CoStar Q2 2020 Earnings Report
Key Takeaways
CoStar Group reported a 16% increase in revenue to $397 million for Q2 2020. Net income was $60 million, or $1.60 per diluted share, and adjusted EBITDA increased by 17% to $129 million. The company experienced record sales in June and saw increased traffic to its Apartments.com and LoopNet marketplaces.
Revenue for the quarter ended June 30, 2020, was $397 million, up 16% year-over-year.
Net income for Q2 2020 was $60 million, or $1.60 per diluted share.
Adjusted EBITDA for Q2 2020 was $129 million, a 17% increase year-over-year.
The company had 62 million monthly unique visitors on its platforms, a 13% increase over Q1 2020.
CoStar
CoStar
CoStar Revenue by Segment
CoStar Revenue by Geographic Location
Forward Guidance
CoStar Group expects revenue in the range of $1.63 billion to $1.64 billion for the full year 2020 and between $415 million and $420 million for Q3 2020. Adjusted EBITDA is expected to be in the range of $515 million to $525 million for the full year 2020 and between $120 million and $125 million for Q3 2020.
Positive Outlook
- Company expects revenue in the range of $1.63 billion to $1.64 billion for the full year of 2020, representing growth of approximately 17% for the year.
- Revenue for the third quarter of 2020 is expected in the range of $415 million to $420 million, representing revenue growth of 18% year-over-year at the midpoint of the range.
- Adjusted EBITDA in a range of $515 million to $525 million for the full year of 2020, an increase of 3% at the midpoint of the range compared to 2019.
- For the third quarter of 2020, the Company expects adjusted EBITDA in a range of $120 million to $125 million.
- Full-year 2020 non-GAAP net income per diluted share in a range of $9.22 to $9.42 based on 38.3 million shares.
Challenges Ahead
- Uncertainty surrounding the impact of the COVID-19 pandemic.
- Risk that the trends stated or implied by this release or in the earnings conference call cannot or will not be sustained at the current pace or may increase or decrease.
- Risk that the Company is unable to sustain current revenue, earnings and net new sales bookings growth rates or increase them.
- Risk that CoStar and Ten-X cannot be combined successfully or that the acquisition does not produce the expected results.
- Possibility that the acquisition of RentPath does not close when expected or at all.
Revenue & Expenses
Visualization of income flow from segment revenue to net income