CoStar Group(US:CSGP)2021-02-24 06:35Financial 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]