"Our strategic investments in the Apartments.com re-launch, our national advertising campaign and the National Apartment Association exposition in June have clearly paid off by fueling a dramatic acceleration of sales in the second quarter 2015," said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group.
"This quarter yielded our best sales result ever and June was our best sales month ever. Based on the last four months, Apartments.com sales are growing at an annualized pace of 58%. Company-wide net bookings in the second quarter 2015 were $34 million, up 66% compared to first quarter 2015 net bookings of $21 million and nearly double our net bookings of $17.5 million in the second quarter 2014. Net new sales on annual subscriptions were $25 million in the second quarter 2015 versus $16 million in the same quarter last year, an increase of 59%. The advertising campaign is driving significant traffic to our websites while our superior content and innovative user-friendly technology are engaging renters."
Florance continued. "For the fourth month in a row, Apartments.com is the most visited apartment listings site according to each of the leading web traffic authorities - comScore, Experian Hitwise, Amazon Alexa and Compete. In the second quarter of 2015, Apartments.com experienced a 70% year-over-year increase in unique visitors according to comScore. Consumer engagement on Apartments.com is very strong. In June 2015, Apartments.com had more than three times the number of page views than our next closest apartments site competitor, according to Compete. Total time spent on Apartments.com was more than 50% higher than our closest apartments site competitor, as reported by comScore."
|Year 2014-2015 Quarterly Results - Unaudited|
|(in millions, except per share data)|
|Net income (loss)||9.7||8.2||13.0||13.9||(6.1)||(15.0)|
|Net income (loss) per share - diluted||0.34||0.28||0.40||0.43||(0.19)||(0.47)|
|Weighted average outstanding shares - diluted||28.8||29.5||32.1||32.1||31.8||31.9|
|Non-GAAP Net Income||19.8||23.5||27.9||29.8||10.8||2.4|
|Non-GAAP Net Income per share - diluted||0.69||0.80||0.87||0.93||0.34||0.08|
Including the impact of investments in marketing for Apartments.com as well as costs associated with the Apartment Finder acquisition, adjusted EBITDA (defined below) was $11.3 million in the second quarter of 2015 versus $45.3 million in the second quarter of 2014. EBITDA in the second quarter of 2015 was $(1.5) million compared to $37.6 million in the second quarter of 2014. Non-GAAP net income (defined below) in the second quarter of 2015 was $2.4 million or $0.08 per diluted share compared to $23.5 million in the second quarter of 2014. Net income in the second quarter of 2015 was ($15.0) million or ($0.47) per diluted share compared to net income of $8.2 million or $0.28 per diluted share in the second quarter of 2014.
As of June 30, 2015, the Company had approximately $367.8 million in cash, cash equivalents and long-term investments. Short and long-term debt outstanding totaled approximately $375.0 million as of June 30, 2015. On June 1, 2015 the Company paid approximately $170.0 million in cash in connection with the acquisition of Apartment Finder.
"Our continued strong sales performance is contributing to top-line revenue growth," stated Brian J. Radecki, Chief Financial Officer of CoStar Group. "We are raising our full year 2015 revenue outlook range to $707 million to $712 million." The top-end of the Company's annual revenue guidance range is now $52 million higher than our initial 2015 guidance forecast. The Company continues to expect Apartment Finder to contribute $40 million to $43 million in 2015 along with an additional $9 million to $12 million from organic growth resulting from outstanding sales results in the first half of 2015. For the third quarter of 2015, the Company expects revenue of approximately $187 million to $189 million.
Radecki added, "We had tremendous results from the Apartments.com marketing campaign in the second quarter of this year and have shifted a small amount of the marketing investment into the third quarter to support the recently announced Free Rent for Life Campaign." The Company expects non-GAAP net income per diluted share (defined below) of approximately $0.42 to $0.45 for the third quarter and $0.79 to $0.84 for the fourth quarter of 2015. Marketing expenses are expected to trend downward following the peak 2015 apartment rental season which is reflected in the quarterly earnings outlook. For the full year of 2015, the Company expects non-GAAP net income per diluted share in a range of $1.62 to $1.70, an increase of $0.03 at the midpoint compared to the Company's prior guidance.