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CoStar Group Inc CSGP Stock Quote

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Morningstar‘s Stock Analysis CSGP

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CoStar Delivered a Good Quarter With the Multifamily Business Returning to Double-Digit Growth

Suryansh Sharma Equity Analyst

Analyst Note

| Suryansh Sharma |

Wide-moat-rated CoStar Group reported a decent set of numbers in the third quarter as the firm reported non-GAAP earnings per share of $0.30, 20% higher than the $0.25 in non-GAAP EPS during the third quarter of 2021. The company's shares gained 9% in response to the quarterly results. Overall revenue increased 11.6% on a year-over-year basis, and the adjusted EBITDA margin was recorded at 27.4% for the quarter. Annualized net new sales bookings, an indicator of future revenue growth, came in at $76 million for the third quarter, a 62% increase over the same quarter in 2021. Management has also increased its revenue and adjusted EBITDA guidance on the back of strong results with updated full-year revenue guidance of $2.175 billion to $2.180 billion and adjusted EBITDA guidance of $665 million to $670 million, representing an increase of $5 million and $48 million, respectively, at the midpoint of the range compared with previous guidance. The substantial increase in adjusted EBITDA guidance is mainly because of the lower investments in the firm’s residential business than previously anticipated. We are maintaining our $73 fair value estimate for Costar Group after incorporating the third-quarter results.

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Key Statistics CSGP

Company Profile CSGP

Business Description

CoStar Group is a leading provider of commercial real estate data and marketplace listing platforms. Its data offering contains in-depth analytical information on over 5 million commercial real estate properties related to various subsectors including office, retail, multifamily, healthcare, industrial, self-storage, and data centers. It operates many flagship brands such as CoStar Suite, LoopNet,, BizBuySell, LandsofAmerica, and so on with more than 75% of its revenue classified as subscription-based. The company has also recently expanded its presence in Canada, the United Kingdom, Spain, and France.

1331 L Street
Northwest, WA, 20005
T +1 202 346-6500
Industry Real Estate Services
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2020
Employees 4,742

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