Yahoo Finance

• Revenue: $732 million in Q1 2025, a 12% increase year over year.

• Adjusted EBITDA: $66 million, a 429% increase over Q1 2024.

• Profit Margin: 43% for commercial real estate and information marketplace businesses.

• Net New Bookings: $56 million in Q1 2025, up 6% sequentially from Q4 2024.

• International Business ARR: Over $5 million in Q1 2025, representing 56% year over year growth.

• CoStar Revenue: $265 million in Q1 2025, up 6% year over year.

• LoopNet Net New Bookings: 200% year over year increase.

• BizBuySell Revenue: $8.7 million in Q1 2025, a 10% increase year over year.

• Apartments.com Revenue: $282 million, an 11% increase over Q1 2024.

• Homes.com Unaided Awareness: Increased 9 times to 36% in 14 months.

• Net Loss: $15 million due to onetime costs from Matterport acquisition.

• Cash and Investment Income: $38.5 million net investment income on $3.8 billion in cash.

• Contract Renewal Rate: 89% in Q1 2025, 94% for subscribers of five years or longer.

• Share Repurchase: 240,000 shares for $18.5 million in Q1 2025.

• Full Year 2025 Revenue Guidance: $3.115 billion to $3.155 billion, 14% to 15% growth.

• Full Year 2025 Adjusted EBITDA Guidance: $355 million to $385 million, approximately 12% margin.

• Warning! GuruFocus has detected 3 Warning Sign with CSGP.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CoStar Group Inc (NASDAQ:CSGP) reported Q1 2025 revenue of $732 million, marking a 12% increase year over year and exceeding consensus expectations.

• The company achieved a 43% profit margin in its commercial real estate and information marketplace businesses, showcasing strong operational efficiency.

• CoStar's international businesses achieved three consecutive quarters of all-time net new bookings, with a 56% year over year growth in Q1 2025.

• Apartments.com reported a strong quarter with revenue of $282 million, an 11% increase over Q1 2024, and added 4,300 new communities, the most in a single quarter in almost 10 years.

• Homes.com has rapidly increased its unaided brand awareness 9 times to 36% in just 14 months, becoming the second most visited US residential portal.

Negative Points

• The commercial real estate environment remains challenging, with high vacancy rates and low real asking rents impacting market conditions.

• CoStar Group Inc (NASDAQ:CSGP) posted a $15 million net loss for the first quarter, primarily due to onetime costs from the Matterport acquisition.

• The company anticipates slight headwinds from government contract cancellations expected throughout 2025.

• Matterport contributed an adjusted EBITDA loss of $2.7 million for the first quarter stub period.

• Homes.com experienced early cancellations and negative Net Promoter Scores initially, although these metrics have improved over time.