Total Revenue

+10.9% (from USD 640.06M to USD 709.4M)

Total Revenue increased due to robust performance in key segments, with improvements in North America, International, Residential, and Multifamily revenues supporting overall growth, even as some segments like Information Services declined. This highlights successful expansion efforts compared to prior periods. " " "

North America Revenue

+9.6% (from USD 615.07M to USD 674.5M)

North America revenue benefited from strong domestic segment performance, driven by pricing power, increased listings, and organic growth across core products. These factors build on previous successes, reinforcing the company’s domestic market position. " "

International Revenue

~+40% (from USD 24.99M to USD 34.9M)

A nearly 40% surge in International revenue reflects accelerated expansion in non-domestic markets, likely driven by an intensified focus on CoStar products and potential acquisitions, building further on existing international market momentum. " "

Residential Segment Revenue

+180%+ (from USD 9.95M to USD 28.1M)

The Residential segment exploded with over a 180% increase, indicating that new product launches, membership subscriptions, and aggressive marketing strategies have successfully redefined and expanded the company’s residential offerings relative to the legacy period. "

Information Services Revenue

-14.6% (from USD 42.71M to USD 36.5M)

A decline of 14.6% in Information Services suggests challenges from product transitions or reduced legacy service sales, possibly due to the strategic shift towards other segments, continuing trends observed in previous periods. "

Multifamily Revenue

+13.5% (from USD 243.87M to USD 276.5M)

Multifamily revenue grew by 13.5%, driven by increased pricing for existing customers and a higher number of properties listed, building on the consistent demand seen in earlier quarters. "

Operating Income

-42% (from USD 69,339K to USD 40,000K)

Operating Income declined sharply due to a substantial rise in operating expenses (including selling & marketing, software development, and general administrative costs) that outpaced revenue growth, contrasting favorably with cost-control efforts in previous periods. " " "

Net Income

-38% (from USD 96,475K to USD 59,800K)

Net Income dropped by approximately 38% as the benefit from higher revenue was offset by increased costs and margin pressures, marking a tougher profitability environment compared to the prior period. " " "

EPS (Basic and Diluted)

Decreased from 0.23 to 0.15

EPS fell significantly on a per-share basis due to the reduction in net income and the impact of higher operating costs, underscoring lower overall profitability even as revenue growth occurred. " " "

Revenue

Q1 2025

no prior guidance

Expected range of $711M to $716M, representing 9% year-over-year growth at the midpoint "

no prior guidance

Adjusted EBITDA

Q1 2025

no prior guidance

Expected between $25M and $35M "

no prior guidance

LoopNet Revenue Growth

Q1 2025

no prior guidance

Expected to grow in the mid-single digits "

no prior guidance

Other Marketplaces Revenue

Q1 2025

no prior guidance

Expected to be slightly below $30M "

no prior guidance

Residential Revenue Growth

Q1 2025

no prior guidance

Expected growth of approximately 40% "

no prior guidance

Revenue

FY 2025

no prior guidance

Expected range of $2.985B to $3.015B, implying an annual growth rate of 9% to 10% "

no prior guidance

Adjusted EBITDA

FY 2025

no prior guidance

Expected in the range of $375M to $405M, reflecting an adjusted EBITDA margin of approximately 13% "

no prior guidance

Capital Expenditures

FY 2025

no prior guidance

Expected to range from $400M to $450M, with roughly $360M allocated for the Richmond campus "

no prior guidance

Net Interest Income

FY 2025

no prior guidance

Forecasted to be approximately $170M "

no prior guidance

Sales Force Expansion

FY 2025

no prior guidance

Plan to grow the sales force from 1,390 at December 2024 to 1,890 by December 2025 (adding approximately 500) "

no prior guidance

Apartments.com Revenue Growth

FY 2025

no prior guidance

Expected revenue growth of 11% to 12% "

no prior guidance

LoopNet Revenue Growth

FY 2025

no prior guidance

Expected to be in the mid-single digits "

no prior guidance

Information Services Revenue Growth

FY 2025

no prior guidance

Expected to be in the range of 18% to 20%, with Visual Lease contributing approximately $40M of revenue "

no prior guidance

Other Marketplaces Revenue Growth

FY 2025

no prior guidance

Expected growth in the mid- to high single digits "

no prior guidance

Residential Revenue Growth

FY 2025

no prior guidance

Expected to be in the high teens to low 20s percent range "

no prior guidance

Share Buyback Program

FY 2025

no prior guidance

Announced share buyback program of $500M, expecting to execute $150M of share repurchase annually "

no prior guidance

Sales Force Expansion

In Q1–Q3 2024, CoStar consistently discussed expanding its sales force to support Homes.com and core products. For example, Q1 mentioned plans to increase from 1,200 to 1,500 members to support Homes.com. " " Q2 emphasized building a dedicated Homes.com team and shifting borrowed sales reps back to core products. " Q3 detailed rapid hiring across Homes.com, CoStar, Apartments.com, and LoopNet, with explicit targets (e.g. doubling Homes.com sales force by 2025). " " " "

In Q4 2024, the focus is on a major expansion with plans to grow the sales force from 1,390 to 1,890 by December 2025 and noting significant improvement in rep productivity. " " "

Consistently emphasized with an increasing focus and positive sentiment as targeted headcount increases drive optimism about revenue growth.

Productivity Challenges

Throughout Q1–Q3 2024, productivity challenges were noted when sales teams juggled Homes.com and core responsibilities. For instance, Q1 and Q2 mentioned a "sales substitution effect" and lower productivity due to dual focus. " " " " " Q3 further elaborated on distraction effects impacting renewal rates until teams refocused on core products. " "

In Q4 2024, while productivity issues are still acknowledged, significant improvement in rep productivity is highlighted and challenges from earlier quarters appear to be being resolved. "

Recurring concern that is now showing improvement, with initial challenges easing and sentiment shifting more positive.

Apartments.com Growth

Q1 reported robust revenue growth (up 21%) and noted a modest 12% market penetration despite strong momentum. " " Q2 and Q3 emphasized the untapped TAM and the need to monetize smaller property segments; Q3 mentioned 16% revenue growth and highlighted opportunities in the 1- to 19-unit market. " "

Q4 2024 reiterates significant untapped TAM, particularly in smaller properties (e.g. $2.6 billion opportunity for 20+ unit market and millions more in smaller segments) while outlining targeted pricing adjustments and additional sales force growth. " " " "

Consistently strong growth with sustained focus on monetization challenges; sentiment remains positive with evolving tactics to capture larger market segments.

Homes.com Platform Growth

Q1 introduced Homes.com with rapid traffic (e.g. 386% year-over-year rise in unique visitors) and strong membership adoption, while Q2 and Q3 recapped continuous scaling, improved net new bookings, growing consumer awareness, and the ramp-up of a dedicated sales team. " " " " " " " " " " "

In Q4 2024, Homes.com is portrayed as having the potential to become one of CoStar’s largest businesses. The company is aggressively scaling its dedicated sales force, improving membership adoption, and addressing initial scaling risks with positive adjustments in net promoter scores and cancellation reductions. " " "

Evolving from a launch phase to maturity with aggressive scaling and a more positive tone as initial hurdles are overcome.

Core Commercial Booking Trends & Guidance

Q1 detailed strong commercial growth with a 12% YOY increase and a rebalancing of the sales mix, while Q2 maintained 10% growth and Q3 noted a temporary disruption from Homes.com focus but signs of rebound with improvements in net new bookings and solid guidance for core products. " " " " " " " " "

In Q4 2024, CoStar reported record net new bookings (highest in almost two years) and provided tight revenue guidance for 2025, driven by refocusing sales teams on core products and favorable market conditions. " "

Steady focus with periodic adjustments; sentiment has moved from tactical disruptions to a more optimistic outlook as adjustments yield stronger performance.

LoopNet Pricing & Ad Strategy

In Q1 and Q2 2024, there was little discussion on pricing adjustments, and Q3 only briefly mentioned the fundamentals behind focusing on LoopNet sales as the sales force refocused. " "

Q4 2024 brings a detailed discussion: CoStar is shifting to an asset-based pricing model with higher prices for high-value assets and is emphasizing high-volume silver-tier ads; early results are promising with high renewal rates (98% renewal in first cohort). " " " "

New and emerging focus in Q4 that builds on earlier hints, with a more detailed strategic recalibration aimed at unlocking long-term revenue potential.

International Expansion

Q1 mentioned expansion in the U.K. via OnTheMarket, highlighting strong traffic and lead growth. " Q3 reinforced the performance in the U.K. market with significant gains in traffic and listing agents. " Q2 provided no updates on this front.

Q4 2024 broadens the scope from a U.K. focus to a pan-European strategy. Plans include transitioning platforms in France and Spain to LoopNet and consolidating operations to achieve cost advantages while targeting a pan-European marketplace. " "

Evolving from a UK-centric approach to a broader European expansion, indicating its growing strategic importance and potential future impact.

Operating Expense & Margin Management

Q1 mentioned EBITDA margins and forecasts with less emphasis on expense discipline. Q3 highlighted sequential drops in sales and marketing expenses, with improvements in EBITDA margins (up to 43% for commercial segments). " Q2 offered little detail on these issues.

In Q4 2024, executives stressed that spending in 2025 is expected to remain roughly flat relative to 2024, with a keen focus on optimizing capital allocation. The outlook is positive with expectations of 1–2% margin increases year over year, reflecting careful cost control. " " "

Increasing focus on disciplined spending and margin improvement; sentiment has shifted from minimal mention to a clearly positive outlook on controlling costs and boosting margins.

Revenue Growth Outlook & Strategic Shifts

In Q1, a shift toward greater residential contributions was noted with strong Homes.com early performance and adjustments in revenue mix. " " Q2 discussed a downward adjustment in residential guidance due to shifting sales forces yet maintained overall guidance. " " " Q3 maintained full‐year guidance with renewed focus on balancing channels. " " "

Q4 2024 presents a moderated revenue outlook for 2025 (6%-7% growth) driven by challenging CRE market conditions and strategic shifts such as LoopNet’s pricing adjustments, even as long-term investments continue and 5-year targets were withdrawn. " "

A consistent theme of strategic recalibration – from an initially aggressive growth mix to a more cautious short-term outlook while remaining optimistic about long‑term opportunities.