On July 23, 2024, CoStar Group Inc (CSGP, Financial) released its 8-K filing for the second quarter of 2024, showcasing impressive financial performance that exceeded analyst estimates. CoStar Group, a leading provider of commercial real estate data and marketplace listing platforms, reported a revenue of $678 million, surpassing the estimated $677.65 million. The company's net income for the quarter was $19 million, translating to $0.05 per diluted share, significantly higher than the estimated $0.02 per share.
Company Overview
CoStar Group Inc (CSGP, Financial) is renowned for its comprehensive commercial real estate data and marketplace listing platforms. The company's extensive data offerings cover over 5 million commercial real estate properties across various subsectors, including office, retail, hotels, multifamily, healthcare, industrial, self-storage, and data centers. CoStar Group operates several flagship brands such as CoStar Suite, LoopNet, Apartments.com, BizBuySell, and Lands of America, with over 80% of its revenue derived from subscription-based services. The company has also expanded its presence in Canada, the United Kingdom, Spain, and France.
Performance Highlights
CoStar Group Inc (CSGP, Financial) reported a 12% year-over-year increase in revenue for the second quarter of 2024, reaching $678 million compared to $606 million in the same period last year. Net new bookings were $67 million, and the company achieved a record 183 million average monthly unique visitors. The company's net income for the quarter was $19 million, or $0.05 per diluted share, up from $7 million, or $0.02 per diluted share, in the previous quarter.
“We achieved another strong quarter of results in terms of revenue, sales, and traffic to our websites,” said Andy Florance, Founder and CEO of CoStar Group. “Overall revenue grew 12% year-over-year, and our two billion-dollar run rate businesses continue to deliver double-digit revenue growth with Apartments.com growing at 18% and CoStar at 10% over the second quarter of last year.”
Financial Achievements
CoStar Group Inc (CSGP, Financial) reported significant financial achievements in the second quarter of 2024. The company's commercial information and marketplace businesses delivered 41% profit margins. Homes.com net new bookings reached over $55 million, a milestone that took Apartments.com two years to achieve. The Homes.com Network had 148 million monthly average unique visitors in the second quarter, maintaining its position as one of the top two most heavily trafficked residential property marketplaces in the U.S.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $678 million | $606 million |
| Net Income | $19 million | $100.5 million |
| Net Income per Share - Diluted | $0.05 | $0.25 |
| Adjusted EBITDA | $40.8 million | $126.7 million |
Analysis and Outlook
CoStar Group Inc (CSGP, Financial)'s strong performance in the second quarter of 2024 highlights the company's robust business model and its ability to generate consistent revenue growth. The significant increase in net new bookings and the record number of unique visitors to its websites underscore the company's market leadership and the effectiveness of its marketing strategies.
Looking ahead, CoStar Group Inc (CSGP, Financial) expects revenue for the full year 2024 to be in the range of $2.735 billion to $2.745 billion, representing approximately 12% year-over-year growth. The company also anticipates adjusted EBITDA for the full year to be between $195 million and $205 million, reflecting an increase from previous guidance.
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Explore the complete 8-K earnings release (here) from CoStar Group Inc for further details.
