CoStar's Healthy Q1 Results Show Company "moving past the pandemic disruption"

April 28, 2021
Share this Post: 

CoStar, the US commercial real estate giant with designs on the residential sector, has released an encouraging set of results for Q1 of 2021. The Washington-based company saw revenue up 17% on a year-on-year basis to $492M while EBITDA was up by 35% to $136M.

 

CoStar had built up quite the reputation over the last few years for being a profit machine, and today's Q1 results see the firm get back on track in that regard after a pandemic hit 2020. The company's share price, like many online marketplace stocks, saw a steady rise from the depths of March 2020 and may well reach and exceed all-time highs of $939 this week on the back of yesterday's Q1 results.

 

Aside from its original commercial real estate data business, CoStar owns and operates online marketplace business in the commercial as well as residential sectors. Q1 saw an extra $52M in net new bookings across all sectors of the company representing a rise of 10% year-on-year. The company's data and analytics arm may have been thwarted in its attempts to buy CoreLogic earlier in the year but bookings were back at pre-pandemic levels according to CEO Andy Florance, with an international version of CoStar Suite soon to be launched.

CoStar's marketplace businesses, which include commercial portal LoopNet, foreclosure specialist portal TenX as well as Apartments.com and the recently acquired Homesnap in the residential sector, also saw strong quarterly results. Florance was keen to highlight the performance of Homesnap in particular on an earnings call:

“The business performed well in the first quarter of 2021, growing pro forma revenue by over 40% year-over-year as paid subscribers more than doubled and subscription revenue grew by 68%.”

Florance also said that the company appears "to be moving past the pandemic disruption", and CoStar took the opportunity of its sanguine Q1 performance to upgrade its revenue guidance for the rest of the year to a new range of $1.930 billion to $1.945 billion which would represent year-on-year growth of around 17%.

A fit and healthy CoStar will mean extra competition for current US residential market leader Zillow. CoStar has made no secret of its desire to move into the residential sector and with the recent acquisitions of Homes.com and Homesnap the company is very much putting its money where its mouth is.

 

April 28, 2021
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

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

Shutterstock 147091049
Housing.com To Hire 200 People In Market Leadership Push

Housing.com will hire up to 200 staff in fiscal year 2023 as it aims to establish itself as India's leading...

Read More
Propertyguru For Business Skyline Singapore
'Guided by Guru' - PropertyGuru Outlines New Brand Positioning

The Southeast Asian real estate portal operator PropertyGuru has announced a 'brand repositioning' and has introduced a new umbrella brand...

Read More
Shutterstock 1958725735
Spotahome Tells Staff That It Expects Another Round of Layoffs

Madrid-based on-demand rentals specialist Spotahome has announced it will go through another round of layoffs, weeks after firing two senior...

Read More
Homely And Ptg Skyline
Aussie Portal Homely Integrates with Proptech Group's VaultRE and Eagle CRMs

Australian challenger portal Homely.com.au says it will be easier than ever for agents to list in more places after announcing...

Read More

Editor's Pick