CoStar Group Files Q3 2024 10-Q

TL;DR

**CoStar Group Q3 2024 10-Q filed. Financials and operations detailed.**

AI Summary

CoStar Group, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial data and disclosures relevant to investors and stakeholders are presented.

Why It Matters

This filing provides crucial insights into CoStar Group's financial health and operational performance during the third quarter of 2024, impacting investor decisions and market analysis.

Risk Assessment

Risk Level: medium — 10-Q filings inherently carry medium risk due to the detailed financial disclosures which can reveal performance trends, liabilities, and strategic shifts that may affect stock price.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 2024-10-23 — Filing Date (The date the report was officially submitted to the SEC.)

Key Players & Entities

• COSTAR GROUP, INC. (company) — Filer of the 10-Q
• 20240930 (date) — Period of Report
• 20241023 (date) — Filing Date

FAQ

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-20240930.htm (10-Q) — 1480KB
• csgp-093024xex311.htm (EX-31.1) — 11KB
• csgp-093024xex312.htm (EX-31.2) — 11KB
• csgp-093024xex321.htm (EX-32.1) — 7KB
• csgp-093024xex322.htm (EX-32.2) — 7KB
• csgp-20240930_g1.jpg (GRAPHIC) — 32KB
• 0001057352-24-000125.txt ( ) — 8605KB
• csgp-20240930.xsd (EX-101.SCH) — 54KB
• csgp-20240930_cal.xml (EX-101.CAL) — 100KB
• csgp-20240930_def.xml (EX-101.DEF) — 193KB
• csgp-20240930_lab.xml (EX-101.LAB) — 675KB
• csgp-20240930_pre.xml (EX-101.PRE) — 457KB
• csgp-20240930_htm.xml (XML) — 1507KB

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 49

Controls and Procedures

Item 4. Controls and Procedures 50

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 51

Risk Factors

Item 1A. Risk Factors 51

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 53

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 53

Other Information

Item 5. Other Information 53

Exhibits

Item 6. Exhibits 54

Signatures

Signatures 55 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, 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 and was replaced by the 2024 Credit Agreement in May 2024 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 2024 Credit Agreement On May 24, 2024, the Company entered into a credit agreement replacing the Company's 2020 Credit Agreement 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 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 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 expense, net; other income or expense, net; loss on debt extinguishment; income taxes; depreciation; and amortization ESG Environmental, Social, and Governance ESPP Employee Stock Purchase Plan EURIBOR Euro Interbank Offered Rate FASB Financi

— 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues $ 692.6 $ 624.7 $ 2,026.8 $ 1,814.9 Cost of revenues 140.6 123.7 417.6 355.2 Gross profit 552.0 501.0 1,609.2 1,459.7 Operating expenses: Selling and marketing (excluding customer base amortization) 331.2 266.9 1,055.7 743.2 Software development 81.0 67.9 243.0 197.8 General and administrative 105.8 94.4 314.3 274.4 Customer base amortization 10.3 10.2 31.5 31.3 528.3 439.4 1,644.5 1,246.7 Income (loss) from operations 23.7 61.6 ( 35.3 ) 213.0 Interest income, net 55.6 58.4 165.3 153.9 Other (expense) income, net ( 1.6 ) 0.5 ( 4.9 ) 1.6 Income before income taxes 77.7 120.5 125.1 368.5 Income tax expense 24.7 29.9 46.2 90.3 Net income $ 53.0 $ 90.6 $ 78.9 $ 278.2 Net income per share - basic $ 0.13 $ 0.22 $ 0.19 $ 0.69 Net income per share - diluted $ 0.13 $ 0.22 $ 0.19 $ 0.68 Weighted-average outstanding shares - basic 406.8 405.6 406.2 405.2 Weighted-average outstanding shares - diluted 408.0 407.2 407.6 406.7 See accompanying notes. 5 COSTAR GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income $ 53.0 $ 90.6 $ 78.9 $ 278.2 Other comprehensive income (loss), net of tax Foreign currency translation adjustment 18.0 ( 6.7 ) 13.5 0.8 Total other comprehensive income (loss), net of tax 18.0 ( 6.7 ) 13.5 0.8 Total comprehensive income $ 71.0 $ 83.9 $ 92.4 $ 279.0 See accompanying notes. 6 COSTAR GROUP, INC. CON DENSED CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 4,937.6 $ 5,215.9 Accounts receivable 202.4 213.2 Less: Allowance for credit los

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