CoStar’s revenue rises, but profits drop

Second-quarter sales were $35M, down from $59M a year ago

CoStar Group’s second-quarter profits slid 4.5 percent to $60 million as it incurred higher operating costs and slower sales during the pandemic.

During the quarter, the data giant reported $35 million in net new sales, down from $59 million during the same period last year. But as sales picked up during reopening, CoStar said it notched a record $22 million net new sales in June.

Despite the pandemic, CoStar said its quarterly revenue jumped 16 percent year-over-year to $397 million.

With a $24 billion market cap, CoStar was already the biggest data provider in the U.S. before it announced in May it would buy Ten-X for $190 million. The deal boosted its presence in the distressed real estate space. CoStar subsequently raised $2.7 billion in debt and equity to fund acquisitions.

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In a statement, CoStar CEO Andy Florance said the company’s results “indicate that our business is not only resilient but is in fact clearly countercyclical.” Traffic to CoStar’s websites rose 13 percent year-over-year to a record 62 monthly unique visitors. The company finished the quarter with $3.8 billion in cash.

The company also reinstated its 2020 guidance, which it suspended in the early weeks of the pandemic. CoStar projected $1.63 billion to $1.64 billion in 2020 revenue, which would be a 17 percent gain year-over-year. CoStar said Ten-X would contribute $25 million to $30 million of its total revenue.

In February, CoStar said it generated $1.4 billion in revenue last year. The company’s net income rose 32 percent year-over-year to $315 million.

Write to E.B. Solomont at eb@therealdeal.com

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CoStar’s revenue rises, but profits drop

Second-quarter sales were $35M, down from $59M a year ago

CoStar Group’s second-quarter profits slid 4.5 percent to $60 million as it incurred higher operating costs and slower sales during the pandemic.

During the quarter, the data giant reported $35 million in net new sales, down from $59 million during the same period last year. But as sales picked up during reopening, CoStar said it notched a record $22 million net new sales in June.

Despite the pandemic, CoStar said its quarterly revenue jumped 16 percent year-over-year to $397 million.

With a $24 billion market cap, CoStar was already the biggest data provider in the U.S. before it announced in May it would buy Ten-X for $190 million. The deal boosted its presence in the distressed real estate space. CoStar subsequently raised $2.7 billion in debt and equity to fund acquisitions.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

In a statement, CoStar CEO Andy Florance said the company’s results “indicate that our business is not only resilient but is in fact clearly countercyclical.” Traffic to CoStar’s websites rose 13 percent year-over-year to a record 62 monthly unique visitors. The company finished the quarter with $3.8 billion in cash.

The company also reinstated its 2020 guidance, which it suspended in the early weeks of the pandemic. CoStar projected $1.63 billion to $1.64 billion in 2020 revenue, which would be a 17 percent gain year-over-year. CoStar said Ten-X would contribute $25 million to $30 million of its total revenue.

In February, CoStar said it generated $1.4 billion in revenue last year. The company’s net income rose 32 percent year-over-year to $315 million.

Write to E.B. Solomont at eb@therealdeal.com

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