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CoStar Group Grows Year-Over-Year Revenue 36% And EBITDA 49%

Stocks in this article: CSGP

WASHINGTON, July 23, 2014 (GLOBE NEWSWIRE) -- CoStar Group, Inc. (Nasdaq:CSGP), the leading provider of commercial real estate information, analytics and online marketplaces, announced today that revenue for the second quarter of 2014 was $147.7 million, an increase of approximately 36% over revenue of $109.0 million for the second quarter of 2013.

EBITDA in the second quarter of 2014 increased to $37.6 million compared to $25.3 million in the second quarter of 2013, which represents an increase of $12.3 million or 49% year-over-year. Adjusted EBITDA (defined below) was $45.3 million in the second quarter of 2014 versus $32.6 million in the second quarter of 2013, which is an increase of 39% year-over-year.

"In the second quarter of 2014, we closed our acquisition of, one of the leading internet apartment marketplaces," said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. "We are ahead of schedule and well on our way towards reaching three key goals with We have achieved approximately $5.2 million in revenue synergies by converting 2,700 communities from indirect wholesale purchases to direct sales, which drove an overall 15% increase in our average revenue per apartment community. We have achieved approximately $5 million in annualized cost synergies. We also believe we have significantly improved the website which has resulted in a 27% quarter-over-quarter increase in leads generated for our clients. Overall, revenue growth accelerated to 16% year-over-year.

Florance continued, "Our LoopNet marketplace continues to show vibrant growth with 44.2 million profile views in the quarter, up 18% year-over-year. LoopNet revenues for the quarter were $27.5 million growing 6.2% over the prior quarter and LoopNet annual subscription revenue grew 148% year-over-year to $41.3 million in annualized revenue in the second quarter."

"The core CoStar U.S. product lines showed accelerating sales growth achieving $9.7 million of net new sales of subscription services on annual contracts which is an increase of 17% quarter-over-quarter and 6% year-over-year. Overall company-wide net new sales of subscription services on annual contracts totaled $16 million for the second quarter of 2014," stated Florance.

Year 2013-2014 Quarterly Results - Unaudited
(in millions, except per share data)
  2013 2014
  Q1 Q2 Q3 Q4 Q1 Q2
Revenues $104.0 $109.0 $112.3 $115.6 $119.1 $147.7
EBITDA 7.6 25.3 29.8 31.5 27.0 37.6
Net income (loss) (2.4) 8.3 11.1 12.8 9.7 8.2
Net income (loss) per share - diluted (0.09) 0.29 0.39 0.45 0.34 0.28
Weighted average outstanding shares - diluted 27.4 28.2 28.3 28.4 28.8 29.5
Adjusted EBITDA 25.7 32.6 37.7 40.8 37.0 45.3
Non-GAAP Net Income 13.0 17.2 20.2 22.2 19.8 23.5
Non-GAAP Net Income per share - diluted 0.47 0.61 0.71 0.78 0.69 0.80

"We raised $529 million in net proceeds in our successful equity offering to invest in the continued growth of the Company and to better position us for potential strategic acquisitions," added Florance.

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