[Part I - Financial Information](index=7&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) CoStar Group reported a 12% revenue increase to $677.8 million in Q2 2024, yet net income significantly declined to $19.2 million due to rising operating expenses, with total assets reaching $9.07 billion and operating cash flow decreasing Financial Performance Summary | Financial Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $677.8 M | $605.9 M | $1,334.2 M | $1,190.3 M | | **Gross Profit** | $542.0 M | $493.5 M | $1,057.2 M | $958.7 M | | **(Loss) Income from Operations** | $(16.1) M | $79.1 M | $(58.9) M | $151.4 M | | **Net Income** | $19.2 M | $100.5 M | $25.9 M | $187.7 M | | **Diluted EPS** | $0.05 | $0.25 | $0.06 | $0.46 | Balance Sheet Summary | Balance Sheet Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $5,207.2 M | $5,476.1 M | | **Total Assets** | $9,067.3 M | $8,919.7 M | | **Total Current Liabilities** | $561.7 M | $455.8 M | | **Total Liabilities** | $1,671.6 M | $1,581.1 M | | **Total Stockholders' Equity** | $7,395.7 M | $7,338.6 M | Cash Flow Summary | Cash Flow Activity (Six Months Ended) | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $197.7 M | $298.4 M | | **Net Cash used in Investing Activities** | $(477.6) M | $(54.4) M | | **Net Cash used in Financing Activities** | $(15.3) M | $(6.3) M | | **Net (Decrease) Increase in Cash** | $(296.4) M | $237.3 M | [Revenue Analysis](index=24&type=section&id=3.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) Subscription-based services accounted for 96% of Q2 2024 revenue, with North America contributing $643.8 million of the $677.8 million total, and Multifamily being the largest service segment at $264.2 million - Subscription-based contracts accounted for approximately **96% of total revenues** for the three and six months ended June 30, 2024[88](index=88&type=chunk) Revenue by Service (Q2 2024, in millions) | Revenue by Service (Q2 2024, in millions) | North America | International | Total | | :--- | :--- | :--- | :--- | | CoStar | $237.1 | $15.9 | $253.0 | | Information Services | $27.9 | $5.5 | $33.4 | | Multifamily | $264.2 | - | $264.2 | | LoopNet | $67.2 | $2.6 | $69.8 | | Residential | $16.2 | $10.0 | $26.2 | | Other Marketplaces | $31.2 | - | $31.2 | | **Total Revenues** | **$643.8** | **$34.0** | **$677.8** | [Acquisitions](index=28&type=section&id=5.%20ACQUISITIONS) The company expanded through the $120.4 million acquisition of OnTheMarket in December 2023 and plans to acquire Matterport for an estimated $940 million cash consideration, pending regulatory and shareholder approval - In December 2023, CoStar UK acquired OnTheMarket for total consideration of **£96.0 million ($120.4 million)**, adding **$62.8 million in goodwill** to the International operating segment[177](index=177&type=chunk)[152](index=152&type=chunk) - On April 21, 2024, the company agreed to acquire Matterport, Inc. for **$2.75 in cash per share** plus CoStar shares, with an estimated total cash consideration of **$940 million**[127](index=127&type=chunk)[153](index=153&type=chunk) - The Matterport merger is subject to customary conditions, including shareholder approval and HSR Act regulatory clearance, and is expected to close in the **fourth quarter of 2024**[127](index=127&type=chunk)[153](index=153&type=chunk) [Long-Term Debt](index=33&type=section&id=10.%20LONG-TERM%20DEBT) As of June 30, 2024, the company's long-term debt includes $1.0 billion in 2.800% Senior Notes due 2030, supplemented by a new undrawn $1.1 billion revolving credit facility established in May 2024 - The company holds **$1.0 billion** in aggregate principal amount of **2.800% Senior Notes due July 15, 2030**[190](index=190&type=chunk) - On May 24, 2024, a new **$1.1 billion revolving credit facility** maturing in May 2029 was established, with **no amounts drawn** as of June 30, 2024[164](index=164&type=chunk)[166](index=166&type=chunk) [Management's Discussion and Analysis (MD&A)](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2024's 12% revenue growth to strong Multifamily and Residential segments, despite a significant 43% increase in selling and marketing expenses leading to an operating loss and reduced net income, while maintaining strong liquidity for strategic investments - Key priorities for the remainder of 2024 include continued investment in residential marketplaces (Homes.com and OnTheMarket), expansion of the Richmond, VA technology center, and build-out of a new headquarters in Arlington, VA[243](index=243&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk) - The company's contract renewal rate for subscription-based services with terms of at least one year was approximately **90%** for the trailing 12 months ended June 30, 2024[241](index=241&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Q2 2024 revenues increased 12% to $677.8 million, driven by Multifamily and Residential growth, but a 43% surge in selling and marketing expenses led to a $16.1 million operating loss and an 81% decline in net income Selected Financial Performance (Q2 2024 vs Q2 2023) | Selected Items (Q2 2024 vs Q2 2023) | Q2 2024 ($M) | Q2 2023 ($M) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | 677.8 | 605.9 | 71.9 | 12% | | Multifamily Revenue | 264.2 | 224.3 | 39.9 | 18% | | Residential Revenue | 26.2 | 12.7 | 13.5 | 106% | | **Selling & Marketing Expense** | 358.4 | 250.0 | 108.4 | 43% | | **(Loss) Income from Operations** | (16.1) | 79.1 | (95.2) | NM | | **Net Income** | 19.2 | 100.5 | (81.3) | (81%) | - The increase in selling and marketing expenses was primarily driven by a **$93 million increase in marketing expenses** for advertising the company's brands and a **$15 million increase in personnel costs**[269](index=269&type=chunk)[258](index=258&type=chunk)[303](index=303&type=chunk) - The effective tax rate for Q2 2024 was **47%**, a significant increase from **24% in Q2 2023**, while income tax expense decreased by **$14 million** due to lower pre-tax income[305](index=305&type=chunk) [Business Segment Results](index=46&type=section&id=Business%20Segment%20Results) In Q2 2024, North America's revenue grew 10% to $644 million, but EBITDA fell 71% to $31 million due to increased costs, while International revenue surged 57% to $34 million, resulting in a $19 million EBITDA loss Segment EBITDA (Q2 2024 vs Q2 2023) | Segment EBITDA (Q2 2024 vs Q2 2023) | Q2 2024 ($M) | Q2 2023 ($M) | Change ($M) | | :--- | :--- | :--- | :--- | | North America | 30.8 | 104.6 | (73.8) | | International | (18.7) | 0.6 | (19.3) | | **Total EBITDA** | **12.1** | **105.2** | **(93.1)** | - The decrease in North America EBITDA was primarily due to increases in **marketing costs, personnel costs, and professional service fees**[307](index=307&type=chunk) - The decrease in International EBITDA was primarily due to the **OnTheMarket Acquisition** and an increase in **personnel costs** associated with the expansion of the international research team[307](index=307&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with $4.9 billion in cash as of Q2 2024, despite a $296 million cash decrease driven by $478 million in investing activities and reduced operating cash flow, but believes resources are sufficient for future commitments including the Matterport acquisition - Cash and cash equivalents were **$4.9 billion** as of June 30, 2024, down from **$5.2 billion** at December 31, 2023[352](index=352&type=chunk)[356](index=356&type=chunk) - Net cash provided by operating activities decreased by **$101 million** to **$198 million** for the first six months of 2024 compared to the same period in 2023, primarily due to lower net income[330](index=330&type=chunk) - Significant cash outlays include the pending Matterport acquisition (estimated **$940 million cash consideration**) and the Richmond campus expansion (expected total cost of **$450 million - $600 million**)[353](index=353&type=chunk)[355](index=355&type=chunk)[326](index=326&type=chunk) [Market Risk Disclosures](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, impacting approximately 5% of revenues, and interest rate changes related to its undrawn $1.1 billion variable-rate credit facility, alongside potential impairment of $2.7 billion in goodwill and intangible assets - Approximately **5% of revenues** for the first six months of 2024 were denominated in foreign currencies, with a hypothetical **10% strengthening of the U.S. dollar** decreasing these revenues by approximately **$3.3 million**[363](index=363&type=chunk) - Interest rate risk is tied to the **$1.1 billion revolving credit facility** with a variable interest rate, which had **no outstanding balance** as of June 30, 2024[364](index=364&type=chunk) - The company held approximately **$2.7 billion of goodwill and intangible assets** as of June 30, 2024, which are subject to impairment risk based on economic and industry conditions[340](index=340&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2024, the CEO and CFO concluded the company's disclosure controls and procedures are effective, with ongoing implementation of a new financial system expected to further enhance internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2024[342](index=342&type=chunk) - The company is engaged in a multi-year implementation of a new financial system intended to enhance operational and financial accounting processes[367](index=367&type=chunk) [Part II - Other Information](index=55&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation, but management believes no current legal matters will have a material adverse effect on its financial position or results of operations - The company is not currently a party to any lawsuit or proceeding that management believes is likely to have a material adverse effect on its financial position or results of operations[345](index=345&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the 2023 Form 10-K and the Q1 2024 Form 10-Q - No material changes have been made to the risk factors disclosed in the 2023 Form 10-K and the Q1 2024 Form 10-Q[346](index=346&type=chunk)

CoStar Group (CSGP) reported non-GAAP earnings of 15 cents per share in second-quarter 2024, surpassing the Zacks Consensus Estimate by 66.67% but plunging 51.6% year over year. Revenues of $678 million beat the Zacks Consensus Estimate by 0.14% and increased 12% year over year. The upside was driven by robust performance in key segments. Top-Line Details CoStar revenues (37.3% of revenues) of $253 million beat the consensus estimate by 0.61% and increased 10.4% year over year. Apartments.com revenues incre ...

Financial Data and Key Metrics Changes - CoStar Group reported revenue of $253 million for Q2 2024, representing a 10% increase year-over-year, in line with guidance [32] - Adjusted EBITDA was $41 million, significantly above the guidance of $5 million to $10 million and consensus estimates of $10 million [17][67] - The company maintained a strong balance sheet with $4.9 billion in cash and a net interest income of $53 million for the quarter [69] Business Line Data and Key Metrics Changes - Apartments.com revenue was $264 million for Q2 2024, reflecting an 18% growth year-over-year [11] - Homes.com achieved 99 million average monthly unique visitors, a 197% increase compared to the same quarter last year [18] - LoopNet revenue grew to $70 million, up 7% year-over-year, exceeding the high end of the guidance [43] Market Data and Key Metrics Changes - The STR sales team saw a 54% increase in net new sales year-over-year, with revenue from benchmarking products increasing by 28% [33] - The average monthly unique visitors for CoStar's platforms showed significant growth, with Homes.com and Apartments.com leading in traffic [10][31] - The commercial real estate market is showing signs of recovery, with transaction volumes increasing slightly by 6% year-over-year [46] Company Strategy and Development Direction - The company is focused on building a dedicated Homes.com sales team to drive future revenue growth [26][49] - CoStar aims to enhance its product offerings and maintain its competitive edge in the market, particularly in the residential sector [93][119] - The company is committed to continuous investment in Homes.com to capture long-term revenue opportunities [130] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Homes.com product, highlighting its potential for high ROI and the need for a dedicated sales force [76][100] - The economic conditions in the apartment industry are favorable, with vacancy rates forecasted to remain elevated [41] - Management acknowledged the challenges posed by competition but emphasized the company's strong market position and product differentiation [93][104] Other Important Information - The company reported a contract renewal rate of 90% for Q2, with a renewal rate of 95% for long-term subscribers [69] - CoStar's marketing campaign for Apartments.com is generating significant media impressions, reaching over 2.1 billion [30] - The company is expanding its international presence, with ongoing efforts to penetrate markets in Europe [126] Q&A Session Summary Question: What drove the decision to lower the guidance for the residential business? - Management indicated that the main factor was the rotation of the core sales force back to their primary products, impacting Homes.com sales [90] Question: How does the company plan to maintain its leadership position amid increasing competition? - Management highlighted the importance of product development and maintaining a robust marketing strategy to outpace competitors [93][119] Question: What are the expectations for the Homes.com initiative moving forward? - Management expects steady investment in Homes.com, with a focus on building a dedicated sales team to drive growth [130][132]

The reported revenue represents a surprise of +0.14% over the Zacks Consensus Estimate of $676.85 million. With the consensus EPS estimate being $0.09, the EPS surprise was +66.67%. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. For the quarter ended June 2024, CoStar Group (CSGP) reported revenue of $677.8 million, up 11.9% over the same period last year. EPS ...

Core Insights - CoStar Group (CSGP) reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, but down from $0.31 per share a year ago [1] - The earnings surprise for this quarter was 66.67%, with the company also surpassing earnings expectations in the previous quarter [2][3] - CoStar's revenues for the quarter were $677.8 million, which was 0.14% above the Zacks Consensus Estimate and an increase from $605.91 million year-over-year [8] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $707.06 million, and for the current fiscal year, it is $0.62 on revenues of $2.78 billion [6] - The trend of estimate revisions for CoStar is mixed, leading to a Zacks Rank of 3 (Hold), indicating expected performance in line with the market [12] Industry Context - CoStar operates within the Computers - IT Services industry, which is currently ranked in the bottom 40% of over 250 Zacks industries [10] - The industry outlook can significantly impact stock performance, with top-ranked industries historically outperforming lower-ranked ones by more than 2 to 1 [10] Stock Performance - CoStar shares have declined approximately 13.6% since the beginning of the year, contrasting with the S&P 500's gain of 16.7% [4] - The company's ability to sustain immediate price movements will largely depend on management's commentary during the earnings call [11]

Source: Google Analytics Unique Visitors – All CoStar Group Sites. Growth rate based on 2Q24 vs 2Q23. | --- | --- | |-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | • | Second quarter 2024 revenue of $678 million increased 12% year-over-year and our two businesses with billion dollar run rates delivered double-digit revenue growth. | | • | Annualized net new bookings ...

[Executive Summary & Q2 2024 Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Q2%202024%20Highlights) This section provides an overview of CoStar Group's strong financial and operational performance in Q2 2024, including key financial metrics, record website traffic, and management's commentary on business segment growth [Q2 2024 Financial & Operational Highlights](index=1&type=section&id=1.1.%20Q2%202024%20Financial%20%26%20Operational%20Highlights) CoStar Group achieved strong performance in Q2 2024, with revenue growing 12% year-over-year to $678 million, net new bookings reaching $67 million, and the company's network averaging a record 183 million unique monthly visitors Q2 2024 Key Financial Data | Metric | Q2 2024 | Q2 2023 | Year-over-Year Growth | | :--- | :--- | :--- | :--- | | Revenue | $678 million | $606 million | 12% | | Net Income | $19 million | $101 million | -81.2% | | Diluted Net Income Per Share | $0.05 | $0.25 | -80% | | EBITDA | $12 million | $105 million | -88.6% | | Adjusted EBITDA | $41 million | $127 million | -67.7% | | Non-GAAP Net Income | $61 million | $127 million | -51.9% | | Non-GAAP Diluted Net Income Per Share | $0.15 | $0.31 | -51.6% | - Net new bookings totaled **$67 million**[1](index=1&type=chunk) - CoStar Group's network averaged a record **183 million** unique monthly visitors[1](index=1&type=chunk)[47](index=47&type=chunk) - Homes.com's net new bookings exceeded **$55 million** by June, with the Homes.com network attracting **148 million** average monthly unique visitors in Q2[14](index=14&type=chunk) - Homes.com's unaided brand awareness reached **27%** in June 2024[14](index=14&type=chunk) [Management Commentary](index=1&type=section&id=1.2.%20Management%20Commentary) CEO Andy Florance highlighted strong revenue, sales, and website traffic growth, with Apartments.com up 18% and CoStar up 10%, while CFO Chris Lown noted the strength of core commercial businesses and ongoing progress of the Homes.com strategy - CEO Andy Florance reported total revenue growth of **12%** year-over-year, with Apartments.com growing **18%** and CoStar **10%**, and commercial information and marketplace businesses achieving a **41%** profit margin in Q2 2024[2](index=2&type=chunk) - CFO Chris Lown stated that the quarter's results demonstrate the strength of the company's core commercial businesses and the continued progress of the Homes.com strategy[14](index=14&type=chunk) [Financial Performance](index=4&type=section&id=2.%20Financial%20Performance) This section details CoStar Group's financial results, including condensed consolidated statements of operations, balance sheets, cash flows, and disaggregated revenues by segment for Q2 2024 and the first half of 2024 [Condensed Consolidated Statements of Operations](index=4&type=section&id=2.1.%20Condensed%20Consolidated%20Statements%20of%20Operations) In Q2 2024, CoStar Group reported revenue of **$677.8 million**, gross profit of **$542.0 million**, and net income of **$19.2 million**, significantly lower than Q2 2023's **$100.5 million**, with diluted EPS at **$0.05** Condensed Consolidated Statements of Operations Summary (Q2 2024 vs Q2 2023) | Metric (Millions of USD, except per share data) | Q2 2024 | Q2 2023 | | :-------------------------------------------- | :------------- | :------------- | | Revenue | $677.8 | $605.9 | | Cost of Revenues | $135.8 | $112.4 | | Gross Profit | $542.0 | $493.5 | | Operating Expenses | $558.1 | $414.4 | | Operating (Loss) Income | $(16.1) | $79.1 | | Net Income | $19.2 | $100.5 | | Diluted Net Income Per Share | $0.05 | $0.25 | Condensed Consolidated Statements of Operations Summary (Six Months Ended June 30, 2024 vs June 30, 2023) | Metric (Millions of USD, except per share data) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------------------------------- | :----------------------- | :----------------------- | | Revenue | $1,334.2 | $1,190.3 | | Cost of Revenues | $277.0 | $231.6 | | Gross Profit | $1,057.2 | $958.7 | | Operating Expenses | $1,116.1 | $807.3 | | Operating (Loss) Income | $(58.9) | $151.4 | | Net Income | $25.9 | $187.7 | | Diluted Net Income Per Share | $0.06 | $0.46 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=2.2.%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets increased to **$9,067.3 million** from **$8,919.7 million** on December 31, 2023, with cash and cash equivalents decreasing, but net property, plant, and equipment significantly increasing due to new campus acquisitions Condensed Consolidated Balance Sheets Summary (Millions of USD) | Metric | June 30, 2024 | December 31, 2023 | | :--- | :------------ | :------------- | | Cash and Cash Equivalents | $4,919.5 | $5,215.9 | | Total Current Assets | $5,207.2 | $5,476.1 | | Property, Plant and Equipment, Net | $853.2 | $472.2 | | Goodwill | $2,383.6 | $2,386.2 | | Total Assets | $9,067.3 | $8,919.7 | | Total Current Liabilities | $561.7 | $455.8 | | Long-Term Debt, Net | $991.2 | $990.5 | | Total Liabilities | $1,671.6 | $1,581.1 | | Total Stockholders' Equity | $7,395.7 | $7,338.6 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=2.3.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash provided by operating activities significantly decreased to **$189.2 million** from **$298.4 million** in the prior year, while net cash used in investing activities substantially increased to **$472.5 million**, primarily due to new campus acquisitions Condensed Consolidated Statements of Cash Flows Summary (Six Months Ended June 30, 2024 vs June 30, 2023, Millions of USD) | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :----------------------- | :----------------------- | | Net Cash Provided by Operating Activities | $189.2 | $298.4 | | Net Cash Used in Investing Activities | $(472.5) | $(54.4) | | Net Cash Used in Financing Activities | $(11.9) | $(6.3) | | Net (Decrease) Increase in Cash and Cash Equivalents | $(296.4) | $237.3 | | Cash and Cash Equivalents at End of Period | $4,919.5 | $5,205.3 | - Purchases of property, plant, and equipment and other assets for the new campus amounted to **$449.5 million** in the first half of 2024, compared to **$45.6 million** in the first half of 2023[22](index=22&type=chunk) [Disaggregated Revenues & Segment Results](index=8&type=section&id=2.4.%20Disaggregated%20Revenues%20%26%20Segment%20Results) Total revenue for Q2 2024 was **$677.8 million**, with North America contributing **$643.8 million** and International **$34.0 million**, primarily driven by Multifamily and CoStar businesses; total EBITDA for Q2 2024 significantly decreased to **$12.1 million** from **$105.2 million** in Q2 2023, mainly due to negative International EBITDA Q2 2024 Disaggregated Revenues (Millions of USD) | Segment | North America | International | Total | | :--- | :--- | :--- | :--- | | CoStar | $237.1 | $15.9 | $253.0 | | Information Services | $27.9 | $5.5 | $33.4 | | Multifamily | $264.2 | — | $264.2 | | LoopNet | $67.2 | $2.6 | $69.8 | | Residential | $16.2 | $10.0 | $26.2 | | Other Marketplaces | $31.2 | — | $31.2 | | Total Revenue | $643.8 | $34.0 | $677.8 | Q2 2024 Segment EBITDA (Millions of USD) | Segment | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | North America | $30.8 | $104.6 | | International | $(18.7) | $0.6 | | Total EBITDA | $12.1 | $105.2 | [2024 Outlook & Guidance](index=1&type=section&id=3.%202024%20Outlook%20%26%20Guidance) This section outlines CoStar Group's financial projections for the third quarter and full year 2024, including updated guidance for adjusted EBITDA and revenue, along with forward-looking non-GAAP reconciliations [Full Year and Q3 2024 Guidance](index=1&type=section&id=3.1.%20Full%20Year%20and%20Q3%202024%20Guidance) CoStar Group raised its full-year 2024 adjusted EBITDA guidance to **$195 million** to **$205 million**, with the midpoint increasing by **$5 million** from previous guidance, and full-year revenue is projected to be **$2,735 million** to **$2,745 million**, representing approximately **12%** year-over-year growth at the midpoint, while Q3 2024 adjusted EBITDA is expected to be **$47 million** to **$52 million** 2024 Outlook (Millions of USD, except per share data) | Metric | Q3 2024 Guidance (Low-High) | Full Year 2024 Guidance (Low-High) | | :--- | :----------------------- | :--------------------- | | Adjusted EBITDA | $47 - $52 | $195 - $205 | | Revenue | $692 - $697 | $2,735 - $2,745 | | Non-GAAP Diluted Net Income Per Share | $0.15 - $0.16 | $0.64 - $0.66 | - The midpoint of the full-year 2024 adjusted EBITDA guidance increased by **$5 million** from previous guidance[5](index=5&type=chunk) - Full-year 2024 revenue growth is projected to be approximately **12%** at the midpoint[14](index=14&type=chunk) - Q3 2024 revenue growth is projected to be approximately **11%** at the midpoint[14](index=14&type=chunk) [Forward-Looking Guidance Reconciliation (Non-GAAP)](index=10&type=section&id=3.2.%20Forward-Looking%20Guidance%20Reconciliation%20(Non-GAAP)) The company provides forward-looking non-GAAP guidance reconciliations, including net income to non-GAAP net income and net income to adjusted EBITDA, covering Q3 2024 and the full year Q3 2024 Guidance Reconciliation (Millions of USD, except per share data) | Metric | Low | High | | :--- | :-- | :--- | | Net Income | $22 | $26 | | Non-GAAP Net Income | $63 | $67 | | Adjusted EBITDA | $47 | $52 | Full Year 2024 Guidance Reconciliation (Millions of USD, except per share data) | Metric | Low | High | | :--- | :-- | :--- | | Net Income | $107 | $114 | | Non-GAAP Net Income | $263 | $270 | | Adjusted EBITDA | $195 | $205 | [Non-GAAP Financial Measures & Reconciliations](index=2&type=section&id=4.%20Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section defines CoStar Group's key non-GAAP financial measures and provides detailed reconciliations from GAAP to non-GAAP metrics for various periods, including net income to non-GAAP net income, EBITDA, and adjusted EBITDA [Definitions of Non-GAAP Measures](index=2&type=section&id=4.1.%20Definitions%20of%20Non-GAAP%20Measures) This section defines CoStar Group's key non-GAAP financial measures, including non-GAAP net income, net new bookings, adjusted EBITDA, EBITDA, and non-GAAP diluted net income per share, explaining their calculation methods and purposes - Non-GAAP net income is determined by adjusting GAAP net income to exclude stock-based compensation expense, acquisition and integration-related costs, restructuring costs, out-of-period settlement and impairment costs, loss on debt extinguishment, and amortization of acquired intangible assets and other related costs, then subtracting a hypothetical income tax provision[7](index=7&type=chunk) - Net new bookings are calculated based on the annualized change in sales bookings resulting from new subscription contracts, changes to existing subscription contracts, and cancellations of subscription contracts during the reporting period[8](index=8&type=chunk) - Adjusted EBITDA is a non-GAAP financial measure representing EBITDA less stock-based compensation expense, acquisition and integration-related costs, restructuring costs, and out-of-period settlement and impairment[16](index=16&type=chunk) - EBITDA is a non-GAAP financial measure representing GAAP net income less net interest income or expense, net other income or expense, loss on debt extinguishment, income taxes, and depreciation and amortization expense[31](index=31&type=chunk) - Non-GAAP diluted net income per share is non-GAAP net income divided by the diluted shares used to calculate GAAP diluted net income per share; during periods of GAAP net loss and non-GAAP net income, the weighted average shares outstanding used to calculate non-GAAP EPS include potentially dilutive securities excluded from GAAP EPS calculations due to their anti-dilutive effect[32](index=32&type=chunk) [Reconciliation of Net Income to Non-GAAP Net Income](index=5&type=section&id=4.2.%20Reconciliation%20of%20Net%20Income%20to%20Non-GAAP%20Net%20Income) This reconciliation table shows adjustments from GAAP net income to non-GAAP net income, primarily by adding back amortization of acquired intangible assets, stock-based compensation expense, and acquisition and integration-related costs, then applying a hypothetical tax rate Q2 2024 Reconciliation of Net Income to Non-GAAP Net Income (Millions of USD, except per share data) | Metric | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | Net Income | $19.2 | $100.5 | | Income Tax Expense | $16.7 | $31.1 | | Pre-Tax Income | $35.9 | $131.6 | | Amortization of Acquired Intangible Assets | $18.1 | $18.0 | | Stock-Based Compensation Expense | $22.7 | $21.8 | | Acquisition and Integration-Related Costs | $6.0 | $(0.2) | | Non-GAAP Pre-Tax Income | $82.7 | $171.1 | | Hypothetical Income Tax Provision (26.0%) | $(21.5) | $(44.5) | | Non-GAAP Net Income | $61.2 | $126.6 | | Diluted Net Income Per Share | $0.05 | $0.25 | | Non-GAAP Diluted Net Income Per Share | $0.15 | $0.31 | [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=5&type=section&id=4.3.%20Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This reconciliation table details adjustments from GAAP net income to EBITDA and then to adjusted EBITDA, primarily by adding back non-cash expenses such as depreciation and amortization, interest, taxes, stock-based compensation expense, and acquisition-related costs Q2 2024 Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Millions of USD) | Metric | Q2 2024 | Q2 2023 | | :--- | :------------- | :------------- | | Net Income | $19.2 | $100.5 | | Amortization of Acquired Intangible Assets (Cost of Revenues) | $7.9 | $7.5 | | Amortization of Acquired Intangible Assets (Operating Expenses) | $10.2 | $10.5 | | Depreciation and Other Amortization | $10.1 | $8.1 | | Interest Income, Net | $(53.5) | $(51.9) | | Other (Expense) Income, Net | $1.5 | $(0.6) | | Income Tax Expense | $16.7 | $31.1 | | EBITDA | $12.1 | $105.2 | | Stock-Based Compensation Expense | $22.7 | $21.8 | | Acquisition and Integration-Related Costs | $6.0 | $(0.2) | | Adjusted EBITDA | $40.8 | $126.7 | [Quarterly Non-GAAP Reconciliations](index=9&type=section&id=4.4.%20Quarterly%20Non-GAAP%20Reconciliations) This section provides detailed quarterly non-GAAP reconciliations from Q1 2023 to Q2 2024, including net income to non-GAAP net income and net income to EBITDA and adjusted EBITDA Quarterly Non-GAAP Net Income Reconciliation (Millions of USD, except per share data) | Metric | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | | :--- | :------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Income | $87.1 | $100.5 | $90.6 | $96.4 | $6.7 | $19.2 | | Non-GAAP Net Income | $117.7 | $126.7 | $120.2 | $133.4 | $41.7 | $61.2 | | Non-GAAP Diluted Net Income Per Share | $0.29 | $0.31 | $0.30 | $0.33 | $0.10 | $0.15 | Quarterly EBITDA and Adjusted EBITDA Reconciliation (Millions of USD) | Metric | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | | :--- | :------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | EBITDA | $97.8 | $105.2 | $88.7 | $98.0 | $(12.7) | $12.1 | | Adjusted EBITDA | $122.9 | $126.8 | $111.9 | $130.1 | $12.4 | $40.8 | [Corporate Information](index=3&type=section&id=5.%20Corporate%20Information) This section provides details on CoStar Group's upcoming earnings conference call and an overview of the company's business, including its market position, key brands, and a disclaimer regarding forward-looking statements [Earnings Conference Call](index=3&type=section&id=5.1.%20Earnings%20Conference%20Call) CoStar Group will host a conference call on Tuesday, July 23, 2024, at 5:00 PM ET to discuss Q2 2024 results and company outlook, with investors able to listen to a live webcast on the company's investor relations website - Management will host a conference call on **Tuesday, July 23, 2024, at 5:00 PM ET** to discuss Q2 2024 results and the company's outlook[18](index=18&type=chunk)[33](index=33&type=chunk) - A live audio webcast of the conference call will be available in the investor section of CoStar Group's website: https://investors.costargroup.com[18](index=18&type=chunk) [About CoStar Group & Forward-Looking Statements](index=11&type=section&id=5.2.%20About%20CoStar%20Group%20%26%20Forward-Looking%20Statements) Founded in 1987, CoStar Group is a leading provider of online real estate marketplaces, information, and analytics for the property market, operating platforms like CoStar, Apartments.com, and Homes.com, with this section also including a detailed disclaimer regarding forward-looking statements and potential risks - CoStar Group (NASDAQ: CSGP), founded in **1987**, is a leading provider of online real estate marketplaces, information, and analytics for the property market[47](index=47&type=chunk) - The company's primary brands include CoStar, Apartments.com, LoopNet, STR, Ten-X, Homes.com, and international portals OnTheMarket (UK), BureauxLocaux (France), Thomas Daily (Germany), and Belbex (Spain)[47](index=47&type=chunk) - CoStar Group's websites attracted over **183 million** average monthly unique visitors in Q2 2024[47](index=47&type=chunk) - This press release contains "forward-looking statements" subject to various risks and uncertainties, where actual results may differ materially from expectations[29](index=29&type=chunk) - Potential risk factors include risks related to the proposed transaction with Matterport, Inc., the ability to integrate operations and employees, the ability to realize anticipated benefits and synergies, impacts on business relationships, legal proceedings, the ability to retain key personnel, and the effects of economic conditions on the real estate industry and customer base[29](index=29&type=chunk)

For the second quarter, the Zacks Consensus Estimate for revenues is currently pegged at $678.15 million, suggesting growth of 11.92% from the year-ago quarter's levels. Let's see how things have shaped up for the upcoming announcement. The strengthening international segment and the positive outlook for real estate marketplaces are expected to have bolstered LoopNet's performance in the quarter under review. It expects revenues between $674 million and $679 million, indicating growth of 12% year over year ...

I wrote a Deep Dive on CSGP back in January 2024, so I would suggest reading my Deep Dive for a more comprehensive discussion on the company. I will mostly highlight a couple of points in this piece. Such countercyclical dynamic makes it much more likely that even in a "GFC" scenario, CoStar's revenue may continue to increase." CSGP is one of those rare companies that grew its revenues double-digit for each of the last 51 quarters. CSGP guided for $5 Bn revenue in 2027 even though consensus estimates today ...

2d illustrations and photos Introduction I previously covered CoStar (NASDAQ:CSGP) back in January, rating the company as a 'Strong Buy,' something I've rarely assigned to the companies I've written about. At the time, I praised the company for disrupting the commercial real estate industry. It has created several marketplaces, building network effects and scale. It also built a huge database of information and tools that are crucial for agents to find data on a property's construction, prior sales, market ...