Yahoo Finance CoStar (CSGP) Q4 Earnings Top Estimates, Revenues Rise Y/Y
CoStar Group CSGP reported fourth-quarter 2022 non-GAAP earnings of 38 cents per share, beating the Zacks Consensus Estimate by 11.76% and increasing 8.6% year over year.
Revenues of $573.3 million beat the Zacks Consensus Estimate by 0.95% and increased 13.1% year over year.
Top-Line Details
CoStar revenues (38.2% of revenues) increased 15.1% year over year to $219.1 million. Apartments.com revenues increased 16% year over year to $198 million. Net new bookings jumped 177% year over year.
CoStar launched Apartments.com in Canada in the fourth quarter, marking the brand's first expansion outside the United States.
CoStar Group, Inc. Price and EPS Surprise
CoStar Group, Inc. price-eps-surprise | CoStar Group, Inc. Quote
The company’s CoStar Lender product generated almost $6 million in net new sales and 140 new customers.
Information Services revenues (7.1% of revenues) increased 13.3% year over year to $40.7 million. Multifamily revenues (34.5% of revenues) increased 16.4% year over year to $198 million.
LoopNet revenues (10.7% of revenues) were up 12.1% year over year to $61.3 million.
Fourth-quarter residential revenues (2.8% of revenues) were $16.2 million, declining 21.6% year over year.
Other marketplace revenues (6.6% of revenues) increased 8.4% year over year to $38.1 million.
Operating Details
In the reported quarter, selling and marketing, and general and administrative expenses as a percentage of revenues increased 290 basis points (bps) and 230 bps, respectively, on a year-over-year basis.
Software development expenses as a percentage of revenues decreased 20 bps, whereas customer base amortization expenses decreased 150 bps.
The adjusted EBITDA margin in the fourth quarter of 2022 was 31.8%, contracting 640 bps year over year.
Balance Sheet and Cash Flow Statement
CoStar reported cash and cash equivalents of $4.97 billion as of Dec 31, 2022, compared with $4.78 billion as of Sep 30, 2022.
The company, however, had a long-term debt of $989.2 million as of Dec 31, 2022.
It generated $293.59 million in cash from operations compared with $293.6 million in the previous quarter.
Guidance
CoStar expects 2023 revenues between $2.46 billion and $2.48 billion, indicating revenue growth of 13% at the mid-point of this range. First-quarter 2023 revenues are expected between $575 million and $580 million, indicating year-over-year growth of 12% at the mid-point.
The company expects adjusted EBITDA of $500-$520 million. For the first quarter of 2023, CoStar expects adjusted EBITDA of $111-$116 million.
Earnings are expected between $1.06 and $1.09 per share for 2023. Moreover, earnings are expected between 25 and 26 cents per share for the first quarter.
Stocks to Consider
CoStar currently carries a Zacks Rank #3 (Hold).
CSGP shares have gained 20.8% against the Zacks Computer and Technology sector’s decline of 16.8% in the past year.
Baidu BIDU, Everbridge EVBG and Frontier FYBR are some better-ranked stocks that investors can consider in the broader sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Baidu shares have declined 7.1% in the past year. BIDU is set to report its fourth-quarter 2022 results on Feb 22.
Everbridge shares have declined 22.7% in the past year. EVBG is set to report its fourth-quarter 2022 results on Feb 22.
Frontier shares have gained 6.1% in the past year. FYBR is set to report its fourth-quarter 2022 results on Feb 24.
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