CoStar Group Revenue Beats, EPS Dips

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]