a2de74fb558a263670bbd2aadcefe9031274f8445ba6b7b1caca8571e36b6c2c

38aad6ea788a69008caea5aca0b80b0fc280f7043374de3a91cf109db8462cb3

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

86ce7516164ae20f00dc682e19ca992f1c9a46d9dbd808438836792e21eca837

North America

- United States

International

Total Revenue

c248c096611ef3520ea84d1f5e1f2238276b40025fef8dff414f8a6cf4f1c074

Annualized net new bookings for subscription-based services on all contracts (USD millions)

Contract renewal rates for existing company-wide subscription-based services for contracts with a term of at least one year (percentage)

Cancellation rates for existing company-wide subscription-based services for contracts with a term of at least one year (percentage)

e80b224bf38b55871764c534b5e6b41059dc451db8d7ad9b458ef17f5a2e04ac

CoStar

Information Services

Multifamily

LoopNet

Residential

Other Marketplaces

Commercial Property and Land

51925c9acd60bd8b37a3d59957bb1826e716e605343b0a9498775ddada3538ab

Cash and cash equivalents (USD, millions)

Accounts receivable, net (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Total current assets (USD, millions)

Deferred income taxes, net (USD, millions)

Property and equipment, net (USD, millions)

Lease right-of-use assets (USD, millions)

Goodwill (USD, millions)

Intangible assets, net (USD, millions)

Deferred commission costs, net (USD, millions)

Deposits and other assets (USD, millions)

Income tax receivable (USD, millions)

Total assets (USD, millions)

Accounts payable (USD, millions)

Accrued wages and commissions (USD, millions)

Accrued expenses and other current liabilities (USD, millions)

Income taxes payable (current) (USD, millions)

Lease liabilities (current) (USD, millions)

Deferred revenue (current portion) (USD, millions)

Total current liabilities (USD, millions)

Long-term debt, net (USD, millions)

Deferred income taxes, net (non-current) (USD, millions)

Income taxes payable (non-current) (USD, millions)

Lease and other long-term liabilities (USD, millions)

Total liabilities (USD, millions)

Total stockholders' equity (USD, millions)

Total liabilities and stockholders' equity (USD, millions)

d596f6d3886ba93ceac18e5ed9b1aed59594b785fa3cc1bbe5f22015c3458589

c1d53467a7bdeaf2e74055ee880d48e429adb271cb784ad49a32396566086401

The **Operating Cash Flow in Q3 2023** was reported at **$42.61 million** compared to **$175.16 million** in Q2 2023.  **[0001057352-23-000127_csgp-20230930.htm:6]** **[0001057352-23-000111_csgp-20230630.htm:6]**  While the detailed reasoning for Q3 isn’t spelled out separately, similar trends noted over the nine‐month period indicate that adverse changes in working capital were a primary driver. In particular, a **larger increase in accounts receivable** and a **more negative impact from deferred commissions** contributed significantly to the lower cash inflows from operations. Positive non-cash adjustments such as higher stock-based compensation expense and increased amortization of deferred commissions were not enough to offset these headwinds.  **[0001193125-23-261675_d668394dex991.htm:5]** **[0001057352-23-000127_csgp-20230930.htm:6]** 

Why was Operating Cash Flow so low in Q3 2023?

The drop in operating cash flow in Q2 2024 was primarily driven by several factors. **Net income plunged from $187.7 million to $25.9 million**, which hit the cash flow significantly. Additionally, **non-cash expenses increased**—with depreciation and amortization rising from **$51.7 million to $72.1 million** and higher amortization of deferred commissions costs moving from **$45.3 million to $56.3 million**. Changes in working capital also played a role, such as a smaller decrease in accounts receivable and a larger increase in accounts payable and other liabilities, while income taxes payable decreased compared to the prior period. These elements combined led to the overall decline in operating cash flow for Q2 2024.  **[0001193125-24-182891_d856482dex991.htm:4]** **[0001057352-24-000091_csgp-20240630.htm:5]** 

What caused Operating Cash Flow to drop in Q2 2024?

The high capital expenditures in Q1 2024 were driven by **CoStar Group's significant investments in expanding its infrastructure** through the **construction or acquisition of new campuses**. However, while the documents indicate this investment trend, they do not provide further detailed specifics about the individual projects involved in this spending increase.  **[0001193125-24-107446_d827733d425.htm:6]** **[0001057352-24-000059_csgp-20240331.htm:5]** 

Why were capital expenditures for new campuses so high in Q1 2024?

The surge in investing outflows in **Q1 2024** was primarily driven by a series of large capital investments. Notably, **CoStar Group acquired an office building in Arlington, VA for $343 million** to relocate its DC-based employees, and further expanded its campus in Richmond, VA. Additionally, there were significantly higher purchases in property, equipment, and other assets for new campuses, with these expenditures amounting to **$376.7 million** in Q1 2024 compared to only **$15.7 million** in the prior year. This combination of strategic investments collectively led to the substantial increase in cash used for investing activities.  **[0001057352-24-000059_csgp-20240331.htm:47]** **[0001193125-24-107446_d827733d425.htm:6]** **[0001057352-24-000059_csgp-20240331.htm:5]** 

What drove the surge in investing outflows in Q1 2024?

The drastic cash change in Q1 2024 was primarily driven by a significant **increase in cash outflows for investing activities**. In that quarter, **$380.3 million** was used for investing activities—mainly due to the **acquisition of an office building in Arlington, VA (approximately $343 million)** and the **expansion of the Richmond, Virginia campus**—compared to only **$19.6 million** in Q1 2023. Additionally, while operating activities provided some positive cash flow (**$139.6 million** in Q1 2024 versus **$123.2 million** in Q1 2023) and financing activities saw increased usage, these factors were overshadowed by the heavy investments and a modest negative effect from foreign currency exchange rates, culminating in a net **decrease of $264.3 million** in cash and cash equivalents for Q1 2024.  **[0001057352-24-000059_csgp-20240331.htm:47]** **[0001057352-24-000059_csgp-20240331.htm:46]** 

Why did the cash change swing so drastically in Q1 2024?

422b3f95d24d349591502f54111072d093e65c21bc0dba6cd86ed3646c09641b

The decline in **cash and cash equivalents** in Q1 2024 was primarily driven by a **$380 million** outflow from investing activities, which included a **$343 million** expenditure for purchasing an office building in Arlington, VA, and campus expansion efforts in Richmond, VA.  **[0001057352-24-000059_csgp-20240331.htm:47]**  This was further complemented by a **$23 million** net cash use in financing activities, which involved repurchases of restricted stock, while operating activities provided **$140 million** in cash.  **[0001057352-24-000059_csgp-20240331.htm:47]**  Overall, these combined factors led to a reduction in cash balances from **$5,215.9 million** at the start of the period to **$4,951.6 million** by its end.  **[0001057352-24-000059_csgp-20240331.htm:5]** 

Why did cash and cash equivalents decline in Q1 2024?

The sharp increase in **Property and equipment, net** in Q1 2024 was primarily driven by the company’s purchases of property, equipment, and other assets for new campuses, amounting to **$376.7 million** during the quarter.  **[0001193125-24-107185_d827733dex991.htm:3]** **[0001057352-24-000059_csgp-20240331.htm:28]** **[0001057352-24-000059_csgp-20240331.htm:5]** 

What drove the sharp increase in property and equipment in Q1 2024?

The documents indicate that **Accounts Payable** rose significantly from **$23.1 million at December 31, 2023** to **$113.6 million at March 31, 2024**. However, they do not provide a definitive reason for this spike.  **[0001193125-24-107185_d827733dex991.htm:3]**  They do suggest common drivers for such an increase could include **timing of payments** (e.g., delays in paying suppliers), **increased operational activities** (which may be related to higher business expenses, acquisitions, or investments), or **changes in vendor agreements** (such as more favorable payment terms resulting in larger outstanding balances).  **[0001193125-24-107185_d827733dex991.htm:3]** 

Why did accounts payable spike in Q1 2024?

The documents indicate that the **non-current deferred income taxes** dropped from **$36.7 million** in Q4 2023 to **$12.8 million** in Q3 2024; however, they do not provide specific reasons for this steep drop. They mention that such variations can occur due to factors like changes in tax laws, timing differences in the recognition of revenue and expenses, and adjustments to valuation allowances, but they do not detail the exact cause in this instance.  **[0001057352-24-000122_q32024earningspressrelease.htm:5]** 

What caused the steep drop in non-current deferred income taxes in Q3 2024?

ec02197e670647ee6012067a24733ec92e5df369c9c5f4fe5f3f8f60b96e114e

CoStar Group Inc (CSGP)

Financials