Compass, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Compass, Inc. has filed its 2023 10-K report detailing financial performance and corporate information.</b>

AI Summary

Compass, Inc. (COMP) filed a Annual Report (10-K) with the SEC on February 28, 2024. Compass, Inc. filed its 2023 Form 10-K on February 28, 2024, reporting for the fiscal year ending December 31, 2023. The company's principal business address is 110 Fifth Avenue, 4th Floor, New York, NY 10011. Compass, Inc. was formerly known as Urban Compass, Inc., with a name change effective November 28, 2012. The filing references various accounting standards, including those related to Restructuring Charges and Depreciation and Amortization. Financial data for the fiscal years 2023, 2022, and 2021 are included in the report.

Why It Matters

For investors and stakeholders tracking Compass, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Compass, Inc.'s financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. The detailed financial statements and risk factors outlined in this report are essential for understanding the company's market position, potential challenges, and compliance with regulatory requirements.

Risk Assessment

Risk Level: medium — Compass, Inc. shows moderate risk based on this filing. The company's financial performance and market position are subject to various risks and uncertainties inherent in the real estate and technology sectors, as detailed in the full 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Compass, Inc.'s performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-28 — Filing Date (Date of submission)
• 2023 — Fiscal Year (Primary reporting year)
• 2022 — Previous Fiscal Year (Comparative year)
• 2021 — Prior Fiscal Year (Comparative year)

Key Players & Entities

• Compass, Inc. (company) — Filer name
• Urban Compass, Inc. (company) — Former company name
• New York (location) — Business address city
• 110 Fifth Avenue (location) — Business address street

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the core financial and operational data for Compass, Inc. for the fiscal year 2023.)

Restructuring Charges

Costs associated with closing a facility, discontinuing a line of business, or reorganizing part or all of a company's operations. (Indicates potential operational changes or cost-saving measures undertaken by Compass, Inc.)

Depreciation and Amortization

The systematic allocation of the cost of a tangible asset (depreciation) or an intangible asset (amortization) over its useful life. (Reflects the consumption of the company's long-term assets and impacts profitability.)

Key Financial Figures

• $0.00001 — which registered Class A Common Stock, $0.00001 par value per share COMP The New York S

Filing Documents

• comp-20231231.htm (10-K) — 2112KB
• comp-20231231xex101.htm (EX-10.1) — 85KB
• comp-20231231xex105.htm (EX-10.5) — 22KB
• comp-20231231xex108.htm (EX-10.8) — 68KB
• comp-20231231xex1014.htm (EX-10.14) — 70KB
• comp-20231231xex1015.htm (EX-10.15) — 22KB
• comp-20231231xex1017.htm (EX-10.17) — 35KB
• comp-20231231xex211.htm (EX-21.1) — 4KB
• comp-20231231xex231.htm (EX-23.1) — 3KB
• comp-20231231xex311.htm (EX-31.1) — 10KB
• comp-20231231xex312.htm (EX-31.2) — 10KB
• comp-20231231xex321.htm (EX-32.1) — 3KB
• comp-20231231xex322.htm (EX-32.2) — 3KB
• comp-20231231xex97.htm (EX-97) — 30KB
• comp-20231231_g1.jpg (GRAPHIC) — 92KB
• 0001563190-24-000039.txt (&nbsp;) — 11511KB
• comp-20231231.xsd (EX-101.SCH) — 82KB
• comp-20231231_cal.xml (EX-101.CAL) — 102KB
• comp-20231231_def.xml (EX-101.DEF) — 425KB
• comp-20231231_lab.xml (EX-101.LAB) — 1042KB
• comp-20231231_pre.xml (EX-101.PRE) — 685KB
• comp-20231231_htm.xml (XML) — 1418KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 10 Item 1B. Unresolved Staff Comments 30

C

Item 1 C . Cybersecurity 31 Item 2.

Properties

Properties 32 Item 3.

Legal Proceedings

Legal Proceedings 32 Item 4. Mine Safety Disclosures 32 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6. Reserved 35 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 54 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 93 Item 9A.

Controls and Procedures

Controls and Procedures 93 Item 9B. Other Information 95 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 95 PART III Item 10. Directors, Executive Officers and Corporate Governance 96 Item 11.

Executive Compensation

Executive Compensation 96 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 96 Item 13. Certain Relationships and Related Transactions, and Director Independence 96 Item 14. Principal Accountant Fees and Services 96 PART IV Item 15. Exhibits and Financial Statement Schedules 97 Item 16. Form 10-K Summary 99

Signatures

Signatures 100 Table of Contents As used in this Annual Report, the terms "Compass," "Company," "we," "us," and "our" refer to Compass, Inc. and its subsidiaries taken as a whole, unless otherwise noted or unless the context indicates otherwise. Note Regarding Forward-Looking Statements This Annual Report contains forward-looking statements within the meaning of Section 27A of the federal Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements contained in this Annual Report, other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth, and our objectives for future operations, are forward-looking statements. Words such as "believes," "may," "will," "estimates," "potential," "continues," "expects," "could," "would," "plans," "targets," and variations of such words and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections as of the date of this filing about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements speak only as of the date of this Annual Report and are subject to a number of known and unknown risks, uncertainties and assumptions, including, but not limited to, the important factors discussed in Part I, Item 1A. "Risk Factors" in this Annual Report, which are summarized below. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties nor can we assess the impact of all factors on our

Business

Item 1. Business. Our Company Compass, Inc. (the "Company") was incorporated in Delaware on October 4, 2012 under the name Urban Compass, Inc. On January 8, 2021, the board of directors of the Company approved a change to the Company's name from Urban Compass, Inc. to Compass, Inc. The Company has been based in New York City since its incorporation. Our Business and Business Model We provide an end-to-end platform that empowers our residential real estate agents to deliver exceptional service to seller and buyer clients. Our platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service, brokerage services and other critical functionalities, all custom-built for the real estate industry. Our platform also uses proprietary data, analytics, AI, and machine learning to simplify workflows of agents and deliver high-value recommendations and outcomes for both agents and their clients. Additionally, we provide integrated services, such as title and escrow and mortgage, both of which are available on our platform. Compass agents utilize the platform to grow their businesses, save time and manage their businesses more effectively. Our business model is directly aligned with the success of our agents. We attract agents to our brokerage and partner with them as independent contractors that affiliate their real estate licenses with us, operating their businesses on our platform and under our brand. We currently generate substantially all of our revenue from commissions paid to us by our agents' clients at the time that a home is transacted on our platform. While integrated services comprise a small portion of our revenue to date, we believe we are well-positioned to capture meaningful revenue from integrated services as we continue to diversify our offerings within the real estate ecosystem. Our platform provides a strong foundation for agents to create and foster client relationships. Our powerful customer r

View Full Filing

View this 10-K filing on SEC EDGAR