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CoStar Group Inc CSGP

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Morningstar’s Analysis

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CoStar's Strong Second-Quarter Growth In Line With Our Expectations

Kevin Brown Equity Analyst

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.

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Company Profile

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 five flagship brands: CoStar Suite, LoopNet,, BizBuySell, and LandsofAmerica with approximately three quarters 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
Sector Real Estate
Industry Real Estate Services
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 4,752