Sep 30, 2024

Compass Q3 2024 Earnings Report

Compass Q3 2024 earnings significantly improved year-over-year, driven by transaction growth and market share gains, despite a challenging real estate market.

Key Takeaways

Compass, Inc. reported strong Q3 2024 results, with revenue increasing by 11.7% year-over-year to $1.5 billion. The company achieved significant Adjusted EBITDA growth and positive free cash flow, driven by transaction increases and market share gains. Compass is well-positioned to deliver meaningful Adjusted EBITDA and be free cash flow positive for the full year.

Revenue increased by 11.7% year-over-year to $1.5 billion.

GAAP Net loss improved by $37.7 million to a loss of $1.7 million.

Adjusted EBITDA improved by $30.2 million to $52.0 million.

Transactions increased 16.1% year-over-year, while the market declined 1.9%.

Total Revenue
$1.49B
Previous year: $1.34B
+11.7%
EPS
-$0.00336
Previous year: -$0.08
-95.8%
Average Number of Principal Agents
17.54K
Previous year: 14.06K
+24.8%
Total Transactions
55.87K
Previous year: 48.13K
+16.1%
Gross Transaction Value
$57.7B
Previous year: $50.9B
+13.4%
Gross Profit
$182M
Previous year: $241M
-24.6%
Cash and Equivalents
$211M
Previous year: $220M
-4.0%
Free Cash Flow
$32.8M
Previous year: $12.2M
+168.9%
Total Assets
$1.2B
Previous year: $1.26B
-5.0%

Compass

Compass

Forward Guidance

Compass provided guidance for Q4 2024 and the full year 2024, including revenue and Adjusted EBITDA expectations, and expects to be free cash flow positive for the full year.

Positive Outlook

  • Revenue of $1.225 billion to $1.325 billion for Q4.
  • Revenue of $5.47 billion to $5.57 billion for the full year.
  • Adjusted EBITDA of $0 to $10 million for Q4.
  • Adjusted EBITDA of $109 million to $119 million for the full year.
  • Expects to be free cash flow positive for the full year 2024.