Compass(COMP) - 2023 Q4 - Annual Results

Revenue Performance - Revenue in Q4 2023 decreased by 1% year-over-year to $1.1 billion, with full year 2023 revenue at $4.9 billion, a 19% decline from $6.0 billion in 2022[19] - Revenue for Q4 2023 was $1,096.4 million, a slight decrease from $1,107.2 million in Q4 2022, while total revenue for the year ended 2023 was $4,885.0 million, down from $6,018.0 million in 2022[36] Net Loss and Profitability - GAAP Net loss in Q4 2023 was $83.7 million, improving by 47% from a Net loss of $158.1 million in Q4 2022; full year Net loss was $321.3 million, a reduction of 47% from $601.5 million in 2022[19] - The net loss for the year ended December 31, 2023 was $320.1 million, an improvement from a net loss of $601.5 million for the year ended December 31, 2022[30] - Net loss attributable to Compass, Inc. for Q4 2023 was $(83.7) million, an improvement from $(158.1) million in Q4 2022, with a total net loss for the year of $(321.3) million compared to $(601.5) million in 2022[36] - The company reported a net loss per share of $(0.17) for Q4 2023, an improvement from $(0.36) in Q4 2022, with a total for the year of $(0.69) compared to $(1.40) in 2022[36] Adjusted EBITDA - Adjusted EBITDA for Q4 2023 was ($23.7) million, an improvement of 69% from ($75.3) million in Q4 2022; full year Adjusted EBITDA was ($38.9) million, improving by 81% from ($210.0) million in 2022[19] - Adjusted EBITDA for Q4 2023 was $(23.7) million, an improvement from $(75.3) million in Q4 2022, with a total for the year of $(38.9) million compared to $(210.0) million in 2022[38] Cash Flow and Liquidity - Operating cash flow improved by $265.8 million to ($25.9) million in 2023 compared to ($291.7) million in 2022; free cash flow improved by $324.7 million to ($37.1) million in 2023 from ($361.8) million in 2022[19] - Free cash flow for the year ended December 31, 2023 was $(37.1) million, compared to $(361.8) million for the year ended December 31, 2022, indicating a significant reduction in cash burn[32] - Compass expects to be free cash flow positive for the full year 2024[22] Operating Expenses - Total operating expenses for Q4 2023 were $1,179.4 million, compared to $1,260.0 million in Q4 2022, with a total for the year of $5,199.9 million, down from $6,607.4 million[36] - Non-GAAP operating expenses (OPEX) for 2023 were below the target range, with expectations to further reduce OPEX to $865 million for full year 2024[19] Assets and Liabilities - Total current assets decreased from $517.9 million in December 31, 2022 to $282.0 million in December 31, 2023, a decline of approximately 45.4%[28] - Cash and cash equivalents dropped significantly from $361.9 million in December 31, 2022 to $166.9 million in December 31, 2023, representing a decrease of about 53.8%[28] - Total liabilities decreased from $1,012.4 million in December 31, 2022 to $728.3 million in December 31, 2023, a reduction of approximately 28.0%[28] - The company has experienced a significant reduction in current liabilities from $517.5 million in December 31, 2022 to $292.5 million in December 31, 2023, a decrease of approximately 43.5%[28] Stockholder Equity and Compensation - The company reported a total stockholders' equity of $432.0 million as of December 31, 2023, down from $520.7 million in December 31, 2022, a decline of approximately 17.0%[28] - Stock-based compensation expense for the year ended December 31, 2023 was $158.2 million, down from $234.5 million in 2022, reflecting a decrease of about 32.5%[30] Market Share and Growth - The average number of principal agents increased by 7.7% year-over-year to 14,689 in Q4 2023, with a principal agent retention rate of 97%[21] - National market share in Q4 2023 was 4.41%, an increase of 9 basis points year-over-year[21] - Compass added 103 features to its technology platform in 2023, enhancing its proprietary first-contact to close platform[2] Future Outlook - The company plans to discuss its fourth quarter and full year 2023 results and outlook in a conference call scheduled for February 27, 2024[23] - Compass, Inc. continues to focus on enhancing its integrated cloud-based platform for real estate agents, aiming to improve service delivery and operational efficiency[34]