NASDAQ$CSGP

CoStar Group Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

CoStar Group's revenue increased by 12% year-over-year, marking 50 straight quarters of double-digit revenue growth. Net income also increased by 25% compared to the prior year.

CoStar Group reported strong Q3 2023 results with a 12% increase in revenue year-over-year, reaching $625 million. Net income rose by 25% to $91 million. The company is focused on investing in Homes.com and aims to begin monetization in the second quarter of 2024.

  • Revenue for the quarter ended September 30, 2023, was $625 million, a 12% increase year-over-year.
  • Net income for the third quarter was $91 million, a 25% increase year-over-year.
  • Net new bookings totaled $65 million for the third quarter.
  • Homes.com had 100 million unique visitors in September.

Headline financials

Total Revenue

$625M

Previous: $557M+12.2%
EPS (adj)

$0.30

Previous: $0.30+0.0%
Capital Expenditures

-$61.8M

Previous: -$31.5M-96.0%
Free Cash Flow

$28.8M

Previous: $40.8M-29.4%
Net Income

$90.6M

Previous: $72.3M+25.3%
Operating Income

$61.6M

Previous: $85.3M-27.8%
Gross Profit

$501M

Previous: $449M+11.7%
Cash & Equivalents

$5.23B

Previous: $4.77B+9.5%
Total Assets

$8.77B

Previous: $8.21B+6.9%
R&D Expense

$67.9M

No prior period
Stock-Based Comp

$21.9M

Previous: $18.1M+20.7%

Revenue & EPS history

CoStar · Revenue · Quarterly

$625M

Q3 2023+12.2%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
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 anticipates revenue between $630 million and $635 million and adjusted EBITDA between $123 million and $128 million for Q4 2023. The company expects full year revenue between $2.445 billion and $2.450 billion and adjusted EBITDA between $485 million and $490 million.

Tailwinds

  • Commercial information and marketplace business expected to deliver 12% year-over-year revenue growth in Q4 2023.
  • Commercial information and marketplace business expected to deliver 14% year-over-year revenue growth for the full year 2023.
  • Homes.com strategy is proving successful and has moved the company into second place in the U.S.
  • Company is wisely accelerating investment in the residential marketplace in the second half of 2023.
  • Non-GAAP net income per diluted share for Q4 2023 is expected to be in the range of $0.31 to $0.32.

Headwinds

  • Adjusted EBITDA for the full year 2023 is expected to be in the range of $485 million to $490 million.
  • Adjusted EBITDA for the fourth quarter of 2023 is expected to be in the range of $123 million to $128 million.
  • The company continues to demonstrate that their commercial information and marketplace businesses can deliver strong, double-digit revenue growth regardless of market cycles
  • Non-GAAP net income per diluted share for the full year 2023 is expected to be in a range of $1.21 to $1.22
  • Against one of the worst property markets in decades

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 2023

Historical avgQ3 2023

+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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