CoStar Group(US:CSGP)2020-10-28 05:50Financial 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]