25]−Currentliabilitiesroseto1,160.3 million as of December 31, 2023[25] - Current liabilities rose to 353.2 million as of December 31, 2024, up from 292.5millionasofDecember31,2023[25]−Theaccumulateddeficitincreasedto292.5 million as of December 31, 2023[25] - The accumulated deficit increased to (2,672.2) million as of December 31, 2024, compared to (2,517.8)millionasofDecember31,2023[25]−Thecompanyreportedatotalstockholders′equityof(2,517.8) million as of December 31, 2023[25] - The company reported a total stockholders' equity of 412.4 million as of December 31, 2024, down from 432.0millionasofDecember31,2023[25]Expenses−TotaloperatingexpensesforQ42024were432.0 million as of December 31, 2023[25] Expenses - Total operating expenses for Q4 2024 were 1,421.0 million, up 20.5% from 1,179.4millioninQ42023[27]−CommissionsandotherrelatedexpensesforQ42024were1,179.4 million in Q4 2023[27] - Commissions and other related expenses for Q4 2024 were 1,139.3 million, a 27.2% increase from 895.9millioninQ42023[27]−Stock−basedcompensationexpensefortheyearendedDecember31,2024was895.9 million in Q4 2023[27] - Stock-based compensation expense for the year ended December 31, 2024 was 127.5 million, down from 158.2millionin2023[27]−Non−GAAPsalesandmarketingexpensesdecreasedto158.2 million in 2023[27] - Non-GAAP sales and marketing expenses decreased to 84.7 million in Q4 2024 from 94.3millioninQ42023,adeclineof10.194.3 million in Q4 2023, a decline of 10.1%[35] - GAAP research and development expenses increased to 46.9 million in Q4 2024 from 44.4millioninQ42023,ariseof5.644.4 million in Q4 2023, a rise of 5.6%[35] - Non-GAAP general and administrative expenses rose to 26.5 million in Q4 2024 compared to $20.5 million in Q4 2023, an increase of 29.8%[35] Strategic Initiatives - The company is focused on expanding its operations, including owned-brokerage and integrated services, to enhance its platform capabilities[17] - The company aims to continuously innovate by integrating machine learning and artificial intelligence into its platform[17] - The company is pursuing successful acquisitions that can be integrated into existing operations to realize anticipated synergies and cost savings[19] - The company emphasizes the importance of maintaining relationships with third-party service providers to support its operational capabilities[19] Client Engagement - The launch of the Compass One client dashboard resulted in a 43% increase in client engagement within the first week[11] Stock and Shares - The weighted-average shares used in computing net loss per share attributable to Compass, Inc. increased to 511,244,971 in Q4 2024 from 483,710,540 in Q4 2023[27]