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Dec 31, 2020

CoStar Q4 2020 Earnings Report

CoStar Group's Q4 2020 revenue increased by 19% year-over-year, with traffic to marketplaces growing by 29%.

Key Takeaways

CoStar Group reported a strong Q4 2020, with revenue reaching $444 million, a 19% increase year-over-year. The company's marketplaces saw a 29% growth in traffic, and adjusted EBITDA increased by 18% to $167 million.

Revenue for Q4 2020 reached $444 million, a 19% increase compared to Q4 2019.

Adjusted EBITDA for Q4 2020 was $167 million, an 18% increase year-over-year.

Traffic to CoStar Group's marketplaces grew by 29% in Q4 2020.

Apartments.com revenues grew 22% and LoopNet marketplace network revenue grew 20%.

Total Revenue
$444M
Previous year: $375M
+18.6%
EPS
$0.29
Previous year: $0.28
+3.6%
Adjusted EBITDA
$167M
Previous year: $142M
+17.7%
Gross Profit
$366M
Previous year: $300M
+22.2%
Cash and Equivalents
$3.76B
Previous year: $1.07B
+250.8%
Free Cash Flow
$131M
Previous year: $108M
+21.3%
Total Assets
$6.92B
Previous year: $3.85B
+79.4%

CoStar

CoStar

CoStar Revenue by Segment

CoStar Revenue by Geographic Location

Forward Guidance

The Company expects revenue in the range of $1.925 billion to $1.945 billion for the full year of 2021 and adjusted EBITDA in a range of $640 million to $650 million.

Positive Outlook

  • Expects revenue in the range of $1.925 billion to $1.945 billion for the full year of 2021, representing growth of approximately 17% year-over-year at the midpoint of the range.
  • Expects revenue for the first quarter of 2021 in the range of $450 million to $455 million, representing revenue growth of 15% year-over-year at the midpoint of the range.
  • The Company expects adjusted EBITDA in a range of $640 million to $650 million for the full year of 2021, an increase of 17% at the midpoint of the range compared to 2020.
  • For the first quarter of 2021, the Company expects adjusted EBITDA in a range of $140 million to $145 million.
  • Expect full year 2021 non-GAAP net income per diluted share in a range of $10.83 to $11.03 based on 39.7 million shares.

Challenges Ahead

  • Homesnap is expected to have negative adjusted EBITDA of approximately $5 million for the year.
  • For the first quarter of 2021, we expect non-GAAP net income per diluted share in a range of $2.33 to $2.43 based on 39.5 million shares.
  • Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, including uncertainties as a result of the COVID-19 pandemic and responses to it by, and the impact on, global economies, actual results may differ materially.
  • Uncertainty surrounding the impact of the COVID-19 pandemic, including volatility in the international and U.S. economy, worker absenteeism or decreased productivity, quarantines or other travel or health-related restrictions
  • The length and severity of the COVID-19 pandemic

Revenue & Expenses

Visualization of income flow from segment revenue to net income