CoStar Group (CSGP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $678 million, up 12% year-over-year, with net new bookings of $67 million and record 183 million monthly average unique visitors across platforms.

• Net income for Q2 2024 was $19 million, or $0.05 per diluted share, down 81% year-over-year due to higher marketing and personnel costs.

• Homes.com net new bookings surpassed $55 million YTD, with 148 million monthly average unique visitors, and unaided brand awareness rose to 27%.

• Apartments.com and CoStar both exceeded $1 billion annualized run rates, with Apartments.com serving 76,000 communities and 49 million monthly unique visitors.

• The OnTheMarket acquisition and launch of new Homes.com memberships contributed to Residential segment growth.

Financial highlights

• Q2 2024 revenue: $678 million (+12% year-over-year); YTD revenue: $1.33 billion (+12% year-over-year).

• Adjusted EBITDA for Q2 2024 was $41 million (6% margin), above guidance; YTD adjusted EBITDA: $53 million.

• Net income: $19 million ($0.05/diluted share); non-GAAP net income: $61 million ($0.15/diluted share).

• Gross margin: 80% in Q2 2024, down from 81% in Q2 2023; operating margin: -2% in Q2 2024.

• Cash and cash equivalents at June 30, 2024 were $4.9 billion, with no outstanding borrowings under the $1.1 billion revolving credit facility.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $2.735–$2.745 billion, up 12% at midpoint; Q3 2024 revenue expected at $692–$697 million (+11% year-over-year at midpoint).

• Adjusted EBITDA guidance for 2024 increased to $195–$205 million; Q3 expected at $47–$52 million.

• Full-year 2024 non-GAAP net income per diluted share expected at $0.64–$0.66; Q3 2024 guidance is $0.15–$0.16.

• Residential revenue guidance for 2024 revised to $105–$110 million.

• The Matterport acquisition is expected to close in Q4 2024, with $940 million in cash consideration.