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COSTAR GROUP, INC. (CSGP)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue of $709.4M grew 11% YoY and 2% QoQ, marking the 55th consecutive quarter of double-digit revenue growth; adjusted EBITDA of $111.9M was up 47% QoQ and well above the Q4 guide of $76–$86M, with management stating full-year revenue and adjusted EBITDA exceeded consensus and the high end of guidance .
  • FY24 revenue rose 11% to $2.736B; CoStar ($1.021B, +10%) and Apartments.com ($1.067B, +17%) both topped $1B; commercial information and marketplaces delivered 43% profit margins in 2024, underscoring core profitability while residential investments continue .
  • Homes.com Network cemented the #2 position in U.S. residential portals with 110M average monthly unique visitors in Q4; total CoStar sites averaged 134M, +17% YoY, while net new bookings accelerated to $53M in Q4, +21% QoQ .
  • 2025 outlook: revenue $2.985–$3.015B (~10% YoY), adjusted EBITDA $375–$405M (~13% margin); Q1 2025 revenue $711–$716M (~9% YoY) and adjusted EBITDA $25–$35M (seasonally low as sales hiring ramps). Board authorized a $500M share repurchase program .

What Went Well and What Went Wrong

  • What Went Well

    • Delivered 55th straight quarter of double-digit revenue growth; Q4 revenue $709.4M (+11% YoY) and adjusted EBITDA $111.9M (up 47% QoQ), ahead of guidance, with management noting beats versus consensus and guidance .
    • Apartments.com strength: Q4 revenue $276.5M; brand metrics and renewal remain best-in-class (average NPS ~94; ~99% monthly renewal), supporting 17% FY24 growth to $1.067B and continued TAM expansion .
    • Homes.com scaled rapidly to #2 in U.S. residential traffic (110M average monthly unique visitors in Q4), with improving sales force productivity and rising NPS as the dedicated team expanded to 275+ reps .

  • What Went Wrong

    • Year-over-year profitability compression: Q4 2024 adjusted EBITDA ($111.9M) below Q4 2023 ($130.1M) and EBITDA $72.9M below $98.0M a year ago, reflecting elevated spend (notably sales/marketing for Homes.com) .
    • Residential revenue base remains modest ($28.1M in Q4; $100.6M FY) relative to marketing investment, and FY24 consolidated net income declined to $138.7M from $374.7M in 2023 amid higher operating expenses .
    • International EBITDA loss widened for FY24 (-$58.5M vs. -$13.2M), reflecting ramp investments (e.g., OnTheMarket, Europe buildout), though management is rationalizing duplicative platforms .

Financial Results

MetricQ4 2023Q3 2024Q4 2024Consensus (S&P Global)Notes
Revenue ($M)$640.1 $692.6 $709.4 N/A (SPGI limit)11% YoY, 2% QoQ
Net Income ($M)$96.4 $53.0 $59.8 N/A (SPGI limit)
Diluted EPS ($)$0.24 $0.13 $0.15 N/A (SPGI limit)
EBITDA ($M)$98.0 $50.8 $72.9 N/A (SPGI limit)
Adjusted EBITDA ($M)$130.1 $75.9 $111.9 N/A (SPGI limit)+47% QoQ
Adjusted EBITDA Margin (%)20.3% (calc) 11.0% (calc) 15.8% (calc) N/A (SPGI limit)
  • Estimates disclaimer: S&P Global consensus values were unavailable due to API limit at time of request; management stated revenue and adjusted EBITDA exceeded consensus and the high end of guidance . Values retrieved from S&P Global were unavailable due to limits.

Segment Revenue (Total, $M)

SegmentQ4 2023Q3 2024Q4 2024
CoStar$237.7 $256.9 $260.3
Information Services$42.7 $33.0 $36.5
Multifamily (Apartments.com)$243.8 $271.8 $276.5
LoopNet$68.5 $70.9 $71.9
Residential (Homes.com/OnTheMarket)$10.0 $27.7 $28.1
Other Marketplaces$37.4 $32.3 $36.1
Total$640.1 $692.6 $709.4

Key KPIs

KPIPrior Quarter (Q3 2024)Current (Q4 2024)
Net New Bookings ($M)N/A (not disclosed)$53
Avg Monthly Unique Visitors (All Sites, M)163 134
Homes.com Network Avg Monthly UV (M)130 110
Contract Renewal Rate (All)N/A89% (Q4)
Renewal Rate (Subscribers >5yrs)N/A94% (Q4)
Subscription Revenue MixN/A96% (FY24)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated RevenueQ1 2025N/A$711M–$716M (~9% YoY) New
Consolidated Adjusted EBITDAQ1 2025N/A$25M–$35M (~4% margin) New
Consolidated RevenueFY 2025N/A$2.985B–$3.015B (~10% YoY) New
Consolidated Adjusted EBITDAFY 2025N/A$375M–$405M (~13% margin) New
CoStar (Suite) Revenue GrowthFY 2025N/A6–7% (Q1 ~6%) New
Apartments.com Revenue GrowthFY 2025N/A11–12% (Q1 ~11%) New
LoopNet Revenue GrowthFY 2025N/AMid-single digit (Q1 similar) New
Information Services GrowthFY 2025N/A18–20% (incl. ~$40M Visual Lease) New
Other Marketplaces GrowthFY 2025N/AMid- to high-single digit; Q1 slightly < $30M New
Residential (Homes/OTM) GrowthFY 2025N/AHigh teens–low 20s; Q1 ~40% New
Net Interest IncomeFY 2025N/A~ $170M New
Capital ExpendituresFY 2025N/A$400–$450M (incl. ~$360M Richmond) New
Long-term TargetsMulti-year2022 5-yr targets in placeWithdrawn Withdrawn
Share RepurchaseAuthorizationN/AUp to $500M (no time limit) New

Earnings Call Themes & Trends

TopicQ2 2024 (Q-2)Q3 2024 (Q-1)Q4 2024 (Current)Trend
Homes.com scale and brand148M UV; unaided awareness 27% (June); net new bookings >$55M YTD 130M UV; awareness 33% (Sept) 110M UV; dedicated sales 275 reps; NPS improved from -40 to 28; goal 500 reps in 2025 Rapid scale; sales force ramp; improving customer sentiment
Apartments.com performance18% YoY revenue growth; #2 billion+ run-rate unit 11% YoY revenue growth Q3; profitability strong Q4 revenue $276.5M; NPS ~94, ~99% monthly renewal; FY revenue $1.067B (+17%) Durable growth; TAM penetration broadening
CoStar Suite growth drivers+10% YoY; STR integration aids growth +11% revenue overall; 43% margins in commercial info/marketplaces $1.021B FY; CoStar sales re-focused; record December bookings; lenders product momentum Core engine resilient; lender analytics adoption rising
CRE macro—Continued headwinds implied Signs of recovery: positive office absorption; falling availability; cap rates rolling over (CEO view) Improving outlook per mgmt
LoopNet strategy——Shift to asset-based pricing; 98% renewal in first cohort; mix shifting to high-renewal Silver ads Strategic pivot; bookings momentum building
International/OTM——U.K. OTM: visits +75%, leads +42%; 8 months net new revenue growth; rationalizing Europe platforms Steady progress; cost discipline
M&A/regulatoryMatterport pending Matterport pending Matterport: substantial compliance with FTC 2nd request; targeting close Q1 Advancing review

Management Commentary

  • “We achieved another very strong quarter… 2024 full year revenue and adjusted EBITDA exceeding consensus and the high end of our guidance range.”
  • “CoStar Group delivered a 17% increase year-over-year in average monthly unique visitors to 134 million in the fourth quarter of 2024.”
  • “In less than one year, the Homes.com Network has become the second largest residential real estate marketplace in the United States… 110 million average monthly unique visitors in the fourth quarter.”
  • “Along with crossing the $1 billion revenue mark in 2024, Apartments.com turned in a very strong fourth quarter… renewal rates in the 90s with a monthly renewal rate of 99%.”
  • “We are shifting [LoopNet] to asset-based pricing… for the first cohort of contracts that received price increases, 98% have renewed at the significant price list.”
  • “We are withdrawing our 5-year revenue and EBITDA targets… [but] continue to see significant growth opportunities in our core products.”

Q&A Highlights

  • Apartments.com guide: 2025 growth mix skewing more to unit growth than pricing near-term as sales capacity expands into underpenetrated TAM; very large runway across smaller buildings and independent owners .
  • Margins and Homes.com spend: Core commercial margins expected to expand 1–2 pts per year; Homes.com 2025 investment broadly similar to 2024 with better productivity, fewer cancels after Q1, and improving NPS; international residential spend moderating as OTM starts to harvest .
  • LoopNet: Early success shifting to asset-based pricing and Silver ad mix; expect sequential acceleration through 2025, setting up for a stronger 2026 exit rate .
  • International buildout: Rationalizing European platforms to reduce duplicative costs; CoStar France targeted by YE 2025; moving marketplaces to LoopNet in 2025; not expecting significant P&L hit in 2025 .
  • Capital allocation: $500M buyback authorization with plan to deploy ~$150M annually to more than offset SBC; 2025 net interest income forecast ~$170M and CapEx $400–$450M (Richmond campus heavy) .

Estimates Context

  • S&P Global consensus for Q4 2024 EPS and revenue was unavailable due to API request limits at time of analysis. Management stated that FY24 and Q4 results exceeded both consensus and the high end of guidance for revenue and adjusted EBITDA . Values retrieved from S&P Global were unavailable due to limits.

Key Takeaways for Investors

  • Core franchises (CoStar Suite, Apartments.com, LoopNet) remain healthy, with 2024 commercial info/marketplaces at 43% profit margins; 2025 plans emphasize sales capacity expansion, particularly Homes.com, to drive multi-year growth .
  • Homes.com has quickly scaled to #2 in traffic; rising NPS and a 500-rep sales target by YE25 should improve bookings and renewals, but 2025 adjusted EBITDA will be seasonally low in Q1 as hiring ramps .
  • LoopNet’s asset-based pricing transition shows early traction (98% renewals in the first cohort) and should build quarterly momentum through 2025, with a better setup for 2026 .
  • CoStar lender analytics is gaining share across 370 institutions and $1T+ of CRE debt; as CRE conditions stabilize and improve, this product can be a structural driver .
  • 2025 outlook (~10% revenue growth, ~13% adj. EBITDA margin) balances growth investment with profitability; buyback authorization ($500M) adds a support layer to per-share metrics .
  • Watch catalysts: Matterport closing/FTC resolution; sustained Homes.com bookings and NPS gains; LoopNet pricing mix shift impacting bookings; CRE recovery indicators (absorption, cap rates) supporting CoStar and Ten-X .

Sources: Q4 2024 8-K and press release, investor presentation, and earnings call transcript –; prior quarter press releases for trend context – –.