Compass, Inc. (NYSE:COMP) Q2 2023 Earnings Conference Call August 7, 2023 5:00 PM ET

Company Participants

Richard Simonelli - Vice President of Investor Relations

Robert Reffkin - Founder and Chief Executive Officer

Greg Hart - Chief Operating Officer

Kalani Reelitz - Chief Financial Officer

Conference Call Participants

Bernie McTernan - Needham

Soham Bhonsle - BTIG

Jason Helfstein - Oppenheimer

Matthew Bouley - Barclays

Matthew Cost - Morgan Stanley

Ryan McKeveny - Zelman

Mike Ng - Goldman Sachs

Lloyd Walmsley - UBS

Operator

Good day, everyone, and welcome to the Compass Second Quarter 2023 Earnings Call.

I would now like to turn the conference over to Richard Simonelli, VP of Investor Relations. Please go ahead.

Richard Simonelli

Thank you, operator, and we appreciate your time today, folks. Good afternoon, and thank you for joining the Compass second quarter 2023 earnings call.

Joining us today will be Robert Reffkin, our Founder and Chief Executive Officer; and Greg Hart, our Chief Operating Officer; and Kalani Reelitz, our Chief Financial Officer.

In discussing our company's performance, we will refer to some non-GAAP measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our second quarter 2023 earnings release posted on our Investor Relations website.

We will make forward-looking statements that are based on our current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include our guidance for the third quarter and full year 2023 and comments related to our operating expenses and cash flow levels as well as our expectations for operational achievements. Our actual results may differ materially from these statements. You can find more information about risks, uncertainties and other factors that could affect our results on our most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC and available also on our Investor Relations website.

You should not place undue reliance on any forward-looking statements, and all information in this presentation today is based upon our time at August 7, 2023. We expressly disclaim any obligation to update this information.

I'll now turn the call over to Robert Reffkin. Robert?

Robert Reffkin

Thank you, Rich, and thank you for joining us today for our second quarter results conference call.

I'm pleased to share that in the second quarter, we grew market share, grew agent count and grew margin, while delivering positive free cash flow and strengthening our cash position. We achieved strong financial results in line with guidance in the midst of a quarter that was impacted by mortgage rates increasing 100 basis points to 7% and unexpected market trauma resulting from the debt ceiling standoff in Congress. We will continue to take a disciplined approach to our operating expenses and run our business efficiently while still investing in our agents, platform and growth.