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CoStar Q2 net income down 17%

Real estate data giant posts $61M profit compared to $74M in Q1, but revenue rose

CoStar Group CEO Andrew Florance (iStock)CoStar Group CEO Andrew Florance (iStock)
CoStar Group CEO Andrew Florance (iStock)

CoStar Group’s second quarter profits fell after a strong first quarter even as traffic on its analytics and online marketplace jumped.

The real estate data giant posted $61 million in net income from April through June, down 17.5 percent from the $74 million in Q1, it reported Tuesday afternoon. Second quarter profits were about flat compared to the same period in 2020, when the pandemic first took hold.

Before the start of 2021, the company recorded four consecutive quarters of declining profits.

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For the most recent quarter, CoStar generated $480 million in revenue, slightly above the previous quarter and a 21-percent increase year over year. The company said traffic rose on its real estate analytics and online marketplace platforms. Net new bookings totaled $51 million in the second quarter, a 47 percent increase compared to Q2 2020.

The company’s revenue and profit were “ahead of forecast and the total number of visitors to our platforms up over 45 percent year over year,” CEO Andy Florance said in a statement.

CoStar raised its revenue guidance for 2021 to a range of $1.94 billion to $1.95 billion. As of June 30, it held $3.7 billion in cash and investments plus roughly $987 million in debt.

CoStar shares closed down 0.3 percent at $89.02, then declined as much as 6 percent in after-hours trading.

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