Costar Group, Inc. · NASDAQ:CSGP
Costar — Q4 2024 Earnings Presentation
52 slides from Costar's earnings presentation, Feb 18, 2025
Slide 1: Fourth Quarter and Full Year 2024 Investor Presentation
Fourth Quarter and Full Year 2024 Investor Presentation
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation of CoStar Group, Inc. (“CoStar Group” or the “Company”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar Group's plans, objecti
Slide 3: Fourth Quarter and Full Year 2024 Highlights
Fourth Quarter and Full Year 2024 Highlights
Slide 4: Fourth Quarter and Full Year 2024 Highlights
Fourth Quarter and Full Year 2024 Highlights • Full year 2024 Revenue of $2.74 billion increased 11% year-over-year, exceeding the high end of our guidance • Fourth quarter 2024 Revenue of $709 million increased 11% year-over-year for the 55th consecutive quarter of double-digit revenue growth • Ful
Slide 5: Year-over-Year Traffic Growth of 17% in Q4 2024
Year-over-Year Traffic Growth of 17% in Q4 2024 200 180 134 Average Monthly Unique Visitors (in millions) MILLION 160 140 120 100 80 60 40 20 - 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21 1Q22 3Q22 1Q23 3Q23 1Q24 3Q24 *Prior to June 1, 2024, we measured
Slide 6: Fourth Quarter and Year to Date 2024 Results
Fourth Quarter and Year to Date 2024 Results Fourth Quarter Full Year $709 million $2,736 million Revenue 11% year-over-year growth 11% year-over-year growth $60 million $139 million Net Income $0.15 per diluted share $0.34 per diluted share Adjusted EBITDA $112 million $241 million Net New Bookings
Slide 7: 2025 First Quarter and Full Year Outlook
2025 First Quarter and Full Year Outlook First Quarter Full Year $711 million to $716 million $2.985 billion to $3.015 billion Revenue ~9% year-over-year growth 10% year-over-year growth $25 million to $35 million $375 million to $405 million Adjusted EBITDA 4% margin 13% margin
Slide 8: Company Overview
Oe CoStar Group” Company Overview
Slide 9: Mission Statement
MISSION STATEMENT We are digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives. Oe} CoStar Group”
Slide 10: CoStar Group is the Global Leader in Digitizing Real Estate
CoStar Group is the Global Leader in Digitizing Real Estate 39 3 billion+ $5 billion+ ~6,550 years of real estate annual visits investment in research employees experience to our websites and technology member of the 500 Innovator of the Year COMPANY OF THE YEAR Best Integrated Marketing Campaign 75
Slide 11: 39 Years of Growth and Innovation
39 Years of Growth and Innovation
Slide 12: A Global Leader in the Digital Transformation of the $300+ Trillion Real Estate Industry
A Global Leader in the Digital Transformation of the $300+ Trillion Real Estate Industry • Long growth runway: Global addressable market for real estate information and marketplaces estimated at > $100 billion. • Strong competitive position: Massive proprietary dataset built over 39 years with > $5
Slide 13: Global Real Estate: A $300 Trillion Asset Class
Global Real Estate: A $300 Trillion Asset Class U.S. REAL ESTATE $70 TRILLION GLOBAL REAL ESTATE (Year CoStar entered market) $300 TRILLION Office (1986) Industrial (1994) United States Retail (2004) Rural Land (2011) Apartment (2014) Single Family Hotel Residential/ (2019) Canada New Homes China (2
Slide 14: $40B+ North American Addressable Market, Global Market > $100B
$40B+ North American Addressable Market, Global Market > $100B Total North American Addressable Market $4 Billion $9 Billion $5 Billion >$15 Billion $6 Billion 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% TAM S ources: CoStar, A partments, LoopNet a nd Ten-X – CoStar estimate Homes.com – extrapolatio
Slide 15: Strong Double-Digit Growth with Two Brands Over $1 Billion in Revenue
Strong Double-Digit Growth with Two Brands Over $1 Billion in Revenue 5 YEAR CAGR $2.7B 14% 20% TOTAL 5 YEAR REVENUE CAGR $2.5B 9% 118% 2023-2024 only $2.2B 13% $1.9B $1.7B $1.1B 17% $1.4B $1.0B 11% 2019 2020 2021 2022 2023 2024 Costar Multifamily LoopNet Residential Information Services Other Marke
Slide 16: Consecutive Quarters of Double-Digit Revenue Growth
55 Consecutive Quarters of Double-Digit Revenue Growth Regardless of Commercial Property Transaction Volumes Quarterly Revenue Transaction Volumes High Inflation 800 2022-2024: +12% Growth 700 Pandemic 260 • 96% subscription revenue 2020-2021: +18% Growth 600 • 80% annual contracts Quarterly Revenue
Slide 17: More Diversified with More Countercyclical Business Mix
More Diversified with More Countercyclical Business Mix Since the Great Recession 2008 REVENUE 2024 REVENUE Other Marketplaces Other 5% Information Revenue Residential Services 4% LoopNet 10% CoStar 37% CoStar Information Marketplaces 92% & Analytics 58% 42% Information & Analytics Information Multi
Slide 18: Diversified Client Base with Minimal Concentration
Diversified Client Base with Minimal Concentration TOP 1,000 CLIENTS: REVENUE BY CLIENT SEGMENT NONE MORE THAN ~2% Owner Lender 38% 3% Corporate/Retail 4% Investor 5% Other 10% Broker Property 21% Management 19% *Re ven ue by client segmen t and by clien t extr apolated from December 20 24 CoStar bi
Slide 19: Successful Acquisition and Integration Track Record
Successful Acquisition and Integration Track Record $700 2024 REVENUE COMPOSITION Acquired $600 24% $500 Millions $400 Organic 76% $300 $200 $100 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Organic Revenue Acquired Revenue at the time of acquisition
Slide 20: High-Growth, High-Margin Subscription Business Model
High-Growth, High-Margin Subscription Business Model ✓ 23% Revenue CAGR since IPO 27 years ago Double-Digit Revenue Growth ✓ Double-digit revenue growth for 55 straight quarters Predictable Subscription ✓ 96% subscription revenue with 80% annual contracts Services Revenue ✓ 94% renewal rate for clie
Slide 21: The fastest growing U.S. residential marketplace
The fastest growing U.S. residential marketplace
Slide 22: Our Vision
Our Vision Establish Homes.com as the #1 residential real estate marketplace
Slide 23: Homes.com by the Numbers
Homes.com by the Numbers 110M 2.4M Homes.com Network Residential For Sale Average Monthly and Rental Listings Unique Visitors $59M Annualized Net New Bookings ~11K Millions Member Agents of Leads *Sour ces: Traffic data from Go ogle Analytics for the fourth quarter of 2 024. All other based on Inter
Slide 24: Homes.com Network is the #2 Residential Real Estate Marketplace
Homes.com Network is the #2 Residential Real Estate Marketplace 204M Average Monthly Unique Visitors (in millions) 110M 62M Zillow Group Homes.com Network Realtor.com Based on (1) Zillow Group’s average monthly unique users (204 million) for the quarter ended December 31, 2024, as reported in Zillow
Slide 25: A Better Business Model – Your Listing, Your Lead
A Better Business Model – “Your Listing, Your Lead” • The most powerful real estate digital marketing solution to sell a home • Agents are using Homes.com to sell homes faster, win more listings and grow their brands • Only Homes.com prominently displays the listing agent on the listing and connects
Slide 26: Homes.com Displays the Listing Agent, Firm & Buyer Agent Directory
Homes.com Displays the Listing Agent, Firm & Buyer Agent Directory
Slide 27: Marketplaces Adhering to Your Listing, Your Lead Are the Most Successful
The Real Estate Marketplaces Adhering to the Your Listing, Your Lead Principal are the Most Successful Not Your Listing, Your Lead Your Listing, Your Lead $2.5 $2.0 $2.0 $1.5 $1.5 $1.0 $1.0 $0.5 $0.5 $0.0 Zillow Redfin $0.0 ($0.5) CoStar Group Rightmove REA Group Scout24 ($0.5) ($1.0) ($1.0) ($1.5)
Slide 28: Our Proprietary Content Sets Us Apart
Our Proprietary Content Sets Us Apart. Consumers Aren’t Just Looking for a Home, They’re Looking for a Community Homes.com is digitizing rich content for communities across the U.S. Completed 21,000+ Neighborhoods 5,000+ 65,000+ Cities Condo Buildings 2,000 Complete 14,000 Complete 125,000+ 40,000+
Slide 29: We've done your home work.
“We’ve done your home work.” Supercharged Marketing Campaign
Slide 30: Biggest Real Estate Campaign Ever
BIGGEST Real Estate Campaign Ever Working on behalf of the industry to help agents sign more buyer and seller agreements, drive demand for their listings and close more transactions. Over a Reaching BILLION 80 90% DOLLARS BILLION invested impressions of households
Slide 31: Homes.com is EVERYWHERE
Homes.com is EVERYWHERE No other competitors come close to our investment to drive leads to all agents
Slide 32: Member Agent Listings Sell Homes Faster and Win More Listings
Member Agent Listings Sell Homes Faster and Win More Listings Than Non-Member Agents 4X more listing shares 6X more favorites 20% more likely to go under contract 58% more listings won in within first 10 days a month on average All data from internal CoStar database as of December 31, 2024, comparin
Slide 33: Investing to Create the #1 Residential Portal in the UK
Year-Over-Year Growth Investing to Create the #1 Residential Portal in the UK Traffic Unique Visitors Total Stock on Site +75% +112% +43% Listings Sales Leads +23% +42% *Year over year growth as of December 31, 2024. Traffic per Google Analytics. All other data from internal CoStar database as of De
Slide 34: Discover your new home. Helping 100 million renters find their perfect fit.
Discover your new home. Helping 100 million renters find their perfect fit.
Slide 35: Apartments.com by the Numbers
Apartments.com by the Numbers $1.1B 17% Year-over-Year Revenue Revenue Growth 66% 1M+ Unaided Brand Rental Awareness Availabilities ~1B 43M Average Monthly Annual Visits Unique Visitors *All data as of December 31, 2024. Revenue is based on FY 2024. Traffic data for Apartments.com Network from Googl
Slide 36: More Apartment Communities Advertise on Apartments.com
More Apartment Communities Advertise on Apartments.com ~75,000 APARTMENT COMMUNITIES now advertise on Apartments.com
Slide 37: Owners & Operators Rank Apartments.com #1 in Metrics that Matter
Owners & Operators Rank Apartments.com #1 in Metrics that Matter ✓ Best brand awareness # 1 ✓ Highest-quality leads ✓ Highest lead-to-lease conversion rate ✓ Generating the most applications Source: Market Connections Brand Study, Q2 2024 Responses from 645 owners/operators of 18K communities, 1.5M+
Slide 38: Tremendous Opportunity Ahead in the Small to Medium Property Space
Tremendous Opportunity Ahead in the Small to Medium Property Space Annual Universe Clients Subscription Revenue Unit Range TAM ($M) (Properties) (Properties) Revenue Run Penetration Rate ($M) 1-49 22M 18K $72M 1% $6B $7B opportunity 50-99 72K 12K $121M 17% $1B 100+ 107K 45K $883M 42% $2B Grand Total
Slide 39: Ten Years of Success for Apartments.com
Ten Years of Success for Apartments.com Growth Since Acquisition 2014 2024 5th place in highly fragmented The leading online rental Industry Rank #1 online rental search industry marketplace Revenue $75 million $1.1 billion annual revenue run rate 13X 4 million average monthly unique ~43 million ave
Slide 40: A global leader in commercial real estate information, analytics, and data-driven news
A global leader in commercial real estate information, analytics, and data-driven news
Slide 41: CoStar by the Numbers
CoStar by the Numbers $1B 240K Revenue Subscribers 945K 7M Commercial Listings Properties 15M 6M Lease Sale Transactions Transactions Source: All data from CoStar internal database as of December 2024.
Slide 42: CoStar Product Investments Expand the Market Size
CoStar Product Investments Expand the Market Size, Resulting in Long-Term Double-Digit Growth $4B U.S. MARKET SIZE 12% Revenue Growth Rate $250 Tenants Ten Year CAGR Hospitality $200 Lenders Quarterly Revenue Owners / (in millions) Investors $150 Brokers / Appraisers $100 $50 $0 Total addressable ma
Slide 43: Unparalleled Research Methodology
Unparalleled Research Methodology 1,100+ 650+ Drones 70 Analysts and In-market Economists canvassers 1 1,600 Cessna capturing aerial insights Researchers Automated data extraction 1,200 Software Developers To facilitate the gathering of data 60 Journalists Across Data feeds and third-party data 1 Ba
Slide 44: The #1 global commercial real estate marketplace
The #1 global commercial real estate marketplace
Slide 45: LoopNet by the Numbers
LoopNet by the Numbers $282M 13% 5 Year Revenue Revenue CAGR 13M 380K Average Monthly CRE Brokers & Unique Owners Advertising Visitors Worldwide 11X 94% #1 Google Fortune 1000 keywords than Companies closest competitor Active on Site *All data as of December 31, 2024. Traffic data from Google Analyt
Slide 46: Commanding Share of Traffic vs. Marketplace Competitors
Commanding Share of Traffic vs. Marketplace Competitors LoopNet Network vs. Competitors LoopNet Network crexi commercialcafe commercialsearch propertyshark buildout reonomy 83x commercialmls Unique Visitors of the Avg. Instantoffices CRE Marketplace Competitor vts totalcommercial propertycapsule 6x
Slide 47: LoopNet Revenue Up 6x Since Acquisition
LoopNet Revenue Up 6x Since Acquisition $70 Early Stages of a Massive Global Opportunity Domestic International $60 $5 Billion Quarterly Revenue in Millions $50 North American TAM $40 $15 Billion Global TAM $30 $20 $10 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 48: LoopNet International Expansion Underway
LoopNet International Expansion Underway LoopNet Canada loopnet.ca LoopNet UK loopnet.co.uk LoopNet Spain loopnet.es LoopNet France loopnet.fr
Slide 49: Appendix
Ot CoStar Group™ Appendix
Slide 50: Non-GAAP Measures
Non-GAAP Measures For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this presentation and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refe
Slide 51: Reconciliation of Net Income to Adjusted EBITDA - Unaudited
Reconciliation of Net Income to Adjusted EBITDA - Unaudited The following table presents a reconciliation of CoStar Group’s Adjusted EBITDA, including forward-looking guidance range Adjusted EBITDA, to the most directly comparable GAAP financial measure, net income.
Slide 52: Use of Operating Metrics and Other Definitions
Use of Operating Metrics and Other Definitions CoStar Group reviews a number of operating metrics to evaluate its business, measure performance, identify trends, formulate business plans and make strategic decisions. This presentation includes Net New Bookings. Going forward, CoStar Group expects to