CoStar Group (CSGP) Stephens Annual Investment Conference summary

Apartments business performance and strategy

• Achieved double-digit revenue growth for 13 consecutive quarters, now leading with over $1.2 billion in revenue and significant market share advantage over competitors.

• Technology and original content, including Matterport Plus, drive differentiation and customer engagement, with a focus on expanding into underpenetrated market segments.

• AI integration is expected to further enhance search, customer experience, and operational efficiency, supporting continued growth.

• Renewed investment in sales force, increasing headcount by about 20%, aims to capture more of the $9 billion TAM, especially in the 1-49 unit segment where penetration is under 1%.

• In-person sales and a metrics-driven approach are key to maintaining high productivity and expanding market reach.

Content protection, AI, and Matterport integration

• Aggressively protects intellectual property, including legal action against competitors for copyright infringement and strict control over data access.

• AI is viewed as an accelerator, not a threat, with ongoing internal adoption to improve products and efficiency.

• Matterport Plus program is being integrated across platforms, with over 500 packages sold and high user engagement; 9 out of 10 users interact with Matterport listings.

• Transitioning Matterport from a B2C to a B2B model, targeting enterprise clients for broader adoption.

• Proprietary data and original content are seen as key AI defensibility factors, supporting product differentiation.

Homes.com strategy and performance

• Focuses on supporting listing agents and home sellers with digital advertising, retargeting, and unique content, differentiating from buy-side lead models.

• Rapid growth with 26,000 agent subscribers and 130,000 paid listings, supported by improved retention and a rising NPS of 43.

• Pricing strategy balances penetration and value, with plans to introduce tiered advertising as agent adoption increases.

• The platform leverages integration with other business lines, creating a data and technology flywheel across the ecosystem.

• U.S. residential market is seen as a multi-billion dollar, high-margin opportunity, with international benchmarks guiding strategy.