CoStar Group (CSGP) 2024 RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference summary

Investor Day and management focus

• Upcoming Investor Day will showcase the management team and highlight the full product and service suite, with a special focus on Homes.com and other high-margin, high-growth business segments.

• The event is not a financial update but aims to provide a comprehensive view of value drivers across the business.

• Limited in-person attendance, with plans to maximize online accessibility for broader participation.

Homes.com strategy and differentiation

• Homes.com offers a unique model focused on supporting listing agents, enhancing their brand and lead generation, unlike traditional buyer-lead platforms.

• The platform provides exclusive agent contact, improved listing exposure, and retargeting capabilities, aiming to increase asset yield for agents.

• Early growth is attributed to a differentiated approach, with a dedicated sales force being built to accelerate expansion.

• Marketing efforts target agents' existing advertising budgets, offering more efficient digital exposure and lead quality.

Sales force development and business momentum

• Initial sales relied on a generalist sales force, but a dedicated team is now being built, with a new head of sales and regional managers hired in early 2024.

• Targeting 300 salespeople by year-end, with plans to more than double that in the following year, scaling with business needs.

• Improved training and messaging have led to better alignment with target customers and reduced churn.

• Early sales efforts established a revenue foundation, with specialists now positioned to drive long-term value.