CoStar Group Inc (CSGP) Reports 12% YoY Revenue Growth in Q3 2023, Marking 50 Consecutive ...
CoStar Group Inc (NASDAQ:CSGP) reports Q3 2023 revenue of $625 million, a 12% increase YoY.
Net income for the quarter was $91 million, marking a 25% increase over the prior year.
The company's commercial information and marketplace businesses grew 14% YoY.
Homes.com saw a significant increase in unique visitors, growing 1,290% YoY.
CoStar Group Inc (NASDAQ:CSGP), a leading provider of online real estate marketplaces, information, and analytics, announced on October 24, 2023, that its revenue for Q3 2023 was $625 million, marking a 12% increase over the $557 million reported for Q3 2022. This represents the company's 50th straight quarter of double-digit revenue growth. The net income for the quarter was $91 million, a 25% increase over the prior year.
Performance Highlights
CoStar Group's commercial information and marketplace businesses demonstrated strong performance amidst a turbulent market, with revenue growing 14% YoY and margins approaching 40%. The company's adjusted EBITDA for these businesses is nearing an annualized $1 billion. CoStar Group also reported strong net new bookings, with $65 million in the third quarter.
On the residential front, the company's Homes.com platform achieved a significant milestone with 100 million unique visitors in September, marking a 1,290% YoY growth. This outperformed competitors' traffic, which was relatively flat or declining. When combined with the Apartments network, CoStar Group had 140 million unique visitors in September, making it the second most heavily trafficked residential network.
Financial Overview
The company's Q3 2023 net income per share was $0.22, with 407 million weighted average outstanding shares. The EBITDA for the quarter was $89 million, while the adjusted EBITDA was $112 million. The non-GAAP net income was $120 million, with a non-GAAP net income per share of $0.30.
For the full year of 2023, CoStar Group expects revenue in the range of $2.445 billion to $2.450 billion, representing a YoY growth of approximately 12%. The company also expects Q4 2023 revenue to be in the range of $630 million to $635 million, marking a 10% YoY growth.
Future Outlook
CoStar Group's CFO, Scott Wheeler, expressed confidence in the company's ability to deliver strong, double-digit revenue growth regardless of market cycles. The company expects its commercial information and marketplace business to deliver 12% YoY revenue growth in Q4 2023 and 14% revenue growth for the full year of 2023. The company also plans to accelerate its investment in the residential marketplace in the second half of 2023.
CoStar Group expects full year 2023 non-GAAP net income per diluted share in a range of $1.21 to $1.22 based on 407 million shares. For the fourth quarter of 2023, the company expects non-GAAP net income per diluted share in a range of $0.31 to $0.32 based on 407 million shares.
This article first appeared on GuruFocus.
