Latest news with #CoStarSuite
Yahoo
25-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From CoStar's Q1 Earnings Call
CoStar's first quarter results were met with a marked negative market reaction, as concerns emerged regarding the company's forward outlook despite solid operational performance. Management pointed to ongoing double-digit revenue growth, with CEO Andy Florance highlighting strong momentum in the core commercial real estate data and marketplace businesses and the integration of recent acquisitions such as Matterport. However, Florance acknowledged continued headwinds in the broader commercial real estate environment, describing conditions as 'one of the worst commercial real estate environments in decades,' with high office vacancies and weak transaction volumes. The company also experienced significant cost reductions, particularly in the business, and noted a sharp improvement in customer retention metrics following product repositioning. Is now the time to buy CSGP? Find out in our full research report (it's free). Revenue: $732.2 million vs analyst estimates of $730 million (11.5% year-on-year growth, in line) Adjusted EPS: $0.19 vs analyst estimates of $0.11 (81.7% beat) Adjusted EBITDA: $65.6 million vs analyst estimates of $30.51 million (9% margin, significant beat) Revenue Guidance for the full year is $3.14 billion at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for the full year is $370 million at the midpoint, below analyst estimates of $389.9 million Operating Margin: -5.8%, in line with the same quarter last year Market Capitalization: $34.17 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Alexei Gogolev (JPMorgan) asked about the industry's response to Zillow's delayed market listing policy. CEO Andy Florance reported 'overwhelmingly negative' feedback from agents and positioned this as a competitive opportunity for Peter Christiansen (Citi) inquired about Matterport's integration timeline and monetization. Florance highlighted plans for deep product embedding and R&D expansion, while CFO Christian Lown emphasized expected reductions in customer cancellations as usage increases. George Tong (Goldman Sachs) questioned investment levels for and the impact of the Board's capital allocation committee. Lown confirmed investment plans remain unchanged, with cost savings being reallocated to sales force growth. Ryan Tomasello (KBW) asked about the deceleration in multifamily growth and the outlook for Lown explained that seasonal dynamics and new sales hires will drive acceleration in the second half, and the addition of experienced sales staff is expected to improve results. Stephen Sheldon (William Blair) queried the potential for more aggressive pricing in the CoStar Suite. Florance suggested that as market conditions improve, the company may pursue higher annual price increases, but will remain cautious if headwinds persist. Over the next few quarters, the StockStory team will focus on (1) the pace of sales force expansion and its impact on net new bookings, (2) the effectiveness of Matterport's integration in driving higher engagement and retention across the product suite, and (3) signs of improvement in commercial real estate transaction volumes and office vacancy rates. Execution on cost control and the ability to successfully monetize new product offerings will also be key indicators of progress. CoStar currently trades at $81, down from $82.61 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
03-05-2025
- Business
- Yahoo
Costar Group (CSGP): 'Bloomberg Of Commercial Real Estate'
Third Point Management, a New York-based investment advisor, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Third Point Offshore Fund returned nearly -3.7% in the first quarter of 2025. The first Quarter started with investor optimism regarding the new administration's anticipated deregulation and improved business policies. However, by the end of the quarter, concerns about trade policy, which peaked by the unclear tariff schedule released on 'Liberation Day' in early April, had shifted market sentiment to negative. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Third Point Management highlighted stocks such as CoStar Group, Inc. (NASDAQ:CSGP). CoStar Group, Inc. (NASDAQ:CSGP) is an information, analytics, and online marketplace services provider for commercial and residential property markets. The one-month return of CoStar Group, Inc. (NASDAQ:CSGP) was 0.30%, and its shares lost 14.68% of their value over the last 52 weeks. On May 1, 2025, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $76.58 per share with a market capitalization of $32.308 billion. Third Point Management stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q1 2025 investor letter: "CoStar Group, Inc. (NASDAQ:CSGP) is the leading vendor of real estate technology, often referred to as the 'Bloomberg of commercial real estate'. The company's portfolio includes data and software products (the 'CoStar Suite') and digital marketing platforms (LoopNet, We have long admired this collection of franchises, which provide the real estate industry with mission critical data, software, and services that are designed into workflows and function as a system of reference. They hold dominant market share, have low TAM penetration with a long runway for future growth, have significant untapped pricing power, and enjoy high margin business models with ample room for further margin expansion. These attributes have allowed CoStar's core business to compound EBITDA at a 20% CAGR over the past ten years, a level which we expect to sustain going forward. An elegant residential building set against the modern skyline. CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the fourth quarter which was 43 in the previous quarter. In the first quarter of 2025, CoStar Group, Inc. (NASDAQ:CSGP) reported revenue of $732 million, reflecting a 12% increase from Q1 2024. In the fourth quarter of 2024, revenue reached $709 million, also showing an 11% increase compared to Q4 2023. While we acknowledge the potential of CoStar Group, Inc. (NASDAQ:CSGP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered CoStar Group, Inc. (NASDAQ:CSGP) and shared stock picks from Charles Akre and John Neff with tremendous upside potential. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
