WASHINGTON--(BUSINESS WIRE)--CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, and analytics in the commercial and residential property markets, will announce financial results for the fourth quarter and full year 2023 following the market close on Tuesday, February 20, 2024. Management will conduct a conference call to discuss the fourth quarter and full year results, as well as the Company’s outlook at 5:00 PM EST that same day. A live audio webcast of ...

WASHINGTON--(BUSINESS WIRE)--Andy Florance, Founder and Chief Executive Officer of CoStar Group (NASDAQ: CGSP), a leading provider of online real estate marketplaces, information and analytics in the commercial and residential property markets, today was honored as one of Inman’s 2024 Power Players. The index, in its second year as part of Inman’s expanded awards program, recognizes real estate’s most powerful and influential leaders who represent the pinnacle of industry success. Inman’s 2024 Power Play ...

WASHINGTON--(BUSINESS WIRE)--The Swanepoel Power 200, the definitive ranking of the residential real estate brokerage industry’s executives and leaders, has named Andy Florance, Founder and Chief Executive Officer of CoStar Group (NASDAQ: CSGP), as one of the nation’s ten most powerful and influential people in real estate for 2023. The recognition of Andy Florance on the SP 200 list follows another year of major growth and achievement for CoStar Group, especially for the company’s residential real estat ...

Revenue Growth and Performance - CoStar's revenue growth rate for the nine months ended September 30, 2023, slowed compared to the same period in 2022, with expectations for further slowdown in 2023 due to reduced customer upgrades and lower sales levels to brokers [121]. - Information Services' revenue growth rate for the nine months ended September 30, 2023, was consistent with the previous year, but is expected to slow in 2023 due to lower price adjustments [122]. - Multifamily revenue growth rate accelerated for the nine months ended September 30, 2023, driven by higher sales volumes and increased pricing on renewals, with expectations for continued acceleration in 2023 [123]. - LoopNet's revenue growth rate accelerated for the nine months ended September 30, 2023, attributed to an increase in the average price per listing, with expectations for continued acceleration in 2023 [124]. - Residential revenues decreased for the nine months ended September 30, 2023, due to the discontinuation of certain products, with expectations for further decline in 2023 [126]. - Other Marketplaces' revenues decreased for the nine months ended September 30, 2023, primarily due to lower Ten-X transaction revenue, with expectations for continued decline in 2023 [127]. - Total revenues increased by $68 million, or 12%, to $624.7 million for the three months ended September 30, 2023, compared to the same period in 2022 [146]. - Multifamily revenues rose by $46 million, or 24%, driven by higher sales volume and increased pricing on renewals [147]. - CoStar revenues increased by $21 million, or 10%, due to annual price increases and customer upgrades on contract renewals [147]. - LoopNet revenues grew by $9 million, or 15%, attributed to an increase in the average price for listings [147]. - Information Services revenues rose by $4 million, or 9%, primarily from a $3 million increase in STR sales [147]. - Total revenues increased by $206 million, or 13%, to $1.8 billion, driven by significant growth in Multifamily revenues, which rose by $123 million, or 22% [158]. Expenses and Profitability - Operating expenses increased by $76.2 million, or 21%, primarily due to a $81.5 million increase in selling and marketing expenses [146]. - Gross profit increased by $155 million, or 12%, to $1,460 million, while the gross profit margin decreased from 81% to 80% [160]. - Selling and marketing expenses rose by $232 million, or 46%, to $743 million, representing 41% of total revenues [160]. - North America EBITDA decreased by $132 million, or 31%, to $290 million, primarily due to rising personnel and marketing costs [168]. - Net income for the three months ended September 30, 2023, was $90.6 million, a 25% increase from $72.3 million in the same period in 2022 [146]. Cash and Investments - Cash and cash equivalents stood at $5.2 billion as of September 30, 2023, sufficient to meet cash requirements for the next 12 months [169]. - Cash and cash equivalents increased to approximately $5.2 billion as of September 30, 2023, up from $5.0 billion at the end of 2022, primarily due to $341 million in cash provided by operating activities [176]. - Net cash provided by operating activities for the nine months ended September 30, 2023 was $341 million, an increase of $47 million compared to the same period in 2022 [177]. - The company plans to invest in residential marketplaces and has made an offer to purchase OnTheMarket, a leading U.K. residential property portal, to enhance its offerings [132]. - The company plans to invest in expanding its LoopNet marketplace and enhancing CoStar's benchmarking and analytics capabilities [31]. - The company plans to spend approximately $170 million on construction in 2023, funded by cash on hand [173]. - Purchase obligations totaled $270 million, with $100 million payable within 12 months, primarily related to web hosting and software subscriptions [170]. Challenges and Risks - Economic conditions, including elevated office vacancy rates and increased interest rates, have negatively impacted the commercial real estate market, leading to reduced transaction volumes and increased credit loss expenses [134]. - The company faces challenges in attracting and retaining new clients, impacting overall performance [182]. - There is a significant risk related to the inability to successfully develop and introduce new information and analytics services [182]. - Competition poses a threat to the company's ability to attract advertisers and maintain market share [182]. - The company is experiencing downward pressure on operating margins due to internal and external investments [182]. - There are concerns regarding the ability to generate increased revenues from geographic expansion plans [182]. - The company is at risk from potential legal liabilities related to data collection and distribution [184]. - Foreign currency fluctuations and international operations present additional risks to the company's financial stability [184]. - The company is facing challenges in maintaining relationships with third-party listing providers, which could affect revenue [184]. - There is uncertainty surrounding the impact of the COVID-19 pandemic on the global economy and the real estate industry [182]. - The company may overstate the actual number of unique visitors to its platforms, affecting comparability with competitors [184]. Tax and Future Outlook - Income tax expense increased by $8 million, or 10%, to $90 million, with an effective tax rate of 24% [163]. - Future capital requirements will depend on operating results, expansion efforts, and acquisition activities [174]. - The company expects to continue making acquisitions as part of its growth strategy [174]. - The company announced a recommended cash offer to acquire OnTheMarket for approximately £99 million (about $120 million), expected to close in Q4 2023 [175]. - The total cost of the campus expansion in Richmond, Virginia is expected to be between $450 million and $600 million from 2023 to 2032, with $73 million already paid and an additional $488 million committed [172].

CoStar Group, Inc. (NASDAQ:CSGP) Q2 2023 Earnings Conference Call July 25, 2023 5:00 PM ET Company Participants Cyndi Eakin - Head of IR Andy Florance - Founder & CEO Scott Wheeler - CFO Conference Call Participants George Tong - Goldman Sachs Heather Balsky - Bank of America Merrill Lynch Peter Christiansen - Citi Ryan Tomasello - KBW Jeff Meuler - Baird Alexei Gogolev - JPMorgan Stephanie Moore - Jefferies Operator Good afternoon. My name is JP and I will be your conference operator today. At this time, I ...

PART I FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents CoStar Group's unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023, covering operations, balance sheets, cash flows, and accounting policies [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's H1 2023 financial performance, showing revenue growth, operating income decline, and net income increase Consolidated Statements of Operations (Six Months Ended June 30) | Financial Metric | 2023 (in thousands) | 2022 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenues** | $1,190,272 | $1,052,133 | 13% | | Gross Profit | $958,714 | $855,683 | 12% | | Selling and marketing | $476,260 | $325,341 | 46% | | **Income from operations** | $151,367 | $238,458 | -37% | | Interest income (expense), net | $95,459 | $(11,117) | NM | | **Net income** | $187,651 | $172,791 | 9% | | Net income per share - diluted | $0.46 | $0.44 | 4.5% | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets increased to **$8.69 billion**, driven by higher cash, with total liabilities rising to **$1.59 billion** and equity growing to **$7.10 billion** Balance Sheet Summary | Account | June 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $5,205,295 | $4,967,970 | | Total current assets | $5,444,884 | $5,185,867 | | Goodwill | $2,321,205 | $2,314,759 | | **Total assets** | **$8,691,674** | **$8,402,470** | | Total current liabilities | $442,775 | $372,615 | | Long-term debt, net | $989,858 | $989,210 | | **Total liabilities** | **$1,590,602** | **$1,532,349** | | **Total stockholders' equity** | **$7,101,072** | **$6,870,121** | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$298.4 million** in H1 2023, with cash and cash equivalents rising by **$237.3 million** overall Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $298,380 | $212,099 | | Net cash used in investing activities | $(54,422) | $(57,707) | | Net cash used in financing activities | $(6,270) | $(14,570) | | **Net increase in cash and cash equivalents** | **$237,325** | **$136,990** | [Notes to Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes explain accounting policies and financial data, including revenue recognition, acquisitions, segment reporting, long-term debt, and goodwill - Subscription-based contracts are the primary revenue source, accounting for approximately **95%** of total revenues for the first six months of 2023[8](index=8&type=chunk) - The company operates in two segments: North America (U.S. and Canada) and International (Europe, Asia-Pacific, Latin America)[2](index=2&type=chunk) - Goodwill is tested for impairment annually or more frequently if indicators exist, with no impairments recognized during H1 2023[28](index=28&type=chunk)[233](index=233&type=chunk) Disaggregated Revenue by Service (Six Months Ended June 30, 2023) | Service | North America (in thousands) | International (in thousands) | Total (in thousands) | | :--- | :--- | :--- | :--- | | CoStar | $435,386 | $18,796 | $454,182 | | Information Services | $64,313 | $19,237 | $83,550 | | Multifamily | $434,988 | $0 | $434,988 | | LoopNet | $124,447 | $4,353 | $128,800 | | Residential | $25,861 | $0 | $25,861 | | Other Marketplaces | $62,891 | $0 | $62,891 | | **Total Revenues** | **$1,147,886** | **$42,386** | **$1,190,272** | Long-Term Debt (as of June 30, 2023) | Component | Amount (in thousands) | | :--- | :--- | | 2.800% Senior Notes due July 15, 2030 | $1,000,000 | | Senior Notes unamortized discount and issuance costs | $(10,142) | | **Long-term debt, net** | **$989,858** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses H1 2023 financial performance, noting revenue growth, operating income decline from marketing investments, and a strong **$5.2 billion** cash liquidity position [Overview and Services](index=36&type=section&id=Overview%20and%20Services) CoStar Group, a leading real estate information and marketplace provider, saw accelerated Multifamily revenue growth in H1 2023, while Residential revenue decreased - Multifamily (Apartments.com) revenue growth accelerated in H1 2023 due to higher sales volumes from increased pricing on renewals and more properties listed[79](index=79&type=chunk) - LoopNet revenue growth also accelerated due to an increase in the average price for listings[262](index=262&type=chunk) - Residential revenues decreased in H1 2023 due to the discontinuation of certain non-strategic products, a trend expected to continue for the full year[86](index=86&type=chunk)[81](index=81&type=chunk) [Development, Investments and Expansion](index=38&type=section&id=Development%2C%20Investments%20and%20Expansion) The company prioritizes significant investment in Homes.com, LoopNet expansion, and CoStar platform enhancements, expecting increased marketing costs and reduced operating income - Continuing to develop and invest heavily in the Homes.com residential marketplace, with plans to increase marketing investment to build website traffic[90](index=90&type=chunk) - Investing in LoopNet's sales capabilities and marketing to accelerate its revenue growth, including further brand expansion in Europe[267](index=267&type=chunk) - Enhancing the CoStar platform by adding analytics for commercial property investment funds and integrating STR benchmarking products[91](index=91&type=chunk)[268](index=268&type=chunk) [Results of Operations](index=45&type=section&id=Results%20of%20Operations) This section details H1 2023 operating results, with total revenues growing 13% to **$1.2 billion**, operating income falling 37% due to marketing, and net income increasing 9% Revenue by Service (Six Months Ended June 30) | Service | 2023 (in thousands) | 2022 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | CoStar | $454,182 | $405,215 | 12% | | Multifamily | $434,988 | $357,836 | 22% | | LoopNet | $128,800 | $110,744 | 16% | | Residential | $25,861 | $38,214 | -32% | | **Total Revenues** | **$1,190,272** | **$1,052,133** | **13%** | - Selling and marketing expenses for H1 2023 increased by **$151 million** (46%), primarily due to a **$100 million** increase in marketing for residential brands and a **$45 million** increase in personnel and events costs[111](index=111&type=chunk)[114](index=114&type=chunk)[295](index=295&type=chunk) - North America EBITDA decreased **32%** to **$201 million** in H1 2023, while International EBITDA decreased **55%** to **$2 million**, both impacted by higher personnel and marketing costs[119](index=119&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$5.2 billion** in cash and equivalents and **$298 million** net cash from operations, with future capital needs for campus expansion - Cash and cash equivalents stood at **$5.2 billion** as of June 30, 2023, an increase from **$5.0 billion** at the end of 2022[120](index=120&type=chunk)[128](index=128&type=chunk) - The company is expanding its Richmond, VA campus, with total expected cash expenditures of approximately **$170 million** for 2023, and the project is expected to be substantially completed in 2025[124](index=124&type=chunk)[126](index=126&type=chunk) - Net cash provided by operating activities increased by **$86 million** to **$298 million** for the first six months of 2023 compared to the same period in 2022[129](index=129&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency and interest rate changes, with 4% of H1 2023 revenues in foreign currencies and interest rate exposure from its **$5.2 billion** cash holdings - Approximately **4%** of H1 2023 revenues were foreign currency denominated; a 10% U.S. dollar strengthening would have increased revenues by about **$4.5 million**[317](index=317&type=chunk) - The company holds **$5.2 billion** in cash and cash equivalents, subject to interest rate risk that impacts interest income[304](index=304&type=chunk) - The company's **$1.0 billion** in Senior Notes are fixed-rate, and no amounts were outstanding under the **$750 million** variable-rate credit facility, minimizing current interest expense risk from rate changes[318](index=318&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[307](index=307&type=chunk) - No material changes were made to internal control over financial reporting during the most recent fiscal quarter[308](index=308&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in incidental litigation, but management does not expect any current lawsuit to materially affect its financial position or results - The company is not currently a party to any lawsuit or proceeding that is expected to have a material adverse effect on its financial position or results[310](index=310&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2022 Annual Report on Form 10-K - There have been no material changes to the risk factors as previously disclosed in the 2022 Form 10-K[323](index=323&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 9,834 common shares in Q2 2023 from employees for tax withholding on restricted stock vesting, not a public buyback Issuer Purchases of Equity Securities (Q2 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1-30, 2023 | 285 | $68.94 | | May 1-31, 2023 | 39 | $76.95 | | June 1-30, 2023 | 9,510 | $80.91 | | **Total** | **9,834** | **$80.55** |

CoStar Group, Inc. (NASDAQ:CSGP) Q1 2023 Earnings Conference Call April 25, 2023 5:00 PM ET Company Participants Cyndi Eakin - Head of Investor Relations Andy Florance - Founder & Chief Executive Officer Scott Wheeler - Chief Financial Officer Conference Call Participants George Tong - Goldman Sachs Peter Christiansen - Citi Stephen Sheldon - William Blair John Campbell - Stephens Ashish Sabadra - RBC Mayank Tandon - Needham Jeff Silber - BMO Heather Balsky - Bank of America Ryan Tomasello - KBW Operator Go ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Delaware 52-2091509 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) (202) 346-6500 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sect ...

CoStar Group, Inc. (NASDAQ:CSGP) Q4 2022 Earnings Conference Call February 21, 2023 5:00 PM ET Company Participants Cyndi Eakin - SVP, IR & Controller Andrew Florance - Founder, Director, President & CEO Scott Wheeler - CFO Conference Call Participants George Tong - Goldman Sachs Peter Christiansen - Citigroup Heather Balsky - Bank of America Stephen Sheldon - William Blair Ryan Tomasello - Stifel Jeffrey Meuler - Robert W. Baird John Campbell - Stephens Ashish Sabadra - RBC Capital Markets Jeffrey Silber - ...

Dividend Policy. We have never declared or paid any dividends on our common stock. We do not anticipate paying any dividends on our common stock during the foreseeable future, but intend to retain any earnings for future growth of our business. Overview The majority of our revenue is generated from service offerings that are distributed to our clients under subscription-based agreements that typically renew automatically and have a term of at least one year. We recognize subscription revenues on a straight- ...