CoStar Group First Quarter 2020 Revenues Increase 19% Year-over-Year, with Net Income of $73 Million, EBITDA of $100 Million, and Cash Position of $1.9 Billion

WASHINGTON--()--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 March 31, 2020, was $392 million, an increase of 19% over revenue of $328 million for the first quarter of 2019. Traffic to CoStar Group’s information and marketplace platforms, Apartments.com, CoStar, LoopNet, Lands of America, Realla, and Belbex reached record levels in the first quarter 2020 both individually and in aggregate with an average of 55 million total, monthly unique visitors, up from 49 million monthly unique visitors in the first quarter of 2019.

“We are pleased with our very strong results in the first quarter of 2020,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “As with every business, the COVID-19 pandemic has upended our normal operations. The pandemic hit operations in CoStar’s Beijing office first giving us advance warning and some time to prepare to transition 100% of our North American and European operations to 100% digital remote work. We believe that 95% of CoStar Group’s staff have successfully transitioned to working remotely over the past six weeks at 90% productivity. We believe that our products remain mission critical to the vast majority of our clients as they deal with pandemic driven market disruptions."

Florance continued, “We generated Company-wide net new sales bookings of $48 million in the first quarter of 2020, which is an outstanding achievement given the unprecedented events in March. Demonstrating the value of our marketplaces, LoopNet had its best sales quarter ever and Apartments.com turned in its second-best sales quarter ever. As a result, we were able to achieve overall revenue growth of 19% in the first quarter of 2020, with Apartments.com growing revenue 20% and LoopNet revenues up 23% year-over-year compared to the first quarter of 2019.”

Year 2019-2020 Quarterly Results - Unaudited

(in millions, except per share data)

 

 

2019

 

2020

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$328

 

$344

 

$353

 

$375

 

$392

Net income

 

85

 

63

 

79

 

88

 

73

Net income per share - diluted

 

2.33

 

1.73

 

2.15

 

2.39

 

1.98

Weighted average outstanding shares - diluted

 

36.6

 

36.6

 

36.7

 

36.7

 

36.8

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

113

 

94

 

113

 

125

 

100

Adjusted EBITDA

 

125

 

110

 

129

 

142

 

124

Non-GAAP net income

 

92

 

82

 

96

 

103

 

90

Non-GAAP net income per share - diluted

 

2.53

 

2.23

 

2.61

 

2.82

 

2.44

Net income for the first quarter of 2020 was $73 million or $1.98 per diluted share. EBITDA for the first quarter of 2020 was $100 million. Adjusted EBITDA (which excludes stock-based compensation, acquisition and integration related costs and other items as described below) for the first quarter of 2020 was $124 million.

Non-GAAP net income (which excludes amortization of acquired intangible assets, stock-based compensation and other items as described below) for the first quarter of 2020 was $90 million or $2.44 per diluted share.

On March 25, 2020 the Company borrowed $745 million under its revolving credit facility in order to provide increased liquidity and financial flexibility. As of March 31, 2020, the Company had approximately $1.9 billion in cash and cash equivalents, and $745 million in outstanding debt.

2020 Outlook

Due to the rapidly changing environment and continued uncertainty resulting from the global impact of the pandemic, we are withdrawing our previously announced guidance for the full year 2020, which was issued on February 25, 2020. The subscription nature of our business model allows for greater visibility to revenue in the near term within a reasonable range. Accordingly, we will only be providing guidance for the second quarter of 2020 at this time.

The Company expects revenue for the second quarter of 2020 in the range of $387 million to $392 million, representing revenue growth of 13% compared to the second quarter of 2019 at the midpoint of the range.

The Company expects adjusted EBITDA in a range of $110 million to $115 million for the second quarter of 2020, representing growth of 2% year-over-year at the midpoint of the range.

We expect second quarter 2020 non-GAAP net income per diluted share in a range of $2.02 to $2.12 based on 36.8 million shares. This range includes a non-GAAP tax rate of 25%.

The preceding forward-looking statements reflect CoStar Group’s expectations as of April 28, 2020, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations 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, 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 and other disclosed non-GAAP financial measures 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 and other income (expense), 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 for pending and completed acquisitions, 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 for pending and completed acquisitions, 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 2020, 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 at 5:00 PM EDT on Tuesday, April 28, 2020 to discuss earnings results for the first quarter 2020 and the Company’s outlook. The audio portion of the conference call will be broadcast live over the Internet at investors.costargroup.com. To join the conference call by telephone, please dial (866) 627-4249 (from the United States and Canada) or (825) 312-2385 (from all other countries) and refer to access code 1928919. The webcast replay will also be available in the Investor section of CoStar Group's 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
March 31,

 

 

2020

 

2019

 

 

 

 

 

Revenues

 

$

391,847

 

 

$

328,425

 

Cost of revenues

 

78,909

 

 

71,153

 

Gross profit

 

312,938

 

 

257,272

 

 

 

 

 

 

Operating expenses:

 

 

 

 

Selling and marketing (excluding customer base amortization)

 

125,107

 

 

88,094

 

Software development

 

41,610

 

 

27,928

 

General and administrative

 

58,873

 

 

40,076

 

Customer base amortization

 

11,484

 

 

7,682

 

 

 

237,074

 

 

163,780

 

 

 

 

 

 

Income from operations

 

75,864

 

 

93,492

 

Interest and other income

 

4,518

 

 

4,945

 

Interest and other expense

 

(2,026

)

 

(732

)

Income before income taxes

 

78,356

 

 

97,705

 

Income tax expense

 

5,563

 

 

12,536

 

Net income

 

$

72,793

 

 

$

85,169

 

 

 

 

 

 

Net income per share - basic

 

$

2.00

 

 

$

2.35

 

Net income per share - diluted

 

$

1.98

 

 

$

2.33

 

 

 

 

 

 

Weighted average outstanding shares - basic

 

36,471

 

 

36,237

 

Weighted average outstanding shares - diluted

 

36,776

 

 

36,567

 

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
March 31,

 

 

2020

 

2019

Net income

 

$

72,793

 

 

$

85,169

 

Income tax expense

 

5,563

 

 

12,536

 

Income before income taxes

 

78,356

 

 

97,705

 

Amortization of acquired intangible assets

 

17,489

 

 

13,195

 

Stock-based compensation expense

 

15,180

 

 

12,029

 

Acquisition and integration related costs

 

8,713

 

 

249

 

Restructuring and related costs

 

 

 

68

 

Non-GAAP income before income taxes

 

119,738

 

 

123,246

 

Assumed rate for income tax expense *

 

25

%

 

25

%

Assumed provision for income tax expense

 

(29,935

)

 

(30,812

)

Non-GAAP net income

 

$

89,804

 

 

$

92,434

 

 

 

 

 

 

Net income per share - diluted

 

$

1.98

 

 

$

2.33

 

Non-GAAP net income per share - diluted

 

$

2.44

 

 

$

2.53

 

 

 

 

 

 

Weighted average outstanding shares - basic

 

36,471

 

 

36,237

 

Weighted average outstanding shares - diluted

 

36,776

 

 

36,567

 

 

 

 

 

 

* A 25% tax rate is assumed for 2020 and 2019, which approximates our statutory corporate tax rate.

 

 

 

 

 

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 

 

Three Months Ended
March 31,

 

 

2020

 

2019

Net income

 

$

72,793

 

 

$

85,169

 

Amortization of acquired intangible assets in cost of revenues

 

6,005

 

 

5,513

 

Amortization of acquired intangible assets in operating expenses

 

11,484

 

 

7,682

 

Depreciation and other amortization

 

6,767

 

 

6,464

 

Interest and other income

 

(4,518

)

 

(4,945

)

Interest and other expense

 

2,026

 

 

732

 

Income tax expense

 

5,563

 

 

12,536

 

EBITDA

 

$

100,120

 

 

$

113,151

 

Stock-based compensation expense

 

15,180

 

 

12,029

 

Acquisition and integration related costs

 

8,713

 

 

249

 

Restructuring and related costs

 

 

 

68

 

Adjusted EBITDA

 

$

124,013

 

 

$

125,497

 

CoStar Group, Inc.

Condensed Consolidated Balance Sheets - Unaudited

(in thousands)

 

 

 

 

 

 

 

March 31,
2020

 

December 31,
2019

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash, cash equivalents and restricted cash

 

$

1,927,923

 

 

$

1,070,731

 

Accounts receivable

 

120,559

 

 

96,788

 

Less: Allowance for credit losses

 

(8,311

)

 

(4,548

)

Accounts receivable, net

 

112,248

 

 

92,240

 

Prepaid expenses and other current assets

 

30,219

 

 

36,194

 

Total current assets

 

2,070,390

 

 

1,199,165

 

 

 

 

 

 

Long-term investments

 

 

 

10,070

 

Deferred income taxes, net

 

4,762

 

 

5,408

 

Property and equipment, net

 

106,409

 

 

107,529

 

Lease right-of-use assets

 

112,811

 

 

115,084

 

Goodwill

 

1,873,987

 

 

1,882,020

 

Intangible assets, net

 

400,689

 

 

421,196

 

Deferred commission costs, net

 

91,000

 

 

89,374

 

Deposits and other assets

 

9,743

 

 

9,232

 

Income tax receivable

 

14,806

 

 

14,908

 

Total assets

 

$

4,684,597

 

 

$

3,853,986

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

22,486

 

 

$

7,640

 

Accrued wages and commissions

 

49,302

 

 

53,087

 

Accrued expenses

 

40,310

 

 

38,680

 

Income taxes payable

 

12,183

 

 

10,705

 

Lease liabilities

 

27,681

 

 

29,670

 

Deferred revenue

 

84,717

 

 

67,274

 

Total current liabilities

 

236,679

 

 

207,056

 

 

 

 

 

 

Long-term debt

 

745,000

 

 

 

Deferred income taxes, net

 

88,799

 

 

87,096

 

Income taxes payable

 

20,611

 

 

20,521

 

Lease and other long-term liabilities

 

130,697

 

 

133,720

 

Total liabilities

 

$

1,221,786

 

 

$

448,393

 

 

 

 

 

 

Total stockholders’ equity

 

3,462,811

 

 

3,405,593

 

Total liabilities and stockholders’ equity

 

$

4,684,597

 

 

$

3,853,986

 

CoStar Group, Inc.

Condensed Consolidated Statements of Cash Flows - Unaudited

(in thousands)

 

 

 

Three Months Ended
March 31,

 

2020

 

2019

Operating activities:

 

 

 

Net income

$

72,793

 

 

$

85,169

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

24,256

 

 

19,659

 

Amortization of deferred commissions costs

14,747

 

 

12,407

 

Amortization of debt issuance costs

292

 

 

219

 

Realized loss on investments

541

 

 

 

Non-cash lease expense

6,261

 

 

5,197

 

Stock-based compensation expense

15,180

 

 

12,029

 

Deferred income taxes, net

2,825

 

 

3,702

 

Credit loss expense

6,183

 

 

2,185

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

(26,613

)

 

(5,835

)

Income taxes payable

1,624

 

 

8,311

 

Prepaid expenses and other current assets

1,838

 

 

206

 

Deferred commissions

(16,523

)

 

(13,729

)

Other assets

1,215

 

 

(59

)

Accounts payable and other liabilities

15,564

 

 

15,068

 

Lease liabilities

(6,967

)

 

(4,743

)

Deferred revenue

18,248

 

 

8,708

 

Net cash provided by operating activities

131,464

 

 

148,494

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale and settlement of investments

10,259

 

 

 

Purchases of property and equipment and other assets

(7,133

)

 

(9,429

)

Cash paid for acquisitions, net of cash acquired

(432

)

 

 

Net cash provided by (used in) investing activities

2,694

 

 

(9,429

)

 

 

 

 

Financing activities:

 

 

 

Proceeds from long-term debt

745,000

 

 

 

Repurchase of restricted stock to satisfy tax withholding obligations

(30,144

)

 

(18,679

)

Proceeds from exercise of stock options and employee stock purchase plan

10,295

 

 

12,061

 

Net cash provided by (used in) financing activities

725,151

 

 

(6,618

)

 

 

 

 

Effect of foreign currency exchange rates on cash and cash equivalents

(2,117

)

 

(46

)

Net increase in cash, cash equivalents and restricted cash

857,192

 

 

132,401

 

Cash, cash equivalents and restricted cash at the beginning of period

1,070,731

 

 

1,100,416

 

Cash, cash equivalents and restricted cash at the end of period

$

1,927,923

 

 

$

1,232,817

 

CoStar Group, Inc.

Disaggregated Revenues - Unaudited

(in thousands)

 

 

 

Three Months Ended March 31,

 

2020

 

2019

 

North America

 

International

 

Total

 

North America

 

International

 

Total

Information and analytics

 

 

 

 

 

 

 

 

 

 

 

CoStar Suite

$

157,335

 

 

$

7,621

 

 

$

164,956

 

 

$

140,973

 

 

$

6,728

 

 

$

147,701

 

Information services

25,690

 

 

6,692

 

 

32,382

 

 

16,591

 

 

2,259

 

 

18,850

 

Online marketplaces

 

 

 

 

 

 

 

 

 

 

 

Multifamily

137,460

 

 

 

 

137,460

 

 

114,268

 

 

 

 

114,268

 

Commercial property and land

56,962

 

 

87

 

 

57,049

 

 

47,405

 

 

201

 

 

47,606

 

Total revenues

$

377,447

 

 

$

14,400

 

 

$

391,847

 

 

$

319,237

 

 

$

9,188

 

 

$

328,425

 

CoStar Group, Inc.

Results of Segments - Unaudited

(in thousands)

 

 

 

 

 

Three Months Ended
March 31,

 

2020

 

2019

EBITDA

 

 

 

North America

$

102,413

 

 

$

115,268

 

International

(2,293

)

 

(2,117

)

Total EBITDA

$

100,120

 

 

$

113,151

 

CoStar Group, Inc.

Reconciliation of Non-GAAP Financial Measures with 2019-2020 Quarterly Results - Unaudited

(in millions, except per share data)

 

 

 

 

 

 

 

 

Reconciliation of Net Income to Non-GAAP Net Income

 

 

 

 

 

 

 

 

 

 

2019

 

2020

 

 

Q1

Q2

Q3

Q4

 

Q1

 

 

 

 

 

 

 

 

Net income

 

$85.2

$63.2

$78.6

$87.9

 

$72.8

Income tax expense

 

12.5

16.8

20.3

26.4

 

5.6

Income before income taxes

 

97.7

80.0

98.9

114.3

 

78.4

Amortization of acquired intangible assets

 

13.2

12.2

12.5

17.4

 

17.5

Stock-based compensation expense

 

12.0

13.8

13.1

13.3

 

15.2

Acquisition and integration related costs

 

0.2

0.5

2.3

3.7

 

8.7

Restructuring and related costs

 

0.1

2.2

0.8

 

Settlements and impairments

 

(10.8)

 

Non-GAAP income before income taxes

 

123.2

108.7

127.6

137.9

 

119.8

Assumed rate for income tax expense *

 

25%

25%

25%

25%

 

25%

Assumed provision for income tax expense

 

(30.8)

(27.2)

(31.9)

(34.5)

 

(30.0)

Non-GAAP net income

 

$92.4

$81.5

$95.7

$103.4

 

$89.8

 

 

 

 

 

 

 

 

Non-GAAP net income per share - diluted

 

$2.53

$2.23

$2.61

$2.82

 

$2.44

 

 

 

 

 

 

 

 

Weighted average outstanding shares - basic

 

36.2

36.3

36.3

36.4

 

36.5

Weighted average outstanding shares - diluted

 

36.6

36.6

36.7

36.7

 

36.8

 

 

 

 

 

 

 

 

* A 25% tax rate is assumed for 2020 and 2019, which approximates our statutory corporate tax rate.

 

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

2019

 

2020

 

 

Q1

Q2

Q3

Q4

 

Q1

 

 

 

 

 

 

 

 

Net income

 

$85.2

$63.2

$78.6

$87.9

 

$72.8

Amortization of acquired intangible assets

 

13.2

12.2

12.5

17.4

 

17.5

Depreciation and other amortization

 

6.5

6.5

6.3

6.5

 

6.8

Interest and other income

 

(4.9)

(5.9)

(5.4)

(13.8)

 

(4.5)

Interest and other expense

 

0.7

0.7

0.7

0.5

 

2.0

Income tax expense

 

12.5

16.8

20.3

26.4

 

5.6

EBITDA

 

$113.2

$93.5

$113.0

$124.9

 

$100.2

Stock-based compensation expense

 

12.0

13.8

13.1

13.3

 

15.1

Acquisition and integration related costs

 

0.2

0.5

2.3

3.7

 

8.7

Restructuring and related costs

 

0.1

2.2

0.8

 

Adjusted EBITDA

 

$125.5

$110.0

$129.2

$141.9

 

$124.0

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 

 

For the Three Months 

 

Ended June 30, 2020

 

Low

 

High

 

 

 

 

Net income

$

44,000

 

 

$

51,000

 

Income tax expense

13,000

 

 

13,000

 

Income before income taxes

57,000

 

 

64,000

 

Amortization of acquired intangible assets

18,000

 

 

18,000

 

Stock-based compensation expense

16,000

 

 

15,000

 

Acquisition and integration related costs

8,000

 

 

7,000

 

Non-GAAP income before income taxes

99,000

 

 

104,000

 

Assumed rate for income tax expense *

25

%

 

25

%

Assumed provision for income tax expense

(24,800

)

 

(26,000

)

Non-GAAP net income

$

74,200

 

 

$

78,000

 

 

 

 

 

Net income per share - diluted

$

1.20

 

 

$

1.39

 

Non-GAAP net income per share - diluted

$

2.02

 

 

$

2.12

 

 

 

 

 

Weighted average outstanding shares - diluted

36,800

 

 

36,800

 

 

 

 

 

* A 25% tax rate is assumed, which approximates our statutory corporate tax rate.

 

 

 

 

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

 

 

 

Guidance Range

 

For the Three Months

 

Ended June 30, 2020

 

Low

 

High

Net income

$

44,000

 

 

$

51,000

 

Amortization of acquired intangible assets

18,000

 

 

18,000

 

Depreciation and other amortization

7,000

 

 

7,000

 

Interest and other expense, net

4,000

 

 

4,000

 

Income tax expense

13,000

 

 

13,000

 

Stock-based compensation expense

16,000

 

 

15,000

 

Acquisition and integration related costs

8,000

 

 

7,000

 

Adjusted EBITDA

$

110,000

 

 

$

115,000

 

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. LoopNet is the most heavily trafficked commercial real estate marketplace online with over 6 million monthly unique visitors. Realla is the UK’s most comprehensive commercial property digital marketplace. 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. CoStar Group’s websites attracted an average of approximately 55 million unique monthly visitors in aggregate in the first quarter of 2020. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe, Canada and Asia with a staff of over 4,200 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'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 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: uncertainty surrounding the impact of the COVID-19 outbreak, including volatility in the international and U.S. economy, worker absenteeism, quarantines or other travel or health-related restrictions; the length and severity of the COVID-19 outbreak; the pace of recovery following the COVID-19 outbreak; government and private actions taken to control the spread of COVID-19; 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, including trends related to revenue, net income, non-GAAP net income, EBITDA, adjusted EBITDA, unique visitors, net new sales bookings and renewal rates; the risk that the Company is unable to sustain current revenue, earnings and net new sales bookings growth rates or increase them; the risk that revenues for the second quarter 2020 will not be as stated in this press release; the risk that net income for the second quarter 2020 will not be as stated in this press release; the risk that adjusted EBITDA for the second quarter 2020 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 second quarter 2020 will not be as stated in this press release; the risk that the tax rate estimate stated in this press release is incorrect or may change; the possibility that the Company’s investment plans or strategy may change; and the possibility that the acquisition of RentPath does not close when expected or at all. 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’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2019, which is filed with the SEC, including in the “Risk Factors” section of that filing, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Scott Wheeler
Chief Financial Officer
(202) 336-6920
swheeler@costar.com

Sarah Spray
Vice President
Investor Relations
(202) 346-6394
sspray@costar.com

Contacts

Scott Wheeler
Chief Financial Officer
(202) 336-6920
swheeler@costar.com

Sarah Spray
Vice President
Investor Relations
(202) 346-6394
sspray@costar.com