CoStar Group Q1 Results: Homes.com Drives 12% Year-on-Year Revenue Growth to $656 Million

April 24, 2024
Share this Post: 

CoStar Group has released strong financial results in the same week that it announced its intention to acquire Matterport for $1.6 billion.

Highlights include:

  • Monetization of Homes.com accelerates net sales by a further $39 million, to a quarterly record of $86 million
  • YoY quarterly revenue increased 12% to $656 million
  • Net income dropped from $87 million in Q1 2023 to $7 million in Q1 2024
  • EBITDA fell from $98 million in 2023 to an EBITDA loss of $13 million in 2024
  • CoStar Group expects revenue in the range of $2.76 billion to $2.77 billion for the full year of 2024

Andy Florance, Founder and CEO of CoStar Group, said:

"CoStar Group delivered exceptional revenue, sales and marketplace traffic results in the first quarter of 2024, fueled by the launch of our monetization of Homes.com on February 12th of this year.

"With less than two months of selling in the first quarter, Homes.com membership subscriptions reached nearly $40 million in net new bookings. This is by far the strongest sales launch of any product in the company’s history, and we are raising our sales and revenue forecast for Homes.com for the full year 2024.

"We believe that Homes.com is now one of two most heavily trafficked residential marketplace portals in the U.S. Our aggressive marketing campaign successfully catapulted our unaided awareness from 4% in the fourth quarter of 2023 to 24% by the end of March 2024.

"Both Apartments.com and CoStar crossed $250 million of revenue in the first quarter to become our first and second businesses to reach $1 billion in annualized run rate revenue."

As always, CoStar continues to impress with strong performance across the board and its ability to increase revenue quarter-by-quarter, every quarter.

Homes.com was a big part of that, after explosive traffic growth strapped a rocketship to net sales, generating almost half of the Group's record-breaking quarterly sales.

The caveats to Q1 2024's EBITDA losses and dampened net income are embedded in two major investments in recent months: one, the acquisition of OnTheMarket for an estimated $100 million in December 2024 and, two, a significant increase in marketing spend—which grew by a further $100 million compared to the same period in 2023.

Meanwhile, there will certainly be a major hit to accounts when the Matterport deal goes through later this year—but this will ultimately not make a major dent in CoStar's plans given its sizeable cash reserves and continued revenue growth.

 

April 24, 2024
Harvey is an experienced property journalist and copywriter. He has written about the property industry since 2015, starting at The Property Franchise Group in the UK, before moving to Spain to work for Spotahome. He has blogged for the private rented sector, ghostwritten for UK property experts and written case studies for franchise owners around the UK. Harvey joined Online Marketplaces as a News Editor in 2022.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Dutch Houses Netherlands
Mediahuis Shuts Dutch Portal Jaap Citing Fierce Competition

The Dutch real estate portal Jaap quietly shut down earlier this year after seeing its profits evaporate in the face...

Read More
Costar Vs Zillow Cowboys
CoStar's Homes.com May Not Need to Win Traffic Game to Out-Earn Zillow

It might be growing fast (and shouting about it) but CoStar-owned US  challenger real estate portal Homes.com is still a...

Read More
Untitled Design 10 1
Schibsted Successfully Detaches Media Business, Leaving Standalone Marketplaces Segment

The Norwegian media and marketplace operator Schibsted has had a busy month, with transactions worth approximately NOK 50 billion ($4.7...

Read More
Idealista Cinven
Private Equity Firm Cinven Takes the Lead in €3Bn Idealista Tug-Of-War

London-based, private equity firm Cinven has reportedly signed an exclusivity agreement to acquire Idealista for an estimated €3 billion. The...

Read More

Editor's Pick