NASDAQ$CSGP

CoStar Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

CoStar Group's Q1 2020 performance, marked by a 19% year-over-year revenue increase and strong net income, was driven by the company's successful transition to remote work and the mission-critical nature of its products.

CoStar Group reported a strong first quarter in 2020, with revenue increasing by 19% year-over-year to $392 million. Net income was $73 million, and adjusted EBITDA reached $124 million. The company successfully transitioned its operations to remote work and saw record traffic to its platforms.

  • CoStar Group's Q1 2020 revenues increased 19% year-over-year, reaching $392 million.
  • Net income for Q1 2020 was $73 million, with diluted earnings per share of $1.98.
  • Adjusted EBITDA for Q1 2020 was $124 million.
  • The company withdrew its full-year 2020 guidance due to the uncertainty caused by the COVID-19 pandemic.

Headline financials

Total Revenue

$392M

Previous: $328M+19.3%
EPS (adj)

$0.24

Previous: $0.25-4.0%
Adjusted EBITDA

$124M

Previous: $125M-1.2%
Free Cash Flow

$72.8M

Previous: $85.2M-14.5%
Net Income

$72.8M

Previous: $85.2M-14.5%
Operating Income

$75.9M

Previous: $93.5M-18.9%
Gross Profit

$313M

Previous: $257M+21.6%
Cash & Equivalents

$1.93B

Previous: $1.23B+56.4%
Total Assets

$4.68B

Previous: $3.55B+32.0%
Stock-Based Comp

$15.2M

Previous: $12M+26.2%

Revenue & EPS history

CoStar · Revenue · Quarterly

$392M

Q1 2020+19.3%vs Q1 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

CoStar · $311M total across 3 segments · Q3 2023

  • CoStar
    $233M+9.7%
  • LoopNet
    $67.5M+14.6%
  • Residential
    $10.3M-46.8%

Forward guidance

The Company expects revenue for the second quarter of 2020 in the range of $387 million to $392 million, representing revenue growth of 13% compared to the second quarter of 2019 at the midpoint of the range. The Company expects adjusted EBITDA in a range of $110 million to $115 million for the second quarter of 2020, representing growth of 2% year-over-year at the midpoint of the range. We expect second quarter 2020 non-GAAP net income per diluted share in a range of $2.02 to $2.12 based on 36.8 million shares.

Tailwinds

  • Revenue for Q2 2020 is expected to be between $387 million and $392 million.
  • Q2 2020 revenue growth expected to be 13% compared to Q2 2019 at the midpoint of the range.
  • Adjusted EBITDA for Q2 2020 is expected to be between $110 million and $115 million.
  • Q2 2020 adjusted EBITDA growth is expected to be 2% year-over-year at the midpoint of the range.
  • Non-GAAP net income per diluted share for Q2 2020 is expected to be between $2.02 and $2.12 based on 36.8 million shares.

Headwinds

  • Full year 2020 guidance was withdrawn due to the rapidly changing environment and continued uncertainty resulting from the global impact of the pandemic.
  • The rapidly evolving economic environment creates risk factors.
  • There are uncertainties and assumptions discussed in the release and in the company's quarterly reports.
  • Actual results may differ materially.
  • The company does not intend to update its forward-looking statements until its next quarterly results announcement.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.0%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.0%

Avg return

30 days after

59%

39 / 66 earnings

Positive

+16.2%

Q2 2013

Best reaction

-17.6%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-4.2%-10.9%
Q4 2025+2.7%-8.1%-19.1%
Q3 2025-10.1%-11.3%-12.1%
Q2 2025+1.9%+0.3%-1.3%
Q1 2025-10.3%-6.8%-11.1%
Q4 2024+5.0%+2.7%+4.0%
Q3 2024-5.9%-3.7%-0.5%
Q2 2024+1.1%+4.0%+0.1%
Q1 2024+7.8%+8.6%+0.4%
Q4 2023+3.2%+4.2%+20.1%
Q3 2023-3.2%-3.6%+14.5%
Q2 2023-6.8%-9.8%-12.2%
Q1 2023+2.4%+9.5%+10.3%
Q4 2022-7.0%-8.8%-15.1%
Q3 2022+12.1%+16.1%+12.1%
Q2 2022+13.1%+17.9%+17.7%
Q1 2022+1.7%+1.5%-5.2%
Q4 2021-17.6%-5.0%+3.8%
Q3 2021-9.4%-13.2%-19.6%
Q2 2021-2.6%-0.5%-7.2%
Q1 2021-7.6%-8.4%-9.5%
Q4 2020-4.6%-6.0%-8.4%
Q3 2020-4.5%-0.9%+5.9%
Q2 2020+15.3%+18.2%+17.7%
Q1 2020+5.4%+0.8%+4.7%
Q4 2019-3.5%-5.6%-17.5%
Q3 2019-3.8%-4.1%-0.4%
Q2 2019+7.6%+8.6%+5.5%
Q1 2019-2.6%+0.2%+5.6%
Q4 2018+10.5%+16.0%+12.3%
Q3 2018-6.7%-7.8%-6.8%
Q2 2018+1.6%-2.1%+0.9%
Q1 2018+2.1%-2.1%+1.0%
Q4 2017-0.1%+0.4%+2.7%
Q3 2017+3.0%+4.9%+10.5%
Q2 2017-2.7%-2.3%+0.6%
Q1 2017+9.5%+12.2%+19.8%
Q4 2016-4.6%-3.5%-1.7%
Q3 2016-9.2%-11.6%-3.9%
Q2 2016-7.5%-8.3%-7.2%
Q1 2016+6.3%
Q4 2015-0.9%
Q3 2015+6.0%
Q2 2015-1.8%
Q1 2015+2.1%
Q4 2014+4.8%
Q3 2014+6.8%
Q2 2014+7.9%
Q1 2014-6.8%
Q4 2013+0.1%
Q3 2013+0.1%
Q2 2013+16.2%
Q1 2013-0.3%
Q4 2012+4.9%
Q3 2012+6.9%
Q2 2012+4.7%
Q1 2011+0.1%
Q1 2012+3.9%
Q4 2009+4.3%
Q4 2011+4.3%
Q3 2010+7.6%
Q3 2011+7.6%
Q2 2010+3.2%
Q4 2010+3.2%
Q2 2011+3.2%
Q1 2010-0.9%

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