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Yahoo
13-05-2025
- Business
- Yahoo
CSGP Q1 Earnings Call: Product Expansion, Cost Controls, and Guidance in Focus
Real estate data provider CoStar Group (NASDAQ:CSGP) met Wall Street's revenue expectations in Q1 CY2025, with sales up 11.5% year on year to $732.2 million. The company expects next quarter's revenue to be around $772.5 million, close to analysts' estimates. Its non-GAAP profit of $0.16 per share was 46.8% above analysts' consensus estimates. 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: $0.16 vs analyst estimates of $0.11 (46.8% 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 Free Cash Flow was -$26 million, down from $136 million in the same quarter last year Market Capitalization: $31.8 billion CoStar's first quarter results reflected ongoing investment across its digital real estate platforms, with CEO Andy Florance emphasizing the continued strength in commercial information services and accelerating sales momentum in key brands like LoopNet, and the recently acquired Matterport. Management highlighted strong net new bookings and noted that operational cost controls contributed to profits above Wall Street's expectations, despite a challenging commercial real estate environment that has seen low transaction volumes and muted rent growth. Looking ahead, management attributed its full-year and next-quarter guidance to anticipated improvements in the real estate cycle and strategic expansion of sales capacity, especially at CFO Christian Lown reaffirmed that capital allocation would remain focused on scaling the sales force and integrating Matterport, while noting that cost-saving measures would continue to offset higher investments in growth initiatives. The company expects revenue growth to pick up in the second half of the year, driven in part by maturing sales teams and product integration. Management noted that revenue growth was supported by both product innovation and changes to go-to-market strategies, particularly in digital marketplaces. The following points summarize the most significant drivers and themes from the quarter: sales force expansion: CoStar added 56 new sales professionals in Q1 and plans further hiring, aiming to capitalize on a large addressable market in the multifamily segment and recent competitor exits. The absorption of experienced sales staff from Redfin's rent division was cited as a positive for pipeline growth and execution. LoopNet strategic pivot: A shift in sales strategy from focusing on selling high-value signature ads to broader subscription packages resulted in a surge in net new bookings. Management reported twice the productivity per sales representative compared to the prior year, reflecting improved alignment with customer needs. Matterport acquisition impact: The recently closed Matterport acquisition contributed to revenue and is expected to yield long-term benefits as the technology is embedded across CoStar's platforms. Management described opportunities to grow both R&D and sales, and to accelerate the adoption of Matterport's digital twin technology in real estate listings. brand and sales ramp: The dedicated sales force grew to 314 reps, with management pointing to improved Net Promoter Scores and a significant decline in early contract cancellations. The company's marketing campaign increased unaided brand awareness to 36%, while new pricing strategies and the launch of product options like Boost aim to further drive agent adoption. Cost optimization measures: Over $50 million in annualized savings were realized, primarily through reduced investment and a company-wide headcount reduction. These efforts helped deliver profitability above consensus, despite ongoing investments in product and brand expansion. Management's outlook for the remainder of the year centers on continued investment in sales capacity, integration of recent acquisitions, and gradual improvement in real estate markets. The company expects these trends to support revenue growth and margin improvement in the back half of the year. Scaling sales across platforms: Expansion of dedicated sales teams—especially for and expected to accelerate revenue growth as new hires mature and contribute to bookings. Integration of Matterport technology: Embedding Matterport's digital twin solutions across CoStar's ecosystem is seen as a lever for increasing customer engagement and reducing churn, with management citing opportunities for enhanced product differentiation. Real estate market recovery: Management believes that improving fundamentals in the commercial real estate sector, including falling vacancy rates and higher transaction volumes, will support higher pricing and increased product adoption, although ongoing market uncertainty remains a risk. Alexei Gogolev (JPMorgan): Asked about industry reactions to changes in listing rules and the competitive dynamics with Zillow; CEO Andy Florance described agent sentiment as overwhelmingly negative toward certain competitor moves, viewing it as an opportunity for CoStar. Peter Christiansen (Citi): Inquired about the integration and monetization plans for Matterport; Florance and CFO Christian Lown highlighted plans for deep product integration and expanded R&D, expecting usage to drive engagement and retention across platforms. George Tong (Goldman Sachs): Questioned the sustainability of cost reductions and capital allocation; Lown confirmed the $900 million investment plan remains unchanged, with cost management focused on reallocating spend to more productive growth initiatives. Ryan Tomasello (KBW): Sought clarity on the drivers behind revenue growth deceleration in multifamily for Q2 and confidence in acceleration later in the year; Lown pointed to seasonal factors and the ramping sales force, with optimism for the second half. Stephen Sheldon (William Blair): Asked if CoStar could become more aggressive with pricing for its core suite as market conditions improve; Florance indicated that stronger market conditions could lead to higher price adjustments and volume growth. In the coming quarters, the StockStory team will be watching (1) the ramp-up and productivity of new sales hires for and and their impact on net new bookings, (2) the pace and effectiveness of Matterport's integration and the rollout of new digital twin features, and (3) early signs of a real estate market recovery reflected in transaction volumes and vacancy trends. Continued execution on cost management and successful product launches will also be important markers of progress. CoStar currently trades at a forward P/E ratio of 71×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. 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 Exlservice (+354% 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
Yahoo
02-05-2025
- Business
- Yahoo
Last Macy's in the Dayton area up for sale
Macy's at the Dayton Mall is up for sale. [DOWNLOAD: Free WHIO-TV News app for alerts as news breaks] The 263,566 square retail building went up on the market on April 29, according to a listing on LoopNet. Last year, Macy's announced plans to close 65 stores by the end of 2025. TRENDING STORIES: LIVE UPDATES: Severe Thunderstorm Watch issued for some counties; Threat of damaging winds, hail Have you ever wondered why people have blue porch lights in Ohio? Zelle confirms issues with payments platform across US Macy's closed its location at the Fairfield Commons Mall in March. The location at the Dayton Mall was the last in the region. The next closest location is in the Kenwood Towne Center. [SIGN UP: WHIO-TV Daily Headlines Newsletter]
Yahoo
01-05-2025
- Business
- Yahoo
Why CoStar Group Inc (CSGP) Is Surging In 2025
We recently published a list of . In this article, we are going to take a look at where CoStar Group Inc (NASDAQ:CSGP) stands against other real estate stocks that are surging in 2025. For years, real estate stocks have been a source of anxiety for investors due to the scars of the Great Recession. That crisis has led to lingering skepticism, and many see real estate as a no-go zone today due to GDP growth turning negative quarter-over-quarter and expectations of a recession. Investors fear that a recession could drag these stocks down once more. However, these companies have learned from the Great Recession, and some of them have delivered stellar gains so far. It is a good idea to keep an eye on the winners, as they could outperform during market downturns. Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified in another article For this article, I screened the best-performing real estate stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An elegant residential building set against the modern skyline. Number of Hedge Fund Holders In Q4 2024: 56 CoStar Group Inc (NASDAQ:CSGP) is the leading provider of commercial real estate information, analytics, and online marketplaces, including platforms like and serving clients globally. The stock is up significantly so far in 2025 due to better-than-expected first quarter results announced on April 29, which showed 12% year-over-year revenue growth to $732 million and a 429% increase in adjusted EBITDA, alongside record new bookings for its core CoStar and LoopNet platforms and rapid expansion of its salesforce. The company also completed the acquisition of Matterport for $1.6 billion in February, which expanded its technology and product offerings and is expected to further accelerate revenue growth. Additionally, CoStar announced a nonbinding offer to acquire a significant stake in Australia's Domain Group. The consensus price target of $88.38 implies 8.87% upside. CSGP stock is up 15.52% year-to-date. Overall, CSGP ranks 14th on our list of real estate stocks that are surging in 2025. While we acknowledge the potential of CSGP, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CSGP but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Business Journals
23-04-2025
- Business
- Business Journals
Ten Pin Alley in Hilliard on sale for $6.9M
By submitting your information you are agreeing to our Privacy Policy and User Agreement . Join the Columbus Business First to unlock even more insights! A bowling-anchored entertainment venue is on the market. A Hilliard entertainment venue is for sale. Ten Pin Alley was recently listed for $6.9 million on LoopNet, an online commercial real estate marketplace. It is being marketed by The Mansour Group, a Marcus & Millichap brokerage. The venue at 5499 Ten Pin Alley features 24 bowling lanes, an arcade, laser tag, dining and private event rooms. The single-story, 32,827-square-foot building is located on 3.6 acres and includes 120 parking spaces. GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events It was built in 1961 and renovated in 2018. The $5 million expansion won an architecture and design award from Bowlers Journal International. Purdy Bowl Realty LLC has owned the site since 2006 when it purchased it for $508,050, according to Franklin County property records. The bowling alley has a triple net lease that ends in February 2034, according to the listing. Ten Pin Alley is operated by Mechanicsville, Virginia-based Lucky Strike Entertainment, which has 360 venues across North America. Its locations include bowling alleys, amusement parks, water parks and family entertainment centers. Formerly known as Bowlero Corp., the company rebranded in December 2024. Lucky Strike also operates AMF Stardust Lanes in Grove City and Bowlero Sawmill in northwest Columbus. The potential sale of Ten Pin Alley comes after another Central Ohio bowling venue changed hands. Gahanna Lanes, located at 215 Johnstown Road, was acquired by Store Capital LLC in August 2024. The Scottsdale, Arizona-based real estate investment trust bought the 29,344-square-foot property for $3.8 million. The former Grove City Bowling building at 3940 Broadway also is finding new life as a Dueling Axes ax-throwing bar.
