We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CoStar Group (CSGP) Q3 Earnings Top Estimates, Revenues Up Y/Y
Read MoreHide Full Article
CoStar Group (CSGP - Free Report) reported third-quarter 2022 non-GAAP earnings of 30 cents per share, beating the Zacks Consensus Estimate by 25% and increasing 20% year over year.
Revenues of $556.9 million beat the Zacks Consensus Estimate by 0.35% and increased 11.5% year over year.
The upside was led by one of the company’s main products, Apartments.com, which experienced an exceptional sales quarter.
Annualized net new sale bookings led by Apartments.com was $76 million, reflecting a 62% increase year over year.
CoStar Group, Inc. Price, Consensus and EPS Surprise
CoStar revenues (38.2% of revenues) increased 16.1% year over year to $212.7 million. In the third quarter, CoStar surpassed 180,000 subscribers and maintained high renewal rates at 93% from the year-ago period.
In the CoStar business segment, Apartments.com net new sales bookings surged a whopping 192% year over year as apartment vacancy rates increased, leading to raised apartment advertisements. Apartment.com revenues were $190 million in the third quarter of 2022, which increased 11% year over year.
Information Services (7.4% of revenues) increased 14.2% year over year to $41 million. The revenue surge can be attributed to the real estate manager solution, which contributed to the information services revenues.
Multifamily revenues (10.8% of revenues) increased 7.4% year over year to $189.5 million. The improvement in multifamily revenues was fueled by higher vacancy rates. 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 (10.6% of revenues) were up 12.1% year over year to $58.9 million. Net new sales bookings for LoopNet in the third quarter of 2022 are up 99% year over year.
Third-quarter Residential revenues (3.5% of revenues) were $19.4 million, declining 21.8% compared with the third quarter of 2021 levels.
Other marketplace revenues (6.4% of revenues) increased 11.7% year over year to $35.4 million.
Operating Details
Both selling and marketing and software development expenses, as a percentage of revenues, fell 280 bps and 40 bps, respectively. General & administrative expenses increased 340 bps, as a percentage of revenues, while customer base amortization expenses increased by 150 bps.
Adjusted EBITDA margin in the second quarter of 2022 was 27.4% compared with 28.8% in the year-ago quarter.
Balance Sheet and Cash Flow Statement
CSGP reported cash, cash equivalents and restricted cash of $4.78 billion as of Sep 30, 2022, compared with $4 billion as of Jun 30, 2022.
The company, however, had long-term debt of $988.9 million as of Jun 30, 2022, compared with $1 billion as of Jun 30, 2022.
It generated $293.59 million in cash from operations compared with $212 million in the previous quarter.
Guidance
Fourth-quarter 2022 revenues are expected between $566 million to $571 million, representing revenue growth of 12% to 13%.
The company has raised its revenue guidance to a range of $2.175 billion to $2.180 billion for 2022, an increase of $5 million at the mid-point of the range compared with the prior outlook.
The company expects adjusted EBITDA in the range of $176 million to $181 million, indicating a margin of 31% at the midpoint. For the full year, CSGP raised its adjusted EBITDA guidance to a range of $665 million to $670 million, which reflects an increase of $48 million at the mid-point.
Stocks to Consider
CoStar currently carries a Zacks Rank #3 (Hold).
CSGP’s shares have fallen 5.8% compared with the Zacks Computer and Technology sector’s decline of 32.6% in the year-to-date period.
Here are some top-ranked stocks worth considering in the broader sector.
Image: Bigstock
CoStar Group (CSGP) Q3 Earnings Top Estimates, Revenues Up Y/Y
CoStar Group (CSGP - Free Report) reported third-quarter 2022 non-GAAP earnings of 30 cents per share, beating the Zacks Consensus Estimate by 25% and increasing 20% year over year.
Revenues of $556.9 million beat the Zacks Consensus Estimate by 0.35% and increased 11.5% year over year.
The upside was led by one of the company’s main products, Apartments.com, which experienced an exceptional sales quarter.
Annualized net new sale bookings led by Apartments.com was $76 million, reflecting a 62% 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 (38.2% of revenues) increased 16.1% year over year to $212.7 million. In the third quarter, CoStar surpassed 180,000 subscribers and maintained high renewal rates at 93% from the year-ago period.
In the CoStar business segment, Apartments.com net new sales bookings surged a whopping 192% year over year as apartment vacancy rates increased, leading to raised apartment advertisements. Apartment.com revenues were $190 million in the third quarter of 2022, which increased 11% year over year.
Information Services (7.4% of revenues) increased 14.2% year over year to $41 million. The revenue surge can be attributed to the real estate manager solution, which contributed to the information services revenues.
Multifamily revenues (10.8% of revenues) increased 7.4% year over year to $189.5 million. The improvement in multifamily revenues was fueled by higher vacancy rates. 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 (10.6% of revenues) were up 12.1% year over year to $58.9 million. Net new sales bookings for LoopNet in the third quarter of 2022 are up 99% year over year.
Third-quarter Residential revenues (3.5% of revenues) were $19.4 million, declining 21.8% compared with the third quarter of 2021 levels.
Other marketplace revenues (6.4% of revenues) increased 11.7% year over year to $35.4 million.
Operating Details
Both selling and marketing and software development expenses, as a percentage of revenues, fell 280 bps and 40 bps, respectively. General & administrative expenses increased 340 bps, as a percentage of revenues, while customer base amortization expenses increased by 150 bps.
Adjusted EBITDA margin in the second quarter of 2022 was 27.4% compared with 28.8% in the year-ago quarter.
Balance Sheet and Cash Flow Statement
CSGP reported cash, cash equivalents and restricted cash of $4.78 billion as of Sep 30, 2022, compared with $4 billion as of Jun 30, 2022.
The company, however, had long-term debt of $988.9 million as of Jun 30, 2022, compared with $1 billion as of Jun 30, 2022.
It generated $293.59 million in cash from operations compared with $212 million in the previous quarter.
Guidance
Fourth-quarter 2022 revenues are expected between $566 million to $571 million, representing revenue growth of 12% to 13%.
The company has raised its revenue guidance to a range of $2.175 billion to $2.180 billion for 2022, an increase of $5 million at the mid-point of the range compared with the prior outlook.
The company expects adjusted EBITDA in the range of $176 million to $181 million, indicating a margin of 31% at the midpoint. For the full year, CSGP raised its adjusted EBITDA guidance to a range of $665 million to $670 million, which reflects an increase of $48 million at the mid-point.
Stocks to Consider
CoStar currently carries a Zacks Rank #3 (Hold).
CSGP’s shares have fallen 5.8% compared with the Zacks Computer and Technology sector’s decline of 32.6% in the year-to-date period.
Here are some top-ranked stocks worth considering in the broader sector.
ZoomInfo Technologies (Z - Free Report) I) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The company is set to report its third quarter 2022 earnings on Nov 1.
ZI’s shares have lost 26.5% in the year-to-date period compared with the Zacks Computer - Integrated Systems industry’s decline of 8.5%.
Tencent Music Entertainment Group (TME - Free Report) also a Zacks Rank #2. The company is set to report its third quarter 2022 earnings on Nov 15.
TME shares have lost 44.1% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 35.2%.
Upstart (UPST - Free Report) has a Zacks Rank #2. The company is set to report its third quarter 2022 earnings on Nov 8.
UPST shares have lost 83.7% in the year-to-date period compared with the Zacks Computers - IT Services industry’s decline of 34.4%.