Slide 1: Second Quarter 2024 Investor Presentation
Second Quarter 2024 Investor Presentation
Slide 2: Legal Disclaimer
Legal Disclaimer Certain information in this presentation includes “forward-looking statements” within the meaning of federal securities laws, including financial projections of CoStar Group, Inc. (“CoStar Group” or the “Company”), addressable markets, statements about management’s plans, growth str
Slide 3: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights
Slide 4: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights • Second quarter 2024 revenue of $678 million increased 12% year-over-year and our two businesses with billion dollar run rates delivered double-digit revenue growth. • Annualized net new bookings of $67 million, with commercial business bookings representing 79% and r
Slide 5: Year-over-Year Traffic Growth of 81% in Q2 2024
Year-over-Year Traffic Growth of 81% in Q2 2024 183 200 180 MILLION 160 Unique Visitors (in millions) 140 120 100 80 60 40 20 - 1Q13 4Q13 3Q14 2Q15 1Q16 4Q16 3Q17 2Q18 1Q19 4Q19 3Q20 2Q21 1Q22 4Q22 3Q23 2Q24 Source: Google Analytics Unique Visitors – All CoStar Group Sites. Growth rate based on 2Q24
Slide 6: Second Quarter and Year to Date 2024 Results
Second Quarter and Year to Date 2024 Results Second Quarter Year to Date $678 million $1,334 million Revenue 12% year-over-year growth 12% year-over-year growth $19 million $26 million Net income $0.05 per diluted share $0.06 per diluted share Adjusted EBITDA $41 million $53 million Net new $67 mill
Slide 7: 2024 Third Quarter and Full Year Outlook
2024 Third Quarter and Full Year Outlook Third Quarter Full Year $692 million to $697 million $2.735 billion to $2.745 billion Revenue 11% year-over-year growth 12% year-over-year growth $22 million to $26 million $107 million to $114 million Net income $0.05 to $0.06 per diluted share $0.26 to $0.2
Slide 8: Company Overview
Ot CoStar Group” sah 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 38 2 billion+ $5 billion+ ~6,300 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 74
Slide 11: 38 Years of Growth and Innovation
38 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 38 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 Sources: CoStar, Apartments, LoopNet and Ten-X – CoStar estimate Homes.com – extrapolation o
Slide 15: Strong Double-Digit Growth with Two Brands Over $1 Billion in Revenue Run Rate
Strong Double-Digit Growth with Two Brands Over $1 Billion in Revenue Run Rate 5 YEAR CAGR $2.7B 14% 20% TOTAL 5 YEAR REVENUE CAGR $2.5B 8% 133% 2023-2024 only $2.2B 13% $1.9B $1.7B $1.1B 17% $1.4B $1.0B 10% 2019 2020 2021 2022 2023 2024E Costar Multifamily LoopNet Residential Information Services O
Slide 16: Consecutive Quarters of Double-Digit Revenue Growth
53 Consecutive Quarters of Double-Digit Revenue Growth Regardless of Commercial Property Transaction Volumes 700 Quarterly Revenue Transaction Volumes High Inflation 2022-2024: +12% Growth 600 Pandemic 260 • 96% subscription revenue 2020-2021: +18% Growth 500 • 81% 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 2024E REVENUE Other Marketplaces Other 5% Information Revenue Residential Services 4% LoopNet 10% CoStar 37% CoStar Information Marketplaces 92% & Analytics 58% 42% Information & Analytics Multifamily Info
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% Other 15% Broker 21% Lender 4% Investor 7% Property Management Owner 19% 34% *Revenue by client segment and by client extrapolated from December 2023 CoStar billing data.
Slide 19: Successful Acquisition and Integration Track Record
Successful Acquisition and Integration Track Record $700 2024 REVENUE COMPOSITION Acquired $600 23% $500 Millions $400 Organic 77% $300 $200 $100 $0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Organic Revenue Acqui
Slide 20: High-Growth, High-Margin Subscription Business Model
High-Growth, High-Margin Subscription Business Model ü 23% Revenue CAGR since IPO 24 years ago Double-Digit Revenue Growth ü CoStar and Apartments.com reached $1 billion in annual run rate revenue ü 96% subscription revenue with 81% annual contracts Predictable Subscription ü 95% renewal rate for cl
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 99M 148M Homes.com Homes.com Network Average Monthly Average Monthly Unique Visitors Unique Visitors 2M+ $55M Net New Annualized Residential For Sale Bookings and Rental Listings to Date 10K+ Millions Member Agents of Leads * Sources: The Homes.com site reached 99 million av
Slide 24: Homes.com Network Traffic Reaches 148M Average Monthly Unique Visitors in Q2
Homes.com Network Traffic Reaches 148M Average Monthly Unique Visitors in Q2 150 130 Average Unique Visitors (in millions) 110 90 70 50 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Homes.com Network traffic according to Google Analytics. .
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 listing agent on the listing and connects you
Slide 26: Homes.com Displays the Listing Agent, Firm & Buyer Agent Directory
Homes.com Displays the Listing Agent, Firm & Buyer Agent Directory
Slide 27: Portals Adhering to Your Listing, Your Lead Are the Most Successful
The Real Estate Portals Adhering to the Your Listing, Your Lead Principal are the Most Successful Not Your Listing, Your Lead Your Listing, Your Lead $2.0 $2.0 $1.5 $1.5 $1.0 $1.0 $0.5 $0.5 $0.0 $0.0 Zillow Redfin CoStar Rightmove REA Group Scout24 Lifull ($0.5) ($0.5) Group ($1.0) ($1.0) ($1.5) ($1
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. 20,000+ 40,000+ Neighborhoods Parks 125,000+ 65,000+ Schools Condo Buildings Launched Matterport 3D Virtual Tours on H
Slide 29: 2024 Supercharged Marketing Campaign
“We’ve done your home work.” 2024 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. 80 Over a Reaching BILLION DOLLARS invested BILLION impressions 90% 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: Homes.com Unaided Brand Awareness up 7x in 9 Months to 27%
Homes.com Unaided Brand Awareness up 7x in 9 Months to 27% UP 7X 27% 4% Sept ‘23 Jun ‘24
Slide 33: Member Agent Listings Sell Homes Faster and For More Money
Member Agent Listings Sell Homes Faster and For More Money Than Non-Member Agents 300% more listing shares 87%more favorites 20% more likely to go under contract within first 10 days $11K 51% average higher sales price more listings won in a month on average Based on internal CoStar data of listings
Slide 34: Investing to Create the #1 Residential Portal in the UK
Investing to Create the #1 Residential Portal in the UK üAverage monthly unique visitors up 174% year-over-year üProperty listings reached 710,000, up 41% year-over-year üAgent advertisers now ~17,000 üLeads have grown 56% year-over-year
Slide 35: 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 36: Apartments.com by the Numbers
Apartments.com by the Numbers $1B 18% Year-over-Year Revenue Run Rate Revenue Growth 48% 1M+ Unaided Brand Rental Awareness Availabilities 1B 49M Average Monthly Annual Visits Unique Visitors *All data as of 6/30/24. Revenue Run Rate based on first half of 2024 annualized.. Traffic data for Apartmen
Slide 37: Our Biggest Customer Count Ever
Our Biggest Customer Count Ever! ~76,000 APARTMENT COMMUNITIES now advertise on Apartments.com
Slide 38: Apartments.com Beats Competition on the Metrics That Matter to Advertisers
Apartments.com Beats Competition on the Metrics That Matter to Advertisers 2X more time 2X higher 3X more per visit conversion leases Sources: Traffic from Comscore Media Matrix, October 2023 - March 2024; Lease data from Rent Dynamics, January - September 2023
Slide 39: Tremendous Opportunity Ahead in the Small to Medium Property Space
Tremendous Opportunity Ahead in the Small to Medium Property Space Annual Universe Clients Subscription Revenue Unit Range TAM ($M) (Properties) (Properties) Revenue Run Penetration Rate ($M) 1-49 23M 18K $64M 1% $6B $7B opportunity 50-99 69K 11K $116M 11% $1B 100+ 104K 44K $832M 40% $2B Grand Total
Slide 40: 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 billion annual revenue run rate 13X 4 million average monthly unique Traffic 49 millio
Slide 41: 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 42: CoStar by the Numbers
CoStar by the Numbers $1B 230K+ Revenue Run Rate Subscribers 930K 7M Commercial Listings Properties 15M 5M Lease Sale Transactions Transactions * Revenue Run Rate based on first half of 24 annualized. All other data from CoStar internal database as of June 2024.
Slide 43: 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 06 07 08 09 10 11 12
Slide 44: Unparalleled Research Methodology
Unparalleled Research Methodology 1,000+ 400 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 Bas
Slide 45: The #1 global commercial real estate marketplace
The #1 global commercial real estate marketplace
Slide 46: LoopNet by the Numbers
LoopNet by the Numbers $279M 14% 5 Year Revenue Revenue Run Rate CAGR 13M 370K Monthly Unique CRE Brokers & Visitors Worldwide Owners Advertising 12X 96% #1 Google Fortune 1000 keywords than Companies closest competitor Active on Site *All data as of June 2024. Run Rate based on 1H24 annualized. Tra
Slide 47: Commanding Share of Traffic vs. Marketplace Competitors
Commanding Share of Traffic vs. Marketplace Competitors LoopNet Network vs. Competitors LoopNet Network crexi commercialsearch propertyshark commercialcafe officespace vts 71x rcm1 Unique Visitors of the Avg. CRE Marketplace Competitor Instantoffices buildout commercialexchange 6x propertycapsule Un
Slide 48: LoopNet Revenue Up 5x Since Acquisition
LoopNet Revenue Up 5x Since Acquisition $70 Domestic International Early Stages of a Massive $60 Global Opportunity $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 49: 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 50: Appendix
Ot] CoStar Group” Appendix
Slide 51: Non-GAAP Measures
Non-GAAP Measures For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the CoStar Group Inc.’s (the “Company” of “CoStar Group”) financial condition
Slide 52: Reconciliation of Net Income to Non-GAAP Net Income - Unaudited
Reconciliation of Net Income to Non-GAAP Net Income - Unaudited The following table presents a reconciliation of CoStar Group’s Non-GAAP Net Income, including forward-looking guidance Non-GAAP Net Income, to the most directly comparable GAAP financial measure, net income. For the Year Ended December
Slide 53: 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. For the Year Ending December 31,
Slide 54: 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