COSTAR GROUP, INC. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>COSTAR GROUP, INC. (CSGP) filed its Q1 2024 10-Q report on April 24, 2024, detailing financial performance and position.</b>

AI Summary

COSTAR GROUP, INC. (CSGP) filed a Quarterly Report (10-Q) with the SEC on April 24, 2024. The filing is a 10-Q for COSTAR GROUP, INC. for the period ending March 31, 2024. The company's Central Index Key is 0001057352. The filing covers the period from January 1, 2024, to March 31, 2024. The company's fiscal year ends on December 31. The filing includes data related to common stock, additional paid-in capital, accumulated other comprehensive income, and retained earnings for various periods.

Why It Matters

For investors and stakeholders tracking COSTAR GROUP, INC., this filing contains several important signals. This 10-Q filing provides a quarterly update on the financial health and operational performance of CoStar Group, Inc., crucial for investors to assess recent business trends and financial standing. The detailed financial data within the report allows stakeholders to track key metrics such as revenue, expenses, and equity, enabling informed investment decisions and competitive analysis.

Risk Assessment

Risk Level: low — COSTAR GROUP, INC. shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not contain significant new risks or material adverse events beyond typical business operations.

Analyst Insight

Review the detailed financial statements and segment information in the 10-Q to understand CoStar Group's performance drivers and identify any emerging trends.

Key Numbers

• 2024-03-31 — Period End Date (Conformed Period of Report)
• 2024-04-24 — Filing Date (Filed as of date)
• 0001057352 — Accession Number (Unique identifier for the filing)
• 12/31 — Fiscal Year End (Company's fiscal year end)

Key Players & Entities

• COSTAR GROUP, INC. (company) — Filer name
• 0001057352 (company) — Central Index Key
• 20240331 (date) — Period of report
• 20240424 (date) — Filing date
• 1331 L STREET, NW (address) — Business address
• WASHINGTON (location) — Business address city
• DC (location) — Business address state
• 20250 (postal_code) — Business address zip

FAQ

Risk Factors

• Regulatory Compliance [medium — regulatory]: The company must comply with various regulations related to its business operations and financial reporting.
• Market Competition [medium — market]: CoStar Group operates in a competitive market and faces challenges from existing and new competitors.
• Technology and Data Integrity [medium — operational]: Reliance on technology and the accuracy of its data are critical to the company's services and reputation.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-04-24: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ange on which registered Common Stock ($0.01 par value) CSGP Nasdaq Global Select Ma
• $0.0001 — terport Class A common stock, par value $0.0001 per share Merger Sub I Matrix Merger S
• $94.62 — Share Price is greater than or equal to $94.62 (the "Ceiling Price"), then the Merger
• $77.42 — up Share Price is less than or equal to $77.42 (the "Floor Price"), then the Merger Ex
• $2.75 — o shall be equal to the quotient of (x) $2.75 divided by (y) the Average CoStar Group

Filing Documents

• csgp-20240331.htm (10-Q) — 1122KB
• csgp-033124xex311.htm (EX-31.1) — 11KB
• csgp-033124xex312.htm (EX-31.2) — 11KB
• csgp-033124xex321.htm (EX-32.1) — 7KB
• csgp-033124xex322.htm (EX-32.2) — 7KB
• csgp-20240331_g1.jpg (GRAPHIC) — 32KB
• 0001057352-24-000059.txt (&nbsp;) — 7312KB
• csgp-20240331.xsd (EX-101.SCH) — 54KB
• csgp-20240331_cal.xml (EX-101.CAL) — 95KB
• csgp-20240331_def.xml (EX-101.DEF) — 193KB
• csgp-20240331_lab.xml (EX-101.LAB) — 641KB
• csgp-20240331_pre.xml (EX-101.PRE) — 442KB
• csgp-20240331_htm.xml (XML) — 1122KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Income 6 Condensed Consolidated Balance Sheets 7 Condensed Consolidated Statements of Changes in Stockholders' Equity 8 Condensed Consolidated Statements of Cash Flows 10 Notes to Condensed Consolidated Financial Statements 11

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 45

Controls and Procedures

Item 4. Controls and Procedures 46

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 47

Risk Factors

Item 1A. Risk Factors 47

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 48

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 48

Other Information

Item 5. Other Information 48

Exhibits

Item 6. Exhibits 49

Signatures

Signatures 50 2 Glossary of Terms The following abbreviations or acronyms used in this Quarterly Report on Form 10-Q (this "Report") are defined below: Abbreviation or Acronym Definition 2020 Credit Agreement The second amended and restated credit agreement, which amended and restated in its entirety the then-existing credit agreement originally entered into on April 1, 2014, dated July 1, 2020, as amended by the first amendment to the second amended and restated credit agreement, dated May 8, 2023. 2023 Form 10-K CoStar Group's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 21, 2024 ASC Accounting Standards Codification ASU Accounting Standards Update 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 CECL Current expected credit losses CODM Chief Operating Decision Maker CoStar Group (also the "Company," "we," "us" or "our") The legal entity, CoStar Group, Inc., a Delaware corporation, one or more of its consolidated subsidiaries or operating segments, or the entirety of CoStar Group, Inc. and its consolidated subsidiaries CoStar Group Share A share of the common stock of the Company, par value $0.01 per share CoStar UK The legal entity, CoStar UK Limited, a wholly owned subsidiary of CoStar Group Covenant Suspension Period A period of time defined in the 2020 Credit Agreement in which we maintain a corporate investment grade rating from any two of Standard & Poor's Rating Services, Fitch Ratings, Inc. or Moody's Investors Services, Inc. and no event of default is continuing CRI CoStar Realty Information, Inc., a Delaware corporation and wholly owned subsidiary of CoStar Group, Inc. DSUs Deferred Stock Units EBITDA Net income before interest income or

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements COSTAR GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) Three Months Ended March 31, 2024 2023 Revenues $ 656.4 $ 584.4 Cost of revenues 141.2 119.2 Gross profit 515.2 465.2 Operating expenses: Selling and marketing (excluding customer base amortization) 366.1 226.3 Software development 82.4 66.6 General and administrative 98.5 89.5 Customer base amortization 11.0 10.6 558.0 393.0 (Loss) income from operations ( 42.8 ) 72.2 Interest income, net 56.2 43.5 Other (expense) income, net ( 1.9 ) 0.6 Income before income taxes 11.5 116.3 Income tax expense 4.8 29.2 Net income $ 6.7 $ 87.1 Net income per share - basic $ 0.02 $ 0.22 Net income per share - diluted $ 0.02 $ 0.21 Weighted-average outstanding shares - basic 405.6 404.5 Weighted-average outstanding shares - diluted 407.3 406.2 See accompanying notes. 5 COSTAR GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) (unaudited) Three Months Ended March 31, 2024 2023 Net income $ 6.7 $ 87.1 Other comprehensive (loss) income, net of tax Foreign currency translation adjustment ( 4.3 ) 4.1 Total other comprehensive (loss) income, net of tax ( 4.3 ) 4.1 Total comprehensive income 2.4 91.2 See accompanying notes. 6 COSTAR GROUP, INC. CON DENSED CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 4,951.6 $ 5,215.9 Accounts receivable 218.7 213.2 Less: Allowance for credit losses ( 21.3 ) ( 23.2 ) Accounts receivable, net 197.4 190.0 Prepaid expenses and other current assets 67.2 70.2 Total current assets 5,216.2 5,476.1 Deferred income taxes, net 4.3 4.3 Property and equipment, net 791.1 472.2 Lease right-of-use assets 74.8 79.8 Goodwill 2,383.7 2,386.2 Intangible assets, net 365.0 313.7 Deferred commission costs, net 179.0 167.7 Deposits and ot

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