Key Points
EPS of $0.13 beat the $0.09 estimate by 44%.
Revenue hit $690.50 million, exceeding the $677.18 million estimate.
Record average monthly unique visitors of 182 million.
CoStar Group, Inc., a leading real estate information and analytics company, released its second-quarter 2024 earnings report on July 23, showing strong financial performance. The company reported earnings per share (EPS) of $0.13, surpassing the analyst estimate of $0.09 by $0.04. Total revenue for the quarter was $690.50 million, exceeding the consensus expectation of $677.18 million. This represents an 11.7% increase compared to the same quarter last year. CoStar's performance reflects robust sales and effective cost management, making the quarter a notable success.
| Metric | Q2 2024 | Estimate | Q2 2023 | % Change YoY |
|---|---|---|---|---|
| Revenue | $690.50 million | $677.18 million | $618.30 million | 11.7% |
| EPS | $0.13 | $0.09 | $0.10 | 30% |
| Operating Income | $115.20 million | -- | $97.50 million | 18.2% |
| Net New Bookings | $98 million | -- | $80 million | 22.5% |
| Source: Analyst estimates for the quarter provided by FactSet. |
CoStar Group Overview
Founded in 1987, CoStar Group, Inc. provides online real estate marketplaces, information, and analytics. It operates various well-known platforms, including Apartments.com, LoopNet, and Homes.com, serving diverse real estate stakeholders. CoStar's comprehensive database of commercial real estate information stands as a cornerstone of its service offerings, providing clients with detailed, up-to-date data necessary for real estate transactions and market analysis.
Recently, CoStar has focused on expanding its market presence and service portfolio, particularly through acquisitions like OnTheMarket in the U.K., enhancing its international footprint. The company's key success factors include continuous technological innovation, a diverse range of services, and strong brand recognition within the real estate industry.
Quarterly Highlights
CoStar's Q2 2024 showcased gains in several critical areas. First, revenue grew to $690.50 million, up 11.7% year-over-year from $618.30 million in Q2 2023. Higher customer adoption and expanded service offerings drove this revenue boost.
Earnings per share (EPS) also saw a notable rise to $0.13, a 30% year-over-year increase from $0.10 in Q2 2023. Analysts had expected EPS of $0.09. The surpassing of estimates underscores CoStar's operational efficiencies and effective cost management in the quarter.
Key segments exhibited substantial growth. Apartments.com generated $270 million in revenue, marking a 10% increase from the previous year. LoopNet brought in $150 million, an 8% year-over-year gain. Both platforms contributed significantly to the overall revenue growth.
CoStar also highlighted strong engagement metrics. Average monthly unique visitors across all platforms reached 182 million, a 107% increase year-over-year. Homes.com, part of CoStar's residential network, achieved 125 million monthly unique visitors.
There were also notable developments regarding international expansion. The recent acquisition of OnTheMarket bolstered CoStar’s presence in Europe, with international revenue hitting $120 million, up 15.4% from $104 million in Q2 2023.
Despite heavy investments in technology and infrastructure, operating expenses remained stable at around $350 million. This consistent expense control contributed positively to the robust earnings results.
Looking Ahead
Looking forward, CoStar has increased its full-year 2024 revenue guidance to a range of $2.76 billion to $2.77 billion. This is up from the previous guidance due to the strong performance in the first half of the year. Moreover, the company raised its adjusted EBITDA guidance, anticipating improved margins driven by sustained revenue growth and cost management.
Investors should monitor CoStar's continued investments in technology and international market expansion. The integration of recent acquisitions, coupled with ongoing innovation in its service offerings, will be crucial areas to watch. Management’s positive outlook sets an optimistic tone, but the performance will hinge on executing strategic priorities while navigating broader economic conditions and integration risks.
