CoStar Group Shatters Revenue Records and Achieves Record-Setting Net Income Growth
CoStar Group, a leading provider of commercial real estate data and intelligence, has announced another strong quarter of financial results with record-setting revenue growth and net income. In its fourth-quarter 2024 earnings conference call, CoStar Group's CEO and Founder, Andy Florance, highlighted the company's achievements in delivering double-digit revenue growth for the 55th consecutive quarter.
CoStar Group reported full-year revenue of $2.74 billion, an 11% increase over the previous year, with fourth-quarter revenue reaching $709 million, a 11% year-over-year increase. The company also achieved a significant improvement in net income, growing from $7 million in the first quarter to $60 million in the fourth quarter.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached $112 million in the fourth quarter, well ahead of CoStar Group's guidance range of $76 million to $86 million. This represents a 21% sequential increase from the third quarter of 2024.
CoStar Group also reported an increase in average monthly unique visitors to its global websites, reaching 134 million in the fourth quarter of 2024, according to Google Analytics. Company net new bookings were $53 million in the fourth quarter of 2024, up 21% sequentially from the third quarter of 2024.
"We achieved another very strong quarter of financial results with 2024 full year revenue and adjusted EBITDA exceeding consensus and the high end of our guidance range," said Andy Florance. "We continue to generate profit while investing aggressively back into the business to create powerful future growth drivers, such as Homes.com."
CoStar Group's commercial information and marketplace businesses achieved a very strong 43% profit margin for the full year, with CoStar product achieving $1.02 billion in revenue in 2024, a 10% year-over-year growth rate.
The company's dedicated home sales team has grown nearly sixfold to 277 salespeople, and CoStar Group anticipates having 500 home salespeople by year-end 2025. With the expanded team selling Homes.com, CoStar expert selling CoStar, and apartments experts selling Apartments.com, net bookings are increasing.
"When we launched Homes.com sales just 12 months ago, we only had 41 Homes.com sales professionals to prospect over 1 million real estate agents," said Andy Florance. "To backstop this very small team, we temporarily tested all of our sales forces to sell Homes.com. We no longer need to do that because over the past year, we've grown the Homes.com sales force nearly sixfold."
