Key Takeaways

Shares of Compass ( COMP ) surged nearly 20% Wednesday morning after the largest independent U.S. real estate brokerage boosted its current-quarter and full-year guidance as it increased staffing and controlled costs.

The company now expects fourth-quarter revenue of $1.36 billion to $1.39 billion and adjusted EBITDA of $15 million to $18 million. It previously anticipated revenue of $1.225 billion to $1.325 billion and adjusted EBITDA of $0 to $10 million.

Compass sees full-year revenue of $5.61 billion to $5.64 billion and adjusted EBITDA of $124 million to $127 million. Its earlier outlook was for revenue of $5.47 billion to $5.57 billion, and adjusted EBITDA of $109 million to $119 million.

Compass Recruited 50% More Principal Agents Organically in Q4 Than Prior Year

Founder and CEO Robert Reffkin noted the company recruited more than 650 principal agents organically, a 50% improvement over last year's fourth quarter. Reffkin said that "these results highlight Compass' ability to continue to outperform the market," while at the same time maintaining operating expense discipline.

Compass shares, which were up 18% an hour after the opening bell, have nearly doubled in the past year.

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