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Compass (NYSE:COMP) shares skyrocketed nearly 18% this morning after the company boosted its fourth-quarter and full-year 2024 outlook ahead of the Needham Growth Conference. In a year marked by the lowest resale transactions in nearly three decades, Compass has defied industry challenges to project record Adjusted EBITDA and free cash flow. CEO Robert Reffkin credited the company's disciplined approach to operating expenses and a 50% year-over-year increase in agent recruitment as key drivers of its market-beating performance.
CFO Kalani Reelitz pointed out that Compass managed to generate positive free cash flow every quarter this year, including the typically weak Q4a testament to the company's operational efficiency. The updated forecast now expects Q4 revenue between $1.36 billion and $1.39 billion, up from prior guidance, and full-year revenue to land at $5.61 billion to $5.64 billion. The company also anticipates operating expenses to come in below the low end of earlier projections, bolstering confidence in its financial discipline.
For investors, the message is clear: Compass is setting the standard for resilience in a tough market. With a mix of strategic execution and consistent cash flow, the company is emerging as a rare bright spot in the real estate sector. Analysts and shareholders alike are watching closely as Compass continues to outperform expectations.
This article first appeared on GuruFocus.