Q3 2024 CoStar Group Inc Earnings Call Transcript
Key Points
- CoStar Group Inc (CSGP) reported a strong third quarter with revenue of $693 million, marking an 11% increase year-over-year and aligning with their guidance.
- The company achieved its 54th consecutive quarter of double-digit growth, showcasing consistent performance.
- Apartments.com, a key segment, reported a revenue of $272 million for the quarter, with a 16% growth rate, maintaining its leadership position in the multifamily segment.
- CoStar's adjusted EBITDA of $76 million exceeded the guidance range, indicating effective cost management and operational efficiency.
- The company is expanding its sales force across CoStar, LoopNet, and Apartments.com, indicating confidence in market opportunities and future growth potential.
- The pivot of the sales force to focus on the new Homes.com product led to lower productivity and renewal rates, impacting overall sales performance.
- The commercial real estate market has been challenging, with office prices down 18% over the past year and multifamily prices down 11%, affecting market conditions.
- Net new bookings were $44 million, reflecting a decrease in core bookings, which could impact future revenue growth.
- The transition of sales resources back to core products from Homes.com has been slower than expected, affecting short-term sales productivity.
- The residential revenue guidance was adjusted downward due to sales force productivity issues and less favorable property market conditions.
Good day, and thank you for standing by. Welcome to the Q3 2024 CoStar Group earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
After the speakers' presentation there will be a question-and-answer session. (Operator Instructions)
I would now like to hand the conference over to your speaker today, Rich Simonelli, Head of Investor Relations.
Hello, and thank you all for joining us to discuss the third-quarter 2024 results of the CoStar Group. Before I turn the call over to Andy Florance, CoStar's CEO and Founder; and Chris Lown, our CFO, I'd like to review our Safe Harbor statement.
Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the fourth-quarter and full-year 2024 based on current beliefs and assumptions. Forward-looking statements involve many risks, uncertainties, and assumptions, estimates and other factors that could cause
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