CoStar Reports Record Q1 Revenue and Traffic Growth, Driven by Homes.com Launch

CoStar Group, a leading provider of online real estate marketplaces, information, and analytics, announced strong financial results for the first quarter of 2024. The company reported revenue of $656 million, up 12% from the same quarter in 2024, driven by increased consumer traffic on its websites and the successful launch of its Homes.com platform.

CoStar's net new bookings reached an all-time high of $86 million in Q1 2024, with 60% coming from commercial products and 40% from the new Homes.com membership product. The company's global website traffic also set a record, with an average of 170 million monthly unique visitors, a 93% increase from the previous year. The residential network traffic on Homes.com reached a record 156 million monthly unique visitors in March, making it one of the two most heavily trafficked residential marketplace portals in the U.S.

Why this matters: CoStar's strong performance and the successful launch of Homes.com demonstrate the company's ability to capitalize on the growing demand for online real estate services. The record-breaking website traffic and bookings highlight the increasing importance of digital platforms in the real estate industry.

Andy Florance, Founder and CEO of CoStar Group, expressed enthusiasm about the company's performance, stating, "We had an exceptional first quarter with outstanding revenue growth, record net new bookings, and the successful launch of Homes.com. Our focus on delivering value to our customers and expanding our offerings has positioned us well for continued growth and market leadership."

CoStar also announced a definitive agreement to acquire Matterport, a global leader in 3D digital twins and AI for the real estate industry, for $5.50 per share. The acquisition is expected to enhance CoStar's offerings by incorporating advanced 3D digital twin technologies across its platforms.

Both Apartments.com and CoStar surpassed $1 billion in annualized run rate revenue during the quarter, marking significant milestones for the company. Apartments.com revenue grew 21% year-over-year to $255 million, while LoopNet revenue increased 9% to $69 million.

CoStar raised its full-year guidance for 2024, with revenue expected to be in the range of $2.76 billion to $2.77 billion, representing a year-over-year growth of about 13% at the midpoint of the range. The company also expects non-GAAP net income per share in the range of $0.58 to $0.62 for the full year.

Florance concluded, "Our strong first-quarter results demonstrate the resilience and growth potential of our business. We are excited about the opportunities ahead and remain committed to delivering exceptional value to our customers and shareholders."

Key Takeaways

• CoStar reported strong Q1 2024 results with 12% revenue growth
• CoStar's net new bookings reached a record $86M, with 60% from commercial
• CoStar's website traffic set a record, with 170M monthly unique visitors
• CoStar to acquire Matterport, a leader in 3D digital twins for real estate
• CoStar raised full-year 2024 revenue guidance to $2.76B-$2.77B