CoStar Group Third Quarter 2021 Revenue Increased 17% Year-over-Year, CoStar Accelerated to Double-Digit Revenue Growth with Net Sales Reaching All-Time High

Rhea-AI Summary

CoStar Group (NASDAQ: CSGP) reported a revenue increase to $499 million for Q3 2021, up 17% from $426 million in Q3 2020. Net income was $64 million, or $0.16 per diluted share. Non-GAAP net income rose to $99 million, an 11% increase year-over-year. EBITDA also rose to $123 million, a 13% increase. The company raised its full-year revenue guidance to $1.935-$1.940 billion, reflecting a 17% year-over-year growth at the midpoint. Adjusted EBITDA guidance was increased to $615-$620 million, while non-GAAP net income guidance per share was raised to $1.07-$1.08.

Positive

• Revenue increased by 17% to $499 million for Q3 2021.
• Net income rose to $64 million, with non-GAAP net income reaching $99 million, up 11% year-over-year.
• EBITDA climbed to $123 million, reflecting a 13% increase.
• Raised full-year revenue guidance to $1.935-$1.940 billion, representing 17% growth.
• Increased adjusted EBITDA guidance to $615-$620 million.
• Non-GAAP net income guidance per diluted share raised to $1.07-$1.08.

Negative

• Reduction in expected revenue from Multifamily sector due to ultra-low vacancy rates.

WASHINGTON--(BUSINESS WIRE)-- CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics, and online marketplaces, announced today that revenue for the quarter ended September 30, 2021, was $499 million, an increase of 17% over revenue of $426 million for the third quarter of 2020.

Net income for the third quarter of 2021 was $64 million, or $0.16 per diluted share. Non-GAAP net income for the third quarter of 2021 (which excludes amortization of acquired intangible assets, stock-based compensation, and other items as described below) was $99 million or $0.25 per diluted share, an increase of $10 million or 11% versus the third quarter of 2020. EBITDA for the third quarter of 2021 was $123 million, an increase of 13% versus EBITDA of $108 million for the third quarter of 2020.

“We achieved another great quarter of strong results, with CoStar Group now at nearly $2 billion in run rate revenue and profit for the third quarter of 2021 well-ahead of our guidance,” commented Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “CoStar performance continues to improve, with revenue returning to double-digit growth rates in the third quarter of 2021 and our CoStar sales team produced net sales bookings 57% higher quarter-over-quarter and 566% higher year-over-year," continued Florance. "I’m very happy with the performance of our Ten-X and Residential businesses as well, both of which delivered exceptional revenue growth of 27% for Ten-X and 38% for Homesnap, on a year-over-year and pro forma basis, respectively.”

“With recent record levels of demand for apartments, vacancies have declined to the lowest levels in decades creating some headwinds for demand in apartment advertising. However, traffic to our network of sites increased 17% year-over-year in the third quarter of 2021,” stated Florance, “with Apartments.com generating millions more high-quality leads for our customers year-over-year in a low-vacancy environment while our clients are increasing their rents to record levels. This tremendous growth in leads and rents has positioned Apartments.com to begin initiating pricing adjustments to better capture the value of the lead flow we are delivering to our clients. We are just beginning to implement the new pricing, and I am encouraged by the initial results of the price changes.”

Companywide net bookings for the third quarter of 2021 were $47 million, which includes stronger than expected CoStar sales offset by sales results slowed by the ultra-low vacancy rates in Multifamily.

Year 2020-2021 Quarterly Results - Unaudited
(in millions, except per share data)
	2020					2021
	Q1	Q2	Q3	Q4		Q1	Q2	Q3
Revenues	$392	$397	$426	$444		$458	$480	$499
Net income	73	60	58	36		74	61	64
Net income per share - diluted(1)	0.20	0.16	0.15	0.09		0.19	0.16	0.16
Weighted average outstanding shares - diluted(1)	368	377	394	394		394	394	394
EBITDA	100	109	108	88		136	133	123
Adjusted EBITDA	124	129	134	167		160	150	144
Non-GAAP net income	90	88	89	112		108	103	99
Non-GAAP net income per share - diluted(1)	0.24	0.23	0.23	0.29		0.27	0.26	0.25
__________________________
(1) 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 September 30, 2021, the Company had approximately $3.8 billion in cash, cash equivalents and restricted cash and outstanding debt of approximately $988 million.

2021 Outlook

“In order to provide additional transparency and insight into the revenue performance of our most promising growth areas, we will now report revenue for both LoopNet and Residential services separately in our quarterly financial results,” said CoStar Group Chief Financial Officer, Scott Wheeler. The Commercial Property and Land sector is being renamed Other Marketplaces and includes Ten-X and the Lands and Businesses for Sale marketplaces.

The Company is adjusting its revenue guidance for the full year of 2021 to a new range of $1.935 billion to $1.940 billion, representing growth of approximately 17% year-over-year at the midpoint of the range. The new guidance includes a reduction in expected revenue from Multifamily which is partially offset by stronger expected revenue from CoStar. Revenue for the fourth quarter of 2021 is expected to be in the range of $498 million to $503 million, representing year-over-year revenue growth of approximately 13% at the midpoint of the range.

The Company is raising its adjusted EBITDA guidance for the full year of 2021 to a new range of $615 million to $620 million, representing growth of approximately 12% at the midpoint of the range. For the fourth quarter of 2021, the Company expects adjusted EBITDA in a range of $161 million to $166 million.

The Company is raising its non-GAAP net income per diluted share guidance for full-year 2021 to a new range of $1.07 to $1.08 per share based on 394 million shares. For the fourth quarter of 2021, we expect non-GAAP net income per diluted share in a range of $0.29 to $0.30 per share based on 394 million shares. These ranges include an estimated non-GAAP tax rate of 25% for the full year and the fourth quarter of 2021.

The preceding forward-looking statements reflect CoStar Group’s expectations as of October 26, 2021, 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 commercial 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.

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 2021, the Company is assuming a 25% tax rate in order to approximate our 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.

Earnings Conference Call

Management will conduct a conference call to discuss third quarter 2021 results and the Company’s outlook at 5:00 PM EDT on Tuesday, October 26, 2021. 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 September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Revenues		$	499,319			$	425,620			$	1,437,349			$	1,214,626
Cost of revenues		92,597				77,865				270,911				230,814
Gross profit		406,722				347,755				1,166,438				983,812
Operating expenses:
Selling and marketing (excluding customer base amortization)		180,055				146,634				483,354				402,202
Software development		53,143				40,732				148,500				121,343
General and administrative		64,671				65,322				186,747				181,598
Customer base amortization		19,121				18,258				55,885				44,677
		316,990				270,946				874,486				749,820
Income from operations		89,732				76,809				291,952				233,992
Interest expense, net		(7,943)				(7,537)				(23,698)				(9,482)
Other income (expense)		1,546				(338)				2,343				29
Income before income taxes		83,335				68,934				270,597				224,539
Income tax expense		19,031				10,748				70,933				33,200
Net income		$	64,304			$	58,186			$	199,664			$	191,339
Net income per share - basic(1)		$	0.16			$	0.15			$	0.51			$	0.51
Net income per share - diluted(1)		$	0.16			$	0.15			$	0.51			$	0.50
Weighted-average outstanding shares - basic(1)		392,419				391,586				392,101				377,177
Weighted-average outstanding shares - diluted(1)		394,295				394,013				394,036				379,704
__________________________
(1) 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.

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 September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Net income		$	64,304			$	58,186			$	199,664			$	191,339
Income tax expense		19,031				10,748				70,933				33,200
Income before income taxes		83,335				68,934				270,597				224,539
Amortization of acquired intangible assets		26,330				24,870				77,450				63,348
Stock-based compensation expense		16,299				16,730				46,988				41,437
Acquisition and integration related costs		5,012				7,887				15,475				26,631
Restructuring and related costs		—				413				—				413
Other expense		934				113				2,791				113
Non-GAAP income before income taxes		131,910				118,947				413,301				356,481
Assumed rate for income tax expense(1)		25		%		25		%		25		%		25		%
Assumed provision for income tax expense		(32,978)				(29,737)				(103,325)				(89,120)
Non-GAAP net income		$	98,932			$	89,210			$	309,976			$	267,361
Net income per share - diluted(2)		$	0.16			$	0.15			$	0.51			$	0.50
Non-GAAP net income per share - diluted(2)		$	0.25			$	0.23			$	0.79			$	0.70
Weighted average outstanding shares - basic(2)		392,419				391,586				392,101				377,177
Weighted average outstanding shares - diluted(2)		394,295				394,013				394,036				379,704
__________________________
(1) A 25% tax rate is assumed for 2021 and 2020, which approximates our statutory federal and state corporate tax rate.
(2) 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
		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Net income		$	64,304			$	58,186			$	199,664			$	191,339
Amortization of acquired intangible assets in cost of revenues		7,209				6,612				21,565				18,671
Amortization of acquired intangible assets in operating expenses		19,121				18,258				55,885				44,677
Depreciation and other amortization		6,610				6,806				22,138				20,563
Interest expense		7,943				7,537				23,698				9,482
Other (income) expense		(1,546)				338				(2,343)				(29)
Income tax expense		19,031				10,748				70,933				33,200
EBITDA		$	122,672			$	108,485			$	391,540			$	317,903
Stock-based compensation expense		16,299				16,730				46,988				41,437
Acquisition and integration related costs		5,012				7,887				15,475				26,631
Restructuring and related costs		—				413				—				413
Adjusted EBITDA		$	143,983			$	133,515			$	454,003			$	386,384

CoStar Group, Inc.
Condensed Consolidated Balance Sheets - Unaudited
(in thousands)
		September 30, 2021				December 31, 2020
ASSETS
Current assets:
Cash, cash equivalents and restricted cash		$	3,761,587			$	3,755,912
Accounts receivable		128,700				119,059
Less: Allowance for credit losses		(13,049)				(15,110)
Accounts receivable, net		115,651				103,949
Prepaid expenses and other current assets		37,599				28,651
Total current assets		3,914,837				3,888,512
Deferred income taxes, net		1,975				4,983
Property and equipment, net		238,866				126,325
Lease right-of-use assets		105,964				108,740
Goodwill		2,293,514				2,235,999
Intangible assets, net		447,900				426,745
Deferred commission costs, net		96,303				93,274
Deposits and other assets		16,971				15,856
Income tax receivable		14,986				14,986
Total assets		$	7,131,316			$	6,915,420
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	17,487			$	15,732
Accrued wages and commissions		82,905				80,998
Accrued expenses		86,788				110,305
Income taxes payable		11,828				16,316
Lease liabilities		29,878				32,648
Deferred revenue		92,631				74,851
Total current liabilities		321,517				330,850
Long-term debt, net		987,633				986,715
Deferred income taxes, net		83,399				72,991
Income taxes payable		26,188				25,282
Lease and other long-term liabilities		109,156				124,223
Total liabilities		$	1,527,893			$	1,540,061
Total stockholders’ equity		5,603,423				5,375,359
Total liabilities and stockholders’ equity		$	7,131,316			$	6,915,420

CoStar Group, Inc.
Condensed Consolidated Statements of Cash Flows - Unaudited
(in thousands)
	Nine Months Ended September 30,
	2021				2020
Operating activities:
Net income	$	199,664			$	191,339
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	102,390				83,911
Amortization of deferred commissions costs	46,728				45,017
Amortization of Senior Notes discount and issuance costs	1,742				1,082
Non-cash lease expense	21,118				18,801
Stock-based compensation expense	46,988				40,783
Deferred income taxes, net	16,255				6,812
Credit loss expense	7,797				21,395
Other operating activities, net	10				(12)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(17,715)				(34,131)
Prepaid expenses and other current assets	(18,820)				4,145
Deferred commissions	(49,798)				(48,704)
Accounts payable and other liabilities	(27,912)				47,341
Lease liabilities	(23,596)				(21,247)
Income taxes payable	(3,583)				(9,838)
Deferred revenue	15,800				7,123
Other assets	2,150				1,521
Net cash provided by operating activities	319,218				355,338
Investing activities:
Proceeds from sale and settlement of investments	—				10,259
Proceeds from sale of property and equipment and other assets	245				—
Purchase of Richmond assets and other intangibles	(123,623)				—
Purchases of property and equipment and other assets	(21,533)				(42,137)
Cash paid for acquisitions, net of cash acquired	(152,594)				(192,002)
Net cash used in investing activities	(297,505)				(223,880)
Financing activities:
Proceeds from long-term debt	—				1,744,210
Payments of debt issuance costs	—				(15,747)
Payments of long-term debt	—				(745,000)
Repurchase of restricted stock to satisfy tax withholding obligations	(29,306)				(34,051)
Proceeds from equity offering, net of transaction costs	—				1,689,971
Proceeds from exercise of stock options and employee stock purchase plan	15,025				28,169
Other financing activities	(57)				(1,650)
Net cash (used in) provided by financing activities	(14,338)				2,665,902
Effect of foreign currency exchange rates on cash and cash equivalents	(1,700)				(286)
Net increase in cash, cash equivalents and restricted cash	5,675				2,797,074
Cash, cash equivalents and restricted cash at the beginning of period	3,755,912				1,070,731
Cash, cash equivalents and restricted cash at the end of period	$	3,761,587			$	3,867,805

CoStar Group, Inc.
Disaggregated Revenues - Unaudited
(in thousands)
	Three Months Ended September 30,
	2021												2020
	North America				International				Total				North America				International				Total
CoStar	$	174,071			$	9,194			$	183,265			$	158,235			$	7,753			$	165,988
Information Services	29,177				6,749				35,926				26,357				6,817				33,174
Multifamily	171,125				—				171,125				155,184				—				155,184
LoopNet(1)	52,103				424				52,527				44,938				146				45,084
Residential(1)	24,747				—				24,747				—				—				—
Other Marketplaces(1)	31,729				—				31,729				26,190				—				26,190
Total revenues	$	482,952			$	16,367			$	499,319			$	410,904			$	14,716			$	425,620
__________________________
(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces.
	Nine Months Ended September 30,
	2021												2020
	North America				International				Total				North America				International				Total
CoStar	$	505,470			$	26,958			$	532,428			$	473,363			$	22,634			$	495,997
Information Services	84,959				20,820				105,779				77,069				19,023				96,092
Multifamily	508,629				—				508,629				438,185				—				438,185
LoopNet(1)	151,770				1,082				152,852				131,348				256				131,604
Residential(1)	53,939				—				53,939				—				—				—
Other Marketplaces(1)	83,722				—				83,722				52,748				—				52,748
Total revenues	$	1,388,489			$	48,860			$	1,437,349			$	1,172,713			$	41,913			$	1,214,626
__________________________
(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces.

CoStar Group, Inc.
Results of Segments - Unaudited
(in thousands)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2021				2020				2021				2020
EBITDA
North America	$	119,823			$	107,906			$	385,857			$	322,611
International	2,849				579				5,683				(4,708)
Total EBITDA	$	122,672			$	108,485			$	391,540			$	317,903

CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures with 2020-2021 Quarterly Results - Unaudited
(in millions, except per share data)
Reconciliation of Net Income to Non-GAAP Net Income
		2020					2021
		Q1	Q2	Q3	Q4		Q1	Q2	Q3
Net income		$72.8	$60.4	$58.2	$35.8		$74.2	$61.1	$64.3
Income tax expense		5.6	16.9	10.7	10.7		19.1	32.8	19.0
Income before income taxes		78.4	77.3	68.9	46.4		93.3	93.9	83.3
Amortization of acquired intangible assets		17.5	21.0	24.9	24.8		25.8	25.3	26.3
Stock-based compensation expense		15.2	9.5	16.7	12.7		15.5	15.1	16.3
Acquisition and integration related costs		8.7	10.0	7.9	65.9		8.5	2.0	5.0
Restructuring and related costs		—	—	0.4	—		—	—	—
Other expense		—	—	0.1	—		1.1	0.8	0.9
Non-GAAP income before income taxes		119.8	117.8	118.9	149.8		144.2	137.1	131.8
Assumed rate for income tax expense (1)		25%	25%	25%	25%		25%	25%	25%
Assumed provision for income tax expense		(30.0)	(29.5)	(29.7)	(37.5)		(36.0)	(34.3)	(33.0)
Non-GAAP net income		$89.8	$88.3	$89.2	$112.3		$108.2	$102.8	$98.8
Non-GAAP net income per share - diluted(2)		$0.24	$0.23	$0.23	$0.29		$0.27	$0.26	$0.25
Weighted average outstanding shares - basic(2)		364.7	375.2	391.6	391.4		391.6	392.3	392.4
Weighted average outstanding shares - diluted(2)		367.8	377.3	394.0	394.0		393.7	394.1	394.3
__________________________
(1) A 25% tax rate is assumed for 2021 and 2020, which approximates our statutory federal and state corporate tax rate.
(2) 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
		2020					2021
		Q1	Q2	Q3	Q4		Q1	Q2	Q3
Net income		$72.8	$60.4	$58.2	$35.8		$74.2	$61.1	$64.3
Amortization of acquired intangible assets		17.5	21.0	24.9	24.8		25.8	25.3	26.3
Depreciation and other amortization		6.8	7.0	6.8	8.2		8.5	7.0	6.6
Interest (income) expense		(1.7)	3.6	7.5	7.9		7.9	7.9	7.9
Other (income) expense		(0.8)	0.4	0.3	0.9		0.1	(0.8)	(1.5)
Income tax expense		5.6	16.9	10.7	10.7		19.1	32.8	19.0
EBITDA		$100.2	$109.3	$108.4	$88.3		$135.6	$133.3	$122.6
Stock-based compensation expense		15.1	9.5	16.7	12.7		15.5	15.1	16.3
Acquisition and integration related costs		8.7	10.0	7.9	65.9		8.5	2.0	5.0
Restructuring and related costs		—	—	0.4	—		—	—	—
Adjusted EBITDA		$124.0	$128.8	$133.4	$166.9		$159.6	$150.4	$143.9

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 December 31, 2021								December 31, 2021
	Low				High				Low				High
Net income	$	76,000			$	80,000			$	276,000			$	280,000
Income tax expense	25,000				26,000				96,000				97,000
Income before income taxes	101,000				106,000				372,000				377,000
Amortization of acquired intangible assets	26,000				26,000				103,000				103,000
Stock-based compensation expense	17,000				17,000				64,000				64,000
Acquisition and integration related costs	2,000				2,000				17,000				17,000
Other expense	5,000				5,000				8,000				8,000
Non-GAAP income before income taxes	151,000				156,000				564,000				569,000
Assumed rate for income tax expense(1)	25		%		25		%		25		%		25		%
Assumed provision for income tax expense	(37,800)				(39,000)				(141,000)				(142,300)
Non-GAAP net income	$	113,200			$	117,000			$	423,000			$	426,700
Net income per share - diluted(2)	$	0.19			$	0.20			$	0.70			$	0.71
Non-GAAP net income per share - diluted(2)	$	0.29			$	0.30			$	1.07			$	1.08
Weighted average outstanding shares - diluted(2)	394,400				394,400				394,000				394,000
__________________________
(1) A 25% tax rate is assumed, which approximates our statutory federal and state corporate tax rate.
(2) 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 Forward-Looking Guidance, Net Income to Adjusted EBITDA
	Guidance Range								Guidance Range
	For the Three Months								For the Year Ending
	Ending December 31, 2021								December 31, 2021
	Low				High				Low				High
Net income	$	76,000			$	80,000			$	276,000			$	280,000
Amortization of acquired intangible assets	26,000				26,000				103,000				103,000
Depreciation and other amortization	8,000				8,000				30,000				30,000
Interest expense	8,000				8,000				32,000				32,000
Other (income)	(1,000)				(1,000)				(3,000)				(3,000)
Income tax expense	25,000				26,000				96,000				97,000
Stock-based compensation expense	17,000				17,000				64,000				64,000
Acquisition and integration related costs	2,000				2,000				17,000				17,000
Adjusted EBITDA	$	161,000			$	166,000			$	615,000			$	620,000

About CoStar Group, Inc.

CoStar Group, Inc. (NASDAQ: CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. 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 sector. 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 maintains offices throughout the U.S. and in Europe, Canada and Asia with a staff of approximately 4,800 worldwide, including the industry’s largest professional research organization. For more information, visit www.costargroup.com.

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 or expectations are not met, including trends and expectations related to revenue, net income, non-GAAP net income, EBITDA, adjusted EBITDA, adjusted EBITDA margin, gross margin, sales, net new bookings, site traffic and visitors, leads, and renewal rates; the risk that pricing adjustments for Apartments.com do not achieve the anticipated results, including capturing the value of the lead flow delivered; the risk that the Company is unable to sustain current revenue and earnings, including CoStar, Ten-X and Homesnap revenue growth rates or increase them; the risk that the Company is unable to sustain current CoStar net new bookings; the risk that revenues for the fourth quarter and full year 2021 will not be as stated in this press release; the risk that net income for the fourth quarter and full year 2021 will not be as stated in this press release; the risk that adjusted EBITDA for the fourth quarter and full year 2021 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 fourth quarter and full year 2021 will not be as stated in this press release; the risk that the tax rate estimates stated in this press release may change; uncertainty surrounding the impact of the COVID-19 pandemic, including volatility in the international and U.S. economy and the commercial real estate industry, employee attrition, absenteeism or decreased productivity, quarantines or other travel or health-related restrictions; the length and severity of the COVID-19 pandemic; the pace of recovery following the COVID-19 pandemic; and government and private actions taken to control the spread of COVID-19. 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, 2020 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, 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/20211026006200/en/

Investor Relations:

Bill Warmington

Vice President

CoStar Group Investor Relations

(202) 346-5661

wwarmington@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 Q3 2021?

CoStar Group reported revenue of $499 million for Q3 2021.

What was CoStar Group's net income for Q3 2021?

CoStar Group's net income for Q3 2021 was $64 million.

What is the adjusted EBITDA guidance for CoStar Group for 2021?

CoStar Group raised its adjusted EBITDA guidance for 2021 to a range of $615 million to $620 million.

How much did CoStar Group's revenue increase compared to Q3 2020?

CoStar Group's revenue increased by 17% compared to Q3 2020.

What is the expected non-GAAP net income per share for CoStar Group in 2021?

CoStar Group expects its non-GAAP net income per diluted share to be in the range of $1.07 to $1.08 for 2021.