Message from CEO

February 2019

In 2018 we had our best year ever and we are moving into 2019 in a strong commercial real estate market, with great products, great clients, great research, and a phenomenal sales team. We believe that 2019 will be another great year.

The past five years have proven that we can grow the top line, expand margins and still make significant growth investments into the business. Some of those recent investments include the Richmond research center; expanding and marketing the Apartments.com network; growing our sales team; integrating the CoStar and LoopNet databases, and expanding our Canadian and European businesses.

Those investments have allowed us to build powerful, profitable businesses with strong leadership positions with CoStar Suite, the Apartments network, CoStar Real Estate Manager, and LoopNet

Back in 2014, we set two key goals for 2018. One was to achieve $1 billion in annual revenue and the second was to reach 40% adjusted EBITDA margin for the fourth quarter of 2018. Five years later, with $1.2 billion in revenue for the full-year and a 44% adjusted EBITDA in the fourth quarter, our team is pleased to have delivered on both of those goals.

We are setting a goal to exit 2023 at a $3 billion revenue run rate with an adjusted EBITDA margin of 40% or more for the full year.

We have $1.1 billion in cash, no debt and $351 million of growing EBIDTA to leverage. Over the years, CoStar Group has acquired dozens of companies and expects to continue acquiring companies that will bring value to our shareholders. While we anticipate acquisitions will contribute to our 2023 goals, we believe that most of our growth will be organic.

Andrew C. Florance
Founder and Chief Executive Officer