CoStar Group Second Quarter 2022 Net New Bookings Grew 66% and Net Income Increased 37% Year-over-Year

Rhea-AI Summary

CoStar Group (NASDAQ: CSGP) reported a strong second quarter of 2022 with revenue at $536 million, a 12% increase year-over-year. Net income rose 37% to $83 million, while EBITDA increased 5% to $140 million. The company’s net new bookings reached $84 million, surpassing prior records. CoStar, Apartments.com, and LoopNet notably saw double-digit sales increases. The firm is raising its full-year revenue guidance to $2.165-$2.180 billion. For Q3 2022, revenue is expected between $552-$557 million, reflecting approximately 11% growth compared to Q3 2021.

Positive

• Revenue for Q2 2022 was $536 million, a 12% year-over-year increase.
• Net income increased by 37% to $83 million in Q2 2022.
• Net new bookings reached $84 million, surpassing prior records.
• CoStar, Apartments.com, and LoopNet achieved high double-digit sales growth.
• Raised full-year revenue guidance to $2.165 billion to $2.180 billion.
• Q3 2022 revenue expected between $552 million and $557 million, indicating 11% growth.

Negative

• None.

WASHINGTON--(BUSINESS WIRE)-- CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the property markets, announced today that revenue for the quarter ended June 30, 2022, was $536 million, an increase of 12% over revenue of $480 million for the second quarter of 2021.

Net income for the second quarter of 2022 was $83 million, an increase of 37% compared to net income of $61 million for the second quarter of 2021. EBITDA for the second quarter of 2022 was $140 million, an increase of 5% compared to EBITDA of $133 million for the second quarter of 2021.

“We delivered outstanding results in the second quarter of 2022,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “With net new bookings of $84 million we easily surpassed the record sales results we set in the first quarter of this year. Our top three products, CoStar, Apartments.com and LoopNet, all achieved high double-digit sales increases over the second quarter of 2021. In addition, both revenue and profit in the second quarter of 2022 were ahead of forecast and we are raising our guidance for the year.”

“I am particularly encouraged by the strong sales growth in Apartments.com and LoopNet", continued Florance. "Net new bookings increased over 130% in Apartments.com and over 40% for LoopNet on a year-over-year basis. It is increasingly clear that Multifamily market conditions continue to be more favorable, and our work to build a dedicated LoopNet sales team is paying off. We are also making strong progress on our residential growth initiatives with the on-time launch of Citysnap in New York City at the end of June."

Year 2021-2022 Quarterly Results - Unaudited
(in millions, except per share data)
		2021									2022
		Q1		Q2		Q3		Q4			Q1		Q2
Revenues		$458		$480		$499		$507			$516		$536
Net income		74		61		64		93			89		83
Net income per share - diluted(1)		0.19		0.16		0.16		0.24			0.23		0.21
Weighted average outstanding shares - diluted(1)		394		394		394		395			394		394
EBITDA		136		133		123		173			158		140
Adjusted EBITDA		160		150		144		193			178		159
Non-GAAP net income		108		103		99		138			123		112
Non-GAAP net income per share - diluted(1)		0.27		0.26		0.25		0.35			0.31		0.28
(1) Certain prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

As of June 30, 2022, the Company had approximately $4.0 billion in cash, cash equivalents and restricted cash and outstanding debt of approximately $1.0 billion.

2022 Outlook

The Company is raising its revenue guidance to a range of $2.165 billion to $2.180 billion for the full year of 2022, an increase of $13 million at the midpoint of the range compared to the prior outlook. The Company expects revenue for the third quarter of 2022 in the range of $552 million to $557 million, representing revenue growth of approximately 11% over the third quarter of 2021 at the midpoint of the range.

The Company is raising its adjusted EBITDA guidance to a range of $610 million to $630 million for the full year of 2022, an increase of $20 million at the midpoint of the range compared to the prior outlook. For the third quarter of 2022, the Company expects adjusted EBITDA in a range of $130 million to $140 million.

The Company expects full year 2022 non-GAAP net income per diluted share in a range of $1.09 to $1.13 based on 395 million shares, an increase of $0.11 per diluted share compared to the prior outlook. For the third quarter of 2022, the Company expects non-GAAP net income per diluted share in a range of $0.23 to $0.25 based on 395 million shares. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the third quarter of 2022.

The preceding forward-looking statements reflect CoStar Group’s expectations as of July 26, 2022, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations, and trends. Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, including uncertainties as a result of the COVID-19 pandemic and responses to it by, and the impact on, global economies and the real estate industry, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.

Reconciliation of EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share to their GAAP basis results are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income, can be found within the tables included in this release.

Non-GAAP Financial Measures

For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refer to the Company’s latest periodic report.

EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before interest (expense) income and other (expense) income, loss on debt extinguishment, income taxes, depreciation and amortization.

Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, and settlements and impairments incurred outside the Company’s normal course of business. Adjusted EBITDA margin represents adjusted EBITDA divided by revenues for the period.

Non-GAAP net income is a non-GAAP financial measure determined by adjusting GAAP net income attributable to CoStar Group for stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, settlement and impairment costs incurred outside the Company's normal course of business and loss on debt extinguishment, as well as amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. In 2022, the Company is assuming a 26% tax rate in order to approximate its statutory corporate tax rate excluding the impact of discrete items.

Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share. For periods with GAAP net losses and non-GAAP net income, the weighted average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.

Operating Metrics

Net new bookings is calculated based on the annualized amount of change in the Company's sales bookings resulting from new subscription-based contracts and changes to existing subscription-based contracts for the period reported. Information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of the Company's revenues over time.

Earnings Conference Call

Management will conduct a conference call to discuss the second quarter 2022 results and the Company’s outlook at 5:00 PM EST on Tuesday, July 26, 2022. A live audio webcast of the conference will be available in listen-only mode through the Investors section of the CoStar Group website: https://investors.costargroup.com. A replay of the webcast audio will also be available in the Investors section of our website for a period of time following the call.

CoStar Group, Inc.
Condensed Consolidated Statements of Operations - Unaudited
(in thousands, except per share data)
		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Revenues		$	536,308			$	480,333			$	1,052,133			$	938,030
Cost of revenues			100,971				89,566				196,450				178,314
Gross profit			435,337				390,767				855,683				759,716
Operating expenses:
Selling and marketing (excluding customer base amortization)			181,344				164,612				325,341				303,299
Software development			51,587				48,573				105,608				95,357
General and administrative			77,345				58,226				155,306				122,076
Customer base amortization			14,878				18,345				30,970				36,764
			325,154				289,756				617,225				557,496
Income from operations			110,183				101,011				238,458				202,220
Interest expense, net			(3,399	)			(7,877	)			(11,117	)			(15,755	)
Other income, net			1,343				847				2,207				797
Income before income taxes			108,127				93,981				229,548				187,262
Income tax expense			24,654				32,833				56,757				51,902
Net income		$	83,473			$	61,148			$	172,791			$	135,360
Net income per share - basic		$	0.21			$	0.16			$	0.44			$	0.35
Net income per share - diluted		$	0.21			$	0.16			$	0.44			$	0.34
Weighted-average outstanding shares - basic			393,342				392,306				393,119				391,942
Weighted-average outstanding shares - diluted			394,478				394,098				394,356				393,906

CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures - Unaudited
(in thousands, except per share data)
Reconciliation of Net Income to Non-GAAP Net Income
		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Net income		$	83,473			$	61,148			$	172,791			$	135,360
Income tax expense			24,654				32,833				56,757				51,902
Income before income taxes			108,127				93,981				229,548				187,262
Amortization of acquired intangible assets			22,815				25,293				46,005				51,120
Stock-based compensation expense			18,112				15,144				35,959				30,689
Acquisition and integration related costs			504				2,001				2,143				10,463
Other expense			2,063				786				4,099				1,857
Non-GAAP income before income taxes			151,621				137,205				317,754				281,391
Assumed rate for income tax expense(1)			26	%			25	%			26	%			25	%
Assumed provision for income tax expense			(39,421	)			(34,301	)			(82,616	)			(70,348	)
Non-GAAP net income		$	112,200			$	102,904			$	235,138			$	211,043
Net income per share - diluted		$	0.21			$	0.16			$	0.44			$	0.34
Non-GAAP net income per share - diluted		$	0.28			$	0.26			$	0.60			$	0.54
Weighted average outstanding shares - basic			393,342				392,306				393,119				391,942
Weighted average outstanding shares - diluted			394,478				394,098				394,356				393,906
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Net income		$	83,473			$	61,148			$	172,791			$	135,360
Amortization of acquired intangible assets in cost of revenues			7,937				6,948				15,035				14,356
Amortization of acquired intangible assets in operating expenses			14,878				18,345				30,970				36,764
Depreciation and other amortization			7,010				7,028				13,975				15,528
Interest expense, net			3,399				7,877				11,117				15,755
Other income, net			(1,343	)			(847	)			(2,207	)			(797	)
Income tax expense			24,654				32,833				56,757				51,902
EBITDA		$	140,008			$	133,332			$	298,438			$	268,868
Stock-based compensation expense			18,112				15,144				35,959				30,689
Acquisition and integration related costs			504				2,001				2,143				10,463
Adjusted EBITDA		$	158,624			$	150,477			$	336,540			$	310,020

CoStar Group, Inc.
Condensed Consolidated Balance Sheets - Unaudited
(in thousands)
		June 30, 2022				December 31, 2021
ASSETS
Current assets:
Cash, cash equivalents and restricted cash		$	3,964,116			$	3,827,126
Accounts receivable			161,811				138,191
Less: Allowance for credit losses			(9,638	)			(13,374	)
Accounts receivable, net			152,173				124,817
Income tax receivable			9,278				—
Prepaid expenses and other current assets			55,194				36,182
Total current assets			4,180,761				3,988,125
Deferred income taxes, net			5,034				5,034
Property and equipment, net			298,361				271,431
Lease right-of-use assets			98,495				100,680
Goodwill			2,314,176				2,321,015
Intangible assets, net			385,245				435,662
Deferred commission costs, net			119,778				101,879
Deposits and other assets			16,893				21,762
Income tax receivable			2,005				11,283
Total assets		$	7,420,748			$	7,256,871
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	32,132			$	22,244
Accrued wages and commissions			84,545				81,794
Accrued expenses			91,168				81,676
Income taxes payable			1,841				31,236
Lease liabilities			35,426				26,268
Deferred revenue			104,838				95,471
Total current liabilities			349,950				338,689
Long-term debt, net			988,572				987,944
Deferred income taxes, net			87,657				98,656
Income taxes payable			14,112				12,496
Lease and other long-term liabilities			96,104				107,414
Total liabilities		$	1,536,395			$	1,545,199
Total stockholders’ equity			5,884,353				5,711,672
Total liabilities and stockholders' equity		$	7,420,748			$	7,256,871

CoStar Group, Inc.
Condensed Consolidated Statements of Cash Flows - Unaudited
(in thousands)
	Six Months Ended June 30,
	2022				2021
Operating activities:
Net income	$	172,791			$	135,360
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		64,127				68,516
Amortization of deferred commissions costs		35,996				30,847
Amortization of Senior Notes discount and issuance costs		1,178				1,159
Non-cash lease expense		15,080				13,136
Stock-based compensation expense		35,959				30,689
Deferred income taxes, net		(14,946	)			9,929
Credit loss expense		6,890				6,086
Other operating activities, net		(1,149	)			(24	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(33,318	)			(8,526	)
Prepaid expenses and other current assets		3,152				(14,567	)
Deferred commissions		(54,155	)			(31,922	)
Accounts payable and other liabilities		14,098				(32,474	)
Lease liabilities		(15,932	)			(15,674	)
Income taxes payable		(27,770	)			9,415
Deferred revenue		8,520				16,148
Other assets		1,578				2,191
Net cash provided by operating activities		212,099				220,289
Investing activities:
Proceeds from sale of property and equipment and other assets		5,034				201
Purchase of Richmond assets and other intangibles		(25,664	)			(123,623	)
Purchases of property and equipment and other assets		(30,746	)			(13,093	)
Cash paid for acquisitions, net of cash acquired		(6,331	)			(148,275	)
Net cash used in investing activities		(57,707	)			(284,790	)
Financing activities:
Repayments of long-term debt assumed in acquisition		(2,155	)			—
Repurchase of restricted stock to satisfy tax withholding obligations		(19,755	)			(28,405	)
Proceeds from exercise of stock options and employee stock purchase plan		7,340				12,324
Other financing activities		—				(57	)
Net cash used in financing activities		(14,570	)			(16,138	)
Effect of foreign currency exchange rates on cash and cash equivalents		(2,832	)			(364	)
Net increase (decrease) in cash, cash equivalents and restricted cash		136,990				(81,003	)
Cash, cash equivalents and restricted cash at the beginning of period		3,827,126				3,755,912
Cash, cash equivalents and restricted cash at the end of period	$	3,964,116			$	3,674,909

CoStar Group, Inc.
Disaggregated Revenues - Unaudited
(in thousands)
	Three Months Ended June 30,
	2022									2021
	North America			International			Total			North America			International			Total
CoStar	$	197,380		$	9,186		$	206,566		$	167,845		$	9,134		$	176,979
Information Services		30,511			7,991			38,502			28,096			7,061			35,157
Multifamily		182,359			—			182,359			171,357			—			171,357
LoopNet(1)		54,603			1,694			56,297			50,731			364			51,095
Residential(1)		20,154			—			20,154			18,087			—			18,087
Other Marketplaces(1)		32,430			—			32,430			27,658			—			27,658
Total revenues	$	517,437		$	18,871		$	536,308		$	463,774		$	16,559		$	480,333
(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation.
	Six Months Ended June 30,
	2022									2021
	North America			International			Total			North America			International			Total
CoStar	$	386,484		$	18,731		$	405,215		$	331,399		$	17,764		$	349,163
Information Services		60,782			14,935			75,717			55,782			14,071			69,853
Multifamily		357,836			—			357,836			337,504			—			337,504
LoopNet(1)		107,291			3,453			110,744			99,667			658			100,325
Residential(1)		38,214			—			38,214			29,192			—			29,192
Other Marketplaces(1)		64,407			—			64,407			51,993			—			51,993
Total revenues	$	1,015,014		$	37,119		$	1,052,133		$	905,537		$	32,493		$	938,030
(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation.

CoStar Group, Inc.
Results of Segments - Unaudited
(in thousands)
		Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021
EBITDA
North America		$	138,527		$	130,176		$	294,489		$	266,034
International			1,481			3,156			3,949			2,834
Total EBITDA		$	140,008		$	133,332		$	298,438		$	268,868

CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures with Quarterly Results - Unaudited
(in millions, except per share data)
Reconciliation of Net Income to Non-GAAP Net Income
		2021					2022
		Q1	Q2	Q3	Q4		Q1	Q2
Net income		$74.2	$61.1	$64.3	$92.9		$89.3	$83.5
Income tax expense		19.1	32.8	19.0	40.5		32.1	24.7
Income before income taxes		93.3	93.9	83.3	133.4		121.4	108.1
Amortization of acquired intangible assets		25.8	25.3	26.3	26.2		23.2	22.8
Stock-based compensation expense		15.5	15.1	16.3	16.7		17.8	18.1
Acquisition and integration related costs		8.5	2.0	5.0	3.2		1.6	0.5
Other expense		1.1	0.8	0.9	4.1		2.0	2.1
Non-GAAP income before income taxes(1)		144.2	137.1	131.8	183.6		166.1	151.6
Assumed rate for income tax expense (2)		25%	25%	25%	25%		26%	26%
Assumed provision for income tax expense		(36.0)	(34.3)	(33.0)	(45.9)		(43.2)	(39.4)
Non-GAAP net income(1)		$108.2	$102.8	$98.8	$137.7		$122.9	$112.2
Non-GAAP net income per share - diluted(3)		$0.27	$0.26	$0.25	$0.35		$0.31	$0.28
Weighted average outstanding shares - basic(3)		391.6	392.3	392.4	392.5		392.9	393.3
Weighted average outstanding shares - diluted(3)		393.7	394.1	394.3	394.5		394.2	394.5
__________________________
(1) Totals may not foot due to rounding.
(2) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
(3) Certain prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
		2021					2022
		Q1	Q2	Q3	Q4		Q1	Q2
Net income		$74.2	$61.1	$64.3	$92.9		$89.3	$83.5
Amortization of acquired intangible assets		25.8	25.3	26.3	26.2		23.2	22.8
Depreciation and other amortization		8.5	7.0	6.6	6.9		7.0	7.0
Interest expense, net		7.9	7.9	7.9	7.9		7.7	3.4
Other (income) expense, net		0.1	(0.8)	(1.5)	(0.9)		(0.9)	(1.3)
Income tax expense		19.1	32.8	19.0	40.5		32.1	24.7
EBITDA(1)		$135.6	$133.3	$122.6	$173.4		$158.4	$140.0
Stock-based compensation expense		15.5	15.1	16.3	16.7		17.8	18.1
Acquisition and integration related costs		8.5	2.0	5.0	3.2		1.6	0.5
Adjusted EBITDA(1)		$159.6	$150.4	$143.9	$193.4		$177.9	$158.6
__________________________
(1) Totals may not foot due to rounding.

CoStar Group, Inc.
Reconciliation of Forward-Looking Guidance - Unaudited
(in thousands, except per share data)
Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income
	Guidance Range								Guidance Range
	For the Three Months								For the Year Ending
	Ending September 30, 2022								December 31, 2022
	Low				High				Low				High
Net income	$	63,000			$	71,000			$	310,000			$	325,000
Income tax expense		22,000				24,000				104,000				109,000
Income before income taxes		85,000				95,000				414,000				434,000
Amortization of acquired intangible assets		21,000				21,000				88,000				88,000
Stock-based compensation expense		19,000				19,000				74,000				74,000
Acquisition and integration related costs		—				—				2,000				2,000
Other expense		—				—				4,000				4,000
Non-GAAP income before income taxes		125,000				135,000				582,000				602,000
Assumed rate for income tax expense(1)		26	%			26	%			26	%			26	%
Assumed provision for income tax expense		(32,500	)			(35,100	)			(151,300	)			(156,500	)
Non-GAAP net income	$	92,500			$	99,900			$	430,700			$	445,500
Net income per share - diluted	$	0.16			$	0.18			$	0.79			$	0.82
Non-GAAP net income per share - diluted	$	0.23			$	0.25			$	1.09			$	1.13
Weighted average outstanding shares - diluted		394,800				394,800				394,700				394,700
__________________________
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA
	Guidance Range								Guidance Range
	For the Three Months								For the Year Ending
	Ending September 30, 2022								December 31, 2022
	Low				High				Low				High
Net income	$	63,000			$	71,000			$	310,000			$	325,000
Amortization of acquired intangible assets		21,000				21,000				88,000				88,000
Depreciation and other amortization		10,000				10,000				34,000				34,000
Interest expense, net		(5,000	)			(5,000	)			1,000				1,000
Other income, net		—				—				(3,000	)			(3,000	)
Income tax expense		22,000				24,000				104,000				109,000
Stock-based compensation expense		19,000				19,000				74,000				74,000
Acquisition and integration related costs		—				—				2,000				2,000
Adjusted EBITDA	$	130,000			$	140,000			$	610,000			$	630,000

About CoStar Group, Inc.

CoStar Group, Inc. (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information and analytics. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com offers real estate professionals advertising and marketing services for residential properties. Realla is the UK’s most comprehensive commercial property digital marketplace. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada and Asia. From time to time we plan to utilize our corporate website, www.costargroup.com, as a channel of distribution for material company information.

This news release and the Company’s earnings conference call contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar Group's plans, objectives, expectations, beliefs and intentions and other statements including words such as “hope,” “anticipate,” “may,” “believe,” “expect,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar Group and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. The following factors, among others, could cause or contribute to such differences: the risk that the trends stated or implied by this release or in the earnings conference call cannot or will not be sustained at the current pace or may increase or decrease, including trends and expectations related to revenue, revenue growth, net income, non-GAAP net income, EBITDA, adjusted EBITDA, adjusted EBITDA margin, sales, net new bookings, site traffic and visitors, leads, and renewal rates; the risk that the Company is unable to sustain current Company-wide, CoStar, Apartments or LoopNet net new bookings and that Multifamily market conditions remain favorable; the risk that revenues for the third quarter and full year 2022 will not be as stated in this press release; the risk that net income for the third quarter and full year 2022 will not be as stated in this press release; the risk that EBITDA for the third quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the third quarter and full year 2022 will not be as stated in this press release; the risk that non-GAAP net income and non-GAAP net income per diluted share for the third quarter and full year 2022 will not be as stated in this press release; the risk that the tax rate estimates stated in this press release may change; and potential declines in our revenues, revenue growth rates and profitability due to the impact of the COVID-19 pandemic on the commercial real estate industry and economic conditions on the real estate industry and our core customer base. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar Group’s filings from time to time with the Securities and Exchange Commission, including in CoStar Group’s Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar Group’s other filings with the SEC (including Current Reports on Form 8-K) available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar Group on the date hereof, and CoStar Group assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220726006012/en/

Investor Relations:

Cyndi Eakin

Senior Vice President

CoStar Group Investor Relations

(202) 346-6784

ceakin@costar.com

News Media:

Matthew Blocher

Vice President

CoStar Group Corporate Marketing & Communications

(202) 346-6775

mblocher@costargroup.com

Source: CoStar Group, Inc.

FAQ

What is CoStar Group's revenue for Q2 2022?

CoStar Group reported revenue of $536 million for Q2 2022.

What was CoStar Group's net income in the second quarter of 2022?

The net income for Q2 2022 was $83 million, a 37% increase from the previous year.

How much did CoStar Group raise its revenue guidance for 2022?

CoStar Group raised its revenue guidance to a range of $2.165 billion to $2.180 billion for 2022.

What are the expected revenues for CoStar Group in Q3 2022?

CoStar Group expects revenue for Q3 2022 to be between $552 million and $557 million.

How did net new bookings perform for CoStar Group in Q2 2022?

Net new bookings for Q2 2022 reached $84 million, surpassing previous records.