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CoStar reports 20% revenue jump in Q1

Threat of Moody’s entering the sector hasn't stopped the data giant's revenues from growing

CoStar CEO Andy Florance (Credit: Getty Images and iStock)
CoStar CEO Andy Florance (Credit: Getty Images and iStock)

CoStar Group’s revenue jumped 20 percent year over year during the first quarter, reaching $328 million — due in part to strong results from its residential listings platform.

The company reported a 63 percent year-over-year jump in net income to $85 million, and a 61 percent increase in EBITDA to $113 million.

Andrew Florance, the company’s CEO and founder, said on an earnings call Tuesday that the figures were bolstered by Apartments.com, which posted a 30 percent year-over-year increase in revenue.

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“We continue to pull further away from the competition, and in 2019 I believe we will continue on that trend,” Florance said on Tuesday’s earnings call.

The positive financial results come amid the growing threat of Moody’s Analytics. Through partnerships and ownership of firms including CompStak, Rockport VAL and Reis, Moody’s has sought to establish an alternate platform in the real estate data space, which has for decades been dominated by CoStar.

CoStar’s share price jumped 1.64 percent Tuesday, and closed trading at $495 a share, a record for the company. Its market capitalization is now over $18 billion.

Following a year of record revenue in 2018, which topped out at $1.2 billion, the company re-adjusted its financial goals and said it was aiming for $3 billion in annual sales by 2023, and more than $1.3 billion in revenue this year.

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