Compass, Inc. (NYSE:COMP) Q4 2022 Earnings Conference Call February 28, 2023 5:00 PM ET

Company Participants

Richard Simonelli – Vice President-Investor Relations

Greg Hart – Chief Operating Officer

Robert Reffkin – Founder, Chairman and Chief Executive Officer

Kalani Reelitz – Chief Financial Officer

Conference Call Participants

Jason Holstein – Oppenheimer

Bernie McTernan – Needham & Company

Ryan McKeveny – Zelman & Associates

Lloyd Walmsley – UBS

Matthew Bouley – Barclays

Operator

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Compass Inc. Fourth Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

Thank you. It's now my pleasure to turn today's call over to Mr. Richard Simonelli, Vice President of Investor Relations. Sir, please go ahead.

Richard Simonelli

Thank you, operator. We appreciate it. Good afternoon, and thank you for joining the Compass fourth quarter and full year 2022 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, and you can find a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our fourth quarter and full year 2022 earnings release. A case of free cash flow in the presentation each posted on our Investor Relations website.

We will make forward-looking statements that are based on our current expectations, forecasts and assumptions that involve risks and uncertainties. These statements include our guidance for the first quarter 2023 and comments related to our operating expenses. 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 report on Form 10-Q filed with the SEC and available also on our Investor Relations website. You should not place any undue reliance on any forward-looking statements. All information in this presentation is as of today's date, February 28, 2023, and we expressly disclaim any obligations to update this information.

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

Robert Reffkin

Thank you for joining us today for our fourth quarter and full year results conference call. I want to start by thanking the entire Compass team of employees and agents. Their incredible dedication in these difficult times allows us to go into 2023 and beyond with the confidence that we have a strong foundation for future success. 2022 was a very difficult year in residential real estate, with the industry seeing one of the sharpest declines in transaction volume in decades. I am pleased to report that Compass revenue for 2022 was just over $6 billion, down 6% compared to 2021, which was our best revenue year ever and the best year in the industry on a volume basis. This is a major accomplishment when you consider transactions declined industry-wide 18% year-over-year.