Why Invest

Message from Andy Florance

CEO Photo

CoStar Group Update

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.

Message from Andrew Florance, Founder & CEO

Why CoStar!

CoStar Group holds a leadership position in the exciting transformation of a multi-trillion dollar real estate industry from offline to online. Because of our exceptional technology, deep understanding of real estate, and the value of the connected commercial real estate communities, we have created transformative value for our clients. Approximately 42 million people come to our websites and we have earned the business of 150,000 subscribers.

This has enabled us to balance investment back into our business while significantly expanding our margins. We have proven that we can grow the top line, expand margins and still make significant investments in the business. We have positioned the Company for the enormous long-term opportunity that lies ahead of us well with an exceptionally strong balance sheet.

Quarterly Results

Q2 2019 Highlights

  • CoStar Group total revenue was $344 million, up 16% y/y
  • Net incomewas $63 million, an increase of 44% y/y
  • EBITDA was $94 million, an increase of 45% y/y. 
  • Best sales quarter ever, generating $59 million in company-wide net new bookings, an increase of 32% y/y.
  • Apartments.com net new bookings alone increased 122% y/y. In 2Q, we sold $6 million in Diamond Plus ads at an average of approximately $3,600 per month with apartment communities in some markets are paying as much as $7,500 per month. 
  • CoStar Suite revenue growth was strong and crossed the $600 million revenue run rate in the second quarter.
  • Now have over 150,000 individual subscribers to CoStar Suite.
  • We are growing the CoStar sales force. We entered 2019 with 213 reps in production. We now have 262 and we hope to reach 300 reps selling CoStar and LoopNet by the end of the year.
  • CoStar Real Estate Manager, Lands of America, and BizBuySell have combined annualized revenue of $108 million.
  • Subscription based revenue has grown to 82% of our overall revenue.
  • Apartments.com achieved all-time highs in unique visitors and number of visits. In 2Q, the Apartments.com network had 173 million visits, up 21% y/y. 
  • 70% of apartments that have delivered in the last two years are advertising with Apartments.com
  • We plan to add another 100 apartment sales people in an outbound sales team, effectively increasing the size of our apartment sales team by nearly 40% to nearly 370. 
  • LoopNet averaged 5.8 million unique visitors per month, up 19% year-over-year.
  • All East Coast research opportunities are being consolidated into our Richmond office, as we further establish Richmond as our Marketing Research HQ. We will soon have close to 950 people based in Richmond.