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Sep 30, 2021

CoStar Q3 2021 Earnings Report

CoStar's revenue increased by 17% year-over-year, with CoStar accelerating to double-digit revenue growth and net sales reaching an all-time high.

Key Takeaways

CoStar Group reported a strong third quarter with revenue of $499 million, a 17% increase year-over-year. The company's CoStar performance improved with double-digit growth rates. Net income for the quarter was $64 million, or $0.16 per diluted share, while non-GAAP net income was $99 million, or $0.25 per diluted share.

CoStar Group's revenue for Q3 2021 was $499 million, a 17% increase year-over-year.

Net income for Q3 2021 was $64 million, or $0.16 per diluted share.

Non-GAAP net income for Q3 2021 was $99 million, or $0.25 per diluted share.

EBITDA for Q3 2021 was $123 million, a 13% increase year-over-year.

Total Revenue
$499M
Previous year: $426M
+17.3%
EPS
$0.25
Previous year: $0.23
+8.7%
EBITDA
$123M
Previous year: $108M
+13.4%
Adjusted EBITDA
$144M
Previous year: $134M
+7.5%
Gross Profit
$407M
Previous year: $348M
+17.0%
Cash and Equivalents
$3.76B
Previous year: $3.87B
-2.7%
Free Cash Flow
$98.9M
Total Assets
$7.13B
Previous year: $6.8B
+4.9%

CoStar

CoStar

CoStar Revenue by Segment

CoStar Revenue by Geographic Location

Forward Guidance

The Company is adjusting its revenue guidance for the full year of 2021 to a new range of $1.935 billion to $1.940 billion, representing growth of approximately 17% year-over-year at the midpoint of the range. Revenue for the fourth quarter of 2021 is expected to be in the range of $498 million to $503 million, representing year-over-year revenue growth of approximately 13% at the midpoint of the range.

Positive Outlook

  • Full year revenue guidance increased to $1.935B - $1.940B, representing 17% growth.
  • Q4 revenue is expected to be $498M - $503M, a 13% year-over-year increase.
  • Full year adjusted EBITDA guidance increased to $615M - $620M, representing 12% growth.
  • Q4 adjusted EBITDA is expected to be $161M - $166M.
  • Full year non-GAAP net income per diluted share guidance increased to $1.07 - $1.08.

Challenges Ahead

  • Multifamily revenue expectations were reduced.
  • Fourth quarter revenue growth is projected to be lower than the current quarter.
  • Ultra-low vacancy rates in Multifamily slowed sales results.
  • Uncertainty surrounding the impact of the COVID-19 pandemic.
  • Volatility in the international and U.S. economy and the commercial real estate industry

Revenue & Expenses

Visualization of income flow from segment revenue to net income