Compass(US:COMP)2025-05-09 11:07Revenue and Transactions - Revenue for the three months ended March 31, 2025, was $1,356.2 million, an increase of $302.1 million, or 28.7%, compared to the same period in 2024[141]. - Total Transactions closed by agents reached 49,121, marking a 27.8% increase compared to the same period in 2024[131]. - Gross Transaction Value for the three months ended March 31, 2025, was $52.4 billion, an increase of 30.7% year-over-year[132]. - Gross Transaction Value represented 6.0% of residential real estate transacted in the U.S., up from 4.8% in the same period of 2024[133]. - Total transactions increased to 49,121, a rise of 27.8% from the prior year, largely attributed to brokerages acquired since April 2024[157][160]. - Gross transaction value reached $52.4 billion, up from $40.1 billion in the prior year, reflecting the growth in total transactions[157]. - Gross Transaction Value for the three months ended March 31, 2025, was $52.4 billion, an increase of 30.7% from the previous year, primarily driven by an increase in the number of agents on the platform[162]. - The Number of Principal Agents as of March 31, 2025, was 20,656, representing a 41.6% increase from the previous year, mainly due to agents from businesses acquired since April 2024[164]. Expenses and Losses - Operating expenses totaled $1,409.9 million, with commissions and related expenses accounting for $1,106.1 million, or 81.6% of revenue[141]. - The net loss attributable to Compass, Inc. for the three months ended March 31, 2025, was $50.7 million, compared to a net loss of $132.9 million in the same period of 2024[141]. - Commissions and other related expenses increased to $1,106.1 million for the three months ended March 31, 2025, up $243.8 million or 28.3% from the prior year, primarily driven by increased revenue[144]. - Sales and marketing expenses decreased to $91.7 million, down $1.7 million or 1.8% compared to the prior year, with a percentage of revenue dropping from 8.9% to 6.8%[145]. - Operations and support expenses rose to $96.7 million, an increase of $17.7 million or 22.4%, with the percentage of revenue slightly decreasing from 7.5% to 7.1%[146]. - Research and development expenses increased to $49.9 million, up $2.9 million or 6.2%, with the percentage of revenue decreasing from 4.5% to 3.7%[147]. - General and administrative expenses decreased significantly to $27.5 million, down $54.7 million or 66.5%, primarily due to a prior year litigation charge[148]. - Restructuring costs surged to $9.2 million, an increase of $7.7 million or 513.3% compared to the prior year, mainly due to severance and lease termination costs[149]. - Depreciation and amortization expenses increased to $28.8 million, up $8.0 million or 38.5%, driven by amortization of intangible assets from recent acquisitions[150]. - Net loss attributable to Compass, Inc. improved to $(50.7) million, a reduction of $82.2 million from $(132.9) million in the prior year, with the net loss margin improving from (12.6%) to (3.7%)[157]. Cash Flow and Financial Position - Cash flows from operations for the three months ended March 31, 2025, were $23.1 million, up from $8.6 million in the same period of 2024[175]. - The company generated $121.5 million in cash flows from operations for the year ended December 31, 2024[172]. - As of March 31, 2025, the company had cash and cash equivalents of $127.0 million and an accumulated deficit of $2.7 billion[172]. - Net cash used in investing activities for the three months ended March 31, 2025, was $164.5 million, primarily for acquisitions[177]. - The company had $50.0 million outstanding and $257.7 million available to be drawn under its Revolving Credit Facility as of March 31, 2025[172]. - As of March 31, 2025, the outstanding balance under the Concierge Facility is $25.4 million, with an interest rate of SOFR plus a margin of 2.75%[190]. - The outstanding balance under the Revolving Credit Facility is $50.0 million, with an interest rate of SOFR plus a margin of 1.50%[190]. - A 100-basis point change in market interest rates would not materially affect the interest expense based on current outstanding amounts[190]. Strategic Initiatives - The company launched Compass One, an all-in-one client dashboard, in February 2025, enhancing the client experience[128]. - The company acquired a firm with the exclusive rights to operate the Christie's International Real Estate brand in January 2025, expanding its market presence[123]. - The company has implemented significant cost reduction actions since 2022, allowing it to consistently generate positive operating cash flow[140]. - Adjusted EBITDA for the three months ended March 31, 2025, was $15.6 million, compared to a loss of $20.1 million in the same period of 2024, driven by higher revenue from an increased number of agents[168]. - Adjusted EBITDA margin for the three months ended March 31, 2025, was 1.2%, compared to a margin of -1.9% in the same period of 2024[167]. Currency and Market Exposure - The company primarily incurs operating expenses in local currencies, mainly in the United States, with limited exposure in Europe, the United Kingdom, India, and Canada[191]. - The company does not maintain significant foreign currency balances, resulting in limited exposure to exchange rate fluctuations[191]. - The company is contingently liable for escrow and trust deposits totaling $358.0 million as of March 31, 2025[181].