Financial Data and Key Metrics Changes - Full year 2024 revenue was $2.74 billion, an increase of 11% over 2023, marking the 55th consecutive quarter of double-digit revenue growth [7] - Fourth quarter 2024 revenue was $709 million, also an 11% increase year-over-year [7] - Net income grew from $7 million in Q1 2024 to $60 million in Q4 2024 [9] - Adjusted EBITDA increased from $12 million in Q1 to $112 million in Q4, exceeding guidance [9][79] - Full year adjusted EBITDA was $241 million, reflecting a 9% margin [79] Business Line Data and Key Metrics Changes - CoStar product revenue reached $1.02 billion in 2024, with a growth rate of 10% year-over-year [13] - Apartments.com revenue for Q4 2024 was $276 million, with a 99% monthly renewal rate and an NPS score of 94 [37] - LoopNet revenue grew by 5% in Q4 and 6% for the full year 2024 [83] - Revenue from information services was $37 million in Q4 and $136 million for the full year 2024, with expected growth of 18% to 20% in 2025 [83][84] Market Data and Key Metrics Changes - Average monthly unique visitors to global websites increased 17% year-over-year to 134 million in Q4 2024 [10] - The CoStar subscriber base grew to over 240,000, with a renewal rate of 92% [15] - The number of paying apartment communities on Apartments.com increased by 7% year-over-year to over 75,000 [43] Company Strategy and Development Direction - The company plans to grow its sales force from 1,390 at the end of 2024 to 1,890 by December 2025, aiming for significant revenue growth [78] - Focus on expanding the Homes.com sales team to 500 by the end of 2025, enhancing service and sales effectiveness [12][56] - The company is optimistic about capturing a large share of the total addressable market (TAM) in commercial and residential real estate [94][97] Management's Comments on Operating Environment and Future Outlook - Management believes the commercial real estate market is moving towards recovery, with positive demand and absorption for office space [20][23] - The company anticipates strong rent growth and capital appreciation in the coming years [22][24] - Management expressed confidence in achieving double-digit growth again once the current market malaise passes [93] Other Important Information - The company announced a $500 million share buyback program, expecting to execute $150 million of share repurchase annually [89] - Capital expenditures are projected to range from $400 million to $450 million in 2025, primarily for the Richmond campus [91] Q&A Session Summary Question: International Expansion and Investment - Management is implementing financial discipline in European operations and rationalizing costs, with no significant P&L hit expected in 2025 [104][105] Question: Apartments.com Growth Guidance - Revenue growth for Apartments.com is expected to be 11% to 12% for 2025, with a focus on increasing unit size and pricing [81][112] Question: Margin Management - Management expects continued margin increases in core commercial businesses, with a focus on managing fixed costs [124]

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].

Group 1 - The analyst has given a buy rating to CoStar Group (NASDAQ: CSGP) stock, anticipating accelerated growth in the upcoming periods [1] - The investment approach focuses on identifying undervalued companies with long-term growth potential, blending value investing principles with a long-term growth focus [1] - The strategy involves purchasing quality companies at a discount to their intrinsic value and holding them to allow for compounding of earnings and shareholder returns [1]

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 ...

CoStar posted disappointing results in its earnings report. Shares of CoStar Group (CSGP -9.03%), the leading commercial real estate listing platform, were falling after the company delivered disappointing results in its third-quarter earnings report today. As a result, the stock was down 9.1% as of 11:08 a.m. ET on the news. CoStar's growth isn't enough CoStar reported 11% revenue growth to $692.6 million, though that was short of the consensus at $696.1 million. The performance marked its 54th consecutive ...