Enterprise Solutions
CoStar Group Second Quarter 2023 Revenue Increased 13% Year-Over-Year And Net New Bookings
By Business Wire
WASHINGTON--(BUSINESS WIRE)--CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the property markets, announced today that revenue for the quarter ended June 30, 2023 was $606 million, 13% over revenue of $536 million for the quarter ended June 30, 2022. Net income was $101 million in the second quarter, an increase of 20% over prior year.
“We achieved another great quarter of very strong results in terms of revenue, sales and traffic to our websites,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group. "Overall revenue grew an impressive 13% year-over-year, with Apartments.com revenue growth accelerating to 23% in the second quarter. Our sales team delivered $82 million net new bookings, which is the second highest quarter in our company's history. The Apartments.com team produced record results for the third quarter in a row, with net new bookings up 84% over prior year. Achieving these results despite commercial property transactions plummeting 63% in the second quarter, demonstrates the resilience of our platforms,” continued Florance.
Traffic to all of CoStar Group’s web sites reached a new high of 105 million unique visitors in June, according to Google Analytics, exceeding 100 million in the second quarter for the first time. Traffic to our residential network in the second quarter was 84 million average monthly unique visitors, according to Google Analytics. Homes.com network traffic grew 130% year over year in June to 38 million monthly unique visitors. “I believe we crossed a monumental milestone in June when our residential network became the second most heavily trafficked residential network. We crossed into third place in the first quarter of this year, surpassing Redfin’s first quarter self-reported traffic and estimated rental site traffic. In the second quarter we moved into second place surpassing Realtor.com’s self-reported traffic for their fiscal third quarter. I’m very encouraged by the progress we are making with our Homes.com strategy, as our traffic growth continues ahead of our initial expectations,” said Florance.
CoStar Group’s residential network combines residential rental site and homes for sale site traffic.
Year 2022-2023 Quarterly Results - Unaudited |
|||||||
(in millions, except per share data) |
|||||||
2022 |
2023 |
||||||
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
||
Revenues |
$516 |
$536 |
$557 |
$573 |
$584 |
$606 |
|
Net income |
89 |
83 |
72 |
124 |
87 |
101 |
|
Net income per share - diluted |
0.23 |
0.21 |
0.18 |
0.31 |
0.21 |
0.25 |
|
Weighted average outstanding shares - diluted |
394 |
394 |
396 |
406 |
406 |
407 |
|
EBITDA |
158 |
140 |
129 |
155 |
98 |
105 |
|
Adjusted EBITDA |
178 |
159 |
153 |
182 |
123 |
127 |
|
Non-GAAP net income |
123 |
112 |
118 |
153 |
118 |
127 |
|
Non-GAAP net income per share - diluted |
0.31 |
0.28 |
0.30 |
0.38 |
0.29 |
0.31 |
2023 Outlook
The Company expects revenue in the range of $2.45 billion to $2.46 billion for the full year of 2023, representing year-over-year growth of approximately 13% at the midpoint of the range. The revenue forecast is lower than prior guidance to reflect lower property transaction volume expectations in the second half of 2023, and the related impact on Ten-X revenue. The Company expects revenue for the third quarter of 2023 in the range of $622 million to $627 million, representing revenue growth of approximately 12% year-over-year at the midpoint of the range.
The Company expects adjusted EBITDA in the range of $510 million to $520 million for the full year of 2023. For the third quarter of 2023, the Company expects adjusted EBITDA in the range of $115 million to $120 million.
The Company expects full year 2023 non-GAAP net income per diluted share in a range of $1.24 to $1.26 based on 407 million shares. For the third quarter of 2023, the Company expects non-GAAP net income per diluted share in a range of $0.29 to $0.30 based on 407 million shares. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the third quarter of 2023.
The preceding forward-looking statements reflect CoStar Group’s expectations as of July 25, 2023, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations, and trends. Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.
Reconciliations of EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share to the most directly comparable GAAP measures are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income, can be found within the tables included in this release.
Non-GAAP Financial Measures
For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refer to the Company’s latest periodic report.
EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before interest income or expense, net and other income or expense, net; loss on debt extinguishment; income taxes; depreciation and amortization.
Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, and settlements and impairments incurred outside the Company’s ordinary course of business. Adjusted EBITDA margin represents adjusted EBITDA divided by revenues for the period.
Non-GAAP net income is a non-GAAP financial measure determined by adjusting GAAP net income attributable to CoStar Group for stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, settlement and impairment costs incurred outside the Company's ordinary course of business and loss on debt extinguishment, as well as amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. In 2023, the Company is assuming a 26% tax rate in order to approximate its statutory corporate tax rate excluding the impact of discrete items.
Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share. For periods with GAAP net losses and non-GAAP net income, the weighted average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.
Operating Metrics
Net new bookings is calculated based on the annualized amount of change in the Company's sales bookings resulting from new subscription-based contracts, changes to existing subscription-based contracts and cancellations of subscription-based contracts for the period reported. Information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of the Company's revenues over time.
Earnings Conference Call
Management will conduct a conference call to discuss the second quarter 2023 results and the Company’s outlook at 5:00 PM ET on Tuesday, July 25, 2023. A live audio webcast of the conference will be available in listen-only mode through the Investors section of the CoStar Group website: https://investors.costargroup.com. A replay of the webcast audio will also be available in the Investors section of our website for a period of time following the call.
CoStar Group, Inc. |
||||||||||||||
Condensed Consolidated Statements of Operations - Unaudited |
||||||||||||||
(in thousands, except per share data) |
||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||
Revenues |
$ |
605,906 |
$ |
536,308 |
$ |
1,190,272 |
$ |
1,052,133 |
||||||
Cost of revenues |
112,362 |
100,971 |
231,558 |
196,450 |
||||||||||
Gross profit |
493,544 |
435,337 |
958,714 |
855,683 |
||||||||||
Operating expenses: |
||||||||||||||
Selling and marketing (excluding customer base amortization) |
250,026 |
181,344 |
476,260 |
325,341 |
||||||||||
Software development |
63,369 |
51,587 |
129,959 |
105,608 |
||||||||||
General and administrative |
90,563 |
77,345 |
180,071 |
155,306 |
||||||||||
Customer base amortization |
10,440 |
14,878 |
21,057 |
30,970 |
||||||||||
414,398 |
325,154 |
807,347 |
617,225 |
|||||||||||
Income from operations |
79,146 |
110,183 |
151,367 |
238,458 |
||||||||||
Interest income (expense), net |
51,911 |
(3,399 |
) |
95,459 |
(11,117 |
) |
||||||||
Other income, net |
609 |
1,343 |
1,190 |
2,207 |
||||||||||
Income before income taxes |
131,666 |
108,127 |
248,016 |
229,548 |
||||||||||
Income tax expense |
31,146 |
24,654 |
60,365 |
56,757 |
||||||||||
Net income |
$ |
100,520 |
$ |
83,473 |
$ |
187,651 |
$ |
172,791 |
||||||
Net income per share - basic |
$ |
0.25 |
$ |
0.21 |
$ |
0.46 |
$ |
0.44 |
||||||
Net income per share - diluted |
$ |
0.25 |
$ |
0.21 |
$ |
0.46 |
$ |
0.44 |
||||||
Weighted-average outstanding shares - basic |
405,429 |
393,342 |
404,960 |
393,119 |
||||||||||
Weighted-average outstanding shares - diluted |
406,751 |
394,478 |
406,454 |
394,356 |
CoStar Group, Inc. |
||||||||||||||||
Reconciliation of Non-GAAP Financial Measures - Unaudited |
||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
Reconciliation of Net Income to Non-GAAP Net Income |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Net income |
$ |
100,520 |
$ |
83,473 |
$ |
187,651 |
$ |
172,791 |
||||||||
Income tax expense |
31,146 |
24,654 |
60,365 |
56,757 |
||||||||||||
Income before income taxes |
131,666 |
108,127 |
248,016 |
229,548 |
||||||||||||
Amortization of acquired intangible assets |
17,976 |
22,815 |
35,657 |
46,005 |
||||||||||||
Stock-based compensation expense |
21,826 |
18,112 |
41,871 |
35,959 |
||||||||||||
Acquisition and integration related costs |
(179 |
) |
504 |
1,476 |
2,143 |
|||||||||||
Restructuring and related costs |
(51 |
) |
— |
3,371 |
— |
|||||||||||
Settlements and impairments |
(30 |
) |
— |
(107 |
) |
— |
||||||||||
Other expense, net |
— |
2,063 |
— |
4,099 |
||||||||||||
Non-GAAP income before income taxes |
171,208 |
151,621 |
330,284 |
317,754 |
||||||||||||
Assumed rate for income tax expense(1) |
26 |
% |
26 |
% |
26 |
% |
26 |
% |
||||||||
Assumed provision for income tax expense |
(44,514 |
) |
(39,421 |
) |
(85,874 |
) |
(82,616 |
) |
||||||||
Non-GAAP net income |
$ |
126,694 |
$ |
112,200 |
$ |
244,410 |
$ |
235,138 |
||||||||
Net income per share - diluted |
$ |
0.25 |
$ |
0.21 |
$ |
0.46 |
$ |
0.44 |
||||||||
Non-GAAP net income per share - diluted |
$ |
0.31 |
$ |
0.28 |
$ |
0.60 |
$ |
0.60 |
||||||||
Weighted average outstanding shares - basic |
405,429 |
393,342 |
404,960 |
393,119 |
||||||||||||
Weighted average outstanding shares - diluted |
406,751 |
394,478 |
406,454 |
394,356 |
||||||||||||
__________________________ |
||||||||||||||||
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period. |
||||||||||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Net income |
$ |
100,520 |
$ |
83,473 |
$ |
187,651 |
$ |
172,791 |
||||||||
Amortization of acquired intangible assets in cost of revenues |
7,536 |
7,937 |
14,600 |
15,035 |
||||||||||||
Amortization of acquired intangible assets in operating expenses |
10,440 |
14,878 |
21,057 |
30,970 |
||||||||||||
Depreciation and other amortization |
8,087 |
7,010 |
16,033 |
13,975 |
||||||||||||
Interest (income) expense, net |
(51,911 |
) |
3,399 |
(95,459 |
) |
11,117 |
||||||||||
Other income, net |
(609 |
) |
(1,343 |
) |
(1,190 |
) |
(2,207 |
) |
||||||||
Income tax expense |
31,146 |
24,654 |
60,365 |
56,757 |
||||||||||||
EBITDA |
$ |
105,209 |
$ |
140,008 |
$ |
203,057 |
$ |
298,438 |
||||||||
Stock-based compensation expense |
21,826 |
18,112 |
41,871 |
35,959 |
||||||||||||
Acquisition and integration related costs |
(179 |
) |
504 |
1,476 |
2,143 |
|||||||||||
Restructuring and related costs |
(51 |
) |
— |
3,371 |
— |
|||||||||||
Settlements and impairments |
(30 |
) |
— |
(107 |
) |
— |
||||||||||
Adjusted EBITDA |
$ |
126,775 |
$ |
158,624 |
$ |
249,668 |
$ |
336,540 |
CoStar Group, Inc. |
||||||||
Condensed Consolidated Balance Sheets - Unaudited |
||||||||
(in thousands) |
||||||||
June 30, |
December 31, |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
5,205,295 |
$ |
4,967,970 |
||||
Accounts receivable |
196,255 |
166,140 |
||||||
Less: Allowance for credit losses |
(15,042 |
) |
(12,195 |
) |
||||
Accounts receivable, net |
181,213 |
153,945 |
||||||
Prepaid expenses and other current assets |
58,376 |
63,952 |
||||||
Total current assets |
5,444,884 |
5,185,867 |
||||||
Deferred income taxes, net |
9,724 |
9,722 |
||||||
Property and equipment, net |
359,455 |
321,250 |
||||||
Lease right-of-use assets |
79,491 |
80,392 |
||||||
Goodwill |
2,321,205 |
2,314,759 |
||||||
Intangible assets, net |
295,022 |
329,306 |
||||||
Deferred commission costs, net |
162,391 |
142,482 |
||||||
Deposits and other assets |
17,497 |
16,687 |
||||||
Income tax receivable |
2,005 |
2,005 |
||||||
Total assets |
$ |
8,691,674 |
$ |
8,402,470 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
61,546 |
$ |
28,460 |
||||
Accrued wages and commissions |
100,915 |
104,988 |
||||||
Accrued expenses |
115,654 |
89,113 |
||||||
Income taxes payable |
11,100 |
10,438 |
||||||
Lease liabilities |
40,329 |
36,049 |
||||||
Deferred revenue |
113,231 |
103,567 |
||||||
Total current liabilities |
442,775 |
372,615 |
||||||
Long-term debt, net |
989,858 |
989,210 |
||||||
Deferred income taxes, net |
69,280 |
76,202 |
||||||
Income taxes payable |
16,978 |
14,001 |
||||||
Lease and other long-term liabilities |
71,711 |
80,321 |
||||||
Total liabilities |
$ |
1,590,602 |
$ |
1,532,349 |
||||
Total stockholders' equity |
7,101,072 |
6,870,121 |
||||||
Total liabilities and stockholders' equity |
$ |
8,691,674 |
$ |
8,402,470 |
CoStar Group, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows - Unaudited |
|||||||
(in thousands) |
|||||||
Six months ended |
|||||||
2023 |
2022 |
||||||
Operating activities: |
|||||||
Net income |
$ |
187,651 |
$ |
172,791 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
51,690 |
64,127 |
|||||
Amortization of deferred commissions costs |
45,267 |
35,996 |
|||||
Amortization of Senior Notes discount and issuance costs |
1,197 |
1,178 |
|||||
Non-cash lease expense |
14,147 |
15,080 |
|||||
Stock-based compensation expense |
41,871 |
35,959 |
|||||
Deferred income taxes, net |
(6,989 |
) |
(14,946 |
) |
|||
Credit loss expense |
13,938 |
6,890 |
|||||
Other operating activities, net |
540 |
(1,149 |
) |
||||
Changes in operating assets and liabilities, net of acquisitions: |
|||||||
Accounts receivable |
(40,601 |
) |
(33,318 |
) |
|||
Prepaid expenses and other current assets |
(4,220 |
) |
3,152 |
||||
Deferred commissions |
(65,028 |
) |
(54,155 |
) |
|||
Accounts payable and other liabilities |
54,422 |
14,098 |
|||||
Lease liabilities |
(16,559 |
) |
(15,932 |
) |
|||
Income taxes payable, net |
12,916 |
(27,770 |
) |
||||
Deferred revenue |
8,873 |
8,520 |
|||||
Other assets |
(735 |
) |
1,578 |
||||
Net cash provided by operating activities |
298,380 |
212,099 |
|||||
Investing activities: |
|||||||
Proceeds from sale of property and equipment and other assets |
— |
5,034 |
|||||
Purchase of Richmond assets |
(45,621 |
) |
(25,664 |
) |
|||
Purchases of property and equipment and other assets |
(8,801 |
) |
(30,746 |
) |
|||
Cash paid for acquisitions, net of cash acquired |
— |
(6,331 |
) |
||||
Net cash used in investing activities |
(54,422 |
) |
(57,707 |
) |
|||
Financing activities: |
|||||||
Repayments of long-term debt assumed in acquisition |
— |
(2,155 |
) |
||||
Repurchase of restricted stock to satisfy tax withholding obligations |
(22,445 |
) |
(19,755 |
) |
|||
Proceeds from exercise of stock options and employee stock purchase plan |
16,175 |
7,340 |
|||||
Net cash used in financing activities |
(6,270 |
) |
(14,570 |
) |
|||
Effect of foreign currency exchange rates on cash and cash equivalents |
(363 |
) |
(2,832 |
) |
|||
Net increase in cash and cash equivalents |
237,325 |
136,990 |
|||||
Cash and cash equivalents at the beginning of period |
4,967,970 |
3,827,126 |
|||||
Cash and cash equivalents at the end of period |
$ |
5,205,295 |
$ |
3,964,116 |
CoStar Group, Inc. |
|||||||||||||||||
Disaggregated Revenues - Unaudited |
|||||||||||||||||
(in thousands) |
|||||||||||||||||
Three Months Ended June 30, |
|||||||||||||||||
2023 |
2022 |
||||||||||||||||
North America |
International |
Total |
North America |
International |
Total |
||||||||||||
CoStar |
$ |
219,573 |
$ |
9,596 |
$ |
229,169 |
$ |
197,380 |
$ |
9,186 |
$ |
206,566 |
|||||
Information Services |
32,213 |
9,708 |
41,921 |
30,511 |
7,991 |
38,502 |
|||||||||||
Multifamily |
224,291 |
— |
224,291 |
182,359 |
— |
182,359 |
|||||||||||
LoopNet |
63,268 |
2,295 |
65,563 |
54,603 |
1,694 |
56,297 |
|||||||||||
Residential |
12,708 |
— |
12,708 |
20,154 |
— |
20,154 |
|||||||||||
Other Marketplaces |
32,254 |
— |
32,254 |
32,430 |
— |
32,430 |
|||||||||||
Total revenues |
$ |
584,307 |
$ |
21,599 |
$ |
605,906 |
$ |
517,437 |
$ |
18,871 |
$ |
536,308 |
|||||
Six Months Ended June 30, |
|||||||||||||||||
2023 |
2022 |
||||||||||||||||
North America |
International |
Total |
North America |
International |
Total |
||||||||||||
CoStar |
$ |
435,386 |
$ |
18,796 |
$ |
454,182 |
$ |
386,484 |
$ |
18,731 |
$ |
405,215 |
|||||
Information Services |
64,313 |
19,237 |
83,550 |
60,782 |
14,935 |
75,717 |
|||||||||||
Multifamily |
434,988 |
— |
434,988 |
357,836 |
— |
357,836 |
|||||||||||
LoopNet |
124,447 |
4,353 |
128,800 |
107,291 |
3,453 |
110,744 |
|||||||||||
Residential |
25,861 |
— |
25,861 |
38,214 |
— |
38,214 |
|||||||||||
Other Marketplaces |
62,891 |
— |
62,891 |
64,407 |
— |
64,407 |
|||||||||||
Total revenues |
$ |
1,147,886 |
$ |
42,386 |
$ |
1,190,272 |
$ |
1,015,014 |
$ |
37,119 |
$ |
1,052,133 |
|||||
CoStar Group, Inc. |
|||||||||||
Results of Segments - Unaudited |
|||||||||||
(in thousands) |
|||||||||||
Three Months Ended |
Six Months Ended |
||||||||||
2023 |
2022 |
2023 |
2022 |
||||||||
EBITDA |
|||||||||||
North America |
$ |
104,614 |
$ |
138,527 |
$ |
201,270 |
$ |
294,489 |
|||
International |
595 |
1,481 |
1,787 |
3,949 |
|||||||
Total EBITDA |
$ |
105,209 |
$ |
140,008 |
$ |
203,057 |
$ |
298,438 |
CoStar Group, Inc. |
||||||||
Reconciliation of Non-GAAP Financial Measures with Quarterly Results - Unaudited |
||||||||
(in millions, except per share data) |
||||||||
Reconciliation of Net Income to Non-GAAP Net Income |
||||||||
2022 |
2023 |
|||||||
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
|||
Net income |
$89.3 |
$83.5 |
$72.3 |
$124.4 |
$87.1 |
$100.5 |
||
Income tax expense |
32.1 |
24.7 |
25.1 |
35.2 |
29.2 |
31.1 |
||
Income before income taxes |
121.4 |
108.1 |
97.4 |
159.5 |
116.4 |
131.7 |
||
Amortization of acquired intangible assets |
23.2 |
22.8 |
36.6 |
20.0 |
17.7 |
18.0 |
||
Stock-based compensation expense |
17.8 |
18.1 |
18.1 |
21.1 |
20.0 |
21.8 |
||
Acquisition and integration related costs |
1.6 |
0.5 |
1.1 |
2.2 |
1.7 |
(0.2) |
||
Restructuring and related costs |
— |
— |
0.2 |
2.0 |
3.4 |
(0.1) |
||
Settlements and impairments |
— |
— |
4.1 |
2.0 |
(0.1) |
— |
||
Other expense, net |
2.0 |
2.1 |
2.1 |
— |
— |
— |
||
Non-GAAP income before income taxes(1) |
166.1 |
151.6 |
159.6 |
206.7 |
159.1 |
171.2 |
||
Assumed rate for income tax expense (2) |
26% |
26% |
26% |
26% |
26% |
26% |
||
Assumed provision for income tax expense |
(43.2) |
(39.4) |
(41.5) |
(53.8) |
(41.4) |
(44.5) |
||
Non-GAAP net income(1) |
$122.9 |
$112.2 |
$118.1 |
$153.0 |
$117.7 |
$126.7 |
||
Non-GAAP net income per share - diluted |
$0.31 |
$0.28 |
$0.30 |
$0.38 |
$0.21 |
$0.25 |
||
Weighted average outstanding shares - basic |
392.9 |
393.3 |
394.7 |
404.2 |
404.5 |
405.4 |
||
Weighted average outstanding shares - diluted |
394.2 |
394.5 |
396.2 |
406.1 |
406.2 |
406.8 |
||
__________________________ |
||||||||
(1) Totals may not foot due to rounding. |
||||||||
(2) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period. |
||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||||
2022 |
2023 |
|||||||
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
|||
Net income |
$89.3 |
$83.5 |
$72.3 |
$124.4 |
$87.1 |
$100.5 |
||
Amortization of acquired intangible assets |
23.2 |
22.8 |
36.6 |
20.0 |
17.7 |
18.0 |
||
Depreciation and other amortization |
7.0 |
7.0 |
7.2 |
7.9 |
7.9 |
8.1 |
||
Interest expense (income), net |
7.7 |
3.4 |
(10.7) |
(32.6) |
(43.5) |
(51.9) |
||
Other (income) expense, net |
(0.9) |
(1.3) |
(1.4) |
0.2 |
(0.6) |
(0.6) |
||
Income tax expense |
32.1 |
24.7 |
25.1 |
35.2 |
29.2 |
31.1 |
||
EBITDA(1) |
$158.4 |
$140.0 |
$129.1 |
$155.1 |
$97.8 |
$105.2 |
||
Stock-based compensation expense |
17.8 |
18.1 |
18.1 |
21.1 |
20.0 |
21.8 |
||
Acquisition and integration related costs |
1.6 |
0.5 |
1.1 |
2.2 |
1.7 |
(0.2) |
||
Restructuring and related costs |
— |
— |
0.2 |
2.0 |
3.4 |
(0.1) |
||
Settlements and impairments |
— |
— |
4.1 |
2.0 |
(0.1) |
— |
||
Adjusted EBITDA(1) |
$177.9 |
$158.6 |
$152.7 |
$182.3 |
$122.9 |
$126.8 |
||
__________________________ |
||||||||
(1) Totals may not foot due to rounding. |
CoStar Group, Inc. |
|||||||||||||||
Reconciliation of Forward-Looking Guidance - Unaudited |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income |
|||||||||||||||
Guidance Range |
Guidance Range |
||||||||||||||
For the Three Months |
For the Year Ending |
||||||||||||||
Ending September 30, 2023 |
December 31, 2023 |
||||||||||||||
Low |
High |
Low |
High |
||||||||||||
Net income |
$ |
86,000 |
$ |
90,000 |
$ |
376,000 |
$ |
383,000 |
|||||||
Income tax expense |
32,000 |
33,000 |
138,000 |
141,000 |
|||||||||||
Income before income taxes |
118,000 |
123,000 |
514,000 |
524,000 |
|||||||||||
Amortization of acquired intangible assets |
19,000 |
19,000 |
73,000 |
73,000 |
|||||||||||
Stock-based compensation expense |
23,000 |
23,000 |
89,000 |
89,000 |
|||||||||||
Acquisition and integration related costs |
— |
— |
1,000 |
1,000 |
|||||||||||
Restructuring and related costs |
— |
— |
3,000 |
3,000 |
|||||||||||
Non-GAAP income before income taxes |
160,000 |
165,000 |
680,000 |
690,000 |
|||||||||||
Assumed rate for income tax expense(1) |
26 |
% |
26 |
% |
26 |
% |
26 |
% |
|||||||
Assumed provision for income tax expense |
(41,600 |
) |
(42,900 |
) |
(176,800 |
) |
(179,400 |
) |
|||||||
Non-GAAP net income |
$ |
118,400 |
$ |
122,100 |
$ |
503,200 |
$ |
510,600 |
|||||||
Net income per share - diluted |
$ |
0.21 |
$ |
0.22 |
$ |
0.92 |
$ |
0.94 |
|||||||
Non-GAAP net income per share - diluted |
$ |
0.29 |
$ |
0.30 |
$ |
1.24 |
$ |
1.26 |
|||||||
Weighted average outstanding shares - diluted |
407,000 |
407,000 |
406,800 |
406,800 |
|||||||||||
__________________________ |
|||||||||||||||
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period. |
|||||||||||||||
Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA |
|||||||||||||||
Guidance Range |
Guidance Range |
||||||||||||||
For the Three Months |
For the Year Ending |
||||||||||||||
Ending September 30, 2023 |
December 31, 2023 |
||||||||||||||
Low |
High |
Low |
High |
||||||||||||
Net income |
$ |
86,000 |
$ |
90,000 |
$ |
376,000 |
$ |
383,000 |
|||||||
Amortization of acquired intangible assets |
19,000 |
19,000 |
73,000 |
73,000 |
|||||||||||
Depreciation and other amortization |
9,000 |
9,000 |
34,000 |
34,000 |
|||||||||||
Interest income, net |
(54,000 |
) |
(54,000 |
) |
(203,000 |
) |
(203,000 |
) |
|||||||
Other income, net |
— |
— |
(1,000 |
) |
(1,000 |
) |
|||||||||
Income tax expense |
32,000 |
33,000 |
138,000 |
141,000 |
|||||||||||
Stock-based compensation expense |
23,000 |
23,000 |
89,000 |
89,000 |
|||||||||||
Acquisition and integration related costs |
— |
— |
1,000 |
1,000 |
|||||||||||
Restructuring and related costs |
— |
— |
3,000 |
3,000 |
|||||||||||
Adjusted EBITDA |
$ |
115,000 |
$ |
120,000 |
$ |
510,000 |
$ |
520,000 |
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors.
Contacts
Investor Relations:
Cyndi Eakin
Senior Vice President
CoStar Group Investor Relations
(202) 346-6784
ceakin@costar.com
News Media:
Matthew Blocher
Vice President
CoStar Group Corporate Marketing & Communications
(202) 346-6775
mblocher@costar.com
Read full story here
First published on Wed, Jul 26, 2023
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