CoStar GroupFull Year 2021 Revenue Increased 17% Year-over-Year and Fourth Quarter Net Sales Bookings Grew 37% to a Record $67 Million

February 22, 2022

CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the commercial and residential property markets, announced today that revenue for the year ended December 31, 2021, was $1.94 billion, an increase of 17% over revenue of $1.66 billion for the full year of 2020. Revenue for the fourth quarter of 2021, was $507 million, an increase of 14% over revenue of $444 million for the fourth quarter of 2020.

Net income for the year ended December 31, 2021, was $293 million, an increase of 29% compared to net income of $227 million for the full year of 2020. Net income for the fourth quarter of 2021 was $93 million, or $0.24 per diluted share, an increase of 160% compared to net income of $36 million for the fourth quarter of 2020. EBITDA for the full year of 2021 was $565 million, an increase of 39% compared to EBITDA of $406 million for the full year of 2020.

“2021 was another very strong year for CoStar Group in terms of both revenue and sales growth,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “Our fourth quarter 2021 revenue run rate is now over $2 billion and our sales production has never been stronger. Company-wide net sales bookings for 2021 increased 18% year-over-year to $217 million, while net sales bookings in the fourth quarter of 2021 reached an all-time high of $67 million.”

“I’m particularly pleased with the revenue growth acceleration in CoStar,” stated Florance, “which began the year with 4% year-over-year revenue growth in the first quarter and ended the year with 13% year-over-year revenue growth in the fourth quarter. Net sales bookings for CoStar in the fourth quarter were virtually in-line with the record level of net sales bookings CoStar delivered in the third quarter of 2021. Even more encouraging, net sales bookings for Apartments.com increased sharply in the fourth quarter of 2021, indicating that the slowdown in revenue growth and sales bookings that we experienced earlier in the year is potentially behind us.”

“2021 was our first full year in the residential property space,” continued Florance, “and we are off to a strong start with revenue of $75 million. Revenue from our Homesnap products grew over 50% for the full year 2021 on a year-over-year pro forma basis. With an addressable market almost three times the size of our existing business, we believe that the residential property opportunity has the potential to add billions in revenue to CoStar Group over the medium to long term. In order to take advantage of this significant growth opportunity, we plan to increase the level of investment in residential products, content, sales and marketing in 2022.”

Year 2020-2021 Quarterly Results - Unaudited

(in millions, except per share data)

 

2020

 

2021

 

Q1

Q2

Q3

Q4

 

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

 

Revenues

$392

$397

$426

$444

 

$458

$480

$499

$507

Net income

73

60

58

36

 

74

61

64

93

Net income per share - diluted(1)

0.20

0.16

0.15

0.09

 

0.19

0.16

0.16

0.24

Weighted average outstanding shares - diluted(1)

368

377

394

394

 

394

394

394

395

 

 

 

 

 

 

 

 

 

 

EBITDA

100

109

108

88

 

136

133

123

173

Adjusted EBITDA

124

129

134

167

 

160

150

144

193

Non-GAAP net income

90

88

89

112

 

108

103

99

138

Non-GAAP net income per share - diluted(1)

0.24

0.23

0.23

0.29

 

0.27

0.26

0.25

0.35

__________________________

 

 

 

 

 

 

 

 

 

(1) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

As of December 31, 2021, the Company had approximately $3.8 billion in cash, cash equivalents and restricted cash and outstanding debt of approximately $1.0 billion.

2022 Outlook

The Company expects revenue in the range of $2.145 billion to $2.165 billion for the full year of 2022, representing growth of approximately 11% year-over-year at the midpoint of the range. We expect revenue for the first quarter of 2022 in the range of $510 million to $515 million, representing revenue growth of approximately 12% year-over-year at the midpoint of the range.

Full year 2022 revenue estimates include approximately $70 million of revenue from our Residential products, representing growth of approximately 15% year-over-year after adjusting for certain legacy Homes.com product revenues that were discontinued in 2021. The Company is planning to increase the level of investment in Residential to a range of approximately $300 to $320 million for the full year 2022, representing an increase in the range of $200 million to $220 million.

The Company expects adjusted EBITDA in a range of $565 million to $605 million for the full year of 2022, a decrease of $62 million, or 10%, at the midpoint of the range compared to 2021. For the first quarter of 2022, the Company expects adjusted EBITDA in a range of $155 million to $160 million. Excluding the Residential product revenue and investments, adjusted EBITDA is expected to be in a range of $815 million to $835 million for the full year of 2022.

“I am very pleased with the strong financial performance in 2021, which we expect to continue in 2022” said Scott T. Wheeler, Chief Financial Officer of CoStar Group. “Notwithstanding our Residential growth investments, our commercial property information and marketplace businesses are expected to deliver profit margins of approximately 40% in 2022, which would achieve our long-term goal of 40% adjusted EBITDA margins by 2023 one full year ahead of schedule.”

We expect full year 2022 non-GAAP net income per diluted share in a range of $0.95 to $1.02 based on 395 million shares. For the first quarter of 2022, we expect non-GAAP net income per diluted share in a range of $0.27 to $0.28 based on 394 million shares. These ranges include an estimated non-GAAP tax rate of 25% for the full year and the first quarter of 2022.

The preceding forward-looking statements reflect CoStar Group’s expectations as of February 22, 2022, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations, and trends. 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 and the real estate industry, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.

Reconciliation of EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share to their GAAP basis results are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income, can be found within the tables included in this release.

Quarterly historical revenue under the new disaggregated revenue categories announced on October 26, 2021, can be found in the tables below.

Non-GAAP Financial Measures

For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refer to the Company’s latest periodic report.

EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before interest (expense) income and other (expense) income, loss on debt extinguishment, income taxes, depreciation and amortization.

Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, and settlements and impairments incurred outside the Company’s normal course of business. Adjusted EBITDA margin represents adjusted EBITDA divided by revenues for the period.

Non-GAAP net income is a non-GAAP financial measure determined by adjusting GAAP net income attributable to CoStar Group for stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, settlement and impairment costs incurred outside the Company's normal course of business and loss on debt extinguishment, as well as amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. In 2021, the Company is assuming a 25% tax rate in order to approximate our statutory corporate tax rate excluding the impact of discrete items.

Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share. For periods with GAAP net losses and non-GAAP net income, the weighted average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.

Earnings Conference Call
Management will conduct a conference call to discuss the fourth quarter and full year 2021 results and the Company’s outlook at 5:00 PM EST on Tuesday, February 22, 2022. A live audio webcast of the conference will be available in listen-only mode through the Investors section of the CoStar Group website: https://investors.costargroup.com. A replay of the webcast audio will also be available in the Investors section of our website for a period of time following the call.

CoStar Group, Inc.

Condensed Consolidated Statements of Operations - Unaudited

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2021

 

2020

 

2021

 

2020

Revenues

 

$ 506,786

 

$ 444,393

 

$ 1,944,135

 

$ 1,659,019

Cost of revenues

 

86,330

 

78,154

 

357,241

 

308,968

Gross profit

 

420,456

 

366,239

 

1,586,894

 

1,350,051

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling and marketing (excluding customer base amortization)

 

138,653

 

133,576

 

622,007

 

535,778

Software development

 

52,522

 

41,573

 

201,022

 

162,916

General and administrative

 

69,964

 

118,100

 

256,711

 

299,698

Customer base amortization

 

18,932

 

17,780

 

74,817

 

62,457

 

 

280,071

 

311,029

 

1,154,557

 

1,060,849

 

 

 

 

 

 

 

 

 

Income from operations

 

140,385

 

55,210

 

432,337

 

289,202

Interest expense, net

 

(7,923)

 

(7,913)

 

(31,621)

 

(17,395)

Other income (expense)

 

909

 

(856)

 

3,252

 

(827)

Income before income taxes

 

133,371

 

46,441

 

403,968

 

270,980

Income tax expense

 

40,471

 

10,652

 

111,404

 

43,852

Net income

 

$ 92,900

 

$ 35,789

 

$ 292,564

 

$ 227,128

 

 

 

 

 

 

 

 

 

Net income per share - basic(1)

 

$ 0.24

 

$ 0.09

 

$ 0.75

 

$ 0.60

Net income per share - diluted(1)

 

$ 0.24

 

$ 0.09

 

$ 0.74

 

$ 0.59

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares - basic(1)

 

392,538

 

391,372

 

392,210

 

380,726

Weighted-average outstanding shares - diluted(1)

 

394,532

 

393,951

 

394,160

 

383,266

__________________________

 

 

 

 

 

 

 

 

(1) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

CoStar Group, Inc.

Reconciliation of Non-GAAP Financial Measures - Unaudited

(in thousands, except per share data)

 

Reconciliation of Net Income to Non-GAAP Net Income

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net income

 

$

92,900

 

 

$

35,789

 

 

$

292,564

 

 

$

227,128

 

Income tax expense

 

 

40,471

 

 

 

10,652

 

 

 

111,404

 

 

 

43,852

 

Income before income taxes

 

 

133,371

 

 

 

46,441

 

 

 

403,968

 

 

 

270,980

 

Amortization of acquired intangible assets

 

 

26,176

 

 

 

24,784

 

 

 

103,626

 

 

 

88,132

 

Stock-based compensation expense

 

 

16,721

 

 

 

12,667

 

 

 

63,709

 

 

 

54,104

 

Acquisition and integration related costs

 

 

3,243

 

 

 

65,892

 

 

 

18,718

 

 

 

92,523

 

Restructuring and related costs

 

 

 

 

 

 

 

 

 

 

 

413

 

Other expense

 

 

4,112

 

 

 

 

 

 

6,903

 

 

 

113

 

Non-GAAP income before income taxes

 

 

183,623

 

 

 

149,784

 

 

 

596,924

 

 

 

506,265

 

Assumed rate for income tax expense(1)

 

 

25

%

 

 

25

%

 

 

25

%

 

 

25

%

Assumed provision for income tax expense

 

 

(45,906

)

 

 

(37,446

)

 

 

(149,231

)

 

 

(126,566

)

Non-GAAP net income

 

$

137,717

 

 

$

112,338

 

 

$

447,693

 

 

$

379,699

 

 

 

 

 

 

 

 

 

 

Net income per share - diluted(2)

 

$

0.24

 

 

$

0.09

 

 

$

0.74

 

 

$

0.59

 

Non-GAAP net income per share - diluted(2)

 

$

0.35

 

 

$

0.29

 

 

$

1.14

 

 

$

0.99

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares - basic(2)

 

 

392,538

 

 

 

391,372

 

 

 

392,210

 

 

 

380,726

 

Weighted average outstanding shares - diluted(2)

 

 

394,532

 

 

 

393,951

 

 

 

394,160

 

 

 

383,266

 

__________________________

 

 

 

 

 

 

 

 

(1) The assumed 25% tax rate approximates our statutory federal and state corporate tax rate.

(2) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net income

 

$

92,900

 

 

$

35,789

 

 

$

292,564

 

 

$

227,128

 

Amortization of acquired intangible assets in cost of revenues

 

 

7,244

 

 

 

7,004

 

 

 

28,809

 

 

 

25,675

 

Amortization of acquired intangible assets in operating expenses

 

 

18,932

 

 

 

17,780

 

 

 

74,817

 

 

 

62,457

 

Depreciation and other amortization

 

 

6,880

 

 

 

8,249

 

 

 

29,018

 

 

 

28,812

 

Interest expense

 

 

7,923

 

 

 

7,913

 

 

 

31,621

 

 

 

17,395

 

Other (income) expense

 

 

(909

)

 

 

856

 

 

 

(3,252

)

 

 

827

 

Income tax expense

 

 

40,471

 

 

 

10,652

 

 

 

111,404

 

 

 

43,852

 

EBITDA

 

$

173,441

 

 

$

88,243

 

 

$

564,981

 

 

$

406,146

 

Stock-based compensation expense

 

 

16,721

 

 

 

12,667

 

 

 

63,709

 

 

 

54,104

 

Acquisition and integration related costs

 

 

3,243

 

 

 

65,892

 

 

 

18,718

 

 

 

92,523

 

Restructuring and related costs

 

 

 

 

 

 

 

 

 

 

 

413

 

Adjusted EBITDA

 

$

193,405

 

 

$

166,802

 

 

$

647,408

 

 

$

 

553,186 

 

 

CoStar Group, Inc.

Condensed Consolidated Balance Sheets - Unaudited

(in thousands)

 

 

 

 

 

 

 

December 31,
2021

 

December 31,
2020

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

3,827,126

 

 

$

3,755,912

 

Accounts receivable

 

 

138,191

 

 

 

119,059

 

Less: Allowance for credit losses

 

 

(13,374

)

 

 

(15,110

)

Accounts receivable, net

 

 

124,817

 

 

 

103,949

 

Prepaid expenses and other current assets

 

 

36,182

 

 

 

28,651

 

Total current assets

 

 

3,988,125

 

 

 

3,888,512

 

 

 

 

 

 

Deferred income taxes, net

 

 

5,034

 

 

 

4,983

 

Property and equipment, net

 

 

271,431

 

 

 

126,325

 

Lease right-of-use assets

 

 

100,680

 

 

 

108,740

 

Goodwill

 

 

2,321,015

 

 

 

2,235,999

 

Intangible assets, net

 

 

435,662

 

 

 

426,745

 

Deferred commission costs, net

 

 

101,879

 

 

 

93,274

 

Deposits and other assets

 

 

21,762

 

 

 

15,856

 

Income tax receivable

 

 

11,283

 

 

 

14,986

 

Total assets

 

$

7,256,871

 

 

$

6,915,420

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

22,244

 

 

$

15,732

 

Accrued wages and commissions

 

 

81,794

 

 

 

80,998

 

Accrued expenses

 

 

81,676

 

 

 

110,305

 

Income taxes payable

 

 

31,236

 

 

 

16,316

 

Lease liabilities

 

 

26,268

 

 

 

32,648

 

Deferred revenue

 

 

95,471

 

 

 

74,851

 

Total current liabilities

 

 

338,689

 

 

 

330,850

 

 

 

 

 

 

Long-term debt, net

 

 

987,944

 

 

 

986,715

 

Deferred income taxes, net

 

 

98,656

 

 

 

72,991

 

Income taxes payable

 

 

12,496

 

 

 

25,282

 

Lease and other long-term liabilities

 

 

107,414

 

 

 

124,223

 

Total liabilities

 

$

1,545,199

 

 

$

1,540,061

 

 

 

 

 

 

Total stockholders’ equity

 

 

5,711,672

 

 

 

5,375,359

 

Total liabilities and stockholders’ equity

 

$

7,256,871

 

 

$

6,915,420

 

CoStar Group, Inc.

Condensed Consolidated Statements of Cash Flows - Unaudited

(in thousands)

 

 

 

Year Ended

December 31,

 

 

2021

 

 

 

2020

 

Operating activities:

 

 

 

Net income

$

292,564

 

 

$

227,128

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

139,558

 

 

 

116,944

 

Amortization of deferred commissions costs

 

63,391

 

 

 

60,516

 

Amortization of Senior Notes discount and issuance costs

 

2,327

 

 

 

1,658

 

Non-cash lease expense

 

28,485

 

 

 

26,326

 

Stock-based compensation expense

 

63,709

 

 

 

53,450

 

Deferred income taxes, net

 

24,165

 

 

 

(11,530

)

Credit loss expense

 

10,928

 

 

 

25,212

 

Other operating activities, net

 

(654

)

 

 

288

 

 

 

 

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

 

(29,630

)

 

 

(36,118

)

Prepaid expenses and other current assets

 

(14,873

)

 

 

1,936

 

Deferred commissions

 

(72,038

)

 

 

(64,355

)

Accounts payable and other liabilities

 

(30,051

)

 

 

100,846

 

Lease liabilities

 

(30,904

)

 

 

(30,497

)

Income taxes payable

 

5,860

 

 

 

10,352

 

Deferred revenue

 

17,396

 

 

 

2,188

 

Other assets

 

(502

)

 

 

1,762

 

Net cash provided by operating activities

 

469,731

 

 

 

486,106

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale and settlement of investments

 

 

 

 

10,259

 

Proceeds from sale of property and equipment and other assets

 

612

 

 

 

 

Purchase of Richmond assets and other intangibles

 

(123,764

)

 

 

 

Purchases of property and equipment and other assets

 

(65,220

)

 

 

(48,347

)

Cash paid for acquisitions, net of cash acquired

 

(192,971

)

 

 

(426,075

)

Net cash used in investing activities

 

(381,343

)

 

 

(464,163

)

 

 

 

 

Financing activities:

 

 

 

Proceeds from long-term debt

 

 

 

 

1,744,210

 

Payments of debt issuance costs

 

 

 

 

(16,647

)

Payments of long-term debt

 

 

 

 

(745,000

)

Repurchase of restricted stock to satisfy tax withholding obligations

 

(33,314

)

 

 

(38,867

)

Proceeds from equity offering, net of transaction costs

 

 

 

 

1,689,971

 

Proceeds from exercise of stock options and employee stock purchase plan

 

18,046

 

 

 

30,280

 

Other financing activities

 

(411

)

 

 

(1,650

)

Net cash (used in) provided by financing activities

 

(15,679

)

 

 

2,662,297

 

 

 

 

 

Effect of foreign currency exchange rates on cash and cash equivalents

 

(1,495

)

 

 

941

 

Net increase in cash, cash equivalents and restricted cash

 

71,214

 

 

 

2,685,181

 

Cash, cash equivalents and restricted cash at the beginning of period

 

3,755,912

 

 

 

1,070,731

 

Cash, cash equivalents and restricted cash at the end of period

$

3,827,126

 

 

$

3,755,912

 

CoStar Group, Inc.

Disaggregated Revenues - Unaudited

(in thousands)

 

 

 

Three Months Ended December 31,

 

2021

 

2020

 

North America

 

International

 

Total

 

North America

 

International

 

Total

CoStar

$

181,478

 

$

8,915

 

$

190,393

 

$

160,842

 

$

7,896

 

$

168,738

Information Services

 

28,764

 

 

7,112

 

 

35,876

 

 

27,048

 

 

6,930

 

 

33,978

Multifamily

 

170,051

 

 

 

 

170,051

 

 

160,370

 

 

 

 

160,370

LoopNet(1)

 

53,046

 

 

1,613

 

 

54,659

 

 

48,023

 

 

178

 

 

48,201

Residential(1)

 

20,644

 

 

 

 

20,644

 

 

 

 

 

 

Other Marketplaces(1)

 

35,163

 

 

 

 

35,163

 

 

33,106

 

 

 

 

33,106

Total revenues

$

489,146

 

$

17,640

 

$

506,786

 

$

429,389

 

$

15,004

 

$

444,393

__________________________

 

 

 

 

 

 

 

 

 

 

(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

2021

 

2020

 

North America

 

International

 

Total

 

North America

 

International

 

Total

CoStar

$

686,948

 

$

35,873

 

$

722,821

 

$

634,205

 

$

30,530

 

$

664,735

Information Services

 

113,723

 

 

27,932

 

 

141,655

 

 

104,117

 

 

25,953

 

 

130,070

Multifamily

 

678,680

 

 

 

 

678,680

 

 

598,555

 

 

 

 

598,555

LoopNet(1)

 

204,816

 

 

2,695

 

 

207,511

 

 

179,371

 

 

434

 

 

179,805

Residential(1)

 

74,583

 

 

 

 

74,583

 

 

 

 

 

 

Other Marketplaces(1)

 

118,885

 

 

 

 

118,885

 

 

85,854

 

 

 

 

85,854

Total revenues

$

1,877,635

 

$

66,500

 

$

1,944,135

 

$

1,602,102

 

$

56,917

 

$

1,659,019

__________________________

 

 

 

 

 

 

 

 

 

 

(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation.

CoStar Group, Inc.

Disaggregated Revenues - Unaudited

(in thousands)

 

 

 

 

 

2020

 

2021

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

CoStar

$

164,956

 

$

165,053

 

$

165,988

 

$

168,738

 

$

172,184

 

$

176,979

 

$

183,265

 

$

190,393

Information Services

 

32,382

 

 

30,536

 

 

33,174

 

 

33,978

 

 

34,696

 

 

35,157

 

 

35,926

 

 

35,876

Multifamily

 

137,460

 

 

145,541

 

 

155,184

 

 

160,370

 

 

166,147

 

 

171,357

 

 

171,125

 

 

170,051

LoopNet(1)

 

43,200

 

 

43,320

 

 

45,084

 

 

48,201

 

 

49,230

 

 

51,095

 

 

52,527

 

 

54,659

Residential(1)

 

 

 

 

 

 

 

 

 

11,105

 

 

18,087

 

 

24,747

 

 

20,644

Other Marketplaces(1)

 

13,849

 

 

12,709

 

 

26,190

 

 

33,106

 

 

24,335

 

 

27,658

 

 

31,729

 

 

35,163

Total revenues

$

391,847

 

$

397,159

 

$

425,620

 

$

444,393

 

$

457,697

 

$

480,333

 

$

499,319

 

$

506,786

__________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CoStar Group, Inc.

Results of Segments - Unaudited

(in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

EBITDA

 

 

 

 

 

 

 

North America

$

171,268

 

$

88,241

 

$

557,125

 

$

410,852

 

International

 

2,173

 

 

2

 

 

7,856

 

 

(4,706

)

Total EBITDA

$

173,441

 

$

88,243

 

$

564,981

 

$

406,146 

 

CoStar Group, Inc.

Reconciliation of Non-GAAP Financial Measures with 2020-2021 Quarterly Results - Unaudited

(in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to Non-GAAP Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2021

 

 

 

Q1

Q2

Q3

Q4

 

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

72.8

 

$

60.4

 

$

58.2

 

$

35.8

 

 

$

74.2

 

$

61.1

 

$

64.3

 

$

92.9

 

Income tax expense

 

 

5.6

 

 

16.9

 

 

10.7

 

 

10.7

 

 

 

19.1

 

 

32.8

 

 

19.0

 

 

40.5

 

Income before income taxes

 

 

78.4

 

 

77.3

 

 

68.9

 

 

46.4

 

 

 

93.3

 

 

93.9

 

 

83.3

 

 

133.4

 

Amortization of acquired intangible assets

 

 

17.5

 

 

21.0

 

 

24.9

 

 

24.8

 

 

 

25.8

 

 

25.3

 

 

26.3

 

 

26.2

 

Stock-based compensation expense

 

 

15.2

 

 

9.5

 

 

16.7

 

 

12.7

 

 

 

15.5

 

 

15.1

 

 

16.3

 

 

16.7

 

Acquisition and integration related costs

 

 

8.7

 

 

10.0

 

 

7.9

 

 

65.9

 

 

 

8.5

 

 

2.0

 

 

5.0

 

 

3.2

 

Restructuring and related costs

 

 

 

 

 

 

0.4

 

 

 

 

 

 

 

 

 

 

 

 

Other expense

 

 

 

 

 

 

0.1

 

 

 

 

 

1.1

 

 

0.8

 

 

0.9

 

 

4.1

 

Non-GAAP income before income taxes(1)

 

 

119.8

 

 

117.8

 

 

118.9

 

 

149.8

 

 

 

144.2

 

 

137.1

 

 

131.8

 

 

183.6

 

Assumed rate for income tax expense (2)

 

 

25

%

 

25

%

 

25

%

 

25

%

 

 

25

%

 

25

%

 

25

%

 

25

%

Assumed provision for income tax expense

 

 

(30.0

)

 

(29.5

)

 

(29.7

)

 

(37.5

)

 

 

(36.0

)

 

(34.3

)

 

(33.0

)

 

(45.9

)

Non-GAAP net income(1)

 

$

89.8

 

$

88.3

 

$

89.2

 

$

112.3

 

 

$

108.2

 

$

102.8

 

$

98.8

 

$

137.7

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share - diluted(3)

 

$

0.24

 

$

0.23

 

$

0.23

 

$

0.29

 

 

$

0.27

 

$

0.26

 

$

0.25

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares - basic(3)

 

 

364.7

 

 

375.2

 

 

391.6

 

 

391.4

 

 

 

391.6

 

 

392.3

 

 

392.4

 

 

392.5

 

Weighted average outstanding shares - diluted(3)

 

 

367.8

 

 

377.3

 

 

394.0

 

 

394.0

 

 

 

393.7

 

 

394.1

 

 

394.3

 

 

394.5

 

__________________________

 

 

 

 

 

 

 

 

 

 

(1) Totals may not foot due to rounding.

(2) The assumed 25% tax rate approximates our statutory federal and state corporate tax rate.

(3) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2021

 

 

 

Q1

Q2

Q3

Q4

 

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

72.8

 

$

60.4

 

$

58.2

 

$

35.8

 

 

$

74.2

 

$

61.1

 

$

64.3

 

$

92.9

 

Amortization of acquired intangible assets

 

 

17.5

 

 

21.0

 

 

24.9

 

 

24.8

 

 

 

25.8

 

 

25.3

 

 

26.3

 

 

26.2

 

Depreciation and other amortization

 

 

6.8

 

 

7.0

 

 

6.8

 

 

8.2

 

 

 

8.5

 

 

7.0

 

 

6.6

 

 

6.9

 

Interest (income) expense

 

 

(1.7

)

 

3.6

 

 

7.5

 

 

7.9

 

 

 

7.9

 

 

7.9

 

 

7.9

 

 

7.9

 

Other (income) expense

 

 

(0.8

)

 

0.4

 

 

0.3

 

 

0.9

 

 

 

0.1

 

 

(0.8

)

 

(1.5

)

 

(0.9

)

Income tax expense

 

 

5.6

 

 

16.9

 

 

10.7

 

 

10.7

 

 

 

19.1

 

 

32.8

 

 

19.0

 

 

40.5

 

EBITDA(1)

 

$

100.2

 

$

109.3

 

$

108.4

 

$

88.3

 

 

$

135.6

 

$

133.3

 

$

122.6

 

$

173.4

 

Stock-based compensation expense

 

 

15.1

 

 

9.5

 

 

16.7

 

 

12.7

 

 

 

15.5

 

 

15.1

 

 

16.3

 

 

16.7

 

Acquisition and integration related costs

 

 

8.7

 

 

10.0

 

 

7.9

 

 

65.9

 

 

 

8.5

 

 

2.0

 

 

5.0

 

 

3.2

 

Restructuring and related costs

 

 

 

 

 

 

0.4

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

 

$

124.0

 

$

128.8

 

$

133.4

 

$

166.9

 

 

$

159.6

 

$

150.4

 

$

143.9

 

$

193.4

 

__________________________

 

 

 

 

 

 

 

 

 

 

(1) Totals may not foot due to rounding. 

CoStar Group, Inc.

Reconciliation of Forward-Looking Guidance - Unaudited

(in thousands, except per share data)

 

Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income

 

 

 

 

 

Guidance Range

 

Guidance Range

 

For the Three Months

 

For the Year Ending

 

Ending March 31, 2022

 

December 31, 2022

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

Net income

$

73,000

 

 

$

77,000

 

 

$

249,000

 

 

$

279,000

 

Income tax expense

 

23,000

 

 

 

24,000

 

 

 

82,000

 

 

 

92,000

 

Income before income taxes

 

96,000

 

 

 

101,000

 

 

 

331,000

 

 

 

371,000

 

Amortization of acquired intangible assets

 

23,000

 

 

 

23,000

 

 

 

87,000

 

 

 

87,000

 

Stock-based compensation expense

 

18,000

 

 

 

18,000

 

 

 

78,000

 

 

 

78,000

 

Acquisition and integration related costs

 

2,000

 

 

 

2,000

 

 

 

2,000

 

 

 

2,000

 

Other expense

 

1,000

 

 

 

1,000

 

 

 

1,000

 

 

 

1,000

 

Non-GAAP income before income taxes

 

140,000

 

 

 

145,000

 

 

 

499,000

 

 

 

539,000

 

Assumed rate for income tax expense(1)

 

25

%

 

 

25

%

 

 

25

%

 

 

25

%

Assumed provision for income tax expense

 

(35,000

)

 

 

(36,300

)

 

 

(124,800

)

 

 

(134,800

)

Non-GAAP net income

$

105,000

 

 

$

108,700

 

 

$

374,200

 

 

$

404,200

 

 

 

 

 

 

 

 

 

Net income per share - diluted(2)

$

0.19

 

 

$

0.20

 

 

$

0.63

 

 

$

0.71

 

Non-GAAP net income per share - diluted(2)

$

0.27

 

 

$

0.28

 

 

$

0.95

 

 

$

1.02

 

 

 

 

 

 

 

 

 

Weighted average outstanding shares - diluted(2)

 

394,400

 

 

 

394,400

 

 

 

394,700

 

 

 

394,700

 

__________________________

 

 

 

 

 

 

 

(1) The assumed 25% tax rate approximates our statutory federal and state corporate tax rate.

(2) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

 

 

 

 

 

 

 

 

Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA

 

 

 

 

 

Guidance Range

 

Guidance Range

 

For the Three Months

 

For the Year Ending

 

Ending March 31, 2022

 

December 31, 2022

 

Low

 

High

 

Low

 

High

Net income

$

73,000

 

 

$

77,000

 

 

$

249,000

 

 

$

279,000

 

Amortization of acquired intangible assets

 

23,000

 

 

 

23,000

 

 

 

87,000

 

 

 

87,000

 

Depreciation and other amortization

 

8,000

 

 

 

8,000

 

 

 

36,000

 

 

 

36,000

 

Interest expense

 

8,000

 

 

 

8,000

 

 

 

32,000

 

 

 

32,000

 

Other (income)

 

 

 

 

 

 

 

(1,000

)

 

 

(1,000

)

Income tax expense

 

23,000

 

 

 

24,000

 

 

 

82,000

 

 

 

92,000

 

Stock-based compensation expense

 

18,000

 

 

 

18,000

 

 

 

78,000

 

 

 

78,000

 

Acquisition and integration related costs

 

2,000

 

 

 

2,000

 

 

 

2,000

 

 

 

2,000

 

Adjusted EBITDA

$

155,000

 

 

$

160,000

 

 

$

565,000

 

 

$

605,000

 

About CoStar Group, Inc.
CoStar Group, Inc. (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information and analytics. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com offers real estate professionals advertising and marketing services for residential properties. Realla is the UK’s most comprehensive commercial property digital marketplace. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada and Asia. From time to time we plan to utilize our corporate website, www.costargroup.com, as a channel of distribution for material company information.

This news release and the Company’s earnings conference call contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar Group's plans, objectives, expectations, beliefs and intentions and other statements including words such as “hope,” “anticipate,” “may,” “believe,” “expect,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar Group and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. The following factors, among others, could cause or contribute to such differences: the risk that the trends stated or implied by this release or in the earnings conference call cannot or will not be sustained at the current pace or may increase or decrease, including trends and expectations related to revenue, revenue growth, net income, non-GAAP net income, EBITDA, adjusted EBITDA, adjusted EBITDA margin, sales, net sales bookings, site traffic and visitors, leads, and renewal rates; the risk that the Company is unable to sustain current Company-wide, CoStar or Apartments net sales bookings and that the slowdown in revenue growth and sales bookings that Apartments.com experienced earlier in 2021 is not yet fully resolved; the risk that the Company is unable to realize the full potential of the residential property opportunity as stated in this press release; the risk that the level of investment in residential products, content, sales and marketing is not as expected and set forth in this press release or changes; the risk that revenues for the first quarter and full year 2022 will not be as stated in this press release; the risk that revenues from Residential products for the full year 2022 will not be as stated in this press release; the risk that net income for the first quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the first quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the full year 2022, excluding the Residential product revenue and investments, will not be as stated in this press release; the risk that profit margins for commercial property information and marketplace businesses in 2022, excluding Residential growth investments, will not be as stated in this press release; the risk that non-GAAP net income and non-GAAP net income per diluted share for the first quarter and full year 2022 will not be as stated in this press release; the risk that the tax rate estimates stated in this press release may change; uncertainty surrounding the impact of the COVID-19 pandemic, including volatility in the international and U.S. economy and the real estate industry, employee attrition, absenteeism or decreased productivity, quarantines or other travel or health-related restrictions; the length and severity of the COVID-19 pandemic; the pace of recovery following the COVID-19 pandemic; and government and private actions taken to control the spread of COVID-19. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar Group’s filings from time to time with the Securities and Exchange Commission, including in CoStar Group’s Annual Report on Form 10-K for the year ended December 31, 2020 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar Group’s other filings with the SEC (including Current Reports on Form 8-K) available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar Group on the date hereof, and CoStar Group assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations:
Bill Warmington
Vice President
CoStar Group Investor Relations
(202) 346-5661
wwarmington@costar.com

News Media:
Matthew Blocher
Vice President
CoStar Group Corporate Marketing & Communications
(202) 346-6775
mblocher@costargroup.com

Source: CoStar Group, Inc.