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CoStar on pace for nearly $1.2B in revenue in 2018, Florance says

The CRE data giant posted $306M in revenue in the third quarter

CoStar CEO Andy Florance (Credit: iStock and Twitter)
CoStar CEO Andy Florance (Credit: iStock and Twitter)

CoStar Group has reported another jump in revenue to $306 million for the company’s third quarter, a 23 percent increase over the same period last year.

The company, which has a market cap of almost $14 billion, said that it was positioned to reach between $1.83 billion and $1.89 billion in revenue for 2018.

CoStar’s adjusted EBITDA in the third quarter was $110 million, a 31 percent increase over the third quarter of 2017. CEO Andrew Florance also said the company was on track to pass 40 percent adjusted EBITDA margin for the fourth quarter of 2018.

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On Tuesday, its share price was valued at $382, down from a peak of $446 at the start of September.

Earlier this month, CoStar announced the acquisition of startup Realla, the U.K.’s largest commercial real estate marketplace.

In its September magazine cover story, The Real Deal detailed the data giant’s expansion and hardball tactics in recent years. Beyond its hold on the commercial data market, the company has entered the residential space with the acquisitions of Apartments.com and ForRent.com. In February, the company’s $385 million acquisition of ForRent, which it would use to expand Apartments.com, was approved by the Federal Trade Commission.

During the company’s earnings call Tuesday, Florance said the acquisition of ForRent had prompted a $4 million drag on bookings to the site. He also told investors that ForRent was successfully integrated with the CoStar database in September, and its sales staff plans to focus on the Apartments.com customer base in the months ahead.

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