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CoStar Group (CSGP) Q3 Earnings Beat, Revenues Increase Y/Y
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CoStar (CSGP - Free Report) reported third-quarter 2020 adjusted earnings of $2.26 per share that beat the Zacks Consensus Estimate by 8.7%. However, the figure declined 13.4% year over year.
Revenues of $425.6 million outpaced the Zacks Consensus Estimate by 2% and improved 20.6% year over year.
North America revenues were $410.9 million, up 19.5% year over year. Moreover, international revenues were $14.7 million, up 63.1% year over year.
Markedly, CoStar had 69 million monthly unique visitors on its platforms in the quarter under review, up 33% year over year.
Quarter Details
Information and analytics revenues were $199.2 million, up 13.5% year over year.
CoStar Suite revenues increased 6.4% year over year to $166 million. Information services revenues surged 70.4% from the year-ago quarter to $33.2 million.
CoStar Group, Inc. Price, Consensus and EPS Surprise
Online Marketplaces revenues increased 27.7% year over year to $226.5 million. Apartments.com grew 23% and LoopNet grew 19% year over year in the third quarter.
Moreover, per ComScore, Apartments.com attracted more than 25 million average monthly unique visitors, up 20% year over year. Further, Apartments.com had 2.3 times as many unique visitors as RentPath, nine times as many as Zumper, 12 times as many as Apartment List and 22% more than the Zillow rental network.
Multi-family revenues increased 23.4% year over year to $155.2 million. Commercial property and land revenues were $71.3 million, up 38.1%.
Operating Details
Gross margin expanded 190 basis points (bps) on a year-over-year basis to 81.7%.
Adjusted EBITDA margin of 31.4% contracted 530 bps on a year-over-year basis.
Selling and marketing expenses as a percentage of revenues increased 570 bps from the year-ago quarter to 34.5%.
General and administrative expenses as a percentage of revenues increased 240 bps on a year-over-year basis to 15.3%.
Non-GAAP operating margin contracted 870 bps on a year-over-year basis to18%.
Balance Sheet
As of Sep 30, 2020, CoStar’s cash and cash equivalents and restricted cash were $3.87 billion compared with $3.54 billion as of Jun 30.
CoStar had long-term debt of $986.4 million as of Sep 30 compared with $745 million as of Jun 30.
Guidance
For the fourth quarter of 2020, revenues are expected between $429 million and $435 million, suggesting growth of 15% year over year at mid-point. Adjusted EBITDA is expected in the range of $139-$144 million.
The Zacks Consensus Estimate for revenues is currently pegged at $430 million, which indicates growth of 14.8% from the year-ago quarter’s reported figure.
Non-GAAP earnings are expected between $2.34 and $2.44 per share. The consensus mark is pegged at $2.52 per share, implying a decline of 10.6% from the year-ago quarter’s reported figure.
CoStar currently expects revenues between $1.644 billion and $1.650 billion (up from previous guidance of $1.63-1.64 billion), suggesting growth of 18% year over year.
The Zacks Consensus Estimate for revenues is currently pegged at $1.64 billion, which indicates growth of 16.9% from the year-ago quarter’s reported figure.
Adjusted EBITDA is expected in the range of $525-$530 million for 2020, indicating 4% growth at the midpoint of the range compared with 2019.
Non-GAAP earnings are expected between $9.39 and $9.49 per share. The Zacks Consensus Estimate is pegged at $9.37 per share, implying a decline of 8.1% from the year-ago quarter’s reported figure.
All the three stocks are set to release their quarterly results on Oct 29.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
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CoStar Group (CSGP) Q3 Earnings Beat, Revenues Increase Y/Y
CoStar (CSGP - Free Report) reported third-quarter 2020 adjusted earnings of $2.26 per share that beat the Zacks Consensus Estimate by 8.7%. However, the figure declined 13.4% year over year.
Revenues of $425.6 million outpaced the Zacks Consensus Estimate by 2% and improved 20.6% year over year.
North America revenues were $410.9 million, up 19.5% year over year. Moreover, international revenues were $14.7 million, up 63.1% year over year.
Markedly, CoStar had 69 million monthly unique visitors on its platforms in the quarter under review, up 33% year over year.
Quarter Details
Information and analytics revenues were $199.2 million, up 13.5% year over year.
CoStar Suite revenues increased 6.4% year over year to $166 million. Information services revenues surged 70.4% from the year-ago quarter to $33.2 million.
CoStar Group, Inc. Price, Consensus and EPS Surprise
CoStar Group, Inc. price-consensus-eps-surprise-chart | CoStar Group, Inc. Quote
Online Marketplaces revenues increased 27.7% year over year to $226.5 million. Apartments.com grew 23% and LoopNet grew 19% year over year in the third quarter.
Moreover, per ComScore, Apartments.com attracted more than 25 million average monthly unique visitors, up 20% year over year. Further, Apartments.com had 2.3 times as many unique visitors as RentPath, nine times as many as Zumper, 12 times as many as Apartment List and 22% more than the Zillow rental network.
Multi-family revenues increased 23.4% year over year to $155.2 million. Commercial property and land revenues were $71.3 million, up 38.1%.
Operating Details
Gross margin expanded 190 basis points (bps) on a year-over-year basis to 81.7%.
Adjusted EBITDA margin of 31.4% contracted 530 bps on a year-over-year basis.
Selling and marketing expenses as a percentage of revenues increased 570 bps from the year-ago quarter to 34.5%.
General and administrative expenses as a percentage of revenues increased 240 bps on a year-over-year basis to 15.3%.
Non-GAAP operating margin contracted 870 bps on a year-over-year basis to18%.
Balance Sheet
As of Sep 30, 2020, CoStar’s cash and cash equivalents and restricted cash were $3.87 billion compared with $3.54 billion as of Jun 30.
CoStar had long-term debt of $986.4 million as of Sep 30 compared with $745 million as of Jun 30.
Guidance
For the fourth quarter of 2020, revenues are expected between $429 million and $435 million, suggesting growth of 15% year over year at mid-point. Adjusted EBITDA is expected in the range of $139-$144 million.
The Zacks Consensus Estimate for revenues is currently pegged at $430 million, which indicates growth of 14.8% from the year-ago quarter’s reported figure.
Non-GAAP earnings are expected between $2.34 and $2.44 per share. The consensus mark is pegged at $2.52 per share, implying a decline of 10.6% from the year-ago quarter’s reported figure.
CoStar currently expects revenues between $1.644 billion and $1.650 billion (up from previous guidance of $1.63-1.64 billion), suggesting growth of 18% year over year.
The Zacks Consensus Estimate for revenues is currently pegged at $1.64 billion, which indicates growth of 16.9% from the year-ago quarter’s reported figure.
Adjusted EBITDA is expected in the range of $525-$530 million for 2020, indicating 4% growth at the midpoint of the range compared with 2019.
Non-GAAP earnings are expected between $9.39 and $9.49 per share. The Zacks Consensus Estimate is pegged at $9.37 per share, implying a decline of 8.1% from the year-ago quarter’s reported figure.
Zacks Rank & Stocks to Consider
Currently, CoStar carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are AMETEK (AME - Free Report) , Digital Turbine (APPS - Free Report) and Arrow Electronics (ARW - Free Report) . All the three stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
All the three stocks are set to release their quarterly results on Oct 29.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>