Message from CEO

February 2020

CoStar continued to deliver outstanding growth throughout 2019 in all aspects of our business, including strong revenues, sales results and profitability. As we progress into 2020, the fundamentals of the commercial real estate industry remain strong and we are moving forward with confidence.

Over the past year, we continued to demonstrate our ability to invest in our products and brand while increasing profitability and hitting new highs in revenues, sales and operating margins. 2019 marked the first year we achieved just over half a billion in adjusted EBITDA, an encouraging milestone. We believe our investments will lead to sustainable future growth, and we do not currently plan to slow our investment pace. In fact, in 2020, we will to launch our largest marketing campaign ever for Apartments.com, spending approximately $250 million to drive unaided brand awareness higher and increase traffic to the Apartments.com network.

Equally exciting, 2019 marked LoopNet’s first year as a pure online marketplace, and we launched our redesigned LoopNet Signature Ads with a successful sales campaign as well – delivering significant results in the fourth quarter of 2019. Now, following an intensive training program at the beginning of this year, our combined CoStar and LoopNet sales force is vigorously selling both CoStar Suite and LoopNet Signature ads, with a current focus on sales of LoopNet. Our value proposition is truly unique, especially for owners of commercial real estate and we expect strong growth in 2020 and beyond. 

In 2019, we maintained our strategy of augmenting organic growth with acquired growth. This included the acquisition of STR, the global leader in benchmarking and analytics for the hospitality industry. We also recently announced our agreement to acquire RentPath from Chapter 11 bankruptcy, representing another step in our acquired growth strategy. We continue to expect to reach our goal of a $3 billion revenue run rate in 2023.

We continue to build upon our well-established track record for creating new value through integration of services and acquisitions, while maintaining an unyielding focus on delivering innovations, information and improvements that help our clients achieve more every day. We’re confident about 2020, and anticipate it will be a year of strong growth and success for CoStar Group. 

Andrew C. Florance
Founder and Chief Executive Officer