Compass(US:COMP)2024-10-30 20:06Financial Performance - Revenue in Q3 2024 increased by 11.7% year-over-year to $1.5 billion, while transactions increased 16.1% compared to a 1.9% decline in the overall residential real estate market [2]. - Adjusted EBITDA for Q3 2024 was $52.0 million, an improvement of $30.2 million from $21.8 million in Q3 2023 [2]. - GAAP net loss in Q3 2024 was $1.7 million, an improvement of $37.7 million from a net loss of $39.4 million in Q3 2023 [2]. - Revenue for Q3 2024 was $1,494.0 million, an increase of 11.7% from $1,337.4 million in Q3 2023 [16]. - Total operating expenses for Q3 2024 were $1,497.4 million, up from $1,376.3 million in Q3 2023, reflecting a year-over-year increase of 8.8% [16]. - Net loss attributable to Compass, Inc. for Q3 2024 was $(1.7) million, compared to a net loss of $(39.4) million in Q3 2023, showing significant improvement [16]. - Net loss for the nine months ended September 30, 2024, improved to $114.1 million from $236.3 million in the same period of 2023, representing a 51.8% reduction [18]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $109.3 million, compared to a loss of $15.2 million in the same period of 2023 [19]. Cash Flow and Liquidity - Cash and cash equivalents at the end of Q3 2024 were $211.2 million, with positive operating cash flow of $37.4 million and free cash flow of $32.8 million [2]. - Cash and cash equivalents increased to $211.2 million as of September 30, 2024, up from $166.9 million at December 31, 2023 [15]. - Net cash provided by operating activities increased significantly to $91.0 million for the nine months ended September 30, 2024, compared to $12.8 million in the prior year [18]. - Free cash flow for the nine months ended September 30, 2024, was $79.1 million, a substantial increase from $3.9 million in the same period of 2023 [20]. - Cash and cash equivalents at the end of the period were $211.2 million, slightly down from $220.0 million at the end of September 30, 2023 [18]. Operational Metrics - The number of principal agents increased by 20.0% year-over-year to 17,542, with a quarterly retention rate of 97.8% [3]. - Gross Transaction Value (GTV) in Q3 2024 was $57.7 billion, up 13.4% from $50.9 billion in Q3 2023 [3]. - Total commissions and other related expenses for the nine months ended September 30, 2024, were $3,495.3 million, up from $3,111.1 million in the same period of 2023 [21]. - Research and development expenses for Q3 2024 were $47.5 million, slightly up from $45.8 million in Q3 2023 [16]. - Capital expenditures for the nine months ended September 30, 2024, totaled $11.9 million, compared to $8.9 million in the same period of 2023 [20]. Future Projections - The company expects Q4 2024 revenue to be between $1.225 billion and $1.325 billion, and full-year revenue to be between $5.47 billion and $5.57 billion [4]. - Full-year 2024 Adjusted EBITDA is projected to be between $109 million and $119 million [4]. - Non-GAAP OPEX for full-year 2024 is expected to be between $876 million and $896 million [4]. - The company plans to launch the 'Compass One' client dashboard in early Q1 2025, enhancing collaboration between agents and clients [3]. Shareholder Information - The company reported a weighted-average of 505,993,014 shares used in computing net loss per share for Q3 2024 [16]. - Stock-based compensation for the nine months ended September 30, 2024, was $96.3 million, down from $121.9 million in the same period of 2023 [19]. - GAAP sales and marketing expenses for the nine months ended September 30, 2024, were $276.5 million, compared to $332.5 million in the same period of 2023 [21]. - Non-GAAP operating expenses excluding commissions and other related expenses totaled $215.0 million for the nine months ended September 30, 2024 [22].