Compass, Inc. Reports 2021 Results & Growth

New York, NY – February 16, 2022 – Compass, Inc. (NYSE: COMP), the leading tech-enabled real estate brokerage in the United States, announced today that revenue for the full year 2021 was $6.4 billion, up 73% year-over-year. Revenue for the fourth quarter 2021 was $1.6 billion, an increase of 31% year-over-year.

The Compass technology and services platform contributed to year-over-year transaction growth of 56% for the full year 2021 and 20% for the fourth quarter.

Net loss was $494 million for the full year 2021 and $175 million for the fourth quarter. For the full year 2021, Compass achieved positive Adjusted EBITDA of $2 million compared to an Adjusted EBITDA loss of $156 million in 2020. In the fourth quarter of 2021, Adjusted EBITDA loss was $51 million. The majority of the net losses in 2021 were driven by the non-cash stockbased compensation expense of $386 million for the full year 2021, $149 million of which was one-time related to the IPO, and $93 million for the fourth quarter.

The Company’s cash position remains strong, with $618 million in cash and an unused $350 million revolver available to invest in the growth of the business.

“I am happy to announce that our strategy of achieving strong revenue growth while improving profitability and investing in our business is working exceptionally well,” said Robert Reffkin, Founder, Chairman, and CEO of Compass. “We delivered exceptionally strong revenue growth of 73% in 2021 increasing revenue to $6.4 billion as our agents closed a record 225,000 transactions, up 56% in 2021 while the industry grew transactions by 8%. We ended the year with positive Adjusted EBITDA, two years ahead of the timing we communicated at the IPO. Today, we are guiding to continued strong growth in Adjusted EBITDA in 2022 and beyond.”

Reffkin continued, “In nine years, we have built a powerful brand across the United States with more than 26,000 agents in 69 markets covering nearly half of the US population. In 2021, we added nearly 7,000 agents as we launched 25 new markets and grew our national market share to 5.6% which is up from 4.0% in 2020 and 1.1% in 2018. Agents tell us that the reason they decide to bring their business to Compass is our agent-focused culture and our proprietary vertically-integrated technology platform that provides a critical edge in a real estate market increasing in competition for talent, listings and clients. We continue to have industry leading principal agent retention of over 90% and we had a net promoter score in 2021 of 71 with our agents.”

Higher usage of the Compass platform is contributing to enhanced agent economics, productivity and retention. A cohort study of platform usage among our agents1 found that in 2021, the top 25% of Compass teams who used the platform most:

● Represented 55% of all Compass transactions;

● Grew their Gross Commission Income 2.6x, compared to the bottom 25% of agent teams;

● Retained principal agents at an annual rate of 98% versus 86% for the bottom 25% of agent teams; and

● Used the platform consistently – Top multi-agent teams spent an average of 4 hours per day (assuming a five day work week) using the tools and single-agent teams used the platform more than 2 hours per day.

FY2021 Financial Highlights:

● Revenue increased by 73% from FY2020 to $6.42 billion as transactions increased 56%.

● GAAP Net Loss was $494 million, compared to $270 million in FY2020.

○ GAAP Net Loss margin was 7.7%, compared to 7.3% in FY2020.

● Adjusted EBITDA was a positive $2 million, compared to a $(156) million loss in FY2020.

○ Adjusted EBITDA margin was 0.0%, compared to (4.2)% in FY2020.

FY2021 Operational Highlights:

● Agents: Average Number of Principal Agents was 11,058, an increase of 2,372 from FY2020.

● Transactions: Compass agents closed 225,272 Total Transactions in FY2021, up 56% from FY2020, compared to a 8% increase in transactions for the residential real estate market . Our Principal Agents averaged 20.4 transactions on our platform in FY2021, up 22% year-over-year.

● Gross Transaction Value (“GTV”)6 : GTV of $254.2 billion increased by 68% from FY2020. This was a record year for Compass, reflecting strong transaction volume and higher average transaction values. GTV per average principal agent was $23.0 million, up 32% year-over-year.

● Markets: In FY2021, Compass entered 25 new markets, bringing the total markets served to 69 at the end of the year.