CoStar Q2 2023 Earnings Report
Key Takeaways
CoStar Group reported strong Q2 2023 results, with revenue reaching $606 million, a 13% increase year-over-year. Apartments.com revenue growth accelerated to 23%. The company's sales team delivered $82 million in net new bookings, the second-highest in its history. Traffic to CoStar Group's websites reached 105 million unique visitors in June.
Revenue for the quarter ended June 30, 2023, was $606 million, a 13% increase compared to the $536 million reported for the quarter ended June 30, 2022.
Net income for the second quarter was $101 million, a 20% increase year-over-year.
Net new bookings reached $82 million, marking the second-highest quarter in the company's history.
Traffic to all of CoStar Group’s web sites reached a new high of 105 million unique visitors in June.
CoStar
CoStar
CoStar Revenue by Segment
CoStar Revenue by Geographic Location
Forward Guidance
The Company expects revenue in the range of $2.45 billion to $2.46 billion for the full year of 2023, representing year-over-year growth of approximately 13% at the midpoint of the range. The Company expects revenue for the third quarter of 2023 in the range of $622 million to $627 million, representing revenue growth of approximately 12% year-over-year at the midpoint of the range. The Company expects adjusted EBITDA in the range of $510 million to $520 million for the full year of 2023. For the third quarter of 2023, the Company expects adjusted EBITDA in the range of $115 million to $120 million. The Company expects full year 2023 non-GAAP net income per diluted share in a range of $1.24 to $1.26 based on 407 million shares. For the third quarter of 2023, the Company expects non-GAAP net income per diluted share in a range of $0.29 to $0.30 based on 407 million shares.
Positive Outlook
- Revenue for the full year of 2023 is expected to be in the range of $2.45 billion to $2.46 billion, representing year-over-year growth of approximately 13% at the midpoint of the range.
- Revenue for the third quarter of 2023 is expected to be in the range of $622 million to $627 million, representing revenue growth of approximately 12% year-over-year at the midpoint of the range.
- Adjusted EBITDA for the full year of 2023 is expected to be in the range of $510 million to $520 million.
- Adjusted EBITDA for the third quarter of 2023 is expected to be in the range of $115 million to $120 million.
- Full year 2023 non-GAAP net income per diluted share is expected to be in a range of $1.24 to $1.26 based on 407 million shares.
Challenges Ahead
- The revenue forecast is lower than prior guidance to reflect lower property transaction volume expectations in the second half of 2023, and the related impact on Ten-X revenue.
- The company acknowledges the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in the release and in their quarterly reports on Form 10-Q and annual reports on Form 10-K.
- Actual results may differ materially.
- The company does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
- There is a risk that tax rate estimates stated in the press release may change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income