CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the property markets, announced today that revenue for the quarter ended March 31, 2022, was $516 million, an increase of 13% over revenue of $458 million for the first quarter of 2021.
Net income for the first quarter of 2022 was $89 million, an increase of 20% compared to net income of $74 million for the first quarter of 2021. EBITDA for the first quarter of 2022 was $158 million, an increase of 17% compared to EBITDA of $136 million for the first quarter of 2021.
“We are off to an outstanding start to 2022 with our best sales quarter ever,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “Net new bookings totaled $68 million in the first quarter of 2022, up 31% over the first quarter of 2021. Our flagship product, CoStar, delivered three record sales quarters in a row and is growing 15% year-over-year. Both revenue and profit in the first quarter of 2022 were ahead of forecast and we are raising our guidance for the year.”
“Apartments.com sales are rebounding as the first quarter sales increased 36% sequentially compared to the fourth quarter of 2021. This is the result of improving market conditions and high sales productivity,” continued Florance. “We are making strong progress on our residential initiatives, with unique visitors to our residential sites growing approximately 125% from 6 million in the first quarter of 2021 to 14 million in the most recent quarter. Our fast growing residential operations increased revenue in the first quarter by 63% year-over-year to $18 million. Finally, we are very excited about joining forces with our French companies, BureauxLocaux and Business Immo, and their teams, which we believe will be key catalysts in building a successful Pan-European business."
|
Year 2021-2022 Quarterly Results - Unaudited
|
|
(in millions, except per share data)
|
|
|
2021
|
|
2022
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
|
Q1
|
|
|
|
|
|
|
|
|
|
Revenues
|
$458
|
$480
|
$499
|
$507
|
|
$516
|
|
Net income
|
74
|
61
|
64
|
93
|
|
89
|
|
Net income per share - diluted(1)
|
0.19
|
0.16
|
0.16
|
0.24
|
|
0.23
|
|
Weighted average outstanding shares - diluted(1)
|
394
|
394
|
394
|
395
|
|
394
|
|
|
|
|
|
|
|
|
|
EBITDA
|
136
|
133
|
123
|
173
|
|
158
|
|
Adjusted EBITDA
|
160
|
150
|
144
|
193
|
|
178
|
|
Non-GAAP net income
|
108
|
103
|
99
|
138
|
|
123
|
|
Non-GAAP net income per share - diluted(1)
|
0.27
|
0.26
|
0.25
|
0.35
|
|
0.31
|
|
(1) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.
|
As of March 31, 2022, the Company had approximately $3.9 billion in cash, cash equivalents and restricted cash and outstanding debt of approximately $1.0 billion.
2022 Outlook
The Company is raising its revenue guidance to a range of $2.15 billion to $2.17 billion for the full year of 2022, an increase of $5 million at the midpoint of the range compared to the prior outlook. The expects revenue for the second quarter of 2022 in the range of $529 million to $534 million, representing revenue growth of approximately 11% over the second quarter of 2021 at the midpoint of the range.
The Company is raising its adjusted EBITDA guidance to a range of $585 million to $615 million for the full year of 2022, an increase of $15 million at the midpoint of the range compared to the prior outlook. For the second quarter of 2022, the Company expects adjusted EBITDA in a range of $123 million to $128 million.
The Company expects full year 2022 non-GAAP net income per diluted share in a range of $0.98 to $1.03 based on 395 million shares, an increase of $0.02 per diluted share compared to the prior outlook. For the second quarter of 2022, the Company expects non-GAAP net income per diluted share in a range of $0.20 to $0.21 based on 395 million shares. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the second quarter of 2022.
The preceding forward-looking statements reflect CoStar Group’s expectations as of April 26, 2022, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations, and trends. Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, including uncertainties as a result of the COVID-19 pandemic and responses to it by, and the impact on, global economies and the real estate industry, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.
Reconciliation of EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share to their GAAP basis results are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income, can be found within the tables included in this release.
Non-GAAP Financial 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 Company’s financial condition and results of operations, please refer to the Company’s latest periodic report.
EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before interest (expense) income and other (expense) income, loss on debt extinguishment, income taxes, depreciation and amortization.
Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, and settlements and impairments incurred outside the Company’s normal course of business. Adjusted EBITDA margin represents adjusted EBITDA divided by revenues for the period.
Non-GAAP net income is a non-GAAP financial measure determined by adjusting GAAP net income attributable to CoStar Group for stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, settlement and impairment costs incurred outside the Company's normal course of business and loss on debt extinguishment, as well as amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. In 2022, the Company is assuming a 26% tax rate in order to approximate its statutory corporate tax rate excluding the impact of discrete items.
Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share. For periods with GAAP net losses and non-GAAP net income, the weighted average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.
Net new bookings is calculated based on the annualized amount of change in the company’s sales bookings resulting from new subscription-based contracts and changes to existing subscription-based contracts for the period reported. Information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of the company’s revenues over time.
Earnings Conference Call
Management will conduct a conference call to discuss the first quarter 2022 results and the Company’s outlook at 5:00 PM EST on Tuesday, April 26, 2022. A live audio webcast of the conference will be available in listen-only mode through the Investors section of the CoStar Group website: https://investors.costargroup.com. A replay of the webcast audio will also be available in the Investors section of our website for a period of time following the call.
|
CoStar Group, Inc.
|
|
Condensed Consolidated Statements of Operations - Unaudited
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
2021
|
|
Revenues
|
|
$
|
515,825
|
|
$
|
457,697
|
|
Cost of revenues
|
|
|
95,479
|
|
|
88,748
|
|
Gross profit
|
|
|
420,346
|
|
|
368,949
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Selling and marketing (excluding customer base amortization)
|
|
|
143,997
|
|
|
138,687
|
|
Software development
|
|
|
54,021
|
|
|
46,784
|
|
General and administrative
|
|
|
77,961
|
|
|
63,850
|
|
Customer base amortization
|
|
|
16,092
|
|
|
18,419
|
|
|
|
|
292,071
|
|
|
267,740
|
|
|
|
|
|
|
|
Income from operations
|
|
|
128,275
|
|
|
101,209
|
|
Interest expense, net
|
|
|
(7,718)
|
|
|
(7,878)
|
|
Other income (expense)
|
|
|
864
|
|
|
(50)
|
|
Income before income taxes
|
|
|
121,421
|
|
|
93,281
|
|
Income tax expense
|
|
|
32,103
|
|
|
19,069
|
|
Net income
|
|
$
|
89,318
|
|
$
|
74,212
|
|
|
|
|
|
|
|
Net income per share - basic(1)
|
|
$
|
0.23
|
|
$
|
0.19
|
|
Net income per share - diluted(1)
|
|
$
|
0.23
|
|
$
|
0.19
|
|
|
|
|
|
|
|
Weighted-average outstanding shares - basic(1)
|
|
|
392,895
|
|
|
391,578
|
|
Weighted-average outstanding shares - diluted(1)
|
|
|
394,234
|
|
|
393,715
|
|
(1) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.
|
|
CoStar Group, Inc.
|
|
Reconciliation of Non-GAAP Financial Measures - Unaudited
|
|
(in thousands, except per share data)
|
|
|
|
Reconciliation of Net Income to Non-GAAP Net Income
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
2021
|
|
Net income
|
|
$
|
89,318
|
|
$
|
74,212
|
|
Income tax expense
|
|
|
32,103
|
|
|
19,069
|
|
Income before income taxes
|
|
|
121,421
|
|
|
93,281
|
|
Amortization of acquired intangible assets
|
|
|
23,190
|
|
|
25,827
|
|
Stock-based compensation expense
|
|
|
17,847
|
|
|
15,545
|
|
Acquisition and integration related costs
|
|
|
1,639
|
|
|
8,462
|
|
Other expense
|
|
|
2,036
|
|
|
1,071
|
|
Non-GAAP income before income taxes
|
|
|
166,133
|
|
|
144,186
|
|
Assumed rate for income tax expense(1)
|
|
|
26 %
|
|
|
25 %
|
|
Assumed provision for income tax expense
|
|
|
(43,195)
|
|
|
(36,047)
|
|
Non-GAAP net income
|
|
$
|
122,938
|
|
$
|
108,139
|
|
|
|
|
|
|
|
Net income per share - diluted(2)
|
|
$
|
0.23
|
|
$
|
0.19
|
|
Non-GAAP net income per share - diluted(2)
|
|
$
|
0.31
|
|
$
|
0.27
|
|
|
|
|
|
|
|
Weighted average outstanding shares - basic(2)
|
|
|
392,895
|
|
|
391,578
|
|
Weighted average outstanding shares - diluted(2)
|
|
|
394,234
|
|
|
393,715
|
|
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
(2) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.
|
|
|
|
|
|
|
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
2021
|
|
Net income
|
|
$
|
89,318
|
|
$
|
74,212
|
|
Amortization of acquired intangible assets in cost of revenues
|
|
|
7,098
|
|
|
7,408
|
|
Amortization of acquired intangible assets in operating expenses
|
|
|
16,092
|
|
|
18,419
|
|
Depreciation and other amortization
|
|
|
6,965
|
|
|
8,500
|
|
Interest expense
|
|
|
7,718
|
|
|
7,878
|
|
Other (income) expense
|
|
|
(864)
|
|
|
50
|
|
Income tax expense
|
|
|
32,103
|
|
|
19,069
|
|
EBITDA
|
|
$
|
158,430
|
|
$
|
135,536
|
|
Stock-based compensation expense
|
|
|
17,847
|
|
|
15,545
|
|
Acquisition and integration related costs
|
|
|
1,639
|
|
|
8,462
|
|
Restructuring and related costs
|
|
|
—
|
|
|
—
|
|
Adjusted EBITDA
|
|
$
|
177,916
|
|
$
|
159,543
|
|
CoStar Group, Inc.
|
|
Condensed Consolidated Balance Sheets - Unaudited
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash, cash equivalents and restricted cash
|
|
$
|
3,929,097
|
|
$
|
3,827,126
|
|
Accounts receivable
|
|
|
148,744
|
|
|
138,191
|
|
Less: Allowance for credit losses
|
|
|
(13,766)
|
|
|
(13,374)
|
|
Accounts receivable, net
|
|
|
134,978
|
|
|
124,817
|
|
Prepaid expenses and other current assets
|
|
|
36,183
|
|
|
36,182
|
|
Total current assets
|
|
|
4,100,258
|
|
|
3,988,125
|
|
|
|
|
|
|
|
Deferred income taxes, net
|
|
|
5,035
|
|
|
5,034
|
|
Property and equipment, net
|
|
|
283,718
|
|
|
271,431
|
|
Lease right-of-use assets
|
|
|
95,555
|
|
|
100,680
|
|
Goodwill
|
|
|
2,319,785
|
|
|
2,321,015
|
|
Intangible assets, net
|
|
|
409,326
|
|
|
435,662
|
|
Deferred commission costs, net
|
|
|
110,083
|
|
|
101,879
|
|
Deposits and other assets
|
|
|
22,399
|
|
|
21,762
|
|
Income tax receivable
|
|
|
11,283
|
|
|
11,283
|
|
Total assets
|
|
$
|
7,357,442
|
|
$
|
7,256,871
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
19,191
|
|
$
|
22,244
|
|
Accrued wages and commissions
|
|
|
59,337
|
|
|
81,794
|
|
Accrued expenses
|
|
|
78,923
|
|
|
81,676
|
|
Income taxes payable
|
|
|
72,375
|
|
|
31,236
|
|
Lease liabilities
|
|
|
32,620
|
|
|
26,268
|
|
Deferred revenue
|
|
|
107,749
|
|
|
95,471
|
|
Total current liabilities
|
|
|
370,195
|
|
|
338,689
|
|
|
|
|
|
|
|
Long-term debt, net
|
|
|
988,257
|
|
|
987,944
|
|
Deferred income taxes, net
|
|
|
91,756
|
|
|
98,656
|
|
Income taxes payable
|
|
|
12,508
|
|
|
12,496
|
|
Lease and other long-term liabilities
|
|
|
97,428
|
|
|
107,414
|
|
Total liabilities
|
|
$
|
1,560,144
|
|
$
|
1,545,199
|
|
|
|
|
|
|
|
Total stockholders’ equity
|
|
|
5,797,298
|
|
|
5,711,672
|
|
Total liabilities and stockholders’ equity
|
|
$
|
7,357,442
|
|
$
|
7,256,871
|
|
CoStar Group, Inc.
|
|
Condensed Consolidated Statements of Cash Flows - Unaudited
|
|
(in thousands)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
|
Operating activities:
|
|
|
|
|
Net income
|
$
|
89,318
|
|
$
|
74,212
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
32,190
|
|
|
35,410
|
|
Amortization of deferred commissions costs
|
|
17,583
|
|
|
15,317
|
|
Amortization of Senior Notes discount and issuance costs
|
|
588
|
|
|
578
|
|
Non-cash lease expense
|
|
7,537
|
|
|
6,483
|
|
Stock-based compensation expense
|
|
17,847
|
|
|
15,545
|
|
Deferred income taxes, net
|
|
(10,211)
|
|
|
5,464
|
|
Credit loss expense
|
|
3,321
|
|
|
1,820
|
|
Other operating activities, net
|
|
(30)
|
|
|
(136)
|
|
|
|
|
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
Accounts receivable
|
|
(13,724)
|
|
|
(7,609)
|
|
Prepaid expenses and other current assets
|
|
(385)
|
|
|
(2,823)
|
|
Deferred commissions
|
|
(25,829)
|
|
|
(15,078)
|
|
Accounts payable and other liabilities
|
|
(32,581)
|
|
|
(63,051)
|
|
Lease liabilities
|
|
(7,822)
|
|
|
(7,788)
|
|
Income taxes payable
|
|
41,154
|
|
|
12,556
|
|
Deferred revenue
|
|
12,417
|
|
|
14,680
|
|
Other assets
|
|
(666)
|
|
|
2,273
|
|
Net cash provided by operating activities
|
|
130,707
|
|
|
87,853
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Proceeds from sale of property and equipment and other assets
|
|
15
|
|
|
—
|
|
Purchase of Richmond assets and other intangibles
|
|
—
|
|
|
(123,259)
|
|
Purchases of property and equipment and other assets
|
|
(12,416)
|
|
|
(10,619)
|
|
Cash paid for acquisitions, net of cash acquired
|
|
—
|
|
|
(442)
|
|
Net cash used in investing activities
|
|
(12,401)
|
|
|
(134,320)
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Repurchase of restricted stock to satisfy tax withholding obligations
|
|
(19,459)
|
|
|
(27,667)
|
|
Proceeds from exercise of stock options and employee stock purchase plan
|
|
3,705
|
|
|
9,124
|
|
Net cash used in financing activities
|
|
(15,754)
|
|
|
(18,543)
|
|
|
|
|
|
|
Effect of foreign currency exchange rates on cash and cash equivalents
|
|
(581)
|
|
|
(606)
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
101,971
|
|
|
(65,616)
|
|
Cash, cash equivalents and restricted cash at the beginning of period
|
|
3,827,126
|
|
|
3,755,912
|
|
Cash, cash equivalents and restricted cash at the end of period
|
$
|
3,929,097
|
|
$
|
3,690,296
|
|
CoStar Group, Inc.
|
|
Disaggregated Revenues - Unaudited
|
|
(in thousands)
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2022
|
|
2021
|
|
|
North America
|
|
International
|
|
Total
|
|
North America
|
|
International
|
|
Total
|
|
CoStar
|
$
|
189,104
|
|
$
|
9,545
|
|
$
|
198,649
|
|
$
|
163,554
|
|
$
|
8,630
|
|
$
|
172,184
|
|
Information Services
|
|
30,271
|
|
|
6,944
|
|
|
37,215
|
|
|
27,686
|
|
|
7,010
|
|
|
34,696
|
|
Multifamily
|
|
175,477
|
|
|
—
|
|
|
175,477
|
|
|
166,147
|
|
|
—
|
|
|
166,147
|
|
LoopNet(1)
|
|
52,688
|
|
|
1,759
|
|
|
54,447
|
|
|
48,936
|
|
|
294
|
|
|
49,230
|
|
Residential(1)
|
|
18,060
|
|
|
—
|
|
|
18,060
|
|
|
11,105
|
|
|
—
|
|
|
11,105
|
|
Other Marketplaces(1)
|
|
31,977
|
|
|
—
|
|
|
31,977
|
|
|
24,335
|
|
|
—
|
|
|
24,335
|
|
Total revenues
|
$
|
497,577
|
|
$
|
18,248
|
|
$
|
515,825
|
|
$
|
441,763
|
|
$
|
15,934
|
|
$
|
457,697
|
|
(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation.
|
|
CoStar Group, Inc.
|
|
Results of Segments - Unaudited
|
|
(in thousands)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
|
EBITDA
|
|
|
|
|
North America
|
$
|
155,962
|
|
$
|
135,858
|
|
International
|
|
2,468
|
|
|
(322)
|
|
Total EBITDA
|
$
|
158,430
|
|
$
|
135,536
|
|
CoStar Group, Inc.
|
|
Reconciliation of Non-GAAP Financial Measures with Quarterly Results - Unaudited
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Non-GAAP Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2022
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
|
Q1
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$74.2
|
$61.1
|
$64.3
|
$92.9
|
|
$89.3
|
|
Income tax expense
|
|
19.1
|
32.8
|
19.0
|
40.5
|
|
32.1
|
|
Income before income taxes
|
|
93.3
|
93.9
|
83.3
|
133.4
|
|
121.4
|
|
Amortization of acquired intangible assets
|
|
25.8
|
25.3
|
26.3
|
26.2
|
|
23.2
|
|
Stock-based compensation expense
|
|
15.5
|
15.1
|
16.3
|
16.7
|
|
17.8
|
|
Acquisition and integration related costs
|
|
8.5
|
2.0
|
5.0
|
3.2
|
|
1.6
|
|
Restructuring and related costs
|
|
—
|
—
|
—
|
—
|
|
—
|
|
Other expense
|
|
1.1
|
0.8
|
0.9
|
4.1
|
|
2.0
|
|
Non-GAAP income before income taxes(1)
|
|
144.2
|
137.1
|
131.8
|
183.6
|
|
166.1
|
|
Assumed rate for income tax expense (2)
|
|
25%
|
25%
|
25%
|
25%
|
|
26%
|
|
Assumed provision for income tax expense
|
|
(36.0)
|
(34.3)
|
(33.0)
|
(45.9)
|
|
(43.2)
|
|
Non-GAAP net income(1)
|
|
$108.2
|
$102.8
|
$98.8
|
$137.7
|
|
$122.9
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share - diluted(3)
|
|
$0.27
|
$0.26
|
$0.25
|
$0.35
|
|
$0.31
|
|
|
|
|
|
|
|
|
|
|
Weighted average outstanding shares - basic(3)
|
|
391.6
|
392.3
|
392.4
|
392.5
|
|
392.9
|
|
Weighted average outstanding shares - diluted(3)
|
|
393.7
|
394.1
|
394.3
|
394.5
|
|
394.2
|
|
(1) Totals may not foot due to rounding.
(2) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
(3) Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2022
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
|
Q1
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$74.2
|
$61.1
|
$64.3
|
$92.9
|
|
$89.3
|
|
Amortization of acquired intangible assets
|
|
25.8
|
25.3
|
26.3
|
26.2
|
|
23.2
|
|
Depreciation and other amortization
|
|
8.5
|
7.0
|
6.6
|
6.9
|
|
7.0
|
|
Interest (income) expense
|
|
7.9
|
7.9
|
7.9
|
7.9
|
|
7.7
|
|
Other (income) expense
|
|
0.1
|
(0.8)
|
(1.5)
|
(0.9)
|
|
(0.9)
|
|
Income tax expense
|
|
19.1
|
32.8
|
19.0
|
40.5
|
|
32.1
|
|
EBITDA(1)
|
|
$135.6
|
$133.3
|
$122.6
|
$173.4
|
|
$158.4
|
|
Stock-based compensation expense
|
|
15.5
|
15.1
|
16.3
|
16.7
|
|
17.8
|
|
Acquisition and integration related costs
|
|
8.5
|
2.0
|
5.0
|
3.2
|
|
1.6
|
|
Restructuring and related costs
|
|
—
|
—
|
—
|
—
|
|
—
|
|
Adjusted EBITDA(1)
|
|
$159.6
|
$150.4
|
$143.9
|
$193.4
|
|
$177.9
|
|
(1) Totals may not foot due to rounding.
|
|
CoStar Group, Inc.
|
|
Reconciliation of Forward-Looking Guidance – Unaudited
|
|
(in thousands, except per share data)
|
|
|
|
Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income
|
|
|
|
|
|
|
|
Guidance Range
|
|
Guidance Range
|
|
|
For the Three Months
|
|
For the Year Ending
|
|
|
Ending June 30, 2022
|
|
December 31, 2022
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
48,000
|
|
$
|
52,000
|
|
$
|
259,000
|
|
$
|
281,000
|
|
Income tax expense
|
|
17,000
|
|
|
18,000
|
|
|
92,000
|
|
|
100,000
|
|
Income before income taxes
|
|
65,000
|
|
|
70,000
|
|
|
351,000
|
|
|
381,000
|
|
Amortization of acquired intangible assets
|
|
22,000
|
|
|
22,000
|
|
|
87,000
|
|
|
87,000
|
|
Stock-based compensation expense
|
|
19,000
|
|
|
19,000
|
|
|
79,000
|
|
|
79,000
|
|
Acquisition and integration related costs
|
|
—
|
|
|
—
|
|
|
2,000
|
|
|
2,000
|
|
Other expense
|
|
—
|
|
|
—
|
|
|
2,000
|
|
|
2,000
|
|
Non-GAAP income before income taxes
|
|
106,000
|
|
|
111,000
|
|
|
521,000
|
|
|
551,000
|
|
Assumed rate for income tax expense(1)
|
|
26 %
|
|
|
26 %
|
|
|
26 %
|
|
|
26 %
|
|
Assumed provision for income tax expense
|
|
(27,600)
|
|
|
(28,900)
|
|
|
(135,500)
|
|
|
(143,300)
|
|
Non-GAAP net income
|
$
|
78,400
|
|
$
|
82,100
|
|
$
|
385,500
|
|
$
|
407,700
|
|
|
|
|
|
|
|
|
|
|
Net income per share - diluted
|
$
|
0.12
|
|
$
|
0.13
|
|
$
|
0.66
|
|
$
|
0.71
|
|
Non-GAAP net income per share - diluted
|
$
|
0.20
|
|
$
|
0.21
|
|
$
|
0.98
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
|
Weighted average outstanding shares - diluted
|
|
394,700
|
|
|
394,700
|
|
|
394,700
|
|
|
394,700
|
|
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
Guidance Range
|
|
Guidance Range
|
|
|
For the Three Months
|
|
For the Year Ending
|
|
|
Ending June 30, 2022
|
|
December 31, 2022
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Net income
|
$
|
48,000
|
|
$
|
52,000
|
|
$
|
259,000
|
|
$
|
281,000
|
|
Amortization of acquired intangible assets
|
|
22,000
|
|
|
22,000
|
|
|
87,000
|
|
|
87,000
|
|
Depreciation and other amortization
|
|
9,000
|
|
|
9,000
|
|
|
36,000
|
|
|
36,000
|
|
Interest expense
|
|
8,000
|
|
|
8,000
|
|
|
32,000
|
|
|
32,000
|
|
Other (income)
|
|
—
|
|
|
—
|
|
|
(2,000)
|
|
|
(2,000)
|
|
Income tax expense
|
|
17,000
|
|
|
18,000
|
|
|
92,000
|
|
|
100,000
|
|
Stock-based compensation expense
|
|
19,000
|
|
|
19,000
|
|
|
79,000
|
|
|
79,000
|
|
Acquisition and integration related costs
|
|
—
|
|
|
—
|
|
|
2,000
|
|
|
2,000
|
|
Adjusted EBITDA
|
$
|
123,000
|
|
$
|
128,000
|
|
$
|
585,000
|
|
$
|
615,000
|
About CoStar Group, Inc.
CoStar Group, Inc. (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information and analytics. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com offers real estate professionals advertising and marketing services for residential properties. Realla is the UK’s most comprehensive commercial property digital marketplace. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada and Asia. From time to time we plan to utilize our corporate website, www.costargroup.com, as a channel of distribution for material company information.
This news release and the Company’s earnings conference call contain “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, objectives, expectations, beliefs and intentions and other statements including words such as “hope,” “anticipate,” “may,” “believe,” “expect,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar Group and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. The following factors, among others, could cause or contribute to such differences: the risk that the trends stated or implied by this release or in the earnings conference call cannot or will not be sustained at the current pace or may increase or decrease, including trends and expectations related to revenue, revenue growth, net income, non-GAAP net income, EBITDA, adjusted EBITDA, adjusted EBITDA margin, sales, net new bookings, site traffic and visitors, leads, and renewal rates; the risk that the Company is unable to sustain current Company-wide, CoStar or Apartments net new bookings and that the slowdown in revenue growth and sales bookings that Apartments.com experienced earlier in 2021 is not yet fully resolved; the risk that the Company is unable to realize the full potential of the residential property opportunity as stated in this press release; the risk that the level of investment in residential products, content, sales and marketing is not as expected and set forth in this press release or changes; the risk that revenues for the first quarter and full year 2022 will not be as stated in this press release; the risk that revenues from Residential products for the full year 2022 will not be as stated in this press release; the risk that net income for the first quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the first quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the full year 2022, excluding the Residential product revenue and investments, will not be as stated in this press release; the risk that profit margins for commercial property information and marketplace businesses in 2022, excluding Residential growth investments, will not be as stated in this press release; the risk that non-GAAP net income and non-GAAP net income per diluted share for the first quarter and full year 2022 will not be as stated in this press release; the risk that the tax rate estimates stated in this press release may change; and potential declines in our revenues, revenue growth rates and profitability due to the impact of the COVID-19 pandemic on the commercial real estate industry and our core customer base. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar Group’s filings from time to time with the Securities and Exchange Commission, including in CoStar Group’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC, including in the “Risk Factors” section of that filing, as well as CoStar Group’s other filings with the SEC (including Current Reports on Form 8-K) available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar Group on the date hereof, and CoStar Group assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220426006188/en/