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Dec 31, 2024
CoStar Q4 2024 Earnings Report
CoStar Group reported strong revenue growth but faced pressure on net income due to higher expenses.
Key Takeaways
CoStar Group delivered its 55th consecutive quarter of double-digit revenue growth, with Q4 revenue reaching $709.4 million (+10.81% YoY). However, net income declined by 37.96% YoY to $59.8 million, impacted by increased marketing and development expenses. The company remains optimistic about 2025, with revenue guidance set between $2.985 billion and $3.015 billion.
Q4 revenue increased 10.81% YoY to $709.4 million.
Net income declined 37.96% YoY to $59.8 million.
Apartments.com revenue grew 17% YoY, reaching $1.07 billion for FY24.
Homes.com became the second-largest residential real estate marketplace in the U.S.
CoStar
CoStar
CoStar Revenue by Segment
CoStar Revenue by Geographic Location
Revenue by Segment
CoStar Revenue
CapyFin.comInformation Services Revenue
CapyFin.comMultifamily Revenue
CapyFin.comLoopNet Revenue
CapyFin.comResidential Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
CoStar expects continued revenue growth in 2025, driven by Apartments.com and Homes.com expansion, but margins may remain pressured due to ongoing investments.
Positive Outlook
- FY25 revenue guidance set at $2.985B - $3.015B (+10% YoY).
- Q1 2025 revenue guidance of $711M - $716M (+9% YoY).
- Homes.com is now the second-largest residential marketplace in the U.S.
- Apartments.com continues strong performance with 17% YoY growth in FY24.
- Stock repurchase program of up to $500M approved.
Challenges Ahead
- Operating margins remain under pressure due to higher expenses.
- Net income declined in Q4 despite revenue growth.
- International revenue saw a YoY decline in Information Services.
- Significant investments in marketing and development impacting profitability.
- Uncertainty in real estate market trends could impact future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income