Homes.com Network Solidifies its Position as
the Number Two Residential Real Estate Marketplace in the United
States;
Board Approves Stock Repurchase Program
CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online
real estate marketplaces, information, and analytics in the
property markets, announced today that revenue for the year ended
December 31, 2024 was $2.74 billion, up 11% over revenue of $2.46
billion for the full year of 2023. Revenue for the fourth quarter
of 2024 was $709 million, an increase of 11% over revenue of $640
million for the fourth quarter of 2023. Net income was $139 million
for the year ended December 31, 2024, compared to $375 million for
the year ended December 31, 2023, and net income was $60 million
for the fourth quarter of 2024.
In February 2025, the Board of Directors of CoStar Group
approved a stock repurchase program which authorizes, but does not
obligate, the repurchase of up to $500 million of the Company’s
common stock. The program has no time limit and can be discontinued
at any time at the Company’s discretion.
“CoStar Group delivered another strong year of profitable
revenue growth in 2024 and in the fourth quarter of 2024 we
achieved our 55th consecutive quarter of double-digit revenue
growth while exceeding the top-end of our guidance range in both
revenue and Adjusted EBITDA,” said Andy Florance, Founder and Chief
Executive Officer of CoStar Group. “Full year 2024 revenue grew 11%
compared to 2023 as Net Income, EBITDA and Adjusted EBITDA
increased significantly throughout 2024. In 2024, Apartments.com
achieved $1.07 billion in revenue, growing 17% compared to 2023.
CoStar, our flagship offering, generated revenue of $1.02 billion
and grew 10% year-over-year. CoStar Group's commercial information
and marketplace brands1 delivered exceptional results with 43%
profit margins for 2024. CoStar Group delivered a 17% increase
year-over-year in average monthly unique visitors to 134 million in
the fourth quarter of 2024 according to Google Analytics.”
Florance continued, “In less than one year, the Homes.com
Network has become the second largest residential real estate
marketplace in the United States. We reached an audience of 110
million average monthly unique visitors in the fourth quarter,
nearly doubling Realtor.com's 62 million average monthly unique
visitors2. Homes.com is benefiting consumers, sellers and their
agents. Consumers are using what we believe is the best site in the
U.S. to find a home. Homes.com Members are gaining more exposure
for their listings across the internet that helps them sell homes
faster while building their brands and winning 58% more listings3.
Our dedicated sales force has grown to 275 representatives with
increasing productivity of tenured reps and rising customer NPS
scores.”
___________________________________
1 References to “commercial information
and marketplace brands” refer to our consolidated financial
position and results excluding the impact of our Residential
brands, which are Homes.com and OnTheMarket.
2 Based on: (1) the Homes.com Network
(which includes Homes.com, the Apartments Network, and the Land
Network) average monthly unique visitors (110 million) for the
quarter ended December 31, 2024, according to Google Analytics, and
(2) Realtor.com’s average monthly unique users (62 million) of
Realtor.com’s web and mobile sites according to internal data, for
the quarter ended December 31, 2024, as reported in News Corp’s
press release on February 5, 2025, and (3) Zillow Group’s average
monthly unique users (204 million) for the quarter ended December
31, 2024, as reported in Zillow Group’s shareholder letter dated
February 11, 2025.
3 Based on CoStar Group's internal
analysis comparing Members to non-Members on Homes.com.
Year 2023-2024 Quarterly
Results - Unaudited
(in millions, except per share
data)
2023
2024
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Revenues
$584
$606
$625
$640
$656
$678
$693
$709
Net income
87
101
91
96
7
19
53
60
Net income per share - diluted
0.21
0.25
0.22
0.24
0.02
0.05
0.13
0.15
Weighted average outstanding shares -
diluted
406
407
407
408
407
407
408
408
EBITDA
98
105
89
98
(13)
12
51
73
Adjusted EBITDA
123
127
112
130
12
41
76
112
2025 Outlook
The Company expects revenue in the range of $2.985 billion to
$3.015 billion for the full year of 2025, representing
year-over-year growth of approximately 10% at the midpoint of the
range. The Company expects revenue for the first quarter of 2025 in
the range of $711 million to $716 million, representing revenue
growth of approximately 9% year-over-year at the midpoint of the
range.
“We expect adjusted EBITDA for the full year of 2025 in the
range of $375 to $405 million, a margin of 13% at the midpoint of
the range. For the first quarter of 2025, we expect adjusted EBITDA
in the range of $25 million to $35 million,” said Chris Lown, CFO
of CoStar Group.
The preceding forward-looking statements reflect CoStar Group’s
expectations as of February 18, 2025 based on current estimates,
expectations, observations, and trends. Given the risk factors,
rapidly evolving economic environment, and uncertainties and
assumptions discussed in this release and in our quarterly reports
on Form 10-Q and annual reports on Form 10-K, actual results may
differ materially. Annualization of historical results from short
periods of time or small sample sizes may differ materially from
actual results realized in future periods and may not take into
account other future market conditions that may negatively affect
those results. Other than in publicly available statements, the
Company does not intend to update its forward-looking statements
until its next quarterly results announcement.
Reconciliations of EBITDA and adjusted EBITDA to the most
directly comparable GAAP measures are shown in detail below, along
with definitions for those terms. A reconciliation of
forward-looking non-GAAP guidance to the most directly comparable
GAAP measure, net income, can be found within the tables included
in this release.
Non-GAAP Financial Measures
For information regarding the purpose for which management uses
the non-GAAP financial measures disclosed in this release and why
management believes they provide useful information to investors
regarding the Company’s financial condition and results of
operations, please refer to the Company’s latest periodic
report.
EBITDA is a non-GAAP financial measure that represents GAAP net
income attributable to CoStar Group before interest income or
expense, net and other income or expense, net; loss on debt
extinguishment; income taxes; depreciation and amortization.
Adjusted EBITDA is a non-GAAP financial measure that represents
EBITDA before stock-based compensation expense, acquisition- and
integration-related costs, restructuring costs, and settlements and
impairments incurred outside the Company’s ordinary course of
business. Adjusted EBITDA margin represents adjusted EBITDA divided
by revenues for the period.
Earnings Conference Call
Management will conduct a conference call to discuss the fourth
quarter and full year 2024 results and the Company’s outlook at
5:00 PM ET on February 18, 2025. A live audio webcast of the
conference will be available in listen-only mode through the
Investors section of the CoStar Group website:
https://investors.costargroup.com. A replay of the webcast audio
will also be available in the Investors section of our website for
a period of time following the call.
CoStar Group, Inc.
Condensed Consolidated
Statements of Operations - Unaudited
(in millions, except per share
data)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Revenues
$
709.4
$
640.1
$
2,736.2
$
2,455.0
Cost of revenues
140.9
136.3
558.5
491.5
Gross profit
568.5
503.8
2,177.7
1,963.5
Operating expenses:
Selling and marketing (excluding customer
base amortization)
308.5
246.7
1,364.3
989.9
Software development
82.2
69.8
325.3
267.6
General and administrative
124.9
107.1
439.1
381.5
Customer base amortization
12.9
10.9
44.3
42.2
528.5
434.5
2,173.0
1,681.2
Income from operations
40.0
69.3
4.7
282.3
Interest income, net
47.2
59.7
212.5
213.6
Other (expense) income, net
(2.2
)
3.7
(7.1
)
5.4
Income before income taxes
85.0
132.7
210.1
501.3
Income tax expense
25.2
36.3
71.4
126.6
Net income
$
59.8
$
96.4
$
138.7
$
374.7
Net income per share — basic
$
0.15
$
0.24
$
0.34
$
0.92
Net income per share — diluted
$
0.15
$
0.24
$
0.34
$
0.92
Weighted-average outstanding shares —
basic
406.9
405.8
406.3
405.3
Weighted-average outstanding shares —
diluted
408.4
407.5
407.8
406.9
CoStar Group, Inc.
Reconciliation of Non-GAAP
Financial Measures - Unaudited
(in millions)
Reconciliation of Net Income
to EBITDA and Adjusted EBITDA
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Net income
$
59.8
$
96.4
$
138.7
$
374.7
Amortization of acquired intangible assets
in cost of revenues
7.0
8.4
29.9
31.5
Amortization of acquired intangible assets
in operating expenses
12.8
10.9
44.3
42.2
Depreciation and other amortization
13.1
9.4
44.1
33.8
Interest income, net
(47.2
)
(59.7
)
(212.5
)
(213.6
)
Other expense (income), net(1)
2.2
(3.7
)
7.1
(5.4
)
Income tax expense
25.2
36.3
71.4
126.6
EBITDA
$
72.9
$
98.0
$
123.0
$
389.8
Stock-based compensation expense
21.8
21.2
89.0
85.0
Acquisition and integration related
costs
16.7
10.7
29.4
12.9
Restructuring and related costs
0.5
0.2
0.7
4.1
Settlements and impairments
—
—
(1.3
)
(0.1
)
Adjusted EBITDA
$
111.9
$
130.1
$
240.8
$
491.7
(1) Includes $6.5 million and $28.6
million of amortization and depreciation expense associated with
lessor activities for the three and twelve months ended December
31, 2024, respectively.
CoStar Group, Inc.
Condensed Consolidated Balance
Sheets - Unaudited
(in millions)
December 31,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
4,681.0
$
5,215.9
Accounts receivable
210.7
213.2
Less: Allowance for credit losses
(22.8
)
(23.2
)
Accounts receivable, net
187.9
190.0
Prepaid expenses and other current
assets
81.3
70.2
Total current assets
4,950.2
5,476.1
Deferred income taxes, net
30.6
4.3
Property and equipment, net
1,014.9
472.2
Lease right-of-use assets
103.0
79.8
Goodwill
2,527.6
2,386.2
Intangible assets, net
433.2
313.7
Deferred commission costs, net
169.6
167.7
Deposits and other assets
27.7
19.7
Total assets
$
9,256.8
$
8,919.7
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
47.0
$
23.1
Accrued wages and commissions
133.3
117.8
Accrued expenses and other current
liabilities
179.7
163.0
Income taxes payable
23.2
7.7
Lease liabilities
32.0
40.0
Deferred revenue
137.1
104.2
Total current liabilities
552.3
455.8
Long-term debt, net
991.9
990.5
Deferred income taxes, net
7.6
36.7
Income taxes payable
25.0
18.2
Lease and other long-term liabilities
126.5
79.9
Total liabilities
$
1,703.3
$
1,581.1
Total stockholders’ equity
7,553.5
7,338.6
Total liabilities and stockholders’
equity
$
9,256.8
$
8,919.7
CoStar Group, Inc.
Condensed Consolidated
Statements of Cash Flows - Unaudited
(in millions)
Year Ended
December 31,
2024
2023
Operating activities:
Net income
$
138.7
$
374.7
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
146.9
107.5
Amortization of deferred commissions
costs
116.7
95.2
Amortization of Senior Notes discount and
issuance costs
2.8
2.4
Non-cash lease expense
32.7
30.0
Stock-based compensation expense
89.0
85.0
Deferred income taxes, net
(50.1
)
(37.2
)
Credit loss expense
36.4
35.0
Other operating activities, net
(1.3
)
(3.2
)
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable
(30.2
)
(66.6
)
Prepaid expenses and other current
assets
(7.4
)
(16.2
)
Deferred commissions
(120.2
)
(120.2
)
Accounts payable and other liabilities
43.5
33.9
Lease liabilities
(38.0
)
(39.2
)
Income taxes payable, net
22.4
10.7
Deferred revenue
11.2
(1.3
)
Other assets
(0.5
)
(1.0
)
Net cash provided by operating
activities
392.6
489.5
Investing activities:
Proceeds from sale and settlement of
investments
—
3.8
Proceeds from sale of property and
equipment and other assets
1.7
—
Purchases of property, equipment, and
other assets for new campuses
(579.0
)
(117.5
)
Purchases of property, equipment, and
other assets
(58.9
)
(25.3
)
Cash paid for acquisitions, net of cash
acquired
(276.7
)
(99.6
)
Net cash (used in) investing
activities
(912.9
)
(238.6
)
Financing activities:
Repurchase of restricted stock to satisfy
tax withholding obligations
(29.5
)
(26.4
)
Proceeds from exercise of stock options
and employee stock purchase plan
24.5
23.4
Payments of debt issuance costs
(3.6
)
—
Principal repayments of finance lease
obligations
(5.1
)
(0.7
)
Net cash (used in) provided by financing
activities
(13.7
)
(3.7
)
Effect of foreign currency exchange rates
on cash and cash equivalents
(0.9
)
0.7
Net (decrease) increase in cash and cash
equivalents
(534.9
)
247.9
Cash and cash equivalents at beginning of
year
5,215.9
4,968.0
Cash and cash equivalents at end of
year
$
4,681.0
$
5,215.9
CoStar Group, Inc.
Disaggregated Revenues -
Unaudited
(in millions)
Three Months Ended December
31,
2024
2023
North America
International
Total
North America
International
Total
CoStar
$
243.7
$
16.6
$
260.3
$
227.3
$
10.4
$
237.7
Information Services
31.7
4.8
36.5
32.9
9.8
42.7
Multifamily
276.5
—
276.5
243.8
—
243.8
LoopNet
69.2
2.7
71.9
65.9
2.6
68.5
Residential
17.3
10.8
28.1
7.8
2.2
10.0
Other Marketplaces
36.1
—
36.1
37.4
—
37.4
Total revenues
$
674.5
$
34.9
$
709.4
$
615.1
$
25.0
$
640.1
Year Ended December
31,
2024
2023
North America
International
Total
North America
International
Total
CoStar
$
957.3
$
63.2
$
1,020.5
$
886.0
$
39.2
$
925.2
Information Services
115.2
20.7
135.9
132.4
38.5
170.9
Multifamily
1,067.3
—
1,067.3
914.2
—
914.2
LoopNet
270.9
10.8
281.7
255.4
9.4
264.8
Residential
58.9
41.7
100.6
43.9
2.2
46.1
Other Marketplaces
130.2
—
130.2
133.8
—
133.8
Total revenues
$
2,599.8
$
136.4
$
2,736.2
$
2,365.7
$
89.3
$
2,455.0
CoStar Group, Inc.
Results of Segments -
Unaudited
(in millions)
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
EBITDA
North America
$
84.1
$
112.8
$
181.5
$
403.0
International
(11.2
)
(14.8
)
(58.5
)
(13.2
)
Total EBITDA
$
72.9
$
98.0
$
123.0
$
389.8
CoStar Group, Inc.
Reconciliation of Non-GAAP
Financial Measures with Quarterly Results - Unaudited
(in millions)
Reconciliation of Net Income
to EBITDA and Adjusted EBITDA
2023
2024
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Net income
$87.1
$100.5
$90.6
$96.4
$6.7
$19.2
$53.0
$59.8
Amortization of acquired intangible
assets
17.7
18.0
18.7
19.3
19.8
18.1
16.5
19.8
Depreciation and other amortization
7.9
8.1
8.4
9.4
10.3
10.1
10.6
13.1
Interest income, net
(43.5)
(51.9)
(58.4)
(59.7)
(56.2)
(53.5)
(55.6)
(47.2)
Other (income) expense, net(1)
(0.6)
(0.6)
(0.5)
(3.7)
1.9
1.5
1.6
2.2
Income tax expense
29.2
31.1
29.9
36.3
4.8
16.7
24.7
25.2
EBITDA(2)
$97.8
$105.2
$88.7
$98.0
$(12.7)
$12.1
$50.8
$72.9
Stock-based compensation expense
20.0
21.8
21.9
21.2
22.8
22.7
21.8
21.8
Acquisition and integration related
costs
1.7
(0.2)
0.8
10.7
2.3
6.0
4.4
16.7
Restructuring and related costs
3.4
(0.1)
0.5
0.2
—
—
0.2
0.5
Settlements and impairments
(0.1)
—
—
—
—
—
(1.3)
—
Adjusted EBITDA(2)
$122.9
$126.8
$111.9
$130.1
$12.4
$40.8
$75.9
$111.9
__________________________
(1) Includes $5.5 million, $8.3 million,
$8.3 million, and $6.5 million of amortization and depreciation
expense associated with lessor activities for the three months
ended March 31, 2024, June 30, 2024, September 30, 2024, and
December 31, 2024, respectively.
(2) Totals may not foot due to
rounding.
CoStar Group, Inc.
Reconciliation of
Forward-Looking Guidance - Unaudited
(in millions)
Reconciliation of
Forward-Looking Guidance, Net Income to Adjusted EBITDA
Guidance Range
Guidance Range
For the Three Months
Ending
For the Year Ending
March 31, 2025
December 31, 2025
Low
High
Low
High
Net income
(3
)
7
212
233
Amortization of acquired intangible
assets
19
19
74
74
Depreciation and other amortization
13
13
51
51
Interest income, net
(43
)
(43
)
(168
)
(168
)
Other (income) expense, net
2
2
7
7
Income tax (benefit) expense
3
3
77
86
Stock-based compensation expense
27
27
115
115
Acquisition and integration related
costs
7
7
7
7
Adjusted EBITDA
$
25
$
35
$
375
$
405
About CoStar Group
CoStar Group (NASDAQ: CSGP) is the global leader in commercial
real estate information, analytics, and online marketplaces.
Founded in 1986, CoStar Group is dedicated to digitizing the
world’s real estate, empowering all people to discover properties,
insights, and connections that improve their businesses and
lives.
CoStar Group’s major brands include CoStar, a leading global
provider of commercial real estate data, analytics and news;
LoopNet, the most trafficked commercial real estate marketplace;
Apartments.com, the leading platform for apartment rentals; and
Homes.com, the fastest-growing residential real estate marketplace.
CoStar Group’s industry-leading brands include STR, a global leader
in hospitality data and benchmarking, Ten-X, an online platform for
commercial real estate auctions and negotiated bids and
OnTheMarket, a leading residential property portal in the United
Kingdom.
CoStar Group’s websites attracted over 134 million average
monthly unique visitors in the fourth quarter of 2024, serving
clients around the world. Headquartered in Arlington, Virginia,
CoStar Group is committed to transforming the real estate industry
through innovative technology and comprehensive market
intelligence. From time to time, we plan to utilize our corporate
website as a channel of distribution for material company
information. For more information, visit CoStarGroup.com.
This news release and the Company’s earnings conference call
contain “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
include, but are not limited to, statements about CoStar Group's
plans, objectives, expectations, beliefs and intentions and other
statements including words such as “hope,” “anticipate,” “may,”
“likely,” “might,” “believe,” “expect,” “observe,” “consider,”
“think,” “intend,” “envision,” “will,” “should,” “could,” “would,”
“plan,” “target,” “estimate,” “predict,” “continue,” “commit” and
“potential” or the negative of these terms or other comparable
terminology. Such statements are based upon the current beliefs and
expectations of management of CoStar Group and are subject to many
risks and uncertainties. Actual results may differ materially from
the results anticipated in the forward-looking statements and the
assumptions and estimates used as a basis for the forward-looking
statements. The following factors, among others, could cause or
contribute to such differences: our inability to attract and retain
new clients; our inability to successfully develop and introduce
new or upgraded information, analytics, and online marketplace
services; our inability to compete successfully against existing or
future competitors in attracting advertisers and in general; the
effects of fluctuations and market cyclicality; the effects of
global economic uncertainties and downturns or a downturn or
consolidation in the real estate industry; our inability to hire
qualified persons for, or retain and continue to develop our sales
force, or unproductivity of our sales force; our inability to
retain and attract highly capable management and operating
personnel; the downward pressure that our internal and external
investments may place on our operating margins; our inability to
increase brand awareness; our inability to maintain or increase
internet traffic to our marketplaces, and the risk that the
methods, including Google Analytics, that we use to measure average
monthly unique visitors to our portals may misstate the actual
number of unique persons who visit our network of mobile
applications and websites for a given month or may differ from the
methods used by competitors; our inability to attract new
advertisers; our inability to successfully identify, finance,
integrate, and/or manage costs related to acquisitions; our
inability to complete certain strategic transactions if a proposed
transaction is subject to review or approval by regulatory
authorities pursuant to applicable laws or regulations; our
inability to complete the acquisition of Matterport, Inc.
(“Matterport”) or otherwise realize the benefits of the pending
Matterport acquisition; the effects of cyberattacks and security
vulnerabilities, and technical problems or disruptions; the
significant costs associated with undertaking a large
infrastructure project to build out our campus in Richmond,
Virginia; our inability to generate increased revenues from our
current or future geographic expansion plans; the risks related to
acceptance of credit cards and debit cards and facilitation of
other customer payments; the effects of climate related events and
other events beyond our control; the effects related to attention
to environmental, social and governance matters; our inability to
obtain and maintain accurate, comprehensive, or reliable data; our
inability to obtain and maintain stable data feeds, or disruption
of our data feeds; our inability to enforce or defend our ownership
and use of intellectual property; the effects of use of new and
evolving technologies, including artificial intelligence, on our
ability to protect our data and intellectual property from
misappropriation by third parties; our inability to defend against
potential legal liability for collecting, displaying, or
distributing information; our inability to obtain or retain
listings from real estate brokers, agents, property owners, and
apartment property managers; our inability to maintain or establish
relationships with third-party listing providers; our inability to
comply with the rules and compliance requirements of Multiple
Listing Services; the risks related to international operations;
the effects of foreign currency exchange rate fluctuations; our
indebtedness; the effects of a lowering or withdrawal of the
ratings assigned to our debt securities by rating agencies; the
effects of any actual or perceived failure to comply with privacy
laws and standards; the effects of changes in tax laws,
regulations, or fiscal and tax policies; the effects of third-party
claims, litigation, regulatory proceedings, or government
investigations; and risks related to return on investment. More
information about potential factors that could cause results to
differ materially from those anticipated in the forward-looking
statements include, but are not limited to, those stated in CoStar
Group’s filings from time to time with the Securities and Exchange
Commission (the “SEC”), including in CoStar Group’s Annual Reports
on Form 10-K and Quarterly Reports on Form 10-Q, each of which is
filed with the SEC, including in the “Risk Factors” section of
those filings, as well as CoStar Group’s other filings with the SEC
(including Current Reports on Form 8-K) available at the SEC’s
website (www.sec.gov). All forward-looking statements are based on
information available to CoStar Group on the date hereof, and
CoStar Group assumes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20250218480918/en/
Investor Relations: Rich Simonelli Head of Investor
Relations CoStar Group Investor Relations (202) 346-5649
getrich@costar.com
News Media: Matthew Blocher Vice President CoStar Group
Corporate Marketing & Communications (202) 346-6775
mblocher@costar.com
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