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.

• Net income for Q3 2024 was $53 million, up 176% from Q2 2024 but down 42% from Q3 2023 due to higher operating expenses.

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

• Apartments.com and CoStar, both billion-dollar run rate businesses, delivered double-digit revenue growth.

• Major acquisitions included OnTheMarket (completed), and pending Matterport and Visual Lease deals expected to close in late 2024 or early 2025.

Financial highlights

• Q3 2024 revenue: $693 million (+11% YoY); nine-month revenue: $2.03 billion (+12% YoY).

• Q3 2024 net income: $53 million; diluted EPS: $0.13; non-GAAP net income: $88 million; non-GAAP EPS: $0.22.

• Gross profit for Q3 2024: $552 million; gross margin: 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.

Outlook and guidance

• Full-year 2024 revenue outlook is $2.72–$2.73 billion, representing 11% growth.

• Adjusted EBITDA for 2024 expected in the $205–$215 million range, up from prior guidance.

• Q4 2024 revenue guidance: $693–$703 million (+9% YoY); Q4 adjusted EBITDA: $76–$86 million.

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

• Continued elevated expenses in marketing, research, and facilities are expected to reduce net income and cash on hand for the remainder of 2024.