CoStar Group Third Quarter 2021 Revenue Increased 17% Year-over-Year, CoStar Accelerated to Double-Digit Revenue Growth with Net Sales Reaching All-Time High

By: CoStar Group, Inc. via Business Wire

October 26, 2021 at 16:05 PM EDT

CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics, and online marketplaces, announced today that revenue for the quarter ended September 30, 2021, was $499 million, an increase of 17% over revenue of $426 million for the third quarter of 2020.

Net income for the third quarter of 2021 was $64 million, or $0.16 per diluted share. Non-GAAP net income for the third quarter of 2021 (which excludes amortization of acquired intangible assets, stock-based compensation, and other items as described below) was $99 million or $0.25 per diluted share, an increase of $10 million or 11% versus the third quarter of 2020. EBITDA for the third quarter of 2021 was $123 million, an increase of 13% versus EBITDA of $108 million for the third quarter of 2020.

“We achieved another great quarter of strong results, with CoStar Group now at nearly $2 billion in run rate revenue and profit for the third quarter of 2021 well-ahead of our guidance,” commented Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “CoStar performance continues to improve, with revenue returning to double-digit growth rates in the third quarter of 2021 and our CoStar sales team produced net sales bookings 57% higher quarter-over-quarter and 566% higher year-over-year," continued Florance. "I’m very happy with the performance of our Ten-X and Residential businesses as well, both of which delivered exceptional revenue growth of 27% for Ten-X and 38% for Homesnap, on a year-over-year and pro forma basis, respectively.”

“With recent record levels of demand for apartments, vacancies have declined to the lowest levels in decades creating some headwinds for demand in apartment advertising. However, traffic to our network of sites increased 17% year-over-year in the third quarter of 2021,” stated Florance, “with Apartments.com generating millions more high-quality leads for our customers year-over-year in a low-vacancy environment while our clients are increasing their rents to record levels. This tremendous growth in leads and rents has positioned Apartments.com to begin initiating pricing adjustments to better capture the value of the lead flow we are delivering to our clients. We are just beginning to implement the new pricing, and I am encouraged by the initial results of the price changes.”

Companywide net bookings for the third quarter of 2021 were $47 million, which includes stronger than expected CoStar sales offset by sales results slowed by the ultra-low vacancy rates in Multifamily.

Year 2020-2021 Quarterly Results - Unaudited
(in millions, except per share data)
	2020				2021
	Q1	Q2	Q3	Q4	Q1	Q2	Q3

Revenues	$392	$397	$426	$444	$458	$480	$499
Net income	73	60	58	36	74	61	64
Net income per share - diluted⁽¹⁾	0.20	0.16	0.15	0.09	0.19	0.16	0.16
Weighted average outstanding shares - diluted⁽¹⁾	368	377	394	394	394	394	394

EBITDA	100	109	108	88	136	133	123
Adjusted EBITDA	124	129	134	167	160	150	144
Non-GAAP net income	90	88	89	112	108	103	99
Non-GAAP net income per share - diluted⁽¹⁾	0.24	0.23	0.23	0.29	0.27	0.26	0.25
__________________________
⁽¹⁾Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

As of September 30, 2021, the Company had approximately $3.8 billion in cash, cash equivalents and restricted cash and outstanding debt of approximately $988 million.

2021 Outlook

“In order to provide additional transparency and insight into the revenue performance of our most promising growth areas, we will now report revenue for both LoopNet and Residential services separately in our quarterly financial results,” said CoStar Group Chief Financial Officer, Scott Wheeler. The Commercial Property and Land sector is being renamed Other Marketplaces and includes Ten-X and the Lands and Businesses for Sale marketplaces.

The Company is adjusting its revenue guidance for the full year of 2021 to a new range of $1.935 billion to $1.940 billion, representing growth of approximately 17% year-over-year at the midpoint of the range. The new guidance includes a reduction in expected revenue from Multifamily which is partially offset by stronger expected revenue from CoStar. Revenue for the fourth quarter of 2021 is expected to be in the range of $498 million to $503 million, representing year-over-year revenue growth of approximately 13% at the midpoint of the range.

The Company is raising its adjusted EBITDA guidance for the full year of 2021 to a new range of $615 million to $620 million, representing growth of approximately 12% at the midpoint of the range. For the fourth quarter of 2021, the Company expects adjusted EBITDA in a range of $161 million to $166 million.

The Company is raising its non-GAAP net income per diluted share guidance for full-year 2021 to a new range of $1.07 to $1.08 per share based on 394 million shares. For the fourth quarter of 2021, we expect non-GAAP net income per diluted share in a range of $0.29 to $0.30 per share based on 394 million shares. These ranges include an estimated non-GAAP tax rate of 25% for the full year and the fourth quarter of 2021.

The preceding forward-looking statements reflect CoStar Group’s expectations as of October 26, 2021, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations, and trends. Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, including uncertainties as a result of the COVID-19 pandemic and responses to it by, and the impact on, global economies and the commercial real estate industry, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.

Reconciliation of EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share to their GAAP basis results are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income, can be found within the tables included in this release.

Non-GAAP Financial Measures

For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refer to the Company’s latest periodic report.

EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before interest (expense) income and other (expense) income, loss on debt extinguishment, income taxes, depreciation and amortization.

Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, and settlements and impairments incurred outside the Company’s normal course of business.

Non-GAAP net income is a non-GAAP financial measure determined by adjusting GAAP net income attributable to CoStar Group for stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, settlement and impairment costs incurred outside the Company's normal course of business and loss on debt extinguishment, as well as amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. In 2021, the Company is assuming a 25% tax rate in order to approximate our statutory corporate tax rate excluding the impact of discrete items.

Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share. For periods with GAAP net losses and non-GAAP net income, the weighted average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.

Earnings Conference Call

Management will conduct a conference call to discuss third quarter 2021 results and the Company’s outlook at 5:00 PM EDT on Tuesday, October 26, 2021. A live audio webcast of the conference will be available in listen-only mode through the Investors section of the CoStar Group website: https://investors.costargroup.com. A replay of the webcast audio will also be available in the Investors section of our website for a period of time following the call.

CoStar Group, Inc.
Condensed Consolidated Statements of Operations - Unaudited
(in thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues	$	499,319	$	425,620	$	1,437,349	$	1,214,626
Cost of revenues	92,597		77,865		270,911		230,814
Gross profit	406,722		347,755		1,166,438		983,812

Operating expenses:
Selling and marketing (excluding customer base amortization)	180,055		146,634		483,354		402,202
Software development	53,143		40,732		148,500		121,343
General and administrative	64,671		65,322		186,747		181,598
Customer base amortization	19,121		18,258		55,885		44,677
	316,990		270,946		874,486		749,820

Income from operations	89,732		76,809		291,952		233,992
Interest expense, net	(7,943)		(7,537)		(23,698)		(9,482)
Other income (expense)	1,546		(338)		2,343		29
Income before income taxes	83,335		68,934		270,597		224,539
Income tax expense	19,031		10,748		70,933		33,200
Net income	$	64,304	$	58,186	$	199,664	$	191,339

Net income per share - basic⁽¹⁾	$	0.16	$	0.15	$	0.51	$	0.51
Net income per share - diluted⁽¹⁾	$	0.16	$	0.15	$	0.51	$	0.50

Weighted-average outstanding shares - basic⁽¹⁾	392,419		391,586		392,101		377,177
Weighted-average outstanding shares - diluted⁽¹⁾	394,295		394,013		394,036		379,704
__________________________
⁽¹⁾Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures - Unaudited
(in thousands, except per share data)

Reconciliation of Net Income to Non-GAAP Net Income

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Net income	$	64,304		$	58,186		$	199,664		$	191,339
Income tax expense	19,031			10,748			70,933			33,200
Income before income taxes	83,335			68,934			270,597			224,539
Amortization of acquired intangible assets	26,330			24,870			77,450			63,348
Stock-based compensation expense	16,299			16,730			46,988			41,437
Acquisition and integration related costs	5,012			7,887			15,475			26,631
Restructuring and related costs	—			413			—			413
Other expense	934			113			2,791			113
Non-GAAP income before income taxes	131,910			118,947			413,301			356,481
Assumed rate for income tax expense⁽¹⁾	25		%	25		%	25		%	25		%
Assumed provision for income tax expense	(32,978)			(29,737)			(103,325)			(89,120)
Non-GAAP net income	$	98,932		$	89,210		$	309,976		$	267,361

Net income per share - diluted⁽²⁾	$	0.16		$	0.15		$	0.51		$	0.50
Non-GAAP net income per share - diluted⁽²⁾	$	0.25		$	0.23		$	0.79		$	0.70

Weighted average outstanding shares - basic⁽²⁾	392,419			391,586			392,101			377,177
Weighted average outstanding shares - diluted⁽²⁾	394,295			394,013			394,036			379,704
__________________________
⁽¹⁾A 25% tax rate is assumed for 2021 and 2020, which approximates our statutory federal and state corporate tax rate.
⁽²⁾ Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Net income	$	64,304		$	58,186		$	199,664		$	191,339
Amortization of acquired intangible assets in cost of revenues	7,209			6,612			21,565			18,671
Amortization of acquired intangible assets in operating expenses	19,121			18,258			55,885			44,677
Depreciation and other amortization	6,610			6,806			22,138			20,563
Interest expense	7,943			7,537			23,698			9,482
Other (income) expense	(1,546)			338			(2,343)			(29)
Income tax expense	19,031			10,748			70,933			33,200
EBITDA	$	122,672		$	108,485		$	391,540		$	317,903
Stock-based compensation expense	16,299			16,730			46,988			41,437
Acquisition and integration related costs	5,012			7,887			15,475			26,631
Restructuring and related costs	—			413			—			413
Adjusted EBITDA	$	143,983		$	133,515		$	454,003		$	386,384

CoStar Group, Inc.
Condensed Consolidated Balance Sheets - Unaudited
(in thousands)

	September 30, 2021		December 31, 2020
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	3,761,587	$	3,755,912
Accounts receivable	128,700		119,059
Less: Allowance for credit losses	(13,049)		(15,110)
Accounts receivable, net	115,651		103,949
Prepaid expenses and other current assets	37,599		28,651
Total current assets	3,914,837		3,888,512

Deferred income taxes, net	1,975		4,983
Property and equipment, net	238,866		126,325
Lease right-of-use assets	105,964		108,740
Goodwill	2,293,514		2,235,999
Intangible assets, net	447,900		426,745
Deferred commission costs, net	96,303		93,274
Deposits and other assets	16,971		15,856
Income tax receivable	14,986		14,986
Total assets	$	7,131,316	$	6,915,420
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	17,487	$	15,732
Accrued wages and commissions	82,905		80,998
Accrued expenses	86,788		110,305
Income taxes payable	11,828		16,316
Lease liabilities	29,878		32,648
Deferred revenue	92,631		74,851
Total current liabilities	321,517		330,850

Long-term debt, net	987,633		986,715
Deferred income taxes, net	83,399		72,991
Income taxes payable	26,188		25,282
Lease and other long-term liabilities	109,156		124,223
Total liabilities	$	1,527,893	$	1,540,061

Total stockholders’ equity	5,603,423		5,375,359
Total liabilities and stockholders’ equity	$	7,131,316	$	6,915,420

CoStar Group, Inc.
Condensed Consolidated Statements of Cash Flows - Unaudited
(in thousands)

	Nine Months Ended September 30,
	2021		2020
Operating activities:
Net income	$	199,664	$	191,339
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	102,390		83,911
Amortization of deferred commissions costs	46,728		45,017
Amortization of Senior Notes discount and issuance costs	1,742		1,082
Non-cash lease expense	21,118		18,801
Stock-based compensation expense	46,988		40,783
Deferred income taxes, net	16,255		6,812
Credit loss expense	7,797		21,395
Other operating activities, net	10		(12)

Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(17,715)		(34,131)
Prepaid expenses and other current assets	(18,820)		4,145
Deferred commissions	(49,798)		(48,704)
Accounts payable and other liabilities	(27,912)		47,341
Lease liabilities	(23,596)		(21,247)
Income taxes payable	(3,583)		(9,838)
Deferred revenue	15,800		7,123
Other assets	2,150		1,521
Net cash provided by operating activities	319,218		355,338

Investing activities:
Proceeds from sale and settlement of investments	—		10,259
Proceeds from sale of property and equipment and other assets	245		—
Purchase of Richmond assets and other intangibles	(123,623)		—
Purchases of property and equipment and other assets	(21,533)		(42,137)
Cash paid for acquisitions, net of cash acquired	(152,594)		(192,002)
Net cash used in investing activities	(297,505)		(223,880)

Financing activities:
Proceeds from long-term debt	—		1,744,210
Payments of debt issuance costs	—		(15,747)
Payments of long-term debt	—		(745,000)
Repurchase of restricted stock to satisfy tax withholding obligations	(29,306)		(34,051)
Proceeds from equity offering, net of transaction costs	—		1,689,971
Proceeds from exercise of stock options and employee stock purchase plan	15,025		28,169
Other financing activities	(57)		(1,650)
Net cash (used in) provided by financing activities	(14,338)		2,665,902

Effect of foreign currency exchange rates on cash and cash equivalents	(1,700)		(286)
Net increase in cash, cash equivalents and restricted cash	5,675		2,797,074
Cash, cash equivalents and restricted cash at the beginning of period	3,755,912		1,070,731
Cash, cash equivalents and restricted cash at the end of period	$	3,761,587	$	3,867,805

CoStar Group, Inc.
Disaggregated Revenues - Unaudited
(in thousands)

	Three Months Ended September 30,
	2021						2020
	North America		International		Total		North America		International		Total
CoStar	$	174,071	$	9,194	$	183,265	$	158,235	$	7,753	$	165,988
Information Services	29,177		6,749		35,926		26,357		6,817		33,174
Multifamily	171,125		—		171,125		155,184		—		155,184
LoopNet⁽¹⁾	52,103		424		52,527		44,938		146		45,084
Residential⁽¹⁾	24,747		—		24,747		—		—		—
Other Marketplaces⁽¹⁾	31,729		—		31,729		26,190		—		26,190
Total revenues	$	482,952	$	16,367	$	499,319	$	410,904	$	14,716	$	425,620
__________________________
⁽¹⁾As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces.

	Nine Months Ended September 30,
	2021						2020
	North America		International		Total		North America		International		Total
CoStar	$	505,470	$	26,958	$	532,428	$	473,363	$	22,634	$	495,997
Information Services	84,959		20,820		105,779		77,069		19,023		96,092
Multifamily	508,629		—		508,629		438,185		—		438,185
LoopNet⁽¹⁾	151,770		1,082		152,852		131,348		256		131,604
Residential⁽¹⁾	53,939		—		53,939		—		—		—
Other Marketplaces⁽¹⁾	83,722		—		83,722		52,748		—		52,748
Total revenues	$	1,388,489	$	48,860	$	1,437,349	$	1,172,713	$	41,913	$	1,214,626
__________________________
⁽¹⁾As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces.

CoStar Group, Inc.
Results of Segments - Unaudited
(in thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
EBITDA
North America	$	119,823	$	107,906	$	385,857	$	322,611
International	2,849		579		5,683		(4,708)
Total EBITDA	$	122,672	$	108,485	$	391,540	$	317,903

CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures with 2020-2021 Quarterly Results - Unaudited
(in millions, except per share data)

Reconciliation of Net Income to Non-GAAP Net Income

	2020				2021
	Q1	Q2	Q3	Q4	Q1	Q2	Q3

Net income	$72.8	$60.4	$58.2	$35.8	$74.2	$61.1	$64.3
Income tax expense	5.6	16.9	10.7	10.7	19.1	32.8	19.0
Income before income taxes	78.4	77.3	68.9	46.4	93.3	93.9	83.3
Amortization of acquired intangible assets	17.5	21.0	24.9	24.8	25.8	25.3	26.3
Stock-based compensation expense	15.2	9.5	16.7	12.7	15.5	15.1	16.3
Acquisition and integration related costs	8.7	10.0	7.9	65.9	8.5	2.0	5.0
Restructuring and related costs	—	—	0.4	—	—	—	—
Other expense	—	—	0.1	—	1.1	0.8	0.9
Non-GAAP income before income taxes	119.8	117.8	118.9	149.8	144.2	137.1	131.8
Assumed rate for income tax expense ⁽¹⁾	25%	25%	25%	25%	25%	25%	25%
Assumed provision for income tax expense	(30.0)	(29.5)	(29.7)	(37.5)	(36.0)	(34.3)	(33.0)
Non-GAAP net income	$89.8	$88.3	$89.2	$112.3	$108.2	$102.8	$98.8

Non-GAAP net income per share - diluted⁽²⁾	$0.24	$0.23	$0.23	$0.29	$0.27	$0.26	$0.25

Weighted average outstanding shares - basic⁽²⁾	364.7	375.2	391.6	391.4	391.6	392.3	392.4
Weighted average outstanding shares - diluted⁽²⁾	367.8	377.3	394.0	394.0	393.7	394.1	394.3
__________________________
⁽¹⁾A 25% tax rate is assumed for 2021 and 2020, which approximates our statutory federal and state corporate tax rate.
⁽²⁾ Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

	2020				2021
	Q1	Q2	Q3	Q4	Q1	Q2	Q3

Net income	$72.8	$60.4	$58.2	$35.8	$74.2	$61.1	$64.3
Amortization of acquired intangible assets	17.5	21.0	24.9	24.8	25.8	25.3	26.3
Depreciation and other amortization	6.8	7.0	6.8	8.2	8.5	7.0	6.6
Interest (income) expense	(1.7)	3.6	7.5	7.9	7.9	7.9	7.9
Other (income) expense	(0.8)	0.4	0.3	0.9	0.1	(0.8)	(1.5)
Income tax expense	5.6	16.9	10.7	10.7	19.1	32.8	19.0
EBITDA	$100.2	$109.3	$108.4	$88.3	$135.6	$133.3	$122.6
Stock-based compensation expense	15.1	9.5	16.7	12.7	15.5	15.1	16.3
Acquisition and integration related costs	8.7	10.0	7.9	65.9	8.5	2.0	5.0
Restructuring and related costs	—	—	0.4	—	—	—	—
Adjusted EBITDA	$124.0	$128.8	$133.4	$166.9	$159.6	$150.4	$143.9

CoStar Group, Inc.
Reconciliation of Forward-Looking Guidance - Unaudited
(in thousands, except per share data)

Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income

	Guidance Range						Guidance Range
	For the Three Months						For the Year Ending
	Ending December 31, 2021						December 31, 2021
	Low			High			Low			High

Net income	$	76,000		$	80,000		$	276,000		$	280,000
Income tax expense	25,000			26,000			96,000			97,000
Income before income taxes	101,000			106,000			372,000			377,000
Amortization of acquired intangible assets	26,000			26,000			103,000			103,000
Stock-based compensation expense	17,000			17,000			64,000			64,000
Acquisition and integration related costs	2,000			2,000			17,000			17,000
Other expense	5,000			5,000			8,000			8,000
Non-GAAP income before income taxes	151,000			156,000			564,000			569,000
Assumed rate for income tax expense⁽¹⁾	25		%	25		%	25		%	25		%
Assumed provision for income tax expense	(37,800)			(39,000)			(141,000)			(142,300)
Non-GAAP net income	$	113,200		$	117,000		$	423,000		$	426,700

Net income per share - diluted⁽²⁾	$	0.19		$	0.20		$	0.70		$	0.71
Non-GAAP net income per share - diluted⁽²⁾	$	0.29		$	0.30		$	1.07		$	1.08

Weighted average outstanding shares - diluted⁽²⁾	394,400			394,400			394,000			394,000
__________________________
⁽¹⁾A 25% tax rate is assumed, which approximates our statutory federal and state corporate tax rate.
⁽²⁾ Prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.

Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA

	Guidance Range						Guidance Range
	For the Three Months						For the Year Ending
	Ending December 31, 2021						December 31, 2021
	Low			High			Low			High
Net income	$	76,000		$	80,000		$	276,000		$	280,000
Amortization of acquired intangible assets	26,000			26,000			103,000			103,000
Depreciation and other amortization	8,000			8,000			30,000			30,000
Interest expense	8,000			8,000			32,000			32,000
Other (income)	(1,000)			(1,000)			(3,000)			(3,000)
Income tax expense	25,000			26,000			96,000			97,000
Stock-based compensation expense	17,000			17,000			64,000			64,000
Acquisition and integration related costs	2,000			2,000			17,000			17,000
Adjusted EBITDA	$	161,000		$	166,000		$	615,000		$	620,000

About CoStar Group, Inc.

CoStar Group, Inc. (NASDAQ: CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality sector. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com offers real estate professionals advertising and marketing services for residential properties. Realla is the UK’s most comprehensive commercial property digital marketplace. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe, Canada and Asia with a staff of approximately 4,800 worldwide, including the industry’s largest professional research organization. For more information, visit www.costargroup.com.

This news release and the Company’s earnings conference call contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar Group's plans, objectives, expectations, beliefs and intentions and other statements including words such as “hope,” “anticipate,” “may,” “believe,” “expect,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar Group and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. The following factors, among others, could cause or contribute to such differences: the risk that the trends stated or implied by this release or in the earnings conference call cannot or will not be sustained at the current pace or may increase or decrease or expectations are not met, including trends and expectations related to revenue, net income, non-GAAP net income, EBITDA, adjusted EBITDA, adjusted EBITDA margin, gross margin, sales, net new bookings, site traffic and visitors, leads, and renewal rates; the risk that pricing adjustments for Apartments.com do not achieve the anticipated results, including capturing the value of the lead flow delivered; the risk that the Company is unable to sustain current revenue and earnings, including CoStar, Ten-X and Homesnap revenue growth rates or increase them; the risk that the Company is unable to sustain current CoStar net new bookings; the risk that revenues for the fourth quarter and full year 2021 will not be as stated in this press release; the risk that net income for the fourth quarter and full year 2021 will not be as stated in this press release; the risk that adjusted EBITDA for the fourth quarter and full year 2021 will not be as stated in this press release; the risk that non-GAAP net income and non-GAAP net income per diluted share for the fourth quarter and full year 2021 will not be as stated in this press release; the risk that the tax rate estimates stated in this press release may change; uncertainty surrounding the impact of the COVID-19 pandemic, including volatility in the international and U.S. economy and the commercial real estate industry, employee attrition, absenteeism or decreased productivity, quarantines or other travel or health-related restrictions; the length and severity of the COVID-19 pandemic; the pace of recovery following the COVID-19 pandemic; and government and private actions taken to control the spread of COVID-19. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar Group’s filings from time to time with the Securities and Exchange Commission, including in CoStar Group’s Annual Report on Form 10-K for the year ended December 31, 2020 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar Group’s other filings with the SEC (including Current Reports on Form 8-K) available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar Group on the date hereof, and CoStar Group assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211026006200/en/

Contacts

Investor Relations:

Bill Warmington

Vice President

CoStar Group Investor Relations

(202) 346-5661

wwarmington@costar.com

News Media:

Matthew Blocher

Vice President

CoStar Group Corporate Marketing & Communications

(202) 346-6775

mblocher@costargroup.com

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CoStar Group Third Quarter 2021 Revenue Increased 17% Year-over-Year, CoStar Accelerated to Double-Digit Revenue Growth with Net Sales Reaching All-Time High

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