Why Invest

Message from Andy Florance

CEO Photo

CoStar Group Update

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.

Message from Andrew Florance, Founder & CEO

Why CoStar

  • Leader in transforming the $180 trillion real estate industry from offline to digital
  • Massive, proprietary dataset built over 30 years with more than a billion invested in research and technology
  • Millions of visitors view our online marketplaces for real estate making them key revenue drivers for our clients
  • Our software and technology solutions are mission critical to a large, diverse customer base
  • We have a multi-decade track record of growth – both organic and through acquisitions 
  • Our subscription revenue business model is resilient through economic cycles which in turn often provide attractive opportunities for strategic acquisitions
  • High margin, high cash flow financial model and strong balance sheet

Quarterly Results

Q1 2020 Highlights

  • Q1 2020 Revenue was $392 million, up 19% y/y
  • Net Income was $73 million, 28% above the mid-point of guidance given on February 25, 2020
  • EBITDA was $100 million
  • Adjusted EBITDA was $124 million
  • Adjusted EBITDA margins were 32%
  • Company-wide net new bookings in the first quarter were $48 million
  • Despite the impact of the Covid-19 pandemic, our marketplaces demonstrated strong performance. LoopNet had its best sales quarter ever and Apartments.com had its second-best sales quarter ever, up 34% vs prior year quarter.
  • Traffic to CoStar Group’s information and marketplace platforms reached record levels in the first quarter 2020 both individually and in aggregate with an average of 55 million total, monthly unique visitors, up from 49 million monthly unique visitors in the first quarter of 2019.
  • At the beginning of the Covid-19 pandemic, the company rapidly transitioned almost all employees to working from home and we are tracking productivity levels at approximately 90% of normal.
  • Our newly-launched brand campaign delivered impressive results, with 1.5bn impressions, nearly twice the prior year level. The campaign is also driving higher unaided brand awareness and direct traffic to our Apartments.com site.
  • CoStar has received a second request from the FTC for additional information with respect to the proposed acquisition of RentPath from Chapter 11 bankruptcy. CoStar will respond expeditiously to this request and continues to expect the proposed acquisition to close within the previously announced timeline.