NASDAQ$CSGP

CoStar Group Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

CoStar's revenue increased by 17% year-over-year, with CoStar accelerating to double-digit revenue growth and net sales reaching an all-time high.

CoStar Group reported a strong third quarter with revenue of $499 million, a 17% increase year-over-year. The company's CoStar performance improved with double-digit growth rates. Net income for the quarter was $64 million, or $0.16 per diluted share, while non-GAAP net income was $99 million, or $0.25 per diluted share.

  • CoStar Group's revenue for Q3 2021 was $499 million, a 17% increase year-over-year.
  • Net income for Q3 2021 was $64 million, or $0.16 per diluted share.
  • Non-GAAP net income for Q3 2021 was $99 million, or $0.25 per diluted share.
  • EBITDA for Q3 2021 was $123 million, a 13% increase year-over-year.

Headline financials

Total Revenue

$499M

Previous: $426M+17.3%
EPS (adj)

$0.25

Previous: $0.23+8.7%
Adjusted EBITDA

$144M

Previous: $134M+7.5%
Free Cash Flow

$64.3M

Previous: $58.2M+10.5%
Net Income

$64.3M

Previous: $58.2M+10.5%
Operating Income

$89.7M

Previous: $76.8M+16.8%
Gross Profit

$407M

Previous: $348M+17.0%
Cash & Equivalents

$3.76B

Previous: $3.87B-2.7%
Total Assets

$7.13B

Previous: $6.8B+4.9%
Stock-Based Comp

$16.3M

Previous: $16.7M-2.6%

Revenue & EPS history

CoStar · Revenue · Quarterly

$499M

Q3 2021+17.3%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

CoStar · $261M total across 3 segments · Q3 2021

  • CoStar
    $183M
  • LoopNet
    $52.5M
  • Residential
    $24.7M

Forward guidance

The Company is adjusting its revenue guidance for the full year of 2021 to a new range of $1.935 billion to $1.940 billion, representing growth of approximately 17% year-over-year at the midpoint of the range. Revenue for the fourth quarter of 2021 is expected to be in the range of $498 million to $503 million, representing year-over-year revenue growth of approximately 13% at the midpoint of the range.

Tailwinds

  • Full year revenue guidance increased to $1.935B - $1.940B, representing 17% growth.
  • Q4 revenue is expected to be $498M - $503M, a 13% year-over-year increase.
  • Full year adjusted EBITDA guidance increased to $615M - $620M, representing 12% growth.
  • Q4 adjusted EBITDA is expected to be $161M - $166M.
  • Full year non-GAAP net income per diluted share guidance increased to $1.07 - $1.08.

Headwinds

  • Multifamily revenue expectations were reduced.
  • Fourth quarter revenue growth is projected to be lower than the current quarter.
  • Ultra-low vacancy rates in Multifamily slowed sales results.
  • Uncertainty surrounding the impact of the COVID-19 pandemic.
  • Volatility in the international and U.S. economy and the commercial real estate industry

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 Q3 2021

Historical avgQ3 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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