WASHINGTON - CoStar Group , Inc. (NASDAQ: NASDAQ:CSGP), a leader in online real estate marketplaces and analytics, reported a first-quarter earnings beat, with adjusted EPS of $0.10 exceeding analyst expectations by $0.03. The stock was up 0.7% after the announcement.
The company's revenue for the quarter also surpassed estimates, coming in at $656 million compared to the consensus of $649.68 million, marking a 12% increase from the $584 million reported in the same quarter last year.
The company's strong performance is attributed to the successful launch of Homes.com, which significantly contributed to the quarter's results. CoStar Group's CEO, Andy Florance, highlighted the rapid growth in Homes.com membership subscriptions, reaching nearly $40 million in net new bookings with less than two months of sales in the quarter. This achievement is considered the most robust sales launch in the company's history. The company also experienced a record 156 million monthly unique visitors in March, according to Google (NASDAQ:GOOGL) Analytics, bolstering its position as one of the top residential marketplace portals in the U.S.
Looking ahead, CoStar Group has raised its full-year revenue and adjusted EBITDA guidance for 2024. The company now expects full-year revenue to be in the range of $2.76 billion to $2.77 billion, with a midpoint indicating approximately 13% growth year-over-year (YoY). For the second quarter of 2024, revenue is projected to be between $674 million and $679 million, showing an estimated 12% growth YoY at the midpoint. Adjusted EBITDA guidance for the full year has been increased by $15 million at the midpoint, now expected to be between $185 million and $205 million. For the second quarter, adjusted EBITDA is forecasted to range from $5 million to $10 million.
The company's guidance for adjusted EPS is set at $0.58 to $0.62 for the full year, based on 409 million shares, with the second quarter expected to be between $0.09 and $0.10 per diluted share. These figures include an estimated adjusted tax rate of 26% for both the full year and the second quarter.
CoStar Group's CFO, Scott Wheeler, expressed confidence in the company's trajectory, stating, "We are off to a strong start in the first quarter of 2024 and are raising our full year revenue and adjusted EBITDA guidance." The company's leadership remains focused on capitalizing on market opportunities and delivering value to shareholders.
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