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Will CoStar's Earnings & Revenue Beat in Q1 Drive the Stock Price?

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CoStar Group CSGP reported non-GAAP earnings of 14 cents per share in the first quarter of 2025, which surpassed the Zacks Consensus Estimate by 27.27%. The company registered earnings of 10 cents per share in the year-ago quarter, increasing 40% year over year.

Revenues of $732.2 million beat the Zacks Consensus Estimate by 1.78% and increased 11.5% year over year. This represents the company’s 56th consecutive quarter of double-digit revenue growth. The upside was driven by robust performance in key segments and Matterport Acquisition. In the first quarter of 2025, Matterport acquisition contributed $15.9 million in revenues in the reported quarter., 

CSGP raised its top-line guidance for the second quarter of 2025 based on the first quarter of 2025 results, which bodes well for investors. The company’s shares have also gained 15.5% against the Zacks Computer and Technology sector’s decline of 11.2% in the year-to-date period.

CSGP's earnings beat the Zacks Consensus Estimate in the trailing four quarters, the earnings surprise being 37.41%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

CoStar Group, Inc. Price, Consensus and EPS Surprise

CoStar Group, Inc. Price, Consensus and EPS Surprise
CoStar Group, Inc. Price, Consensus and EPS Surprise

CoStar Group, Inc. price-consensus-eps-surprise-chart | CoStar Group, Inc. Quote

CSGP’s Top-Line Details

CoStar’s revenues (36.2% of revenues) of $265.1 million beat the consensus estimate by 0.11% and increased 5.9% year over year.

Apartments.com’s revenues increased 11% year over year to $282 million. The Apartments.com network had 38 million average monthly unique visitors in the first quarter of 2025. Net new bookings in the first quarter amounted to $56 million, up 6% sequentially and 29% year over year.

Information Services’ revenues (5.4% of revenues) of $39.8 million beat the consensus mark by 9.64% and increased 20.6% year over year.

Multifamily revenues (38.6% of revenues) of $282.5 million missed the consensus estimate by 0.34% but increased 10.9% year over year.

LoopNet’s revenues (9.9% of revenues) of $72.8 million missed the consensus mark by 0.78% and increased 5.4% year over year.

First-quarter residential revenues (3.7% of revenues) were $27.2 million, which missed the consensus mark by 5.23% and increased 46.2% year over year. In the first quarter of 2025, Homes.com network traffic hit a record of 104 million unique visitors.

Other marketplace revenues (6.1% of revenues) of $44.8 million beat the consensus mark by 51.61% and increased 46.4% year over year.

Per Google Analytics, CoStar’s global websites reached a record 130 million average monthly unique visitors, a 28% increase year over year.