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CoStar Group Third Quarter 2022 Revenue Increased 12% and Net New Bookings Grew 62% Year-over-Year. Apartments.com Climbs to Double-Digit Revenue Growth

CSGP

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 September 30, 2022 was $557 million, an increase of 12% over revenue of $499 million for the third quarter of 2021.

Net income for the third quarter of 2022 was $72 million, or $0.18 per diluted share. Non-GAAP net income for the third quarter of 2022 (which excludes amortization of acquired intangible assets, stock-based compensation, and other items as described below) was $118 million or $0.30 per diluted share, an increase of 19% compared to the third quarter of 2021. EBITDA for the third quarter of 2022 was $129 million.

“We delivered outstanding results across all of our business lines in the third quarter, with Apartments.com leading the way” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “Net new bookings totaled $76 million in the third quarter of 2022, up 62% over the third quarter of 2021. Year-to-date our sales results have already exceeded the net new bookings for the full year 2021, and we still have one quarter left to go. Both revenue and profit in the third quarter of 2022 were at or above the high end of our guidance range and we are raising our forecast for the year.”

“Apartments.com sales continue to accelerate,” continued Florance. “Our Apartments.com sales team delivered record sales in September, bringing our net new bookings to $90 million on a year-to-date basis in 2022, an increase of 192% compared to the same period of 2021. Revenue growth for Apartments.com accelerated to 11% in the third quarter, and we now expect revenue growth of 16% in the fourth quarter of 2022. Revenue growth for CoStar was even stronger with a 17% increase in the third quarter 2022 over third quarter 2021 on a constant currency basis.”

Year 2021-2022 Quarterly Results - Unaudited

(in millions, except per share data)

2021

2022

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Revenues

$458

$480

$499

$507

$516

$536

$557

Net income

74

61

64

93

89

83

72

Net income per share - diluted(1)

0.19

0.16

0.16

0.24

0.23

0.21

0.18

Weighted average outstanding shares - diluted(1)

394

394

394

395

394

394

396

EBITDA

136

133

123

173

158

140

129

Adjusted EBITDA

160

150

144

193

178

159

153

Non-GAAP net income

108

103

99

138

123

112

118

Non-GAAP net income per share - diluted(1)

0.27

0.26

0.25

0.35

0.31

0.28

0.30

__________________________

(1) Certain 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.

2022 Outlook
The Company is raising its revenue guidance to a range of $2.175 billion to $2.180 billion for the full year of 2022, an increase of $5 million at the midpoint of the range compared to the prior outlook. The Company expects revenue for the fourth quarter of 2022 in the range of $565 million to $570 million, representing revenue growth of approximately 12% over the fourth quarter of 2021 at the midpoint of the range.

The Company is raising its adjusted EBITDA guidance to a range of $665 million to $670 million for the full year of 2022, an increase of $48 million at the midpoint of the range compared to the prior outlook. For the fourth quarter of 2022, the Company expects adjusted EBITDA in a range of $176 million to $181 million.

“Our financial results in the third quarter and improved 2022 revenue outlook demonstrate the strength of our products and resilience of our subscription-based business model,” said Scott Wheeler, Chief Financial Officer of CoStar Group. “We are making great progress with our Residential investment strategy while managing investment levels well below our initial estimates. This results in our improved profit outlook for 2022.”

The Company expects full year 2022 non-GAAP net income per diluted share in a range of $1.25 to $1.26 based on 397 million shares, an increase of $0.15 per diluted share compared to the prior outlook. For the fourth quarter of 2022, the Company expects non-GAAP net income per diluted share in a range of $0.35 to $0.36 based on 405 million shares. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the fourth quarter of 2022.

The preceding forward-looking statements reflect CoStar Group’s expectations as of October 25, 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, 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.

Operating Metrics
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 third quarter 2022 results and the Company’s outlook at 5:00 PM EST on Tuesday, October 25, 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

September 30,

Nine Months Ended

September 30,

2022

2021

2022

2021

Revenues

$

556,921

$

499,319

$

1,609,054

$

1,437,349

Cost of revenues

108,364

92,597

304,814

270,911

Gross profit

448,557

406,722

1,304,240

1,166,438

Operating expenses:

Selling and marketing (excluding customer base amortization)

185,395

180,055

510,736

483,354

Software development

56,912

53,143

162,520

148,500

General and administrative

91,270

64,671

246,576

186,747

Customer base amortization

29,651

19,121

60,621

55,885

363,228

316,990

980,453

874,486

Income from operations

85,329

89,732

323,787

291,952

Interest income (expense), net

10,656

(7,943

)

(461

)

(23,698

)

Other income, net

1,389

1,546

3,596

2,343

Income before income taxes

97,374

83,335

326,922

270,597

Income tax expense

25,084

19,031

81,841

70,933

Net income

$

72,290

$

64,304

$

245,081

$

199,664

Net income per share - basic

$

0.18

$

0.16

$

0.62

$

0.51

Net income per share - diluted

$

0.18

$

0.16

$

0.62

$

0.51

Weighted-average outstanding shares - basic

394,712

392,419

393,650

392,101

Weighted-average outstanding shares - diluted

396,209

394,295

394,973

394,036

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

September 30,

Nine Months Ended

September 30,

2022

2021

2022

2021

Net income

$

72,290

$

64,304

$

245,081

$

199,664

Income tax expense

25,084

19,031

81,841

70,933

Income before income taxes

97,374

83,335

326,922

270,597

Amortization of acquired intangible assets

36,596

26,330

82,601

77,450

Stock-based compensation expense

18,138

16,299

54,097

46,988

Acquisition and integration related costs

1,095

5,012

3,238

15,475

Restructuring and related costs

191

191

Settlements and impairments

4,100

4,100

Other expense

2,063

934

6,162

2,791

Non-GAAP income before income taxes

159,557

131,910

477,311

413,301

Assumed rate for income tax expense(1)

26

%

25

%

26

%

25

%

Assumed provision for income tax expense

(41,485

)

(32,978

)

(124,101

)

(103,325

)

Non-GAAP net income

$

118,072

$

98,932

$

353,210

$

309,976

Net income per share - diluted

$

0.18

$

0.16

$

0.62

$

0.51

Non-GAAP net income per share - diluted

$

0.30

$

0.25

$

0.89

$

0.79

Weighted average outstanding shares - basic

394,712

392,419

393,650

392,101

Weighted average outstanding shares - diluted

396,209

394,295

394,973

394,036

__________________________

(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

Three Months Ended

September 30,

Nine Months Ended

September 30,

2022

2021

2022

2021

Net income

$

72,290

$

64,304

$

245,081

$

199,664

Amortization of acquired intangible assets in cost of revenues

6,945

7,209

21,980

21,565

Amortization of acquired intangible assets in operating expenses

29,651

19,121

60,621

55,885

Depreciation and other amortization

7,224

6,610

21,199

22,138

Interest (income) expense, net

(10,656

)

7,943

461

23,698

Other income, net

(1,389

)

(1,546

)

(3,596

)

(2,343

)

Income tax expense

25,084

19,031

81,841

70,933

EBITDA

$

129,149

$

122,672

$

427,587

$

391,540

Stock-based compensation expense

18,138

16,299

54,097

46,988

Acquisition and integration related costs

1,095

5,012

3,238

15,475

Restructuring and related costs

191

191

Settlements and impairments

4,100

4,100

Adjusted EBITDA

$

152,673

$

143,983

$

489,213

$

454,003

CoStar Group, Inc.

Condensed Consolidated Balance Sheets - Unaudited

(in thousands)

September 30,
2022

December 31,
2021

ASSETS

Current assets:

Cash, cash equivalents and restricted cash

$

4,774,465

$

3,827,126

Accounts receivable

157,104

138,191

Less: Allowance for credit losses

(9,334

)

(13,374

)

Accounts receivable, net

147,770

124,817

Income tax receivable

9,278

Prepaid expenses and other current assets

75,074

36,182

Total current assets

5,006,587

3,988,125

Deferred income taxes, net

5,032

5,034

Property and equipment, net

306,319

271,431

Lease right-of-use assets

94,262

100,680

Goodwill

2,301,739

2,321,015

Intangible assets, net

343,232

435,662

Deferred commission costs, net

129,815

101,879

Deposits and other assets

16,872

21,762

Income tax receivable

2,005

11,283

Total assets

$

8,205,863

$

7,256,871

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

31,435

$

22,244

Accrued wages and commissions

83,041

81,794

Accrued expenses

77,275

81,676

Income taxes payable

39

31,236

Lease liabilities

34,063

26,268

Deferred revenue

100,053

95,471

Total current liabilities

325,906

338,689

Long-term debt, net

988,890

987,944

Deferred income taxes, net

80,611

98,656

Income taxes payable

14,603

12,496

Lease and other long-term liabilities

88,941

107,414

Total liabilities

$

1,498,951

$

1,545,199

Total stockholders' equity

6,706,912

5,711,672

Total liabilities and stockholders' equity

$

8,205,863

$

7,256,871

CoStar Group, Inc.

Condensed Consolidated Statements of Cash Flows - Unaudited

(in thousands)

Nine Months Ended

September 30,

2022

2021

Operating activities:

Net income

$

245,081

$

199,664

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

109,983

102,390

Amortization of deferred commissions costs

55,373

46,728

Amortization of Senior Notes discount and issuance costs

1,771

1,742

Non-cash lease expense

23,108

21,118

Stock-based compensation expense

54,097

46,988

Deferred income taxes, net

(21,676

)

16,255

Credit loss expense

13,468

7,797

Other operating activities, net

(1,774

)

10

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(36,177

)

(17,715

)

Prepaid expenses and other current assets

(17,235

)

(18,820

)

Deferred commissions

(83,875

)

(49,798

)

Accounts payable and other liabilities

2,131

(27,912

)

Lease liabilities

(27,615

)

(23,596

)

Income taxes payable

(29,051

)

(3,583

)

Deferred revenue

4,488

15,800

Other assets

1,492

2,150

Net cash provided by operating activities

293,589

319,218

Investing activities:

Proceeds from sale of property and equipment and other assets

5,034

245

Purchase of Richmond assets and other intangibles

(31,530

)

(123,623

)

Purchases of property and equipment and other assets

(43,659

)

(21,533

)

Cash paid for acquisitions, net of cash acquired

(6,331

)

(152,594

)

Net cash used in investing activities

(76,486

)

(297,505

)

Financing activities:

Repayments of long-term debt assumed in acquisition

(2,155

)

Repurchase of restricted stock to satisfy tax withholding obligations

(20,259

)

(29,306

)

Proceeds from equity offering, net of transaction costs

746,170

Proceeds from exercise of stock options and employee stock purchase plan

10,777

15,025

Other financing activities

(57

)

Net cash provided by (used in) financing activities

734,533

(14,338

)

Effect of foreign currency exchange rates on cash and cash equivalents

(4,297

)

(1,700

)

Net increase in cash, cash equivalents and restricted cash

947,339

5,675

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

$

4,774,465

$

3,761,587

CoStar Group, Inc.

Disaggregated Revenues - Unaudited

(in thousands)

Three Months Ended September 30,

2022

2021

North America

International

Total

North America

International

Total

CoStar

$

203,657

$

9,033

$

212,690

$

174,071

$

9,194

$

183,265

Information Services

32,524

8,489

41,013

29,177

6,749

35,926

Multifamily

189,536

189,536

171,125

171,125

LoopNet

57,126

1,775

58,901

52,103

424

52,527

Residential

19,351

19,351

24,747

24,747

Other Marketplaces

35,430

35,430

31,729

31,729

Total revenues

$

537,624

$

19,297

$

556,921

$

482,952

$

16,367

$

499,319

Nine Months Ended September 30,

2022

2021

North America

International

Total

North America

International

Total

CoStar

$

590,141

$

27,764

$

617,905

$

505,470

$

26,958

$

532,428

Information Services

93,306

23,424

116,730

84,959

20,820

105,779

Multifamily

547,372

547,372

508,629

508,629

LoopNet

164,417

5,228

169,645

151,770

1,082

152,852

Residential

57,565

57,565

53,939

53,939

Other Marketplaces

99,837

99,837

83,722

83,722

Total revenues

$

1,552,638

$

56,416

$

1,609,054

$

1,388,489

$

48,860

$

1,437,349

CoStar Group, Inc.

Results of Segments - Unaudited

(in thousands)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2022

2021

2022

2021

EBITDA

North America

$

127,965

$

119,823

$

422,454

$

385,857

International

1,184

2,849

5,133

5,683

Total EBITDA

$

129,149

$

122,672

$

427,587

$

391,540

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

Q2

Q3

Net income

$74.2

$61.1

$64.3

$92.9

$89.3

$83.5

$72.3

Income tax expense

19.1

32.8

19.0

40.5

32.1

24.7

25.1

Income before income taxes

93.3

93.9

83.3

133.4

121.4

108.1

97.4

Amortization of acquired intangible assets

25.8

25.3

26.3

26.2

23.2

22.8

36.6

Stock-based compensation expense

15.5

15.1

16.3

16.7

17.8

18.1

18.1

Acquisition and integration related costs

8.5

2.0

5.0

3.2

1.6

0.5

1.1

Restructuring and related costs

0.2

Settlements and impairments

4.1

Other expense

1.1

0.8

0.9

4.1

2.0

2.1

2.1

Non-GAAP income before income taxes(1)

144.2

137.1

131.8

183.6

166.1

151.6

159.6

Assumed rate for income tax expense (2)

25%

25%

25%

25%

26%

26%

26%

Assumed provision for income tax expense

(36.0)

(34.3)

(33.0)

(45.9)

(43.2)

(39.4)

(41.5)

Non-GAAP net income(1)

$108.2

$102.8

$98.8

$137.7

$122.9

$112.2

$118.1

Non-GAAP net income per share - diluted(3)

$0.27

$0.26

$0.25

$0.35

$0.31

$0.28

$0.30

Weighted average outstanding shares - basic(3)

391.6

392.3

392.4

392.5

392.9

393.3

394.7

Weighted average outstanding shares - diluted(3)

393.7

394.1

394.3

394.5

394.2

394.5

396.2

__________________________

(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) Certain 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

Q2

Q3

Net income

$74.2

$61.1

$64.3

$92.9

$89.3

$83.5

$72.3

Amortization of acquired intangible assets

25.8

25.3

26.3

26.2

23.2

22.8

36.6

Depreciation and other amortization

8.5

7.0

6.6

6.9

7.0

7.0

7.2

Interest (income) expense, net

7.9

7.9

7.9

7.9

7.7

3.4

(10.7)

Other (income) expense, net

0.1

(0.8)

(1.5)

(0.9)

(0.9)

(1.3)

(1.4)

Income tax expense

19.1

32.8

19.0

40.5

32.1

24.7

25.1

EBITDA(1)

$135.6

$133.3

$122.6

$173.4

$158.4

$140.0

$129.1

Stock-based compensation expense

15.5

15.1

16.3

16.7

17.8

18.1

18.1

Acquisition and integration related costs

8.5

2.0

5.0

3.2

1.6

0.5

1.1

Restructuring and related costs

0.2

Settlements and impairments

4.1

Adjusted EBITDA(1)

$159.6

$150.4

$143.9

$193.4

$177.9

$158.6

$152.7

__________________________

(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 December 31, 2022

December 31, 2022

Low

High

Low

High

Net income

$

113,000

$

117,000

$

359,000

$

363,000

Income tax expense

40,000

41,000

122,000

123,000

Income before income taxes

153,000

158,000

481,000

486,000

Amortization of acquired intangible assets

20,000

20,000

102,000

102,000

Stock-based compensation expense

19,000

19,000

73,000

73,000

Acquisition and integration related costs

3,000

3,000

Settlements and impairments

4,000

4,000

Other expense

6,000

6,000

Non-GAAP income before income taxes

192,000

197,000

669,000

674,000

Assumed rate for income tax expense(1)

26

%

26

%

26

%

26

%

Assumed provision for income tax expense

(49,900

)

(51,200

)

(173,900

)

(175,200

)

Non-GAAP net income

$

142,100

$

145,800

$

495,100

$

498,800

Net income per share - diluted

$

0.28

$

0.29

$

0.90

$

0.91

Non-GAAP net income per share - diluted

$

0.35

$

0.36

$

1.25

$

1.26

Weighted average outstanding shares - diluted

405,300

405,300

397,300

397,300

__________________________

(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 December 31, 2022

December 31, 2022

Low

High

Low

High

Net income

$

113,000

$

117,000

$

359,000

$

363,000

Amortization of acquired intangible assets

20,000

20,000

102,000

102,000

Depreciation and other amortization

9,000

9,000

30,000

30,000

Interest income, net

(25,000

)

(25,000

)

(24,000

)

(24,000

)

Other (income) expense, net

(4,000

)

(4,000

)

Income tax expense

40,000

41,000

122,000

123,000

Stock-based compensation expense

19,000

19,000

73,000

73,000

Acquisition and integration related costs

3,000

3,000

Settlements and impairments

4,000

4,000

Adjusted EBITDA

$

176,000

$

181,000

$

665,000

$

670,000

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, Apartments or LoopNet net new bookings; the risk that revenues for the fourth quarter and full year 2022 will not be as stated in this press release; the risk that net income for the fourth quarter and full year 2022 will not be as stated in this press release; the risk that EBITDA for the fourth quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the fourth quarter and full year 2022 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 fourth quarter and full year 2022 will not be as stated in this press release; the risk that we may not successfully integrate acquired businesses or assets and may not achieve anticipated benefits of an acquisition, including expected synergies; the risk that the tax rate estimates stated in this press release may change and the risk that we may experience 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 economic conditions on the 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 and Quarterly Report on Forms 10-Q for the quarters ended March 31, 2022 and June 30, 2022, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, 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.

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