CoStar Group released its fourth-quarter 2024 earnings report on February 18, 2025, revealing mixed results. The company’s revenue surpassed expectations, reaching $709 million, which exceeded the analyst estimate of $701 million and was at the upper end of CoStar’s guidance range of $693 million to $703 million. However, earnings per share (EPS) did not meet expectations, recorded at $0.15 compared to a forecast of $0.22. The quarter presented a combination of strong revenue growth and unmet earnings expectations.
In the earnings breakdown, the revenue for the fourth quarter showed an increase of 10.8% year-over-year. Meanwhile, EPS faced a decline, from $0.24 in the fourth quarter of 2023 to $0.15 in the recent quarter, marking a 37.5% decrease. Net income also fell by 37.8%, recording $60 million against $96.4 million from the previous year. Additionally, Adjusted EBITDA stood at $111.9 million, a decline of 14% from the prior year, although it exceeded management’s expectations.
CoStar Group specializes in providing online real estate marketplaces, data, and analytics services, underpinned by a proprietary database containing diverse property, leasing, sales, and tenant information. The company emphasizes expanding its presence in the residential real estate segment through its platforms like Apartments.com and the fast-growing Homes.com network. Essential to its success are ongoing investments in database updates, strategic acquisitions, and technological advancements.
The fourth quarter revenue growth was attributed to strong performances in key segments, as highlighted by Apartments.com, which experienced a 17% revenue surge, concluding the year 2024 with a total revenue of $1.07 billion. Similarly, Homes.com emerged as the second-largest residential real estate marketplace in the U.S., attracting 110 million unique visitors monthly. However, CoStar faced challenges related to increased costs and macroeconomic pressures, impacting net income negatively.
Looking forward, CoStar’s management projects a 2025 revenue range of $2.985 billion to $3.015 billion. The revenue for the first quarter of 2025 is expected to be between $711 million and $716 million, representing a year-over-year increase of approximately 9%. The forecast for adjusted EBITDA in 2025 is set between $375 million and $405 million. Investors are advised to monitor developments in strategic areas such as the expansion of the Homes.com platform.
The article also notes that JesterAI, an AI system from Motley Fool, produced the report, which is reviewed by the editorial team. The Motley Fool has positions in and recommends CoStar Group but does not have ownership in JesterAI, which cannot own stocks.
