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

Q3 2020 Highlights

  • Q3 2020 Revenue was $426 million, up 21% y/y
  • Net Income was $58 million, 38% above the mid-point of guidance given on July 28, 2020
  • EBITDA was $108 million
  • Adjusted EBITDA was $134 million, 9% above the mid-point of the guidance given on July 28, 2020
  • Adjusted EBITDA margins were 31%
  • Company-wide net new bookings in the first quarter were $53 million, a 53% increase in sales vs Q2 2020
  • In the second full quarter of the Covid-19 pandemic, our Information & Analytics businesses continued to demonstrate resilience and our Marketplace businesses showed further countercyclicality.
  • Traffic to CoStar Group’s information and marketplace platforms continue to reach new, record highs in the third quarter 2020 with an average of 69 million total, monthly unique visitors, up from 62 million monthly unique visitors in the second quarter of 2020.
  • For our Apartments.com network, our marketing campaign continues to drive traffic, with average monthly unique visitors up 20% year on year to 25 million visitors, according to ComScore. This record traffic continues to drive revenues, which were up 23% compared to the prior year quarter.
  • LoopNet Network’s average monthly unique visitors also hit new, all-time high of 8.3 million, which drove a record high in net new sales and y-o-y revenue growth of 19%.
  • We announced the closing of the acquisition of Emporis, a German-based international commercial real estate data provider. This acquisition will allow us to accelerate our international data collection efforts.