CSGP - Earnings call transcript Q3 2021

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Operator

Good day and thank you for standing by. Welcome to the Q3 2021 CoStar Group Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Bill Warmington, Vice President and Head of Investor Relations. you. Thank ahead. go Please

Bill Warmington

Good discuss thank results the CoStar Sadie. joining of all us Group. to third evening you, you and for the Thank quarter XXXX

year and to turn including would I the forward-looking expectations the review XXXX. statement. and Florance, call discussion I harbor to Scott for over Company’s safe quarter portions Before CoStar’s our outlook the like and CEO the statements, Certain Founder; our CFO, today and Wheeler, contain full Andy fourth of may

many in from involve our CoStar SEC, press and in The adjusted Room. EBITDA, terms. estimates can Press statements other release Important statements those press our issued located detail is differ Form guidance All this non-GAAP for directly with at assumptions, date of non-GAAP of press events Forward-looking risks, results call. call, today, are our new in financial otherwise. discussed in to, future assumes XX-Q and report limited those website EBITDA, including the to to on that stated update no of measure these on factors Factors. a on statements, uncertainties, with earlier actual under information, the on shown our or most include, non-GAAP CoStar to and net annual forward-looking cause available the to information on to release this income factors including Reconciliation not are but result quarterly costargroup.com comparable cause obligation GAAP whether most along as CoStar results report definitions on under and release measures that forward-looking based such XX-K can Form actual today differ the recent are materially Risk filings statements. heading issued available Group’s the

of the As on on to Andy being to to our like Founder website turn would over access press CEO, link today’s that, with available release today’s call call. conference how also And and Please this our webcast, I Investors. a replay is to the is call and under refer Florance. the reminder,

Andy Florance

Bill. you, Thank

billion an the You quarter the range almost Good of at by of $XXX That’s upper the everybody. revenue for did Most for Total guidance XX% CoStar double end year-over-year excellent XX% $X.X time revenue before year-over-year for XXXX million. at our third encouraging, job. to the in this for with grew evening, revenue pandemic. the that’s revenue quarter. quarter And growth since reached sales digits million include growth and the first only of by in a CoStar, quarter Apartments.com. estimates. of the our the revenue $XX $XXX high the range, in third coming the of million third the of sales quarter end growth quarter quarter quarter for strongest consensus in Adjusted Net $XX EBITDA third which of ahead million soft exceeded for XX% in dampened are bookings guidance September. a of history

to Our traffic contained our deliver sites exceptional customers marketplaces value XX% year-over-year. to as increased our to

across generated campaigns billion over in Apartments.com, quarter marketing Ten-X. LoopNet the third Our impressions and X.X

rent extremely standard change declines. volatile. pandemic in of deviations caused rent XX rate to are Xst, French the causing our lowest growth BureauxLocaux, to and is property years. acquired vacancy the whipsawing market in best U.S. vacancy October The marketplaces. network the or marketplace highest described rate, apartment initially rental rate is normal newest are market outside the move welcoming the rates absorption fast past The our ranges sharp X drop we The and We on marketplace, decades, in volumes are in unit stats growing decades rate occupancy commercial stunning of decades. absorption highest experiencing growth a as the and in the and high well X to slight

soared. growth through the shot and the rent the it a slope of of on absorption With unprecedented. curve see vaccine, the and levels is When availability you roof chart, occupancy

XX%. make tight high and buildings that or Well, years. grade does is XX%, all above doing are investment XX-year to apartment But the The today rate this XX range is major above number, fell occupancy X%. been X way Investors the the an of sixth over to -- sky very, vacancy to XX an richly only rate price average. and the revenue the X being that range is door, is total to in average large well. deviation grade XX.X% apartment top leased average are XX.X%. is $X,XXX by which States, unit $X,XXX overall absorbed. deviation very well, number Last apartment of low leased. very of XX% with The XXX,XXX. sales side standard That’s deviation United unit month, been very per standard per XX-year deviation rewarded manage high apartment units the Annual average investment a last occupancy the systems. been This more. This year or absorption The fully the is growth absorption of U.S. also $XXX,XXX highest is rate but for any standard Owners has end which the point that the owners investment at XX-year rate at is range. unprecedented. rent the annual yield Apartments.com? to one XX% below been average communities XX the in occupancy XX-year automated mean it’s year, are high XX.X% annual XX-year is housing basically using occupancy now of Currently a that rents moving climbed past the average XX%, net average of occupancy XXX,XXX standard apartment good with past rents but very number. the are our low XX% now at for units optimize the XX.X% more apartments has thousands of high tightly -- United are clients in is What The the means at for properties a apartment units has States for tripled rates, for years. average month. crisis. management XX rate tens grade rent For it years has

our or in can apartment They leads anecdotal do XX% heard every apartment having When may likely but major of not continued advertising love becomes their available. some long want they need stories presence You’ve community they hundreds leased, neighborhood building one to a zero with they waiting level Apartments.com, lists. but a month to of on marketplace, us. lower

of their spend with during essentially full reduced remained have rates but communities renewal have are Our high this that Apartments. thousands period

were marketing occupancy has An rate quarters. anomaly of for pushing may or seeing the which time, well high From leased. I draw their optimally occupancy is that’s a community occupancy to normal maintain norms full its this the were already will supply. rent as of additional optimize will property automated back as supply, within we’re increases increase it XX%, to by rents current to outside rate management falls optimal of levels the implied -- Economics this occupancy took have believe few the Over During a believe market though or spend more, condition, apartments. either until supply new is of XXX, systems leased, potential apartment a resolve levels that because about I some ranges offline necessary reduced systems yield yield by XX% apartment fully underpriced community keep the high will out maxed acceptable rent managers occupancy they is to when XX% the social the systems necessary management increases. felt typical. back

that One for competition leads of the into available is units, means More can more variables the yield means these owner primary believe source high number are leasing for value to the competition leads are the the point coming More good. primary the higher Apartments.com office. that raise a management of more leads We owners. rents. independent driving rents in leads systems of is

So, unusually Apartments.com In turnover intentions. surveyed high will than believe that come, XX,XXX for migration. steady market, is a In moving great renters clients unit to this we demand about more year August, in than and believe flow the the we despite unprecedented during wild be there’ll lead stronger their these ever. the want gyrations we

When held that you asked, residence, when When survey, asked when turnover, expect renewals more we of market changing think lower with apartment -- its renters I experience do you all work-from-home to move Apartment your of moves XX% community, XXXX out month, in-person makes do within was they post-pandemic, pre-COVID. of huge of increased market will meeting by will stands affordability result National respondents XXXX. and Association the number a to conversation into do lease survey to what clients. policies. out next from meet changes new given a the as sense a expires, winter. into Last me. expect to XX% able As the and plan said This XX% you will same current down renew we and first only head move of One

I’ve the most with a were the the that to relationship an firm. and amazingly great wanted He we greatest senior our that valued the to he single we’re comments His partner stressed client, much how to his for unprecedented statement. positivity. successful their and largest single According of meeting he client years. profusely we them. much of being conclude an us year. the over had important in thousands He his for helped said important meetings last source of our were for As them have member leads make team appreciates he doing work communities how thanked him, XX

relationship us I because while Over and the client. our long many us continue their level their their have investment the spending fantastic his market come, well were and gyrations, twice size us past the client of grow long thanking market profusely, of I Yet over past to our in term has its believe grow past firm with will years more annual this over this with to investment them relationship condition. they CoStar communities become he’s largest this client these few current by Despite of X% about with full. reducing will five the years, months and believe with intermediate flourish. we Apartments.com is tripled a the in than so

incredibly year-over-year environment, marketing our visits and developed While billion by were strong. remains Apartments.com this this XX%. in driven were strength environment the our the Leads the highly-leased was quarter. up media during biggest of platform we quarter X.X were in impressions we This third soft the quarter sales of where up XX% where delivered partially or year, unprecedented quarter high-leasing --

here meant XXX XX% has in terms apartments a who for began we card largely higher they pricing, any increase second about To prices September. decreased were windfall The effective testing not two rates. XXX initial site increases $X.XX X% rate with the are combined imbalance, of traffic, commensurately has in The flat new further rate $X.XX out communities to informally September, discussed I in new were The leadership smoothly. on call value, clients a lead. pulled receiving price we’ve more the per aware larger average our pricing about cost segments we in of clients, cancels. card average quarter In representing cost As value and July, in to apartment paying in address XXXX. XXXX went the with our related our sales properties. and team, years and a per this rolling from our with lead in began

growth, are eliminations to resulting going revenue we’d though, forward. discount of more in that see and more significant of Some expect

Florida example, XXX-unit XX%. Texas paying with now and A $X,XXX $X,XXX, for spending increase client renewed property paying for of September, in an ad with they client and of a renewed an a they was was property are they’re and Gold a increase XX%. a $X,XXX and with Platinum a ad now with XXX-unit For $XXX, paying

right pricing had impact it We that on campaign. it in not has believe out impact we will our though will this continue And to an have scale quarter, quarters.

the sales of many volatility moving over protect of we the cautiously our are long-term multifamily Despite markets, Given of the more we’re today successes current there than prospects to years, we’ve our the client had there extreme far. so and last clients five have all the franchise. relationships out value value

new of in the who Xceligent clients fourth to the XXXX and we starting XXXX, while data is Our development, Net our reflect business a about XX,XXX have less the quarter generation for Of separate than the to higher the billion in conversation Xst, of marketing estimated of for XX%. the of single CoStar new extraordinary client able when back tenant Apartments.com. many, expect believe we Apartments.com XXX-plus-unit -- eligible XX% regional, only platform years is not the we program that million net about third XX,XXX breadth capability. XX,XXX accounts. and the On ever, up we over in of record of sales the third X% Chapter quarter sunsetted from time first CoStar U.S. up our XX. of we XX% started for XXXX, confident surveyed the filed CoStar and revenue. rate geographic opportunity bankruptcy, have July security value quarter full only we and start those modules new from higher unmatched revenue Historically, than performance loan multiple streamline increase to bookings Again, We global a when renewals $X to and of just quarter, quarter to information globally, X remain rates, estate through a than two agreements actions, local, returning in performance We third upgraded X.X $X sales. factors, sequentially is functionality buildings, of CoStar’s less of Since delivered clients multiple we quarter the of of driven July were penetration In clients per a and full on XX-month point, the think new in upsell our in is more the depth CoStar LoopNet information, to information the to generate million XXXX. we X,XXX program, state, first growth of not signed made success and of insights of With long-term $XX about success Xst, sales had annual net to quarter our support. product the of comprehensive reactions average rate. separate commercial revenue was XXXX product up platform. pre-pandemic. with favorable across outstanding we Premium integrated buildings many basic that XX XXX-unit rep able of growth loans and and and we data, properties. we including annual our coverage analytics and strong ahead and in take On CMBS advantage are X% information; in XX% results take of times into commercial process a in the and recovery. XX% will incremental generating third gave comparable new net they us the valuable almost than or the continued This to upgrading, those price million two-thirds higher all global. growing which CoStar, accounts, quarter, productive trillion best of upgrading strongest a more commercial sales $XX was bookings continue the they’re XXX% offering, $X capabilities property the market of penetration had of customer incremental version CoStar selling just more integrated CoStar were Searcher. team the And receiving now so acquisition. billion integrated XXX,XXX the national QX year-over-year. XX,XXX its our for product single they a these in revenue a Promoter believe or Based apartment clients for get growth X,XXX The we than or win-win level, Score high had CoStar X CoStar access tied to began dimensions: customers team the annual versus renewal return sales economic $X in CoStar’s their the quarter our information XX% sold upgraded on commercial than over versions Overall, pricing upsell pre-pandemic is the providing to capabilities, product process historical to by for quarterly nearly initiative mortgage-backed X for

taken Our accessing detailed year-to-date. collectively financial unique data of advantage that XX,XXX that clients highly users loan times data over have approximately XXX,XXX with

launch we which and over type, property markets Analytics, X,XXX by over to Next CMBS property month, million plan X loan across CMBS aggregates data representing CoStar properties.

$X We addition underwriting, and over In regulatory net estate real analytics, million also of a helps estimate third data the on loans, information, monitoring generated commercial of commentary we’ll release plan. to reporting loan new lenders CoStar XXX,XXX disposed CMBS historical loans. prepayment in progressing analytic with status on the new quarter. Lender, information tool annualized revenue and that is and the

clients system their very We the feedback are through has and walking positive. been

in of XXXX. We’re on for schedule first quarter the release

origination underwriting analytics will a on along and premium cover tools Subsequent priced tool loan release so the broaden help on regulatory Lender the will be cycle. originators surveillance high-value to will lenders first with we portfolio The at our are lending focus underwriters. to and to and focus risk entire for These loan as more meet solution lender and releases and applications CoStar accounting standard screening a specialized offering. requirements

hospitality in grow third revenue at the of XX,XXX population. STR’s of XXXX. but recovery of Canada and As continued overall. in acquisition properties uneven North anniversary marked broadened million. industry on the of reached encouraging In Canada to Their remains continued launch XX,XXX health to the great that we’re of add August, Friday, CoStar of coverage our an million renewal XXX,XXX hotels, Last is market, estimate recovery received April is a new potential STR. to Toronto about in mid-October, Suite hotel in the Separately, milestone market by highly-detailed annual tracks further Back Xst, XX% quarter, that over us. number quarterly In seeing In XXth such, to sixth to reached properties Montreal and data the data access opportunity incremental on since XX,XXX impressive its the business is the data of with of the rate quite P&L two-year they new enhanced the represent with about and CoStar America The at CoStar to An $XXX we impressive. cumulative properties. of P&L largest subscribers. the we hotels Montreal forecast revenue year-over-year. high. international in of this CoStar number X the subscribers CoStar XX%. in STR -- good of currently progress an provide continues another the a contributors by strong launch sign city industry, the mid-September, property which all-time for views with on Montreal

the force $X CoStar early, leads generated still million campaigns targeting revenue. in new While sales hospitality high-quality annualized over have

another and price the customers per basis amounts. on both all-time demonstrates XX-month ad, a -- of ads delivered with marketplaces strong rates LoopNet third XX%. XX% revenue the Premium high of effectiveness as average in Diamond, recognition growing an in from revenue quarter, well a Growth performance in quarter and Gold was by strong, Our the up the value ads our quarter growth which signature as with was number LoopNet remain in XX% our by advertising. the reaching third very third the of strong double-digit Platinum Renewal rolling

deliver in impressions media swing social and LoopNet Our across in campaign TV, third full X.X to XXXX the is streaming in expected and billion was channels. marketing quarter

high wide tenants Space of and TV, inaugural can variety is almost prominently a sports campaign In XX% LoopNet. basis. events, unique The targeting XX for major and featured titled channels. campaign on marketplaces quarterly million spaces and monthly search visitors on almost streaming average the quarter, digital great third a who primetime of services traffic Our new Dreams LoopNet an year-over-year on delivered find grew

vacancies. and the believe uniquely and fact, as vacancy brokers site help elevated standards. that pre-pandemic fill In potential traffic is the than above those by owners painful remains positioned is Office We LoopNet to our now XX% marketplace current more to very historic ideal for market, levels.

to progress our continue make LoopNet. sales expanding channel direct We for

were in training selling only launched quarter, and we currently XX have dedicated third New to LoopNet. the hires and salespeople

continue LoopNet XXXX. Our goal the year hire is to aggressively sellers have or dedicated more, XX the by end throughout to and of

across of foreseeable CoStar the the Our both Overall, and the future. our ad the us. will to about the Info marketplaces in sell only team potential Today, LoopNet with I’m and LoopNet our the listings X% CoStar of growth value sales happy very before U.S. properties continue signature and performance represent highest-valued

to many I so, we double-digit positioned come. strong believe well And years for growth to are continue

new growing grew agent end the to to delivered XX% growing with almost selling users through Homes.com XX product for in revenue. have selling year-over-year at The team the and Homes.com site annualized XX%. end of Pro+ winding average the reoccurring In business Homes.com million of subscribers eliminated XXX,XXX. salespeople the is mid-July. these higher we quarter. by the they Homes.com. second our Upon XQ of the time results XX% when we and of agents to $X residential went the their quarter, a We Homesnap strong generated the consumers salespeople Homes.com than ads were or their production platform. Pro optimize new revenue completion Homesnap, monthly repurposed third sold over XQ, Homesnap almost vast Homes.com SaaS and the XX% approximately registered revenue results banner to Homesnap. Homesnap to refocused using the implement Total group revenue website. Our products outstanding. grew from at down Throughout Homesnap in XX,XXX the XX% At and over majority at and training, experience short been about into generated have The improve transplants

point the know Homes.com come no philosophy. can agents connect consumers directly the residential property with are real for a with competing consumers served with that’s And buyer agent, major who or other major pain or first estate to sites. Listing, about up and -- longer nothing buyer. Consumers Your been consistent listing the the For to Lead Your portal, a ever, time our

and will buyers. doing and something it better the much the completely different, a agents for be hopefully, experience we’re So,

advantages. owners app and to and go not of the importantly, Board paid app provide Citysnap very we accurate and building real-time City’s Now, mobile in find offer homebuyers new Homes.com so new feed of content in Estate to a to will will maintain. to so for service and on August, of XX% or means Apartments.com, to the with agents, very and to not from. choose monthly marketplaces. website XXXX. residential be acquired increasing multiple to listing will but Apartments.com REBNY, the unique create are agents of of adding we has to of just agent same addition, options to generated York Homes.com to the listings and Real XXX,XXX expanded now visitors brokers is live sent expected first-ever these place apartment listing New This availabilities been last a we’re consumers Citysnap connected to over in we Starting The data complete, Homes.com have period year. consumer-facing the partnership or New over will give only consumers to improves directly on lease content Citysnap, site unique response for all benefiting free Homes.com most both add that site, live. appearing millions announced to ago, added these were far. Proper encouraging weeks up that important since the The and that changes the listing list listings, It tenants. Two compared data Citysnap, York to traffic search listings. residential the the of consumers middle

find commercial homes these you apartments you and residential thing and partnership now. revolutionary listings to Lead Citysnap suite access of including the collaboration in can internet We make is through however renters any will agent connect see buyers until with with philosophy, days, other our and listing about of Listing, Homesnap’s consistent the property on Your makes on The promoted don’t possible listings, tools. U.S. where just that potential LoopNet, the that Apartments.com promoted for Your for product

as Estate far New partnership Real offer the able our on York, listings be As of we with Board promoted Citysnap. will to

be able will show, increase buy Association consumers the thousands industry’s a NAR attending conference In largest the country. and preferred weeks, residential few Realtors the of agents exposure. and annual of National across to trade property market be placement The features is professionals Conference. from So we’ll drawing to

As time, in their clients be in or billion than unique the revenue third million in compound have visitors that estate to at marketplaces. and show to had $X the real did we we we we’re brokers industry, online Less we our this in traffic apartment that rate customers to partner no of be and growth intend residential sell and XX to revenue agents almost them grown and years in won Since with with assigned marketplaces we our presence to We them support more our and nearly can technology a relationships quarter approximately we to as use literally month, profitable, run generating ago, We opposed them. strengthen XX XX-year help with properties. presence, them a leader rate to believe with build revenue business services clients. for to estate real their annual the digital per trying XX%. disintermediating without our successful plan disintermediate

We have curating successfully by content, demonstrated the best marketplace great effective market generate positions to our ability leading user bear. offering to strategies experience bringing a and

times. the had in achieved larger we increased five position had our XXXX, XX% with over by grown which then Spain of no of years and content Within years, property grown top commercial marketplace in in X has X/XX the of exposure three UK by in site purchased site XX number Our Realla business unique times listing of we’ve the organically. coming traffic portals and visitors Belbex back listing competitors. dedicated in traffic Spain, our to among times about and content our X much

XX%. Realla’s During share to of property almost traffic increased site this from time, commercial has X%

top and to BureauxLocaux acquisition our acquisition specialized Launched France’s the beginning compound lease clients. a base France for to commercial each and BureauxLocaux, coverage, XXX,XXX national XXXX. by BureauxLocaux of that specific the has commercial to leading in to provides international a BureauxLocaux the economy real website, capabilities has recognition of listing with visits expand has estate property XXXX, property in great subscription-based over base its company’s one of an XX% agents over leasing commercial excited month. its grown is has client marketplace in with trillion. advertising the world one the largest sale real commercial of property important We has France. brokers. XX,XXX built with are valued an excellent continue BureauxLocaux, since brand for property international estimated sixth and at includes for of total annual largest XX% the listings strategy Traffic estate our expansion portals buying a among platform, and and as This website $X an and reputation platform over

a revenue to -- size a bidders in grew XX% The and the which total to versus XXX% year XX% is XX% quarter is Ten-X assets brought ago. effect synergistic total reflected in of improving the a deal Ten-X in the third Unique The the of sorry, the saw platform. of third X.X% the assets asset Ten-X XXXX. sold per XX% supply We network increase year-over-year was of as I’m demand a percentage increase Finally, in X.X% number and rate, grew average quarter visitors average volume. transaction in trade year-over-year. site

average trade quarter third we which traditional XXXX The strong for believe rate property is about at trade XX%, twice rate offline sales. the remains

a that performing client value the assets occupied, the sold assets and Total absurdly Castle reflecting of shows to If functional basis-point XX%, an that a to Ten-X’s XX% private In platform of market, the year, resonate using We significant -- property of was believe in come. performance speed, a leased also year-over-year. quarter XXXX rate capable at were transformation is the third XXXX the groups. improvement certainty quarter selling XXXX. seeing in quarter Ten-X distressed major only side, gross grew commercial the the of the used. distressed in of And in $X.X buying properties and value brought Ten-X we access of billion we’re highest Ten-X Ten-X commercial to month us security still this from issue estate XX% real currently last about only platform prove figure than third rate XX% only with assets, could office third coming being distressed very selling XX% level experience platform. process decades a of exposure, rates dollar traditional in that number increasingly these per in supply windfall of brokers swipe properties value asset world. by and better by space quarters value the that proposition ongoing vacancy or with vacancy numbers The cost only XXX results percent a or sales though. distress of control to sales strong into these to come property market high office in of in $X.X billion the properties. selling increased institutional sold in years year-to-date we dollar a the XX% from data closed the the On merchandise have cards of

So, some going share going turn Wheeler, Financial over point, is numbers to this Officer, who riveting our at to the Chief Scott with I’m to call you.

Scott Wheeler

know numbers. riveting how love much you I the

You’re listen all hear it’s like when you teacher, number, number, you me. wah, Charlie the wah, the Brown number, know, you wah, number wah, when is Show, to go wah, wah, to you

Andy Florance

I hear something.

Scott Wheeler

for all the what can you number content clients. financial as see strong another Anyway. and you, your Andy Andy, and that, to books, in have I Great Thank introduction. value such quarter all the delivering of are to product, hear marketing to from our can course, increasing of of said, tell. great investments

is few potential. years, these markets of multibillion-dollar as past that them massive operating and addressable each businesses over are established have Multifamily CoStar and have So, both, the revenue that within we clear it

Now similarly, have multibillion-dollar business LoopNet our residential operate Marketplace revenue in and our potential. now both and each addressable markets massive also

now quarter, reported So, report where include the revised revenue visibility revenue to international revenue individually. how Each $X of our business increase this applicable. and CoStar, will each these both potential domestic be disaggregated Residential, LoopNet we and of we to areas: billion-plus whose sectors the Multifamily,

revenue has and left Commercial now a on sector home beach known that and as the Group Property somewhere. working full-time formerly the lovely So, was from it’s Land CoStar

Land service. farewell the had them to to and performance and sector’s for Property Commercial So, and years thank exceptional say five of solid we

sector have Other now named, we place, a I its must in titled personally I So, called and Marketplaces. new, that very creatively say a

spend Lands that Ten-X, I it with come precious our Sale a Now, spend does our up didn’t of but marketplace. marketing for Businesses dime include to one, and our

along So revenue help the hopefully, will everyone old quarter for while I’ll remember transition. come you to provide the grouping, sector transition we information, relevant new this the comparisons to with the all to of

I’m I probably something, you’ll sure if So, ask. missed

fourth the the definitely average all-time the highs highest line CoStar of remained XX%. which over encouraging quarter, revenue quarter residential our the increased CoStar offset is rate has third our than year-over-year performance increased are guidance levels in on CoStar the for mentioned, and pre-pandemic the $XXX revenue contracts sales we revenue in growth quarter terms XX%, end of marking signs. the the the lower revenue CoStar third XXXX XX% The third growth size near Multifamily. in the of before revenue was is of rates by guidance, and quarter, Organic with in to ahead strong pandemic. quarter CoStar quarter, high revenue since in Renewal in in to range. CoStar over growth the expected outperformed expectations. is million very that for expected was Both a Andy both for XX%. of CoStar force, roll. by revenue our our accelerate sales their So, partially our

revenue between downturn, compounded growth has Now X-year both annual XX% XX CoStar a prior to been and and basis. the XX% XXXX the on

throughout expect growth renewal Onetime to Real behind only in transaction were the stay revenue XXXX back comfort quarter expectations. revenue future. Estate subscription next and the that we CoStar in which firmly And CoStar initiated for will zone. mind we additional we Keep provide recently there tailwinds now foreseeable our increases, pricing expect to we’re in So, for grow purchases grew revenues year. as our Manager. revenue third other Information X% Services slightly STR and continues report in of

revenues We subscriptions earlier companies, integration selling expect we’re we in year. STR the now of to as the completed data transaction hospitality this lower hospitality that CoStar future following

our pursue in the businesses. course, part of employ to is, the acquired to with year to these that Accordingly, from growth XX%, Approximately with below third customers of half Multifamily rate year-over-year So, This advertising subscription revenue of and reasons Information the from per and properties that Growth over for products. this of the new our purchase quarter for full all that anticipate is onetime we revenue the we Services in of other we eliminate in need is is revenue was XXXX. Andy X% mentioned. model the time, expected report strategy grow us expectation growth property. for the the slightly half average approximately

program ramp that latest rate we fourth to in we and and continue fourth be Andy the digits new market growth the to expect of our As beyond, considering XXXX. Multifamily price quarter year-over-year up the mid-single discussed, revenue for in the in the trends multifamily quarter

of year-over-year Marketplaces ahead and Now our revenue sector quarter, Group or with of expectations. for of Land second in the our sector the growth at the third comparison this XX% performing purpose quarter, at Property all delivered businesses the end guidance in the Commercial old to

LoopNet by on as not These on quarter, revenue France. BureauxLocaux LoopNet sold marking LoopNet revenue again, straight sector out Spain, the grew in less the output year-over-year, Once by revenue are impact sales double-digit quarter Commercial a went Realla in XX% knocked into the as BureauxLocaux financial than The marketplaces. The our Marketplace the XX% Signature team CoStar the ads, to the third international material for CoStar in now XX%. of quarter well property Marketplace per LoopNet their the Belbex and park Property from over Marketplace the and XX% LoopNet. LoopNet have the growth. the of volume XX%-plus addition up sector. XXth increased in which are both UK includes XX% of and of coming They in it Our revenue does results quarter.

XX% with as we news in of weighted XX% million Homes.com business third down last residential $XX still was to for vast this wind CoStar this of and expect course, in fourth sales, LoopNet more the revenue from XXXX. full Revenue the Homesnap the growth legacy third forma quarter nearly growth of great so was the providing Now, the quarter. with quarter We Homesnap overall, than quarter of pro revenue for XX% the even and is of year XXXX. the revenue products. growth heavily trend majority

to Homesnap quarter momentum new is The sales time what slower of fourth previous exceeding great expected forecast. We growth our expect than delivering residential is Homesnap which with be XX%, is revenue of revenue $XX million in the year. in a force during typically higher the direct

of was revenue, revenue ahead winding the these of don’t expect revenue lower schedule of is legacy than prior from down for in successfully this Homes.com the slightly fourth We’re faster forecast. a elimination residential contribution included year. what quarter total Homes.com our material XXXX of legacy products in fourth and quarter this Because in

transactional expected deliver growth. Other growth Lands all delivering third the quarter between to when close excludes year businesses revenue we in fourth to million, family, the timing. and with includes downs to our sale with of Other on $XX sale Ten-X XXXX is and the Ten-X, and revenue quarter over which little reporting There the The is in the a along a million Ten-X. outlook. residential continuing is in fully doesn’t Marketplaces, for lands newest the Marketplaces property Marketplaces quarter In our the strong businesses will Marketplaces from fourth business half For in other revenue same revenue the that in our expected in expect depending some Marketplaces the half Revenue $XX marketplaces. sale and of in businesses Other in words, XXXX is the that million reduction double-digit range XXXX, uncertainty quarter for the grew member $XX of double-digit revenue through for quarters, the occur of are which revenue XXXX. in in as full modest more businesses expected revenue discontinued are few the for Other closings Other for fourth timing total Because be fourth a when caused are ups Homes.com marketplaces for assets revenue our revenue. is fashion Approximately friendly properties sold Ten-X second that XX%, behave platform, subscription-based. linear our of recognized the quarter.

$XX XXX favorability high in through consistent million end margin to the guidance billion in quarters XX%, approximated basis range. ramp-ups continue came with from of the third the $XX second year end the we lower of at slightly an the was in two we XX% prior third marketing margin year. third in and expect provided tax and quarter above from in was hiring gross was combination call. the XX%, Adjusted Net trend slower effective our million end quarter. third of Our with points at was Adjusted forecast. income quarter, investments $X last the quarter, X% increase The of of the the million our $X.X the the quarter, in above the end prior a quarter of is and which our rate in costs the quarter million and of EBITDA third in of Cash $XXX XXXX. expectations up was EBITDA the XXXX, our line and

the a to metrics, Full sales XXXX, around with prior the $X for decreased million reduction now and which increase force decrease which revenue billion during accounted quarter basis-point year the third revenue the now Multifamily XX% outlook our approximated $X.XXX Subscription Contract for year approximately while Multifamily. Homes.com from to This sellers increase LoopNet the and an acquisition. renewal and for second the of revenue, some of Ten-X the versus the third for range CoStar’s a the with the guidance quarter, against quarter because and of in to previous XXX at sellers contracts year line quarter from impact XXX approach points a for of were performance is and increased quarter. Homes.com quarter reduction five XXXX. growth overall of year. revenue the expected third full-year of I’ll our midpoint. last quarter more at midpoint down annual our of modestly strength from Multifamily is quarter of accelerated basis XX%, the the was fourth the X% year slight property end Ten-X sale have at a timing, the XXX This revenue our quarter. the consistent the of forecasting and Looking sell years with a lower of XX% reduction for cautious $XXX reflects quarter full range. The quarter third talk in second narrowing revenue along XX% quarter this year. $X.XXX net of XXXX. of of sales headcount the last of revenue on the or sequential Renewal above is of and the of repurposed result and growth quarter second of subscribers the was XXXX, range who for of billion the the from the range, been Homes.com at represents year through customers force primarily year-over-year not to in representing our elimination third that integration in people fourth reduction the fourth the million Homesnap $XXX implies XX range of sales to the the longer rates rates million,

the range. full this adjusted adjusted million $XXX is for XX%. for now outlook of EBITDA cost midpoint to year year. by $XXX in approximately margin incorporates the the adjusted million, quarter from at in range $XXX million continued which outperformance range to million the EBITDA expected an our increasing $X million, EBITDA of of are EBITDA third quarter the of We quarter, We around adjusted expect in with favorability $XXX fourth along the the to Fourth

So, me and now to for over up the the line call for open questions. today. moderator wraps back up our to Bill will about I turn it that friendly

Bill Warmington

limit Sadie, Scott. call? you, the of Thank question. good yourselves please really give roster assemble portion the the Q&A for you please instructions would one and you. Thank Analysts, to

Operator

first our question, Citi. Christiansen have from you. Pete Thank for [Operator And we Instructions]

Pete Christiansen

Thanks side, for the for appreciate. disclosures the evening. the And revenue guys on added really thanks transparency I question. Good

spending the I that October question. this just in you ask ramping as to end I we’re Andy, know from apartments on had of up any in the opportunity there’s a with guess, wondering pivot sense Any to will as there seeing about the have I play some residential? you. you dollars here. think sense effort? revenue we’re you side? whether spending to connection how weakness But that residential apartment Do of think to the XXXX, of I just over Thank have if look you forward in, more the

Andy Florance

Yes.

Homesnap. is operation of point, with this residential at on selling growing what we’re So, focused our

the numbers, SaaS So, product. Homesnap, having you there, strong as these success good, can revenue, see we’re subscription concierge great revenue, from

there We’re is growth accelerate rate that dramatically. additional believe growth to room Homesnap. accelerating of that rate We

being log I have the an month of community a That tool and be looked think And them product a important of for growing XX it agents like residential $XX healthy turn years sold would the and Pro for be last when that connect for LoopNet XX Homesnap the now. force So, doesn’t reminds a right and over sales lot tool product information into at what awful as level. was to us Homesnap them. regularly marketing subscription an us me it to to

That’s tools the to Homes.com designing right exactly in So, does secondarily, and the and there going who is salespeople for that And dialing marketing the Homes.com focused sure that’s right And doing professional on Homesnap be and really and we’re large-scale between buyers making the consumer, about right initiatives. formula relationship our consumer the focus. involve community we’re the for not on software. that what primary are them. at

have right on two be So, which looking at premature very adding Homes.com where finished of to to those and designs, it’s finished initiatives working that software little software, -- bit initiatives now, and hard are flushed like. beyond fully we we’re these going, spending products the until out we dramatic are salespeople

So, open. still it’s

when over dial residential is of and free are probably, the on the we necessary up we’ve on it’s some to could spending that so full, something not many huge, back some already not had communities apartment Apartments.com discussions, Now, side, those initiative so.

Operator

Ader next Jackson For question, we our Morgan. have JP from

Jackson Ader

on to to expectations rebound; the and I’m might may with the begin Thank business then, on timing any come windfall about Sterling really Auty coming of to distressed expectation is on timing Andy, question Multifamily mentioned the for two you. you when Ten-X, when some for potential be on when timing maybe of the assets the that tonight. things: that The market, fruition? if for to -- or

Andy Florance

Sure.

to two think reconcile I I’ve be volatility. begins something hasn’t am of going that opportunity before. unusual have levels, are operators primary occupancy there going believe The miss next because is I and the I these as do four So, unprecedented. mentioned. this levels going chairs churn that in to in happened not an changes. leave rents that’s musical but apartment communities as work-from-home well much It predicting naturally quarters, on with one pricing their factors sort One spike you so and it believe just quarters. changes of Apartments.com, so to are of and sophisticated to to I two high are occupancy churn could

So, I it quickly. will think break pretty

quarter more recognize economic are that to we customers into that trialed quarter our fact we’ll continue of We’ve is before. delivered I an the And delivering second up and factor is to and significantly the and than that ramp opportunity first Second value quarter. believe that. September, some to fourth there ever the major in we’ve

strong I And not as like expect exact second office my there. well, I probably in all see want XXXX. a something -- but the changes think predict just for So, walk again, this can quarter through don’t. I Ten-X I I think into you’re not fourth stress dramatic And you’re looking potential question to in a that. you’ll but the move guess, the sense year, any levels It’s achieved. helping see levels, the distressed probably to there’s being, as these achieve from of had it’s been to ever it’s product buildings, rents that would part rental they’ve is that when the on office, we a the strong and been. we’ve actually we I we benefit options something data, itself I don’t wish industry is, highest human a as problem we ever And was

CFOs of work-from-home these believe will at some some long-term rational rightsize begin I an effective properties. so, to that And solution. point, is not do

especially not degree could I businesses think I think productivity it to that in So, into work-from-home be all seeing of running some at a the the -- trouble levels I mitigate But, model. but kinds stuff really there operating buildings they’re a think will good and that that won’t the from of XXXX because market. examples a am same I somewhere, audience selling, I can’t time, some high-quality finding tougher find is be possible some second-generation sort of thing. some buyer believe office Ten-X real distress have oddball biggest for to stuff. may at

So, of be think but would there’s sort XXXX, surprised some I’d I if something there. not coming

these vacancy of XX% facts rate and behind Ten-X. tailwind So, -- effective is potentially this two sort a LoopNet

Operator

our For from we Chu David have next Bank question, America. of

David Chu

So, trough get higher? should rates make that can’t some in given XQ occupancy and sense? benefits then the pricing Multifamily you go be Does revenue, then really that

Andy Florance

rates sense. That went yes, odd went -- be higher. really occupancy likely makes it’d And if

Scott Wheeler

not much room Yes, left.

Andy Florance

would That be strike.

So, that’s assessment. fair I think a

Operator

Tong have George For we question, next our Goldman Sachs. from

George Tong

of to be in the What’s mentioned rents in to compensate normalize and to the norm customers lowest rates new term receptive medium management have likelihood economic and the as the that how address history. recovery to try continues the recent have dynamics? quarters this push your yield over And that pricing take some initiatives could level systems been And vacancy prevailing lead hold? as reached you the should apartment management a up. So, that few

Andy Florance

new unhealthy I leased that I have I economic to like do So, get to very like norm unemployment, have unemployment, if believe. X% you not XX% do sort a believe communities. It’s you think it’s the -- situation. not of

of very frozen housing, get -- a supply you If to you of to days than of get X number to get you less a market.

for extremely their attractive. of these much NOI than Their up does. folks, So, in up testing they -- higher a their a upper that they’re vacancy in testing it rental moving rents that there enough of I limits fixed owners’ they’re goes pricing. mortgages, to these remains churn is with rate had that the It’s interest -- and sort believe at have rate

rate rental a So, XX% NOI to up motivated folks on new rate, These on are the They But and right? push cap be moving it’s your think push of I sell rents. normal. may up X.X%. you rents might you asset, move your and don’t XX% a

So no, deep couple of that met has reception with hours on doing received the pricing secondarily, positive. of for audit it. and the sales back an I leadership to been answer was secondarily, we’ve Again, recently overall -- people some pulled fine changes a the the very were And dive asked, anybody apartment canceled. I a side get had without and with senior

it’s Now remember, were increases these pricing pushing are increasing too, people their that that not we these price.

at rate leads. these time We which getting which are a tremendous their lower the cost reducing more reduce value per at efficient we from and lead in more they’re cost

they some lease. we’re as possible these that it’s of $XX paid communities potentially for low as $XXX, have leases historically $XXX think when giving a I lease, per

So, conversation. I it’s think a straightforward fairly

that of I We’re value. kind delivering delivering value. And think folks to want us to continue

people So, it’s responding to. something are

beat managers bring owner and us out didn’t Now, their try I’d procurement up. officer -- if somewhere property some disappointed to be

happen. that to so expect I is pretty good. So, cancellation But, far no

Operator

KBW. For Ryan our next from have question, we Tomasello

Ryan Tomasello

It’s year, room I acceleration. bright to But you heading on spot clear for a into business on think occupancy for tailwinds how XXXX and to bit there’s wanted levels unprecedented an growth, to all. that be walk where through depending opportunity, will give some of growth next of drag these of continue you apartments the a in the Andy,

ball? out you making without example, force growth for where to how I Residential, CoStar product through For sales the is crystal XXXX progressing willing investments guess, even and if upsell for that the at guidance, the get on enhancements power beyond, about in business are new Suite and hand your organic you’re also with the ramping, where LoopNet, -- tipping you’re thinking these

Andy Florance

Sure.

just bright and Multifamily looking of spots at important rates those it’s to first the Apartments.com, overall. all, keep So, penetration in

So, also customers. there’s your add two per your then new is ability and factors. unit What customers your existing revenue with to

to XXX, community, XX-unit So, the community, XXX-unit remain community. very proving penetration the community, sell, only we not XX-unit ability XX-unit we ability are still sell community, the XX-unit at at communities, at our to X-unit we’re rates, but low our proving successfully

Apartments.com. greenfield So, all for it’s

We participating we grow us have of time. can communities -- quadruple, double, number the triple, through tenfold with

LoopNet of doing new on, commercial extraordinary I some of in estate. numbers. we into other is well, see rightsizing well that do in generate -- And an so. traffic and generate we marketing believe important I an and then, that’s So, is remains believe initiatives industry. momentum moving opportunity there you norm in thing the XXXX the of I really said, very-focused I could as growth digital and really have And XXXX the is, pricing also may eyeballs share that driver incredible certainly, because our remain there traffic that real believe good in that middle these the for Apartments.com.

still estate, awareness on commercial operating I marketing based are there that or or what’s paradigms, think more happening do us a and more Everyone who on print. real in largely doing. on there’s print to think REA is And spend digital substance is marketing lot XXXX going exactly go in Homesnap. what for awakening thrilled sort what and are of I trillion and out of and folks to Rightmove was am $X looking I doing there. Group be of with

in develop or good that pretty product hasn’t residential that it agents But, and community, great And in at doing widely been that. sold Homesnap a to there pace We we’re like like. we have that. something marketed will

it’s I of for well discussion that’s of just the sort because So, consumer heard base unique you reason reason and also there majority there, expansion by into new assets side, investing built strategic features, be information platform upsell the that be revenue in blown individual builds able which crosses there expansion able progression unlocking is our the people CoStar, be solutions of value revenue to be then lot productivity our that prep growth And we’re to whole initiative, drive the vast lender, cross-border away unprecedented. of process, the the marketplaces. of field player revenue revenue -- whole institutional-grade next a I’m upsell provide the can these want are STR, I that think in to great to there’s that’s seeing Europe, initiative, that beyond the doing Canada the shareholders leading borders. be to gradual our of that sales initiatives to sort successful initiative, of it’s how a actually been rates a as just am to doing is are well. of new but the revenue the continued us all launching this upsell going on our and fact the with We we’ve for

businesses got. stuff of on these we’ve shortage no across all So, going

a happening get there, event but overall. of odd you, Mark We some there, and Drew a sales it anomalies, for and And market or your team lot some here to are CoStar. killing black in going swan just here Davidson there thank Schwartz and tailwinds things

Operator

For Stephens Incorporated. from our question, we John Campbell have next

John Campbell

On listing RBNY StreetEasy the daily in in of heard partnership Citysnap, on a fees. mean, market lot pushback NYC We’ve of the I obviously, years. of dominated kind that has recent kind

gone I to think, they day, Andy, it the you a like free this is going list. $X handful said that’s per think to I I from, But started $X.XX to with a of and freemium model, be think has pricing was but years. happened in

kind strategic in So, pricing, you move of off can maybe approach the something for I’m are or this we of future? more just thinking curious about about you to build guys, a like Citysnap’s

Andy Florance

Sure.

interesting us, So, what X using they not agents, they when number, year, to Then spend And month be remember, you them, with And spending over start a million you month, Citysnap, a $XXX get using it a might they use agents. a get MLS to us. may $XXX million are they $XXX they with LoopNet. similar Citysnap agents us we of for free, is Homesnap. but $XX Because the a marketing -- there month, might thinking to product, when spending to that’s month. a $XXX X an start when concierge buys enhanced about those that’s if not a start the functionality services, for subscribe be the $XXX, start for right? begin with may month when And it us, to then it month

of that’s right a now, going selling well. we’re that and So, lot

so don’t be like do successful. really doing, have So, StreetEasy order to unpopular what we which in is anything financially to is

So, to StreetEasy it’s I’m annoyed the that that list. like are all at going folks yes, so fact pretty up aware and the prices rapidly, pay are

they’re And fees for other agent the try functionality some brokers where fees for to get listings to people’s other using people. of

allow products chance REA then time, marketing Pro+ an So, fees but before. have which something word is not of have agent’s and kind for and concierge a know. don’t their been their pay that -- it’s such This industry, just them serve we small a the the participate to Pro+, is a it, on together we’re in actually that’s City. marketing not be or selection will they MLS York in sort feel name together. Initially, ally, little over or There’s to participate, a is Apartments.com, Citysnap very which These the like never on time to and too different marketing we listing thing allows that all to we’re the is like stuff with to brokers blackmail LoopNet honored unprecedented we which all it revenue something, are the before your It’s to offensive happened way zillamail a have is not to It’s strong New do them. seeing do created gotten of you’re solutions have agents the try And Homesnap what almost never the to an enemy. Group. in of that. something to that why are first I ultimately disintermediation similar

we this. bunch there’s So, whole a ways can of do

obviously minimize an but of these not challenges. building was Now, in But, we audiences, I it. have we taking building I’m question, don’t that. challenge sure audience and if we answered experience on like the in your that

Scott Wheeler

Sounded good.

Operator

Jeffrey question, For from Andrew our Securities. next Truist we have

Andrew Jeffrey

prices uncertain? wouldn’t in or of a perhaps I increase demand appreciate Andy, of that’s you right? XX get And revert, pricing I that key. lowering to fact XX months as -- top coming leads, I understand leverage I cost dynamic this, some so, see mean, the on and of And proposition, some in don’t place? at managers’ the pricing. period generate we I point expect put to next because Can increases think you’re you’ve in where in about just could normalize, we Multifamily the to vacancies timing words, apartment out owners’ other want the the value and the

Andy Florance

Absolutely.

proposition value really the So, we’ve incredible. is delivered

ago, generating, Apartments.com, they So, to XX. XX month, maybe were believe, like leads when years sub-XX six we I property bought per five, per

generating month. now The XXX We’re leads hasn’t anything moved pricing per that. like

going so, bring separate from these rate occupancy that levels. rerationalizing high to at the is on pricing down, slow per And lead what’s cost we in which effectively the super

up stuff more associated revenue in then vacancies communities recognizing return as rational as people in rent the our they may this see might see may communities from with lead of pricing to play pricing back many chairs growth. need forth and rentals see move then more and delivery, growth more all changes musical and revenue some needing that And economy then less. as well drive tier with listings move that. potential see we people pull we get some leads, But changes to higher and work-from-home acceleration you a as also levels So, to

pull And high before leads a ever levels, become talk than be more it folks going become fall you’re worth our the they play of may and So, if XX% right, see still clients here to he’s think occupancy before. again, he’s another But, these whammy. XX%, XX% double an leads were Mr. will role right? going Eeyore our more, could XX% Wheeler levels see it. another if I So, our it at -- to has they pull perspective, rent about to increase, from but worth NOI

Scott Wheeler

And coming in Well, for than in, hundreds properties selling we’re new structures are that for getting of prices mentioned prices. comments, July. in we to increases there XX% selling them we’re like renewal your pricing under you some are that being those positives are higher ads but sold were pricing new the XX% our paying

have point, room we growth of seen over to typically XX% with the penetrate your plenty volume to years, and volume growth. So, Andrew, we’ve

If on XX% you a of from top interesting. volume Eeyore. had new kicker Coming price that’s nice The new a growth card, Eeyore.

Operator

our from Jefferies. next For question, have we Mario Cortellacci

Mario Cortellacci

chunkier a maybe not are should deals holding, even -- about deals of Just how many market? give with that sizing close all pipeline wondering just if or I’m are your next a think just nature? different potential guys are the and given you you any more asked I months, maybe current XX deals timing still or over even what’s there current the that powder tuck-in could there in how in dry that you for guess we way, And think we’re seeing your pipeline, can the us do maybe you out sense private in maybe the

Andy Florance

going more on had There’s Sure. picked that our you a tell I I companies, Head are some could call, always we that they’re of before relatively this that M&A, nice There’s some There’s think appreciate of but tell pretty anything up down could is due I working of tuck-ins, pipeline the because X on, can things. I and you not are question, to deals or a a bit small -- ultimately it what positive We think felt at X turned that and but was really has of -- we you’re get I general -- enhance not hair pretty updated we’re think after nuances of of. much and we’re deal too that straightforward challenging, is thoughts identifies because aware a you I well him be -- and will big right significant interesting. a we’re Mario. know, little bigger. strategic it’s just that had strategic. But that Martin minutes the as diligence on right the called initiatives sort phone, that now, be anecdotally, But, anything. the it. I more Johnson, of sort value XX looking

you’re doing. anything us already our aware themes well that of. at We’re lot things can what of with, not there investors now help general right us really a the looking strategic the strengthen But, jumps familiar out are we’re that of things that are

Operator

question, Robert For have from Baird. Jeff the we Meuler next

Jeff Meuler

any I’m metro then, you interplay or rate, been the lease recognize historical deviation some the to talking the that to trends the sensitive apartment median but builds, to vacancy construction? how which that to terms advertise can give Apartments.com, with has something or in And performing perspective how relative are new within of to they’re For need in occupancy new to the there’s Thanks. the business sensitivities? business is there. on I rates? the to any us just out closer historically, for extent up or update and those And areas standard median X on

Andy Florance

Sure.

mind So, as thing, going consider here. in you just on what’s keep one

job lost that -- you ever might gained. million jobs XXX,XXX numbers, about jobs expecting people X.X think If and the unemployment you People new that the might X million creation be this jobs month. forget -- is

So, the XXX,XXX is thing -- and here. that’s the same

of to You in because communities construction we up mean, apartment always might solid fill all-time a small have they’re causes business market a movement those near the high occupied, And fully so relatively a and look the -- when in under downgrading, side most the typically vacant. softness I cranking, they of people to are supply. Apartments.com the sales is hit and which at communities their

doesn’t an cap percent there, going you’re climbing supply, Nobel take whatever apartments to going know with So, more XX% as especially X-point inflation ever that see that economist been. it’s as as business to is hedge. in laureate good it a rates down and that rents to And

market they as lot So, possibly see think people going lot I of a activity as to see to in apartments of quickly a going you’re land. with And I you’re think activity can. to bringing

that great. I So, think business is going

doing are gyrating another, versus market different one these at -- anecdotally, of in pattern. slightly different occupancy these spikes markets terms In

tertiary in the like saw down shoot of like secondary at and you early pandemic, New in beginning spikes -- in occupancy see like a vacancy. York So, saw or markets you you Diego, and York, New levels then cities, vacancies rise stage say up Richmond San

pretty moving volatility. good So, around all with they’re

identifying we clear have cut really another. from So, we aren’t to trends market don’t -- different one

is for is high. now Just country. is apartments high, And is supply right generally, but theme across it’s high, too, unprecedented and demand the an demand super the the overall

Operator

have question, next William Sheldon For Stephen from we our Blair.

Stephen Sheldon

Realla with I to the gathering CoStar like how then, guess, you and could are in And into the how you markets continue capabilities data you now do marketplaces, these data in opportunity, to regions platform? On data the commercial about countries? marketplaces important thinking do are like back overall existing international APAC, and BureauxLocaux? your likely global the too, Belbex, will assets, these continuing recent commercial expand or in one other that acquisitions to to smaller pull into France, And

Andy Florance

would going players have we’re data looking market. clearinghouse raw open the good, for a build there, to we Yes, many of be -- as help platform the backwards we we many, been These would are -- great material good, larger to would we’ve sort companies sort -- are years, of -- strong always at of for who with. part

like world. there looking deals the And for those. they around keep out So, we would BureauxLocaux, are

So track keep of we them.

dramatically their pick can can us to for valuable. set marketplace into their market I traffic, sites, terms very clients. they’re I can more already a in the want data. data, the information more X our the are we see valuable, go to imagery, mean, in is Now, just a data growing with and data pricing, and one a good like generate that that of the BureauxLocaux, that growth. on shop couple more something we community. We take ability also in United community that who we believe the really becomes wildly our of of of operate we’re BureauxLocaux the creating like people we more without gives them, these feeds I data, a more marketplace, strategies connect when but and Users valuable. people in you we like find data Spain Once data usually valuable. you’re States, their here United the in we you almost give selling give your lot some their well, we shopping we marketing investing doing And think that unique special But, the up on of are or is marketplace, cities States, a that submit for in just It we for and X electronically the the in to States we of whole the accelerate coming -- high-quality is identified us. data maybe that their of to platforms. And but of for data. a sources footprint data can in a circle Paris, other -- improve grows lot virtuous have the want is people within skill well actually with data. And build that for tool driving marketplace at a more the we people more your information selling you’re have national United pricing how a a coming phenomenon that who value successfully, up the marketplaces advertisers, propositions that your level, of very people revenue important have things wheelhouse. experienced robust for When professional you not more opportunities you world like the off data, remember

revenue across the United on same that and economies, grow which really Germany, effect will right of solutions progress with proposition We a major We’re others, Right Kingdom, once Europe Europe. Europe, we’re in making pursuing France, growth value Spain in in your we’re we’re we’re only globally. more now, and profitability couple markets. that providing see now working, -- then providing think good you’ll and in that solutions more

cetera, listings Paris excruciating you detail discussing how in good various the LoopNet. think days changed have that product, on we has presents how an two from also focused just we way and can the really it that the believe properties where to LoopNet We bringing I came incorporate is it’s for international et cetera, appeal, slightly internationally. models -- and appealing in et and markets properties, back We are a disconnected

I see in positive the LoopNet. successful United just -- the States, performs Google I it’s LoopNet where don’t market a markets so we think we have in well that a think significant I United and that bunch States. a barely can starts advantage. from any in exceptionally outside off signals takes whole LoopNet of because with And properties some

So, LoopNet. like are very fact having easily of marketplaces both, in BureauxLocaux, they border, the the which the can LoopNet cross-border in but marketing a we the across with triple invest sales, platform Realla particular, and In Belbex, do. net market is appeal a of like local international the interested have international are big, given also people the lot that

these really for-sale there. in audience. growth it out of that also international bidders the do well ultimately I’m a will it LoopNet having States with at are And grew again then, side believe LoopNet, in as Ten-X of So as actually did very-high because percentage that United chase interested I the successful Ten-X

So, for, of probably asking more than you’re couple but a thoughts.

Operator

we For from our Needham. question, Tandon Mayank have next

Mayank Tandon

you was Scott, ask going margins. I be may to around

change roadmap the about the XXXX, timing some it, on in to programs get maybe XX% way it that think as of issues that that about to get your temporary? try investment talked And quo? be any impact. the you As or that Ten-X to does Does sort you then, status model, that the the target remain I Multifamily by Andy on might of softness does

Scott Wheeler

in any Yes. to think I make the now. changes investment we model major really reason don’t have

some have running well, Like margins think investments look effective focus of forward. of where as the I we apartments certainly we’ll the strong on spending they’ve but in had. level up this other year in marketing places, most there top and they’re been very they’ve Andy performed going said, at

growth profiles is on margin leverage getting the the we’re platforms. all think strong are The across I strong.

years, that that margins most the give compared next think into continued deliver And an great part still that market obviously attractive in so, many I think of proposition. to in we important we’ll others as value come and the that’s don’t to our see we balance like We reinvest the funds opportunities still margins. available can

with appreciate of or I Mayank night. us speed last no question you And to So, the in hanging real change the course there.

Andy Florance

you to I the that, for questions. we’re Thank all with good think wind going up the call.

towards actually for we call end doing quarter are. of So, move third that, believe but today. can’t our we us that here And the joining I as we we’re you appreciate XXXX,

the two run our revenue in annualized working goal We’re short-term billion One the of end rate of towards year. of marketplaces important milestones. is by the $X reaching

The cleanly. we the second rate the Company $X for look run overall, revenue is to billion and crossing forward solidly

investments strong and so we’re international so, the And think high the franchise we showing we’re growing now to many successes lead our the growth our businesses product of traffic right focused sales growth clear and and amazing growth, strength of with remain is showing rates and while in residential on our opportunity and triple through areas expansion. working market core the addressable renewal

forward with longer I safe. fourth on normal hang for stay Until but And quarter you again there. there. look for in participating. quarterly to it’s our thank than then, know we call much ‘XX, be February a very little bit you So, interval, we’ll meeting

Operator

conference participating. ladies And Thank gentlemen, for you today’s call. and concludes this

disconnect. You may now

CoStar (CSGP) 27 Oct 212021 Q3 Earnings call transcript