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CoStar Group Full Year and Fourth Quarter 2020 Revenues Increased 19% Year-over-Year

·14-min read

Traffic to CoStar Group’s Marketplaces Grew 29% in the Fourth Quarter

CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces, announced today that revenue for the year ended December 31, 2020, was $1.66 billion, an increase of 19% over revenue of $1.4 billion for the full year of 2019. Revenue for the fourth quarter ended December 31, 2020, was $444 million, an increase of 19% over revenue of $375 million for the fourth quarter of 2019.

Net income for the year ended December 31, 2020, was $227 million, or $5.93 per diluted share. EBITDA for the full year of 2020 was $406 million and includes one-time charges of $59.5 million related to the now terminated RentPath acquisition. Excluding these one-time charges, EBITDA for the full year of 2020 was $466 million, an increase of 5% compared to EBITDA of $445 million for the full year of 2019. Net Income, excluding the one-time charges, was approximately $271 million, or $7.08 per diluted share.

Adjusted EBITDA (which excludes stock-based compensation, acquisition and integration related costs and other items as described below) for the fourth quarter ended December 31, 2020, was $167 million, an increase of 18% compared to adjusted EBITDA of $142 million for the fourth quarter of 2019. Adjusted EBITDA for the year ended December 31, 2020 was $553 million, an increase of 9% compared to adjusted EBITDA of $507 million for the full year of 2019.

"2020 was an exceptional year for CoStar Group in many ways," said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. "Following the initial pandemic disruption early in the year, we demonstrated that our business is strongly countercyclical as our sales rebounded strongly in the second half of the year. In the fourth quarter, we delivered annualized net new sales of $49 million, bringing our total sales bookings to over $100 million in the second half of 2020. Revenue increased by over a quarter of a billion dollars in 2020. I am particularly pleased that CoStar Suite had its best sales quarter of 2020 in the fourth quarter, more than doubling the third quarter sales level. Unique visitors to our marketplaces increased by over 20% for the year and by 29% in the fourth quarter as the pandemic led more people to shop for real estate online. We raised $2.7 billion in the debt and equity markets and completed the acquisitions of Ten-X, Emporis, and Homesnap, and are well into developing additional important acquisition opportunities – all while working remotely."

"Apartments.com turned in its strongest performance since we first launched the platform in 2015," continued Florance, "with revenues growing 22% to almost $600 million. Apartments.com net new sales increased 35% for the year, network visits grew 20% to over 1 billion in 2020, and quality leads to our customers increased over 20%. We believe that our increased investment in marketing for Apartments.com in 2020 was a key driver in our performance and produced outstanding results."

The LoopNet marketplace network also had a record year, with revenue growth of 20% in 2020 and average monthly unique visitors of approximately 9.4 million in the fourth quarter of 2020, an increase of 37% over the fourth quarter of 2019. Our highest ad levels — gold, diamond, and platinum — are proving to be strongly countercyclical, with revenue growing almost 50% in 2020 and net new sales increasing 100% during the year. In 2020, we invested in marketing and successfully accelerated Apartments.com growth. In 2021, we plan to significantly accelerate our investment in LoopNet’s marketing and sales force and believe we will similarly accelerate LoopNet’s growth.

Year 2019-2020 Quarterly Results - Unaudited

(in millions, except per share data)

2019

2020

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Revenues

$328

$344

$353

$375

$392

$397

$426

$444

Net income

85

63

79

88

73

60

58

36

Net income per share - diluted

2.33

1.73

2.15

2.39

1.98

1.60

1.48

0.91

Weighted average outstanding shares - diluted

36.6

36.6

36.7

36.7

36.8

37.7

39.4

39.4

EBITDA

113

94

113

125

100

109

108

88

Adjusted EBITDA

125

110

129

142

124

129

134

167

Non-GAAP net income

92

82

96

103

90

88

89

112

Non-GAAP net income per share - diluted

2.53

2.23

2.61

2.82

2.44

2.34

2.26

2.85

Non-GAAP net income (which excludes amortization of acquired intangible assets, stock-based compensation and other items as described below) for the full year of 2020 was $380 million or $9.91 per diluted share. Non-GAAP net income for the fourth quarter of 2020 was $112 million or $2.85 per diluted share.

2021 Outlook

The Company expects revenue in the range of $1.925 billion to $1.945 billion for the full year of 2021, representing growth of approximately 17% year-over-year at the midpoint of the range. This guidance includes an estimated 2021 revenue contribution from Homesnap of approximately $50 million. We expect revenue for the first quarter of 2021 in the range of $450 million to $455 million, representing revenue growth of 15% year-over-year at the midpoint of the range.

The Company expects adjusted EBITDA in a range of $640 million to $650 million for the full year of 2021, an increase of 17% at the midpoint of the range compared to 2020. Homesnap is expected to have negative adjusted EBITDA of approximately $5 million for the year. For the first quarter of 2021, the Company expects adjusted EBITDA in a range of $140 million to $145 million.

We expect full year 2021 non-GAAP net income per diluted share in a range of $10.83 to $11.03 based on 39.7 million shares. For the first quarter of 2021, we expect non-GAAP net income per diluted share in a range of $2.33 to $2.43 based on 39.5 million shares. These ranges include an estimated non-GAAP tax rate of 25% for the full year and the first quarter 2021.

The preceding forward-looking statements reflect CoStar Group’s expectations as of February 23, 2021, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations and trends. Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, including uncertainties as a result of the COVID-19 pandemic and responses to it by, and the impact on, global economies, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.

Reconciliation of EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share to their GAAP basis results are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income, can be found within the tables included in this release.

Non-GAAP Financial Measures

For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refer to the Company’s latest periodic report.

EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before interest (expense) income and other (expense) income, loss on debt extinguishment, income taxes, depreciation and amortization.

Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, and settlements and impairments incurred outside the Company’s normal course of business.

Non-GAAP net income is a non-GAAP financial measure determined by adjusting GAAP net income attributable to CoStar Group for stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, settlement and impairment costs incurred outside the Company's normal course of business and loss on debt extinguishment, as well as amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. In 2020, the Company is assuming a 25% tax rate in order to approximate our statutory corporate tax rate excluding the impact of discrete items.

Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share. For periods with GAAP net losses and non-GAAP net income, the weighted average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.

Earnings Conference Call

Management will conduct a conference call at 5:00 PM EST on Tuesday, February 23, 2021 to discuss earnings results for the fourth quarter and year ended 2020 and the Company’s outlook.

The audio portion of the conference call will be broadcast live over the Internet at investors.costargroup.com. To participate in the conference call, please register online in advance at http://www.directeventreg.com/registration/event/6192488 . After registering, participants will receive dial-in information as well as a passcode and registrant ID. At the time of the call, participants will dial in using the numbers on the confirmation email and enter their passcode and ID, upon which they will be entered into the conference.

The webcast replay will also be available in the Investors section of CoStar Group's website for a period of time following the call.

CoStar Group, Inc.

Condensed Consolidated Statements of Operations - Unaudited

(in thousands, except per share data)

Three Months Ended
December 31,

Year Ended
December 31,

2020

2019

2020

2019

Revenues

$

444,393

$

374,726

$

1,659,019

$

1,399,719

Cost of revenues

78,154

74,996

308,968

289,239

Gross profit

366,239

299,730

1,350,051

1,110,480

Operating expenses:

Selling and marketing (excluding customer base amortization)

133,576

99,845

535,778

408,596

Software development

41,573

36,580

162,916

125,602

General and administrative

118,100

50,797

299,698

178,740

Customer base amortization

17,780

11,522

62,457

33,995

311,029

198,744

1,060,849

746,933

Income from operations

55,210

100,986

289,202

363,547

Interest (expense) income

(7,914)

3,439

(17,395)

16,742

Other (expense) income

(855)

9,880

(827)

10,660

Income before income taxes

46,441

114,305

270,980

390,949

Income tax expense

10,652

26,378

43,852

75,986

Net income

$

35,789

$

87,927

$

227,128

$

314,963

Net income per share - basic

$

0.91

$

2.42

$

5.97

$

8.67

Net income per share - diluted

$

0.91

$

2.39

$

5.93

$

8.60

Weighted-average outstanding shares - basic

39,137

36,359

38,073

36,310

Weighted-average outstanding shares - diluted

39,395

36,674

38,326

36,630

CoStar Group, Inc.

Reconciliation of Non-GAAP Financial Measures - Unaudited

(in thousands, except per share data)

Reconciliation of Net Income to Non-GAAP Net Income

Three Months Ended
December 31,

Year Ended
December 31,

2020

2019

2020

2019

Net income

$

35,789

$

87,927

$

227,128

$

314,963

Income tax expense

10,652

26,378

43,852

75,986

Income before income taxes

46,441

114,305

270,980

390,949

Amortization of acquired intangible assets

24,784

17,406

88,132

55,352

Stock-based compensation expense

12,667

13,271

54,104

52,255

Acquisition and integration related costs

65,892

3,651

92,523

6,679

Restructuring and related costs

413

3,054

Other (income) expense

(10,750)

113

(10,750)

Non-GAAP income before income taxes

149,784

137,883

506,265

497,539

Assumed rate for income tax expense *

25

%

25

%

25

%

25

%

Assumed provision for income tax expense

(37,446)

(34,470)

(126,566)

(124,385)

Non-GAAP net income

$

112,338

$

103,413

$

379,699

$

373,154

Net income per share - diluted

$

0.91

$

2.39

$

5.93

$

8.60

Non-GAAP net income per share - diluted

$

2.85

$

2.82

$

9.91

$

10.19

Weighted average outstanding shares - basic

39,137

36,359

38,073

36,310

Weighted average outstanding shares - diluted

39,395

36,674

38,326

36,630

* A 25% tax rate is assumed for 2020 and 2019, which approximates our statutory federal and state corporate tax rate.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

Three Months Ended
December 31,

Year Ended
December 31,

2020

2019

2020

2019

Net income

$

35,789

$

87,927

$

227,128

$

314,963

Amortization of acquired intangible assets in cost of revenues

7,004

5,854

25,675

21,357

Amortization of acquired intangible assets in operating expenses

17,780

11,552

62,457

33,995

Depreciation and other amortization

8,249

6,524

28,812

25,813

Interest expense (income)

7,914

(3,439)

17,395

(16,742)

Other expense (income)

855

(9,880)

827

(10,660)

Income tax expense

10,652

26,378

43,852

75,986

EBITDA

$

88,243

$

124,916

$

406,146

$

444,712

Stock-based compensation expense

12,667

13,271

54,104

52,255

Acquisition and integration related costs

65,892

3,651

92,523

6,679

Restructuring and related costs

413

3,054

Adjusted EBITDA

$

166,802

$

141,838

$

553,186

$

506,700

CoStar Group, Inc.

Condensed Consolidated Balance Sheets - Unaudited

(in thousands)

December 31,
2020

December 31,
2019

ASSETS

Current assets:

Cash, cash equivalents and restricted cash

$

3,755,912

$

1,070,731

Accounts receivable

119,059

96,788

Less: Allowance for credit losses

(15,110)

(4,548)

Accounts receivable, net

103,949

92,240

Prepaid expenses and other current assets

28,651

36,194

Total current assets

3,888,512

1,199,165

Long-term investments

10,070

Deferred income taxes, net

4,983

5,408

Property and equipment, net

126,325

107,529

Lease right-of-use assets

108,740

115,084

Goodwill

2,235,999

1,882,020

Intangible assets, net

426,745

421,196

Deferred commission costs, net

93,274

89,374

Deposits and other assets

15,856

9,232

Income tax receivable

14,986

14,908

Total assets

$

6,915,420

$

3,853,986

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

15,732

$

7,640

Accrued wages and commissions

80,998

53,087

Accrued expenses

110,305

38,680

Income taxes payable

16,316

10,705

Lease liabilities

32,648

29,670

Deferred revenue

74,851

67,274

Total current liabilities

330,850

207,056

Long-term debt, net

986,715

Deferred income taxes, net

72,991

87,096

Income taxes payable

25,282

20,521

Lease and other long-term liabilities

124,223

133,720

Total liabilities

$

1,540,061

$

448,393

Total stockholders’ equity

5,375,359

3,405,593

Total liabilities and stockholders’ equity

$

6,915,420

$

3,853,986

CoStar Group, Inc.

Condensed Consolidated Statements of Cash Flows - Unaudited

(in thousands)

Year Ended
December 31,

2020

2019

Operating activities:

Net income

$

227,128

$

314,963

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

116,944

81,165

Amortization of deferred commissions costs

60,516

53,421

Amortization of senior notes discount and issuance costs

1,658

876

Non-cash lease expense

26,326

22,748

Stock-based compensation expense

53,450

52,255

Deferred income taxes, net

(11,530)

8,220

Credit loss expense

25,212

10,978

Other operating activities, net

288

105

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(36,118)

(5,014)

Income taxes payable

10,352

(577)

Prepaid expenses and other current assets

1,936

(14,244)

Deferred commissions

(64,355)

(66,688)

Other assets

1,762

(648)

Accounts payable and other liabilities

100,846

17,751

Lease liabilities

(30,497)

(25,442)

Deferre...

2,188

7,911

Net cash provided by operating activities

486,106

457,780

Investing activities:

Proceeds from sale and settlement of investments

10,259

Purchases of property and equipment and other assets

(48,347)

(46,197)

Cash paid for acquisitions, net of cash acquired

(426,075)

(437,556)

Net cash used in investing activities

(464,163)

(483,753)

Financing activities:

Proceeds from long-term debt

1,744,210

Payments of debt issuance costs

(16,647)

Payments of long-term debt

(745,000)

Repurchase of restricted stock to satisfy tax withholding obligations

(38,867)

(27,577)

Proceeds from equity offering, net of transaction costs

1,689,971

Proceeds from exercise of stock options and employee stock purchase plan

30,280

25,080

Other financing activities

(1,650)

(1,657)

Net cash provided by (used in) financing activities

2,662,297

(4,154)

Effect of foreign currency exchange rates on cash and cash equivalents

941

442

Net increase in cash, cash equivalents and restricted cash

2,685,181

(29,685)

Cash, cash equivalents and restricted cash at the beginning of period

1,070,731

1,100,416

Cash, cash equivalents and restricted cash at the end of period

$

3,755,912

$

1,070,731

CoStar Group, Inc.

Disaggregated Revenues - Unaudited

(in thousands)

Three Months Ended December 31,

2020

2019

North America

International

Total

North America

International

Total

Information and analytics

CoStar Suite

$

160,842

$

7,896

$

168,738

$

154,152

$

7,107

$

161,259

Information services

27,048

6,930

33,978

24,318

5,030

29,348

Online marketplaces

Multifamily

160,370

160,370

130,168

130,168

Commercial property and land

81,129

178

81,307

53,846

105

53,951

Total revenues

$

429,389

$

15,004

$

444,393

$

362,484

$

12,242

$

374,726

Year Ended December 31,

2020

2019

North America

International

Total

North America

International

Total

Information and analytics

CoStar Suite

$

634,205

$

30,530

$

664,735

$

590,222

$

27,576

$

617,798

Information services

104,117

25,953

130,070

76,950

11,496

88,446

Online marketplaces

Multifamily

598,555

598,555

490,631

490,631

Commercial property and land

265,225

434

265,659

202,264

580

202,844

Total revenues

$

1,602,102

$

56,917

$

1,659,019

$

1,360,067

$

39,652

$

1,399,719

CoStar Group, Inc.

Results of Segments - Unaudited

(in thousands)

Three Months Ended
December 31,

Year Ended
December 31,

2020

2019

2020

2019

EBITDA

North America

$

88,241

$

125,457

$

410,852

$

451,699

International

2

(541)

(4,706)

(6,987)

Total EBITDA

$

88,243

$

124,916

$

406,146

$

444,712

CoStar Group, Inc.

Reconciliation of Non-GAAP Financial Measures with 2019-2020 Quarterly Results - Unaudited

(in millions, except per share data)

Reconciliation of Net Income to Non-GAAP Net Income

2019

2020

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Net income

$85.2

$63.2

$78.6

$87.9

$72.8

$60.4

$58.2

$35.8

Income tax expense

12.5

16.8

20.3

26.4

5.6

16.9

10.7

10.7

Income before income taxes

97.7

80.0

98.9

114.3

78.4

77.3

68.9

46.4

Amortization of acquired intangible assets

13.2

12.2

12.5

17.4

17.5

21.0

24.9

24.8

Stock-based compensation expense

12.0

13.8

13.1

13.3

15.2

9.5

16.7

12.7

Acquisition and integration related costs

0.2

0.5

2.3

3.7

8.7

10.0

7.9

65.9

Restructuring and related costs

0.1

2.2

0.8

0.4

Other (income) expense

(10.8)

0.1

Non-GAAP income before income taxes

123.2

108.7

127.6

137.9

119.8

117.8

118.9

149.8

Assumed rate for income tax expense *

25%

25%

25%

25%

25%

25%

25%

25%

Assumed provision for income tax expense

(30.8)

(27.2)

(31.9)

(34.5)

(30.0)

(29.5)

(29.7)

(37.5)

Non-GAAP net income

$92.4

$81.5

$95.7

$103.4

$89.8

$88.3

$89.2

$112.3

Non-GAAP net income per share - diluted

$2.53

$2.23

$2.61

$2.82

$2.44

$2.34

$2.26

$2.85

Weighted average outstanding shares - basic

36.2

36.3

36.3

36.4

36.5

37.5

39.2

39.1

Weighted average outstanding shares - diluted

36.6

36.6

36.7

36.7

36.8

37.7

39.4

39.4

* A 25% tax rate is assumed for 2020 and 2019, which approximates our statutory federal and state corporate tax rate.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

2019

2020

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Net income

$85.2

$63.2

$78.6

$87.9

$72.8

$60.4

$58.2

$35.8

Amortization of acquired intangible assets

13.2

12.2

12.5

17.4

17.5

21.0

24.9

24.8

Depreciation and other amortization

6.5

6.5

6.3

6.5

6.8

7.0

6.8

8.2

Interest (income) expense

(4.2)

(4.7)

(4.4)

(3.4)

(1.7)

3.6

7.5

7.9

Other (income) expense

(0.5)

(0.3)

(9.9)

(0.8)

0.4

0.3

0.9

Income tax expense

12.5

16.8

20.3

26.4

5.6

16.9

10.7

10.7

EBITDA

$113.2

$93.5

$113.0

$124.9

$100.2

$109.3

$108.4

$88.3

Stock-based compensation expense

12.0

13.8

13.1

13.3

15.1

9.5

16.7

12.7

Acquisition and integration related costs

0.2

0.5

2.3

3.7

8.7

10.0

7.9

65.9

Restructuring and related costs

0.1

2.2

0.8

0.4

Adjusted EBITDA

$125.5

$110.0

$129.2

$141.9

$124.0

$128.8

$133.4

$166.9

CoStar Group, Inc.

Reconciliation of Forward-Looking Guidance - Unaudited

(in thousands, except per share data)

Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income

Guidance Range

Guidance Range

For the Three Months

For the Year Ending

Ending March 31, 2021

December 31, 2021

Low

High

Low

High

Net income

$

64,000

$

70,000

$

313,000

$

324,000

Income tax expense

11,000

12,000

89,000

92,000

Income before income taxes

75,000

82,000

402,000

416,000

Amortization of acquired intangible assets

24,000

24,000

92,000

92,000

Stock-based compensation expense

17,000

16,000

68,000

66,000

Acquisition and integration related costs

7,000

6,000

12,000

10,000

Non-GAAP income before income taxes

123,000

128,000

574,000

584,000

Assumed rate for income tax expense *

25

%

25

%

25

%

25

%

Assumed provision for income tax expense

(30,800)

(32,000)

(144,000)

(146,000)

Non-GAAP net income

$

92,200

$

96,000

$

430,000

$

438,000

Net income per share - diluted

$

1.62

$

1.77

$

7.88

$

8.16

Non-GAAP net income per share - diluted

$

2.33

$

2.43

$

10.83

$

11.03

Weighted average outstanding shares - diluted

39,500

39,500

39,700

39,700

* A 25% tax rate is assumed, which approximates our statutory federal and state corporate tax rate.

Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA

Guidance Range

Guidance Range

For the Three Months

For the Year Ending

Ending March 31, 2021

December 31, 2021

Low

High

Low

High

Net income

$

64,000

$

70,000

$

313,000

$

324,000

Amortization of acquired intangible assets

24,000

24,000

92,000

92,000

Depreciation and other amortization

9,000

9,000

32,000

32,000

Interest and other expense, net

8,000

8,000

34,000

34,000

Income tax expense

11,000

12,000

89,000

92,000

Stock-based compensation expense

17,000

16,000

68,000

66,000

Acquisition and integration related costs

7,000

6,000

12,000

10,000

Adjusted EBITDA

$

140,000

$

145,000

$

640,000

$

650,000

About CoStar Group, Inc.

CoStar Group, Inc. (NASDAQ: CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality sector. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Realla is the UK’s most comprehensive commercial property digital marketplace. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe, Canada and Asia with a staff of over 4,600 worldwide, including the industry’s largest professional research organization. For more information, visit www.costargroup.com.

This news release and the Company’s earnings conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar's plans, objectives, expectations, beliefs and intentions and other statements including words such as "hope," "anticipate," "may," "believe," "expect," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. The following factors, among others, could cause or contribute to such differences: uncertainty surrounding the impact of the COVID-19 pandemic, including volatility in the international and U.S. economy, worker absenteeism or decreased productivity, quarantines or other travel or health-related restrictions; the length and severity of the COVID-19 pandemic; the pace of recovery following the COVID-19 pandemic; government and private actions taken to control the spread of COVID-19; the risk that the trends stated or implied by this release or in the earnings conference call cannot or will not be sustained at the current pace or may increase or decrease, including trends related to revenue, net income, non-GAAP net income, EBITDA, adjusted EBITDA, site traffic and visitors, leads generated, and sales; the risk that the Company is unable to sustain current revenue, earnings and net new sales bookings growth rates or increase them; the risk that acquisition opportunities do not continue to develop or that any completed acquisitions do not produce the expected results; the risk that the Company’s investment plans change or that those investments do not produce the expected results, including accelerated growth; the risk that revenues for the first quarter and full year 2021 will not be as stated in this press release; the risk that Homesnap revenues for 2021 differ from expectations; the risk that net income for the first quarter and full year 2021 will not be as stated in this press release; the risk that adjusted EBITDA for the first quarter and full year 2021 will not be as stated in this press release; the risk that Homesnap adjusted EBITDA for 2021 differs from expectations; the risk that non-GAAP net income and non-GAAP net income per diluted share for the first quarter and full year 2021 will not be as stated in this press release; and the risk that the tax rate estimates stated in this press release may change. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2019, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020, each of which is filed with the SEC, including in the "Risk Factors" section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210223006069/en/

Contacts

Scott Wheeler
Chief Financial Officer
(202) 336-6920
swheeler@costar.com

Bill Warmington
Vice President
Investor Relations
(202) 346-5661
wwarmington@costar.com