CoStar Group, Inc. Reports Third Quarter 2024 Financial Results
CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, and analytics, reported its financial results for the quarter ending September 30, 2024. Below is a summary of the company's performance and commentary on future expectations.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Y-o-Y Change | Consensus Estimate (Q3 2024) |
|---|---|---|---|---|
| Revenue | $693 million | $625 million | +11% | $696.1 million |
| Earnings Per Share (EPS) | $0.13 | NA | NA | $0.16 |
| Net Income | $53 million | NA | NA | NA |
| EBITDA | $51 million | NA | NA | NA |
| Adjusted EBITDA | $76 million | NA | NA | NA |
Interpretation: CoStar's revenue of $693 million marked an 11% increase compared to the same quarter last year, reflecting consistent growth despite falling slightly short of the projected $696.1 million by analysts. However, the notable 176% increase in net income from the previous quarter highlights the company's strong operational achievements. Although EPS of $0.13 did not meet the consensus estimate of $0.16, the marked improvement in EBITDA and Adjusted EBITDA signifies robust internal performance.
Revenue Performance by Segment
| Segment | Revenue Performance |
|---|---|
| Apartments.com | Double-digit growth |
| CoStar | Double-digit growth |
Interpretation: Both Apartments.com and CoStar segments have shown impressive double-digit revenue growth, aligning well with expectations and demonstrating the strength of CoStar's major revenue streams.
Key Developments and Operational Highlights
- 54th consecutive quarter of double-digit revenue growth.
- U.S. Homes.com network saw unaided awareness increase from 4% to 33% since February 2024.
- Considerable traffic improvements in the U.K. with a 212% increase in traffic and a 348% rise in unique visitors year-over-year after acquiring OnTheMarket.
Officer Comments
Andy Florance, Founder, and CEO commented on the strong quarterly performance, emphasizing the significant contributions from Apartments.com and CoStar to the company's enduring revenue growth. The strategic marketing campaigns have shown promising results, particularly in enhancing brand awareness and user engagement across platforms.
Forward Guidance
CoStar Group anticipates full-year 2024 revenue ranging from $2.72 billion to $2.73 billion, signifying about an 11% year-over-year growth at the midpoint. The fourth-quarter revenue guidance is projected between $693 million and $703 million, maintaining growth expectations. The adjusted EBITDA guidance for the year has been raised to a range of $205 million to $215 million, marked by a 5% increase at the midpoint from former projections.
Stock Price Movement
Following the earnings release, CoStar Group's stock experienced a decline of approximately 4.38%.
In summary, CoStar Group's financial performance for the third quarter of 2024 demonstrates strong operational execution and strategic momentum, particularly within its leading segments, while presenting shareholder returns are poised for growth in the near term.
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