For the quarter ended September 2024, CoStar Group (CSGP) reported revenue of $692.6 million, up 10.9% over the same period last year. EPS came in at $0.22, compared to $0.30 in the year-ago quarter. The reported revenue represents a surprise of -0.55% over the Zacks Consensus Estimate of $696.45 million. With the consensus EPS estimate being $0.16, the EPS surprise was +37.50%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...

CoStar Group (CSGP) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 37.50%. A quarter ago, it was expected that this commercial real estate information and marketing provider would post earnings of $0.09 per share when it actually produced earnings of $0.15, delivering a surprise of ...

[Executive Summary & Q3 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q3%20Highlights) CoStar Group achieved its 54th consecutive quarter of double-digit revenue growth in Q3 2024, alongside strong profit margins and significant visitor growth [Q3 2024 Financial Performance Overview](index=1&type=section&id=Q3%202024%20Financial%20Performance%20Overview) CoStar Group achieved its 54th consecutive quarter of double-digit revenue growth in Q3 2024, with revenue up 11% year-over-year Q3 2024 Financial Performance (Millions USD) | Metric | Q3 2024 (Millions USD) | YoY Change | QoQ Change (vs Q2 2024) | | :--------------- | :--------------------- | :--------- | :---------------------- | | Revenue | $693 | +11% | +2.2% | | Net Income | $53 | -41.5% | +176% | | Net Income/Diluted Share | $0.13 | -40.9% | +160% | | EBITDA | $51 | -42.9% | +320% | | Adjusted EBITDA | $76 | -32.1% | +86% | - Adjusted EBITDA exceeded the midpoint of the Company's guidance range by **54%** for Q3 2024[1](index=1&type=chunk) [CEO Commentary & Business Highlights](index=1&type=section&id=CEO%20Commentary%20%26%20Business%20Highlights) CEO Andy Florance emphasized sustained double-digit revenue growth from core businesses and significant marketing investments driving visitor growth for Homes.com and OnTheMarket - CoStar Group's two billion-dollar run rate businesses, Apartments.com and CoStar, continue to deliver double-digit revenue growth[2](index=2&type=chunk) - Commercial information and marketplace businesses achieved **43% profit margins** in Q3 2024[2](index=2&type=chunk) - Average monthly unique visitors increased **28% year-over-year to 163 million** in Q3 2024[2](index=2&type=chunk) - Homes.com network in the U.S. reached **130 million average monthly unique visitors**, with unaided awareness increasing to **33%** in September 2024 from **4%** in February 2024[2](index=2&type=chunk) - OnTheMarket (U.K.) saw year-over-year traffic grow by **212%**, unique visitors by **348%**, listing agents by **27%**, sales leads by **76%**, and total stock by **45%** within 10 months of acquisition[2](index=2&type=chunk) [Financial Results & Outlook](index=2&type=section&id=Financial%20Results%20%26%20Outlook) This section details CoStar Group's historical quarterly financial performance and updated 2024 financial guidance, reflecting strong Q3 results [Quarterly Financial Performance (Historical)](index=2&type=section&id=Quarterly%20Financial%20Performance%20%28Historical%29) This section provides a detailed quarterly breakdown of key financial metrics from Q1 2023 to Q3 2024, illustrating performance trends Year 2023-2024 Quarterly Results (Unaudited, in millions USD, except per share) | Metric (in millions USD, except per share) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Revenues | $584 | $606 | $625 | $640 | $656 | $678 | $693 | | 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 | | 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 | [2024 Financial Outlook](index=2&type=section&id=2024%20Financial%20Outlook) CoStar Group updated its full-year 2024 financial guidance and provided Q4 expectations, reflecting strong Q3 performance and an increased Adjusted EBITDA outlook 2024 Financial Outlook | Metric | Full Year 2024 Guidance | Q4 2024 Guidance | | :------------------------------------ | :---------------------- | :--------------- | | Revenue | $2.72B - $2.73B | $693M - $703M | | Revenue Growth (YoY at midpoint) | ~11% | ~9% | | Adjusted EBITDA | $205M - $215M | $76M - $86M | | Adjusted EBITDA Increase (vs previous guidance) | +5% (at midpoint) | N/A | | Non-GAAP Net Income per Diluted Share | $0.67 - $0.69 | $0.21 - $0.23 | | Assumed Non-GAAP Tax Rate | 26% | 26% | - The updated full-year Adjusted EBITDA guidance represents a **5% increase** at the midpoint from previous guidance[4](index=4&type=chunk) [Non-GAAP Measures & Operating Metrics](index=2&type=section&id=Non-GAAP%20Measures%20%26%20Operating%20Metrics) This section defines CoStar Group's key non-GAAP financial measures and operating metrics, clarifying their calculation and purpose [Non-GAAP Financial Measures Definitions](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines key non-GAAP financial measures, including EBITDA, Adjusted EBITDA, and Non-GAAP net income, explaining their derivation from GAAP - EBITDA is GAAP net income before interest, other income/expense, loss on debt extinguishment, income taxes, and depreciation/amortization[7](index=7&type=chunk) - Adjusted EBITDA further adjusts EBITDA for stock-based compensation, acquisition/integration costs, restructuring costs, and certain settlements/impairments[8](index=8&type=chunk) - Non-GAAP net income adjusts GAAP net income for various non-cash and non-recurring items, including stock-based compensation and amortization of acquired intangibles, and applies an assumed **26% tax rate**[8](index=8&type=chunk) - Non-GAAP net income per diluted share divides non-GAAP net income by diluted shares, including potentially dilutive securities even in GAAP net loss periods if they become anti-dilutive[9](index=9&type=chunk) [Operating Metrics Definitions](index=3&type=section&id=Operating%20Metrics%20Definitions) This section defines 'Net new bookings' as a key operating metric, clarifying its calculation and purpose - Net new bookings are calculated based on the annualized change in sales bookings from new, changed, or canceled subscription-based contracts[10](index=10&type=chunk) - Net new bookings information is not comparable to, nor a substitute for, revenue analysis[10](index=10&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents CoStar Group's condensed consolidated statements of operations, balance sheets, and cash flows for the reported periods [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) The condensed consolidated statements of operations detail the company's financial performance for the three and nine months ended September 30, 2024 and 2023 Condensed Consolidated Statements of Operations (Unaudited, in millions USD, except per share) | Metric (in millions USD, except per share) | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Revenues | $692.6 | $624.7 | $2,026.8 | $1,814.9 | | Gross profit | $552.0 | $501.0 | $1,609.2 | $1,459.7 | | (Loss) income from operations | $23.7 | $61.6 | $(35.3) | $213.0 | | Net income | $53.0 | $90.6 | $78.9 | $278.2 | | Net income per share - diluted | $0.13 | $0.22 | $0.19 | $0.68 | - Operating income significantly decreased year-over-year for both the three-month and nine-month periods, turning into a loss for the nine months ended September 30, 2024[12](index=12&type=chunk) [Balance Sheets](index=6&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets present CoStar Group's financial position as of September 30, 2024, compared to December 31, 2023 Condensed Consolidated Balance Sheets (Unaudited, in millions USD) | Metric (in millions USD) | Sep 30, 2024 | Dec 31, 2023 | | :------------------------------- | :----------- | :----------- | | Total current assets | $5,195.1 | $5,476.1 | | Total assets | $9,138.7 | $8,919.7 | | Total current liabilities | $539.4 | $455.8 | | Total liabilities | $1,647.6 | $1,581.1 | | Total stockholders' equity | $7,491.1 | $7,338.6 | - Cash and cash equivalents decreased from **$5,215.9 million** at Dec 31, 2023, to **$4,937.6 million** at Sep 30, 2024[15](index=15&type=chunk) - Property and equipment, net, significantly increased from **$472.2 million** to **$937.8 million**, indicating substantial capital investments[15](index=15&type=chunk) [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows detail cash generated and used by operating, investing, and financing activities for the nine months ended September 30, 2024 and 2023 Condensed Consolidated Statements of Cash Flows (Unaudited, in millions USD) | Metric (in millions USD) | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :------------------------------------ | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $298.0 | $341.0 | | Net cash used in investing activities | $(562.8) | $(76.0) | | Net cash used in financing activities | $(13.8) | $(3.0) | | Net (decrease) increase in cash and cash equivalents | $(278.3) | $261.9 | - A significant increase in cash used in investing activities, primarily due to purchases of property, equipment, and other assets for new campuses (**$509.6 million** in 2024 vs **$61.8 million** in 2023), led to a net decrease in cash and cash equivalents[16](index=16&type=chunk) [Non-GAAP Reconciliations](index=5&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP financial measures to their non-GAAP counterparts for various periods, including forward-looking guidance [Net Income to Non-GAAP Net Income](index=5&type=section&id=Net%20Income%20to%20Non-GAAP%20Net%20Income) This section reconciles GAAP net income to Non-GAAP net income for the three and nine months ended September 30, 2024 and 2023, detailing specific adjustments Reconciliation of Net Income to Non-GAAP Net Income (Unaudited, in millions USD) | Metric (in millions USD) | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income | $53.0 | $90.6 | $78.9 | $278.2 | | 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 | | Non-GAAP net income | $88.3 | $120.2 | $191.2 | $364.6 | [Net Income to EBITDA and Adjusted EBITDA](index=5&type=section&id=Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This reconciliation details adjustments from GAAP net income to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023 Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Unaudited, in millions USD) | Metric (in millions USD) | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income | $53.0 | $90.6 | $78.9 | $278.2 | | Depreciation and other amortization | 10.6 | 8.4 | 31.0 | 24.5 | | 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 | | Adjusted EBITDA | $75.9 | $111.9 | $129.0 | $361.7 | [Quarterly Non-GAAP Reconciliations](index=9&type=section&id=Quarterly%20Non-GAAP%20Reconciliations) This section provides detailed quarterly reconciliations of GAAP net income to Non-GAAP net income, EBITDA, and Adjusted EBITDA from Q1 2023 to Q3 2024 Quarterly Reconciliation of Net Income to Non-GAAP Net Income (Unaudited, in millions USD, except per share) | Metric (in millions USD, except per share) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Net income | $87.1 | $100.5 | $90.6 | $96.4 | $6.7 | $19.2 | $53.0 | | Non-GAAP net income | $117.7 | $126.7 | $120.2 | $133.4 | $41.7 | $61.2 | $88.3 | | Non-GAAP net income per share - diluted | $0.29 | $0.31 | $0.30 | $0.33 | $0.10 | $0.15 | $0.22 | Quarterly Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Unaudited, in millions USD) | Metric (in millions USD) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Net income | $87.1 | $100.5 | $90.6 | $96.4 | $6.7 | $19.2 | $53.0 | | EBITDA | $97.8 | $105.2 | $88.7 | $98.0 | $(12.7) | $12.1 | $50.8 | | Adjusted EBITDA | $122.9 | $126.8 | $111.9 | $130.1 | $12.4 | $40.8 | $75.9 | [Forward-Looking Guidance Reconciliations](index=10&type=section&id=Forward-Looking%20Guidance%20Reconciliations) This section reconciles forward-looking guidance for Q4 2024 and full-year 2024, converting projected GAAP net income to Non-GAAP net income and Adjusted EBITDA Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income (Unaudited, in millions USD, except per share) | Metric (in millions USD, except per share) | Q4 2024 Guidance (Low) | Q4 2024 Guidance (High) | Full Year 2024 Guidance (Low) | Full Year 2024 Guidance (High) | | :------------------------------------ | :--------------------- | :---------------------- | :---------------------------- | :----------------------------- | | Net income | $43 | $49 | $122 | N/A | | Non-GAAP net income | $84 | $92 | $275 | N/A | | Non-GAAP net income per share - diluted | $0.21 | $0.23 | $0.67 | $0.69 | Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA (Unaudited, in millions USD) | Metric (in millions USD) | Q4 2024 Guidance (Low) | Q4 2024 Guidance (High) | Full Year 2024 Guidance (Low) | Full Year 2024 Guidance (High) | | :------------------------------------ | :--------------------- | :---------------------- | :---------------------------- | :----------------------------- | | Net income | $43 | $49 | $122 | N/A | | Adjusted EBITDA | $76 | $86 | $205 | $215 | [Segment Performance](index=8&type=section&id=Segment%20Performance) This section analyzes CoStar Group's revenue and EBITDA performance disaggregated by business segment and geographical region [Disaggregated Revenues by Segment and Geography](index=8&type=section&id=Disaggregated%20Revenues%20by%20Segment%20and%20Geography) This section breaks down revenues by major business segments and geographical regions for the three and nine months ended September 30, 2024 and 2023 Disaggregated Revenues - Q3 2024 (Unaudited, in millions USD) | Segment | North America (Millions USD) | International (Millions USD) | Total (Millions USD) | | :------------------- | :--------------------------- | :--------------------------- | :------------------- | | CoStar | $240.8 | $16.1 | $256.9 | | Information Services | $28.2 | $4.8 | $33.0 | | Multifamily | $271.8 | — | $271.8 | | LoopNet | $68.1 | $2.8 | $70.9 | | Residential | $17.0 | $10.7 | $27.7 | | Other Marketplaces | $32.3 | — | $32.3 | | **Total revenues** | **$658.2** | **$34.4** | **$692.6** | Disaggregated Revenues - YTD Sep 30, 2024 (Unaudited, in millions USD) | Segment | North America (Millions USD) | International (Millions USD) | Total (Millions USD) | | :------------------- | :--------------------------- | :--------------------------- | :------------------- | | CoStar | $713.6 | $46.6 | $760.2 | | Information Services | $83.5 | $15.9 | $99.4 | | Multifamily | $790.8 | — | $790.8 | | LoopNet | $201.7 | $8.1 | $209.8 | | Residential | $41.6 | $30.9 | $72.5 | | Other Marketplaces | $94.1 | — | $94.1 | | **Total revenues** | **$1,925.3** | **$101.5** | **$2,026.8** | - Multifamily and CoStar segments are the largest revenue contributors, with Multifamily showing strong growth year-over-year[17](index=17&type=chunk)[18](index=18&type=chunk) - Residential revenue, including international operations, significantly increased from **$10.3 million** in Q3 2023 to **$27.7 million** in Q3 2024[17](index=17&type=chunk) [Segment EBITDA Results](index=8&type=section&id=Segment%20EBITDA%20Results) This section presents EBITDA results by North America and International segments for the three and nine months ended September 30, 2024 and 2023 Results of Segments - EBITDA (Unaudited, in millions USD) | Segment | 3 Months Ended Sep 30, 2024 (Millions USD) | 3 Months Ended Sep 30, 2023 (Millions USD) | 9 Months Ended Sep 30, 2024 (Millions USD) | 9 Months Ended Sep 30, 2023 (Millions USD) | | :------------ | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | | North America | $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** | - International segment EBITDA showed a significant loss in both the three-month and nine-month periods of 2024, contrasting with positive or near-zero results in 2023, indicating increased investment or operational costs in international markets[19](index=19&type=chunk) [Additional Information](index=11&type=section&id=Additional%20Information) This section provides background on CoStar Group, investor and media contacts, and a disclaimer regarding forward-looking statements [About CoStar Group](index=11&type=section&id=About%20CoStar%20Group) CoStar Group is a leading provider of online real estate marketplaces, information, and analytics, operating a global portfolio of brands - CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics[24](index=24&type=chunk) - Key brands include CoStar (commercial real estate), Apartments.com (multifamily rentals), LoopNet (commercial marketplace), STR (hospitality data), Ten-X (online auctions), Homes.com (residential marketplace), and OnTheMarket (UK residential portal)[24](index=24&type=chunk) - CoStar Group's websites attracted over **163 million average monthly unique visitors** in Q3 2024[24](index=24&type=chunk) [Investor & Media Contacts](index=11&type=section&id=Investor%20%26%20Media%20Contacts) Contact information for CoStar Group's Investor Relations and News Media departments is provided for inquiries - Investor Relations contact: Rich Simonelli, Head of Investor Relations, getrich@costar.com[24](index=24&type=chunk) - News Media contact: Matthew Blocher, VP Corporate Marketing & Communications, mblocher@costar.com[24](index=24&type=chunk) [Forward-Looking Statements](index=11&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, outlining inherent risks and advising reliance on SEC filings for more information - Statements in the release and conference call are 'forward-looking statements' subject to risks and uncertainties[25](index=25&type=chunk) - Actual results may differ materially due to factors such as acquisition integration, ability to sustain growth trends, and economic conditions affecting the real estate industry[25](index=25&type=chunk) - More information on potential factors is available in CoStar Group's SEC filings, including Form 10-K and 10-Q[25](index=25&type=chunk)

Some stocks are worth looking at even before their earnings are out in the market, a view contrary to the popular belief that whatever results will come of earnings are potentially already priced into the stock before the event. If this were the case, however, then stocks wouldn’t see such sharp swings when earnings announcements do come out, and investors should know there’s a science behind the move.CoStar Group TodayCSGPCoStar Group$77.36 -1.89 (-2.38%) 52-Week Range$67.35▼$100.38P/E Ratio145.97Price Tar ...

Led by International Business Machines (IBM) , several trending tech stocks are set to report their third quarter results on Tuesday, October 22. Here's a brief earnings preview for IBM and a look at two IT services stocks to watch as their Q3 reports approach. IBM's Q3 Expectations Expanding outside of its renowned computer hardware offerings, IBM's growth as a provider of cloud and data platforms has started to captivate investors' attention with its stock sitting on +40% gains this year. Currently landin ...

CoStar Group (CSGP) is slated to report its third-quarter 2024 earnings on Oct 22. The company expects third-quarter revenues between $692 million and $697 million, indicating growth of 11% year over year at the midpoint of the range. Earnings are expected to be between 15 and 16 cents per share. The Zacks Consensus Estimate for third-quarter earnings has been steady at 16 cents per share over the past 30 days, suggesting a 46.67% decline from the figure reported in the year-ago quarter. Stay up-to-date wit ...

Wall Street analysts expect CoStar Group (CSGP) to post quarterly earnings of $0.16 per share in its upcoming report, which indicates a year-over-year decline of 46.7%. Revenues are expected to be $696.45 million, up 11.5% from the year-ago quarter. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Ahead of a company's earni ...

Most investors inconsistently view quarterly earnings as a catalyst for stock prices upon the news release. They often find themselves trapped in the volatility of sudden moves and face the risk of large—or total, in the case of options—losses if the direction of the stock after the announcement goes the wrong way. There is a way to somewhat accurately predict where a stock could go after earnings announcements or to see where broader markets are betting these stocks could go on the event. Keeping the sayin ...

Most investors are under the impression that lower interest rates coming from the Fed might mean lower returns. While that might be true for some industries and companies, some in the technology sector seem to have a chance at another outperforming rally before the year is over. Now that the market is placing most – if not all – premium valuations on the sector, investors can count on the ease of bullish price action and momentum to carry a select group of stocks forward and above the rest. Of course, the b ...

Investors in CoStar Group, Inc. (CSGP) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $35.00 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...