CoStar Group sells commercial real estate information software built on its proprietary data set and operates multiple real estate websites. Quality (4/5) CoStar’s revenue is on pace to be $2.5B in 2023 compared to only $441M ten years ago. The nearly 20% CAGR is a bit high for my liking because it is usually difficult for companies to sustain this level of growth for a long time. While growth rates recently dropped to 12%, CoStar is adding more dollars of revenue year-on-year than it had in total as a company before 2011 (~$200M).
That was an interesting earnings call. The market seemed to be ok with CoStar's aggressive residential spending outlook, guiding earnings 50% lower, and the departure of its CFO, at least initially. I guess it is fine if the core business is still generating 40%+ margins. We will see if they really can repeat the Apartments.com magic with Homes!
Great read! I'm following them for the last 3-4 months. They seem to have a big advantage in their field. Looking forward to the earnings next week!
That was an interesting earnings call. The market seemed to be ok with CoStar's aggressive residential spending outlook, guiding earnings 50% lower, and the departure of its CFO, at least initially. I guess it is fine if the core business is still generating 40%+ margins. We will see if they really can repeat the Apartments.com magic with Homes!