Compass, Inc. (NYSE: COMP) has announced an update to its Q4 2024 and full-year 2024 outlook. The company has raised its Q4 2024 revenue outlook to $1.36 billion to $1.39 billion, up from the previous estimate of $1.225 billion to $1.325 billion. Additionally, the full-year 2024 revenue outlook has been increased to $5.61 billion to $5.64 billion, compared to the previous estimate of $5.47 billion to $5.57 billion.
In terms of adjusted EBITDA, the company now expects Q4 2024 adjusted EBITDA to be in the range of $15 million to $18 million, a significant increase from the previous estimate of $0 to $10 million. Furthermore, the full-year 2024 adjusted EBITDA outlook has been raised to $124 million to $127 million, up from the previous estimate of $109 million to $119 million.
Compass also anticipates that its total 2024 non-GAAP operating expenses (opex) will be slightly below the low-end of its previously announced range of $876 million to $896 million.
It's worth noting that the company has emphasized its focus on operating expense discipline, with the expectation to generate positive free cash flow in every quarter of 2024, including historically negative free cash flow quarters.
These revisions to the outlook come as Compass reports a 50% improvement in recruiting over 650 principal agents organically in the fourth quarter of 2024 compared to the year-ago period, highlighting its ability to outperform the market while maintaining operating expense discipline.
As a result, investors are expected to closely monitor these updated financial projections as the company participates in the Needham Growth Conference. Today the company's shares have moved 18.1% to a price of $6.59. Check out the company's full 8-K submission here.
