Real estate analytics firm CoStar Q3 revenue beats estimate on membership growth

Overview

• CoStar Q3 revenue grows 20% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beats consensus, rising 6% yr/yr

• Net new bookings up 92% yr/yr to $84 mln, boosting growth

Outlook

• CoStar expects Q4 2025 revenue between $885 mln and $895 mln

• CoStar raises full-year 2025 adjusted EBITDA guidance to $415 mln-$425 mln

• CoStar sees full-year 2025 non-GAAP EPS between $0.82 and $0.84

Result Drivers

• NET NEW BOOKINGS - Co achieved net new bookings of $84 mln, up 92% yr/yr, driven by Homes.com sales team

• MEMBERSHIP GROWTH - Homes.com Members increased to over 26,000, up nearly 150% since Q3 2024

• AI FEATURES - Launch of Smart Search on Homes.com using proprietary AI enhanced user search capabilities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for CoStar Group Inc is $100.00, about 21.9% above its October 27 closing price of $78.12

• The stock recently traded at 63 times the next 12-month earnings vs. a P/E of 75 three months ago

Press Release: ID:nBwZwbSVa

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