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CoStar Group Raises Revenue Forecast Amid Increased Website Traffic
ByAinvest
Tuesday, Apr 29, 2025 5:18 pm ET1min read
CoStar Group has raised its annual revenue forecast due to increasing traffic to its websites, specializing in commercial real estate information and analytics. The company's net sales are primarily from the sale of online marketplaces (93%) and information services (7%), with North America accounting for 96.4% of net sales.
CoStar Group, Inc. (NASDAQ: CSGP) has reported a significant increase in revenue for the first quarter of 2025, driven by robust growth across its commercial real estate businesses and online marketplaces. The company's Q1 2025 revenue reached $732 million, marking a 12% year-over-year increase from $656 million in Q1 2024 [1].Key highlights from the quarter include a strong performance in net new bookings, with CoStar and LoopNet showing impressive year-over-year growth. CoStar's net new bookings increased by 68%, while LoopNet experienced a 200% increase, reaching its highest levels since Q3 2022 and Q3 2023, respectively. Additionally, Apartments.com added 4,300 properties in Q1 2025, the most in a single quarter since Q1 2016 [1].
The company's Homes.com platform has also seen substantial growth, with its sales force expanding to 370 representatives and an expected increase to 500 by the end of June. In April, Homes.com's demo-to-close rate reached over 50%, the highest ever recorded by any CoStar Group sales team [1].
CoStar Group's acquisition of Matterport in February 2025 has also contributed to its growth, with the technology being integrated to enhance the presentation of physical real estate spaces online [1].
The company expects revenue for the full year 2025 to range between $3.115 billion and $3.155 billion, representing approximately 15% year-over-year growth at the midpoint of the range. The second quarter of 2025 is expected to see revenue growth of approximately 14% year-over-year, with adjusted EBITDA for the full year 2025 projected to be between $355 million and $385 million [1].
References:
[1] https://www.morningstar.com/news/business-wire/20250429388378/costar-group-first-quarter-2025-revenue-increased-12-year-over-year
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