Analyst Note| Kevin Brown |
Second-quarter results for wide-moat CoStar Group were relatively in line with our expectations, leading us to reaffirm our $84 fair value estimate. Revenue grew 21% year over year to $480 million, slightly ahead of our estimate of 18% growth, and improved 4.8% sequentially over the $458 million reported in the first quarter. Adjusted EBITDA grew at a slightly lower pace, up 17% year over year to $150 million in the second quarter, in line with our estimate of $153 million adjusted EBITDA for the quarter. As a result, normalized net income grew a similar 16% year over year to $103 million, or $0.26 per share, in the second quarter, in line with our expectations.