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Sep 30, 2022

CoStar Q3 2022 Earnings Report

CoStar Group's revenue increased by 12% and net new bookings grew by 62% year-over-year.

Key Takeaways

CoStar Group reported a revenue increase of 12% to $557 million compared to Q3 2021. Net income was $72 million, or $0.18 per diluted share, while non-GAAP net income was $118 million, or $0.30 per diluted share, a 19% increase year-over-year. The company is raising its revenue and adjusted EBITDA guidance for the full year 2022.

Revenue for the quarter ended September 30, 2022, was $557 million, a 12% increase year-over-year.

Net income for the third quarter of 2022 was $72 million, or $0.18 per diluted share.

Non-GAAP net income for the third quarter of 2022 was $118 million, or $0.30 per diluted share, a 19% increase year-over-year.

Net new bookings totaled $76 million in the third quarter of 2022, up 62% over the third quarter of 2021.

Total Revenue
$557M
Previous year: $499M
+11.5%
EPS
$0.3
Previous year: $0.25
+20.0%
EBITDA
$129M
Previous year: $123M
+4.9%
Adjusted EBITDA
$153M
Previous year: $144M
+6.0%
Gross Profit
$449M
Previous year: $407M
+10.3%
Cash and Equivalents
$4.77B
Previous year: $3.76B
+26.9%
Free Cash Flow
$75.6M
Previous year: $98.9M
-23.6%
Total Assets
$8.21B
Previous year: $7.13B
+15.1%

CoStar

CoStar

CoStar Revenue by Segment

CoStar Revenue by Geographic Location

Forward Guidance

The Company is raising its revenue guidance to a range of $2.175 billion to $2.180 billion for the full year of 2022 and expects revenue for the fourth quarter of 2022 in the range of $565 million to $570 million. The Company is raising its adjusted EBITDA guidance to a range of $665 million to $670 million for the full year of 2022 and expects adjusted EBITDA in a range of $176 million to $181 million for the fourth quarter of 2022. The Company expects full year 2022 non-GAAP net income per diluted share in a range of $1.25 to $1.26 and for the fourth quarter of 2022, the Company expects non-GAAP net income per diluted share in a range of $0.35 to $0.36.

Positive Outlook

  • Raising revenue guidance for full year 2022 to $2.175 billion - $2.180 billion.
  • Expecting Q4 2022 revenue in the range of $565 million - $570 million.
  • Raising adjusted EBITDA guidance for full year 2022 to $665 million - $670 million.
  • Expecting Q4 2022 adjusted EBITDA in the range of $176 million - $181 million.
  • Expects full year 2022 non-GAAP net income per diluted share in a range of $1.25 to $1.26.

Challenges Ahead

  • Actual results may differ materially from the results anticipated in the forward-looking statements.
  • 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 Company-wide, CoStar, Apartments or LoopNet net new bookings.
  • Risk that revenues for the fourth quarter and full year 2022 will not be as stated in this press release.
  • Risk that net income for the fourth quarter and full year 2022 will not be as stated in this press release.

Revenue & Expenses

Visualization of income flow from segment revenue to net income