Compass, Inc. Reports Strong Third Quarter 2024 Results

by · The Cerbat Gem

Compass, Inc. (NYSE: COMP) has recently unveiled its financial results for the third quarter ended September 30, 2024. The company’s Adjusted EBITDA exceeded the high-end of its guidance, showcasing a substantial improvement in free cash flow. Despite challenges in the real estate market, Compass managed to increase its Adjusted EBITDA significantly year-over-year, positioning itself to achieve significant cash flow for the full year.

Robert Reffkin, the Founder and CEO of Compass, expressed confidence in the company’s performance given the challenging market environment. He noted a 16.1% increase in transactions during the third quarter compared to a market decline of 1.9%, attributing this success to the company’s growth strategies. Moreover, Compass increased its quarterly market share to 4.80% in Q3 2024 from 4.31% in Q3 2023.

Kalani Reelitz, the CFO of Compass, highlighted the company’s financial strength, ending the quarter with a cash balance of $211.2 million. In Q3 2024, Compass generated positive operating cash flow of $37.4 million and free cash flow of $32.8 million. Cost discipline was evident with OPEX decreasing by $3.8 million year-over-year and $2.4 million sequentially, showcasing the company’s commitment to controlling costs while surpassing market growth.

Key highlights from the third quarter include a revenue increase of 11.7% to $1.5 billion, a significant improvement from the same period last year. Compass also reported a GAAP net loss of $1.7 million, showing substantial progress from a net loss of $39.4 million in Q3 2023. Adjusted EBITDA rose to $52.0 million in Q3 2024 compared to $21.8 million in Q3 2023, reflecting a significant improvement.

Looking forward, Compass provided a positive outlook for the fourth quarter and full year 2024. The company expects revenue in the range of $1.225 billion to $1.325 billion for Q4 and $5.47 billion to $5.57 billion for the full year. Adjusted EBITDA is forecasted to be between $0 to $10 million for Q4 and $109 million to $119 million for the full year. Compass also aims to achieve non-GAAP OPEX of $876 million to $896 million and anticipates being free cash flow positive for the full year 2024.

For more detailed financial information and a comprehensive overview of Compass’s Q3 2024 results, the full 8-K SEC Filing can be accessed on the company’s website.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Compass’s 8K filing here.

About Compass

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Compass, Inc provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. The company offers mobile apps that allow agents to manage their business anytime and anywhere, as well as designs consumer-grade user interfaces, automated and simplified workflows for agent-client interactions, and insight-rich dashboards and reports.

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