CoStar Group Third Quarter 2022 Revenue Increased 12% and Net New Bookings Grew 62% Year-over-Year. Apartments.com Climbs to Double-Digit Revenue Growth

Rhea-AI Summary

CoStar Group, Inc. (NASDAQ: CSGP) reported a 12% increase in revenue to $557 million for Q3 2022, up from $499 million in Q3 2021. Net income was $72 million or $0.18 per diluted share, while non-GAAP net income rose 19% to $118 million or $0.30 per diluted share. Net new bookings surged 62% year-over-year to $76 million. The company raised its FY revenue guidance to $2.175-$2.180 billion. CoStar's EBITDA for Q3 was $129 million. CFO Scott Wheeler noted strong product performance and a resilient subscription model.

Positive

• Revenue increased by 12% to $557 million in Q3 2022.
• Net new bookings totaled $76 million, up 62% from Q3 2021.
• Raised full-year revenue guidance to $2.175-$2.180 billion.
• Non-GAAP net income for Q3 2022 rose 19% to $118 million.
• CoStar's EBITDA for Q3 was $129 million.

Negative

• Net income decreased from $83 million in Q2 2022 to $72 million in Q3 2022.
• Net income per diluted share decreased from $0.21 in Q2 2022 to $0.18 in Q3 2022.

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 September 30, 2022 was $557 million, an increase of 12% over revenue of $499 million for the third quarter of 2021.

Net income for the third quarter of 2022 was $72 million, or $0.18 per diluted share. Non-GAAP net income for the third quarter of 2022 (which excludes amortization of acquired intangible assets, stock-based compensation, and other items as described below) was $118 million or $0.30 per diluted share, an increase of 19% compared to the third quarter of 2021. EBITDA for the third quarter of 2022 was $129 million.

“We delivered outstanding results across all of our business lines in the third quarter, with Apartments.com leading the way” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “Net new bookings totaled $76 million in the third quarter of 2022, up 62% over the third quarter of 2021. Year-to-date our sales results have already exceeded the net new bookings for the full year 2021, and we still have one quarter left to go. Both revenue and profit in the third quarter of 2022 were at or above the high end of our guidance range and we are raising our forecast for the year.”

“Apartments.com sales continue to accelerate,” continued Florance. “Our Apartments.com sales team delivered record sales in September, bringing our net new bookings to $90 million on a year-to-date basis in 2022, an increase of 192% compared to the same period of 2021. Revenue growth for Apartments.com accelerated to 11% in the third quarter, and we now expect revenue growth of 16% in the fourth quarter of 2022. Revenue growth for CoStar was even stronger with a 17% increase in the third quarter 2022 over third quarter 2021 on a constant currency basis.”

Year 2021-2022 Quarterly Results - Unaudited
(in millions, except per share data)
	2021					2022
	Q1	Q2	Q3	Q4		Q1	Q2	Q3
Revenues	$458	$480	$499	$507		$516	$536	$557
Net income	74	61	64	93		89	83	72
Net income per share - diluted(1)	0.19	0.16	0.16	0.24		0.23	0.21	0.18
Weighted average outstanding shares - diluted(1)	394	394	394	395		394	394	396
EBITDA	136	133	123	173		158	140	129
Adjusted EBITDA	160	150	144	193		178	159	153
Non-GAAP net income	108	103	99	138		123	112	118
Non-GAAP net income per share - diluted(1)	0.27	0.26	0.25	0.35		0.31	0.28	0.30
__________________________
(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.

2022 Outlook
The Company is raising its revenue guidance to a range of $2.175 billion to $2.180 billion for the full year of 2022, an increase of $5 million at the midpoint of the range compared to the prior outlook. The Company expects revenue for the fourth quarter of 2022 in the range of $565 million to $570 million, representing revenue growth of approximately 12% over the fourth quarter of 2021 at the midpoint of the range.

The Company is raising its adjusted EBITDA guidance to a range of $665 million to $670 million for the full year of 2022, an increase of $48 million at the midpoint of the range compared to the prior outlook. For the fourth quarter of 2022, the Company expects adjusted EBITDA in a range of $176 million to $181 million.

“Our financial results in the third quarter and improved 2022 revenue outlook demonstrate the strength of our products and resilience of our subscription-based business model,” said Scott Wheeler, Chief Financial Officer of CoStar Group. “We are making great progress with our Residential investment strategy while managing investment levels well below our initial estimates. This results in our improved profit outlook for 2022.”

The Company expects full year 2022 non-GAAP net income per diluted share in a range of $1.25 to $1.26 based on 397 million shares, an increase of $0.15 per diluted share compared to the prior outlook. For the fourth quarter of 2022, the Company expects non-GAAP net income per diluted share in a range of $0.35 to $0.36 based on 405 million shares. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the fourth quarter of 2022.

The preceding forward-looking statements reflect CoStar Group’s expectations as of October 25, 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, 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 third quarter 2022 results and the Company’s outlook at 5:00 PM EST on Tuesday, October 25, 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 September 30,							Nine Months Ended September 30,
			2022			2021				2022				2021
Revenues		$	556,921		$	499,319			$	1,609,054			$	1,437,349
Cost of revenues			108,364			92,597				304,814				270,911
Gross profit			448,557			406,722				1,304,240				1,166,438
Operating expenses:
Selling and marketing (excluding customer base amortization)			185,395			180,055				510,736				483,354
Software development			56,912			53,143				162,520				148,500
General and administrative			91,270			64,671				246,576				186,747
Customer base amortization			29,651			19,121				60,621				55,885
			363,228			316,990				980,453				874,486
Income from operations			85,329			89,732				323,787				291,952
Interest income (expense), net			10,656			(7,943	)			(461	)			(23,698	)
Other income, net			1,389			1,546				3,596				2,343
Income before income taxes			97,374			83,335				326,922				270,597
Income tax expense			25,084			19,031				81,841				70,933
Net income		$	72,290		$	64,304			$	245,081			$	199,664
Net income per share - basic		$	0.18		$	0.16			$	0.62			$	0.51
Net income per share - diluted		$	0.18		$	0.16			$	0.62			$	0.51
Weighted-average outstanding shares - basic			394,712			392,419				393,650				392,101
Weighted-average outstanding shares - diluted			396,209			394,295				394,973				394,036

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,
			2022				2021				2022				2021
Net income		$	72,290			$	64,304			$	245,081			$	199,664
Income tax expense			25,084				19,031				81,841				70,933
Income before income taxes			97,374				83,335				326,922				270,597
Amortization of acquired intangible assets			36,596				26,330				82,601				77,450
Stock-based compensation expense			18,138				16,299				54,097				46,988
Acquisition and integration related costs			1,095				5,012				3,238				15,475
Restructuring and related costs			191				—				191				—
Settlements and impairments			4,100				—				4,100				—
Other expense			2,063				934				6,162				2,791
Non-GAAP income before income taxes			159,557				131,910				477,311				413,301
Assumed rate for income tax expense(1)			26	%			25	%			26	%			25	%
Assumed provision for income tax expense			(41,485	)			(32,978	)			(124,101	)			(103,325	)
Non-GAAP net income		$	118,072			$	98,932			$	353,210			$	309,976
Net income per share - diluted		$	0.18			$	0.16			$	0.62			$	0.51
Non-GAAP net income per share - diluted		$	0.30			$	0.25			$	0.89			$	0.79
Weighted average outstanding shares - basic			394,712				392,419				393,650				392,101
Weighted average outstanding shares - diluted			396,209				394,295				394,973				394,036
__________________________
(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 September 30,								Nine Months Ended September 30,
			2022				2021				2022				2021
Net income		$	72,290			$	64,304			$	245,081			$	199,664
Amortization of acquired intangible assets in cost of revenues			6,945				7,209				21,980				21,565
Amortization of acquired intangible assets in operating expenses			29,651				19,121				60,621				55,885
Depreciation and other amortization			7,224				6,610				21,199				22,138
Interest (income) expense, net			(10,656	)			7,943				461				23,698
Other income, net			(1,389	)			(1,546	)			(3,596	)			(2,343	)
Income tax expense			25,084				19,031				81,841				70,933
EBITDA		$	129,149			$	122,672			$	427,587			$	391,540
Stock-based compensation expense			18,138				16,299				54,097				46,988
Acquisition and integration related costs			1,095				5,012				3,238				15,475
Restructuring and related costs			191				—				191				—
Settlements and impairments			4,100				—				4,100				—
Adjusted EBITDA		$	152,673			$	143,983			$	489,213			$	454,003

CoStar Group, Inc.
Condensed Consolidated Balance Sheets - Unaudited
(in thousands)
		September 30, 2022				December 31, 2021
ASSETS
Current assets:
Cash, cash equivalents and restricted cash		$	4,774,465			$	3,827,126
Accounts receivable			157,104				138,191
Less: Allowance for credit losses			(9,334	)			(13,374	)
Accounts receivable, net			147,770				124,817
Income tax receivable			9,278				—
Prepaid expenses and other current assets			75,074				36,182
Total current assets			5,006,587				3,988,125
Deferred income taxes, net			5,032				5,034
Property and equipment, net			306,319				271,431
Lease right-of-use assets			94,262				100,680
Goodwill			2,301,739				2,321,015
Intangible assets, net			343,232				435,662
Deferred commission costs, net			129,815				101,879
Deposits and other assets			16,872				21,762
Income tax receivable			2,005				11,283
Total assets		$	8,205,863			$	7,256,871
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	31,435			$	22,244
Accrued wages and commissions			83,041				81,794
Accrued expenses			77,275				81,676
Income taxes payable			39				31,236
Lease liabilities			34,063				26,268
Deferred revenue			100,053				95,471
Total current liabilities			325,906				338,689
Long-term debt, net			988,890				987,944
Deferred income taxes, net			80,611				98,656
Income taxes payable			14,603				12,496
Lease and other long-term liabilities			88,941				107,414
Total liabilities		$	1,498,951			$	1,545,199
Total stockholders' equity			6,706,912				5,711,672
Total liabilities and stockholders' equity		$	8,205,863			$	7,256,871

CoStar Group, Inc.
Condensed Consolidated Statements of Cash Flows - Unaudited
(in thousands)
	Nine Months Ended September 30,
		2022				2021
Operating activities:
Net income	$	245,081			$	199,664
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		109,983				102,390
Amortization of deferred commissions costs		55,373				46,728
Amortization of Senior Notes discount and issuance costs		1,771				1,742
Non-cash lease expense		23,108				21,118
Stock-based compensation expense		54,097				46,988
Deferred income taxes, net		(21,676	)			16,255
Credit loss expense		13,468				7,797
Other operating activities, net		(1,774	)			10
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(36,177	)			(17,715	)
Prepaid expenses and other current assets		(17,235	)			(18,820	)
Deferred commissions		(83,875	)			(49,798	)
Accounts payable and other liabilities		2,131				(27,912	)
Lease liabilities		(27,615	)			(23,596	)
Income taxes payable		(29,051	)			(3,583	)
Deferred revenue		4,488				15,800
Other assets		1,492				2,150
Net cash provided by operating activities		293,589				319,218
Investing activities:
Proceeds from sale of property and equipment and other assets		5,034				245
Purchase of Richmond assets and other intangibles		(31,530	)			(123,623	)
Purchases of property and equipment and other assets		(43,659	)			(21,533	)
Cash paid for acquisitions, net of cash acquired		(6,331	)			(152,594	)
Net cash used in investing activities		(76,486	)			(297,505	)
Financing activities:
Repayments of long-term debt assumed in acquisition		(2,155	)			—
Repurchase of restricted stock to satisfy tax withholding obligations		(20,259	)			(29,306	)
Proceeds from equity offering, net of transaction costs		746,170				—
Proceeds from exercise of stock options and employee stock purchase plan		10,777				15,025
Other financing activities		—				(57	)
Net cash provided by (used in) financing activities		734,533				(14,338	)
Effect of foreign currency exchange rates on cash and cash equivalents		(4,297	)			(1,700	)
Net increase in cash, cash equivalents and restricted cash		947,339				5,675
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	$	4,774,465			$	3,761,587

CoStar Group, Inc.
Disaggregated Revenues - Unaudited
(in thousands)
	Three Months Ended September 30,
	2022									2021
	North America			International			Total			North America			International			Total
CoStar	$	203,657		$	9,033		$	212,690		$	174,071		$	9,194		$	183,265
Information Services		32,524			8,489			41,013			29,177			6,749			35,926
Multifamily		189,536			—			189,536			171,125			—			171,125
LoopNet		57,126			1,775			58,901			52,103			424			52,527
Residential		19,351			—			19,351			24,747			—			24,747
Other Marketplaces		35,430			—			35,430			31,729			—			31,729
Total revenues	$	537,624		$	19,297		$	556,921		$	482,952		$	16,367		$	499,319
	Nine Months Ended September 30,
	2022									2021
	North America			International			Total			North America			International			Total
CoStar	$	590,141		$	27,764		$	617,905		$	505,470		$	26,958		$	532,428
Information Services		93,306			23,424			116,730			84,959			20,820			105,779
Multifamily		547,372			—			547,372			508,629			—			508,629
LoopNet		164,417			5,228			169,645			151,770			1,082			152,852
Residential		57,565			—			57,565			53,939			—			53,939
Other Marketplaces		99,837			—			99,837			83,722			—			83,722
Total revenues	$	1,552,638		$	56,416		$	1,609,054		$	1,388,489		$	48,860		$	1,437,349

CoStar Group, Inc.
Results of Segments - Unaudited
(in thousands)
	Three Months Ended September 30,						Nine Months Ended September 30,
		2022			2021			2022			2021
EBITDA
North America	$	127,965		$	119,823		$	422,454		$	385,857
International		1,184			2,849			5,133			5,683
Total EBITDA	$	129,149		$	122,672		$	427,587		$	391,540

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	Q3
Net income		$74.2	$61.1	$64.3	$92.9		$89.3	$83.5	$72.3
Income tax expense		19.1	32.8	19.0	40.5		32.1	24.7	25.1
Income before income taxes		93.3	93.9	83.3	133.4		121.4	108.1	97.4
Amortization of acquired intangible assets		25.8	25.3	26.3	26.2		23.2	22.8	36.6
Stock-based compensation expense		15.5	15.1	16.3	16.7		17.8	18.1	18.1
Acquisition and integration related costs		8.5	2.0	5.0	3.2		1.6	0.5	1.1
Restructuring and related costs		—	—	—	—		—	—	0.2
Settlements and impairments		—	—	—	—		—	—	4.1
Other expense		1.1	0.8	0.9	4.1		2.0	2.1	2.1
Non-GAAP income before income taxes(1)		144.2	137.1	131.8	183.6		166.1	151.6	159.6
Assumed rate for income tax expense (2)		25%	25%	25%	25%		26%	26%	26%
Assumed provision for income tax expense		(36.0)	(34.3)	(33.0)	(45.9)		(43.2)	(39.4)	(41.5)
Non-GAAP net income(1)		$108.2	$102.8	$98.8	$137.7		$122.9	$112.2	$118.1
Non-GAAP net income per share - diluted(3)		$0.27	$0.26	$0.25	$0.35		$0.31	$0.28	$0.30
Weighted average outstanding shares - basic(3)		391.6	392.3	392.4	392.5		392.9	393.3	394.7
Weighted average outstanding shares - diluted(3)		393.7	394.1	394.3	394.5		394.2	394.5	396.2
__________________________
(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	Q3
Net income		$74.2	$61.1	$64.3	$92.9		$89.3	$83.5	$72.3
Amortization of acquired intangible assets		25.8	25.3	26.3	26.2		23.2	22.8	36.6
Depreciation and other amortization		8.5	7.0	6.6	6.9		7.0	7.0	7.2
Interest (income) expense, net		7.9	7.9	7.9	7.9		7.7	3.4	(10.7)
Other (income) expense, net		0.1	(0.8)	(1.5)	(0.9)		(0.9)	(1.3)	(1.4)
Income tax expense		19.1	32.8	19.0	40.5		32.1	24.7	25.1
EBITDA(1)		$135.6	$133.3	$122.6	$173.4		$158.4	$140.0	$129.1
Stock-based compensation expense		15.5	15.1	16.3	16.7		17.8	18.1	18.1
Acquisition and integration related costs		8.5	2.0	5.0	3.2		1.6	0.5	1.1
Restructuring and related costs		—	—	—	—		—	—	0.2
Settlements and impairments		—	—	—	—		—	—	4.1
Adjusted EBITDA(1)		$159.6	$150.4	$143.9	$193.4		$177.9	$158.6	$152.7
__________________________
(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 December 31, 2022								December 31, 2022
	Low				High				Low				High
Net income	$	113,000			$	117,000			$	359,000			$	363,000
Income tax expense		40,000				41,000				122,000				123,000
Income before income taxes		153,000				158,000				481,000				486,000
Amortization of acquired intangible assets		20,000				20,000				102,000				102,000
Stock-based compensation expense		19,000				19,000				73,000				73,000
Acquisition and integration related costs		—				—				3,000				3,000
Settlements and impairments		—				—				4,000				4,000
Other expense		—				—				6,000				6,000
Non-GAAP income before income taxes		192,000				197,000				669,000				674,000
Assumed rate for income tax expense(1)		26	%			26	%			26	%			26	%
Assumed provision for income tax expense		(49,900	)			(51,200	)			(173,900	)			(175,200	)
Non-GAAP net income	$	142,100			$	145,800			$	495,100			$	498,800
Net income per share - diluted	$	0.28			$	0.29			$	0.90			$	0.91
Non-GAAP net income per share - diluted	$	0.35			$	0.36			$	1.25			$	1.26
Weighted average outstanding shares - diluted		405,300				405,300				397,300				397,300
__________________________
(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 December 31, 2022								December 31, 2022
	Low				High				Low				High
Net income	$	113,000			$	117,000			$	359,000			$	363,000
Amortization of acquired intangible assets		20,000				20,000				102,000				102,000
Depreciation and other amortization		9,000				9,000				30,000				30,000
Interest income, net		(25,000	)			(25,000	)			(24,000	)			(24,000	)
Other (income) expense, net		—				—				(4,000	)			(4,000	)
Income tax expense		40,000				41,000				122,000				123,000
Stock-based compensation expense		19,000				19,000				73,000				73,000
Acquisition and integration related costs		—				—				3,000				3,000
Settlements and impairments		—				—				4,000				4,000
Adjusted EBITDA	$	176,000			$	181,000			$	665,000			$	670,000

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; the risk that revenues for the fourth quarter and full year 2022 will not be as stated in this press release; the risk that net income for the fourth quarter and full year 2022 will not be as stated in this press release; the risk that EBITDA for the fourth quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the fourth 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 fourth quarter and full year 2022 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 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 Forms 10-Q for the quarters ended March 31, 2022 and June 30, 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/20221025006001/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, Inc.

FAQ

What were CoStar Group's Q3 2022 revenue and net income?

CoStar Group reported Q3 2022 revenue of $557 million and net income of $72 million.

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

CoStar Group raised its revenue guidance for 2022 to a range of $2.175 billion to $2.180 billion.

What was CoStar's net new bookings for Q3 2022?

Net new bookings for Q3 2022 totaled $76 million, an increase of 62% compared to Q3 2021.

What was CoStar Group's non-GAAP net income for Q3 2022?

CoStar Group's non-GAAP net income for Q3 2022 was $118 million, or $0.30 per diluted share.

What was CoStar's EBITDA for the third quarter of 2022?

CoStar Group's EBITDA for Q3 2022 was $129 million.