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CoStar Group (CSGP) Q2 Earnings Beat Estimates, Revenues Up Y/Y
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CoStar Group (CSGP - Free Report) reported non-GAAP earnings of 15 cents per share in second-quarter 2024, surpassing the Zacks Consensus Estimate by 66.67% but plunging 51.6% year over year.
Revenues of $678 million beat the Zacks Consensus Estimate by 0.14% and increased 12% year over year. The upside was driven by robust performance in key segments.
Top-Line Details
CoStar revenues (37.3% of revenues) of $253 million beat the consensus estimate by 0.61% and increased 10.4% year over year.
Apartments.com revenues increased 18% year over year. Net new bookings in the second quarter amounted to $67 million, with 79% from commercial real estate products and 21% from Homes.com memberships.
CoStar Group, Inc. Price, Consensus and EPS Surprise
Information Services revenues (4.9% of revenues) of $33.4 million beat the consensus mark by 2.93% but declined 20.3% year over year.
Multifamily revenues (39% of revenues) of $264.2 million beat the consensus estimate by 0.24% and increased 17.8% year over year.
LoopNet revenues (10.3% of revenues) of $70 million beat the consensus mark by 0.38% and were up 6.6% year over year.
Second-quarter residential revenues (3.9% of revenues) were $26.2 million, missing the consensus mark by 7.91% and increased 106.3% year over year. In June, residential network traffic hit a record of 148 million unique visitors, a 73% increase year over year.
Other marketplace revenues (4.6% of revenues) of $31.2 million missed the consensus mark by 5.21% and declined 3.4% year over year.
As reported by Google Analytics, Homes.com achieved a milestone with 99 million unique visitors in the second quarter of 2024, surging 197% year over year.
CoStar’s global websites reached a record 183 million average monthly unique visitors, an 81% increase year-over-year.
OnTheMarket, CoStar’s U.K. residential real estate portal, saw listings increase by 41% to 716,000 and average monthly visits rise 78% compared with the June 2023 tally. Average monthly unique visitors also increased by 118%.
In the second quarter, CSGP launched the Owner module, which provided enhanced insights into real estate portfolios, contributing to increased customer engagement.
Operating Details
In the reported quarter, selling and marketing expenses increased 43.4% year over year to $358.4 million. As a percentage of revenues, selling and marketing expenses were 52.9% compared with 41.3% reported in the year-ago quarter.
General and administrative expenses, as a percentage of revenues, expanded 130 basis points (bps) on a year-over-year basis to 16.2%.
Software development expenses, as a percentage of revenues, expanded by 130 bps. Customer base amortization expenses contracted 20 bps on a year-over-year basis.
Adjusted EBITDA margin in the second quarter was 6% compared with 20.9% in the year-ago quarter.
Balance Sheet and Cash Flow Statement
CoStar reported cash and cash equivalents of $4.9 billion as of Jun 30, 2024, compared with $5 billion as of Mar 31, 2024.
The company had a long-term debt of $991.2 million as of Jun 30, 2024, compared with $990.8 million as of Mar 31, 2024.
It generated $189.2 million in cash from operations compared with $139.6 million in the previous quarter.
Guidance
CoStar expects third-quarter 2024 revenues between $692 million and $697 million, indicating year-over-year growth of approximately 11% at the midpoint.
The company anticipates adjusted EBITDA to be between $47 million and $52 million for the second quarter of 2024.
Earnings are expected to be between 15 cents and 16 cents for the third quarter of 2024.
Zacks Rank & Stocks to Consider
CoStar currently carries a Zacks Rank #4 (Sell).
CSGP’s shares have declined 14.4% compared with the Zacks Computer and Technology sector’s rise of 23.8% year to date.
Arista Networks (ANET - Free Report) , Apple (AAPL - Free Report) and Cognizant Technology Solutions (CTSH - Free Report) are some better-ranked stocks that investors can consider in the broader sector. Arista Network sports a Zacks Rank #1 (Strong Buy) at present, whereas Apple and Cognizant Technology Solutions carry Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 45.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Apple shares have gained 16.3% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions’ shares have dropped 0.5% year to date. CTSH is set to report its second-quarter 2024 results on Jul 31.
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CoStar Group (CSGP) Q2 Earnings Beat Estimates, Revenues Up Y/Y
CoStar Group (CSGP - Free Report) reported non-GAAP earnings of 15 cents per share in second-quarter 2024, surpassing the Zacks Consensus Estimate by 66.67% but plunging 51.6% year over year.
Revenues of $678 million beat the Zacks Consensus Estimate by 0.14% and increased 12% year over year. The upside was driven by robust performance in key segments.
Top-Line Details
CoStar revenues (37.3% of revenues) of $253 million beat the consensus estimate by 0.61% and increased 10.4% year over year.
Apartments.com revenues increased 18% year over year. Net new bookings in the second quarter amounted to $67 million, with 79% from commercial real estate products and 21% from Homes.com memberships.
CoStar Group, Inc. Price, Consensus and EPS Surprise
CoStar Group, Inc. price-consensus-eps-surprise-chart | CoStar Group, Inc. Quote
Information Services revenues (4.9% of revenues) of $33.4 million beat the consensus mark by 2.93% but declined 20.3% year over year.
Multifamily revenues (39% of revenues) of $264.2 million beat the consensus estimate by 0.24% and increased 17.8% year over year.
LoopNet revenues (10.3% of revenues) of $70 million beat the consensus mark by 0.38% and were up 6.6% year over year.
Second-quarter residential revenues (3.9% of revenues) were $26.2 million, missing the consensus mark by 7.91% and increased 106.3% year over year. In June, residential network traffic hit a record of 148 million unique visitors, a 73% increase year over year.
Other marketplace revenues (4.6% of revenues) of $31.2 million missed the consensus mark by 5.21% and declined 3.4% year over year.
As reported by Google Analytics, Homes.com achieved a milestone with 99 million unique visitors in the second quarter of 2024, surging 197% year over year.
CoStar’s global websites reached a record 183 million average monthly unique visitors, an 81% increase year-over-year.
OnTheMarket, CoStar’s U.K. residential real estate portal, saw listings increase by 41% to 716,000 and average monthly visits rise 78% compared with the June 2023 tally. Average monthly unique visitors also increased by 118%.
In the second quarter, CSGP launched the Owner module, which provided enhanced insights into real estate portfolios, contributing to increased customer engagement.
Operating Details
In the reported quarter, selling and marketing expenses increased 43.4% year over year to $358.4 million. As a percentage of revenues, selling and marketing expenses were 52.9% compared with 41.3% reported in the year-ago quarter.
General and administrative expenses, as a percentage of revenues, expanded 130 basis points (bps) on a year-over-year basis to 16.2%.
Software development expenses, as a percentage of revenues, expanded by 130 bps. Customer base amortization expenses contracted 20 bps on a year-over-year basis.
Adjusted EBITDA margin in the second quarter was 6% compared with 20.9% in the year-ago quarter.
Balance Sheet and Cash Flow Statement
CoStar reported cash and cash equivalents of $4.9 billion as of Jun 30, 2024, compared with $5 billion as of Mar 31, 2024.
The company had a long-term debt of $991.2 million as of Jun 30, 2024, compared with $990.8 million as of Mar 31, 2024.
It generated $189.2 million in cash from operations compared with $139.6 million in the previous quarter.
Guidance
CoStar expects third-quarter 2024 revenues between $692 million and $697 million, indicating year-over-year growth of approximately 11% at the midpoint.
The company anticipates adjusted EBITDA to be between $47 million and $52 million for the second quarter of 2024.
Earnings are expected to be between 15 cents and 16 cents for the third quarter of 2024.
Zacks Rank & Stocks to Consider
CoStar currently carries a Zacks Rank #4 (Sell).
CSGP’s shares have declined 14.4% compared with the Zacks Computer and Technology sector’s rise of 23.8% year to date.
Arista Networks (ANET - Free Report) , Apple (AAPL - Free Report) and Cognizant Technology Solutions (CTSH - Free Report) are some better-ranked stocks that investors can consider in the broader sector. Arista Network sports a Zacks Rank #1 (Strong Buy) at present, whereas Apple and Cognizant Technology Solutions carry Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 45.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Apple shares have gained 16.3% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions’ shares have dropped 0.5% year to date. CTSH is set to report its second-quarter 2024 results on Jul 31.