CoStar Group Marks 50 Straight Quarters of Double-Digit Revenue Growth
CoStar Group, a leading provider of online real estate marketplaces, once again had a profitable quarter as noted in its latest earnings report. For the quarter ending September 30, the company brought in revenue to the tune of $625 million, up 12 percent over revenue Q3 of 2022.
The benchmark means that CoStar has now had 50 consecutive quarters of double-digit revenue growth. Net income was $91 million in the third quarter, an increase of 25 percent over the prior year.
“CoStar Group delivered strong results this quarter on our two principal fronts,” said Andy Florance, Founder and CEO of CoStar Group. “First, our commercial information and marketplace businesses are fortress strong in a turbulent market with revenue growing 14 percent year-over-year and margins approaching 40 percent. As we move into the fourth quarter, our adjusted EBITDA, for our commercial information and marketplace businesses, is approaching $1,000,000,000 annualized. We continue to generate strong net new bookings with $65 million of net new bookings in the third quarter. On the second front, we are investing aggressively, but prudently, in Homes.com with the goal of unlocking the enormous potential of becoming the leading, successful U.S. residential real estate portal. In September we celebrated a major milestone on that road to success with 100 million unique visitors to Homes.com.”
Of particular note, the company says that unique visitors to Homes.com in September grew 1,290 percent year-over-year. CoStar expects revenue in the range of $2.445-$2.450 billion for the full year of 2023, representing year-over-year growth of approximately 12 percent at the midpoint of the range.
Anywhere Remains Profitable Despite Q3 Revenue Decline
The market have slowed but there was no stall at Anywhere. The brokerage announced that despite a revenue decline in Q3, the company remained profitable for the second consecutive quarter, according to its latest earnings report.
“Anywhere led through a difficult housing market to deliver considerable profitability and achieve substantial debt reduction,” said Ryan Schneider, Anywhere president and CEO. “We accelerated our strategic progress, including expanding our high-margin franchise business, integrating the consumer transaction experience, taking advantage of the better competitive environment, and putting significant litigation behind us, to set Anywhere up for powerful momentum as the housing market improves.”
The company posted revenue of $1.6 billion, a decrease of 12 percent year-over-year. Reported net income in Q3 was $129 million.
Anywhere also reduced its debt by $281 million through successful debt exchanges, open market bond repurchases and repayment of a portion of our revolver balance. In all, the company realized third quarter cost savings of approximately $60 million and over $160 million year-to-date and completed actions to deliver $200 million for the full year. Free cash flow stood at $95 million as of September 30.