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Mar 31, 2022

CoStar Q1 2022 Earnings Report

Revenue increased and net new bookings grew, marking an outstanding start to the year.

Key Takeaways

CoStar Group's Q1 2022 revenue reached $516 million, a 13% increase year-over-year, with net income rising by 20% to $89 million. The company experienced record sales, driven by strong performance in its flagship product, CoStar, and a rebound in Apartments.com sales. The company is raising its revenue and adjusted EBITDA guidance for the year.

Revenue for Q1 2022 reached $516 million, up 13% year-over-year.

Net income for Q1 2022 increased by 20% to $89 million.

Net new bookings grew by 31% to a record $68 million.

Residential operations revenue increased by 63% year-over-year to $18 million.

Total Revenue
$516M
Previous year: $458M
+12.7%
EPS
$0.31
Previous year: $0.28
+10.7%
EBITDA
$158M
Previous year: $136M
+16.2%
Adjusted EBITDA
$178M
Previous year: $160M
+11.3%
Gross Profit
$420M
Previous year: $369M
+13.9%
Cash and Equivalents
$3.93B
Previous year: $3.69B
+6.5%
Free Cash Flow
$131M
Previous year: -$35.4M
-469.2%
Total Assets
$7.36B
Previous year: $6.94B
+6.0%

CoStar

CoStar

CoStar Revenue by Segment

CoStar Revenue by Geographic Location

Forward Guidance

The Company is raising its revenue guidance to a range of $2.15 billion to $2.17 billion for the full year of 2022 and expects revenue for the second quarter of 2022 in the range of $529 million to $534 million. The Company is raising its adjusted EBITDA guidance to a range of $585 million to $615 million for the full year of 2022 and expects adjusted EBITDA in a range of $123 million to $128 million for the second quarter of 2022.

Positive Outlook

  • Revenue guidance raised to $2.15B - $2.17B for 2022.
  • Revenue for Q2 2022 expected to be $529M - $534M.
  • Adjusted EBITDA guidance raised to $585M - $615M for 2022.
  • Adjusted EBITDA for Q2 2022 expected to be $123M - $128M.
  • Full year 2022 non-GAAP net income per diluted share in a range of $0.98 to $1.03 based on 395 million shares

Challenges Ahead

  • Actual results may differ materially due to risk factors and uncertainties.
  • Economic environment and the real estate industry may impact results.
  • COVID-19 pandemic and responses to it may affect global economies.
  • Potential declines in revenues, revenue growth rates and profitability.
  • Tax rate estimates may change.

Revenue & Expenses

Visualization of income flow from segment revenue to net income