CoStar Earnings: Homes.com Becomes the Second-Most Trafficked Residential Marketplace in the United States

Wide-moat-rated CoStar Group reported a decent set of numbers in the third quarter as the firm reported non-GAAP EPS of $0.30, slightly higher than the FactSet consensus estimate of $0.29 per share. The company has maintained its full-year revenue guidance of $2.45 billion but has reduced its adjusted EBITDA guidance to $485 million-$490 million from $510 million-$520 million because of accelerated investments in its residential strategy. Management indicated that if the current market trends continue into the next year, then it expects revenue growth to slow to around 7%-8% in the first couple of quarters of 2024 but improve in the second half of the year. Management has guided for 11%-12% revenue growth in 2024 and over $1 billion in adjusted EBITDA from the commercial portfolio, which excludes the residential business.