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CoStar
🇺🇸 NASDAQ:CSGP
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•
Sep 30, 2023

CoStar Q3 2023 Earnings Report

CoStar Group's revenue increased by 12% year-over-year, marking 50 straight quarters of double-digit revenue growth. Net income also increased by 25% compared to the prior year.

Key Takeaways

CoStar Group reported strong Q3 2023 results with a 12% increase in revenue year-over-year, reaching $625 million. Net income rose by 25% to $91 million. The company is focused on investing in Homes.com and aims to begin monetization in the second quarter of 2024.

Revenue for the quarter ended September 30, 2023, was $625 million, a 12% increase year-over-year.

Net income for the third quarter was $91 million, a 25% increase year-over-year.

Net new bookings totaled $65 million for the third quarter.

Homes.com had 100 million unique visitors in September.

Total Revenue
$625M
Previous year: $557M
+12.2%
EPS
$0.3
Previous year: $0.3
+0.0%
Gross Profit
$501M
Previous year: $449M
+11.7%
Cash and Equivalents
$5.23B
Previous year: $4.77B
+9.5%
Free Cash Flow
$64.1M
Previous year: $75.6M
-15.3%
Total Assets
$8.77B
Previous year: $8.21B
+6.9%

CoStar

CoStar

CoStar Revenue by Segment

CoStar Revenue by Geographic Location

Forward Guidance

CoStar Group anticipates revenue between $630 million and $635 million and adjusted EBITDA between $123 million and $128 million for Q4 2023. The company expects full year revenue between $2.445 billion and $2.450 billion and adjusted EBITDA between $485 million and $490 million.

Positive Outlook

  • Commercial information and marketplace business expected to deliver 12% year-over-year revenue growth in Q4 2023.
  • Commercial information and marketplace business expected to deliver 14% year-over-year revenue growth for the full year 2023.
  • Homes.com strategy is proving successful and has moved the company into second place in the U.S.
  • Company is wisely accelerating investment in the residential marketplace in the second half of 2023.
  • Non-GAAP net income per diluted share for Q4 2023 is expected to be in the range of $0.31 to $0.32.

Challenges Ahead

  • Adjusted EBITDA for the full year 2023 is expected to be in the range of $485 million to $490 million.
  • Adjusted EBITDA for the fourth quarter of 2023 is expected to be in the range of $123 million to $128 million.
  • The company continues to demonstrate that their commercial information and marketplace businesses can deliver strong, double-digit revenue growth regardless of market cycles
  • Non-GAAP net income per diluted share for the full year 2023 is expected to be in a range of $1.21 to $1.22
  • Against one of the worst property markets in decades

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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