CoStar Group (CSGP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $693 million, up 11% year-over-year, marking the 54th consecutive quarter of double-digit growth, driven by strong performance in core segments including Apartments.com, CoStar, and Residential.

• Net income for Q3 2024 was $53 million, up 176% sequentially but down 42% from Q3 2023 due to higher operating expenses, especially in marketing and personnel.

• Adjusted EBITDA for Q3 2024 was $76 million, exceeding guidance, with a consolidated margin of 11%.

• Core businesses posted double-digit revenue growth; Homes.com ramp-up and marketing investments impacted short-term bookings but are expected to drive long-term gains.

• Average monthly unique visitors to company sites hit 163 million in Q3, up 28% year-over-year; Homes.com Network reached 130 million, up 17%.

Financial highlights

• Q3 2024 revenue: $693 million (+11% YoY); net income: $53 million; adjusted EBITDA: $76 million; net new bookings: $44 million.

• Gross profit for Q3 2024: $552 million; gross margin stable at 80%.

• Operating expenses for Q3 2024 rose 20% to $528 million, mainly due to higher marketing and personnel costs.

• Cash and cash equivalents at September 30, 2024: $4.9 billion.

• Q3 2024 diluted EPS: $0.13; non-GAAP net income: $88 million; non-GAAP EPS: $0.22.

Outlook and guidance

• Full-year 2024 revenue outlook: $2.72–$2.73 billion (+11% YoY); Q4 2024 revenue guidance: $693–$703 million (+9% YoY).

• Adjusted EBITDA guidance for 2024: $205–$215 million, up 5% from prior guidance.

• Q4 2024 non-GAAP EPS guidance: $0.21–$0.23; full-year non-GAAP EPS: $0.67–$0.69.

• No increase in Homes.com investment expected for 2025; marketing spend to decrease, offset by sales force growth.

• Pending acquisitions of Matterport and Visual Lease expected to close in Q4 2024 or Q1 2025, subject to regulatory approvals.