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CoStar Group (CSGP) Q2 Earnings Top Estimates, Revenues Up Y/Y
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CoStar Group (CSGP - Free Report) reported second-quarter 2022 non-GAAP earnings of 28 cents per share, which beat the Zacks Consensus Estimate by 33.33% and improved 7.7% year over year.
Revenues of $536 million beat the Zacks Consensus Estimate by 0.81% and increased 12% year over year.
The revenue growth was led by three main products of the company, CoStar, Apartments.com and LoopNet, which experienced an exceptional sales quarter with a combined 81% growth on a year-over-year basis.
Annualized net new sale bookings led by the three main products were $84 million, reflecting a 66% increase year over year.
CoStar Group, Inc. Price, Consensus and EPS Surprise
CoStar revenues (38.5% of revenues) increased 17% year over year to $206.57 million. CoStar net new sales bookings increased 60% from the year-ago quarter as a result of the development of new products like hospitality data addition, integrated CMBS data and analytics, and the new lender product that attracted new customers.
In the CoStar business segment, Apartments.com net new sales bookings surged a whopping 138% year over year as apartment vacancy rates increased, leading to raised apartment advertisements. Apartment construction levels have risen, which increased the number of apartments to be given out for rent, thus impacting revenues generated from Apartments.Com positively.
Information Services (7.2% of revenues) increased 10% year over year to $38.5 million. The surge in revenues can be attributed to the Business Immo acquisition, which contributed to the information services revenues.
Multifamily revenues (34% of revenues) increased 6.4% year over year to $182.4 million. The improvement in multifamily revenues was owing to the vacancy rates going up; however, it is still reeling from the post-effects of the pandemic as vacancy rates are still not at the pre-pandemic levels.
LoopNet revenues (10.5% of revenues) were up 10.2% year over year to $56.30 million. The recent surge in LoopNet’s revenues was due to the positive ROI generated from the investment to relaunch LoopNet in Canada. The number of monthly unique visitors on the Canadian LoopNet network surged 45% year over year, which contributed to an increase in revenues.
Second-quarter Residential revenues (3.8% of revenues) were $20 million, which increased 40% compared with the second quarter of 2021 on the back of Homesnap business development. Revenues from Pro+ products grew 46% year over year, which benefited the residential revenues.
Other marketplace revenues (6.06% of revenues) increased 17.3% year over year to $32.43 million.
Operating Details
Both selling and marketing and software development expenses, as a percentage of revenues, decreased 50 bps. General & administrative expenses increased 230 bps as a percentage of revenues, while customer base amortization expenses increased by 100 bps.
Adjusted EBITDA margin in the second quarter of 2022 was 30% compared with 31% in the year-ago quarter.
Balance Sheet and Cash Flow Statement
CSGP reported cash, cash equivalents and restricted cash of $4 billion as of Jun 30, 2022, compared with $3.93 billion as of Mar 31, 2022.
The company, however, had long-term debt of $1 billion as of Jun 30, 2022, compared with $988.27 million as of Mar 31, 2022.
It generated $212 million in cash from operations compared with $130.81 million in the previous quarter.
Guidance
Third-quarter 2022 revenues are expected between $552 million and $557 million, indicating growth of 11%.
The company has raised its revenue guidance to a range of $2.165 billion to $2.180 billion for the full year of 2022, an increase of $13 million at the mid-point of the range compared with the prior outlook.
The company expects adjusted EBITDA in the range of $130 million to $140 million. For the full year, CSGP raised its adjusted EBITDA guidance to a range of $610 million to $630 million, which reflects an increase of $20 million at the mid-point.
Third-quarter 2022 non-GAAP net income per diluted share is expected between 23 cents and 25 cents based on 395 million shares. Full-year non-GAAP net income per diluted share is expected between $1.09 and $1.13 based on 395 million shares.
Zacks Rank & Other Stocks to Consider
CoStar currently carries a Zacks Rank #2 (Buy).
CSGP’s shares have fallen 23.2% compared with the Zacks Computer and Technology sector’s decline of 29.4% in the year-to-date period.
Here are some top-ranked stocks worth considering in the broader sector.
Ballard’s shares have fallen 45.1% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Components industry’s decline of 23.7%. BLDP is scheduled to report second-quarter 2022 results on Aug 10.
Aspen’s shares have returned 22.3% in the year-to-date period against the Zacks Internet - Software industry’s decline of 52.6%. AZPN is scheduled to report second-quarter 2022 results on Aug 8.
Dell’s shares have fallen 22.3% in the year-to-date period compared with the Zacks Computers - IT Services industry’s decline of 34.6%. AZPN is scheduled to report second-quarter 2022 results on Aug 25.
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CoStar Group (CSGP) Q2 Earnings Top Estimates, Revenues Up Y/Y
CoStar Group (CSGP - Free Report) reported second-quarter 2022 non-GAAP earnings of 28 cents per share, which beat the Zacks Consensus Estimate by 33.33% and improved 7.7% year over year.
Revenues of $536 million beat the Zacks Consensus Estimate by 0.81% and increased 12% year over year.
The revenue growth was led by three main products of the company, CoStar, Apartments.com and LoopNet, which experienced an exceptional sales quarter with a combined 81% growth on a year-over-year basis.
Annualized net new sale bookings led by the three main products were $84 million, reflecting a 66% increase year over year.
CoStar Group, Inc. Price, Consensus and EPS Surprise
CoStar Group, Inc. price-consensus-eps-surprise-chart | CoStar Group, Inc. Quote
Top Line Details
CoStar revenues (38.5% of revenues) increased 17% year over year to $206.57 million. CoStar net new sales bookings increased 60% from the year-ago quarter as a result of the development of new products like hospitality data addition, integrated CMBS data and analytics, and the new lender product that attracted new customers.
In the CoStar business segment, Apartments.com net new sales bookings surged a whopping 138% year over year as apartment vacancy rates increased, leading to raised apartment advertisements. Apartment construction levels have risen, which increased the number of apartments to be given out for rent, thus impacting revenues generated from Apartments.Com positively.
Information Services (7.2% of revenues) increased 10% year over year to $38.5 million. The surge in revenues can be attributed to the Business Immo acquisition, which contributed to the information services revenues.
Multifamily revenues (34% of revenues) increased 6.4% year over year to $182.4 million. The improvement in multifamily revenues was owing to the vacancy rates going up; however, it is still reeling from the post-effects of the pandemic as vacancy rates are still not at the pre-pandemic levels.
LoopNet revenues (10.5% of revenues) were up 10.2% year over year to $56.30 million. The recent surge in LoopNet’s revenues was due to the positive ROI generated from the investment to relaunch LoopNet in Canada. The number of monthly unique visitors on the Canadian LoopNet network surged 45% year over year, which contributed to an increase in revenues.
Second-quarter Residential revenues (3.8% of revenues) were $20 million, which increased 40% compared with the second quarter of 2021 on the back of Homesnap business development. Revenues from Pro+ products grew 46% year over year, which benefited the residential revenues.
Other marketplace revenues (6.06% of revenues) increased 17.3% year over year to $32.43 million.
Operating Details
Both selling and marketing and software development expenses, as a percentage of revenues, decreased 50 bps. General & administrative expenses increased 230 bps as a percentage of revenues, while customer base amortization expenses increased by 100 bps.
Adjusted EBITDA margin in the second quarter of 2022 was 30% compared with 31% in the year-ago quarter.
Balance Sheet and Cash Flow Statement
CSGP reported cash, cash equivalents and restricted cash of $4 billion as of Jun 30, 2022, compared with $3.93 billion as of Mar 31, 2022.
The company, however, had long-term debt of $1 billion as of Jun 30, 2022, compared with $988.27 million as of Mar 31, 2022.
It generated $212 million in cash from operations compared with $130.81 million in the previous quarter.
Guidance
Third-quarter 2022 revenues are expected between $552 million and $557 million, indicating growth of 11%.
The company has raised its revenue guidance to a range of $2.165 billion to $2.180 billion for the full year of 2022, an increase of $13 million at the mid-point of the range compared with the prior outlook.
The company expects adjusted EBITDA in the range of $130 million to $140 million. For the full year, CSGP raised its adjusted EBITDA guidance to a range of $610 million to $630 million, which reflects an increase of $20 million at the mid-point.
Third-quarter 2022 non-GAAP net income per diluted share is expected between 23 cents and 25 cents based on 395 million shares. Full-year non-GAAP net income per diluted share is expected between $1.09 and $1.13 based on 395 million shares.
Zacks Rank & Other Stocks to Consider
CoStar currently carries a Zacks Rank #2 (Buy).
CSGP’s shares have fallen 23.2% compared with the Zacks Computer and Technology sector’s decline of 29.4% in the year-to-date period.
Here are some top-ranked stocks worth considering in the broader sector.
Ballard Power Systems (BLDP - Free Report) carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ballard’s shares have fallen 45.1% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Components industry’s decline of 23.7%. BLDP is scheduled to report second-quarter 2022 results on Aug 10.
Aspen Technology (AZPN - Free Report) carries a Zacks Rank #2.
Aspen’s shares have returned 22.3% in the year-to-date period against the Zacks Internet - Software industry’s decline of 52.6%. AZPN is scheduled to report second-quarter 2022 results on Aug 8.
Dell Technologies (DELL - Free Report) carries a Zacks Rank #2.
Dell’s shares have fallen 22.3% in the year-to-date period compared with the Zacks Computers - IT Services industry’s decline of 34.6%. AZPN is scheduled to report second-quarter 2022 results on Aug 25.