WASHINGTON–(BUSINESS WIRE)–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, 2021, was $458 million, an increase of 17% over revenue of $392 million for the first quarter of 2020.
Net income for the first quarter of 2021 was $74 million, or $1.88 per diluted share. Non-GAAP net income for the first quarter of 2021 (which excludes amortization of acquired intangible assets, stock-based compensation, and other items as described below) was $108 million or $2.75 per diluted share, an increase of $18 million or 20% versus the first quarter of 2020.
EBITDA for the first quarter of 2021 was $136 million, an increase of 35% versus EBITDA of $100 million for the first quarter of 2020. Adjusted EBITDA (which excludes stock-based compensation, acquisition and integration related costs and other items as described below) for the first quarter of 2021 was $160 million, an increase of 29% compared to adjusted EBITDA of $124 million for the first quarter of 2020.
“Our business delivered a strong start to 2021, with revenue and profit ahead of forecast and record numbers of visitors to our platforms in the first quarter of the year,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “Our sales team generated $52 million in company-wide net new bookings in the first quarter of 2021, an increase of 10% year-over-year. CoStar Suite net new bookings in the first quarter increased 77% year-over-year, with both net new sales and renewal rates returning to the levels we achieved in 2019, prior to the pandemic. We expect this positive momentum to continue during the remainder of 2021, supported by the recent addition of both Commercial Mortgage-Backed Securities data and STR hospitality data in CoStar Suite, and the launch of the new CoStar international version earlier this month.”
“Our marketplace businesses, along with Ten-X, also delivered very strong year-over-year results in the first quarter,” continued Florance. “Apartments.com revenue increased 21%, network visitors were up 35%, and quality leads to our customers grew 63%. LoopNet and Ten-X continued to gain traction as our new marketing campaigns increased awareness and site traffic. Unique visitors to our LoopNet network increased 34% and LoopNet Signature Ads revenue grew 50% in the first quarter of 2021 compared to the first quarter of 2020. Ten-X’s unique monthly visitors rose 45% sequentially in what is typically a seasonally slow quarter, and the average number of bidders per auction grew 68% year-over-year.”
“We were excited to have the Homesnap team join us at the end of 2020,” noted Florance. “The business performed well in the first quarter of 2021, growing pro forma revenue by over 40% year-over-year as paid subscribers more than doubled and subscription revenue grew by 68%.”
|
Year 2020-2021 Quarterly Results – Unaudited |
||||||||||
|
(in millions, except per share data) |
||||||||||
|
|
2020 |
|
2021 |
|||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$392 |
|
$397 |
|
$426 |
|
$444 |
|
$458 |
|
|
Net income |
73 |
|
60 |
|
58 |
|
36 |
|
74 |
|
|
Net income per share – diluted |
1.98 |
|
1.60 |
|
1.48 |
|
0.91 |
|
1.88 |
|
|
Weighted average outstanding shares – diluted |
36.8 |
|
37.7 |
|
39.4 |
|
39.4 |
|
39.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
100 |
|
109 |
|
108 |
|
88 |
|
136 |
|
|
Adjusted EBITDA |
124 |
|
129 |
|
134 |
|
167 |
|
160 |
|
|
Non-GAAP net income |
90 |
|
88 |
|
89 |
|
112 |
|
108 |
|
|
Non-GAAP net income per share – diluted |
2.44 |
|
2.34 |
|
2.26 |
|
2.85 |
|
2.75 |
|
As of March 31, 2021, the Company had approximately $3.7 billion in cash, cash equivalents and long-term investments and outstanding debt of approximately $987 million.
2021 Outlook
The Company is raising its revenue guidance for the full year of 2021 to a new range of $1.930 billion to $1.945 billion, representing growth of approximately 17% year-over-year at the midpoint of the range. Revenue for the second quarter of 2021 is expected to be in the range of $465 million to $470 million, representing revenue growth of approximately 18% over the second quarter of 2020 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 $645 million to $655 million, representing growth of approximately 18% year-over-year at the midpoint of the range. For the second quarter of 2021, the Company expects adjusted EBITDA in a range of $130 million to $135 million.
The Company is raising its non-GAAP net income per diluted share guidance for full-year 2021 from a range of $10.83 to $11.03 to a new range of $11.20 to $11.40 per share, based on 39.5 million shares. The new range represents an increase of $0.37 at the midpoint versus the previously provided outlook. For the second quarter of 2021, we expect non-GAAP net income per diluted share in a range of $2.22 to $2.32 based on 39.4 million shares. These ranges include an estimated non-GAAP tax rate of 25% for the full year and the second quarter of 2021. The 2021 outlook does not include estimates of results for the pending Homes.com acquisition.
The preceding forward-looking statements reflect CoStar Group’s expectations as of April 27, 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 first quarter 2021 results and the Company’s outlook at 5:00 PM EDT on Tuesday, April 27, 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 |
||||||
|
|
|
2021 |
|
2020 |
||||
|
Revenues |
|
$ |
457,697 |
|
|
$ |
391,847 |
|
|
Cost of revenues |
|
88,748 |
|
|
78,909 |
|
||
|
Gross profit |
|
368,949 |
|
|
312,938 |
|
||
|
|
|
|
|
|
||||
|
Operating expenses: |
|
|
|
|
||||
|
Selling and marketing (excluding customer base amortization) |
|
138,687 |
|
|
125,107 |
|
||
|
Software development |
|
46,784 |
|
|
41,610 |
|
||
|
General and administrative |
|
63,850 |
|
|
58,873 |
|
||
|
Customer base amortization |
|
18,419 |
|
|
11,484 |
|
||
|
|
|
267,740 |
|
|
237,074 |
|
||
|
|
|
|
|
|
||||
|
Income from operations |
|
101,209 |
|
|
75,864 |
|
||
|
Interest (expense) income |
|
(7,878 |
) |
|
1,651 |
|
||
|
Other (expense) income |
|
(50 |
) |
|
841 |
|
||
|
Income before income taxes |
|
93,281 |
|
|
78,356 |
|
||
|
Income tax expense |
|
19,069 |
|
|
5,563 |
|
||
|
Net income |
|
$ |
74,212 |
|
|
$ |
72,793 |
|
|
|
|
|
|
|
||||
|
Net income per share – basic |
|
$ |
1.90 |
|
|
$ |
2.00 |
|
|
Net income per share – diluted |
|
$ |
1.88 |
|
|
$ |
1.98 |
|
|
|
|
|
|
|
||||
|
Weighted-average outstanding shares – basic |
|
39,158 |
|
|
36,471 |
|
||
|
Weighted-average outstanding shares – diluted |
|
39,371 |
|
|
36,776 |
|
||
|
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 |
||||||
|
|
|
2021 |
|
2020 |
||||
|
Net income |
|
$ |
74,212 |
|
|
$ |
72,793 |
|
|
Income tax expense |
|
19,069 |
|
|
5,563 |
|
||
|
Income before income taxes |
|
93,281 |
|
|
78,356 |
|
||
|
Amortization of acquired intangible assets |
|
25,827 |
|
|
17,489 |
|
||
|
Stock-based compensation expense |
|
15,545 |
|
|
15,180 |
|
||
|
Acquisition and integration related costs |
|
8,462 |
|
|
8,713 |
|
||
|
Other expense |
|
1,071 |
|
|
— |
|
||
|
Non-GAAP income before income taxes |
|
144,186 |
|
|
119,738 |
|
||
|
Assumed rate for income tax expense * |
|
25 |
% |
|
25 |
% |
||
|
Assumed provision for income tax expense |
|
(36,047 |
) |
|
(29,935 |
) |
||
|
Non-GAAP net income |
|
$ |
108,139 |
|
|
$ |
89,803 |
|
|
|
|
|
|
|
||||
|
Net income per share – diluted |
|
$ |
1.88 |
|
|
$ |
1.98 |
|
|
Non-GAAP net income per share – diluted |
|
$ |
2.75 |
|
|
$ |
2.44 |
|
|
|
|
|
|
|
||||
|
Weighted average outstanding shares – basic |
|
39,158 |
|
|
36,471 |
|
||
|
Weighted average outstanding shares – diluted |
|
39,371 |
|
|
36,776 |
|
||
|
|
|
|
|
|
||||
|
* A 25% tax rate is assumed for 2021 and 2020, which approximates our statutory federal and state corporate tax rate |
||||||||
|
|
|
|
|
|
||||
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||||
|
|
|
|
|
|
||||
|
|
|
Three Months Ended |
||||||
|
|
|
2021 |
|
2020 |
||||
|
Net income |
|
$ |
74,212 |
|
|
$ |
72,793 |
|
|
Amortization of acquired intangible assets in cost of revenues |
|
7,408 |
|
|
6,005 |
|
||
|
Amortization of acquired intangible assets in operating expenses |
|
18,419 |
|
|
11,484 |
|
||
|
Depreciation and other amortization |
|
8,500 |
|
|
6,767 |
|
||
|
Interest expense (income) |
|
7,878 |
|
|
(1,651 |
) |
||
|
Other expense (income) |
|
50 |
|
|
(841 |
) |
||
|
Income tax expense |
|
19,069 |
|
|
5,563 |
|
||
|
EBITDA |
|
$ |
135,536 |
|
|
$ |
100,120 |
|
|
Stock-based compensation expense |
|
15,545 |
|
|
15,180 |
|
||
|
Acquisition and integration related costs |
|
8,462 |
|
|
8,713 |
|
||
|
Adjusted EBITDA |
|
$ |
159,543 |
|
|
$ |
124,013 |
|
|
CoStar Group, Inc. |
||||||||
|
Condensed Consolidated Balance Sheets – Unaudited |
||||||||
|
(in thousands) |
||||||||
|
|
|
|
|
|
||||
|
|
|
March 31, |
|
December 31, |
||||
|
ASSETS |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash, cash equivalents and restricted cash |
|
$ |
3,690,296 |
|
|
$ |
3,755,912 |
|
|
Accounts receivable |
|
124,361 |
|
|
119,059 |
|
||
|
Less: Allowance for credit losses |
|
(14,563 |
) |
|
(15,110 |
) |
||
|
Accounts receivable, net |
|
109,798 |
|
|
103,949 |
|
||
|
Prepaid expenses and other current assets |
|
22,233 |
|
|
28,651 |
|
||
|
Total current assets |
|
3,822,327 |
|
|
3,888,512 |
|
||
|
|
|
|
|
|
||||
|
Deferred income taxes, net |
|
3,633 |
|
|
4,983 |
|
||
|
Property and equipment, net |
|
239,480 |
|
|
126,325 |
|
||
|
Lease right-of-use assets |
|
90,949 |
|
|
108,740 |
|
||
|
Goodwill |
|
2,210,976 |
|
|
2,235,999 |
|
||
|
Intangible assets, net |
|
450,341 |
|
|
426,745 |
|
||
|
Deferred commission costs, net |
|
93,056 |
|
|
93,274 |
|
||
|
Deposits and other assets |
|
16,223 |
|
|
15,856 |
|
||
|
Income tax receivable |
|
14,986 |
|
|
14,986 |
|
||
|
Total assets |
|
$ |
6,941,971 |
|
|
$ |
6,915,420 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Accounts payable |
|
$ |
16,870 |
|
|
$ |
15,732 |
|
|
Accrued wages and commissions |
|
68,590 |
|
|
80,998 |
|
||
|
Accrued expenses |
|
58,290 |
|
|
110,305 |
|
||
|
Income taxes payable |
|
28,757 |
|
|
16,316 |
|
||
|
Lease liabilities |
|
27,932 |
|
|
32,648 |
|
||
|
Deferred revenue |
|
89,696 |
|
|
74,851 |
|
||
|
Total current liabilities |
|
290,135 |
|
|
330,850 |
|
||
|
|
|
|
|
|
||||
|
Long-term debt, net |
|
987,018 |
|
|
986,715 |
|
||
|
Deferred income taxes, net |
|
86,081 |
|
|
72,991 |
|
||
|
Income taxes payable |
|
25,387 |
|
|
25,282 |
|
||
|
Lease and other long-term liabilities |
|
106,425 |
|
|
124,223 |
|
||
|
Total liabilities |
|
$ |
1,495,046 |
|
|
$ |
1,540,061 |
|
|
|
|
|
|
|
||||
|
Total stockholders’ equity |
|
5,446,925 |
|
|
5,375,359 |
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
6,941,971 |
|
|
$ |
6,915,420 |
|
|
CoStar Group, Inc. |
||||||||
|
Condensed Consolidated Statements of Cash Flows – Unaudited |
||||||||
|
(in thousands) |
||||||||
|
|
|
|||||||
|
|
Three Months Ended |
|||||||
|
|
2021 |
|
2020 |
|||||
|
Operating activities: |
|
|
|
|||||
|
Net income |
$ |
74,212 |
|
|
$ |
72,793 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||||
|
Depreciation and amortization |
35,410 |
|
|
24,256 |
|
|||
|
Amortization of deferred commissions costs |
15,317 |
|
|
14,747 |
|
|||
|
Amortization of Senior Notes discount and issuance costs |
578 |
|
|
292 |
|
|||
|
Non-cash lease expense |
6,483 |
|
|
6,261 |
|
|||
|
Stock-based compensation expense |
15,545 |
|
|
15,180 |
|
|||
|
Deferred income taxes, net |
5,464 |
|
|
2,825 |
|
|||
|
Credit loss expense |
1,820 |
|
|
6,183 |
|
|||
|
Other operating activities, net |
(136 |
) |
|
541 |
|
|||
|
|
|
|
|
|||||
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|||||
|
Accounts receivable |
(7,609 |
) |
|
(26,613 |
) |
|||
|
Income taxes payable |
12,556 |
|
|
1,624 |
|
|||
|
Prepaid expenses and other current assets |
(2,823 |
) |
|
1,838 |
|
|||
|
Deferred commissions |
(15,078 |
) |
|
(16,523 |
) |
|||
|
Other assets |
2,273 |
|
|
1,215 |
|
|||
|
Accounts payable and other liabilities |
(63,051 |
) |
|
15,564 |
|
|||
|
Lease liabilities |
(7,788 |
) |
|
(6,967 |
) |
|||
|
Deferred revenue |
14,680 |
|
|
18,248 |
|
|||
|
Net cash provided by operating activities |
87,853 |
|
|
131,464 |
|
|||
|
|
|
|
|
|||||
|
Investing activities: |
|
|
|
|||||
|
Proceeds from sale and settlement of investments |
— |
|
|
10,259 |
|
|||
|
Purchase of Richmond assets |
(123,259 |
) |
|
— |
|
|||
|
Purchases of property and equipment and other assets |
(10,619 |
) |
|
(7,133 |
) |
|||
|
Cash paid for acquisitions, net of cash acquired |
(442 |
) |
|
(432 |
) |
|||
|
Net cash (used in) provided by investing activities |
(134,320 |
) |
|
2,694 |
|
|||
|
|
|
|
|
|||||
|
Financing activities: |
|
|
|
|||||
|
Proceeds from long-term debt |
— |
|
|
745,000 |
|
|||
|
Repurchase of restricted stock to satisfy tax withholding obligations |
(27,667 |
) |
|
(30,144 |
) |
|||
|
Proceeds from exercise of stock options and employee stock purchase plan |
9,124 |
|
|
10,295 |
|
|||
|
Net cash (used in) provided by financing activities |
(18,543 |
) |
|
725,151 |
|
|||
|
|
|
|
|
|||||
|
Effect of foreign currency exchange rates on cash and cash equivalents |
(606 |
) |
|
(2,117 |
) |
|||
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
(65,616 |
) |
|
857,192 |
|
|||
|
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 |
$ |
3,690,296 |
|
|
$ |
1,927,923 |
|
|
|
CoStar Group, Inc. |
||||||||||||||||||||||||
|
Disaggregated Revenues – Unaudited |
||||||||||||||||||||||||
|
(in thousands) |
||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
|
Three Months Ended March 31, |
|||||||||||||||||||||||
|
|
2021 |
|
2020 |
|||||||||||||||||||||
|
|
North America |
|
International |
|
Total |
|
North America |
|
International |
|
Total |
|||||||||||||
|
Information and analytics |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
CoStar Suite |
$ |
163,554 |
|
|
$ |
8,630 |
|
|
$ |
172,184 |
|
|
$ |
157,335 |
|
|
$ |
7,621 |
|
|
$ |
164,956 |
|
|
|
Information services |
27,686 |
|
|
7,010 |
|
|
34,696 |
|
|
25,690 |
|
|
6,692 |
|
|
32,382 |
|
|||||||
|
Online marketplaces |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Multifamily |
166,147 |
|
|
— |
|
|
166,147 |
|
|
137,460 |
|
|
— |
|
|
137,460 |
|
|||||||
|
Commercial property and land |
84,376 |
|
|
294 |
|
|
84,670 |
|
|
56,962 |
|
|
87 |
|
|
57,049 |
|
|||||||
|
Total revenues |
$ |
441,763 |
|
|
$ |
15,934 |
|
|
$ |
457,697 |
|
|
$ |
377,447 |
|
|
$ |
14,400 |
|
|
$ |
391,847 |
|
|
|
CoStar Group, Inc. |
|||||||
|
Results of Segments – Unaudited |
|||||||
|
(in thousands) |
|||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
2021 |
|
2020 |
||||
|
EBITDA |
|
|
|
||||
|
North America |
$ |
135,858 |
|
|
$ |
102,413 |
|
|
International |
(322 |
) |
|
(2,293 |
) |
||
|
Total EBITDA |
$ |
135,536 |
|
|
$ |
100,120 |
|
|
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 |
|||||
|
|
|
|
|
|
|
|||||
|
Net income |
$72.8 |
|
$60.4 |
|
$58.2 |
|
$35.8 |
|
$74.2 |
|
|
Income tax expense |
5.6 |
|
16.9 |
|
10.7 |
|
10.7 |
|
19.1 |
|
|
Income before income taxes |
78.4 |
|
77.3 |
|
68.9 |
|
46.4 |
|
93.3 |
|
|
Amortization of acquired intangible assets |
17.5 |
|
21.0 |
|
24.9 |
|
24.8 |
|
25.8 |
|
|
Stock-based compensation expense |
15.2 |
|
9.5 |
|
16.7 |
|
12.7 |
|
15.5 |
|
|
Acquisition and integration related costs |
8.7 |
|
10.0 |
|
7.9 |
|
65.9 |
|
8.5 |
|
|
Other expense |
— |
|
— |
|
0.1 |
|
— |
|
1.1 |
|
|
Non-GAAP income before income taxes |
119.8 |
|
117.8 |
|
118.9 |
|
149.8 |
|
144.2 |
|
|
Assumed rate for income tax expense * |
25% |
|
25% |
|
25% |
|
25.0% |
|
25% |
|
|
Assumed provision for income tax expense |
(30.0) |
|
(29.5) |
|
(29.7) |
|
(37.5) |
|
(36.0) |
|
|
Non-GAAP net income |
$89.8 |
|
$88.3 |
|
$89.2 |
|
$112.3 |
|
$108.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share – diluted |
$2.44 |
|
$2.34 |
|
$2.26 |
|
$2.85 |
|
$2.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average outstanding shares – basic |
36.5 |
|
37.5 |
|
39.2 |
|
39.1 |
|
39.2 |
|
|
Weighted average outstanding shares – diluted |
36.8 |
|
37.7 |
|
39.4 |
|
39.4 |
|
39.4 |
|
|
|
|
|
|
|
|
|||||
|
* A 25% tax rate is assumed for 2021 and 2020, which approximates our statutory federal and state corporate tax rate. |
||||||||||
|
|
||||||||||
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||||||
|
|
|
|
|
|
|
|||||
|
|
2020 |
2021 |
||||||||
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
|||||
|
|
|
|
|
|
|
|||||
|
Net income |
$72.8 |
|
$60.4 |
|
$58.2 |
|
$35.8 |
|
$74.2 |
|
|
Amortization of acquired intangible assets |
17.5 |
|
21.0 |
|
24.9 |
|
24.8 |
|
25.8 |
|
|
Depreciation and other amortization |
6.8 |
|
7.0 |
|
6.8 |
|
8.2 |
|
8.5 |
|
|
Interest (income) expense |
(1.7) |
|
3.6 |
|
7.5 |
|
7.9 |
|
7.9 |
|
|
Other (income) expense |
(0.8) |
|
0.4 |
|
0.3 |
|
0.9 |
|
0.1 |
|
|
Income tax expense |
5.6 |
|
16.9 |
|
10.7 |
|
10.7 |
|
19.1 |
|
|
EBITDA |
$100.2 |
|
$109.3 |
|
$108.4 |
|
$88.3 |
|
$135.6 |
|
|
Stock-based compensation expense |
15.1 |
|
9.5 |
|
16.7 |
|
12.7 |
|
15.5 |
|
|
Acquisition and integration related costs |
8.7 |
|
10.0 |
|
7.9 |
|
65.9 |
|
8.5 |
|
|
Restructuring and related costs |
— |
|
— |
|
0.4 |
|
— |
|
— |
|
|
Adjusted EBITDA |
$124.0 |
|
$128.8 |
|
$133.4 |
|
$166.9 |
|
$159.6 |
|
|
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 June 30, 2021 |
|
December 31, 2021 |
||||||||||||
|
|
Low |
|
High |
|
Low |
|
High |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
54,000 |
|
|
$ |
59,000 |
|
|
$ |
308,000 |
|
|
$ |
319,000 |
|
|
Income tax expense |
19,000 |
|
|
21,000 |
|
|
101,000 |
|
|
104,000 |
|
||||
|
Income before income taxes |
73,000 |
|
|
80,000 |
|
|
409,000 |
|
|
423,000 |
|
||||
|
Amortization of acquired intangible assets |
24,000 |
|
|
24,000 |
|
|
97,000 |
|
|
97,000 |
|
||||
|
Stock-based compensation expense |
17,000 |
|
|
16,000 |
|
|
68,000 |
|
|
66,000 |
|
||||
|
Acquisition and integration related costs |
2,000 |
|
|
1,000 |
|
|
12,000 |
|
|
10,000 |
|
||||
|
Other expense |
1,000 |
|
|
1,000 |
|
|
4,000 |
|
|
4,000 |
|
||||
|
Non-GAAP income before income taxes |
117,000 |
|
|
122,000 |
|
|
590,000 |
|
|
600,000 |
|
||||
|
Assumed rate for income tax expense * |
25 |
% |
|
25 |
% |
|
25 |
% |
|
25 |
% |
||||
|
Assumed provision for income tax expense |
(29,400 |
) |
|
(30,500 |
) |
|
(147,700 |
) |
|
(149,700 |
) |
||||
|
Non-GAAP net income |
$ |
87,600 |
|
|
$ |
91,500 |
|
|
$ |
442,300 |
|
|
$ |
450,300 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income per share – diluted |
$ |
1.37 |
|
|
$ |
1.50 |
|
|
$ |
7.80 |
|
|
$ |
8.08 |
|
|
Non-GAAP net income per share – diluted |
$ |
2.22 |
|
|
$ |
2.32 |
|
|
$ |
11.20 |
|
|
$ |
11.40 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average outstanding shares – diluted |
39,400 |
|
|
39,400 |
|
|
39,500 |
|
|
39,500 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
* A 25% tax rate is assumed, which approximates our statutory federal and state corporate tax rate. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA |
|||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Guidance Range |
|
Guidance Range |
||||||||||||
|
|
For the Three Months |
|
For the Year Ending |
||||||||||||
|
|
Ending June 30, 2021 |
|
December 31, 2021 |
||||||||||||
|
|
Low |
|
High |
|
Low |
|
High |
||||||||
|
Net income |
$ |
54,000 |
|
|
$ |
59,000 |
|
|
$ |
308,000 |
|
|
$ |
319,000 |
|
|
Amortization of acquired intangible assets |
24,000 |
|
|
24,000 |
|
|
97,000 |
|
|
97,000 |
|
||||
|
Depreciation and other amortization |
7,000 |
|
|
7,000 |
|
|
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 |
19,000 |
|
|
21,000 |
|
|
101,000 |
|
|
104,000 |
|
||||
|
Stock-based compensation expense |
17,000 |
|
|
16,000 |
|
|
68,000 |
|
|
66,000 |
|
||||
|
Acquisition and integration related costs |
2,000 |
|
|
1,000 |
|
|
12,000 |
|
|
10,000 |
|
||||
|
Adjusted EBITDA |
$ |
130,000 |
|
|
$ |
135,000 |
|
|
$ |
645,000 |
|
|
$ |
655,000 |
|
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. 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. 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. 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 4,700 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, including trends related to revenue, net income, non-GAAP net income, EBITDA, adjusted EBITDA, site traffic and visitors, sales, renewal rates, leads and the number of Ten-X bidders; the risk that the Company is unable to sustain current revenue, earnings, and net new sales growth rates, as well as renewal rates during the remainder of 2021 or increase them; the risk that the Company’s investment plans change or that those investments do not produce the expected results, including accelerated growth; the risk that revenues for the second quarter and full year 2021 will not be as stated in this press release; the risk that net income for the second quarter and full year 2021 will not be as stated in this press release; the risk that adjusted EBITDA for the second 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 second 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; the possibility that the acquisition of Homes.
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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