Core Insights - CoStar Group reported mixed Q4 2024 results, with revenue exceeding expectations but earnings per share falling short [2][3] Financial Performance - Q4 2024 revenue reached $709 million, surpassing the analyst estimate of $701 million and the company's guidance range of $693 million to $703 million, reflecting a year-over-year increase of 10.8% from $640 million in Q4 2023 [2][3][6] - Earnings per share (EPS) for Q4 2024 was $0.15, below the expected $0.22 and down 37.5% from $0.24 in Q4 2023 [3][6] - Net income decreased by 37.8% year-over-year to $60 million, while adjusted EBITDA was $111.9 million, indicating a 14% decline from the previous year but exceeding management's expectations [3][7] Business Overview - CoStar Group specializes in online real estate marketplaces, data, and analytics services, with a focus on maintaining a comprehensive proprietary database that includes property, leasing, sales, and tenant information [4][5] - The company is expanding its market presence in the residential real estate segment, particularly through platforms like Apartments.com and Homes.com [4][5] Segment Performance - Apartments.com experienced a 17% revenue increase, contributing to a total of $1.07 billion for 2024 [6] - Homes.com has become the second-largest residential real estate marketplace in the U.S., attracting 110 million unique visitors monthly [7] Future Outlook - Management projects 2025 revenue between $2.985 billion and $3.015 billion, with Q1 2025 revenue expected to be between $711 million and $716 million, representing approximately 9% year-over-year growth [8] - The adjusted EBITDA forecast for 2025 is set between $375 million and $405 million, with a focus on ongoing advancements in strategic segments like Homes.com [8]

Financial Performance - CoStar Group's full year 2024 revenue was $2.74 billion, an 11% increase from $2.46 billion in 2023[1] - Q4 2024 revenue reached $709 million, up 11% from $640 million in Q4 2023[1] - Net income for 2024 was $139 million, down from $375 million in 2023, with Q4 2024 net income at $60 million[1] - Total revenues for the year ended December 31, 2024, reached $2,736.2 million, up 15.0% from $2,455.0 million in 2023[23] - Net income for 2024 was $138.7 million, a decrease of 63.0% compared to $374.7 million in 2023[21] - EBITDA for the fourth quarter of 2024 was $72.9 million, down 25.7% from $98.0 million in the fourth quarter of 2023[25] - The company reported a net cash provided by operating activities of $392.6 million in 2024, down 19.7% from $489.5 million in 2023[21] Revenue Sources - Apartments.com generated $1.07 billion in revenue for 2024, a 17% increase year-over-year, while CoStar's revenue was $1.02 billion, growing 10%[3] - CoStar Group's commercial information and marketplace brands achieved 43% profit margins for 2024[3] Visitor Metrics - The Homes.com Network achieved 110 million average monthly unique visitors in Q4 2024, nearly doubling Realtor.com's 62 million[3] - CoStar Group's average monthly unique visitors increased by 17% year-over-year to 134 million in Q4 2024[3] - CoStar Group's websites attracted over 134 million average monthly unique visitors in Q4 2024[33] Future Projections - The company expects 2025 revenue in the range of $2.985 billion to $3.015 billion, representing approximately 10% growth year-over-year[6] - Adjusted EBITDA for 2025 is projected to be between $375 million and $405 million, with a margin of 13% at the midpoint[7] - The company plans to achieve an adjusted EBITDA guidance range of $375 million to $405 million for the year ending December 31, 2025[29] Assets and Liabilities - Total assets increased to $9,256.8 million in 2024 from $8,919.7 million in 2023, representing a growth of 3.8%[19] - Cash and cash equivalents decreased to $4,681.0 million in 2024 from $5,215.9 million in 2023, a decline of 10.3%[21] - Total current liabilities increased to $552.3 million in 2024, up 21.2% from $455.8 million in 2023[19] - Total stockholders' equity increased to $7,553.5 million in 2024 from $7,338.6 million in 2023, reflecting a growth of 2.9%[19] Stock and Acquisitions - The Board approved a stock repurchase program for up to $500 million of the company's common stock[2] - Cash paid for acquisitions in 2024 totaled $276.7 million, significantly higher than $99.6 million in 2023[21] - CoStar Group is in the process of acquiring Matterport, Inc., which may impact its future performance[34] Strategic Initiatives - CoStar Group is a global leader in commercial real estate information, analytics, and online marketplaces, with major brands including CoStar, LoopNet, and Apartments.com[32] - The company is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence[33] - The company is focused on geographic expansion and increasing revenues from current and future plans[34] - The company is investing in building out its campus in Richmond, Virginia, which involves significant costs[34] Risks and Uncertainties - The company faces risks including competition, market cyclicality, and the ability to attract and retain clients and advertisers[34] - CoStar Group's forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially[34] - CoStar Group's filings with the SEC provide more information on potential risks and factors affecting its performance[35]

Core Viewpoint - CoStar Group is expected to report fourth-quarter 2024 earnings with projected revenues between $693 million and $703 million, indicating a year-over-year growth of approximately 9% at the midpoint, while earnings per share are anticipated to be between 21 cents and 23 cents [1] Revenue Expectations - The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $701 million, suggesting a growth of 9.51% from the year-ago quarter's levels [3] - The Zacks Consensus Estimate for fourth-quarter earnings has remained steady at 22 cents per share, indicating a 33.33% decline from the figure reported in the year-ago quarter [2] Performance Drivers - CoStar Group's fourth-quarter performance is likely to benefit from a robust portfolio of marketplaces, including Apartments.com, LoopNet, and Homes.com [4] - Increased traffic and higher advertising expenditures on Apartments.com are expected to contribute to top-line growth [5] - Homes.com network traffic reached a record of 130 million unique visitors in the third quarter of 2024, a 17% year-over-year increase, which is anticipated to boost user engagement and revenue potential [5] - Unique visitors for Homes.com reached 85 million in the third quarter of 2024, marking a 38% year-over-year increase [6] - The introduction of new features like the Owner module is expected to enhance user engagement and attract more users [7] - The strengthening international segment and positive outlook for real estate marketplaces are expected to bolster LoopNet's performance [7] - CoStar Group's growth trajectory has been supported by a consistent acquisition strategy, including notable acquisitions like Visual Lease and OnTheMarket [8] Challenges - The launch of Homes.com has presented challenges, as sales teams are initially shifting focus away from core products, leading to reduced productivity [9] - Persistent inflation and higher interest rates are weighing on consumer confidence, which is expected to negatively impact CoStar Group's results in the upcoming quarter [9] Earnings Outlook - CoStar Group has an Earnings ESP of 0.00% and currently carries a Zacks Rank 3, indicating that the odds of an earnings beat are not favorable [10][11]

Core Insights - CoStar Group (CSGP) is expected to report quarterly earnings of $0.22 per share, a decline of 33.3% year-over-year, with revenues forecasted at $701 million, reflecting a 9.5% increase compared to the previous year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1][2] Revenue Estimates - Analysts predict 'Revenues- CoStar' to be $260.69 million, representing a year-over-year increase of 9.7% [4] - The estimate for 'Revenues- Information Services' is $31.19 million, indicating a decline of 27% year-over-year [4] - 'Revenues- Other Marketplaces' are expected to reach $32.10 million, reflecting a decrease of 14.2% from the same quarter last year [4] - 'Revenues- LoopNet' is forecasted at $71.72 million, showing a growth of 4.7% year-over-year [5] - 'Revenues- Residential' is projected to be $28.50 million, suggesting a significant increase of 185% year-over-year [5] - 'Revenues- Multifamily' is expected to reach $277.32 million, indicating a year-over-year growth of 13.8% [5] Stock Performance - CoStar shares have returned +0.1% over the past month, compared to a +3.9% change in the Zacks S&P 500 composite [5] - CoStar holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5]

Core Insights - CoStar Group reported Q3 2024 non-GAAP earnings of 22 cents per share, exceeding estimates by 37.50% but down 26.7% year-over-year [2] - Revenues for Q3 2024 were $693 million, slightly missing estimates by 0.55% but showing a year-over-year increase of 10.9% [2] - The company raised its top-line guidance for fiscal 2024 based on strong performance in key segments [3] Revenue Breakdown - CoStar Group's revenues from its primary segment amounted to $257 million, beating estimates by 0.14% and increasing 10.1% year-over-year [4] - Apartments.com revenues rose 16% year-over-year, with net new bookings of $44 million in Q3 [4] - Multifamily revenues were $272 million, missing estimates by 0.66% but up 15.5% year-over-year [5] - LoopNet revenues reached $71 million, missing estimates by 0.11% but increasing 5% year-over-year [5] - Residential revenues were $27.7 million, missing estimates by 8.13% but showing a significant year-over-year increase of 168.9% [6] - Other marketplace revenues of $32.3 million beat estimates by 1.41% but declined 3.9% year-over-year [7] Market Performance - CoStar's U.K. residential real estate portal saw unique visitors increase by 348% year-over-year, indicating successful international expansion [8] - The company's global websites reached a record of 163 million average monthly unique visitors, a 28% increase year-over-year [7] Operating Expenses - Selling and marketing expenses rose 24.1% year-over-year to $331.2 million, constituting 47.8% of revenues [10] - General and administrative expenses increased to 15.3% of revenues, up 20 basis points year-over-year [10] - Adjusted EBITDA margin for Q3 was 11%, down from 17.9% in the previous year [12] Financial Position - CoStar Group reported cash and cash equivalents of $4.93 billion as of September 30, 2024, a slight increase from $4.91 billion as of June 30, 2024 [13] - Long-term debt remained stable at $991.5 million as of September 30, 2024 [13] - Cash generated from operations was $298 million, up from $189.2 million in the previous quarter [13] Future Guidance - For Q4 2024, CoStar expects revenues between $693 million and $703 million, indicating approximately 9% year-over-year growth at the midpoint [14] - Adjusted EBITDA for Q4 2024 is anticipated to be between $76 million and $86 million [15] - Earnings per share for Q4 2024 are projected to be between 21 cents and 23 cents [16] - For the full year 2024, revenues are expected to be between $2.72 billion and $2.73 billion, reflecting approximately 11% year-over-year growth at the midpoint [16] - Adjusted EBITDA for 2024 is forecasted to be between $205 million and $215 million [17] - Earnings per share for 2024 are expected to be between 67 cents and 69 cents [18] Market Sentiment - Estimates for CoStar have trended downward recently, with a consensus estimate shift of -13.33% [20] - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [22]

Group 1 - The stock of CoStar Group, Inc. (CSGP) is experiencing significant attention due to high implied volatility in the options market, particularly for the Jan. 17, 2025 $35 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in CoStar Group's stock price, potentially due to an upcoming event [2] - CoStar Group currently holds a Zacks Rank 3 (Hold) in the Computers - IT Services industry, which is in the top 15% of the Zacks Industry Rank, but analysts have lowered earnings estimates for the current quarter from 25 cents per share to 22 cents [3] Group 2 - The high implied volatility surrounding CoStar Group may indicate a trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Group 1 - The article introduces Cody Hooper as a new contributing analyst for Seeking Alpha, encouraging others to share their investment ideas for publication and potential earnings [1] - The author emphasizes the importance of long-term investing and believes that informed and disciplined individuals can outperform the S&P 500 over time [2] - The author has over 19 years of experience studying investing and managing stock portfolios, highlighting a commitment to educating others on sound investment decisions [2] Group 2 - The article does not contain any specific company or industry analysis, focusing instead on the author's background and investment philosophy [3]

Core Viewpoint - CoStar Group (CSGP) has experienced a recent decline in share price, but the formation of a hammer chart pattern suggests a potential trend reversal due to increased buying interest and strong earnings estimate revisions from analysts [1][3]. Group 1: Technical Analysis - The hammer chart pattern indicates that the stock may have found support, with bulls potentially counteracting the bears, signaling a possible trend reversal [1]. - A hammer pattern forms when there is a small candle body with a long lower wick, suggesting that buying interest has emerged after a downtrend [2]. Group 2: Fundamental Analysis - There has been a 0.5% increase in the consensus EPS estimate for CSGP over the last 30 days, indicating strong agreement among analysts regarding the company's improved earnings potential [3]. - CSGP holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [3].

I gave a buy rating to CoStar Group (NASDAQ: CSGP ) stock in May, with my key thesis being that the business should see its growth accelerate in the coming periods, especially with the I'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount to their intrinsi ...

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 September 30, 2024 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 csgp-logoa01a22.jpg CoStar Group, Inc. (Exact name of registrant as specified in its charter) Delaware 52-2091509 (St ...