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CoStar Group maintained a strong performance in the third quarter, according to the Virginia-based portal’s earnings call Tuesday. From July 1 to Sept. 30, CoStar Group’s revenue grew 11 percent year over year to $693 million, representing the 54th-consecutive quarter of double-digit revenue growth.
The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 86 percent year over year to $76 million. CoStar remained profitable, although its net income dropped from $91 million in Q3 2023 to $53 million in Q3 2024.
CoStar Group founder and CEO Andy Florance praised the company’s performance, which was buoyed by CoStar’s commercial information and marketplace businesses.
Andy Florance | Photo credit: CoStar
“We achieved another strong quarter of results with our 54th-consecutive quarter of double-digit revenue growth,” Florance said in a statement. “CoStar Group revenue grew 11 percent year-over-year, as our two billion-dollar run rate businesses, Apartments.com and CoStar, continue to deliver double-digit revenue growth.”
“Net income, EBITDA and Adjusted EBITDA increased significantly versus each of the first and second quarters of 2024,” he added. “Our commercial information and marketplace businesses continue to perform very well and delivered 43 percent profit margins in the third quarter of 2024.”
CoStar’s residential portal Homes.com also notched a solid third quarter, with revenue growing 65 percent year over year from $10.3 million to $17.0 million.
Traffic to the Homes.com Network (i.e., Homes Network, the Apartments Network and the Land Network) reached 130 million average monthly unique visitors in Q3, according to the results. It also increased its unaided awareness to 33 percent — a 725 percent increase since CoStar launched its billion-dollar campaign for Homes.com in February.
“Our marketing investment continues to deliver strong results as we lay the groundwork for sustained long-term growth as interest rates move down, transaction volume increases and our brands gain even more traction,” Florance said. “… For Homes.com, we delivered 15 billion impressions year-to-date and nearly 5 billion impressions in Q3.”
CoStar Group Chief Financial Officer Chris Lown said the company is ahead of the forward-looking guidance it provided during the previous quarter. The company, he said, now expects to end 2024 with a full-year revenue between $2.72 billion to $2.73 billion.
“This quarter, we delivered strong revenue growth and adjusted EBITDA growth well ahead of our guidance,” Lown said in a written statement. “The Company now expects revenue in the range of $2.72 billion to $2.73 billion for the full year of 2024, representing revenue growth of approximately 11 percent year-over-year at the midpoint of the range.”
“The Company expects revenue for the fourth quarter of 2024 in the range of $693 million to $703 million, representing revenue growth of approximately 9 percent year-over-year at the midpoint of the range,” he added.
CoStar Group’s stock (NASDAQ: CSGP) has been on the downslope over the past month, with the price per share decreasing 0.65 percent to $76.87 per share. The company’s stock has remained steady in after-hours trading, and could experience a post-earnings pop.
The company’s market cap stands at $31.50 billion.
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