CoStar Group Second Quarter 2024 Revenue Increased 12% Year-over-Year and Net New Bookings were $67 Million. CoStar Group Reaches a Record 183 Million Monthly Average Unique Visitors.
CoStar Group (NASDAQ: CSGP) reported strong Q2 2024 results with revenue reaching $678 million, up 12% year-over-year. Net income was $19 million, with earnings per diluted share at $0.05. The company's core businesses showed robust growth, with Apartments.com growing 18% and CoStar growing 10% compared to Q2 2023. Homes.com achieved significant milestones, with net new bookings exceeding $55 million and 148 million monthly average unique visitors. The company's overall network reached a record 183 million monthly average unique visitors.
For the full year 2024, CoStar Group expects revenue between $2.735 billion and $2.745 billion, representing approximately 12% year-over-year growth. Adjusted EBITDA is projected to be between $195 million and $205 million. The company anticipates non-GAAP net income per diluted share of $0.64 to $0.66 for the full year 2024.
CoStar Group (NASDAQ: CSGP) ha riportato risultati solidi per il secondo trimestre del 2024, con ricavi che hanno raggiunto 678 milioni di dollari, in aumento del 12% rispetto all'anno precedente. L'utile netto è stato di 19 milioni di dollari, con un utile per azione diluita di 0,05 dollari. Le attività principali dell'azienda hanno mostrato una crescita robusta, con Apartments.com in crescita del 18% e CoStar in crescita del 10% rispetto al secondo trimestre del 2023. Homes.com ha raggiunto traguardi significativi, con prenotazioni nette nuove superiori a 55 milioni di dollari e una media mensile di visitatori unici di 148 milioni. La rete complessiva dell'azienda ha raggiunto un record di 183 milioni di visitatori unici medi mensili.
Per l'intero anno 2024, CoStar Group prevede ricavi compresi tra 2,735 miliardi e 2,745 miliardi di dollari, che rappresentano una crescita annuale di circa il 12%. L'EBITDA rettificato è previsto tra 195 milioni e 205 milioni di dollari. L'azienda si aspetta un'utile netto non-GAAP per azione diluita di 0,64-0,66 dollari per l'intero anno 2024.
CoStar Group (NASDAQ: CSGP) reportó resultados sólidos para el segundo trimestre de 2024, con ingresos que alcanzaron 678 millones de dólares, un aumento del 12% en comparación con el año anterior. El ingreso neto fue de 19 millones de dólares, con unas ganancias por acción diluida de 0,05 dólares. Los negocios principales de la compañía mostraron un crecimiento robusto, con Apartments.com creciendo un 18% y CoStar creciendo un 10% en comparación con el segundo trimestre de 2023. Homes.com logró hitos significativos, con nuevas reservas netas que superaron los 55 millones de dólares y un promedio mensual de 148 millones de visitantes únicos. La red total de la compañía alcanzó un récord de 183 millones de visitantes únicos promedio mensual.
Para todo el año 2024, CoStar Group espera ingresos entre 2.735 y 2.745 millones de dólares, lo que representa un crecimiento del aproximadamente 12% en comparación con el año anterior. Se proyecta que el EBITDA ajustado esté entre 195 y 205 millones de dólares. La compañía anticipa un ingreso neto no-GAAP por acción diluida de 0,64 a 0,66 dólares para todo el año 2024.
CoStar Group (NASDAQ: CSGP)는 2024년 2분기에 강력한 실적을 보고하며 수익이 6억 7800만 달러에 달해 전년 대비 12% 증가했다고 발표했습니다. 순이익은 1900만 달러였으며, 희석주당 순이익은 0.05달러였습니다. 회사의 핵심 사업은 Apartments.com이 18% 성장하고 CoStar가 10% 성장하는 등 강력한 성장을 보였습니다. Homes.com은 5500만 달러를 초과하는 순 신규 예약과 1억 4800만 명의 월평균 독립 방문자를 기록하며 중요한 이정표를 달성했습니다. 회사의 전체 네트워크는 1억 8300만 명의 월평균 독립 방문자를 기록하였습니다.
2024년 전체 연간 수익은 27억 3500만 달러에서 27억 4500만 달러로 예상되며, 이는 전년 대비 약 12% 성장하는 것을 의미합니다. 조정된 EBITDA는 1억 9500만 달러에서 2억 500만 달러 사이로 예상됩니다. 회사는 2024년 전체 연간 희석 주당 비GAAP 순이익이 0.64~0.66달러가 될 것으로 예상합니다.
CoStar Group (NASDAQ: CSGP) a rapporté des résultats solides pour le deuxième trimestre de 2024, avec des revenus atteignant 678 millions de dollars, soit une augmentation de 12 % par rapport à l'an dernier. Le revenu net s'élevait à 19 millions de dollars, avec un bénéfice par action diluée de 0,05 dollar. Les activités principales de l'entreprise ont montré une croissance robuste, avec Apartments.com en hausse de 18% et CoStar en hausse de 10 % par rapport au deuxième trimestre 2023. Homes.com a atteint des étapes significatives, avec des réservations nettes nouvelles dépassant 55 millions de dollars et 148 millions de visiteurs uniques en moyenne par mois. Le réseau global de la société a atteint un record de 183 millions de visiteurs uniques en moyenne par mois.
Pour l'année entière 2024, CoStar Group prévoit des revenus compris entre 2,735 milliards et 2,745 milliards de dollars, représentant environ 12 % de croissance par rapport à l'année dernière. L'EBITDA ajusté est prévu entre 195 millions et 205 millions de dollars. L'entreprise anticipe un bénéfice net non-GAAP par action diluée de 0,64 à 0,66 dollar pour l'année entière 2024.
Die CoStar Group (NASDAQ: CSGP) meldete für das zweite Quartal 2024 starke Ergebnisse mit Einnahmen von 678 Millionen Dollar, was einem Anstieg von 12% im Vergleich zum Vorjahr entspricht. Der Nettogewinn betrug 19 Millionen Dollar, mit einem Gewinn pro verwässerter Aktie von 0,05 Dollar. Die Kernaktivitäten des Unternehmens zeigten ein robustes Wachstum, wobei Apartments.com um 18% und CoStar um 10% im Vergleich zum zweiten Quartal 2023 wuchsen. Homes.com erreichte bedeutende Meilensteine mit neuen Buchungen von über 55 Millionen Dollar und 148 Millionen monatlich durchschnittlicher einzigartiger Besucher. Das Gesamt-Netzwerk des Unternehmens erreichte einen Rekord von 183 Millionen monatlich durchschnittlicher einzigartiger Besucher.
Für das Gesamtjahr 2024 erwartet die CoStar Group Einnahmen zwischen 2,735 Milliarden und 2,745 Milliarden Dollar, was einem Wachstum von circa 12% im Vergleich zum Vorjahr entspricht. Der angepasste EBITDA wird zwischen 195 Millionen und 205 Millionen Dollar prognostiziert. Das Unternehmen erwartet ein nicht-GAAP Nettogewinn pro verwässerter Aktie von 0,64 bis 0,66 Dollar für das Gesamtjahr 2024.
- Revenue increased 12% year-over-year to $678 million in Q2 2024
- Apartments.com revenue grew 18% compared to Q2 2023
- CoStar revenue grew 10% compared to Q2 2023
- Commercial information and marketplace businesses delivered 41% profit margins in Q2 2024
- Homes.com net new bookings reached over $55 million
- Monthly average unique visitors reached a record 183 million
- Full-year 2024 revenue guidance increased to $2.735-$2.745 billion, representing 12% growth
- Net income decreased to $19 million in Q2 2024 compared to $101 million in Q2 2023
- Earnings per diluted share decreased to $0.05 in Q2 2024 from $0.25 in Q2 2023
Insights
CoStar Group's financial performance for Q2 2024 demonstrates robust growth, with a
The company's strong revenue growth, particularly in Apartments.com and CoStar with
However, a concerning factor is the relatively low net income compared to the size of the revenue, suggesting higher operational costs or other financial challenges. For retail investors, CoStar's ability to maintain double-digit revenue growth and expand its customer base is a positive indicator for long-term investment potential.
CoStar's market position and user engagement metrics are noteworthy. Reporting a record 183 million monthly average unique visitors underscores the company’s significant market reach and brand strength. This level of engagement reflects high user trust and the value provided by CoStar’s platforms. The aggressive marketing campaigns leading to a 27% unaided brand awareness also play a important role in maintaining a competitive edge.
For investors, these metrics suggest a solid foundation for sustained growth and market presence. The emphasis on user engagement and brand awareness can potentially translate into higher conversion rates and revenue growth, presenting a long-term bullish outlook for the stock.
CoStar's digital infrastructure and analytics capabilities are pivotal to its performance. The significant traffic on its platforms, particularly Homes.com and Apartments.com, indicates effective use of technology to capture and retain user interest. The company's ability to handle and analyze vast amounts of data to provide valuable insights to its users and clients contributes to its market leadership.
From a technological standpoint, the growth reported can also be attributed to continuous improvements and innovations in their platform capabilities, contributing to better user experiences and operational efficiencies. This technological edge is a critical factor for long-term sustainability and competitive differentiation.
“We achieved another strong quarter of results in terms of revenue, sales and traffic to our websites,” said Andy Florance, Founder and CEO of CoStar Group. “Overall revenue grew
“Homes.com net new bookings through June reached over
Year 2023-2024 Quarterly Results - Unaudited |
|||||||
(in millions, except per share data) |
|||||||
|
2023 |
|
2024 |
||||
|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Net income |
87 |
101 |
91 |
96 |
|
7 |
19 |
Net income per share - diluted |
0.21 |
0.25 |
0.22 |
0.24 |
|
0.02 |
0.05 |
Weighted average outstanding shares - diluted |
406 |
407 |
407 |
408 |
|
407 |
407 |
|
|
|
|
|
|
|
|
EBITDA |
98 |
105 |
89 |
98 |
|
(13) |
12 |
Adjusted EBITDA |
123 |
127 |
112 |
130 |
|
12 |
41 |
Non-GAAP net income |
118 |
127 |
120 |
133 |
|
42 |
61 |
Non-GAAP net income per share - diluted |
0.29 |
0.31 |
0.30 |
0.33 |
|
0.10 |
0.15 |
2024 Outlook
“This quarter’s results demonstrate the strength of our core commercial business and the continued progress of our Homes.com strategy,” said Chris Lown, CFO of CoStar Group. The Company now expects revenue in the range of
“We now expect adjusted EBITDA for the full year of 2024 in the range of
The Company expects full year 2024 non-GAAP net income per diluted share in a range of
The preceding forward-looking statements reflect CoStar Group’s expectations as of July 23, 2024, 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, 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.
Reconciliations of EBITDA, adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share to the most directly comparable GAAP measures 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 income or expense, net and other income or expense, net; loss on debt extinguishment; income taxes and depreciation and amortization expense.
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 ordinary 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 ordinary 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 2024, the Company is assuming a
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, changes to existing subscription-based contracts and cancellations of 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 2024 results and the Company’s outlook at 5:00 PM ET on Tuesday, July 23, 2024. 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 millions, except per share data) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Revenues |
|
$ |
677.8 |
|
|
$ |
605.9 |
|
$ |
1,334.2 |
|
|
$ |
1,190.3 |
Cost of revenues |
|
|
135.8 |
|
|
|
112.4 |
|
|
277.0 |
|
|
|
231.6 |
Gross profit |
|
|
542.0 |
|
|
|
493.5 |
|
|
1,057.2 |
|
|
|
958.7 |
|
|
|
|
|
|
|
|
|
||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||
Selling and marketing (excluding customer base amortization) |
|
|
358.4 |
|
|
|
250.0 |
|
|
724.5 |
|
|
|
476.2 |
Software development |
|
|
79.6 |
|
|
|
63.4 |
|
|
162.0 |
|
|
|
130.0 |
General and administrative |
|
|
109.9 |
|
|
|
90.6 |
|
|
208.4 |
|
|
|
180.1 |
Customer base amortization |
|
|
10.2 |
|
|
|
10.4 |
|
|
21.2 |
|
|
|
21.0 |
|
|
|
558.1 |
|
|
|
414.4 |
|
|
1,116.1 |
|
|
|
807.3 |
(Loss) income from operations |
|
|
(16.1 |
) |
|
|
79.1 |
|
|
(58.9 |
) |
|
|
151.4 |
Interest income, net |
|
|
53.5 |
|
|
|
51.9 |
|
|
109.7 |
|
|
|
95.4 |
Other (expense) income, net |
|
|
(1.5 |
) |
|
|
0.6 |
|
|
(3.4 |
) |
|
|
1.2 |
Income before income taxes |
|
|
35.9 |
|
|
|
131.6 |
|
|
47.4 |
|
|
|
248.0 |
Income tax expense |
|
|
16.7 |
|
|
|
31.1 |
|
|
21.5 |
|
|
|
60.3 |
Net income |
|
$ |
19.2 |
|
|
$ |
100.5 |
|
$ |
25.9 |
|
|
$ |
187.7 |
|
|
|
|
|
|
|
|
|
||||||
Net income per share - basic |
|
$ |
0.05 |
|
|
$ |
0.25 |
|
$ |
0.06 |
|
|
$ |
0.46 |
Net income per share - diluted |
|
$ |
0.05 |
|
|
$ |
0.25 |
|
$ |
0.06 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
||||||
Weighted-average outstanding shares - basic |
|
|
406.0 |
|
|
|
405.4 |
|
|
405.8 |
|
|
|
405.0 |
Weighted-average outstanding shares - diluted |
|
|
407.4 |
|
|
|
406.7 |
|
|
407.3 |
|
|
|
406.5 |
CoStar Group, Inc. |
||||||||||||||||
Reconciliation of Non-GAAP Financial Measures - Unaudited |
||||||||||||||||
(in millions, except per share data) |
||||||||||||||||
|
||||||||||||||||
Reconciliation of Net Income to Non-GAAP Net Income |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
|
$ |
19.2 |
|
|
$ |
100.5 |
|
|
$ |
25.9 |
|
|
$ |
187.7 |
|
Income tax expense |
|
|
16.7 |
|
|
|
31.1 |
|
|
|
21.5 |
|
|
|
60.3 |
|
Income before income taxes |
|
|
35.9 |
|
|
|
131.6 |
|
|
|
47.4 |
|
|
|
248.0 |
|
Amortization of acquired intangible assets |
|
|
18.1 |
|
|
|
18.0 |
|
|
|
37.9 |
|
|
|
35.7 |
|
Stock-based compensation expense |
|
|
22.7 |
|
|
|
21.8 |
|
|
|
45.5 |
|
|
|
41.9 |
|
Acquisition and integration related costs |
|
|
6.0 |
|
|
|
(0.2 |
) |
|
|
8.3 |
|
|
|
1.5 |
|
Restructuring and related costs |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
3.3 |
|
Settlements and impairments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
Non-GAAP income before income taxes |
|
|
82.7 |
|
|
|
171.1 |
|
|
|
139.1 |
|
|
|
330.3 |
|
Assumed rate for income tax expense(1) |
|
|
26.0 |
% |
|
|
26.0 |
% |
|
|
26.0 |
% |
|
|
26.0 |
% |
Assumed provision for income tax expense |
|
|
(21.5 |
) |
|
|
(44.5 |
) |
|
|
(36.2 |
) |
|
|
(85.9 |
) |
Non-GAAP net income |
|
$ |
61.2 |
|
|
$ |
126.6 |
|
|
$ |
102.9 |
|
|
$ |
244.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - diluted |
|
$ |
0.05 |
|
|
$ |
0.25 |
|
|
$ |
0.06 |
|
|
$ |
0.46 |
|
Non-GAAP net income per share - diluted |
|
$ |
0.15 |
|
|
$ |
0.31 |
|
|
$ |
0.25 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average outstanding shares - basic |
|
|
406.0 |
|
|
|
405.4 |
|
|
|
405.8 |
|
|
|
405.0 |
|
Weighted average outstanding shares - diluted |
|
|
407.4 |
|
|
|
406.7 |
|
|
|
407.3 |
|
|
|
406.5 |
|
__________________________ |
|
|
|
|
|
|
|
|
||||||||
(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
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
|
$ |
19.2 |
|
|
$ |
100.5 |
|
|
$ |
25.9 |
|
|
$ |
187.7 |
|
Amortization of acquired intangible assets in cost of revenues |
|
|
7.9 |
|
|
|
7.5 |
|
|
|
16.7 |
|
|
|
14.6 |
|
Amortization of acquired intangible assets in operating expenses |
|
|
10.2 |
|
|
|
10.5 |
|
|
|
21.2 |
|
|
|
21.1 |
|
Depreciation and other amortization |
|
|
10.1 |
|
|
|
8.1 |
|
|
|
20.4 |
|
|
|
16.0 |
|
Interest income, net |
|
|
(53.5 |
) |
|
|
(51.9 |
) |
|
|
(109.7 |
) |
|
|
(95.4 |
) |
Other expense (income), net1 |
|
|
1.5 |
|
|
|
(0.6 |
) |
|
|
3.4 |
|
|
|
(1.2 |
) |
Income tax expense |
|
|
16.7 |
|
|
|
31.1 |
|
|
|
21.5 |
|
|
|
60.3 |
|
EBITDA |
|
$ |
12.1 |
|
|
$ |
105.2 |
|
|
$ |
(0.6 |
) |
|
$ |
203.1 |
|
Stock-based compensation expense |
|
|
22.7 |
|
|
|
21.8 |
|
|
|
45.5 |
|
|
|
41.9 |
|
Acquisition and integration related costs |
|
|
6.0 |
|
|
|
(0.2 |
) |
|
|
8.3 |
|
|
|
1.5 |
|
Restructuring and related costs |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
3.3 |
|
Settlements and impairments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
Adjusted EBITDA |
|
$ |
40.8 |
|
|
$ |
126.7 |
|
|
$ |
53.2 |
|
|
$ |
249.7 |
|
__________________________ |
|
|
|
|
|
|
|
|
||||||||
1 Includes |
||||||||||||||||
CoStar Group, Inc. |
|||||||
Condensed Consolidated Balance Sheets - Unaudited |
|||||||
(in millions) |
|||||||
|
|
|
|
||||
|
June 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
4,919.5 |
|
|
$ |
5,215.9 |
|
Accounts receivable |
|
226.2 |
|
|
|
213.2 |
|
Less: Allowance for credit losses |
|
(22.4 |
) |
|
|
(23.2 |
) |
Accounts receivable, net |
|
203.8 |
|
|
|
190.0 |
|
Prepaid expenses and other current assets |
|
83.9 |
|
|
|
70.2 |
|
Total current assets |
|
5,207.2 |
|
|
|
5,476.1 |
|
|
|
|
|
||||
Deferred income taxes, net |
|
4.3 |
|
|
|
4.3 |
|
Property and equipment, net |
|
853.2 |
|
|
|
472.2 |
|
Lease right-of-use assets |
|
69.3 |
|
|
|
79.8 |
|
Goodwill |
|
2,383.6 |
|
|
|
2,386.2 |
|
Intangible assets, net |
|
342.5 |
|
|
|
313.7 |
|
Deferred commission costs, net |
|
178.9 |
|
|
|
167.7 |
|
Deposits and other assets |
|
26.3 |
|
|
|
17.7 |
|
Income tax receivable |
|
2.0 |
|
|
|
2.0 |
|
Total assets |
$ |
9,067.3 |
|
|
$ |
8,919.7 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
101.0 |
|
|
$ |
23.1 |
|
Accrued wages and commissions |
|
110.2 |
|
|
|
117.8 |
|
Accrued expenses and other current liabilities |
|
186.3 |
|
|
|
163.0 |
|
Income taxes payable |
|
0.1 |
|
|
|
7.7 |
|
Lease liabilities |
|
41.2 |
|
|
|
40.0 |
|
Deferred revenue |
|
122.9 |
|
|
|
104.2 |
|
Total current liabilities |
|
561.7 |
|
|
|
455.8 |
|
|
|
|
|
||||
Long-term debt, net |
|
991.2 |
|
|
|
990.5 |
|
Deferred income taxes, net |
|
30.3 |
|
|
|
36.7 |
|
Income taxes payable |
|
18.8 |
|
|
|
18.2 |
|
Lease and other long-term liabilities |
|
69.6 |
|
|
|
79.9 |
|
Total liabilities |
$ |
1,671.6 |
|
|
$ |
1,581.1 |
|
|
|
|
|
||||
Total stockholders' equity |
|
7,395.7 |
|
|
|
7,338.6 |
|
Total liabilities and stockholders' equity |
$ |
9,067.3 |
$ |
8,919.7 |
|||
CoStar Group, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows - Unaudited |
|||||||
(in millions) |
|||||||
|
|
||||||
|
Six Months Ended
|
||||||
|
2024 |
|
2023 |
||||
Operating activities: |
|
|
|
||||
Net income |
$ |
25.9 |
|
|
$ |
187.7 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
72.1 |
|
|
|
51.7 |
|
Amortization of deferred commissions costs |
|
56.3 |
|
|
|
45.3 |
|
Amortization of Senior Notes discount and issuance costs |
|
1.7 |
|
|
|
1.2 |
|
Non-cash lease expense |
|
12.9 |
|
|
|
14.1 |
|
Stock-based compensation expense |
|
45.5 |
|
|
|
41.9 |
|
Deferred income taxes, net |
|
(6.4 |
) |
|
|
(7.0 |
) |
Credit loss expense |
|
17.0 |
|
|
|
13.9 |
|
Other operating activities, net |
|
0.1 |
|
|
|
0.5 |
|
|
|
|
|
||||
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable |
|
(31.1 |
) |
|
|
(40.6 |
) |
Prepaid expenses and other current assets |
|
(13.8 |
) |
|
|
(4.2 |
) |
Deferred commissions |
|
(67.6 |
) |
|
|
(65.0 |
) |
Accounts payable and other liabilities |
|
82.9 |
|
|
|
54.4 |
|
Lease liabilities |
|
(14.8 |
) |
|
|
(16.6 |
) |
Income taxes payable, net |
|
(7.0 |
) |
|
|
12.9 |
|
Deferred revenue |
|
19.0 |
|
|
|
8.9 |
|
Other assets |
|
(3.5 |
) |
|
|
(0.7 |
) |
Net cash provided by operating activities |
|
189.2 |
|
|
|
298.4 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Purchases of property, equipment and other assets for new campuses |
|
(449.5 |
) |
|
|
(45.6 |
) |
Purchases of property and equipment and other assets |
|
(23.0 |
) |
|
|
(8.8 |
) |
Net cash used in investing activities |
|
(472.5 |
) |
|
|
(54.4 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Repurchase of restricted stock to satisfy tax withholding obligations |
|
(26.9 |
) |
|
|
(22.5 |
) |
Proceeds from exercise of stock options and employee stock purchase plan |
|
17.2 |
|
|
|
16.2 |
|
Principal repayments of finance lease obligations |
|
(2.2 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(11.9 |
) |
|
|
(6.3 |
) |
|
|
|
|
||||
Effect of foreign currency exchange rates on cash and cash equivalents |
|
(1.2 |
) |
|
|
(0.4 |
) |
Net (decrease) increase in cash and cash equivalents |
|
(296.4 |
) |
|
|
237.3 |
|
Cash and cash equivalents at the beginning of period |
|
5,215.9 |
|
|
|
4,968.0 |
|
Cash and cash equivalents at the end of period |
$ |
4,919.5 |
$ |
5,205.3 |
|||
CoStar Group, Inc. |
|||||||||||||||||
Disaggregated Revenues - Unaudited |
|||||||||||||||||
(in millions) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended June 30, |
||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||
|
|
|
International |
|
Total |
|
|
|
International |
|
Total |
||||||
CoStar |
$ |
237.1 |
|
$ |
15.9 |
|
$ |
253.0 |
|
$ |
219.6 |
|
$ |
9.6 |
|
$ |
229.2 |
Information Services |
|
27.9 |
|
|
5.5 |
|
|
33.4 |
|
|
32.2 |
|
|
9.7 |
|
|
41.9 |
Multifamily |
|
264.2 |
|
|
— |
|
|
264.2 |
|
|
224.3 |
|
|
— |
|
|
224.3 |
LoopNet |
|
67.2 |
|
|
2.6 |
|
|
69.8 |
|
|
63.2 |
|
|
2.3 |
|
|
65.5 |
Residential |
|
16.2 |
|
|
10.0 |
|
|
26.2 |
|
|
12.7 |
|
|
— |
|
|
12.7 |
Other Marketplaces |
|
31.2 |
|
|
— |
|
|
31.2 |
|
|
32.3 |
|
|
— |
|
|
32.3 |
Total revenues |
$ |
643.8 |
|
$ |
34.0 |
|
$ |
677.8 |
|
$ |
584.3 |
|
$ |
21.6 |
|
$ |
605.9 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
||||||||||||||||
|
Six Months Ended June 30, |
||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||
|
|
|
International |
|
Total |
|
|
|
International |
|
Total |
||||||
CoStar |
$ |
472.8 |
|
$ |
30.5 |
|
$ |
503.3 |
|
$ |
435.4 |
|
$ |
18.8 |
|
$ |
454.2 |
Information Services |
|
55.3 |
|
|
11.1 |
|
|
66.4 |
|
|
64.3 |
|
|
19.2 |
|
|
83.5 |
Multifamily |
|
519.0 |
|
|
— |
|
|
519.0 |
|
|
435.0 |
|
|
— |
|
|
435.0 |
LoopNet |
|
133.6 |
|
|
5.3 |
|
|
138.9 |
|
|
124.4 |
|
|
4.4 |
|
|
128.8 |
Residential |
|
24.6 |
|
|
20.2 |
|
|
44.8 |
|
|
25.9 |
|
|
— |
|
|
25.9 |
Other Marketplaces |
|
61.8 |
|
|
— |
|
|
61.8 |
|
|
62.9 |
|
|
— |
|
|
62.9 |
Total revenues |
$ |
1,267.1 |
|
$ |
67.1 |
|
$ |
1,334.2 |
|
$ |
1,147.9 |
|
$ |
42.4 |
|
$ |
1,190.3 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
CoStar Group, Inc. |
|||||||||||||
Results of Segments - Unaudited |
|||||||||||||
(in millions) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
EBITDA |
|
|
|
|
|
|
|
||||||
|
$ |
30.8 |
|
|
$ |
104.6 |
|
$ |
34.0 |
|
|
$ |
201.3 |
International |
|
(18.7 |
) |
|
|
0.6 |
|
|
(34.6 |
) |
|
|
1.8 |
Total EBITDA |
$ |
12.1 |
|
|
$ |
105.2 |
|
$ |
(0.6 |
) |
|
$ |
203.1 |
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 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2024 |
||||
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Net income |
|
|
|
|
|
|
|
|
Income tax expense |
|
29.2 |
31.1 |
29.9 |
36.3 |
|
4.8 |
16.7 |
Income before income taxes |
|
116.4 |
131.7 |
120.5 |
132.7 |
|
11.5 |
35.9 |
Amortization of acquired intangible assets |
|
17.7 |
18.0 |
18.7 |
19.3 |
|
19.8 |
18.1 |
Stock-based compensation expense |
|
20.0 |
21.8 |
21.9 |
21.2 |
|
22.8 |
22.7 |
Acquisition and integration related costs |
|
1.7 |
(0.2) |
0.8 |
10.7 |
|
2.3 |
6.0 |
Restructuring and related costs |
|
3.4 |
(0.1) |
0.5 |
0.2 |
|
— |
— |
Settlements and impairments |
|
(0.1) |
— |
— |
— |
|
— |
— |
Other income, net |
|
— |
— |
— |
(3.8) |
|
— |
— |
Non-GAAP income before income taxes(1) |
|
159.1 |
171.2 |
162.4 |
180.3 |
|
56.4 |
82.7 |
Assumed rate for income tax expense(2) |
|
|
|
|
|
|
|
|
Assumed provision for income tax expense |
|
(41.4) |
(44.5) |
(42.2) |
(46.9) |
|
(14.7) |
(21.5) |
Non-GAAP net income(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share - diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average outstanding shares - basic |
|
404.5 |
405.4 |
405.6 |
405.8 |
|
405.6 |
406.0 |
Weighted average outstanding shares - diluted |
|
406.2 |
406.8 |
407.2 |
407.5 |
|
407.3 |
407.4 |
__________________________ |
|
|
|
|
|
|
|
|
(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. |
||||||||
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||||
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2024 |
||||
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Net income |
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets |
|
17.7 |
18.0 |
18.7 |
19.3 |
|
19.8 |
18.1 |
Depreciation and other amortization |
|
7.9 |
8.1 |
8.4 |
9.4 |
|
10.3 |
10.1 |
Interest income, net |
|
(43.5) |
(51.9) |
(58.4) |
(59.7) |
|
(56.2) |
(53.5) |
Other (income) expense, net(1) |
|
(0.6) |
(0.6) |
(0.5) |
(3.7) |
|
1.9 |
1.5 |
Income tax expense |
|
29.2 |
31.1 |
29.9 |
36.3 |
|
4.8 |
16.7 |
EBITDA(2) |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
20.0 |
21.8 |
21.9 |
21.2 |
|
22.8 |
22.7 |
Acquisition and integration related costs |
|
1.7 |
(0.2) |
0.8 |
10.7 |
|
2.3 |
6.0 |
Restructuring and related costs |
|
3.4 |
(0.1) |
0.5 |
0.2 |
|
— |
— |
Settlements and impairments |
|
(0.1) |
— |
— |
— |
|
— |
— |
Adjusted EBITDA(2) |
|
|
|
|
|
|
|
|
__________________________ |
|
|
|
|
|
|
|
|
(1) Includes |
||||||||
(2) Totals may not foot due to rounding. |
||||||||
CoStar Group, Inc. |
|||||||||||||||
Reconciliation of Forward-Looking Guidance - Unaudited |
|||||||||||||||
(in millions, 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, 2024 |
|
December 31, 2024 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
22 |
|
|
$ |
26 |
|
|
$ |
107 |
|
|
$ |
114 |
|
Income tax expense |
|
13 |
|
|
|
14 |
|
|
|
57 |
|
|
|
60 |
|
Income before income taxes |
|
35 |
|
|
|
40 |
|
|
|
164 |
|
|
|
174 |
|
Amortization of acquired intangible assets |
|
17 |
|
|
|
17 |
|
|
|
72 |
|
|
|
72 |
|
Stock-based compensation expense |
|
25 |
|
|
|
25 |
|
|
|
95 |
|
|
|
95 |
|
Acquisition and integration related costs |
|
8 |
|
|
|
8 |
|
|
|
24 |
|
|
|
24 |
|
Non-GAAP income before income taxes |
|
85 |
|
|
|
90 |
|
|
|
355 |
|
|
|
365 |
|
Assumed rate for income tax expense(1) |
|
26 |
% |
|
|
26 |
% |
|
|
26 |
% |
|
|
26 |
% |
Assumed provision for income tax expense |
|
(22 |
) |
|
|
(23 |
) |
|
|
(92 |
) |
|
|
(95 |
) |
Non-GAAP net income |
|
63 |
|
|
|
67 |
|
|
|
263 |
|
|
|
270 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - diluted |
$ |
0.05 |
|
|
$ |
0.06 |
|
|
$ |
0.26 |
|
|
$ |
0.28 |
|
Non-GAAP net income per share - diluted |
$ |
0.15 |
|
|
$ |
0.16 |
|
|
$ |
0.64 |
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average outstanding shares - diluted |
|
408.0 |
|
|
|
408.0 |
|
|
|
407.8 |
|
|
|
407.8 |
|
__________________________ |
|
|
|
|
|
|
|
||||||||
(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, 2024 |
|
December 31, 2024 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
Net income |
$ |
22 |
|
|
$ |
26 |
|
|
$ |
107 |
|
|
$ |
114 |
|
Amortization of acquired intangible assets |
|
17 |
|
|
|
17 |
|
|
|
72 |
|
|
|
72 |
|
Depreciation and other amortization |
|
10 |
|
|
|
10 |
|
|
|
41 |
|
|
|
41 |
|
Interest income, net |
|
(50 |
) |
|
|
(50 |
) |
|
|
(208 |
) |
|
|
(208 |
) |
Other (income) expense, net |
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
7 |
|
Income tax expense |
|
13 |
|
|
|
14 |
|
|
|
57 |
|
|
|
60 |
|
Stock-based compensation expense |
|
25 |
|
|
|
25 |
|
|
|
95 |
|
|
|
95 |
|
Acquisition and integration related costs |
|
8 |
|
|
|
8 |
|
|
|
24 |
|
|
|
24 |
|
Adjusted EBITDA |
$ |
47 |
|
|
$ |
52 |
|
|
$ |
195 |
|
|
$ |
205 |
|
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the
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: risks associated with the ability to consummate the proposed transaction with Matterport, Inc. ("Matterport") and the timing of the closing of the proposed transaction; the ability to successfully integrate operations and employees; the ability to realize anticipated benefits and synergies of the proposed mergers as rapidly or to the extent anticipated by financial analysts or investors; the potential impact of announcement of the proposed mergers or consummation of the proposed Matterport transaction on business relationships, including with employees, customers, suppliers and competitors; unfavorable outcomes of any legal proceedings that have been or may be instituted against CoStar or Matterport; the ability to retain key personnel; costs, fees, expenses and charges related to the proposed Matterport transaction; 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 or Homes.com net new bookings; the risk that revenues for the third quarter and full year 2024 will not be as stated in this press release; the risk that net income for the third quarter and full year 2024 will not be as stated in this press release; the risk that EBITDA for the third quarter and full year 2024 will not be as stated in this press release; the risk that adjusted EBITDA for the third quarter and full year 2024 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 2024 will not be as stated in this press release; the risk that we may not successfully integrate acquired businesses or assets and may not achieve anticipated benefits of an acquisition, including expected synergies; the risk that the tax rate estimates stated in this press release may change and the risk that we may experience declines in our revenues, revenue growth rates and profitability due to the impact of 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 (the "SEC"), including in CoStar Group’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report for the quarterly period ended March 31, 2024, 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/20240723117420/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@costar.com
Source: CoStar Group
FAQ
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