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

Q3 2019 Highlights

  • CoStar Group revenue was $353 million, up 15% y/y
  • Net income was $79 million, an increase of 34%y/y
  • EBITDA was $113 million, an increase of 24%, y/y
  • Adjusted EBITDA margin was 37% and gross margin was 80%
  • Company-wide net new bookings were $50 million, an increase of 27% year-over-year.
  • Both CoStar Suite and Apartments.com sales teams each achieved more than 30% growth y/y
  • Through the first three quarters of this year, CSGP quarterly net new sales average was $52 million, a 32% increase y/y
  • Apartments.com moved past the $500 million annualized run-rate
  • Multifamily total addressable market is between $8-$10 billion
  • In July and August, the Apartments.com network reached all-time highs in unique visitors according to ComScore with nearly 60 million visits in August 2019, an increase of 8 million over August 2018.
  • Closed the acquisition of STR for $450 million. STR aggregates data from over 65,000 hotels worldwide, representing nearly nine million guest rooms in over 180 countries.
  • STR expands CSGP global footprint. CoStar Group now has over 4,400 employees in 19 countries, with over 600 working outside of the United States.
  • LoopNet and its related sites are now generating 6.6 million unique visitors per month, a 16% increase year-over-year as reported by Google Analytics.
  • According to Hitwise, LoopNet has almost 2,000% more traffic than the second most heavily trafficked website, WeWork.com.
  • For the 22,000 CRE keywords we prioritize, LoopNet holds the number one SEO position on Google 86% of the time.
  • We expect to increase our investment in marketing for Apartments.com from approximately $150 million in 2019 to $250 million in 2020. That is a $100 million incremental increase in marketing spend.
  • After an FTC Monitor’s investigation, along with other overwhelming evidence of willful copyright infringement perpetrated by Xceligent under its CEO Doug Curry, the Department of Justice appointed Trustee has agreed to the entry of a judgment of $500 million dollars against Xceligent in favor of CoStar for copyright infringement. This $500 million dollar judgment would be the largest copyrighted image judgement in history and the 3rd largest copyright judgement of any kind.