x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 30-0751604 | |||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||
90 Fifth Avenue, 3rd Floor New York, New York | 10011 | |||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Class A Common Stock, $0.00001 par value per share | COMP | The New York Stock Exchange |
Large accelerated filer | o | Accelerated filer | ||||||||||||||
Non-accelerated filer | x | Smaller reporting company | ||||||||||||||
Emerging growth company |
Page | ||||||||||||
3. | ||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 475.9 | $ | 618.3 | |||||||
Accounts receivable, net of allowance of $7.2 and $7.1, respectively | 66.4 | 48.5 | |||||||||
Compass Concierge receivables, net of allowance of $16.1 and $17.3, respectively | 47.0 | 32.9 | |||||||||
Other current assets | 104.6 | 94.9 | |||||||||
Total current assets | 693.9 | 794.6 | |||||||||
Property and equipment, net | 173.0 | 157.4 | |||||||||
Operating lease right-of-use assets | 498.0 | 484.7 | |||||||||
Intangible assets, net | 119.5 | 127.2 | |||||||||
Goodwill | 189.4 | 188.3 | |||||||||
Other non-current assets | 52.7 | 48.4 | |||||||||
Total assets | $ | 1,726.5 | $ | 1,800.6 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 36.7 | $ | 34.6 | |||||||
Commissions payable | 79.1 | 63.9 | |||||||||
Accrued expenses and other current liabilities | 171.3 | 240.9 | |||||||||
Current lease liabilities | 97.8 | 81.5 | |||||||||
Concierge credit facility | 18.3 | 16.2 | |||||||||
Total current liabilities | 403.2 | 437.1 | |||||||||
Non-current lease liabilities | 497.6 | 483.0 | |||||||||
Other non-current liabilities | 20.2 | 32.9 | |||||||||
Total liabilities | 921.0 | 953.0 | |||||||||
Commitments and contingencies (Note 6) | 0 | 0 | |||||||||
Stockholders’ equity | |||||||||||
Common stock, $0.00001 par value, 13,850,000,000 shares authorized at March 31, 2022 and December 31, 2021; 426,965,766 shares issued and outstanding at March 31, 2022; 409,267,751 shares issued and outstanding at December 31, 2021 | — | — | |||||||||
Additional paid-in capital | 2,585.0 | 2,438.8 | |||||||||
Accumulated deficit | (1,783.0) | (1,595.0) | |||||||||
Total Compass, Inc. stockholders’ equity | 802.0 | 843.8 | |||||||||
Non-controlling interest | 3.5 | 3.8 | |||||||||
Total stockholders' equity | 805.5 | 847.6 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,726.5 | $ | 1,800.6 |
September 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 791.4 | $ | 440.1 | ||||
Accounts receivable, net of allowance of $7.8 and $8.1, respectively | 55.5 | 54.8 | ||||||
Compass Concierge receivables, net of allowance of $20.0 and $17.2, respectively | 49.4 | 49.5 | ||||||
Other current assets | 84.4 | 54.9 | ||||||
Total current assets | 980.7 | 599.3 | ||||||
Property and equipment, net | 151.3 | 141.7 | ||||||
Operating lease right-of-use | 458.9 | 426.6 | ||||||
Intangible assets, net | 127.5 | 45.6 | ||||||
Goodwill | 182.6 | 119.8 | ||||||
Other non-current assets | 46.2 | 32.1 | ||||||
Total assets | $ | 1,947.2 | $ | 1,365.1 | ||||
Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit) | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 35.3 | $ | 36.6 | ||||
Commissions payable | 73.0 | 62.0 | ||||||
Accrued expenses and other current liabilities | 215.7 | 106.8 | ||||||
Current lease liabilities | 80.2 | 68.1 | ||||||
Concierge credit facility | 18.7 | 8.4 | ||||||
Total current liabilities | 422.9 | 281.9 | ||||||
Non-current lease liabilities | 457.8 | 435.9 | ||||||
Other non-current liabilities | 36.6 | 23.5 | ||||||
Total liabilities | 917.3 | 741.3 | ||||||
Commitments and contingencies (Note 6) | 0 | 0 | ||||||
Convertible preferred stock, $0.00001 par value, 0 and 246,430,170 shares authorized at September 30, 2021 and December 31, 2020, respectively; 0 and 237,047,550 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 0 | 1,486.7 | ||||||
Stockholders’ equity (deficit) | ||||||||
Common stock, $0.00001 par value, 13,850,000,000 and 700,754,910 shares authorized at September 30, 2021 and December 31, 2020, respectively; 399,082,563 and 125,221,900 shares issued at September 30, 2021 and December 31, 2020, respectively; 399,082,563 and 122,971,900 shares outstanding at September 30, 2021 and December 31, 2020, respectively | 0 | 0 | ||||||
Additional paid-in capital | 2,445.4 | 238.0 | ||||||
Accumulated deficit | (1,420.2 | ) | (1,100.9 | ) | ||||
Total Compass, Inc. stockholders’ equity (deficit) | 1,025.2 | (862.9 | ) | |||||
Non-controlling interest | 4.7 | 0 | ||||||
Total stockholders’ equity (deficit) | 1,029.9 | (862.9 | ) | |||||
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 1,947.2 | $ | 1,365.1 | ||||
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Revenue | $ | 1,397.0 | $ | 1,113.9 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Commissions and other related expense | 1,146.4 | 942.2 | |||||||||||||||||||||
Sales and marketing | 145.0 | 111.3 | |||||||||||||||||||||
Operations and support | 108.9 | 70.0 | |||||||||||||||||||||
Research and development | 108.2 | 96.6 | |||||||||||||||||||||
General and administrative | 55.3 | 92.9 | |||||||||||||||||||||
Depreciation and amortization | 18.7 | 13.5 | |||||||||||||||||||||
Total operating expenses | 1,582.5 | 1,326.5 | |||||||||||||||||||||
Loss from operations | (185.5) | (212.6) | |||||||||||||||||||||
Investment income, net | 0.1 | — | |||||||||||||||||||||
Interest expense | (0.7) | (0.5) | |||||||||||||||||||||
Loss before income taxes and equity in loss of unconsolidated entity | (186.1) | (213.1) | |||||||||||||||||||||
Income tax (expense) benefit | (0.1) | 0.7 | |||||||||||||||||||||
Equity in loss of unconsolidated entity | (2.1) | — | |||||||||||||||||||||
Net loss | (188.3) | (212.4) | |||||||||||||||||||||
Net loss attributable to non-controlling interests | 0.3 | — | |||||||||||||||||||||
Net loss attributable to Compass, Inc. | $ | (188.0) | $ | (212.4) | |||||||||||||||||||
Net loss per share attributable to Compass, Inc., basic and diluted | $ | (0.45) | $ | (1.67) | |||||||||||||||||||
Weighted-average shares used in computing net loss per share attributable to Compass, Inc., basic and diluted | 415,384,878 | 126,917,284 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | $ | 1,743.6 | $ | 1,188.5 | $ | 4,808.9 | $ | 2,490.5 | ||||||||
Operating expenses: | ||||||||||||||||
Commissions and other related expense | 1,430.6 | 979.4 | 3,963.2 | 2,047.2 | ||||||||||||
Sales and marketing | 130.6 | 99.7 | 366.2 | 297.0 | ||||||||||||
Operations and support | 97.0 | 53.3 | 263.7 | 158.9 | ||||||||||||
Research and development | 89.7 | 33.7 | 259.8 | 106.7 | ||||||||||||
General and administrative | 79.5 | 22.7 | 231.8 | 75.7 | ||||||||||||
Depreciation and amortization | 16.7 | 13.0 | 45.1 | 38.1 | ||||||||||||
Total operating expenses | 1,844.1 | 1,201.8 | 5,129.8 | 2,723.6 | ||||||||||||
Loss from operations | (100.5 | ) | (13.3 | ) | (320.9 | ) | (233.1 | ) | ||||||||
Investment income, net | 0.1 | 0— | 0.1 | 2.0 | ||||||||||||
Interest expense | (0.7 | ) | (0.2 | ) | (1.8 | ) | (0.2 | ) | ||||||||
Loss before income taxes | (101.1 | ) | (13.5 | ) | (322.6 | ) | (231.3 | ) | ||||||||
Benefit from income taxes | 1.3 | 0— | 3.3 | 0.9 | ||||||||||||
Net loss | $ | (99.8 | ) | $ | (13.5 | ) | $ | (319.3 | ) | $ | (230.4 | ) | ||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.25 | ) | $ | (0.12 | ) | $ | (1.06 | ) | $ | (2.11 | ) | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 392,979,596 | 110,447,900 | 300,303,264 | 109,448,680 | ||||||||||||
Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Compass, Inc. Stockholders’ Equity (Deficit) | Non-controlling Interest | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2022: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | — | $ | — | 409,267,751 | $ | — | $ | 2,438.8 | $ | (1,595.0) | $ | 843.8 | $ | 3.8 | $ | 847.6 | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (188.0) | (188.0) | (0.3) | (188.3) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | 2,594,589 | — | 5.5 | — | 5.5 | — | 5.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon settlement of RSUs, net of taxes withheld | — | — | 1,494,530 | — | (7.4) | — | (7.4) | — | (7.4) | |||||||||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | 1.1 | — | 1.1 | — | 1.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with the 2021 Agent Equity Program | — | — | 13,608,896 | — | 100.0 | — | 100.0 | — | 100.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 47.0 | — | 47.0 | — | 47.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2022 | — | $ | — | 426,965,766 | $ | — | $ | 2,585.0 | $ | (1,783.0) | $ | 802.0 | $ | 3.5 | $ | 805.5 | ||||||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2021: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | 237,047,550 | $ | 1,486.7 | 122,971,900 | $ | — | $ | 238.0 | $ | (1,100.9) | $ | (862.9) | $ | — | $ | (862.9) | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (212.4) | (212.4) | — | (212.4) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares in connection with acquisitions | — | — | 249,230 | — | 4.3 | — | 4.3 | — | 4.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series D convertible preferred stock | (15,920,450) | (67.6) | 15,920,450 | — | 67.6 | — | 67.6 | — | 67.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | 4,710,490 | — | 9.9 | — | 9.9 | — | 9.9 | |||||||||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | 1.2 | — | 1.2 | — | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 165.0 | — | 165.0 | — | 165.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2021 | 221,127,100 | $ | 1,419.1 | 143,852,070 | $ | — | $ | 486.0 | $ | (1,313.3) | $ | (827.3) | $ | — | $ | (827.3) |
Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Compass, Inc. Stockholders’ Equity (Deficit) | Non-controlling interest | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2021: | ||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | — | $ | — | 394,419,967 | $ | — | $ | 2,395.9 | $ | — | $ | (1,320.4 | ) | $ | 1,075.5 | $ | — | $ | 1,075.5 | |||||||||||||||||||||
Net loss | — | — | — | — | — | — | (99.8 | ) | (99.8 | ) | (0.3 | ) | (100.1 | ) | ||||||||||||||||||||||||||
Capital contribution from non-controlling interest | — | — | — | — | — | — | — | — | 5.0 | 5.0 | ||||||||||||||||||||||||||||||
Issuance of stock for option exercises and RSU settlements | — | — | 4,662,596 | — | 2.9 | — | — | 2.9 | — | 2.9 | ||||||||||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | 1.3 | — | — | 1.3 | — | 1.3 | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 45.3 | — | — | 45.3 | — | 45.3 | ||||||||||||||||||||||||||||||
Balances at September 30, 2021 | — | $ | — | 399,082,563 | $ | — | $ | 2,445.4 | $ | — | $ | (1,420.2 | ) | $ | 1,025.2 | $ | 4.7 | $ | 1,029.9 | |||||||||||||||||||||
For the three months ended September 30, 2020: | ||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2020 | 246,430,170 | $ | 1,526.7 | 110,645,490 | $ | — | $ | 172.1 | $ | — | $ | (1,047.6 | ) | $ | (875.5 | ) | $ | — | $ | (875.5 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | — | (13.5 | ) | (13.5 | ) | — | (13.5 | ) | |||||||||||||||||||||||||||
Issuance of stock for option exercises | — | — | 857,250 | — | 3.3 | — | — | 3.3 | — | 3.3 | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 6.1 | — | — | 6.1 | — | 6.1 | ||||||||||||||||||||||||||||||
Balances at September 30, 2020 | 246,430,170 | $ | 1,526.7 | 111,502,740 | $ | — | $ | 181.5 | $ | — | $ | (1,061.1 | ) | $ | (879.6 | ) | $ | — | $ | (879.6 | ) | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating Activities | |||||||||||
Net loss | $ | (188.3) | $ | (212.4) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 18.7 | 13.5 | |||||||||
Stock-based compensation | 63.8 | 167.5 | |||||||||
Equity in loss of unconsolidated entity | 2.1 | — | |||||||||
Change in acquisition related contingent consideration | 0.4 | (3.2) | |||||||||
Bad debt expense | 1.5 | 3.0 | |||||||||
Amortization of debt issuance costs | 0.3 | 0.3 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (18.6) | (2.0) | |||||||||
Compass Concierge receivables | (14.8) | (0.7) | |||||||||
Other current assets | (9.9) | (10.7) | |||||||||
Other non-current assets | (1.5) | (7.4) | |||||||||
Operating lease right-of-use assets and operating lease liabilities | 11.6 | 1.1 | |||||||||
Accounts payable | 3.3 | (3.9) | |||||||||
Commissions payable | 15.2 | (7.9) | |||||||||
Accrued expenses and other liabilities | 5.2 | 15.5 | |||||||||
Net cash used in operating activities | (111.0) | (47.3) | |||||||||
Investing Activities | |||||||||||
Investment in unconsolidated entity | (5.0) | — | |||||||||
Capital expenditures | (20.8) | (10.0) | |||||||||
Payments for acquisitions, net of cash acquired | (3.8) | (59.2) | |||||||||
Net cash used in investing activities | (29.6) | (69.2) | |||||||||
Financing Activities | |||||||||||
Proceeds from exercise and early exercise of stock options | 5.5 | 14.4 | |||||||||
Taxes paid related to net share settlement of equity awards | (7.4) | — | |||||||||
Proceeds from drawdowns on Concierge credit facility | 9.2 | 6.3 | |||||||||
Repayments of drawdowns on Concierge credit facility | (7.1) | (4.5) | |||||||||
Payments of contingent consideration related to acquisitions | (2.0) | (6.3) | |||||||||
Payments of debt issuance costs for credit facilities | — | (1.4) | |||||||||
Payments of deferred offering costs | — | (2.5) | |||||||||
Net cash (used in) provided by financing activities | (1.8) | 6.0 | |||||||||
Net decrease in cash and cash equivalents | (142.4) | (110.5) | |||||||||
Cash and cash equivalents at beginning of period | 618.3 | 440.1 | |||||||||
Cash and cash equivalents at end of period | $ | 475.9 | $ | 329.6 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for interest | $ | 0.4 | $ | 0.1 | |||||||
Supplemental non-cash information: | |||||||||||
Issuance of common stock for acquisitions | $ | — | $ | 4.3 | |||||||
Conversion of Series D convertible preferred stock | $ | — | $ | 67.6 |
Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Compass, Inc. Stockholders’ Equity (Deficit) | Non-controlling interest | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2021: | ||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | 237,047,550 | $ | 1,486.7 | 122,971,900 | $ | — | $ | 238.0 | $ | — | $ | (1,100.9 | ) | $ | (862.9 | ) | $ | — | $ | (862.9 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | — | (319.3 | ) | (319.3 | ) | (0.3 | ) | (319.6 | ) | ||||||||||||||||||||||||||
Capital contribution from non-controlling interest | — | — | — | — | — | — | — | — | 5.0 | 5.0 | ||||||||||||||||||||||||||||||
Issuance of shares in connection with acquisitions | — | — | 855,740 | — | 10.1 | — | — | 10.1 | — | 10.1 | ||||||||||||||||||||||||||||||
Conversion of Series D convertible preferred stock | (15,920,450 | ) | (67.6 | ) | 15,920,450 | — | 67.6 | — | — | 67.6 | — | 67.6 | ||||||||||||||||||||||||||||
Conversion of convertible preferred stock to common stock in connection with the initial public offering | (221,127,100 | ) | (1,419.1 | ) | 223,033,725 | — | 1,419.1 | — | — | 1,419.1 | — | 1,419.1 | ||||||||||||||||||||||||||||
Issuance of common stock in connection with the initial public offering, net of issuance costs | — | — | 26,296,438 | — | 438.7 | — | — | 438.7 | — | 438.7 | ||||||||||||||||||||||||||||||
Issuance of stock for option exercises and RSU settlement s | — | — | 9,185,720 | — | 14.1 | — | — | 14.1 | — | 14.1 | ||||||||||||||||||||||||||||||
Early exercise of stock options | — | — | 818,590 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Vesting of early exercised stock options | �� | — | — | — | 3.8 | — | — | 3.8 | — | 3.8 | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 254.0 | — | — | 254.0 | — | 254.0 | ||||||||||||||||||||||||||||||
Balances at September 30, 2021 | — | $ | — | 399,082,563 | $ | — | $ | 2,445.4 | $ | — | $ | (1,420.2 | ) | $ | 1,025.2 | $ | 4.7 | $ | 1,029.9 | |||||||||||||||||||||
For the nine months ended September 30, 2020: | ||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | 246,365,350 | $ | 1,525.7 | 109,294,060 | $ | — | $ | 143.4 | $ | 0.1 | $ | (825.1 | ) | $ | (681.6 | ) | $ | — | $ | (681.6 | ) | |||||||||||||||||||
Cumulative change in accounting principle (ASU 2016-13) | — | — | — | — | — | — | (5.6 | ) | (5.6 | ) | — | (5.6 | ) | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (230.4 | ) | (230.4 | ) | — | (230.4 | ) | |||||||||||||||||||||||||||
Unrealized loss on investments | — | — | — | — | — | (0.1 | ) | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||||||||||||
Issuance of shares in connection with acquisitions | — | — | 401,310 | — | 1.2 | — | — | 1.2 | — | 1.2 | ||||||||||||||||||||||||||||||
Issuance of Series G convertible preferred stock, net of issuance costs | 64,820 | 1.0 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Issuance of stock for option exercises | — | — | 1,807,370 | — | 6.7 | — | — | 6.7 | — | 6.7 | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 30.2 | — | — | 30.2 | — | 30.2 | ||||||||||||||||||||||||||||||
Balances at September 30, 2020 | 246,430,170 | $ | 1,526.7 | 111,502,740 | $ | — | $ | 181.5 | $ | — | $ | (1,061.1 | ) | $ | (879.6 | ) | $ | — | $ | (879.6 | ) | |||||||||||||||||||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Operating Activities | ||||||||
Net loss | $ | (319.3 | ) | $ | (230.4 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 45.1 | 38.1 | ||||||
Stock-based compensation | 292.9 | 30.2 | ||||||
Change in acquisition related contingent consideration | (4.4 | ) | 5.5 | |||||
Bad debt expense | 8.9 | 12.7 | ||||||
Amortization of debt issuance costs | 0.9 | 0.1 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 1.6 | (65.7 | ) | |||||
Compass Concierge receivables | (7.1 | ) | 0.9 | |||||
Other current assets | (29.6 | ) | 14.9 | |||||
Other non-current assets | (13.4 | ) | (2.8 | ) | ||||
Operating lease right-of-use | 1.6 | 33.2 | ||||||
Accounts payable | (2.4 | ) | (12.8 | ) | ||||
Commissions payable | 8.8 | 56.9 | ||||||
Accrued expenses and other liabilities | 64.7 | 31.1 | ||||||
Net cash provided by (used in) operating activities | 48.3 | (88.1 | ) | |||||
Investing Activities | ||||||||
Proceeds from sales and maturities of marketable securities | — | 55.5 | ||||||
Capital expenditures | (33.6 | ) | (34.8 | ) | ||||
Payments for acquisitions, net of cash acquired | (127.3 | ) | (0.8 | ) | ||||
Net cash (used in) provided by investing activities | (160.9 | ) | 19.9 | |||||
Financing Activities | ||||||||
Proceeds from issuance of convertible preferred stock, net of issuance costs | — | 1.0 | ||||||
Proceeds from exercise and early exercise of stock options | 19.1 | 6.8 | ||||||
Proceeds from drawdowns on Concierge credit facility | 29.6 | 8.2 | ||||||
Repayments of drawdowns on Concierge credit facility | (19.3 | ) | — | |||||
Payments of contingent consideration related to acquisitions | (8.2 | ) | (3.2 | ) | ||||
Payments of debt issuance costs for credit facilities | (1.9 | ) | — | |||||
Proceeds from capital contribution of non-controlling interest in OriginPoint, LLC joint venture | 5.0 | — | ||||||
Proceeds from issuance of common stock upon initial public offering, net of offering costs | 439.6 | — | ||||||
Net cash provided by financing activities | 463.9 | 12.8 | ||||||
Net increase (decrease) in cash and cash equivalents | 351.3 | (55.4 | ) | |||||
Cash and cash equivalents at beginning of period | 440.1 | 491.7 | ||||||
Cash and cash equivalents at end of period | $ | 791.4 | $ | 436.3 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 0.7 | $ | — | ||||
Supplemental non-cash information: | ||||||||
Issuance of common stock for acquisitions | $ | 10.1 | $ | 1.2 | ||||
Conversion of convertible preferred stock in connection with initial public offering | $ | 1,419.1 | $ | — | ||||
Conversion of Series D convertible preferred stock | $ | 67.6 | $ | — | ||||
1. Business and Basis of Presentation |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Opening balance | $ | 24.4 | $ | 39.8 | |||||||||||||||||||
Acquisitions | — | 2.0 | |||||||||||||||||||||
Payments and issuances | (2.0) | (10.6) | |||||||||||||||||||||
Fair value losses (gains) included in net loss | 0.4 | (3.2) | |||||||||||||||||||||
Closing balance | $ | 22.8 | $ | 28.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Opening balance | $ | 33.0 | $ | 15.3 | $ | 39.8 | $ | 16.4 | ||||||||
Acquisitions | 0.7 | — | 5.4 | — | ||||||||||||
Payments and issuances | (2.7 | ) | (2.4 | ) | (13.7 | ) | (5.4 | ) | ||||||||
Fair value (gains) losses included in net loss | (3.9 | ) | 3.6 | (4.4 | ) | 5.5 | ||||||||||
Closing Balance | $ | 27.1 | $ | 16.5 | $ | 27.1 | $ | 16.5 | ||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Accrued expenses and other current liabilities | $ | 17.4 | $ | 12.9 | |||||||
Other non-current liabilities | 5.4 | 11.5 | |||||||||
Total contingent consideration | $ | 22.8 | $ | 24.4 |
September 30, 2021 | December 31, 2020 | |||||||
Accrued expenses and other current liabilities | $ | 12.1 | $ | 19.1 | ||||
Other non-current liabilities | 15.0 | 20.7 | ||||||
Total contingent consideration | $ | 27.1 | $ | 39.8 | ||||
March 31, 2022 | December 31, 2021 | ||||||||||
Discount rate | 0.0% - 2.0% | 0.0% - 2.0% | |||||||||
Weighted average discount rate | 0.6% | 0.5% | |||||||||
Earnings volatility | 0% - 15% | 0% - 15% | |||||||||
Weighted average earnings volatility | 3.5% | 3.3% |
September 30, 2021 | December 31, 2020 | |||
Discount rate | 0.0% - 2.0% | 0.0% - 2.0% | ||
Weighted average discount rate | 0.5% | 1.3% | ||
Earnings volatility | 0% - 15% | 0% - 18% | ||
Weighted average earnings volatility | 3.4% | 6.9% |
September 30, 2021 | ||||||||||||
Shares Authorized | Shares Issued | Shares Outstanding | ||||||||||
Class A common stock | 12,500,000,000 | 383,838,073 | 383,838,073 | |||||||||
Class B common stock | 1,250,000,000 | — | — | |||||||||
Class C common stock | 100,000,000 | 15,244,490 | 15,244,490 | |||||||||
Total | 13,850,000,000 | 399,082,563 | 399,082,563 | |||||||||
March 31, 2022 | |||||||||||||||||
Shares Authorized | Shares Issued | Shares Outstanding | |||||||||||||||
Class A common stock | 12,500,000,000 | 409,294,907 | 409,294,907 | ||||||||||||||
Class B common stock | 1,250,000,000 | — | — | ||||||||||||||
Class C common stock | 100,000,000 | 17,670,859 | 17,670,859 | ||||||||||||||
Total | 13,850,000,000 | 426,965,766 | 426,965,766 |
December 31, 2021 | |||||||||||||||||
Shares Authorized | Shares Issued | Shares Outstanding | |||||||||||||||
Class A common stock | 12,500,000,000 | 391,912,514 | 391,912,514 | ||||||||||||||
Class B common stock | 1,250,000,000 | — | — | ||||||||||||||
Class C common stock | 100,000,000 | 17,355,237 | 17,355,237 | ||||||||||||||
Total | 13,850,000,000 | 409,267,751 | 409,267,751 |
December 31, 2020 | ||||||||||||
Shares Authorized | Shares Issued | Shares Outstanding | ||||||||||
Class A common stock | 530,136,050 | 118,549,390 | 116,299,390 | |||||||||
Class B common stock | 170,618,860 | 6,672,510 | 6,672,510 | |||||||||
Total | 700,754,910 | 125,221,900 | 122,971,900 | |||||||||
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contract Term (in years) | Aggregate Intrinsic Value (1) | ||||||||||||||||||||
Balances as of December 31, 2021 | 54,525,539 | $ | 5.30 | 7.1 | $ | 221.3 | |||||||||||||||||
Granted | 75,376 | 8.10 | |||||||||||||||||||||
Exercised | (2,594,589) | 2.10 | |||||||||||||||||||||
Forfeited | (652,838) | 7.05 | |||||||||||||||||||||
Balances as of March 31, 2022 | 51,353,488 | $ | 5.45 | 6.9 | $ | 143.9 | |||||||||||||||||
Exercisable and vested at March 31, 2022 | 33,974,772 | $ | 4.36 | 6.3 | $ | 123.8 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contract Term (in years) | Aggregate Intrinsic Value | |||||||||||||
Balances as of December 31, 2020 | 62,827,150 | $ | 4.55 | 7.8 | $ | 1,208.0 | ||||||||||
Granted | 3,262,457 | 13.93 | ||||||||||||||
Exercised | (6,224,067 | ) | 3.08 | |||||||||||||
Forfeited | (1,377,408 | ) | 6.62 | |||||||||||||
Balances as of September 30, 2021 | 58,488,132 | $ | 5.17 | 7.2 | $ | 478.7 | ||||||||||
Exercisable and vested at September 30, 2021 | 35,425,241 | $ | 3.75 | 6.3 | $ | 337.1 | ||||||||||
Number of S | Weighted Average Grant Date Fair Value | |||||||
Balances as of December 31, 2020 | 32,556,160 | $ | 6.75 | |||||
Granted | 32,872,347 | 14.09 | ||||||
Vested and converted to common stock | (3,786,513 | ) | 16.71 | |||||
Forfeited | (2,159,492 | ) | 13.06 | |||||
Balances as of September 30, 2021 | 59,482,502 | $ | 9.94 | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Commissions and other related expense | $ | 26.3 | $ | 0.5 | $ | 82.6 | $ | 5.1 | ||||||||
Sales and marketing | 10.3 | 2.6 | 27.9 | 8.0 | ||||||||||||
Operations and support | 4.5 | 0.7 | 12.3 | 2.2 | ||||||||||||
Research and development | 13.2 | 0.3 | 76.2 | 1.1 | ||||||||||||
General and administrative | 16.8 | 2.0 | 93.9 | 13.8 | ||||||||||||
Total stock-based compensation expense | $ | 71.1 | $ | 6.1 | $ | 292.9 | $ | 30.2 | ||||||||
IPO Related Expense | ||||
Commissions and other related expense | $ | 41.7 | ||
Sales and marketing | 1.8 | |||
Operations and support | 3.1 | |||
Research and development | 46.9 | |||
General and administrative | 55.0 | |||
Total stock-based compensation expense | $ | 148.5 | ||
Number of Awards | Weighted Average Grant Date Fair Value | ||||||||||
Balances as of December 31, 2021 | 54,517,930 | $ | 10.29 | ||||||||
Granted | 25,945,789 | 7.57 | |||||||||
Vested and converted to common stock (1) | (16,011,880) | 8.07 | |||||||||
Forfeited | (1,989,206) | 13.00 | |||||||||
Balances as of March 31, 2022 | 62,462,633 | $ | 9.64 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Commissions and other related expense | $ | 17.0 | $ | 44.6 | |||||||||||||||||||
Sales and marketing | 10.7 | 9.0 | |||||||||||||||||||||
Operations and support | 4.3 | 5.0 | |||||||||||||||||||||
Research and development | 16.9 | 49.5 | |||||||||||||||||||||
General and administrative | 14.9 | 59.4 | |||||||||||||||||||||
Total stock-based compensation expense | $ | 63.8 | $ | 167.5 |
IPO Related Expense | |||||
Commissions and other related expense | $ | 41.7 | |||
Sales and marketing | 1.8 | ||||
Operations and support | 3.1 | ||||
Research and development | 46.9 | ||||
General and administrative | 55.0 | ||||
Total stock-based compensation expense | $ | 148.5 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net loss attributable to Compass, Inc. | $ | (188.0) | $ | (212.4) | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average number of shares outstanding used to compute net loss per share attributable to Compass, Inc., basic and diluted | 415,384,878 | 126,917,284 | |||||||||||||||||||||
Net loss per share attributable to Compass, Inc., basic and diluted | $ | (0.45) | $ | (1.67) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss attributable to common stockholders | $ | (99.8 | ) | $ | (13.5 | ) | $ | (319.3 | ) | $ | (230.4 | ) | ||||
Denominator: | ||||||||||||||||
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted | 392,979,596 | 110,447,900 | 300,303,264 | 109,448,680 | ||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.25 | ) | $ | (0.12 | ) | $ | (1.06 | ) | $ | (2.11 | ) | ||||
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Convertible preferred stock | — | 223,033,725 | |||||||||||||||||||||
Outstanding stock options | 51,353,488 | 59,603,390 | |||||||||||||||||||||
Outstanding RSUs | 62,462,633 | 50,272,925 | |||||||||||||||||||||
Shares subject to the employee stock purchase plan | 677,239 | — | |||||||||||||||||||||
Unvested early exercised options | 862,080 | 1,740,600 | |||||||||||||||||||||
Unvested common stock | 261,312 | 525,930 | |||||||||||||||||||||
Total | 115,616,752 | 335,176,570 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Convertible preferred stock | — | 248,336,668 | — | 248,336,668 | ||||||||||||
Outstanding stock options | 58,488,132 | 62,507,670 | 58,488,132 | 62,507,670 | ||||||||||||
Outstanding RSUs | 59,482,502 | 29,089,920 | 59,482,502 | 29,089,920 | ||||||||||||
Unvested early exercised options | 1,181,720 | — | 1,181,720 | — | ||||||||||||
Unvested common stock | 574,926 | 754,710 | 574,926 | 754,710 | ||||||||||||
Total | 119,727,280 | 340,688,968 | 119,727,280 | 340,688,968 | ||||||||||||
Three Months Ended March 31, 2022 | |||||||||||
Beginning of period | $ | 17.3 | |||||||||
Allowances | 0.8 | ||||||||||
Net write-offs and other | (2.0) | ||||||||||
End of period | $ | 16.1 |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||
Beginning of period | $ | 19.3 | $ | 17.2 | ||||
Allowances | 2.5 | 7.2 | ||||||
Net write-offs and other | (1.8 | ) | (4.4 | ) | ||||
End of period | $ | 20.0 | $ | 20.0 | ||||
31-90 days | Over 90 days | Total Past Due | Current | Total | ||||||||||||||||
September 30, 2021 | $ | 0.6 | $ | 12.6 | $ | 13.2 | $ | 56.2 | $ | 69.4 |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
Severance | Lease Terminaion | Total | Severance | Lease Terminaion | Total | |||||||||||||||||||
Sales and marketing | $ | — | $ | 1.2 | $ | 1.2 | $ | 1.5 | $ | 4.2 | $ | 5.7 | ||||||||||||
Operations and support | — | — | — | 2.9 | — | 2.9 | ||||||||||||||||||
Research and development | — | — | — | 0.7 | — | 0.7 | ||||||||||||||||||
General and administrative | — | — | — | 0.9 | — | 0.9 | ||||||||||||||||||
Total | $ | — | $ | 1.2 | $ | 1.2 | $ | 6.0 | $ | 4.2 | $ | 10.2 | ||||||||||||
March 31, 2022 | |||||
Current | $ | 56.3 | |||
31-90 days past due | 1.2 | ||||
Over 90 days past due | 5.6 | ||||
Total | $ | 63.1 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 1,397.0 | 100.0 | % | $ | 1,113.9 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Commissions and other related expense (1) | 1,146.4 | 82.1 | 942.2 | 84.6 | |||||||||||||||||||||||||||||||||||||||||||
Sales and marketing (1) | 145.0 | 10.4 | 111.3 | 10.0 | |||||||||||||||||||||||||||||||||||||||||||
Operations and support (1) | 108.9 | 7.8 | 70.0 | 6.3 | |||||||||||||||||||||||||||||||||||||||||||
Research and development (1) | 108.2 | 7.7 | 96.6 | 8.7 | |||||||||||||||||||||||||||||||||||||||||||
General and administrative (1) | 55.3 | 4.0 | 92.9 | 8.3 | |||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 18.7 | 1.3 | 13.5 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 1,582.5 | 113.3 | 1,326.5 | 119.1 | |||||||||||||||||||||||||||||||||||||||||||
Loss from operations | (185.5) | (13.3) | (212.6) | (19.1) | |||||||||||||||||||||||||||||||||||||||||||
Investment income, net | 0.1 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (0.7) | (0.1) | (0.5) | — | |||||||||||||||||||||||||||||||||||||||||||
Loss before income taxes and equity in loss of unconsolidated entity | (186.1) | (13.3) | (213.1) | (19.1) | |||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (0.1) | — | 0.7 | 0.1 | |||||||||||||||||||||||||||||||||||||||||||
Equity in loss of unconsolidated entity | (2.1) | (0.2) | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net loss | (188.3) | (13.5) | (212.4) | (19.1) | |||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests | 0.3 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to Compass, Inc. | $ | (188.0) | (13.5 | %) | $ | (212.4) | (19.1 | %) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||
Revenue | $ | 1,743.6 | 100.0 | % | $ | 1,188.5 | 100.0 | % | $ | 4,808.9 | 100.0 | % | $ | 2,490.5 | 100.0 | % | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Commissions and other related expense (1) | 1,430.6 | 82.0 | 979.4 | 82.4 | 3,963.2 | 82.4 | 2,047.2 | 82.2 | ||||||||||||||||||||||||
Sales and marketing (1) | 130.6 | 7.5 | 99.7 | 8.4 | 366.2 | 7.6 | 297.0 | 11.9 | ||||||||||||||||||||||||
Operations and support (1) | 97.0 | 5.6 | 53.3 | 4.5 | 263.7 | 5.5 | 158.9 | 6.4 | ||||||||||||||||||||||||
Research and development (1) | 89.7 | 5.1 | 33.7 | 2.8 | 259.8 | 5.4 | 106.7 | 4.3 | ||||||||||||||||||||||||
General and administrative (1) | 79.5 | 4.6 | 22.7 | 1.9 | 231.8 | 4.8 | 75.7 | 3.0 | ||||||||||||||||||||||||
Depreciation and amortization | 16.7 | 1.0 | 13.0 | 1.1 | 45.1 | 0.9 | 38.1 | 1.5 | ||||||||||||||||||||||||
Total operating expenses | 1,844.1 | 105.8 | 1,201.8 | 101.1 | 5,129.8 | 106.7 | 2,723.6 | 109.4 | ||||||||||||||||||||||||
Loss from operations | (100.5 | ) | (5.8 | ) | (13.3 | ) | (1.1 | ) | (320.9 | ) | (6.7 | ) | (233.1 | ) | (9.4 | ) | ||||||||||||||||
Investment income, net | 0.1 | 0.0 | — | — | 0.1 | 0.0 | 2.0 | 0.1 | ||||||||||||||||||||||||
Interest expense | (0.7 | ) | (0.0 | ) | (0.2 | ) | (0.0 | ) | (1.8 | ) | (0.0 | ) | (0.2 | ) | (0.0 | ) | ||||||||||||||||
Loss before income taxes | (101.1 | ) | (5.8 | ) | (13.5 | ) | (1.1 | ) | (322.6 | ) | (6.7 | ) | (231.3 | ) | (9.3 | ) | ||||||||||||||||
Benefit from income taxes | 1.3 | 0.1 | — | — | 3.3 | 0.1 | 0.9 | 0.0 | ||||||||||||||||||||||||
Net loss | $ | (99.8 | ) | -5.7 | % | $ | (13.5 | ) | -1.1 | % | $ | (319.3 | ) | -6.6 | % | $ | (230.4 | ) | -9.3 | % | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Commissions and other related expense | $ | 26.3 | $ | 0.5 | $ | 82.6 | $ | 5.1 | Commissions and other related expense | $ | 17.0 | $ | 44.6 | ||||||||||||||||||||||||||||||||
Sales and marketing | 10.3 | 2.6 | 27.9 | 8.0 | Sales and marketing | 10.7 | 9.0 | ||||||||||||||||||||||||||||||||||||||
Operations and support | 4.5 | 0.7 | 12.3 | 2.2 | Operations and support | 4.3 | 5.0 | ||||||||||||||||||||||||||||||||||||||
Research and development | 13.2 | 0.3 | 76.2 | 1.1 | Research and development | 16.9 | 49.5 | ||||||||||||||||||||||||||||||||||||||
General and administrative | 16.8 | 2.0 | 93.9 | 13.8 | General and administrative | 14.9 | 59.4 | ||||||||||||||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 71.1 | $ | 6.1 | $ | 292.9 | $ | 30.2 | Total stock-based compensation expense | $ | 63.8 | $ | 167.5 | ||||||||||||||||||||||||||||||||
IPO Related Expense | ||||
Commissions and other related expense | $ | 41.7 | ||
Sales and marketing | 1.8 | |||
Operations and support | 3.1 | |||
Research and development | 46.9 | |||
General and administrative | 55.0 | |||
Total stock-based compensation expense | $ | 148.5 | ||
IPO Related Expense | |||||
Commissions and other related expense | $ | 41.7 | |||
Sales and marketing | 1.8 | ||||
Operations and support | 3.1 | ||||
Research and development | 46.9 | ||||
General and administrative | 55.0 | ||||
Total stock-based compensation expense | $ | 148.5 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 1,397.0 | $ | 1,113.9 | $ | 283.1 | 25.4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||
Revenue | $ | 1,743.6 | $ | 1,188.5 | $ | 555.1 | 46.7 | % | $ | 4,808.9 | $ | 2,490.5 | $ | 2,318.4 | 93.1 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commissions and other related expense | $ | 1,430.6 | $ | 979.4 | $ | 451.2 | 46.1 | % | $ | 3,963.2 | $ | 2,047.2 | $ | 1,916.0 | 93.6 | % | Commissions and other related expense | $ | 1,146.4 | $ | 942.2 | $ | 204.2 | 21.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 82.0 | % | 82.4 | % | 82.4 | % | 82.2 | % | Percentage of revenue | 82.1 | % | 84.6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | $ | 130.6 | $ | 99.7 | $ | 30.9 | 31.0 | % | $ | 366.2 | $ | 297.0 | $ | 69.2 | 23.3 | % | Sales and marketing | $ | 145.0 | $ | 111.3 | $ | 33.7 | 30.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 7.5 | % | 8.4 | % | 7.6 | % | 11.9 | % | Percentage of revenue | 10.4 | % | 10.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations and support | $ | 97.0 | $ | 53.3 | $ | 43.7 | 82.0 | % | $ | 263.7 | $ | 158.9 | $ | 104.8 | 66.0 | % | Operations and support | $ | 108.9 | $ | 70.0 | $ | 38.9 | 55.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 5.6 | % | 4.5 | % | 5.5 | % | 6.4 | % | Percentage of revenue | 7.8 | % | 6.3 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 108.2 | $ | 96.6 | $ | 11.6 | 12.0 | % | |||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 7.7 | % | 8.7 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||
Research and development | $ | 89.7 | $ | 33.7 | $ | 56.0 | 166.2 | % | $ | 259.8 | $ | 106.7 | $ | 153.1 | 143.5 | % | ||||||||||||||||
Percentage of revenue | 5.1 | % | 2.8 | % | 5.4 | % | 4.3 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | $ | 55.3 | $ | 92.9 | $ | (37.6) | (40.5 | %) | |||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 4.0 | % | 8.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||
General and administrative | $ | 79.5 | $ | 22.7 | $ | 56.8 | 250.2 | % | $ | 231.8 | $ | 75.7 | $ | 156.1 | 206.2 | % | ||||||||||||||||
Percentage of revenue | 4.6 | % | 1.9 | % | 4.8 | % | 3.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 16.7 | $ | 13.0 | $ | 3.7 | 28.5 | % | $ | 45.1 | $ | 38.1 | $ | 7.0 | 18.4 | % | Depreciation and amortization | $ | 18.7 | $ | 13.5 | $ | 5.2 | 38.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 1.0 | % | 1.1 | % | 0.9 | % | 1.5 | % | Percentage of revenue | 1.3 | % | 1.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||
Investment income, net | $ | 0.1 | $ | — | $ | 0.1 | 100.0 | % | $ | 0.1 | $ | 2.0 | $ | (1.9 | ) | -95.0 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net | $ | 0.1 | $ | — | $ | 0.1 | 100.0 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | (0.7) | $ | (0.5) | $ | (0.2) | 40.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||
Interest expense | $ | (0.7 | ) | $ | (0.2 | ) | $ | (0.5 | ) | 250.0 | % | $ | (1.8 | ) | $ | (0.2 | ) | $ | (1.6 | ) | 800.0 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | $ | (0.1) | $ | 0.7 | $ | (0.8) | (114.3 | %) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | 2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||||
Benefit from income taxes | $ | 1.3 | $ | — | $ | 1.3 | 100.0 | % | $ | 3.3 | $ | 0.9 | $ | 2.4 | 266.7 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Equity in loss of unconsolidated entity | $ | (2.1) | $ | — | $ | (2.1) | 100.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Total Transactions | 62,349 | 45,910 | 168,360 | 97,378 | ||||||||||||
Gross Transaction Value (in billions) | $ | 69.1 | $ | 47.8 | $ | 189.9 | $ | 99.8 | ||||||||
Average Number of Principal Agents | 11,616 | 8,848 | 10,686 | 8,511 | ||||||||||||
Net Loss (in millions) | $ | (99.8 | ) | $ | (13.5 | ) | $ | (319.3 | ) | $ | (230.4 | ) | ||||
Net Loss Margin | -5.7 | % | -1.1 | % | -6.6 | % | -9.3 | % | ||||||||
Adjusted EBITDA (1) (in millions) | $ | 12.2 | $ | 11.0 | $ | 52.9 | $ | (147.5 | ) | |||||||
Adjusted EBITDA Margin (1) | 0.7 | % | 0.9 | % | 1.1 | % | -5.9 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Total Transactions | 47,367 | 40,268 | |||||||||||||||||||||
Gross Transaction Value (in billions) | $ | 53.7 | $ | 43.8 | |||||||||||||||||||
Average Number of Principal Agents | 12,574 | 9,812 | |||||||||||||||||||||
Net loss attributable to Compass, Inc. (in millions) | $ | (188.0) | $ | (212.4) | |||||||||||||||||||
Net loss attributable to Compass, Inc. margin | (13.5 | %) | (19.1 | %) | |||||||||||||||||||
Adjusted EBITDA(1) (in millions) | $ | (96.7) | $ | (30.6) | |||||||||||||||||||
Adjusted EBITDA margin(1) | (6.9 | %) | (2.7 | %) |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Net loss attributable to Compass, Inc. | $ | (188.0) | $ | (212.4) | |||||||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Depreciation and amortization | 18.7 | 13.5 | |||||||||||||||||||||
Investment income, net | (0.1) | — | |||||||||||||||||||||
Interest expense | 0.7 | 0.5 | |||||||||||||||||||||
Stock-based compensation | 63.8 | 167.5 | |||||||||||||||||||||
Income tax expense (benefit) | 0.1 | (0.7) | |||||||||||||||||||||
Acquisition-related expenses(1) | 8.1 | 1.0 | |||||||||||||||||||||
Adjusted EBITDA | $ | (96.7) | $ | (30.6) | |||||||||||||||||||
Net loss attributable to Compass, Inc. margin | (13.5 | %) | (19.1 | %) | |||||||||||||||||||
Adjusted EBITDA margin | (6.9 | %) | (2.7 | %) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net loss | $ | (99.8 | ) | $ | (13.5 | ) | $ | (319.3 | ) | $ | (230.4 | ) | ||||
Adjusted to exclude the following: | ||||||||||||||||
Depreciation and amortization | 16.7 | 13.0 | 45.1 | 38.1 | ||||||||||||
Investment income, net | (0.1 | ) | — | (0.1 | ) | (2.0 | ) | |||||||||
Interest expense | 0.7 | 0.2 | 1.8 | 0.2 | ||||||||||||
Stock-based compensation | 71.1 | 6.1 | 292.9 | 30.2 | ||||||||||||
Benefit from income taxes | (1.3 | ) | — | (3.3 | ) | (0.9 | ) | |||||||||
Restructuring charges (1) | — | 1.2 | — | 10.2 | ||||||||||||
Acquisition-related expenses (2) | 3.6 | 4.0 | 14.5 | 7.1 | ||||||||||||
Litigation charge (3) | 21.3 | — | 21.3 | — | ||||||||||||
Adjusted EBITDA | $ | 12.2 | $ | 11.0 | $ | 52.9 | $ | (147.5 | ) | |||||||
Net Loss Margin | -5.7 | % | -1.1 | % | -6.6 | % | -9.3 | % | ||||||||
Adjusted EBITDA Margin | 0.7 | % | 0.9 | % | 1.1 | % | -5.9 | % | ||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
Commissions and other related expense | Sales and marketing | Operations and support | Research and development | General and administrative | |||||||||||||||||||||||||
GAAP Basis | $ | 1,146.4 | $ | 145.0 | $ | 108.9 | $ | 108.2 | $ | 55.3 | |||||||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||||||||
Stock-based compensation | (17.0) | (10.7) | (4.3) | (16.9) | (14.9) | ||||||||||||||||||||||||
Acquisition-related expenses | — | — | (8.1) | — | — | ||||||||||||||||||||||||
Non-GAAP Basis | $ | 1,129.4 | $ | 134.3 | $ | 96.5 | $ | 91.3 | $ | 40.4 |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
Commissions and other related expense | Sales and marketing | Operations and support | Research and development | General and administrative | |||||||||||||||||||||||||
GAAP Basis | $ | 942.2 | $ | 111.3 | $ | 70.0 | $ | 96.6 | $ | 92.9 | |||||||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||||||||
Stock-based compensation | (44.6) | (9.0) | (5.0) | (49.5) | (59.4) | ||||||||||||||||||||||||
Acquisition-related expenses | — | — | (1.0) | — | — | ||||||||||||||||||||||||
Non-GAAP Basis | $ | 897.6 | $ | 102.3 | $ | 64.0 | $ | 47.1 | $ | 33.5 |
Three Months Ended September 30, 2021 | ||||||||||||||||||||
Commissions and other related expense | Sales and marketing | Operations and support | Research and development | General and administrative | ||||||||||||||||
GAAP Basis | $ | 1,430.6 | $ | 130.6 | $ | 97.0 | $ | 89.7 | $ | 79.5 | ||||||||||
Adjusted to exclude the following: | ||||||||||||||||||||
Stock-based compensation | (26.3 | ) | (10.3 | ) | (4.5 | ) | (13.2 | ) | (16.8 | ) | ||||||||||
Acquisition-related expenses | — | — | (3.6 | ) | — | — | ||||||||||||||
Litigation charge | — | — | — | — | (21.3 | ) | ||||||||||||||
Non-GAAP Basis | $ | 1,404.3 | $ | 120.3 | $ | 88.9 | $ | 76.5 | $ | 41.4 | ||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||
Commissions and other related expense | Sales and marketing | Operations and support | Research and development | General and administrative | ||||||||||||||||
GAAP Basis | $ | 979.4 | $ | 99.7 | $ | 53.3 | $ | 33.7 | $ | 22.7 | ||||||||||
Adjusted to exclude the following: | ||||||||||||||||||||
Stock-based compensation | (0.5 | ) | (2.6 | ) | (0.7 | ) | (0.3 | ) | (2.0 | ) | ||||||||||
Restructuirng charges | — | (1.2 | ) | — | — | — | ||||||||||||||
Acquisition-related expenses | — | — | (4.0 | ) | — | — | ||||||||||||||
Non-GAAP Basis | $ | 978.9 | $ | 95.9 | $ | 48.6 | $ | 33.4 | $ | 20.7 | ||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||
Commissions and other related expense | Sales and marketing | Operations and support | Research and development | General and administrative | ||||||||||||||||
GAAP Basis | $ | 3,963.2 | $ | 366.2 | $ | 263.7 | $ | 259.8 | $ | 231.8 | ||||||||||
Adjusted to exclude the following: | ||||||||||||||||||||
Stock-based compensation | (82.6 | ) | (27.9 | ) | (12.3 | ) | (76.2 | ) | (93.9 | ) | ||||||||||
Acquisition-related expenses | — | — | (14.5 | ) | — | — | ||||||||||||||
Litigation charge | — | — | — | — | (21.3 | ) | ||||||||||||||
Non-GAAP Basis | $ | 3,880.6 | $ | 338.3 | $ | 236.9 | $ | 183.6 | $ | 116.6 | ||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||
Commissions and other related expense | Sales and marketing | Operations and support | Research and development | General and administrative | ||||||||||||||||
GAAP Basis | $ | 2,047.2 | $ | 297.0 | $ | 158.9 | $ | 106.7 | $ | 75.7 | ||||||||||
Adjusted to exclude the following: | ||||||||||||||||||||
Stock-based compensation | (5.1 | ) | (8.0 | ) | (2.2 | ) | (1.1 | ) | (13.8 | ) | ||||||||||
Restructuirng charges | — | (5.7 | ) | (2.9 | ) | (0.7 | ) | (0.9 | ) | |||||||||||
Acquisition-related expenses | — | — | (7.1 | ) | — | — | ||||||||||||||
Non-GAAP Basis | $ | 2,042.1 | $ | 283.3 | $ | 146.7 | $ | 104.9 | $ | 61.0 | ||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Net cash used in operating activities | $ | (111.0) | $ | (47.3) | |||||||
Net cash used in investing activities | (29.6) | (69.2) | |||||||||
Net cash (used in) provided by financing activities | (1.8) | 6.0 | |||||||||
Net decrease in cash and cash equivalents | $ | (142.4) | $ | (110.5) |
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(in millions) | ||||||||
Net cash provided by (used in) operating activities | $ | 48.3 | $ | (88.1 | ) | |||
Net cash (used in) provided by investing activities | (160.9 | ) | 19.9 | |||||
Net cash provided by financing activities | 463.9 | 12.8 | ||||||
Net increase (decrease) in cash and cash equivalents | $ | 351.3 | $ | (55.4 | ) | |||
Exhibit Index | ||||||||||||||||||||||||||||||||||||||
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||||||||
10.1 | X | |||||||||||||||||||||||||||||||||||||
10.2 | X | |||||||||||||||||||||||||||||||||||||
10.3 | X | |||||||||||||||||||||||||||||||||||||
10.4 | X | |||||||||||||||||||||||||||||||||||||
10.5 | 8-K | 001-40291 | 10.1 | 3/17/2022 | ||||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1* | X | |||||||||||||||||||||||||||||||||||||
32.2* | X | |||||||||||||||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | X | ||||||||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | X | ||||||||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | X | ||||||||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | X | ||||||||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | X | ||||||||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | X |
Furnished | ||||||||||||||
COMPASS, INC. | ||||||||
By: | /s/ Robert Reffkin | |||||||
Robert Reffkin | ||||||||
Chairman and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Date: May 13, 2022 | By: | /s/ Kristen Ankerbrandt | ||||||
Kristen Ankerbrandt | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |