NASDAQ$CSGP

CoStar Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

CoStar Group's revenue increased by 21% year-over-year, and visitors to CoStar Group marketplaces increased by over 45% year-over-year.

CoStar Group announced strong second-quarter results with revenue of $480 million, a 21% increase year-over-year. Net income was $61 million, or $0.16 per diluted share, while non-GAAP net income was $103 million, or $0.26 per diluted share. The company saw significant growth across all businesses, with total revenue and profit exceeding forecasts and a substantial increase in visitors to its platforms.

  • CoStar Group's revenue for the second quarter of 2021 was $480 million, up 21% year-over-year.
  • Net income for the second quarter of 2021 was $61 million, or $0.16 per diluted share.
  • Non-GAAP net income for the second quarter of 2021 was $103 million, or $0.26 per diluted share, a 16% increase year-over-year.
  • Adjusted EBITDA for the second quarter of 2021 was $150 million, a 17% increase year-over-year.

Headline financials

Total Revenue

$480M

Previous: $397M+20.9%
EPS (adj)

$0.26

Previous: $0.23+13.0%
Adjusted EBITDA

$150M

Previous: $129M+16.3%
Capital Expenditures

$364K

No prior period
Free Cash Flow

$61.1M

Previous: $60.4M+1.3%
Net Income

$61.1M

Previous: $60.4M+1.3%
Operating Income

$101M

Previous: $81.3M+24.2%
Gross Profit

$391M

Previous: $323M+20.9%
Cash & Equivalents

$3.67B

Previous: $3.55B+3.6%
Total Assets

$7.08B

Previous: $6.48B+9.2%
Stock-Based Comp

$15.1M

Previous: $8.87M+70.7%

Revenue & EPS history

CoStar · Revenue · Quarterly

$480M

Q2 2021+20.9%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
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

CoStar Group is increasing its revenue guidance for the full year of 2021 to a new range of $1.940 billion to $1.950 billion. Revenue for the third quarter of 2021 is expected to be in the range of $495 million to $500 million. The Company is lowering its adjusted EBITDA guidance for the full year of 2021 to a new range of $605 million to $615 million. For the third quarter of 2021, the Company expects adjusted EBITDA in a range of $130 million to $135 million. The Company is lowering its non-GAAP net income per diluted share guidance for full-year 2021 to a new range of $1.04 to $1.06 per share. For the third quarter of 2021, we expect non-GAAP net income per diluted share in a range of $0.22 to $0.23 per share.

Tailwinds

  • Revenue guidance for full year 2021 increased to $1.940B - $1.950B.
  • Q3 2021 revenue expected to be $495M - $500M.
  • Homes.com acquisition to expand addressable market.
  • Planned investment in residential technology and content in the second half of 2021.
  • Focus on digitization of residential real estate and international markets to expand total addressable market.

Headwinds

  • Adjusted EBITDA guidance for full year 2021 lowered to $605M - $615M due to Homes.com.
  • Q3 2021 adjusted EBITDA expected to be $130M - $135M.
  • Non-GAAP net income per diluted share guidance for full year 2021 lowered to $1.04 - $1.06.
  • Q3 2021 non-GAAP net income per diluted share expected to be $0.22 - $0.23.
  • Uncertainty surrounding the impact of the COVID-19 pandemic.

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 Q2 2021

Historical avgQ2 2021

+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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