CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the commercial and residential property markets, announced today that revenue for the year ended December 31, 2021, was $1.94 billion, an increase of 17% over revenue of $1.66 billion for the full year of 2020. Revenue for the fourth quarter of 2021, was $507 million, an increase of 14% over revenue of $444 million for the fourth quarter of 2020.
Net income for the year ended December 31, 2021, was $293 million, an increase of 29% compared to net income of $227 million for the full year of 2020. Net income for the fourth quarter of 2021 was $93 million, or $0.24 per diluted share, an increase of 160% compared to net income of $36 million for the fourth quarter of 2020. EBITDA for the full year of 2021 was $565 million, an increase of 39% compared to EBITDA of $406 million for the full year of 2020.
“2021 was another very strong year for CoStar Group in terms of both revenue and sales growth,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “Our fourth quarter 2021 revenue run rate is now over $2 billion and our sales production has never been stronger. Company-wide net sales bookings for 2021 increased 18% year-over-year to $217 million, while net sales bookings in the fourth quarter of 2021 reached an all-time high of $67 million.”
“I’m particularly pleased with the revenue growth acceleration in CoStar,” stated Florance, “which began the year with 4% year-over-year revenue growth in the first quarter and ended the year with 13% year-over-year revenue growth in the fourth quarter. Net sales bookings for CoStar in the fourth quarter were virtually in-line with the record level of net sales bookings CoStar delivered in the third quarter of 2021. Even more encouraging, net sales bookings for Apartments.com increased sharply in the fourth quarter of 2021, indicating that the slowdown in revenue growth and sales bookings that we experienced earlier in the year is potentially behind us.”
“2021 was our first full year in the residential property space,” continued Florance, “and we are off to a strong start with revenue of $75 million. Revenue from our Homesnap products grew over 50% for the full year 2021 on a year-over-year pro forma basis. With an addressable market almost three times the size of our existing business, we believe that the residential property opportunity has the potential to add billions in revenue to CoStar Group over the medium to long term. In order to take advantage of this significant growth opportunity, we plan to increase the level of investment in residential products, content, sales and marketing in 2022.”
Year 2020-2021 Quarterly Results - Unaudited |
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(in millions, except per share data) |
|||||||||
|
2020 |
|
2021 |
||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Q3 |
Q4 |
|
|
|
|
|
|
|
|
|
|
Revenues |
$392 |
$397 |
$426 |
$444 |
|
$458 |
$480 |
$499 |
$507 |
Net income |
73 |
60 |
58 |
36 |
|
74 |
61 |
64 |
93 |
Net income per share - diluted(1) |
0.20 |
0.16 |
0.15 |
0.09 |
|
0.19 |
0.16 |
0.16 |
0.24 |
Weighted average outstanding shares - diluted(1) |
368 |
377 |
394 |
394 |
|
394 |
394 |
394 |
395 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
100 |
109 |
108 |
88 |
|
136 |
133 |
123 |
173 |
Adjusted EBITDA |
124 |
129 |
134 |
167 |
|
160 |
150 |
144 |
193 |
Non-GAAP net income |
90 |
88 |
89 |
112 |
|
108 |
103 |
99 |
138 |
Non-GAAP net income per share - diluted(1) |
0.24 |
0.23 |
0.23 |
0.29 |
|
0.27 |
0.26 |
0.25 |
0.35 |
__________________________ |
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|
|
|
|
|
|
|
|
(1) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021. |
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As of December 31, 2021, the Company had approximately $3.8 billion in cash, cash equivalents and restricted cash and outstanding debt of approximately $1.0 billion.
2022 Outlook
The Company expects revenue in the range of $2.145 billion to $2.165 billion for the full year of 2022, representing growth of approximately 11% year-over-year at the midpoint of the range. We expect revenue for the first quarter of 2022 in the range of $510 million to $515 million, representing revenue growth of approximately 12% year-over-year at the midpoint of the range.
Full year 2022 revenue estimates include approximately $70 million of revenue from our Residential products, representing growth of approximately 15% year-over-year after adjusting for certain legacy Homes.com product revenues that were discontinued in 2021. The Company is planning to increase the level of investment in Residential to a range of approximately $300 to $320 million for the full year 2022, representing an increase in the range of $200 million to $220 million.
The Company expects adjusted EBITDA in a range of $565 million to $605 million for the full year of 2022, a decrease of $62 million, or 10%, at the midpoint of the range compared to 2021. For the first quarter of 2022, the Company expects adjusted EBITDA in a range of $155 million to $160 million. Excluding the Residential product revenue and investments, adjusted EBITDA is expected to be in a range of $815 million to $835 million for the full year of 2022.
“I am very pleased with the strong financial performance in 2021, which we expect to continue in 2022” said Scott T. Wheeler, Chief Financial Officer of CoStar Group. “Notwithstanding our Residential growth investments, our commercial property information and marketplace businesses are expected to deliver profit margins of approximately 40% in 2022, which would achieve our long-term goal of 40% adjusted EBITDA margins by 2023 one full year ahead of schedule.”
We expect full year 2022 non-GAAP net income per diluted share in a range of $0.95 to $1.02 based on 395 million shares. For the first quarter of 2022, we expect non-GAAP net income per diluted share in a range of $0.27 to $0.28 based on 394 million shares. These ranges include an estimated non-GAAP tax rate of 25% for the full year and the first quarter of 2022.
The preceding forward-looking statements reflect CoStar Group’s expectations as of February 22, 2022, 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, including uncertainties as a result of the COVID-19 pandemic and responses to it by, and the impact on, global economies and the real estate industry, 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.
Reconciliation of EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share to their GAAP basis results 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.
Quarterly historical revenue under the new disaggregated revenue categories announced on October 26, 2021, can be found in the tables below.
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 (expense) income and other (expense) income, 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 normal 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 normal 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 2021, the Company is assuming a 25% tax rate in order to approximate our 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.
Earnings Conference Call
Management will conduct a conference call to discuss the fourth quarter and full year 2021 results and the Company’s outlook at 5:00 PM EST on Tuesday, February 22, 2022. 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. |
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Condensed Consolidated Statements of Operations - Unaudited |
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(in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues |
|
$ 506,786 |
|
$ 444,393 |
|
$ 1,944,135 |
|
$ 1,659,019 |
Cost of revenues |
|
86,330 |
|
78,154 |
|
357,241 |
|
308,968 |
Gross profit |
|
420,456 |
|
366,239 |
|
1,586,894 |
|
1,350,051 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling and marketing (excluding customer base amortization) |
|
138,653 |
|
133,576 |
|
622,007 |
|
535,778 |
Software development |
|
52,522 |
|
41,573 |
|
201,022 |
|
162,916 |
General and administrative |
|
69,964 |
|
118,100 |
|
256,711 |
|
299,698 |
Customer base amortization |
|
18,932 |
|
17,780 |
|
74,817 |
|
62,457 |
|
|
280,071 |
|
311,029 |
|
1,154,557 |
|
1,060,849 |
|
|
|
|
|
|
|
|
|
Income from operations |
|
140,385 |
|
55,210 |
|
432,337 |
|
289,202 |
Interest expense, net |
|
(7,923) |
|
(7,913) |
|
(31,621) |
|
(17,395) |
Other income (expense) |
|
909 |
|
(856) |
|
3,252 |
|
(827) |
Income before income taxes |
|
133,371 |
|
46,441 |
|
403,968 |
|
270,980 |
Income tax expense |
|
40,471 |
|
10,652 |
|
111,404 |
|
43,852 |
Net income |
|
$ 92,900 |
|
$ 35,789 |
|
$ 292,564 |
|
$ 227,128 |
|
|
|
|
|
|
|
|
|
Net income per share - basic(1) |
|
$ 0.24 |
|
$ 0.09 |
|
$ 0.75 |
|
$ 0.60 |
Net income per share - diluted(1) |
|
$ 0.24 |
|
$ 0.09 |
|
$ 0.74 |
|
$ 0.59 |
|
|
|
|
|
|
|
|
|
Weighted-average outstanding shares - basic(1) |
|
392,538 |
|
391,372 |
|
392,210 |
|
380,726 |
Weighted-average outstanding shares - diluted(1) |
|
394,532 |
|
393,951 |
|
394,160 |
|
383,266 |
__________________________ |
|
|
|
|
|
|
|
|
(1) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021. |
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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 December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net income |
|
$ |
92,900 |
|
|
$ |
35,789 |
|
|
$ |
292,564 |
|
|
$ |
227,128 |
|
Income tax expense |
|
|
40,471 |
|
|
|
10,652 |
|
|
|
111,404 |
|
|
|
43,852 |
|
Income before income taxes |
|
|
133,371 |
|
|
|
46,441 |
|
|
|
403,968 |
|
|
|
270,980 |
|
Amortization of acquired intangible assets |
|
|
26,176 |
|
|
|
24,784 |
|
|
|
103,626 |
|
|
|
88,132 |
|
Stock-based compensation expense |
|
|
16,721 |
|
|
|
12,667 |
|
|
|
63,709 |
|
|
|
54,104 |
|
Acquisition and integration related costs |
|
|
3,243 |
|
|
|
65,892 |
|
|
|
18,718 |
|
|
|
92,523 |
|
Restructuring and related costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
413 |
|
Other expense |
|
|
4,112 |
|
|
|
— |
|
|
|
6,903 |
|
|
|
113 |
|
Non-GAAP income before income taxes |
|
|
183,623 |
|
|
|
149,784 |
|
|
|
596,924 |
|
|
|
506,265 |
|
Assumed rate for income tax expense(1) |
|
|
25 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
25 |
% |
Assumed provision for income tax expense |
|
|
(45,906 |
) |
|
|
(37,446 |
) |
|
|
(149,231 |
) |
|
|
(126,566 |
) |
Non-GAAP net income |
|
$ |
137,717 |
|
|
$ |
112,338 |
|
|
$ |
447,693 |
|
|
$ |
379,699 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - diluted(2) |
|
$ |
0.24 |
|
|
$ |
0.09 |
|
|
$ |
0.74 |
|
|
$ |
0.59 |
|
Non-GAAP net income per share - diluted(2) |
|
$ |
0.35 |
|
|
$ |
0.29 |
|
|
$ |
1.14 |
|
|
$ |
0.99 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average outstanding shares - basic(2) |
|
|
392,538 |
|
|
|
391,372 |
|
|
|
392,210 |
|
|
|
380,726 |
|
Weighted average outstanding shares - diluted(2) |
|
|
394,532 |
|
|
|
393,951 |
|
|
|
394,160 |
|
|
|
383,266 |
|
__________________________ |
|
|
|
|
|
|
|
|
||||||||
(1) The assumed 25% tax rate approximates our statutory federal and state corporate tax rate. |
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(2) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021. |
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|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net income |
|
$ |
92,900 |
|
|
$ |
35,789 |
|
|
$ |
292,564 |
|
|
$ |
227,128 |
|
Amortization of acquired intangible assets in cost of revenues |
|
|
7,244 |
|
|
|
7,004 |
|
|
|
28,809 |
|
|
|
25,675 |
|
Amortization of acquired intangible assets in operating expenses |
|
|
18,932 |
|
|
|
17,780 |
|
|
|
74,817 |
|
|
|
62,457 |
|
Depreciation and other amortization |
|
|
6,880 |
|
|
|
8,249 |
|
|
|
29,018 |
|
|
|
28,812 |
|
Interest expense |
|
|
7,923 |
|
|
|
7,913 |
|
|
|
31,621 |
|
|
|
17,395 |
|
Other (income) expense |
|
|
(909 |
) |
|
|
856 |
|
|
|
(3,252 |
) |
|
|
827 |
|
Income tax expense |
|
|
40,471 |
|
|
|
10,652 |
|
|
|
111,404 |
|
|
|
43,852 |
|
EBITDA |
|
$ |
173,441 |
|
|
$ |
88,243 |
|
|
$ |
564,981 |
|
|
$ |
406,146 |
|
Stock-based compensation expense |
|
|
16,721 |
|
|
|
12,667 |
|
|
|
63,709 |
|
|
|
54,104 |
|
Acquisition and integration related costs |
|
|
3,243 |
|
|
|
65,892 |
|
|
|
18,718 |
|
|
|
92,523 |
|
Restructuring and related costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
413 |
|
Adjusted EBITDA |
|
$ |
193,405 |
|
|
$ |
166,802 |
|
|
$ |
647,408 |
|
|
$
|
553,186 |
|
CoStar Group, Inc. |
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Condensed Consolidated Balance Sheets - Unaudited |
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(in thousands) |
||||||||
|
|
|
|
|
||||
|
|
December 31,
|
|
December 31,
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash, cash equivalents and restricted cash |
|
$ |
3,827,126 |
|
|
$ |
3,755,912 |
|
Accounts receivable |
|
|
138,191 |
|
|
|
119,059 |
|
Less: Allowance for credit losses |
|
|
(13,374 |
) |
|
|
(15,110 |
) |
Accounts receivable, net |
|
|
124,817 |
|
|
|
103,949 |
|
Prepaid expenses and other current assets |
|
|
36,182 |
|
|
|
28,651 |
|
Total current assets |
|
|
3,988,125 |
|
|
|
3,888,512 |
|
|
|
|
|
|
||||
Deferred income taxes, net |
|
|
5,034 |
|
|
|
4,983 |
|
Property and equipment, net |
|
|
271,431 |
|
|
|
126,325 |
|
Lease right-of-use assets |
|
|
100,680 |
|
|
|
108,740 |
|
Goodwill |
|
|
2,321,015 |
|
|
|
2,235,999 |
|
Intangible assets, net |
|
|
435,662 |
|
|
|
426,745 |
|
Deferred commission costs, net |
|
|
101,879 |
|
|
|
93,274 |
|
Deposits and other assets |
|
|
21,762 |
|
|
|
15,856 |
|
Income tax receivable |
|
|
11,283 |
|
|
|
14,986 |
|
Total assets |
|
$ |
7,256,871 |
|
|
$ |
6,915,420 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
22,244 |
|
|
$ |
15,732 |
|
Accrued wages and commissions |
|
|
81,794 |
|
|
|
80,998 |
|
Accrued expenses |
|
|
81,676 |
|
|
|
110,305 |
|
Income taxes payable |
|
|
31,236 |
|
|
|
16,316 |
|
Lease liabilities |
|
|
26,268 |
|
|
|
32,648 |
|
Deferred revenue |
|
|
95,471 |
|
|
|
74,851 |
|
Total current liabilities |
|
|
338,689 |
|
|
|
330,850 |
|
|
|
|
|
|
||||
Long-term debt, net |
|
|
987,944 |
|
|
|
986,715 |
|
Deferred income taxes, net |
|
|
98,656 |
|
|
|
72,991 |
|
Income taxes payable |
|
|
12,496 |
|
|
|
25,282 |
|
Lease and other long-term liabilities |
|
|
107,414 |
|
|
|
124,223 |
|
Total liabilities |
|
$ |
1,545,199 |
|
|
$ |
1,540,061 |
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
5,711,672 |
|
|
|
5,375,359 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,256,871 |
|
|
$ |
6,915,420 |
|
CoStar Group, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows - Unaudited |
|||||||
(in thousands) |
|||||||
|
|
||||||
|
Year Ended December 31, |
||||||
|
|
2021 |
|
|
|
2020 |
|
Operating activities: |
|
|
|
||||
Net income |
$ |
292,564 |
|
|
$ |
227,128 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
139,558 |
|
|
|
116,944 |
|
Amortization of deferred commissions costs |
|
63,391 |
|
|
|
60,516 |
|
Amortization of Senior Notes discount and issuance costs |
|
2,327 |
|
|
|
1,658 |
|
Non-cash lease expense |
|
28,485 |
|
|
|
26,326 |
|
Stock-based compensation expense |
|
63,709 |
|
|
|
53,450 |
|
Deferred income taxes, net |
|
24,165 |
|
|
|
(11,530 |
) |
Credit loss expense |
|
10,928 |
|
|
|
25,212 |
|
Other operating activities, net |
|
(654 |
) |
|
|
288 |
|
|
|
|
|
||||
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable |
|
(29,630 |
) |
|
|
(36,118 |
) |
Prepaid expenses and other current assets |
|
(14,873 |
) |
|
|
1,936 |
|
Deferred commissions |
|
(72,038 |
) |
|
|
(64,355 |
) |
Accounts payable and other liabilities |
|
(30,051 |
) |
|
|
100,846 |
|
Lease liabilities |
|
(30,904 |
) |
|
|
(30,497 |
) |
Income taxes payable |
|
5,860 |
|
|
|
10,352 |
|
Deferred revenue |
|
17,396 |
|
|
|
2,188 |
|
Other assets |
|
(502 |
) |
|
|
1,762 |
|
Net cash provided by operating activities |
|
469,731 |
|
|
|
486,106 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Proceeds from sale and settlement of investments |
|
— |
|
|
|
10,259 |
|
Proceeds from sale of property and equipment and other assets |
|
612 |
|
|
|
— |
|
Purchase of Richmond assets and other intangibles |
|
(123,764 |
) |
|
|
— |
|
Purchases of property and equipment and other assets |
|
(65,220 |
) |
|
|
(48,347 |
) |
Cash paid for acquisitions, net of cash acquired |
|
(192,971 |
) |
|
|
(426,075 |
) |
Net cash used in investing activities |
|
(381,343 |
) |
|
|
(464,163 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Proceeds from long-term debt |
|
— |
|
|
|
1,744,210 |
|
Payments of debt issuance costs |
|
— |
|
|
|
(16,647 |
) |
Payments of long-term debt |
|
— |
|
|
|
(745,000 |
) |
Repurchase of restricted stock to satisfy tax withholding obligations |
|
(33,314 |
) |
|
|
(38,867 |
) |
Proceeds from equity offering, net of transaction costs |
|
— |
|
|
|
1,689,971 |
|
Proceeds from exercise of stock options and employee stock purchase plan |
|
18,046 |
|
|
|
30,280 |
|
Other financing activities |
|
(411 |
) |
|
|
(1,650 |
) |
Net cash (used in) provided by financing activities |
|
(15,679 |
) |
|
|
2,662,297 |
|
|
|
|
|
||||
Effect of foreign currency exchange rates on cash and cash equivalents |
|
(1,495 |
) |
|
|
941 |
|
Net increase in cash, cash equivalents and restricted cash |
|
71,214 |
|
|
|
2,685,181 |
|
Cash, cash equivalents and restricted cash at the beginning of period |
|
3,755,912 |
|
|
|
1,070,731 |
|
Cash, cash equivalents and restricted cash at the end of period |
$ |
3,827,126 |
|
|
$ |
3,755,912 |
|
CoStar Group, Inc. |
|||||||||||||||||
Disaggregated Revenues - Unaudited |
|||||||||||||||||
(in thousands) |
|||||||||||||||||
|
|
||||||||||||||||
|
Three Months Ended December 31, |
||||||||||||||||
|
2021 |
|
2020 |
||||||||||||||
|
North America |
|
International |
|
Total |
|
North America |
|
International |
|
Total |
||||||
CoStar |
$ |
181,478 |
|
$ |
8,915 |
|
$ |
190,393 |
|
$ |
160,842 |
|
$ |
7,896 |
|
$ |
168,738 |
Information Services |
|
28,764 |
|
|
7,112 |
|
|
35,876 |
|
|
27,048 |
|
|
6,930 |
|
|
33,978 |
Multifamily |
|
170,051 |
|
|
— |
|
|
170,051 |
|
|
160,370 |
|
|
— |
|
|
160,370 |
LoopNet(1) |
|
53,046 |
|
|
1,613 |
|
|
54,659 |
|
|
48,023 |
|
|
178 |
|
|
48,201 |
Residential(1) |
|
20,644 |
|
|
— |
|
|
20,644 |
|
|
— |
|
|
— |
|
|
— |
Other Marketplaces(1) |
|
35,163 |
|
|
— |
|
|
35,163 |
|
|
33,106 |
|
|
— |
|
|
33,106 |
Total revenues |
$ |
489,146 |
|
$ |
17,640 |
|
$ |
506,786 |
|
$ |
429,389 |
|
$ |
15,004 |
|
$ |
444,393 |
__________________________ |
|
|
|
|
|
|
|
|
|
|
|||||||
(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation. |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Year Ended December 31, |
||||||||||||||||
|
2021 |
|
2020 |
||||||||||||||
|
North America |
|
International |
|
Total |
|
North America |
|
International |
|
Total |
||||||
CoStar |
$ |
686,948 |
|
$ |
35,873 |
|
$ |
722,821 |
|
$ |
634,205 |
|
$ |
30,530 |
|
$ |
664,735 |
Information Services |
|
113,723 |
|
|
27,932 |
|
|
141,655 |
|
|
104,117 |
|
|
25,953 |
|
|
130,070 |
Multifamily |
|
678,680 |
|
|
— |
|
|
678,680 |
|
|
598,555 |
|
|
— |
|
|
598,555 |
LoopNet(1) |
|
204,816 |
|
|
2,695 |
|
|
207,511 |
|
|
179,371 |
|
|
434 |
|
|
179,805 |
Residential(1) |
|
74,583 |
|
|
— |
|
|
74,583 |
|
|
— |
|
|
— |
|
|
— |
Other Marketplaces(1) |
|
118,885 |
|
|
— |
|
|
118,885 |
|
|
85,854 |
|
|
— |
|
|
85,854 |
Total revenues |
$ |
1,877,635 |
|
$ |
66,500 |
|
$ |
1,944,135 |
|
$ |
1,602,102 |
|
$ |
56,917 |
|
$ |
1,659,019 |
__________________________ |
|
|
|
|
|
|
|
|
|
|
|||||||
(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation. |
|||||||||||||||||
CoStar Group, Inc. |
|||||||||||||||||||||||
Disaggregated Revenues - Unaudited |
|||||||||||||||||||||||
(in thousands) |
|||||||||||||||||||||||
|
|
||||||||||||||||||||||
|
|
||||||||||||||||||||||
|
2020 |
|
2021 |
||||||||||||||||||||
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
||||||||
CoStar |
$ |
164,956 |
|
$ |
165,053 |
|
$ |
165,988 |
|
$ |
168,738 |
|
$ |
172,184 |
|
$ |
176,979 |
|
$ |
183,265 |
|
$ |
190,393 |
Information Services |
|
32,382 |
|
|
30,536 |
|
|
33,174 |
|
|
33,978 |
|
|
34,696 |
|
|
35,157 |
|
|
35,926 |
|
|
35,876 |
Multifamily |
|
137,460 |
|
|
145,541 |
|
|
155,184 |
|
|
160,370 |
|
|
166,147 |
|
|
171,357 |
|
|
171,125 |
|
|
170,051 |
LoopNet(1) |
|
43,200 |
|
|
43,320 |
|
|
45,084 |
|
|
48,201 |
|
|
49,230 |
|
|
51,095 |
|
|
52,527 |
|
|
54,659 |
Residential(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
11,105 |
|
|
18,087 |
|
|
24,747 |
|
|
20,644 |
Other Marketplaces(1) |
|
13,849 |
|
|
12,709 |
|
|
26,190 |
|
|
33,106 |
|
|
24,335 |
|
|
27,658 |
|
|
31,729 |
|
|
35,163 |
Total revenues |
$ |
391,847 |
|
$ |
397,159 |
|
$ |
425,620 |
|
$ |
444,393 |
|
$ |
457,697 |
|
$ |
480,333 |
|
$ |
499,319 |
|
$ |
506,786 |
__________________________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation. |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CoStar Group, Inc. |
||||||||||||
Results of Segments - Unaudited |
||||||||||||
(in thousands) |
||||||||||||
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
EBITDA |
|
|
|
|
|
|
|
|||||
North America |
$ |
171,268 |
|
$ |
88,241 |
|
$ |
557,125 |
|
$ |
410,852 |
|
International |
|
2,173 |
|
|
2 |
|
|
7,856 |
|
|
(4,706 |
) |
Total EBITDA |
$ |
173,441 |
|
$ |
88,243 |
|
$ |
564,981 |
|
$ |
406,146 |
|
CoStar Group, Inc. |
||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures with 2020-2021 Quarterly Results - Unaudited |
||||||||||||||||||||||||||
(in millions, except per share data) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Reconciliation of Net Income to Non-GAAP Net Income |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2020 |
|
|
2021 |
|
||||||||||||||||||||
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Q3 |
Q4 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income |
|
$ |
72.8 |
|
$ |
60.4 |
|
$ |
58.2 |
|
$ |
35.8 |
|
|
$ |
74.2 |
|
$ |
61.1 |
|
$ |
64.3 |
|
$ |
92.9 |
|
Income tax expense |
|
|
5.6 |
|
|
16.9 |
|
|
10.7 |
|
|
10.7 |
|
|
|
19.1 |
|
|
32.8 |
|
|
19.0 |
|
|
40.5 |
|
Income before income taxes |
|
|
78.4 |
|
|
77.3 |
|
|
68.9 |
|
|
46.4 |
|
|
|
93.3 |
|
|
93.9 |
|
|
83.3 |
|
|
133.4 |
|
Amortization of acquired intangible assets |
|
|
17.5 |
|
|
21.0 |
|
|
24.9 |
|
|
24.8 |
|
|
|
25.8 |
|
|
25.3 |
|
|
26.3 |
|
|
26.2 |
|
Stock-based compensation expense |
|
|
15.2 |
|
|
9.5 |
|
|
16.7 |
|
|
12.7 |
|
|
|
15.5 |
|
|
15.1 |
|
|
16.3 |
|
|
16.7 |
|
Acquisition and integration related costs |
|
|
8.7 |
|
|
10.0 |
|
|
7.9 |
|
|
65.9 |
|
|
|
8.5 |
|
|
2.0 |
|
|
5.0 |
|
|
3.2 |
|
Restructuring and related costs |
|
|
— |
|
|
— |
|
|
0.4 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other expense |
|
|
— |
|
|
— |
|
|
0.1 |
|
|
— |
|
|
|
1.1 |
|
|
0.8 |
|
|
0.9 |
|
|
4.1 |
|
Non-GAAP income before income taxes(1) |
|
|
119.8 |
|
|
117.8 |
|
|
118.9 |
|
|
149.8 |
|
|
|
144.2 |
|
|
137.1 |
|
|
131.8 |
|
|
183.6 |
|
Assumed rate for income tax expense (2) |
|
|
25 |
% |
|
25 |
% |
|
25 |
% |
|
25 |
% |
|
|
25 |
% |
|
25 |
% |
|
25 |
% |
|
25 |
% |
Assumed provision for income tax expense |
|
|
(30.0 |
) |
|
(29.5 |
) |
|
(29.7 |
) |
|
(37.5 |
) |
|
|
(36.0 |
) |
|
(34.3 |
) |
|
(33.0 |
) |
|
(45.9 |
) |
Non-GAAP net income(1) |
|
$ |
89.8 |
|
$ |
88.3 |
|
$ |
89.2 |
|
$ |
112.3 |
|
|
$ |
108.2 |
|
$ |
102.8 |
|
$ |
98.8 |
|
$ |
137.7 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-GAAP net income per share - diluted(3) |
|
$ |
0.24 |
|
$ |
0.23 |
|
$ |
0.23 |
|
$ |
0.29 |
|
|
$ |
0.27 |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Weighted average outstanding shares - basic(3) |
|
|
364.7 |
|
|
375.2 |
|
|
391.6 |
|
|
391.4 |
|
|
|
391.6 |
|
|
392.3 |
|
|
392.4 |
|
|
392.5 |
|
Weighted average outstanding shares - diluted(3) |
|
|
367.8 |
|
|
377.3 |
|
|
394.0 |
|
|
394.0 |
|
|
|
393.7 |
|
|
394.1 |
|
|
394.3 |
|
|
394.5 |
|
__________________________ |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Totals may not foot due to rounding. |
||||||||||||||||||||||||||
(2) The assumed 25% tax rate approximates our statutory federal and state corporate tax rate. |
||||||||||||||||||||||||||
(3) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021. |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2020 |
|
|
2021 |
|
||||||||||||||||||||
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Q3 |
Q4 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income |
|
$ |
72.8 |
|
$ |
60.4 |
|
$ |
58.2 |
|
$ |
35.8 |
|
|
$ |
74.2 |
|
$ |
61.1 |
|
$ |
64.3 |
|
$ |
92.9 |
|
Amortization of acquired intangible assets |
|
|
17.5 |
|
|
21.0 |
|
|
24.9 |
|
|
24.8 |
|
|
|
25.8 |
|
|
25.3 |
|
|
26.3 |
|
|
26.2 |
|
Depreciation and other amortization |
|
|
6.8 |
|
|
7.0 |
|
|
6.8 |
|
|
8.2 |
|
|
|
8.5 |
|
|
7.0 |
|
|
6.6 |
|
|
6.9 |
|
Interest (income) expense |
|
|
(1.7 |
) |
|
3.6 |
|
|
7.5 |
|
|
7.9 |
|
|
|
7.9 |
|
|
7.9 |
|
|
7.9 |
|
|
7.9 |
|
Other (income) expense |
|
|
(0.8 |
) |
|
0.4 |
|
|
0.3 |
|
|
0.9 |
|
|
|
0.1 |
|
|
(0.8 |
) |
|
(1.5 |
) |
|
(0.9 |
) |
Income tax expense |
|
|
5.6 |
|
|
16.9 |
|
|
10.7 |
|
|
10.7 |
|
|
|
19.1 |
|
|
32.8 |
|
|
19.0 |
|
|
40.5 |
|
EBITDA(1) |
|
$ |
100.2 |
|
$ |
109.3 |
|
$ |
108.4 |
|
$ |
88.3 |
|
|
$ |
135.6 |
|
$ |
133.3 |
|
$ |
122.6 |
|
$ |
173.4 |
|
Stock-based compensation expense |
|
|
15.1 |
|
|
9.5 |
|
|
16.7 |
|
|
12.7 |
|
|
|
15.5 |
|
|
15.1 |
|
|
16.3 |
|
|
16.7 |
|
Acquisition and integration related costs |
|
|
8.7 |
|
|
10.0 |
|
|
7.9 |
|
|
65.9 |
|
|
|
8.5 |
|
|
2.0 |
|
|
5.0 |
|
|
3.2 |
|
Restructuring and related costs |
|
|
— |
|
|
— |
|
|
0.4 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted EBITDA(1) |
|
$ |
124.0 |
|
$ |
128.8 |
|
$ |
133.4 |
|
$ |
166.9 |
|
|
$ |
159.6 |
|
$ |
150.4 |
|
$ |
143.9 |
|
$ |
193.4 |
|
__________________________ |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(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 March 31, 2022 |
|
December 31, 2022 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
73,000 |
|
|
$ |
77,000 |
|
|
$ |
249,000 |
|
|
$ |
279,000 |
|
Income tax expense |
|
23,000 |
|
|
|
24,000 |
|
|
|
82,000 |
|
|
|
92,000 |
|
Income before income taxes |
|
96,000 |
|
|
|
101,000 |
|
|
|
331,000 |
|
|
|
371,000 |
|
Amortization of acquired intangible assets |
|
23,000 |
|
|
|
23,000 |
|
|
|
87,000 |
|
|
|
87,000 |
|
Stock-based compensation expense |
|
18,000 |
|
|
|
18,000 |
|
|
|
78,000 |
|
|
|
78,000 |
|
Acquisition and integration related costs |
|
2,000 |
|
|
|
2,000 |
|
|
|
2,000 |
|
|
|
2,000 |
|
Other expense |
|
1,000 |
|
|
|
1,000 |
|
|
|
1,000 |
|
|
|
1,000 |
|
Non-GAAP income before income taxes |
|
140,000 |
|
|
|
145,000 |
|
|
|
499,000 |
|
|
|
539,000 |
|
Assumed rate for income tax expense(1) |
|
25 |
% |
|
|
25 |
% |
|
|
25 |
% |
|
|
25 |
% |
Assumed provision for income tax expense |
|
(35,000 |
) |
|
|
(36,300 |
) |
|
|
(124,800 |
) |
|
|
(134,800 |
) |
Non-GAAP net income |
$ |
105,000 |
|
|
$ |
108,700 |
|
|
$ |
374,200 |
|
|
$ |
404,200 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - diluted(2) |
$ |
0.19 |
|
|
$ |
0.20 |
|
|
$ |
0.63 |
|
|
$ |
0.71 |
|
Non-GAAP net income per share - diluted(2) |
$ |
0.27 |
|
|
$ |
0.28 |
|
|
$ |
0.95 |
|
|
$ |
1.02 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average outstanding shares - diluted(2) |
|
394,400 |
|
|
|
394,400 |
|
|
|
394,700 |
|
|
|
394,700 |
|
__________________________ |
|
|
|
|
|
|
|
||||||||
(1) The assumed 25% tax rate approximates our statutory federal and state corporate tax rate. |
|||||||||||||||
(2) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021. |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA |
|||||||||||||||
|
|
|
|
||||||||||||
|
Guidance Range |
|
Guidance Range |
||||||||||||
|
For the Three Months |
|
For the Year Ending |
||||||||||||
|
Ending March 31, 2022 |
|
December 31, 2022 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
Net income |
$ |
73,000 |
|
|
$ |
77,000 |
|
|
$ |
249,000 |
|
|
$ |
279,000 |
|
Amortization of acquired intangible assets |
|
23,000 |
|
|
|
23,000 |
|
|
|
87,000 |
|
|
|
87,000 |
|
Depreciation and other amortization |
|
8,000 |
|
|
|
8,000 |
|
|
|
36,000 |
|
|
|
36,000 |
|
Interest expense |
|
8,000 |
|
|
|
8,000 |
|
|
|
32,000 |
|
|
|
32,000 |
|
Other (income) |
|
— |
|
|
|
— |
|
|
|
(1,000 |
) |
|
|
(1,000 |
) |
Income tax expense |
|
23,000 |
|
|
|
24,000 |
|
|
|
82,000 |
|
|
|
92,000 |
|
Stock-based compensation expense |
|
18,000 |
|
|
|
18,000 |
|
|
|
78,000 |
|
|
|
78,000 |
|
Acquisition and integration related costs |
|
2,000 |
|
|
|
2,000 |
|
|
|
2,000 |
|
|
|
2,000 |
|
Adjusted EBITDA |
$ |
155,000 |
|
|
$ |
160,000 |
|
|
$ |
565,000 |
|
|
$ |
605,000 |
|
About CoStar Group, Inc.
CoStar Group, Inc. (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information and analytics. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com offers real estate professionals advertising and marketing services for residential properties. Realla is the UK’s most comprehensive commercial property digital marketplace. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. CoStar Group’s websites attract tens of millions of 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, www.costargroup.com, as a channel of distribution for material company information.
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 sales bookings, site traffic and visitors, leads, and renewal rates; the risk that the Company is unable to sustain current Company-wide, CoStar or Apartments net sales bookings and that the slowdown in revenue growth and sales bookings that Apartments.com experienced earlier in 2021 is not yet fully resolved; the risk that the Company is unable to realize the full potential of the residential property opportunity as stated in this press release; the risk that the level of investment in residential products, content, sales and marketing is not as expected and set forth in this press release or changes; the risk that revenues for the first quarter and full year 2022 will not be as stated in this press release; the risk that revenues from Residential products for the full year 2022 will not be as stated in this press release; the risk that net income for the first quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the first quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the full year 2022, excluding the Residential product revenue and investments, will not be as stated in this press release; the risk that profit margins for commercial property information and marketplace businesses in 2022, excluding Residential growth investments, 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 first quarter and full year 2022 will not be as stated in this press release; the risk that the tax rate estimates stated in this press release may change; uncertainty surrounding the impact of the COVID-19 pandemic, including volatility in the international and U.S. economy and the real estate industry, employee attrition, absenteeism or decreased productivity, quarantines or other travel or health-related restrictions; the length and severity of the COVID-19 pandemic; the pace of recovery following the COVID-19 pandemic; and government and private actions taken to control the spread of COVID-19. 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, including in CoStar Group’s Annual Report on Form 10-K for the year ended December 31, 2020 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021, 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/20220222006198/en/
Contacts
Investor Relations:
Bill Warmington
Vice President
CoStar Group Investor Relations
(202) 346-5661
wwarmington@costar.com
News Media:
Matthew Blocher
Vice President
CoStar Group Corporate Marketing & Communications
(202) 346-6775
mblocher@costargroup.com
