Compass, Inc. Files Q3 2024 10-Q

TL;DR

Compass Q3 10-Q filed. Financials updated.

AI Summary

Compass, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter of 2024 and provides financial updates. Key financial data and operational details for the period are presented.

Why It Matters

This filing provides investors with the latest financial performance and operational status of Compass, Inc. for the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-11-01 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Compass, Inc. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241101 (date) — Filing date
• Urban Compass, Inc. (company) — Former company name

FAQ

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-20240930.htm (10-Q) — 1289KB
• comp-20240930x10qex101.htm (EX-10.1) — 3KB
• comp-20240930x10qex311.htm (EX-31.1) — 10KB
• comp-20240930x10qex312.htm (EX-31.2) — 11KB
• comp-20240930x10qex321.htm (EX-32.1) — 5KB
• comp-20240930x10qex322.htm (EX-32.2) — 5KB
• 0001563190-24-000178.txt ( ) — 6242KB
• comp-20240930.xsd (EX-101.SCH) — 47KB
• comp-20240930_cal.xml (EX-101.CAL) — 51KB
• comp-20240930_def.xml (EX-101.DEF) — 265KB
• comp-20240930_lab.xml (EX-101.LAB) — 611KB
• comp-20240930_pre.xml (EX-101.PRE) — 410KB
• comp-20240930_htm.xml (XML) — 688KB

Financial Statements (unaudited)

Financial Statements (unaudited) 6 Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 6 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 7 Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 8 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 10 Notes to Condensed Consolidated Financial Statements 11 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 40 PART II. OTHER INFORMATION 40 Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Securities 41 Item 3. Defaults Upon Senior Securities 41 Item 4. Mine Safety Disclosures 41 Item 5. Other Information 41 Item 6. Exhibits 42

Signatures

Signatures 2 Table of Contents Unless otherwise expressly stated or the context otherwise requires, references in this Quarterly Report on Form 10-Q, which we refer to as this Quarterly Report, to "Compass," "Company," "our," "us," and "we" and similar references refer to Compass, Inc. and its consolidated subsidiaries. WHERE YOU CAN FIND MORE INFORMATION Investors and others should note that we may announce material business and financial information to our investors using our investor relations page on our website (www.compass.com), filings we make with the Securities and Exchange Commission, or the SEC, webcasts, press releases and conference calls. We use these mediums, including our website, to communicate with our stockholders and the public about our company, our product candidates and other matters. It is possible that the information we make available may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website. From time to time, we intend to announce material information to the public through filings with the SEC, the investor relations page on our website (www.compass.com), press releases, public conference calls, public webcasts, our X (formerly Twitter) feed (@Compass), our Facebook page, our LinkedIn page, our Instagram account, our YouTube channel, Robert Reffkin's X feed (@RobReffkin) and Robert Reffkin's Instagram account (@robreffkin). We use these mediums, including our website, to communicate with our stockholders and the public about our company and other matters. It is possible that the information that we make available may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website and all other streaming tools. Further, corporate governance information, including our governance guidelines, board committee cha

Forward-looking statements contained in this Quarterly Report include, but are not limited to, statements about

Forward-looking statements contained in this Quarterly Report include, but are not limited to, statements about: General economic conditions, economic and industry downturns, the health of the U.S. real estate industry, and risks generally incident to the ownership of residential real estate; The effect of monetary policies of the federal government and its agencies; High interest rates; Ongoing industry antitrust class action litigation (including the Antitrust Lawsuits filed against us) or any related regulatory activities; Any decreases in our gross commission income or the percentage of commissions that we collect; Low home inventory levels; Our ability to carefully manage our expense structure; Adverse economic, real estate or business conditions in geographic areas where our business is concentrated and/or impacting high-end markets; Our ability to continuously innovate, improve and expand our platform, including tools and features integrating machine learning and artificial intelligence, or AI; Our ability to expand our operations and to offer additional integrated services; 3 Table of Contents Our ability to realize the expected benefits from joint ventures; Our ability to compete successfully; Our ability to attract and retain highly qualified personnel and to recruit agents; Our ability to re-accelerate our business growth given our current expense structure; Use of cash to satisfy tax withholding obligations that arise in connection with settlements of RSU awards; Fluctuations in our quarterly results and other operating metrics; The loss of one or more of our key personnel; Actions by our agents or employees that could adversely affect our reputation and subject us to liability; Our ability to pursue acquisitions that are successful and can be integrated into our existing operations; Changes in mortgage underwriting standards; Our ability to maintain or establish relationships with third-party service providers; The impact of cy

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Compass, Inc. Condensed Consolidated Balance Sheets (In millions, except share and per share data, unaudited) September 30, 2024 December 31, 2023 Assets Current Assets Cash and cash equivalents $ 211.2 $ 166.9 Accounts receivable, net of allowance of $ 7.0 and $ 8.6 , respectively 45.8 36.6 Compass Concierge receivables, net of allowance of $ 10.4 and $ 13.2 , respectively 34.8 24.0 Other current assets 38.7 54.5 Total current assets 330.5 282.0 Property and equipment, net 132.4 151.7 Operating lease right-of-use assets 392.4 408.5 Intangible assets, net 82.7 77.6 Goodwill 234.1 209.8 Other non-current assets 27.7 30.7 Total assets $ 1,199.8 $ 1,160.3 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 14.3 $ 18.4 Commissions payable 85.4 59.6 Accrued expenses and other current liabilities 132.4 90.8 Current lease liabilities 98.7 98.9 Concierge credit facility 27.5 24.8 Total current liabilities 358.3 292.5 Non-current lease liabilities 382.3 410.2 Other non-current liabilities 28.1 25.6 Total liabilities 768.7 728.3 Commitments and contingencies (Note 6) Stockholders' equity Common stock, $ 0.00001 par value, 13,850,000,000 shares authorized at September 30, 2024 and December 31, 2023; 507,581,054 shares issued and outstanding at September 30, 2024; 484,893,266 shares issued and outstanding at December 31, 2023 — — Additional paid-in capital 3,059.7 2,946.5 Accumulated deficit ( 2,631.7 ) ( 2,517.8 ) Total Compass, Inc. stockholders' equity 428.0 428.7 Non-controlling interest 3.1 3.3 Total stockholders' equity 431.1 432.0 Total liabilities and stockholders' equity $ 1,199.8 $ 1,160.3 The accompanying footnotes are an integral part of these condensed consolidated financial statements. 6 Table of Contents Compass, Inc. Condensed Consolidated Statements of Operations ( In millions, except share and per share data, unaudited ) Three Months Ended September 30, N

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View this 10-Q filing on SEC EDGAR