CoStar Group, Inc. (NASDAQ:CSGP) Q2 2021 Earnings Conference Call July 27, 2021 5:00 PM ET Company Participants Bill Warmington - Vice President, Investor Relations Andrew Florance - Founder, President and Chief Executive Officer Scott Wheeler - Chief Financial Officer Andy Thomas - President of CoStar Real Estate Manager Conference Call Participants Sterling Auty - J.P. Morgan Securities Peter Christiansen - Citibank David Chu - Bank of America John Campbell - Stephens Inc. George Tong - Goldman Sachs Ryan ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 0-24531 CoStar Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

CoStar Group, Inc. (NASDAQ:CSGP) Q1 2021 Earnings Conference Call April 27, 2021 5:00 PM ET Company Participants Bill Warmington - IR Andy Florance - CEO Scott Wheeler - CFO Conference Call Participants Andrew Jeffrey - Truist Securities Sterling Auty - JPMorgan George Tong - Goldman Sachs Pete Christiansen - Citi David Chu of Bank - America Mayank Tandon - Needham & Co Ryan Tomasello - KBW Mario Cortellacci - Jefferies Stephen Sheldon - William Blair Jeff Meuler - Baird Joe Goodwin - JMP Securities Operato ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer x Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 0-245 ...

Financial Data and Key Metrics Changes - Total revenues for the full year 2020 were $1.66 billion, representing a 19% year-over-year growth and exceeding guidance by $9 million [8] - Adjusted EBITDA for the full year 2020 was $553 million, an increase of 9% year-over-year, surpassing guidance by $23 million [8][70] - The company raised $1.7 billion in equity and launched a $1 billion bond offering with an investment-grade credit rating [9] Business Line Data and Key Metrics Changes - Apartments.com achieved record performance with a full year revenue of $599 million, a 22% year-over-year increase, and net new sales up 35% [34][76] - CoStar Suite revenue grew 5% in Q4 and 8% for the full year, with expectations of 5% to 6% growth for 2021 [72] - LoopNet revenue grew 20% year-over-year in 2020, with signature ad revenue increasing by 50% [79] Market Data and Key Metrics Changes - The commercial property and land sector grew 51% in Q4 and 31% for the full year, with organic growth of 15% [78] - STR subscription revenue increased in both the third and fourth quarters of 2020, with retention rates over 95% [75] Company Strategy and Development Direction - The company is pursuing multiple large growth opportunities through organic investment and M&A, including the proposed acquisition of CoreLogic [11][67] - Focus on integrating and enhancing product offerings, particularly in the hospitality sector and international markets [45][46] - Plans to significantly increase investments in marketing and sales for LoopNet and Ten-X in 2021 [56][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite pandemic challenges, expecting double-digit organic revenue growth in 2021 [67] - The company anticipates significant growth opportunities in the distressed asset market over the next few years [66] Other Important Information - The company closed three acquisitions in 2020: Ten-X, Emporis, and Homesnap, expanding its market reach [10] - The terminated RentPath acquisition resulted in a one-time charge of $59.5 million, impacting G&A expenses [71] Q&A Session Summary Question: What are the expectations for revenue growth in 2021? - Management expects double-digit organic revenue growth in the range of 10% to 12% for the information services sector in 2021 [76] Question: How is the integration of STR data progressing? - STR integration is on track, with subscription revenues growing despite challenges in the hospitality sector [75] Question: What are the plans for LoopNet's marketing strategy? - LoopNet plans to significantly increase its marketing investment in 2021, targeting broader awareness and engagement [56][64]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 0-24531 CoStar Group, Inc. (Exact name of registrant as specified in its charter) Delaware 52-2091509 (State or other jurisdiction of in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer x Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 0 ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2020 was $426 million, representing a 21% year-over-year increase [7][55] - Net income for the quarter was $58 million, with adjusted EBITDA of $134 million, exceeding guidance [9][60] - The company achieved $53 million in quarterly sales bookings, a 53% increase over Q2 [8] Business Line Data and Key Metrics Changes - Apartments.com revenue grew by 23% year-over-year in Q3 2020, with net new sales up 59% compared to the same quarter last year [9][10] - LoopNet revenue increased by 19% year-over-year, with record high traffic and sales [9][19] - CoStar Suite revenue grew by 6% year-over-year, while information services revenue surged by 70% [56] Market Data and Key Metrics Changes - The average unique visitors per month to Apartments.com network was over 25 million, a 20% increase from the previous year [10] - LoopNet recorded an average of 8.3 million unique visitors per month, supporting its revenue growth [19] - The industrial leasing volume reached a new record in Q3 2020, driven by e-commerce demand [48] Company Strategy and Development Direction - The company plans to invest in growing its Apartments.com sales force and replicate its success with LoopNet [17][58] - A focus on international expansion is evident, with plans to integrate Emporis data and enhance offerings in Germany and Spain [36][79] - The company aims for a long-term objective of $3 billion in run rate revenue and 40% adjusted EBITDA margins by 2023 [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the business despite the pandemic, noting strong renewal rates and customer demand [31][63] - The company anticipates a significant wave of distressed properties in the market, which could present opportunities for growth [53][29] - The outlook for Q4 2020 includes expected revenue growth of approximately 15% compared to the same quarter in 2019 [65] Other Important Information - Cash and investment balances increased to approximately $3.9 billion, reflecting strong financial health [60][61] - The company has maintained a strong balance sheet and is committed to protecting its investment-grade credit rating [61][69] Q&A Session Summary Question: Can you discuss the growth in Multifamily bookings and the market dynamics between metro and suburban areas? - Management noted strong sales in central business districts due to high supply and significant marketing investments, while suburban properties are also accelerating their investment in Apartments.com [72][73] Question: What are the plans for international expansion and how will it be approached? - The company highlighted that the global opportunity is three times that of the U.S. and plans to focus on integrating Emporis data to enhance international offerings, starting with Germany and Spain [75][79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol Name of each exchange on which registered Common Stock ($0.01 par value) CSGP Nasdaq Global Select Market Large accelerated filer x Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUAN ...

Financial Data and Key Metrics Changes - CoStar Group's total revenue grew 16% year-over-year to $397 million in Q2 2020, exceeding guidance of 13% growth [12][63] - Adjusted EBITDA increased 17% year-over-year to $129 million, surpassing expectations [72] - Net income was reported at $60 million, with non-GAAP net income per share of $2.34, up 5% despite a 2% dilution from equity raise [13][71] Business Line Data and Key Metrics Changes - Apartments.com revenue grew 21% year-over-year, achieving record sales and traffic [13][67] - LoopNet revenue increased 18% year-over-year, with net new sales up 91% year-over-year in June [30][68] - CoStar Suite revenue grew 8% year-over-year, with expectations for a slowdown in growth rates for the second half of 2020 [64][65] Market Data and Key Metrics Changes - Monthly unique visitors to CoStar's platforms reached 62 million, a 13% increase from Q1 2020 [9] - STR business model showed resilience with positive net new sales despite challenges in the hospitality industry [40] - The commercial real estate market is experiencing rising delinquencies, particularly in retail and lodging sectors [36][51] Company Strategy and Development Direction - CoStar Group plans to continue aggressive marketing investments, particularly in Apartments.com, despite the pandemic [19][83] - The acquisition of Ten-X is expected to enhance CoStar's auction capabilities and market reach [34][39] - The company aims to leverage its strong balance sheet for future acquisitions in the proptech space [47][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience and countercyclical nature, with a positive outlook for recovery [11][12] - The company anticipates a gradual recovery in the commercial real estate market, with expectations for continued demand for its services [50][58] - Management noted that renewal rates are expected to remain stable, contrasting with previous recessions [77][96] Other Important Information - CoStar raised approximately $2.7 billion in equity and debt, strengthening its balance sheet [43][88] - The company has a current cash balance of approximately $3.8 billion, positioning it well for future growth opportunities [44][89] - Marketing spend is expected to increase significantly year-over-year, focusing on effective digital channels [83][84] Q&A Session Summary Question: Continuation of bookings momentum into July - Management indicated that trends in bookings have remained stable and similar to previous months [94][95] Question: Renewal rates comparison to past recessions - Management explained that the absence of low-cost competitors and improved product offerings contribute to better renewal rates in the current recession [96][97] Question: Sales environment for CoStar Suite - Management noted that sales productivity is improving, with expectations for continued growth as the market stabilizes [99][100] Question: Pricing and traction of signature ads - Management reported upward pricing trends for signature ads, with expectations for significant growth in the coming years [106][108]