CSGP Earnings Prediction
The chart below shows how CSGP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CSGP sees a +1.29% change in stock price 10 days leading up to the earnings, and a +1.44% change 10 days following the report. On the earnings day itself, the stock moves by +0.18%. This data can give you a slight idea of what to expect for the next quarter's release.
CSGP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
709.40M
10.83%
2.43%
Gross Margin
78.33%
1.71%
0.15%
Operating Margin
5.64%
-47.92%
64.91%
Net Margin
8.43%
-44.06%
10.20%
EPS
0.15
-37.50%
15.38%
No Data Available
CSGP Earnings Analysis
CoStar Group Inc Corporation (CSGP.O) Earnings Conference Call
Positive
Earnings Per Share Beat: CoStar Group, Inc. reported an EPS of $0.3557, exceeding expectations of $0.22, indicating strong financial performance.
Consistent Revenue Growth: Full year revenue for 2024 reached $2.74 billion, an 11% increase over 2023, marking the 55th consecutive quarter of double-digit revenue growth.
Q4 2024 Adjusted EBITDA: Adjusted EBITDA for Q4 2024 was $112 million, significantly above the guidance range of $76 million to $86 million, showcasing operational efficiency.
Substantial Profit Growth: The company achieved a net income of $60 million in Q4 2024, up from $7 million in Q1 2024, demonstrating substantial profit growth throughout the year.
User Engagement Growth: CoStar's average monthly unique visitors increased by 17% year-over-year to 134 million in Q4 2024, reflecting growing user engagement.
Strong Sales Momentum: Net new bookings for Q4 2024 were $53 million, a 21% sequential increase from Q3 2024, indicating strong sales momentum.
Product Revenue Growth: The CoStar product generated $1.02 billion in revenue in 2024, with a growth rate of 10% year-over-year, reinforcing its market leadership.
Subscriber Renewal Rate: The renewal rate for CoStar subscribers was strong at 92%, indicating high customer satisfaction and loyalty.
Sales Force Expansion: The Homes.com sales force grew nearly six-fold to 277 salespeople, with plans to reach 500 by year-end 2025, enhancing sales capabilities.
Revenue and Customer Satisfaction: Apartments.com achieved $276 million in revenue for Q4 2024, with an impressive NPS score of 94, reflecting high customer satisfaction.
Lender Product Revenue Growth: CoStar's lender product gained traction, generating $1.7 million in net new annual revenue in December 2024, bringing total annual revenue to $75 million.
Sales Force Expansion: The company plans to grow its sales force by 35% in 2025, indicating confidence in future revenue growth opportunities.
Marketing Reach and Impact: CoStar's marketing efforts for Homes.com reached 90% of Americans, significantly increasing brand awareness and engagement.
STR Benchmarking Impact: The integration of STR benchmarking into CoStar's platform contributed approximately 4 percentage points to revenue growth in 2024, enhancing product offerings.
Negative
Commercial Real Estate Challenges: Despite beating earnings expectations, the company faced challenges in the commercial real estate (CRE) market, which has been described as experiencing unprecedented downturns over several years.
Moderating Revenue Growth Forecast: The revenue growth for 2025 is expected to moderate, with forecasts indicating only 6% to 7% growth for the full year, reflecting the ongoing challenges in the CRE market.
Target Withdrawal Announcement: The company withdrew its five-year revenue and EBITDA targets set in February 2022, citing unforeseen long-lasting downturns in both commercial and residential businesses.
Economic Challenges Impacting Growth: While the company reported strong performance in certain areas, the overall economic environment remains challenging, with high interest rates and inflation impacting growth prospects.
Integration Impact on Revenue: The integration of STR into CoStar's platform, while beneficial, is expected to have a diminishing impact on revenue growth moving forward, as it contributed approximately 4 percentage points to CoStar's revenue growth in 2024.
CSGP FAQs
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CSGP Earning Call Sentiment
CoStar Group, Inc. (NASDAQ:CSGP) Q4 2024 Earnings Call Transcript
CSGP.O
-3.33%Positive
CoStar's earnings call highlights strong financial performance with record revenue and positive EBITDA, despite challenges like regulatory issues and economic factors. The share buyback program and optimistic future growth outlook further bolster sentiment. The Q&A section revealed some uncertainties, but overall, the company's strategic initiatives, such as the expansion of Homes.com, and strong market positioning, suggest a positive stock price movement in the short term.
