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

Q2 2020 Highlights

  • Q2 2020 Revenue was $397 million, up 17% y/y
  • Net Income was $60 million, 26% above the mid-point of guidance given on April 28, 2020
  • EBITDA was $109 million
  • Adjusted EBITDA was $129 million
  • Adjusted EBITDA margins were 32%
  • Company-wide net new bookings in the first quarter were $35 million
  • In the first full quarter during the Covid-19 pandemic, our businesses demonstrated resilience and, in the case of Apartments.com, countercyclicality.
  • Traffic to CoStar Group’s information and marketplace platforms reached record levels in the second quarter 2020 with an average of 62 million total, monthly unique visitors, up from 55 million monthly unique visitors in the first quarter of 2020. Traffic to our Apartments.com and LoopNet sites reached new, record levels, exceeding pre-pandemic levels.
  • Our marketing campaign for the Apartments.com brand delivered impressive results, with over 3bn impressions, nearly twice the previous quarter level. The campaign is also driving higher unaided brand awareness and direct traffic to our Apartments.com site.
  • In May 2020, CoStar raised $1.7 billion in the equity markets via a follow-on offering. In June 2020 CoStar launched its first public debt offering of $1 billion, which closed in July. We also renewed our $750 million revolving credit agreement for an additional five-year term and converted it to an unsecured structure.
  • We completed our first, virtual M&A deal with the acquisition of Ten-X, the leading platform for online commercial real estate auctions. Ten-X will be integrated into our LoopNet platform, with the goal of driving increased visibility and more potential bidders, thus improving the utility of the platform for all participants.
  • CoStar continues to comply with the second request from the FTC for additional information with respect to the proposed acquisition of RentPath from Chapter 11 bankruptcy. CoStar has responds expeditiously to this request and continues to expect the proposed acquisition to close within the previously announced timeline.