CoStar Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>CoStar Group, Inc. has filed its 2023 Form 10-K detailing its financial performance and operational status for the year ending December 31, 2023.</b>

AI Summary

COSTAR GROUP, INC. (CSGP) filed a Annual Report (10-K) with the SEC on February 22, 2024. CoStar Group, Inc. filed its annual report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 1331 L Street, NW, Washington, DC. CoStar Group, Inc. is incorporated in Delaware. The filing includes financial data and operational details for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking COSTAR GROUP, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of CoStar Group's financial health, strategic initiatives, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future outlook. The detailed financial statements and disclosures within the report are essential for understanding the company's revenue streams, profitability, and balance sheet strength, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — COSTAR GROUP, INC. shows moderate risk based on this filing. The company operates in the business services sector, which can be subject to economic downturns and competitive pressures, as indicated by the nature of its services and the general market conditions discussed in typical 10-K filings.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess CoStar Group's growth prospects and potential challenges in the commercial real estate information and analytics market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-22 — Filing Date (Date of filing)
• 2023-01-01 — Fiscal Year Start (Reporting period start date)

Key Players & Entities

• COSTAR GROUP, INC. (company) — Filer name
• CSGP (company) — Ticker symbol
• 1331 L STREET, NW (company) — Business address
• WASHINGTON (company) — Business address city
• DC (company) — Business address state
• DE (company) — State of incorporation

FAQ

Risk Factors

• Market and Economic Conditions [medium — market]: The company's operations and financial results are subject to fluctuations in the commercial real estate market and broader economic conditions.
• Dependence on Technology and Data [medium — operational]: The company relies heavily on its technology infrastructure and the accuracy and availability of its data to provide services.
• Interest Rate Risk [low — financial]: Changes in interest rates can impact the company's financing costs and the valuation of its lease liabilities.

Industry Context

CoStar Group operates in the commercial real estate information and analytics industry, providing data, analytics, and online marketplaces for commercial properties.

Regulatory Implications

The company is subject to SEC regulations governing public company filings, including the timely submission of its annual report on Form 10-K.

What Investors Should Do

1. Analyze the detailed financial statements for revenue growth, profitability trends, and balance sheet health.
2. Review the risk factors section to understand potential challenges and their impact on future performance.
3. Assess management's discussion and analysis (MD&A) for insights into strategic priorities and outlook.

Key Dates

• 2024-02-22: 10-K Filing — Official filing of the annual report for fiscal year 2023.

Year-Over-Year Comparison

This is the initial filing for the fiscal year 2023, providing a baseline for future comparisons.

Key Financial Figures

• $0.01 — ange on which registered Common Stock ($0.01 par value) CSGP Nasdaq Global Select Ma
• $750 million — se of proceeds from any draws under our $750 million credit facility provided by the 2020 Cr

Filing Documents

• csgp-20231231.htm (10-K) — 2172KB
• csgp-ex102220231231.htm (EX-10.22) — 16KB
• csgpex21120231231.htm (EX-21.1) — 24KB
• csgp-ex23120231231.htm (EX-23.1) — 8KB
• csgp-ex31120231231.htm (EX-31.1) — 12KB
• csgp-ex31220231231.htm (EX-31.2) — 12KB
• csgp-ex32120231231.htm (EX-32.1) — 9KB
• csgp-ex32220231231.htm (EX-32.2) — 9KB
• csgp-ex9720231231.htm (EX-97) — 32KB
• csgp-20231231_g1.jpg (GRAPHIC) — 32KB
• csgp-20231231_g2.jpg (GRAPHIC) — 209KB
• 0001057352-24-000013.txt (&nbsp;) — 12782KB
• csgp-20231231.xsd (EX-101.SCH) — 76KB
• csgp-20231231_cal.xml (EX-101.CAL) — 121KB
• csgp-20231231_def.xml (EX-101.DEF) — 362KB
• csgp-20231231_lab.xml (EX-101.LAB) — 964KB
• csgp-20231231_pre.xml (EX-101.PRE) — 666KB
• csgp-20231231_htm.xml (XML) — 2118KB

Risk Factors

Item 1A. Risk Factors 20

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 32

C ybersecurity

Item 1C C ybersecurity 33

Properties

Item 2. Properties 34

Legal Proceedings

Item 3. Legal Proceedings 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35

Reserved

Item 6. Reserved 37

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 49

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 51

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 51

Controls and Procedures

Item 9A. Controls and Procedures 51

Other Information

Item 9B. Other Information 52

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 52 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 52

Executive Compensation

Item 11. Executive Compensation 52

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 52

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 52

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 52 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 53

Form 10-K Summary

Item 16. Form 10-K Summary 56

Signatures

Signatures 57 Index to Consolidated Financial Statements F- 1 2 Glossary of Terms The following abbreviations or acronyms used in this Annual Report on Form 10-K (this "Report") are defined below: Abbreviation or Acronym Definition 2020 Credit Agreement The second amended and restated credit agreement, dated July 1, 2020, which amended and restated in its entirety the then-existing credit agreement originally entered into on April 1, 2014, as amended by the first amendment to the second amended and restated credit agreement, dated May 8, 2023. ACH Automated Clearing House ADR Average daily rate Apartments.com Network Apartments.com, the flagship brand of our network of apartment marketing sites, and its network of rental websites ARS Auction rate securities ASC Accounting Standards Codification ASU Accounting Standards Update Audit Committee The Audit Committee of the Board BizBuySell BizBuySell.com and its network of business for-sale websites Board The CoStar Group Board of Directors BureauxLocaux The legal entity, Comreal Info, a French socit par actions simplifie, the owner and operator of BureauxLocaux, a commercial real estate digital marketplace, in France BureauxLocaux Acquisition CoStar UK's acquisition of BureauxLocaux completed on October 1, 2021 pursuant to a Share Sale and Purchase Agreement dated October 1, 2021 between CoStar UK, M.A.J.E. Marketing & Strategie and an individual Business Immo The legal entity BIH, a French socit par actions simplifie, the owner and operator of Business Immo, a leading commercial real estate news service provider in France Business Immo Acquisition CoStar UK's acquisition of the issued share capital of Business Immo on April 5, 2022 CAN-SPAM Act Controlling the Assault of Non-Solicited Pornography and Marketing Act CCPA California Consumer Privacy Act, as amended by the California Privacy Rights Act CECL Current expected credit losses CMBS Commercial mortgage-based securiti

Business

Item 1. Business In this Report, the words "we," "our," "us," "CoStar Group" or the "Company" refer to CoStar Group, Inc. and its direct and indirect wholly owned subsidiaries. This Report also refers to our websites, but information contained on those sites is not part of this Report. CoStar Group, founded in 1987, is a leading provider of online real estate marketplaces, information and analytics in the U.S. and U.K. based on the fact that we own and operate leading online marketplaces for commercial real estate and apartment listings in the U.S., based on the numbers of unique visitors and site visits per month; provide more information, analytics and marketing services than any of our competitors; offer the most comprehensive commercial real estate database available; and have the largest commercial real estate research department in the industry. We have created and compiled a standardized platform of information, analytics and online marketplace services where industry professionals and consumers of commercial real estate, including apartments, and the related business communities, can continuously interact and facilitate transactions by efficiently accessing and exchanging accurate and standardized real estate-related information. Our service offerings span all commercial property types, including office, retail, industrial, multifamily, land, mixed-use and hospitality. Through our Homes.com Network and our acquisition of OnTheMarket, we also offer online platforms that manage workflow and marketing for residential real estate agents and brokers and provide portals for homebuyers to view residential property listings. Industry Overview The market for real estate information and analysis is vast, based on the variety, volume and value of transactions related to real estate. Each transaction has multiple participants and multiple information requirements, and in order to facilitate transactions, industry participants must have extensive, accurate and curren

View Full Filing

View this 10-K filing on SEC EDGAR