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CoStar Group Third Quarter 2023 Revenue Increased 12% Year-over-Year Marking 50 Straight Quarters of Double-Digit Revenue Growth

WASHINGTON, October 24, 2023--(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 September 30, 2023 was $625 million, up 12% over revenue of $557 million for the quarter ended September 30, 2022. Net income was $91 million in the third quarter, an increase of 25% over the prior year.

"CoStar Group delivered strong results this quarter on our two principal fronts," said Andy Florance, Founder and CEO of CoStar Group. "First, our commercial information and marketplace businesses are fortress strong in a turbulent market with revenue growing 14% year-over-year and margins approaching 40%. As we move into the fourth quarter, our adjusted EBITDA, for our commercial information and marketplace businesses, is approaching $1,000,000,000 annualized. We continue to generate strong net new bookings with $65 million of net new bookings in the third quarter. On the second front, we are investing aggressively, but prudently, in Homes.com with the goal of unlocking the enormous potential of becoming the leading, successful U.S. residential real estate portal. In September we celebrated a major milestone on that road to success with 100 million unique visitors to Homes.com."

"Unique visitors to Homes.com in September grew 1,290% year over year, significantly outperforming our competitors’ traffic, the largest of which were relatively flat or declining. We believe that the competitive balance in the industry is shifting in our favor," continued Florance. "Our key competitors' sites combine rentals and resale homes, so when we likewise combine our Homes.com and Apartments networks we had 140 million unique visitors in September, according to Google Analytics. In the past year we have quickly grown to become the second most heavily trafficked residential network by a wide margin, with monthly unique visitors 35% higher than Realtor.com and 90% higher than Redfin in September, according to ComScore. We continue to build out the full potential of Homes.com and are focused on continuing to grow traffic and beginning monetization in second quarter of 2024."

"Last week, we announced our offer to acquire OnTheMarket, one of the top three residential property portals in the United Kingdom. Having operated successfully in the United Kingdom for two decades, we believe that we can grow competitive traffic share in the U.K. just as we have done so many times before in the U.S. and that our significant software investments into Homes.com will give us technology scale advantage in the U.K."

Year 2022-2023 Quarterly Results - Unaudited

(in millions, except per share data)

2022

2023

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Revenues

$516

$536

$557

$573

$584

$606

$625

Net income

89

83

72

124

87

101

91

Net income per share - diluted

0.23

0.21

0.18

0.31

0.21

0.25

0.22

Weighted average outstanding shares - diluted

394

394

396

406

406

407

407

EBITDA

158

140

129

155

98

105

89

Adjusted EBITDA

178

159

153

182

123

127

112

Non-GAAP net income

123

112

118

153

118

127

120

Non-GAAP net income per share - diluted

0.31

0.28

0.30

0.38

0.29

0.31

0.30

2023 Outlook

The Company expects revenue in the range of $2.445 billion to $2.450 billion for the full year of 2023, representing year-over-year growth of approximately 12% at the midpoint of the range. The Company expects revenue for the fourth quarter of 2023 in the range of $630 million to $635 million, representing revenue growth of approximately 10% year-over-year at the midpoint of the range.

"Against one of the worst property markets in decades, we continue to demonstrate that our commercial information and marketplace businesses can deliver strong, double-digit revenue growth regardless of market cycles," said Scott Wheeler, CFO of CoStar Group. "Our commercial information and marketplace business is expected to deliver 12% year-over-year revenue growth in the fourth quarter of 2023, and 14% revenue growth for the full year of 2023. Our Homes.com strategy is proving to be very successful and has moved us into second place in the U.S. We are wisely accelerating our investment in our residential marketplace in the second half of 2023. We now expect adjusted EBITDA for the full year of 2023 in the range of $485 million to $490 million. For the fourth quarter of 2023, we expect adjusted EBITDA in the range of $123 million to $128 million."

The Company 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. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the fourth quarter of 2023.

The preceding forward-looking statements reflect CoStar Group’s expectations as of October 24, 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 third quarter 2023 results and the Company’s outlook at 5:00 PM ET on Tuesday, October 24, 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
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

Revenues

$

624,669

$

556,921

$

1,814,941

$

1,609,054

Cost of revenues

123,666

108,364

355,224

304,814

Gross profit

501,003

448,557

1,459,717

1,304,240

Operating expenses:

Selling and marketing (excluding customer base amortization)

266,893

185,395

743,153

510,736

Software development

67,891

56,912

197,850

162,520

General and administrative

94,371

91,270

274,442

246,576

Customer base amortization

10,254

29,651

31,311

60,621

439,409

363,228

1,246,756

980,453

Income from operations

61,594

85,329

212,961

323,787

Interest income (expense), net

58,422

10,656

153,881

(461

)

Other income, net

465

1,389

1,655

3,596

Income before income taxes

120,481

97,374

368,497

326,922

Income tax expense

29,907

25,084

90,272

81,841

Net income

$

90,574

$

72,290

$

278,225

$

245,081

Net income per share - basic

$

0.22

$

0.18

$

0.69

$

0.62

Net income per share - diluted

$

0.22

$

0.18

$

0.68

$

0.62

Weighted-average outstanding shares - basic

405,649

394,712

405,190

393,650

Weighted-average outstanding shares - diluted

407,229

396,209

406,713

394,973

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
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

Net income

$

90,574

$

72,290

$

278,225

$

245,081

Income tax expense

29,907

25,084

90,272

81,841

Income before income taxes

120,481

97,374

368,497

326,922

Amortization of acquired intangible assets

18,707

36,596

54,364

82,601

Stock-based compensation expense

21,899

18,138

63,770

54,097

Acquisition and integration related costs

796

1,095

2,272

3,238

Restructuring and related costs

509

191

3,880

191

Settlements and impairments

4,100

(107

)

4,100

Other expense, net

2,063

6,162

Non-GAAP income before income taxes

162,392

159,557

492,676

477,311

Assumed rate for income tax expense(1)

26

%

26

%

26

%

26

%

Assumed provision for income tax expense

(42,222

)

(41,485

)

(128,096

)

(124,101

)

Non-GAAP net income

$

120,170

$

118,072

$

364,580

$

353,210

Net income per share - diluted

$

0.22

$

0.18

$

0.68

$

0.62

Non-GAAP net income per share - diluted

$

0.30

$

0.30

$

0.90

$

0.89

Weighted average outstanding shares - basic

405,649

394,712

405,190

393,650

Weighted average outstanding shares - diluted

407,229

396,209

406,713

394,973

__________________________

(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
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

Net income

$

90,574

$

72,290

$

278,225

$

245,081

Amortization of acquired intangible assets in cost of revenues

8,453

6,945

23,053

21,980

Amortization of acquired intangible assets in operating expenses

10,254

29,651

31,311

60,621

Depreciation and other amortization

8,418

7,224

24,451

21,199

Interest (income) expense, net

(58,422

)

(10,656

)

(153,881

)

461

Other income, net

(465

)

(1,389

)

(1,655

)

(3,596

)

Income tax expense

29,907

25,084

90,272

81,841

EBITDA

$

88,719

$

129,149

$

291,776

$

427,587

Stock-based compensation expense

21,899

18,138

63,770

54,097

Acquisition and integration related costs

796

1,095

2,272

3,238

Restructuring and related costs

509

191

3,880

191

Settlements and impairments

4,100

(107

)

4,100

Adjusted EBITDA

$

111,923

$

152,673

$

361,591

$

489,213

CoStar Group, Inc.

Condensed Consolidated Balance Sheets - Unaudited

(in thousands)

September 30,
2023

December 31,
2022

ASSETS

Current assets:

Cash and cash equivalents

$

5,229,880

$

4,967,970

Accounts receivable

213,742

166,140

Less: Allowance for credit losses

(20,911

)

(12,195

)

Accounts receivable, net

192,831

153,945

Prepaid expenses and other current assets

76,013

63,952

Total current assets

5,498,724

5,185,867

Deferred income taxes, net

9,722

9,722

Property and equipment, net

403,195

321,250

Lease right-of-use assets

85,758

80,392

Goodwill

2,315,313

2,314,759

Intangible assets, net

275,095

329,306

Deferred commission costs, net

165,846

142,482

Deposits and other assets

15,997

16,687

Income tax receivable

2,005

2,005

Total assets

$

8,771,655

$

8,402,470

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

25,866

$

28,460

Accrued wages and commissions

91,357

104,988

Accrued expenses

156,009

89,113

Income taxes payable

2,061

10,438

Lease liabilities

40,187

36,049

Deferred revenue

97,583

103,567

Total current liabilities

413,063

372,615

Long-term debt, net

990,185

989,210

Deferred income taxes, net

63,203

76,202

Income taxes payable

17,542

14,001

Lease and other long-term liabilities

77,500

80,321

Total liabilities

$

1,561,493

$

1,532,349

Total stockholders' equity

7,210,162

6,870,121

Total liabilities and stockholders' equity

$

8,771,655

$

8,402,470

CoStar Group, Inc.

Condensed Consolidated Statements of Cash Flows - Unaudited

(in thousands)

Nine Months Ended
September 30,

2023

2022

Operating activities:

Net income

$

278,225

$

245,081

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

78,815

109,983

Amortization of deferred commissions costs

69,811

55,373

Amortization of Senior Notes discount and issuance costs

1,799

1,771

Non-cash lease expense

22,092

23,108

Stock-based compensation expense

63,770

54,097

Deferred income taxes, net

(12,949

)

(21,676

)

Credit loss expense

25,664

13,468

Other operating activities, net

324

(1,774

)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(64,595

)

(36,177

)

Prepaid expenses and other current assets

(20,745

)

(17,235

)

Deferred commissions

(93,147

)

(83,875

)

Accounts payable and other liabilities

21,067

2,131

Lease liabilities

(26,807

)

(27,615

)

Income taxes payable, net

4,444

(29,051

)

Deferred revenue

(6,045

)

4,488

Other assets

(738

)

1,492

Net cash provided by operating activities

340,985

293,589

Investing activities:

Proceeds from sale of property and equipment and other assets

5,034

Purchase of Richmond assets

(61,811

)

(31,530

)

Purchases of property and equipment and other assets

(14,141

)

(43,659

)

Cash paid for acquisitions, net of cash acquired

(6,331

)

Net cash used in investing activities

(75,952

)

(76,486

)

Financing activities:

Repayments of long-term debt assumed in acquisition

(2,155

)

Repurchase of restricted stock to satisfy tax withholding obligations

(23,409

)

(20,259

)

Proceeds from equity offering, net of transaction costs

746,170

Proceeds from exercise of stock options and employee stock purchase plan

20,435

10,777

Net cash (used in) provided by financing activities

(2,974

)

734,533

Effect of foreign currency exchange rates on cash and cash equivalents

(149

)

(4,297

)

Net increase in cash and cash equivalents

261,910

947,339

Cash and cash equivalents at the beginning of period

4,967,970

3,827,126

Cash and cash equivalents at the end of period

$

5,229,880

$

4,774,465

CoStar Group, Inc.

Disaggregated Revenues - Unaudited

(in thousands)

Three Months Ended September 30,

2023

2022

North America

International

Total

North America

International

Total

CoStar

$

223,348

$

10,012

$

233,360

$

203,657

$

9,033

$

212,690

Information Services

35,163

9,473

44,636

32,524

8,489

41,013

Multifamily

235,343

235,343

189,536

189,536

LoopNet

65,041

2,440

67,481

57,126

1,775

58,901

Residential

10,293

10,293

19,351

19,351

Other Marketplaces

33,556

33,556

35,430

35,430

Total revenues

$

602,744

$

21,925

$

624,669

$

537,624

$

19,297

$

556,921

Nine Months Ended September 30,

2023

2022

North America

International

Total

North America

International

Total

CoStar

$

658,734

$

28,808

$

687,542

$

590,141

$

27,764

$

617,905

Information Services

99,476

28,710

128,186

93,306

23,424

116,730

Multifamily

670,331

670,331

547,372

547,372

LoopNet

189,488

6,793

196,281

164,417

5,228

169,645

Residential

36,154

36,154

57,565

57,565

Other Marketplaces

96,447

96,447

99,837

99,837

Total revenues

$

1,750,630

$

64,311

$

1,814,941

$

1,552,638

$

56,416

$

1,609,054

CoStar Group, Inc.

Results of Segments - Unaudited

(in thousands)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2023

2022

2023

2022

EBITDA

North America

$

88,910

$

127,965

$

290,180

$

422,454

International

(191

)

1,184

1,596

5,133

Total EBITDA

$

88,719

$

129,149

$

291,776

$

427,587

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

Q3

Net income

$89.3

$83.5

$72.3

$124.4

$87.1

$100.5

$90.6

Income tax expense

32.1

24.7

25.1

35.2

29.2

31.1

29.9

Income before income taxes

121.4

108.1

97.4

159.5

116.4

131.7

120.5

Amortization of acquired intangible assets

23.2

22.8

36.6

20.0

17.7

18.0

18.7

Stock-based compensation expense

17.8

18.1

18.1

21.1

20.0

21.8

21.9

Acquisition and integration related costs

1.6

0.5

1.1

2.2

1.7

(0.2)

0.8

Restructuring and related costs

0.2

2.0

3.4

(0.1)

0.5

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

162.4

Assumed rate for income tax expense (2)

26%

26%

26%

26%

26%

26%

26%

Assumed provision for income tax expense

(43.2)

(39.4)

(41.5)

(53.8)

(41.4)

(44.5)

(42.2)

Non-GAAP net income(1)

$122.9

$112.2

$118.1

$153.0

$117.7

$126.7

$120.2

Non-GAAP net income per share - diluted

$0.31

$0.28

$0.30

$0.38

$0.29

$0.31

$0.30

Weighted average outstanding shares - basic

392.9

393.3

394.7

404.2

404.5

405.4

405.6

Weighted average outstanding shares - diluted

394.2

394.5

396.2

406.1

406.2

406.8

407.2

__________________________

(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

Q3

Net income

$89.3

$83.5

$72.3

$124.4

$87.1

$100.5

$90.6

Amortization of acquired intangible assets

23.2

22.8

36.6

20.0

17.7

18.0

18.7

Depreciation and other amortization

7.0

7.0

7.2

7.9

7.9

8.1

8.4

Interest expense (income), net

7.7

3.4

(10.7)

(32.6)

(43.5)

(51.9)

(58.4)

Other (income) expense, net

(0.9)

(1.3)

(1.4)

0.2

(0.6)

(0.6)

(0.5)

Income tax expense

32.1

24.7

25.1

35.2

29.2

31.1

29.9

EBITDA(1)

$158.4

$140.0

$129.1

$155.1

$97.8

$105.2

$88.7

Stock-based compensation expense

17.8

18.1

18.1

21.1

20.0

21.8

21.9

Acquisition and integration related costs

1.6

0.5

1.1

2.2

1.7

(0.2)

0.8

Restructuring and related costs

0.2

2.0

3.4

(0.1)

0.5

Settlements and impairments

4.1

2.0

(0.1)

Adjusted EBITDA(1)

$177.9

$158.6

$152.7

$182.3

$122.9

$126.8

$111.9

__________________________

(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 December 31, 2023

December 31, 2023

Low

High

Low

High

Net income

$

97,000

$

101,000

$

376,000

$

380,000

Income tax expense

33,000

34,000

123,000

124,000

Income before income taxes

130,000

135,000

499,000

504,000

Amortization of acquired intangible assets

18,000

18,000

73,000

73,000

Stock-based compensation expense

22,000

22,000

86,000

86,000

Acquisition and integration related costs

1,000

1,000

3,000

3,000

Restructuring and related costs

4,000

4,000

Non-GAAP income before income taxes

171,000

176,000

665,000

670,000

Assumed rate for income tax expense(1)

26

%

26

%

26

%

26

%

Assumed provision for income tax expense

(44,500

)

(45,800

)

(172,900

)

(174,200

)

Non-GAAP net income

$

126,500

$

130,200

$

492,100

$

495,800

Net income per share - diluted

$

0.24

$

0.25

$

0.92

$

0.93

Non-GAAP net income per share - diluted

$

0.31

$

0.32

$

1.21

$

1.22

Weighted average outstanding shares - diluted

407,400

407,400

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 December 31, 2023

December 31, 2023

Low

High

Low

High

Net income

$

97,000

$

101,000

$

376,000

$

380,000

Amortization of acquired intangible assets

18,000

18,000

73,000

73,000

Depreciation and other amortization

10,000

10,000

34,000

34,000

Interest income, net

(58,000

)

(58,000

)

(212,000

)

(212,000

)

Other income, net

(2,000

)

(2,000

)

Income tax expense

33,000

34,000

123,000

124,000

Stock-based compensation expense

22,000

22,000

86,000

86,000

Acquisition and integration related costs

1,000

1,000

3,000

3,000

Restructuring and related costs

4,000

4,000

Adjusted EBITDA

$

123,000

$

128,000

$

485,000

$

490,000

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. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attract over 100 million unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

This news release and the Company’s earnings conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar Group's plans, objectives, expectations, beliefs and intentions and other statements including words such as "hope," "anticipate," "may," "believe," "expect," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar Group and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. The following factors, among others, could cause or contribute to such differences: the risk that the trends stated or implied by this release or in the earnings conference call cannot or will not be sustained at the current pace or may increase or decrease, including trends and expectations related to revenue, revenue growth, net income, non-GAAP net income, EBITDA, adjusted EBITDA, adjusted EBITDA margin, sales, net new bookings, site traffic and visitors, leads, and renewal rates; the risk that the Company is unable to sustain current Company-wide, CoStar, Apartments or LoopNet net new bookings; the risk that revenues for the fourth quarter and full year 2023 will not be as stated in this press release; the risk that net income for the fourth quarter and full year 2023 will not be as stated in this press release; the risk that EBITDA for the fourth quarter and full year 2023 will not be as stated in this press release; the risk that adjusted EBITDA for the fourth quarter and full year 2023 will not be as stated in this press release; the risk that non-GAAP net income and non-GAAP net income per diluted share for the fourth quarter and full year 2023 will not be as stated in this press release; the risk that we may not successfully integrate acquired businesses or assets and may not achieve anticipated benefits of an acquisition, including expected synergies; the risk that the tax rate estimates stated in this press release may change and the risk that we may experience declines in our revenues, revenue growth rates and profitability due to the impact of economic conditions on the real estate industry and our core customer base. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar Group’s filings from time to time with the Securities and Exchange Commission (the "SEC"), including in CoStar Group’s Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report on Form 10-Q for the quarters ended March 31, June 30, and September 30, 2023, each of which is filed with the SEC, including in the "Risk Factors" section of those filings, as well as CoStar Group’s other filings with the SEC (including Current Reports on Form 8-K) available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar Group on the date hereof, and CoStar Group assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231024629018/en/

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

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