CoStar Group Third Quarter Revenue Increased 11% Year-over-Year; Net Income Increased 176% and EBITDA Increased 320% from the Second Quarter
CoStar Group reported strong Q3 2024 results with revenue of $693 million, up 11% year-over-year. Net income increased 176% from Q2 2024 to $53 million, with earnings per diluted share of $0.13. EBITDA rose 320% to $51 million, while Adjusted EBITDA grew 86% to $76 million, exceeding guidance by 54%.
The company's commercial information and marketplace businesses achieved 43% profit margins. Average monthly unique visitors increased 28% year-over-year to 163 million. Homes.com's unaided awareness rose from 4% to 33% since February 2024. In the UK, OnTheMarket saw significant growth in traffic, visitors, agents, leads, and listings.
CoStar Group updated its 2024 outlook, projecting full-year revenue of $2.72-$2.73 billion and Q4 revenue of $693-$703 million. Adjusted EBITDA guidance for 2024 was raised to $205-$215 million, with Q4 expected at $76-$86 million. The company forecasts full-year non-GAAP EPS of $0.67-$0.69 and Q4 non-GAAP EPS of $0.21-$0.23.
CoStar Group ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi di 693 milioni di dollari, in aumento dell'11% rispetto all'anno precedente. L'utile netto è aumentato del 176% dal secondo trimestre del 2024, raggiungendo 53 milioni di dollari, con utili per azione diluiti di $0,13. L'EBITDA è cresciuto del 320%, raggiungendo 51 milioni di dollari, mentre l'EBITDA rettificato è aumentato dell'86% a 76 milioni di dollari, superando le previsioni del 54%.
Le attività di informazioni commerciali e mercato dell'azienda hanno raggiunto margini di profitto del 43%. Il numero medio di visitatori unici mensili è aumentato del 28% rispetto all'anno precedente, arrivando a 163 milioni. La consapevolezza non sollecitata di Homes.com è passata dal 4% al 33% da febbraio 2024. Nel Regno Unito, OnTheMarket ha visto una crescita significativa nel traffico, nei visitatori, negli agenti, nei lead e nelle inserzioni.
CoStar Group ha aggiornato le sue previsioni per il 2024, stimando ricavi totali per l'anno compresi tra 2,72 e 2,73 miliardi di dollari e ricavi per il quarto trimestre tra 693 e 703 milioni di dollari. Le previsioni per l'EBITDA rettificato nel 2024 sono state aumentate a un intervallo di 205-215 milioni di dollari, con aspettative per il quarto trimestre tra 76 e 86 milioni di dollari. L'azienda prevede un utile per azione non-GAAP per l'intero anno di 0,67-0,69 dollari e un utile per azione non-GAAP per il quarto trimestre di 0,21-0,23 dollari.
CoStar Group reportó resultados sólidos para el tercer trimestre de 2024, con ingresos de 693 millones de dólares, un aumento del 11% en comparación con el año anterior. El ingreso neto aumentó un 176% desde el segundo trimestre de 2024, alcanzando 53 millones de dólares, con ganancias por acción diluidas de $0.13. El EBITDA creció un 320%, alcanzando 51 millones de dólares, mientras que el EBITDA ajustado aumentó un 86% a 76 millones de dólares, superando la guía en un 54%.
Los negocios de información comercial y mercado de la compañía lograron márgenes de ganancias del 43%. El promedio mensual de visitantes únicos creció un 28% en comparación con el año anterior, alcanzando los 163 millones. La conciencia no asistida de Homes.com aumentó del 4% al 33% desde febrero de 2024. En el Reino Unido, OnTheMarket vio un crecimiento significativo en tráfico, visitantes, agentes, leads y listados.
CoStar Group actualizó su pronóstico para 2024, proyectando ingresos anuales de 2.72 a 2.73 mil millones de dólares y ingresos para el cuarto trimestre de 693 a 703 millones de dólares. La guía de EBITDA ajustado para 2024 se elevó a 205-215 millones de dólares, con el cuarto trimestre esperado entre 76 y 86 millones. La compañía pronostica un EPS no-GAAP anual de 0.67-0.69 dólares y un EPS no-GAAP para el cuarto trimestre de 0.21-0.23 dólares.
CoStar Group은 2024년 3분기 실적을 발표하며 6억 9300만 달러의 매출을 기록했고, 이는 전년 동기 대비 11% 증가한 수치입니다. 순이익은 2024년 2분기 대비 176% 증가하여 5300만 달러에 도달하였고, 희석주당순이익은 $0.13에 달합니다. EBITDA는 320% 증가하여 5100만 달러에 이르렀고, 조정 EBITDA는 86% 증가하여 7600만 달러를 기록하여 가이던스를 54% 초과했습니다.
회사의 상업 정보 및 시장 사업은 43%의 이익률을 달성했습니다. 월 평균 고유 방문자는 전년 대비 28% 증가하여 1억 6300만 명에 달했습니다. Homes.com의 비주목 인지도는 2024년 2월부터 4%에서 33%로 증가했습니다. 영국에서는 OnTheMarket이 트래픽, 방문자, 에이전트, 리드 및 목록에서 상당한 성장을 보였습니다.
CoStar Group은 2024년 전망을 업데이트하며 연간 매출을 27억 2000만에서 27억 3000만 달러로 예상하고, 4분기 매출을 6억 9300만에서 7억 300만 달러로 예상했습니다. 2024년 조정 EBITDA 가이드는 2억 5000만에서 2억 1500만 달러로 상향 조정되었으며, 4분기 예상은 7600만에서 8600만 달러입니다. 회사는 연간 비-GAAP EPS를 0.67-0.69 달러, 4분기 비-GAAP EPS를 0.21-0.23 달러로 예측하고 있습니다.
Le groupe CoStar a annoncé des résultats solides pour le troisième trimestre 2024, avec un chiffre d'affaires de 693 millions de dollars, en hausse de 11 % par rapport à l'année précédente. Le bénéfice net a augmenté de 176 % par rapport au deuxième trimestre 2024, atteignant 53 millions de dollars, avec un bénéfice par action diluée de 0,13 $. L'EBITDA a augmenté de 320 % pour atteindre 51 millions de dollars, tandis que l'EBITDA ajusté a crû de 86 % pour atteindre 76 millions de dollars, dépassant les prévisions de 54 %.
Les activités d'information commerciale et de marché de l'entreprise ont atteint des marges bénéficiaires de 43 %. Le nombre moyen de visiteurs uniques mensuels a augmenté de 28 % d'une année sur l'autre pour atteindre 163 millions. La notoriété spontanée de Homes.com est passée de 4 % à 33 % depuis février 2024. Au Royaume-Uni, OnTheMarket a connu une croissance significative du trafic, des visiteurs, des agents, des prospects et des annonces.
Le groupe CoStar a mis à jour ses prévisions pour 2024, projetant un chiffre d'affaires annuel de 2,72 à 2,73 milliards de dollars et un chiffre d'affaires pour le quatrième trimestre de 693 à 703 millions de dollars. La prévision d'EBITDA ajusté pour 2024 a été relevée à 205-215 millions de dollars, avec des attentes pour le quatrième trimestre entre 76 et 86 millions de dollars. L'entreprise prévoit un BPA non-GAAP annuel de 0,67 à 0,69 $ et un BPA non-GAAP pour le quatrième trimestre de 0,21 à 0,23 $.
Die CoStar Group meldete im dritten Quartal 2024 starke Ergebnisse mit einem Umsatz von 693 Millionen Dollar, was einem Anstieg von 11% im Vergleich zum Vorjahr entspricht. Der Nettogewinn stieg im zweiten Quartal 2024 um 176% auf 53 Millionen Dollar, mit einem Gewinn pro verwässerter Aktie von 0,13 Dollar. EBITDA stieg um 320% auf 51 Millionen Dollar, während bereinigtes EBITDA um 86% auf 76 Millionen Dollar wuchs und die Vorgaben um 54% übertraf.
Die Geschäftsbereiche für kommerzielle Informationen und Marktplätze erzielten Gewinnmargen von 43%. Die durchschnittlichen monatlichen eindeutigen Besucher stiegen im Jahresvergleich um 28% auf 163 Millionen. Die ungestützte Markenbekanntheit von Homes.com stieg von 4% auf 33% seit Februar 2024. Im Vereinigten Königreich verzeichnete OnTheMarket ein bedeutendes Wachstum bei Verkehr, Besuchern, Maklern, Leads und Inseraten.
Die CoStar Group aktualisierte ihren Ausblick für 2024 und prognostiziert einen Jahresumsatz von 2,72 bis 2,73 Milliarden Dollar sowie einen Umsatz im vierten Quartal von 693 bis 703 Millionen Dollar. Die Prognose für bereinigtes EBITDA für 2024 wurde auf 205 bis 215 Millionen Dollar angehoben, mit einer Erwartung für das vierte Quartal von 76 bis 86 Millionen Dollar. Das Unternehmen erwartet für das Gesamtjahr einen Non-GAAP EPS von 0,67 bis 0,69 Dollar und einen Non-GAAP EPS von 0,21 bis 0,23 Dollar für das vierte Quartal.
- Revenue increased 11% year-over-year to $693 million in Q3 2024
- Net income grew 176% from Q2 2024 to $53 million
- EBITDA increased 320% from Q2 2024 to $51 million
- Adjusted EBITDA rose 86% from Q2 2024 to $76 million, exceeding guidance by 54%
- Commercial information and marketplace businesses achieved 43% profit margins
- Average monthly unique visitors increased 28% year-over-year to 163 million
- Homes.com unaided awareness increased from 4% to 33% since February 2024
- OnTheMarket saw significant growth in traffic, visitors, agents, leads, and listings in the UK
- Full-year 2024 revenue guidance raised to $2.72-$2.73 billion
- Adjusted EBITDA guidance for 2024 increased to $205-$215 million
- None.
Insights
CoStar Group's Q3 2024 results demonstrate solid financial performance and growth. Revenue increased
The company's core businesses, Apartments.com and CoStar, continue to drive growth with double-digit revenue increases. The commercial information and marketplace segment achieved an impressive
Looking ahead, CoStar has raised its full-year 2024 guidance, now expecting revenue between
CoStar Group's Q3 results reflect significant market penetration and brand growth strategies. The Homes.com network achieved 130 million average monthly unique visitors in the U.S., with unaided awareness skyrocketing from
In the U.K., CoStar's acquisition of OnTheMarket is yielding impressive results. In just 10 months, they've seen year-over-year growth of
The company's continued investment in marketing, despite potential economic headwinds, is a strategic move to capitalize on future market recovery. As interest rates potentially decrease and transaction volumes increase, CoStar is well-positioned to leverage its enhanced brand awareness and user base for sustained long-term growth across its portfolio of real estate marketplaces and information services.
“We achieved another strong quarter of results with our 54th consecutive quarter of double-digit revenue growth,” said Andy Florance, Founder and CEO of CoStar Group. “CoStar Group revenue grew
Florance continued, “Our marketing investment continues to deliver strong results as we lay the groundwork for sustained long-term growth as interest rates move down, transaction volume increases and our brands gain even more traction. CoStar Group had a
Year 2023-2024 Quarterly Results - Unaudited |
||||||||
(in millions, except per share data) |
||||||||
|
2023 |
|
2024 |
|||||
|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Q3 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
Net income |
87 |
101 |
91 |
96 |
|
7 |
19 |
53 |
Net income per share - diluted |
0.21 |
0.25 |
0.22 |
0.24 |
|
0.02 |
0.05 |
0.13 |
Weighted average outstanding shares - diluted |
406 |
407 |
407 |
408 |
|
407 |
407 |
408 |
|
|
|
|
|
|
|
|
|
EBITDA |
98 |
105 |
89 |
98 |
|
(13) |
12 |
51 |
Adjusted EBITDA |
123 |
127 |
112 |
130 |
|
12 |
41 |
76 |
Non-GAAP net income |
118 |
127 |
120 |
133 |
|
42 |
61 |
88 |
Non-GAAP net income per share - diluted |
0.29 |
0.31 |
0.30 |
0.33 |
|
0.10 |
0.15 |
0.22 |
| _____________________ | ||||||||
1 References to “commercial information and marketplace businesses” refer to our consolidated financial position and results excluding the impact of our Residential brands, which are Homes.com and OnTheMarket, plc. |
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2024 Outlook
“This quarter, we delivered strong revenue growth and adjusted EBITDA growth well ahead of our guidance,” 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 October 22, 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 third quarter 2024 results and the Company’s outlook at 5:00 PM ET on Tuesday, October 22, 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 |
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(in millions, except per share data) |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Revenues |
|
$ |
692.6 |
|
|
$ |
624.7 |
|
$ |
2,026.8 |
|
|
$ |
1,814.9 |
Cost of revenues |
|
|
140.6 |
|
|
|
123.7 |
|
|
417.6 |
|
|
|
355.2 |
Gross profit |
|
|
552.0 |
|
|
|
501.0 |
|
|
1,609.2 |
|
|
|
1,459.7 |
|
|
|
|
|
|
|
|
|
||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||
Selling and marketing (excluding customer base amortization) |
|
|
331.2 |
|
|
|
266.9 |
|
|
1,055.7 |
|
|
|
743.2 |
Software development |
|
|
81.0 |
|
|
|
67.9 |
|
|
243.0 |
|
|
|
197.8 |
General and administrative |
|
|
105.8 |
|
|
|
94.4 |
|
|
314.3 |
|
|
|
274.4 |
Customer base amortization |
|
|
10.3 |
|
|
|
10.2 |
|
|
31.5 |
|
|
|
31.3 |
|
|
|
528.3 |
|
|
|
439.4 |
|
|
1,644.5 |
|
|
|
1,246.7 |
(Loss) income from operations |
|
|
23.7 |
|
|
|
61.6 |
|
|
(35.3 |
) |
|
|
213.0 |
Interest income, net |
|
|
55.6 |
|
|
|
58.4 |
|
|
165.3 |
|
|
|
153.9 |
Other (expense) income, net |
|
|
(1.6 |
) |
|
|
0.5 |
|
|
(4.9 |
) |
|
|
1.6 |
Income before income taxes |
|
|
77.7 |
|
|
|
120.5 |
|
|
125.1 |
|
|
|
368.5 |
Income tax expense |
|
|
24.7 |
|
|
|
29.9 |
|
|
46.2 |
|
|
|
90.3 |
Net income |
|
$ |
53.0 |
|
|
$ |
90.6 |
|
$ |
78.9 |
|
|
$ |
278.2 |
|
|
|
|
|
|
|
|
|
||||||
Net income per share - basic |
|
$ |
0.13 |
|
|
$ |
0.22 |
|
$ |
0.19 |
|
|
$ |
0.69 |
Net income per share - diluted |
|
$ |
0.13 |
|
|
$ |
0.22 |
|
$ |
0.19 |
|
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
||||||
Weighted-average outstanding shares - basic |
|
|
406.8 |
|
|
|
405.6 |
|
|
406.2 |
|
|
|
405.2 |
Weighted-average outstanding shares - diluted |
|
|
408.0 |
|
|
|
407.2 |
|
|
407.6 |
|
|
|
406.7 |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
CoStar Group, Inc. |
||||||||||||||||
Reconciliation of Non-GAAP Financial Measures - Unaudited |
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(in millions, except per share data) |
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|
||||||||||||||||
Reconciliation of Net Income to Non-GAAP Net Income |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
|
$ |
53.0 |
|
|
$ |
90.6 |
|
|
$ |
78.9 |
|
|
$ |
278.2 |
|
Income tax expense |
|
|
24.7 |
|
|
|
29.9 |
|
|
|
46.2 |
|
|
|
90.3 |
|
Income before income taxes |
|
|
77.7 |
|
|
|
120.5 |
|
|
|
125.1 |
|
|
|
368.5 |
|
Amortization of acquired intangible assets |
|
|
16.5 |
|
|
|
18.7 |
|
|
|
54.4 |
|
|
|
54.3 |
|
Stock-based compensation expense |
|
|
21.8 |
|
|
|
21.9 |
|
|
|
67.3 |
|
|
|
63.8 |
|
Acquisition and integration related costs |
|
|
4.4 |
|
|
|
0.8 |
|
|
|
12.7 |
|
|
|
2.3 |
|
Restructuring and related costs |
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.2 |
|
|
|
3.9 |
|
Settlements and impairments |
|
|
(1.3 |
) |
|
|
— |
|
|
|
(1.3 |
) |
|
|
(0.1 |
) |
Non-GAAP income before income taxes |
|
|
119.3 |
|
|
|
162.4 |
|
|
|
258.4 |
|
|
|
492.7 |
|
Assumed rate for income tax expense(1) |
|
|
26.0 |
% |
|
|
26.0 |
% |
|
|
26.0 |
% |
|
|
26.0 |
% |
Assumed provision for income tax expense |
|
|
(31.0 |
) |
|
|
(42.2 |
) |
|
|
(67.2 |
) |
|
|
(128.1 |
) |
Non-GAAP net income |
|
$ |
88.3 |
|
|
$ |
120.2 |
|
|
$ |
191.2 |
|
|
$ |
364.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - diluted |
|
$ |
0.13 |
|
|
$ |
0.22 |
|
|
$ |
0.19 |
|
|
$ |
0.68 |
|
Non-GAAP net income per share - diluted |
|
$ |
0.22 |
|
|
$ |
0.30 |
|
|
$ |
0.47 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average outstanding shares - basic |
|
|
406.8 |
|
|
|
405.6 |
|
|
|
406.2 |
|
|
|
405.2 |
|
Weighted average outstanding shares - diluted |
|
|
408.0 |
|
|
|
407.2 |
|
|
|
407.6 |
|
|
|
406.7 |
|
__________________________ |
|
|
|
|
|
|
|
|
||||||||
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period. |
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|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
|
$ |
53.0 |
|
|
$ |
90.6 |
|
|
$ |
78.9 |
|
|
$ |
278.2 |
|
Amortization of acquired intangible assets in cost of revenues |
|
|
6.2 |
|
|
|
8.4 |
|
|
|
22.9 |
|
|
|
23.0 |
|
Amortization of acquired intangible assets in operating expenses |
|
|
10.3 |
|
|
|
10.3 |
|
|
|
31.5 |
|
|
|
31.3 |
|
Depreciation and other amortization |
|
|
10.6 |
|
|
|
8.4 |
|
|
|
31.0 |
|
|
|
24.5 |
|
Interest income, net |
|
|
(55.6 |
) |
|
|
(58.4 |
) |
|
|
(165.3 |
) |
|
|
(153.9 |
) |
Other expense (income), net1 |
|
|
1.6 |
|
|
|
(0.5 |
) |
|
|
4.9 |
|
|
|
(1.6 |
) |
Income tax expense |
|
|
24.7 |
|
|
|
29.9 |
|
|
|
46.2 |
|
|
|
90.3 |
|
EBITDA |
|
$ |
50.8 |
|
|
$ |
88.7 |
|
|
$ |
50.1 |
|
|
$ |
291.8 |
|
Stock-based compensation expense |
|
|
21.8 |
|
|
|
21.9 |
|
|
|
67.3 |
|
|
|
63.8 |
|
Acquisition and integration related costs |
|
|
4.4 |
|
|
|
0.8 |
|
|
|
12.7 |
|
|
|
2.3 |
|
Restructuring and related costs |
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.2 |
|
|
|
3.9 |
|
Settlements and impairments |
|
|
(1.3 |
) |
|
|
— |
|
|
|
(1.3 |
) |
|
|
(0.1 |
) |
Adjusted EBITDA |
|
$ |
75.9 |
|
|
$ |
111.9 |
|
|
$ |
129.0 |
|
|
$ |
361.7 |
|
__________________________ |
|
|
|
|
|
|
|
|
||||||||
1 Includes |
||||||||||||||||
CoStar Group, Inc. |
|||||||
Condensed Consolidated Balance Sheets - Unaudited |
|||||||
(in millions) |
|||||||
|
|
|
|
||||
|
September 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
4,937.6 |
|
|
$ |
5,215.9 |
|
Accounts receivable |
|
202.4 |
|
|
|
213.2 |
|
Less: Allowance for credit losses |
|
(23.6 |
) |
|
|
(23.2 |
) |
Accounts receivable, net |
|
178.8 |
|
|
|
190.0 |
|
Prepaid expenses and other current assets |
|
78.7 |
|
|
|
70.2 |
|
Total current assets |
|
5,195.1 |
|
|
|
5,476.1 |
|
|
|
|
|
||||
Deferred income taxes, net |
|
4.3 |
|
|
|
4.3 |
|
Property and equipment, net |
|
937.8 |
|
|
|
472.2 |
|
Lease right-of-use assets |
|
79.2 |
|
|
|
79.8 |
|
Goodwill |
|
2,396.6 |
|
|
|
2,386.2 |
|
Intangible assets, net |
|
324.7 |
|
|
|
313.7 |
|
Deferred commission costs, net |
|
173.0 |
|
|
|
167.7 |
|
Deposits and other assets |
|
26.0 |
|
|
|
17.7 |
|
Income tax receivable |
|
2.0 |
|
|
|
2.0 |
|
Total assets |
$ |
9,138.7 |
|
|
$ |
8,919.7 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
84.4 |
|
|
$ |
23.1 |
|
Accrued wages and commissions |
|
105.5 |
|
|
|
117.8 |
|
Accrued expenses and other current liabilities |
|
188.1 |
|
|
|
163.0 |
|
Income taxes payable |
|
8.9 |
|
|
|
7.7 |
|
Lease liabilities |
|
38.9 |
|
|
|
40.0 |
|
Deferred revenue |
|
113.6 |
|
|
|
104.2 |
|
Total current liabilities |
|
539.4 |
|
|
|
455.8 |
|
|
|
|
|
||||
Long-term debt, net |
|
991.5 |
|
|
|
990.5 |
|
Deferred income taxes, net |
|
12.8 |
|
|
|
36.7 |
|
Income taxes payable |
|
23.9 |
|
|
|
18.2 |
|
Lease and other long-term liabilities |
|
80.0 |
|
|
|
79.9 |
|
Total liabilities |
$ |
1,647.6 |
|
|
$ |
1,581.1 |
|
|
|
|
|
||||
Total stockholders' equity |
|
7,491.1 |
|
|
|
7,338.6 |
|
Total liabilities and stockholders' equity |
$ |
9,138.7 |
|
|
$ |
8,919.7 |
|
CoStar Group, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows - Unaudited |
|||||||
(in millions) |
|||||||
|
|
||||||
|
Nine Months Ended
|
||||||
|
2024 |
|
2023 |
||||
Operating activities: |
|
|
|
||||
Net income |
$ |
78.9 |
|
|
$ |
278.2 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
107.6 |
|
|
|
78.8 |
|
Amortization of deferred commissions costs |
|
86.1 |
|
|
|
69.8 |
|
Amortization of Senior Notes discount and issuance costs |
|
2.3 |
|
|
|
1.8 |
|
Non-cash lease expense |
|
25.1 |
|
|
|
22.1 |
|
Stock-based compensation expense |
|
67.3 |
|
|
|
63.8 |
|
Deferred income taxes, net |
|
(15.4 |
) |
|
|
(13.0 |
) |
Credit loss expense |
|
25.8 |
|
|
|
25.7 |
|
Other operating activities, net |
|
(0.6 |
) |
|
|
0.3 |
|
|
|
|
|
||||
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable |
|
(13.7 |
) |
|
|
(64.6 |
) |
Prepaid expenses and other current assets |
|
(8.3 |
) |
|
|
(20.7 |
) |
Deferred commissions |
|
(91.7 |
) |
|
|
(93.1 |
) |
Accounts payable and other liabilities |
|
57.9 |
|
|
|
21.1 |
|
Lease liabilities |
|
(29.9 |
) |
|
|
(26.8 |
) |
Income taxes payable, net |
|
(1.7 |
) |
|
|
4.4 |
|
Deferred revenue |
|
8.2 |
|
|
|
(6.1 |
) |
Other assets |
|
0.1 |
|
|
|
(0.7 |
) |
Net cash provided by operating activities |
|
298.0 |
|
|
|
341.0 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
| Proceeds from sale of property and equipment and other assets | 1.4 |
— |
|||||
Purchases of property, equipment, and other assets for new campuses |
|
(509.6 |
) |
|
|
(61.8 |
) |
Purchases of property, equipment, and other assets |
|
(49.5 |
) |
|
|
(14.2 |
) |
| Cash paid for acquisitions, net of cash acquired | (5.1 |
) | — |
||||
Net cash used in investing activities |
|
(562.8 |
) |
|
|
(76.0 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Repurchase of restricted stock to satisfy tax withholding obligations |
|
(28.7 |
) |
|
|
(23.4 |
) |
Proceeds from exercise of stock options and employee stock purchase plan |
|
21.7 |
|
|
|
20.4 |
|
Principal repayments of finance lease obligations |
|
(3.4 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(13.8 |
) |
|
|
(3.0 |
) |
|
|
|
|
||||
Effect of foreign currency exchange rates on cash and cash equivalents |
|
0.3 |
|
|
|
(0.1 |
) |
Net (decrease) increase in cash and cash equivalents |
|
(278.3 |
) |
|
|
261.9 |
|
Cash and cash equivalents at the beginning of period |
|
5,215.9 |
|
|
|
4,968.0 |
|
Cash and cash equivalents at the end of period |
$ |
4,937.6 |
$ |
5,229.9 |
|||
CoStar Group, Inc. |
|||||||||||||||||
Disaggregated Revenues - Unaudited |
|||||||||||||||||
(in millions) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended September 30, |
||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||
|
|
|
International |
|
Total |
|
|
|
International |
|
Total |
||||||
CoStar |
$ |
240.8 |
|
$ |
16.1 |
|
$ |
256.9 |
|
$ |
223.4 |
|
$ |
10.0 |
|
$ |
233.4 |
Information Services |
|
28.2 |
|
|
4.8 |
|
|
33.0 |
|
|
35.2 |
|
|
9.4 |
|
|
44.6 |
Multifamily |
|
271.8 |
|
|
— |
|
|
271.8 |
|
|
235.3 |
|
|
— |
|
|
235.3 |
LoopNet |
|
68.1 |
|
|
2.8 |
|
|
70.9 |
|
|
65.0 |
|
|
2.5 |
|
|
67.5 |
Residential |
|
17.0 |
|
|
10.7 |
|
|
27.7 |
|
|
10.3 |
|
|
— |
|
|
10.3 |
Other Marketplaces |
|
32.3 |
|
|
— |
|
|
32.3 |
|
|
33.6 |
|
|
— |
|
|
33.6 |
Total revenues |
$ |
658.2 |
|
$ |
34.4 |
|
$ |
692.6 |
|
$ |
602.8 |
|
$ |
21.9 |
|
$ |
624.7 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
||||||||||||||||
|
Nine Months Ended September 30, |
||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||
|
|
|
International |
|
Total |
|
|
|
International |
|
Total |
||||||
CoStar |
$ |
713.6 |
|
$ |
46.6 |
|
$ |
760.2 |
|
$ |
658.7 |
|
$ |
28.8 |
|
$ |
687.5 |
Information Services |
|
83.5 |
|
|
15.9 |
|
|
99.4 |
|
|
99.5 |
|
|
28.7 |
|
|
128.2 |
Multifamily |
|
790.8 |
|
|
— |
|
|
790.8 |
|
|
670.3 |
|
|
— |
|
|
670.3 |
LoopNet |
|
201.7 |
|
|
8.1 |
|
|
209.8 |
|
|
189.5 |
|
|
6.8 |
|
|
196.3 |
Residential |
|
41.6 |
|
|
30.9 |
|
|
72.5 |
|
|
36.2 |
|
|
— |
|
|
36.2 |
Other Marketplaces |
|
94.1 |
|
|
— |
|
|
94.1 |
|
|
96.4 |
|
|
— |
|
|
96.4 |
Total revenues |
$ |
1,925.3 |
|
$ |
101.5 |
|
$ |
2,026.8 |
|
$ |
1,750.6 |
|
$ |
64.3 |
|
$ |
1,814.9 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
CoStar Group, Inc. |
|||||||||||||||
Results of Segments - Unaudited |
|||||||||||||||
(in millions) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||
EBITDA |
|
|
|
|
|
|
|
|
|||||||
|
|
$ |
63.5 |
|
|
$ |
88.9 |
|
|
$ |
97.4 |
|
|
$ |
290.2 |
International |
|
|
(12.7 |
) |
|
|
(0.2 |
) |
|
|
(47.3 |
) |
|
|
1.6 |
Total EBITDA |
|
$ |
50.8 |
|
|
$ |
88.7 |
|
|
$ |
50.1 |
|
|
$ |
291.8 |
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 |
Q3 |
Net income |
|
|
|
|
|
|
|
|
Income tax expense |
29.2 |
31.1 |
29.9 |
36.3 |
|
4.8 |
16.7 |
24.7 |
Income before income taxes |
116.4 |
131.7 |
120.5 |
132.7 |
|
11.5 |
35.9 |
77.7 |
Amortization of acquired intangible assets |
17.7 |
18.0 |
18.7 |
19.3 |
|
19.8 |
18.1 |
16.5 |
Stock-based compensation expense |
20.0 |
21.8 |
21.9 |
21.2 |
|
22.8 |
22.7 |
21.8 |
Acquisition and integration related costs |
1.7 |
(0.2) |
0.8 |
10.7 |
|
2.3 |
6.0 |
4.4 |
Restructuring and related costs |
3.4 |
(0.1) |
0.5 |
0.2 |
|
— |
— |
0.2 |
Settlements and impairments |
(0.1) |
— |
— |
— |
|
— |
— |
(1.3) |
Other income, net |
— |
— |
— |
(3.8) |
|
— |
— |
— |
Non-GAAP income before income taxes(1) |
159.1 |
171.2 |
162.4 |
180.3 |
|
56.4 |
82.7 |
119.3 |
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) |
(31.0) |
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 |
406.8 |
Weighted average outstanding shares - diluted |
406.2 |
406.8 |
407.2 |
407.5 |
|
407.3 |
407.4 |
408.0 |
__________________________ |
|
|
|
|
|
|
|
|
(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 |
Q3 |
Net income |
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets |
17.7 |
18.0 |
18.7 |
19.3 |
|
19.8 |
18.1 |
16.5 |
Depreciation and other amortization |
7.9 |
8.1 |
8.4 |
9.4 |
|
10.3 |
10.1 |
10.6 |
Interest income, net |
(43.5) |
(51.9) |
(58.4) |
(59.7) |
|
(56.2) |
(53.5) |
(55.6) |
Other (income) expense, net(1) |
(0.6) |
(0.6) |
(0.5) |
(3.7) |
|
1.9 |
1.5 |
1.6 |
Income tax expense |
29.2 |
31.1 |
29.9 |
36.3 |
|
4.8 |
16.7 |
24.7 |
EBITDA(2) |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
20.0 |
21.8 |
21.9 |
21.2 |
|
22.8 |
22.7 |
21.8 |
Acquisition and integration related costs |
1.7 |
(0.2) |
0.8 |
10.7 |
|
2.3 |
6.0 |
4.4 |
Restructuring and related costs |
3.4 |
(0.1) |
0.5 |
0.2 |
|
— |
— |
0.2 |
Settlements and impairments |
(0.1) |
— |
— |
— |
|
— |
— |
(1.3) |
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 December 31, 2024 |
|
December 31, 2024 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
43 |
|
|
$ |
49 |
|
|
$ |
122 |
|
|
$ |
128 |
|
Income tax expense |
|
17 |
|
|
|
21 |
|
|
|
63 |
|
|
|
67 |
|
Income before income taxes |
|
60 |
|
|
|
70 |
|
|
|
185 |
|
|
|
195 |
|
Amortization of acquired intangible assets |
|
17 |
|
|
|
17 |
|
|
|
71 |
|
|
|
71 |
|
Stock-based compensation expense |
|
26 |
|
|
|
26 |
|
|
|
93 |
|
|
|
93 |
|
Acquisition and integration related costs |
|
11 |
|
|
|
11 |
|
|
|
24 |
|
|
|
24 |
|
Settlements and impairments |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Non-GAAP income before income taxes |
|
114 |
|
|
|
124 |
|
|
|
372 |
|
|
|
382 |
|
Assumed rate for income tax expense(1) |
|
26 |
% |
|
|
26 |
% |
|
|
26 |
% |
|
|
26 |
% |
Assumed provision for income tax expense |
|
(30 |
) |
|
|
(32 |
) |
|
|
(97 |
) |
|
|
(99 |
) |
Non-GAAP net income |
|
84 |
|
|
|
92 |
|
|
|
275 |
|
|
|
283 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - diluted |
$ |
0.11 |
|
|
$ |
0.12 |
|
|
$ |
0.30 |
|
|
$ |
0.31 |
|
Non-GAAP net income per share - diluted |
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.67 |
|
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average outstanding shares - diluted |
|
408.3 |
|
|
|
408.3 |
|
|
|
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 December 31, 2024 |
|
December 31, 2024 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
Net income |
$ |
43 |
|
|
$ |
49 |
|
|
$ |
122 |
|
|
$ |
128 |
|
Amortization of acquired intangible assets |
|
17 |
|
|
|
17 |
|
|
|
71 |
|
|
|
71 |
|
Depreciation and other amortization |
|
11 |
|
|
|
11 |
|
|
|
42 |
|
|
|
42 |
|
Interest income, net |
|
(51 |
) |
|
|
(51 |
) |
|
|
(216 |
) |
|
|
(216 |
) |
Other (income) expense, net |
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
7 |
|
Income tax expense |
|
17 |
|
|
|
21 |
|
|
|
63 |
|
|
|
67 |
|
Stock-based compensation expense |
|
26 |
|
|
|
26 |
|
|
|
93 |
|
|
|
93 |
|
Settlements and impairments |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Acquisition and integration related costs |
|
11 |
|
|
|
11 |
|
|
|
24 |
|
|
|
24 |
|
Adjusted EBITDA |
$ |
76 |
|
|
$ |
86 |
|
|
$ |
205 |
|
|
$ |
215 |
|
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 thirteen million average 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 fourth quarter and full year 2024 will not be as stated in this press release; the risk that net income for the fourth quarter and full year 2024 will not be as stated in this press release; the risk that EBITDA for the fourth quarter and full year 2024 will not be as stated in this press release; the risk that adjusted EBITDA for the fourth 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 fourth 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 periods ended March 31, 2024 and June 30, 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/20241022146746/en/
Investor Relations:
Rich Simonelli
Head of Investor Relations
CoStar Group
(973) 896-8184
getrich@costar.com
News Media:
Matthew Blocher
Vice President Corporate Marketing & Communications
CoStar Group
(202) 346-6775
mblocher@costar.com
Source: CoStar Group
FAQ
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