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

National /
Oct.October 24, 2018 08:30 AM

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.

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.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
A photo illustration of Mohegan Sun's Ray Pineault and Soloviev Group's Stefan Soloviev (Getty, Soloviev Group, Mohegan Gaming & Entertainment)
Soloviev partners with Mohegan on casino bid
Soloviev partners with Mohegan on casino bid
From left: Joseph Chetrit, Barry Sternlicht, David Rubenstein, Michael Dell, and Marc Holliday, along with 305 East 86th Street and 1540 Broadway (Getty, Carlyle, Google Maps)
New York City’s biggest borrowers of 2022
New York City’s biggest borrowers of 2022
Seth Weissman, John Catsimatidis, Mayor Eric Adams
They said what now? Real estate quotes of the week
They said what now? Real estate quotes of the week
From left: Robert Reffkin and Rupert Murdoch (Getty, Compass)
ChatGPT didn’t write this week’s real estate news roundup, we promise
ChatGPT didn’t write this week’s real estate news roundup, we promise
Hiten Samtani
Watch: CoStar makes its biggest resi Move yet
Watch: CoStar makes its biggest resi Move yet
Seth Weissman, Financing
Urban Standard wants to rescue property owners from high interest rates
Urban Standard wants to rescue property owners from high interest rates
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...