Earnings call transcript Q4 2022

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Operator

Good afternoon. My name is Matt, and I'll be your conference operator today. At this time, I would like to welcome everyone to the CoStar Group Fourth Quarter and Year End 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

of will Head Harbor the Eakin, statement. Cyndi Investor read Relations Safe Now begin. you Cindy, may

Cyndi Eakin

results Matthew. you, joining fourth year discuss for and us the CoStar XXXX full and Thank quarter evening to Good thank the Group. of you all

to Harbor call Founder; Wheeler, statement. I turn CFO, CoStar's to like Scott Florance, over I CEO Andy Before review our would the and and our Safe

full discussion the the of the today XXXX and company's first and portions forward-looking including may current Certain statements, on for outlook expectations quarter assumptions. beliefs year based contain and

and to, other with statements that differ press Group's risks, Forward-looking the Important actual are filings many uncertainties, earlier those under involve assumes forward-looking as issued such events release limited differ reports based on of report to recent result quarterly available to CoStar from of cause assumptions, on factors Form and SEC, to the All stated statements estimates these update results future Factors. in to obligation in and can subsequent a new Risk CoStar date XX-Q our our or XX-K cause but results this Form statements the information, factors heading CoStar actual that including information call. most today on no statements. otherwise. on annual can include, whether are the materially not

margin, EBITDA, our diluted of release EBITDA release the also Room. measure costargroup.com in financial per discussed measures press today, issued along is forward-looking website adjusted call net those and under at The net GAAP EBITDA, definition non-GAAP detailed directly Press of to terms. are guidance located press comparable shown adjusted most available and Reconciliation the on on non-GAAP this with income, our share include income non-GAAP non-GAAP

and is of access to Please As on link a available is call. press website our Investors. today's this conference to the the also replay refer on under being webcast, release today's call reminder, how

the turn Founder would Florance. with CEO, like Andy And call to and our over I that, to

Andrew Florance

everyone, and CoStar quarter was Thank Good That Cyndi. for for you, XXXX you work. fourth thank Harbor. evening, earnings call. joining Good us fantastic Safe Group's

for of consensus Total $X.X growth end range was full billion and our high coming year or year-over-year guidance at in XXXX the above revenue XX% estimates. the of

a Our revenue of over million. growth. currency grew basis quarter year fourth is XX% in XXXX, revenue on a double fourth with our constant to quarter row the XXth This $XXX digit up

sales highest XXXX. net reaching in or We XXXX had phenomenal with We net sales. net in quarter new with a million We the as new exceptional sales $XXX sales delivered sales year annualized the well over growth a sales highest second in ever This of our fourth results delivered XXXX of by new XX% the bookings their is highest result in same ever. exceeding quarter quarter in bookings second prior their XX% XX%. Apartments.com ever $XX sales record set had XXXX quarterly over the million. sales net the and increase quarter

and a out Forest] So to (ph) her at team shout Apartments.com. entire [Page

performance in our We We profit as a adding XXX XXXX force almost XXXX, the size people very net. of substantially increased well. had sales strong in

business. performance, year was year exceptional of had the both was million, full guidance the sales Our our with grow above which strong and we an estimates. adjusted invest $XXX and also EBITDA Overall, continuing consensus high range profit to and end while

the and XX%, dividends. We a adding to world an net XX% over XXXX training into same were year. force quarter in compared by increasing the sales class was them talented and delivered representatives prior time, to with for same team. last with production the give increase XXX% of Apartments.com the to new fourth as efforts sales million we increase a get XX% $XXX the our outstanding period full revenue over bookings them our sales attract in year. XXX% $XXX another and able At an Apartments.com, of record year exceptional in was XXXX. XXXX productivity XXX sales the million quarter professionals monthly increase to over Apartments.com paid was net fourth the for quarter, sales year the sales increased up over

We than XXXX, conducted with of visits Net to team delivered quality very of our also our over The we clients Score is X.X in XXX,XXX clients and prospects, our impressive XX%. number Apartments.com both meetings brand the Promoter ever. meetings, potential existing In with highest stronger a billion platforms. history. The maintained

of and Jeff inventor linear award Our other Goldblum over funny and the audiences winning TV billion wonderful and Brad entertained channels. XX our across the XXX as delivered marketing Bellflower, Apartminternet media featuring campaign impressions

renters they continue audio, where influencers. streaming potential the reach video, to marketing renters including content and most social through consume media and platforms We

leading to at leads community of the to get Our of CRM an as the have Zillow determined analysis that many conducted to network unaided leases. would from and They successful quarter Apartments.com community rental platform leads quarter properties Zillow. number fourth number twice awareness investments data multifamily keep To submitted with leads the a fourth with rate that from proving shows a the Dynamics, all-time for over high be Rent in the ranking XXXX. new equal the Apartments.com of and in in leases provide converted among clear, our audience. twice brand this the XXX,XXX target of one order as

X almost times rental same fact, than Apartments.com provided Zillow leases with than X the show over studies rent more and period. In the more leases that network communities times network

than oversee billion than doubled on The XX we to this less needs managers their The solution category. this in -- XX multiple the based time introduced XXXX, apartment the and As fourth flexibility who properties we upcoming quarter allows $X.X properties units, which flexible than swap dedicated plans. advertise but in they in well at current perfect more and we any positioned five. under we to sales our for look are have unit product the more In managers the ahead, listing opportunity availabilities. force apartment buildings opportunity penetrate to marketing existing estimated

brand's proud (ph). may to in States. for I'm expansion we marking Canadian homes town Searches now the and in homes, search quarter, Canada for in first the conducted outside or English fourth can Apartments.com in [French] United say apartments, rent. geographies launched Canada Renters be condos the

their have of ready Some Canada's management key This United property either XX Canadian Apartments.com. Canadian allows with for clients in move the we've listings of on communities listing MLSs acquired Canada present Estate to the on support the data their States various Association. into XXXX already Real rental provided to and from us have data us we're plans them. largest or companies moved and already in to

We since are recent the organic already growth near experienced traffic launch enormous top searches. of have and or our positioned for spot at

this to penetrate rose increase for another our XX% U.S. to believe the the estimated strong brand with to marketing conditions conditions support multifamily The are and of and points market brand with ability $XXX basis in XX We annual growth. million well macroeconomic our strength we us and our X.X% demand the unique advertising. our last to sales Canadian compared along confidence product in an opportunity to U.S. positioned continue Canadian return apartment rates vacancy revenue offerings. give to U.S. quarter. The force

final to in highest an added the XX% the of up increase XX% generated and the over our over new making high over teams $XXX sales customers year, CoStar to net CoStar and XX% the American incremental revenue past prior highest We and delivered record European We're almost this XXXX, the than it has XX representatives date million over year. prior more which XXXX. ever. North the which sales $XX year. to global transitioning stages new sales in net outstanding revenue. was sales platform, year, Both sales were team million CoStar is new CoStar an of

the new getting net sales which million We generated almost Lender there. started CoStar already just $X customers launched XXX and product, and new in we're

insights complete of into This product funds, linking over expect property with portfolios. XX,XXX investment fund these insights the quarter, XX,XXX process properties to property investment funds commercial will our clients to or to The providing we invest transaction raising a strategy and gather target with manager's a fund search allow and those capital property funds and/or user -- or dry for to into country history. powder type, investment

well. deliver valuable tenant product locations. details has our with our as million X significant past, over about users the on our enhancements provided to tenant We're tenant product to In

up the space capabilities, best and to ability our to year. rates capitalize high tenants' thoughtful had grow double digit continued our I'm coming the rates clients confident upgrade on (ph) all of strength that tremendous ongoing at a how With these roll investments. of the needs. given CoStar various utilize of of can [tenant] how a the company's our users locations so aggregated most tenants with portfolios space will better and an provide understand across their in continue important product renewal can user with definitely

year trailing quadrupled to LoopNet almost XXX XXXX. the over XXXX, the sales a of over representatives was new LoopNet $XX prior XXX% in sales for new added bookings the quarter year. XXXX of fourth XX% We and fourth up Net quarter set the fourth LoopNet. sales XX% month net over sales XX record up in last new quarter were were sales which revenue over LoopNet the Net up size million in team.

now With the and successful offering. in launch have LoopNet growing a U.K. we of Canada international

planned launches We France XXXX. in Spain have and in

XXX,XXX both keywords than internationally. to closest our outperform LoopNet ranks sites strong of number and three product remains one our ranked next top continuing with competitor. the on the for traffic now LoopNet we and commercial in relevant keywords Google, have brand and to number Our network dramatically, of competition domestically twice positions

along digital LoopNet campaign and social focused channels, find sales platforms. reinforce we'll expanded on to investment media our continue be space. digital marketing including of grow owners to brokers reposition place most force sales and brand will new linear, our mix popular as leads XXXX, our force the The our a to elevating our broad and with position drive as and the -- will across efforts multimedia as In SEM a based well These marketing campaigns.

Overall, confidence ahead growth team of constant the I'm U.S. in growth well our the hotel accelerated industry in levels. ability of to international extremely first XXXX quarter has The revenue pleased we've in room in a currency of XXXX growth industry are to from revenue quarter single pre progress digit achieve and with Internationally, growth gives its in behind. the building basis. isn't which made year-over-year per STR's the LoopNet pandemic target rates on XX% of fourth average daily recovered XX% out platform, XX% our revenue XXXX. far to and the the

in the Current to and conditions believe around to owners operators hotel our provide us incredible brands, put market a we which new world. will launch benchmarking product, position new great variable

and areas very and will of defined performance. charts that preserve data with features and CoStar's software. expertise in the available proprietary and to industry combines into graphs product rate for technology their and introducing find of will benchmarking The functionality occupancy set with optimize new Users and analytics sets competitive to and benchmarking best an whilst performance their user users innovative manage interactive new report, additional acumen leading deep familiarity be hotel star the hotel's Our platform performance. properties, the aggregates deep strategies STR's insights industry deliver

Operators asset Owners acquisition, visibility tools budget CoStar drivers yield, for with X,XXX and better and performance now countries is market hospitality XXX an submarkets the users industry million have class houses into forecast repositioning benchmarking over information. landscape. markets, and more over in that hotels, X.XX This segments than insight currency. implications. XXX data disposition. competitive selected including have will X,XXX asset clear and of users supply access from manage their performance for inventory to XXX,XXX will XX,XXX demand data access unique and These identify and to and participants data valuable performance, in will their

relationships Hotel Brands support full franchise suite owner contracts. and to its and have management will teams, development

significant relies industry and on product hotels our achieve goal we'll are including outputs their improvements. will track digital and base product and XXX,XXX to experiencing digital we're unlocks already XXX new CoStar. penetrate in effectively with short, independent customers market. further productivity These new help -- They've that clients. migrating corporate a enhancements an the XXXX, and begun value In to be addressable to million marketing our we're for those $XXX on significant and gain platform workflows entire to During us this utilize hotel share X,XXX the users, integrate significant to experiencing

which in face year significant year. slowdown compared had the commercial $X XXXX of overall was sales declined last increase Ten-X Ten-X XX% billion to This platform over the billion and in level of asset year-over-year. XX% seen fourth XXXX. sale level for real since estate to the highest closed almost platform XXXX. the highest volumes, of brought the assets for we've That's in performance which those an of in a is the sales $X.X last up since quarter XX%

platform continue see XX%, indicating We picked not approximately to has volume non-distressed brought percentage of yet in the distressed assets the the at to consistency of sales that up.

revenue the Ten-X efficiencies. integrated on enhancing XX% significant Full year-over-year. from platforms auction first platform. our operating that buyer they week and and for our driving We with last Ten-X In property CoStar bid the year that's progress LoopNet grew now had within we and a for made fully property. XXXX, LoopNet sales Ten-X We've won and

integrated Ten-X integration, higher to sales since force positioned now With volumes. now. last is So doubled they're our handle Ten-X really also dramatically year. the fully We've

accounted in they XXXX under for XX of are the productive represents XXX% total assets and year platform assets. to XX% prior more brought months Ten-X and the than New tenure sales with

transaction in continue buyer those of to in XXXX. continues we've a property period XX% expectations. by and course due offline of of the with seller significant XXXX. exceeded CMBS is of in reflect expected the maintain old The Trade the trade rates a disruption over and advantage commercial rates loans Ten-X billion come market spread $XX to to

market So the challenging within conditions. more days A to offline well is we're a a dramatically effective. days compared for can has transaction a XXX and positioned as average that approximately of platform digital down in advantage significant market close market XX

Analytics. January report consumer visitors I'm to climbed Google making pleased significant in that year-over-year gains on Homes.com building to Homes.com. according Unique in XXX% traffic to we're

increased Our Homes.com over SEO XX% to month month in January. traffic

visitors Homes.com January. to XX was at Zillow In approximately XXXX, was Our traffic com over Redfin flat to over to January increased had X%. X% ComScore, increased According was according January down about Homes.com traffic down XX%% our in SEO January XXX%, while Analytics. million month in Homes.com XXXX relatively indicated Google month and total, our unique XX%, Realtor.com network ComScore

do United roadmap States. We have heads we the but still the down here, real have clear portal a lot building on of estate focused our work have a residential to best in and

this in XX% to Our motivated begin increase have monetizing given we'll believe be mission. We Homes.com Homes.com over last agents now million We in team committed traffic our of working date, progress in be on the later registered which over is a excited to part of our this. to year. highly an that to position platform, X year. is building They're the and on

we year, and Homes.com integrated platforms residential the Homesnap successfully one of the efficient back stack. ends into During technology

We're on making significant progress executing strategy. your listing your lead

offer sites buyer somewhat presenting buyers a other highly are buyers agents potential inquiries take experience consumers their consumer based injecting experience and environment the that from than willing of for agents that commission we the agent much free free the homebuyers While to rather do believe to We're hundreds the dramatically home those a know also that offer buyer and the based is skills portal. of sites split interested who and the submit. agents we buyer property qualified try upon agent friction to the search best buyers the listing thousands up experiences awkwardly, in commission on give connecting We into with directly how in. better

funnel leads we cold We used buyers, models calls some percentage a in. experience small I've agents properties you're all believe experience over from lead believe moment months questionable only with a Homes.com remarkably afterwards, improved submitted myself much for and competing monetize The better bombarded market who these a and aligned just offers the leads we a I'm experience to submit sites awful. have you of with agents. is we for estate superior also Not competition. very interested The on consumer we significantly offer countless qualifications. The to listings a of agents' use believe in agents. that competing do real are consumer that

these In agents a of all to by some agents pay better. fees competing serve these can small the the downright We leads are majority your these value agents' agents all their respecting little of the models portal. agents listing believe diverting So, model, we the are of your a if paying vast number not that get who disadvantage huge lead, few and by competitors.

the experience to We have and are process agents the connecting for to we're again ourselves find inappropriately. with though, listing for who and with needs the agents not making just match buyers buyers providing it facilitating in that value without the trying best of the those then us to inject easier expertise with them them are and collaborating

product teams and featuring now Our development profiles. their of research thousands and agents of to released a hundreds media directory agent enhance extensive have robust

Realtors running. collaboration We've experience and across to consumers. Homes.com tools product from replaces the and text Association agents in of between and we We've we email tremendous agents our both successfully X,XXX back demonstrate board. agent November are interactive and feedback historically received had inefficient where and and the The up this previewed the Our National forth at new homebuyers. close positive feedback very Convention communications to agents

for in which was revenue was roughly compared to segment in Revenue residential XXXX. $XX XXXX, million flat

As less like legacy We high mostly call, search intent last less Homesnap revenue, strategic than agents. social this media believe this our in sticky engine from the Homes.com. is is we marketplace advertising to generate a revenue we'll revenue mentioned that and selling and

other Homesnap the In products revenue. year, future the in sales segment higher Homes.com transitioned We deemphasize to more have in yield of product. our resources residential begin back bring to most we'll effectively we the later resources Homes.com on of of favor continue marketplaces the sales to as part to the

Homes.com. where point we Our planned as increase are approach traffic in Homes.com ready later to into drive will to the monetize to marketing we year investment the

shareholder News announced month And Corp As sale the Inc., Move before, a of to opportunities operator including value, potential assessing were effort. the is with you've last strategic us always part Realtor.com by that CoStar respect acquisitions. maximize ongoing say of to heard of discussions

comment acquisition News acquiring of light on While we this Corp's in point Realtor.com. Group CoStar prior opportunities do here at announcements, not typically not is potential are confirming we

of But At not tremendous and for people again, make have the is Association behind Realtors. the point, Realtor.com. acquiring need Group respect National clear. Realtor.com We CoStar this for I to it

model believe well interest are and We agents generally. the Homes.com's business members that principals to NAR aligned of continue our and real estate with

quarters much of real the now second to show sector weakness XX.X%. up significant properties The Many higher XX.X%. at Availability Turning XX% are at vacancies generation XX office office rates estate to now economy. continues past stands the with distress. in and are

see of We but expect with choice many to bank. hand keys back these to to owners no the the

over first are We're pre-pandemic also in those office that touch efficient properties believe people people a on do over of office levels. for I That I market. recovery are together that person. more is and Castle recent to Index well more office are assist momentum the an though. climbed they at come positioned believe believe home. productive, there when showed shift in XX% working means than possible time reading because to for the mark as I that's in out more in in work working that the the A Ten-X recapitalizing pandemic years they since to hope work usage are together in as competitive. teams

the term sector's is a seen or pent posted demand X.X feet work vacancies there and for since as the the goods continued start rise sector's period, high of added significant to amount the see sign be the start the beginning absorption positive of to seeing expect square due fourth future. million the we their same of since long of for healthy jobs The to are supply demand the for to near quarter a office million using negatively term, at the average. continue and pandemic, and space. new of negative an in levels since trend unprecedented may The office properties industrial pandemic. sector office continue to half of return we of XXX over the time of be the With beginning impacted sector up While pandemic office vacancies

the sector the fundamentals only demand vacancies retail exhibited a class and and the supply strongest relatively Relatively fourth decline. both in was trends has of supply are leading seven asset see lowest the ever to seen The low consecutive quarter vacancy new continuation strong rate for beginning a X.X%, pandemic. Demand retail since to outpaced quarter the the of vacancy of recorded. fourth we've quarters

of So appear death that real a was the estate it would only rumor. retail

but X%, at homeowners market than due issue the over existing have historically levels sales to now moving housing years. the residential is you soared XXth not from of finances in the having has to at pandemic during in likely The see continuing rates money, XX terrible have discouraged An rates, overall prices resulted With XX%. seen know. buyers fallen priced Home more existing this softness. drop being combination, affordability In as mortgage cheap and month. being due to of out for consecutive market low home climbed

of revenue We've productive second That's which recently celebrated over ESG new Investor ever, XXXX. executing probably to highest our S&P XXX the the on opportunities. double-digit years sector achieved environmental report, have sales many XXXX goals the of and can now our our year our and sales growth. significant market our to governance connected we've our of social website, We in bookings and net XX NASDAQ X,XXX find the highlighting was we and XXX. for Relations and accomplishments fact introduction you published straight representatives, now that

We are now reporting our emissions. greenhouse gas baseline

leader in sustainability. Group, CoStar a to being prioritize continue we Inside

of buildings or STAR hybrid vehicles, a certified of for ENERGY XXX research have We most LEED of XX-plus we our electric or fleet over select rate offices.

all by created driving capital both I'm publishing virtual facilitated making transparent disclosures, company as as We've Homes.com XX property analysis. of through diverse over our do be. tours. our marketplaces equitable sustainable, EEO-X and transparency proud as that the we've can traditional to a of we're and still million massive people all by diverse LoopNet, amounts Apartments.com, also increased potentially extremely physical land done am would poised have thereby and tours CoStar carbon have workforce. in pay avoiding GAAP of I that and including Group for We our encouraged been human that

the employee is average climbed XX%, is just our which above monthly engaged highly highest below X.X%, the scores business engagement proud have reflected in to industry obtained. rate scores way ever is average rate professional which engagement of we've XXXX Our workforce, which We're to also well and of voluntary a services turnover a low X.X%.

with to point, at call Scott approximately I'm Chief to Financial that, XX% Wheeler. going So turn this over the Officer, our engaged

Scott Wheeler

Thank you, Andy.

through I about of tenure then my script, Tim. rate probably XX% think that are I'll brought how's our and increasing or get your I'll given Actually, at you turn off down mic, the you think the turnover here company. I

So for that thank you contribution.

a talked rates, we've economic So XXXX this, continued of uncertainty Andy with recessions. and so the in light interest business, very all that had strong a certainly the of to fears particularly as inflation is of for year higher lot

past many fortunately, year. You've declines in companies revenue not seen this technology and so is situation. certainly companies, cost our particularly that But their technology that seen property cutting CoStar steep have

over many out times but it's the this years, pointed We've repeating. before worth certainly

is model economic resilient business Our and to fluctuations. transactional extremely

of for continue renewal We subscription XX-plus stronger we're growth believe, strategic, our model It's this a opportunities. have balance information, and we in monstrous disciplined all, to XXXX and us in important coming with ever. countercyclical sheet. a invest time mission-critical biggest revenue percent than to All marketplaces, have rates, at I out

Canada. which soon build United and on Apartments.com later. now in leading the More the marketplace States to that similar when As increased in levels believe to is we strategy rental investment our undisputed XXXX we

quarter around. all and So in in XXXX, financially, certainly fourth crushed we the it

We the high beat our our topping range of end quarter, fourth the quarter. goals again revenue guidance in every once

the initial above that revenue forecast XXXX. well for of year is communicated of at $X.XX Our the the we beginning

was growth Our year. rate XX% for the organic revenue

Profit quarter results exceeding above the for of range. in high expectations our with guidance fourth XXXX also end came adjusted EBITDA

our operating while margins get progress margin excellent made commercial for of our we strong program marketplace businesses basis X% and the investment improving XX% with established spending and XXX within less. in XXXX goal Our information by points leverage, year, residential delivered to

the repeat Overall, the that was million out the the XXXX range upon determined set improve in to the adjusted we ended our in EBITDA, year to same $XXX with strategic XX% performance of which We're start middle above guidance formula. year. we XXXX using and

is levels our Commercial while accelerating engine and is focus notably profit businesses Homes.com residential commercial revenue cash expansion. investments, and flow growth to most margins. strong Information This marketplace our provide on fund growth leverage in cost expected and our delivering to productivity, Our marketplace operating increased business

With regards our I'm revenue have to to my performance various year in give and to this outlook vote going Apartments.com. MVP to businesses,

of Our we're at to points X the see network a fourth peak level third the and of properties accelerate number over positive in level and advertising grow, XXXX, in at volume year now XX,XXX. mix. ending XX% continued XX% multifamily signs revenue up quarter. growth throughout We percentage ad The quarter, growth from on revenue in the both the Apartments.com continues to

we see As more in productivity XXXX. increase ad volumes creating XXXX to exposure increase in mix. in new XX% certainly We we revenue levels lead by expanded their and moving sellers to increase, sales their our rates their these force properties and expect up vacancy positive Apartments.com,

to year growth for is revenue the XX% expect truly an increase ahead. quarter of XXXX full first the still the for we for and comeback best XX% amazing That's in and Apartments.com. So the to this year team, past

our our to global quarter year, than approximately with growth efforts XX% of CoStar and XXXX grew the guidance. in the that strength in sales XXXX and CoStar. $XX which upgrade was of initiative, higher points date line X CoStar's full revenue product rate percentage has XX% for contributed to on the previous of the revenue revenue fourth million

renewal completion growth upgrade CPI. throughout CoStar campaign product expect to soften nears year moderate to to somewhat of we XXXX, year full XX% the revenue the rates is For our with pricing global expected as the and CPI

the XX%. CoStar in of growth expect quarter approximately to We be revenue first XXXX

the of quarter XXXX, in year for in with line XX% and grew our full guidance. the fourth revenue LoopNet XX%

XX past last months, with the six us LoopNet sales heads those the over months. Over XXX of joining two-thirds we've hires our in increased team by

bookings new contribution over made in LoopNet the of dedicated for significant a team year. Our to sales net the increase XX%

As LoopNet ahead, increases experience we our up sales. expect further the ramp in their new year productivity in and sellers

growth with We will around that XXXX XX% up revenue that the $XX of million. quarter We reduction $XX now revenue decline of for the is for of LoopNet a and slightly that the revenue guidance estimate annualization full scrubbing million residential, million expect first XXXX. XX%. year to the concierge and XX% resulting the XXXX $XX revenues the Residential to Half be XX% product range around was $XX revenue discontinued in full another the MLS growth from lead previously reduction year, from provided. the in million we fourth from XX% Homes.com quarter $XX and approximately we in of in of million

and Pro X over agents well registered million the active on continue Plus users nearly platform. XXX,XXX to Homesnap perform and with Pro

quarter. quarter further not the at We revenue advertising Homes.com in our million progress products million time as first expect growth approximately of was $XX the marketplace $XX of revenue in updates residential fourth from XXXX, this X% year-over-year. in XXXX provide estimated of forecast. make a Other the year. We've included We'll rate revenue throughout we

aggregate in sale perform lands in for to Our well, continue of growing the sale fourth quarter marketplaces for XXXX. and XX% business

in XXXX a fourth expected the in the stronger revenues growth. in disruption before quarter transaction fourth solid the are XXXX. recovering half half Ten-X trend year Ten-X of the continues with year-over-year generate revenue the to and second on the with first sequential lower over quarter up despite slightly markets, of basis of revenues significant to

range to growth XXXX for continue sale run and other to on the in revenue deliver revenue down expect expect XX% the year revenue expectations. marketplaces our in XXXX. We of lands marketplaces to year-over-year transaction Overall, of sector Ten-X XX% with double-digit XX% strong XX% to in lower growth full we Q businesses

in grew ahead and XX% XXXX Information revenue quarter for full Services the the year fourth guidance. our XX% of XX% of

to For expect to and of growth we XX% XXXX, quarter X% the revenue XX% year full growth first X%. of range in

sales year, over totaled sales the end Our an levels. sales at reps X,XXX the increase teams force the XXX approximately of people XXXX ending of

pace and XXXX to more to our beyond albeit We primarily sellers Apartments.com booking continue effects XXXX, LoopNet levels. grow positive the both become and produce the to which as from in productive XXXX We're with of sales expected from of already acceleration lower are revenue than growth force we benefit selectively new strong and to seeing countercyclical little in focus a this they at in in occupancy a intend sales contributions expect investment over time. results, the slower on

renewal for last longer quarter, contract strong communicated while quarter or in XX% been who Our have for rates we remain rate to the the range remained fourth XX% in five subscribers renewal that at XX%. customers years the

of modest was fourth and the and effect mix on residential revenue both reflect unattractive of LoopNet continues positive products XX% a in XXXX, of in previous for XX% from of up some year multifamily X These climb the improvements sector. quarter quarter third to down increases points Subscription winding up from contracts legacy and annual XXXX. sequentially in percentage those the and

midpoint looking growth million of $XXX an So revenue we XXXX, at $X.XX XX%. rates range, to the billion, the billion approximately annual to range increase $X.XX of of expect ahead implying from to

XXXX at range is $XXX growth the $XXX expected from quarter representing XX% of First year-over-year revenue revenue million to midpoint. million to

going home around big fourth the be into Apartments.com. run into here rate the quarter. question it billion year is, be stretch It's who's $X going and the as exciting or to the the to we watch to Now the down half reach CoStar second get of first? Will revenue

our growth commercial CoStar, growth sales for to and With in we marketplace Apartments.com businesses our of and revenue XX% digits accelerate teams, commercial with organic strong XXXX rates LoopNet in biggest growing the expect bigger XXXX. in revenue businesses information double XX% to from

commercial of deliver similar XXXX XXXX order operate We residential to reflecting range growth perspective our provide marketplace a EBITDA on to margin levels an to of in year. million, we achieved Homes.com investments. $XXX expected adjusted EBITDA adjusted margin approximately in capital as businesses the for million for is to in XX% adjusted XXXX plan our $XXX in EBITDA rate the

margin at XXXX of is of XX% the midpoint. $XXX indicating a $XXX quarter EBITDA the million First adjusted expected range million, in to

of quarters XX%. of most outlook move our with quarter adjusted we company. and is to the XXXX fourth XXXX, growth XX% around XX% future improve through margins modestly second important are EBITDA range margin the Included expected strategic a As to our for EBITDA in in of expect during third number adjusted the investments the to we XXXX

to As Andy and with investment plan our increase talked levels through, significant in residential we're marketplace our progress Homes.com making we regards XXXX. to

and Homes.com. continue focused creation to on development, traffic Our investments content be product on building consumer

over the our year. that force in which were Growing XXXX along of in to the new all the across sales our plan sales coming to another of we area of added add with XXXX of cost resources investment. middle new and carries major this businesses year, added investment the important is of The the in sellers majority

to many generate return to salesperson invest and our fresh become both We of happy fully quality expect and sales Apartments.com LoopNet cover carry this aligned so is plan in than ahead to team in team. on a the sales marketing Closely marketing provide our new campaigns leads the necessary of productive. We more with when investment point they the for sales air plan to with our growth at are every great sellers.

to regards the expansion and order information areas content with marketplace we build CoStar European in to investment, of Finally, LoopNet our plan to pan-European expansion. continue increased for growth

of So interest and I'm at we in encouraged markets a in healthy the rates a exceptional all XXXX the by very volatility. time created and when inflation dose economic results summary, delivered

sustainable established Our meaningful team producing most businesses. is our commercial our on growth investments laser-focused while strong levels in profit

XXXX. targets remain $X in in confident marketplace, we I momentum of early success adjusted that we and the EBITDA last on in With the increased long-range achieve year in billion to set Homes.com billion year the residential pace are our revenue $X and

and look team a update our months. of XXXX, entire to fantastic couple thanks in So forward next the I for a CoStar to

now will over I call the we Matt, start over turn so back session. you. that, to With Matt, can to Q&A the

Operator

first comes Your of question Instructions] [Operator from Tong Sachs. the of Goldman line George

Your line is now open.

George Tong

Good Thanks. Hi. afternoon.

. EBITDA investment you will are investments this the touched XX% contraction in path as nonresidential the your on to your XX% going, what margins at your look significant midpoint. and where bulk businesses by of year And to of be EBITDA year on assumes priorities. would this XXXX like? margins Can guidance elaborate you growth margin the some Your well as what

Scott Wheeler

George, the for question. thanks

and significant have I size we that year. listed listed in the yes, plan So And priority I investments investment as do XXXX, for we're working order. those the a on in

residential investment will be So our increase have we as that you in can XXXX. the will into expect, biggest

resources To set that your question that about the commercial same XX% businesses, this to to I margin rest on and we out productivity year, the business. our the level focus the of said commercial for the we as expect of teams and out we next of we sales almost deliver continue getting margin our side year business. in and really reached the commercial

back since the at the the and year XX% at next about and that went the that are at XX% made to Interestingly rate So but this the point in that's way, and investment XXXX, when also moved margins we our then, wasn't residential planned have margin up we'll to a enough, Apartments.com opportunity. be Apartments.com we of X market Xx size nicely least in with

any into now now the make up focus investment that think going is why that that for time and guidance get past think growth the I we our We're gives we're not ahead is So XXXX. of you right sense of XXXX. right providing margin to where investment to a

time. give tuned stay you We'll more throughout we'll So move as guidance there.

George Tong

Thank it. Got you.

Operator

comes line the next of Citigroup. Christiansen Peter Your from question with

open. is line Your now

Peter Christiansen

for the question. the on considering the past and you evening. considerable now firepower have move results. Good moved Thanks Andy, Nice balance that sheet. still we've

think for to opportunities residential you're head now or segment. do the trying still existing leaving side I and you as your M&A in is see where -- more maybe the now towards Just commercial, mean,

color Just these wondering you're M&A thinking days. if on you can how us some give about

Thank you.

Andrew Florance

Sure.

and one assess other are been potential -- complexity exploring each opportunities and there have have as opportunities, ROI for its in we So there risk. wings, been different we in the

additional both and commercial we're opportunities that we're out in there So buy at scenario looking also residential. versus also the And are build at in looking there continuously.

a could there where So buy or one you another. a are you you could better a real a ROI on use could could estate property an build get use seasons or existing for analogy, And different each you you property.

positive market. success of now, in you can getting the on see right some we're approach the we're see the some to traffic So we're of we And feedback growth. the having taking

feel have offering no we one that there. else offering the unique so on we And side organic is out a that

portal -- majority the out in anything space, portals. And opportunity. organic, agents a that more vast remember might from It's and more acquisitions strategy leading inorganic the the so building on a that buy organic little support of residential important we're don't an focused on to that residential the

anything So existing that residential buying I from of maybe believe agents active portals. aren't the XX%

attractive think then that acquisition help reach opportunities. that organic opportunity that we there we goal. related very And also so And there's a think there. less you And are acquisitions are there directly

the So you and -- it's a changing making as best making that investors. sure ROI landscape you're and the judgments you for it's go believe

Operator

Your the from America. with Bank next comes question line Balsky Heather of of

Your now open. line is

Heather Balsky

you on about sitting like how of cash I you're it balance with a like and it thinking do tuck-in guess, you of balance -- balance if lot acquisitions are might the sounds like that your in are guess sheet? be to and guys I M&A thinking, some your Just or investment, regards sort sitting transformational. sounds organic, to going sheet sheet you're thinking may question. cash. on your sound organic back thinking the meantime, the maybe something you you're

Scott Wheeler

in strategy we is view capital to capital obviously, helpful returns that the that the Yes. on and through today, have open last we Thanks the we adding we many from of for . against course, our capital vehicle, capital with us over in the bit the have. help that continued is But scale keep future. that's rates that pipeline alternatives opportunities focus have still how gone try acquisitions goes which the we'll to And as And near the It's to that in years. to time on. thinking that. question. capital the we'll of few The up interest to meantime, acquisition our other the hope meaningful and a company maximize for raised that about other why always deploy we're

Heather Balsky

in residential for in Okay. XXXX? of squeeze spend And I -- apologize, just the in may what investment I terms

that. about Sorry

Scott Wheeler

ahead. Go ahead. go no, no, No,

Heather Balsky

Okay.

sharing guys specifically spend, would dollar actual XXXX, residential Just in for that? the you mind

Scott Wheeler

with Matt, Yes. Homesnap, things information that They're of we've that now in No, our everyone integrated And let rest that we've stacks runs I'm our the integrated XXXX. in marketplaces. provided sure haven't wondering, the explain, me technology Simuro we in that all combined Frank is Homes.com.

team as have our We the now residential under Apartments.com, well embedded research Ruggles, resources in LoopNet. on Lisa CoStar for significant as working also research

and we other And have information, so the all different those property the folks property deploy produce do and shoots types resources media out that field they into they go as to information. across

in And of that don't so we're would hey, and say, what each businesses. spend or on we working back go record to our track sheets by margins going time way track to everyone's a the time

not And margins past, of and as we we have integrated do of provided the by you know, nature we that run. intend the don't the businesses because in to business

out. year was as of So go this more and what to that that this break residential out work into integrated comes found strategy we we a lot that difficult

that commercial breakouts commercial what sensors, and the looks given do you to the broad can think in I margins, different Now businesses. the growth, get roughly revenue by like give we

the you residential revenue in is a to allow to we that strategy important of by the we're this where billion residential can knowing get how years $X a that opportunity get sense that will about so for tell again, And before. hopefully, we've invest, a or willing amount we're to us got to in everyone spoke So to phenomenal that going. few

Andrew Florance

to elements it it investors some call to we put want be detail, there where figure an script but is analysts easy. competitive believe we you make here want stuff out, and the want, terribly every don't and And transparent on to can of earnings that in don't you

Heather Balsky

you Thank much. Okay. very

Operator

Thank you.

the William Blair. question with Stephen of line next comes from Sheldon Your

line open. now is Your

Stephen Sheldon

thanks. Hey,

Andy, ramping in doesn't you've really could seem Scott. later you And guidance I the content, start that investments like et think to that better cetera, monetization like year. XXXX. revenue said It out, this the assumed residential heavily laid So it you're residential some see in you seems pretty that of you

however the monetization residential So you some improve? to XXXX want see really could and revenue that when to you expect And operating on you'd think detail or do disconnect, between be expenses. just get residential peak curious drag more it to frame

Andrew Florance

and investors uniques. do we I a to XX uniques. we So of were in And the point begin first believe a January, million XX we where number with discussed monetization at million levels at met of

our of little there. we're ahead plan So a

of It the And just product on half to no timing XXXX, back of be in resources that offering would we that it. be the it focusing the because the year build to are or way out so out and that revenue to of build sales meaningful would apply ramp-up.

think I investment of psychological see peak that the it. question a where to element you includes

which where I traffic the a of So first an not stage you investor or positioning at the of monetization point are or seeing think is yet strategy unique product. seeing

say to From that XXXX success be is XX. of showing XX, peak period. perspective, hope signs that would would I the probably of And negative we psychological time margin operating

like analogy before. if building acquiring of done third this you year, we've number of So up. if of just you're land, first year use you're permits, bidding We've the out, you're it you're design building This a second built and the out property the number building buildings work, the getting is a the you're times. leasing year, a out building this

to early lease building see and still repeatedly of has the near groundbreaking repeatedly, the realize this they can as and it. start people of it eventually, fixed and repeatedly three a it begin buildings money excited come and a But in because in initiative. And make get people lot pretty a so up year you on cost, typically, it. digital when the phases. imagine We're really And to to can we're two, they up, two

So substantial would and a would could world in investment that there that is more be appreciate. XXXX, but the investment KPIs see I I year. anticipate XXXX think with

Stephen Sheldon

Makes you. lot of sense. Thank

Operator

you. Thank

line Your Stifel. next question of comes Ryan from with Tomasello the

now Your line is open.

Ryan Tomasello

you helpful commercial in for I around the from the in mentioned question. I but current step to XXXX, attrition guidance, in guess of headwind acceleration see for taking albeit terms is CRE prepared any growth the be you execute to ability including environment, the year focused LoopNet, of LoopNet understand what your and growth Hi. initiatives specifically with remarks, weighted, there significant CoStar the in guess, terms back-end and And contemplating owner can Andy, -- that talk as takes this Switching puts for would in there. relates broker core the the down in gives nice growth product. in for to in what particularly about this on your backdrop, the LoopNet. advertising base the confidence to at Suite you're in Suite for business. it modest Thank to the over Maybe you beyond

Andrew Florance

Sure.

we of So shape are in side, any the form. CoStar brokers with any seeing renewal And way, or on rates friction are the fantastic. not sort

now the bit global of sale you You estate year. bit had we've of real there platform force a valuable the a other do got some surge initiatives of sales equally on side, with we corporate to surge a focus last are things the But a a side on think that our is -- one with had we and the began lender over the owner side.

So continue more to growth we in feel that there's CoStar. rate that ample opportunity than

about made think for XXX that about comment I I've same been and right earnings it calls.

market year, and real brokers sales an collective junction at opportunity we last the on there a owners, after force ever that this a spoke capable this force did very we're a of national extensive LoopNet at going important our researchers, a focus earlier building are that information level, of estate LoopNet users. sales side, we've we from really end first We up actually of where groups set corporate dedicated and for is tail level. with time at earlier had from from And

the XXXX of was all LoopNet in vehicle Fortune real most to single to the the the leads for to which find LoopNet of using out things is XX One important we XX, me folks talking believe were impactful facilities, that that really estate. heck estate marketing was their and we're select real commercial

game smart office, not and wins particularly game a a the in in people in shot say, the situation marketing it's digital would their with that a where, And that in where in back -- chairs context sectors, properties campaigns musical big I filling game at person keys and a bank. the a handing best the is some to in that tough is believe environment. themselves person tenant tenant up of give invest a there the to without

or outlook one, makes very it up rep market two, us assets individual rep and LoopNet gives sense. but And market conditions help it see we the me with digital It's the is with at that keys failed I skewed, they to them stupid So which how when by minor broker hand and investments just to relatively positioned an owner marketing. a building just a a that by looking I'm in It that LoopNet think am people significant at valuable what optimally is. on performance. gobsmacked back may talking, move I with problem leasing their cause to

you're again, I So and we've hundred to hours accelerate. my to I that that rate marketing opportunity of the and confident? that, believe does groups, seeing already sales after that sound go growth handsome? is opportunity us to believe focus executing I a got continue from -- will product think it allow and Do force of Do a a us listening child like winner accelerate sound I building

Ryan Tomasello

Great. Thanks for [indiscernible]

Operator

you for your question. Thank

with from the line comes Jeffrey next Your question Meuler Baird. of

now Your is open. line

Jeffrey Meuler

in margins. don't and know you you just sales the as confirm have And Yes. and marketing? significantly are Apartments.com the margins Thank force And want I in margin can product for LoopNet well? Homes.com you. first this Or second, then that, the formal like initiatives. as nonresi, Apartments.com as XX% help then, Is other or year market guidance? the level with the I investment aggressively subsegments more the that's well so part. to to But QX includes that us just marketing that you starting early flattish

Scott Wheeler

Yes.

commercial that the part platforms. those in referenced So Apartments.com, investments make question, all marketplace CoStar, your of of businesses. LoopNet information Jeff, to margins first includes I on the the Yes, the we

ahead year, So is into general. first everything year residential the quarter we of think for that did the along hiring marketplace. last want the the notably spend of impacts more do keep to we with in the marketing give of the to outside And then our the those that quarter of we quarter, in I first wages in It's the second as inflation. increases base of the any roll employee across year, first half the company which in acceleration more of it's opposed

through and as year moderate it So then we -- resources hiring that's many as we that won't or those -- sales will seeing before, we increase, what out go the I we're other mentioned like of be forces flatten that this year.

Jeffrey Meuler

you. Okay. Thank

Operator

Thank you for question. your

the next of line Your Stephens. with comes question Campbell John from

Your line now is open.

John Campbell

in squeezing Hi, my question. guys. for Good afternoon. Thank

organic basis for Just sticking conversation. build to maybe Andy, price M&A versus I you safe you when traffic down get necessarily acquiring about versus building not we to just coming fully should it asset? an committed can the the talk whether you're Or the based now, buy, it out with guess, on roll the assume on it? is that right that right to the

Andrew Florance

think can don't And I you you rule described thing. accurately. a out I anything flexible think it it's like

are into again, if or there fortunate too were very felt fall, sometimes have viable I we -- M&A would going year opportunities a it this path. there to are say, many organic And the almost are into many, going think there. there I out

things. not number are we're a at there discuss know, But So things detail. in these kinds to you liberty typically of as of

John Campbell

Understood. Andy. Thanks,

Operator

next Ashish RBC. is The question you. from the Sabadra of line Thank with

open. now is line Your

Ashish Sabadra

question. conservatism just conservatism these broader as we quarters. my and through the like investments? expectation some numbers pretty Thanks something the well upfront we year Is Thanks. this had raised year, saw and growth beaten guidance we being around similar a pretty I we resi baked went that's where for a taken a question the Last taking for about that saw and as investment, in. have

Scott Wheeler

appreciate I Yes, question. the

last last we investments really started $XX when much our back we've coming when around parts range. on. uncertainty think look year As time, the were of range that provided bit we which of to in some the kind uptick broader into I our content gave you It sort EBITDA had we to into that we initiating when year, of in other never little year, focused was we million, of the that progress our make particularly outcomes a spoke really a really investments, and we were range

we always do building we're and so to come include it time see see launch products but looking at opportunities spend the that investment where we to point saw our is the tightened and we then able we've we less appropriately, those So challenges but revenue, we out fortunately, think of we'll up to more investments, not or And go at I areas. those we this the were ramp-ups the where in would right what too year, then adjust spending the put in you year that the range in we're further line which are for that a We're much, pace, for it, the our But gauge year we making. minimize we we a the does investments little time bit quarter-to-quarter, into let more. and marketplace have you some we and when of in it's can and definitely progress the know of beginning that being sight changes forecasting. that better said,

year. So an the of and stages line of in think cycle, have to you provides a guidance expect the ready investment I this would that sight better I changes little hope you as I you But -- in for there. think we be along early have a way. bit

Ashish Sabadra

helpful. Thanks. very That’s

Operator

Thank you.

Truist. question Andrew of is from next with Jeffrey line the Your

is Your line now open.

Unidentified Participant

little sort I you maybe targets margins growth give a revenue what investing there that side? the you business? of you be and sneak Thanks as opportunities, business think growth Recognizing, a peak you that to some Can of to recognize investors taking you good bit of Andy, have should in as Are there. looks you're being as these record, light in the of identifying up against start revenue this residential, you that has them the we out, question. other Appreciate out down organic mid-teens trade-offs? a track of about us outsized stomach company putting Hi. Can this asking guys. evening, of the Good the it. think pointed monetize like residential. do big year and fact for another a XX on very

profile like? looks wondering a growth Just of of CoStar in investment kind what post sort

Andrew Florance

Apartments.com like. something I gives a probably like believe, has, -- a I significant I good that multiple think precedent of also a and CoStar Well, establishing post It Apartments.com is you that and in growth a and world the decades that that would follows for and view of is presence proposition look think with there's that value that around you it ample on platform LoopNet. what unique have and

north billion is is market, opportunity. of vast $X So in mind, dollar multibillion-dollar a multitrillion it a it obviously And is is it my it sales EBITDA opportunity. opportunity. a definitely And revenue a

of build you So investment to growth the it it platform took out side investment similar for building a building. decades, investment high-margin build build as investment it apartments predictable platform take took to it as the to it, get to took as the platform. But out out CoStar build other to platform does LoopNet the out the

not never -- you up. because and but similar So building build lease to

and more can once of keep You you selling get just it more there.

would yes, we're and into So that further I the say process.

bit, our today. which little in to grows some of leads confidence positioning the Our clarity a

Unidentified Participant

you. Thank Okay.

Operator

you. Thank

Next question with Silber of Jeff line the is BMO. from

Your now line open. is

Jeffrey Silber

much. so Thanks

sales on some salespeople especially still find hiring about the investments. it force, I'm it what's easier going area. curious, You the real in just Is in but you're estate six moderating given than the talked maybe to going of market, ago? make XX was to to months

Scott Wheeler

-- I through on Yes, been so. stage. hiring that we would we've a number elements. think large a One is Yes, of

own has our so the And candidates identify to processes increased. ability and right

bring that's find candidates. in are good selling can seeing and as information we better and And for Canada training then, our sales at in the the quality helping think sectors in up reductions staff the effective side. forces identification, be tightening getting on onboarding sectors the and coaching the we're anyone And these cohorts. not products then digital pools and I other candidate but are other only us that the

So starting pipeline, way from the side, the easier. market it's through getting the all

to a in to of onboard then to that growth all of folks are And hurdle know It's where seems so and six a it's place getting we'll meet that place where be last to there's we able be XXXX and goals. months then that to the work to the pass versus on. much a make strong now, same that for inevitably, XXX won't it's sure And we research we're throughout we side, and be move adding our in selective, there revenue layup and about replace and software -- but XXX definitely within year like hiring It's and us just retaining on side. to the some lot a now. in the development time, we're in definitely hire to not in easier we the and We're are added XXX simultaneously. still productive let's it's say, do replace people members company, that ones the we're contributing can another, able are the At the sales side. seeing

put want highest together now. to place team good right retain put with and to the together you'd the in be absolute able to to to a hire that ability that's are So because we quality the ability

Jeffrey Silber

Thanks. appreciate color. the I Okay.

Operator

Thank you.

Stephanie is with Jefferies. question line from the of Moore Next

open. now is line Your

Stephanie Moore

wanted Thanks. from it just that if helpful of evening. into wanted sales hear – Thank in maybe for end to you progressed actually changed I touch at -- this year. of Good you're what the you're be all to question. to what cycles, terms your Hi. seeing the might seeing and customers, on customer some year as I has

Andrew Florance

that has cycle sales the faster eroded. gotten Apartments.com the in think I as markets

selling sales process. the longer I when more cycle side. the to is many deliberate into CoStar so corporate users, be sales sectors to or a lenders because mix and LoopNet side tends you're that a ownership think you're that is on selling different similar to cycle big The

legs sea and I not before about estate. digital salespeople six the really nine about LoopNet takes their and about get real to cycle. commercial sales it so much It's more that marketing think understand months it's

of thing, in the in fast. ramp-up more itself is think, it's a that -- LoopNet, So I cycle pretty sales but

we're it's sales So something -- in seeing apartments we're place cycle not only seeing the as anything change fundamentally and the in shortening.

Stephanie Moore

much. Thank so you Understood.

Operator

you. Thank

the JMP. is of Goodwin Your next Joe from line question with

open. now is line Your

Joe Goodwin

in taking Great. than question. of north a in Andy, up business much investment the I took to Thank set $XXX you is to seven that when at apartments. years in revenue so you Apartments.com million for scale get larger six, for business around It was residential you XXXX, guess, the today.

XXXX least residential believe. at basis, revenue for of Your $XXX calls I target an organic million on

residential So in gives or residential factors the being of elements that effectively business? the just business than I are market larger, the market confidence what residential you some that guess farmers.com outperform other the other the will

Andrew Florance

Sure.

the in actually we was place the -- market roughly the same, revenue revenue that So had. the

roughly year. think I -- last were don't I So XX XX know

roughly in was to residential software number these experience to Also, it broader. of dramatically So digital some the sales is itself resources synergy marketplaces and is the SEO, platforms. the is revenue. level believe to market talent, has there whole Also, larger. operating have our bring SEM development, across with I in same of bear grow The both range marketing, continued we

So strong effect or of apartments or have LoopNet, across an the a any of platforms. there's in because you is accelerating presence areas, bit land there little -- in is a there or these

of better was we But competition in the forget, was a back, with people -- Apartments.com, I things go is say that there but lot I one that than would of would that were. established

real list So There's were vast Zillow estate most or them. vast one at looked is more apartment in to to players apartment X Craigs And of bigger of guide something from apartment very than then, or several different to estate, residential that there against. aren't residential to around competing portals. when residential of of buying we're rent in The back players you majority were Rent.com all for up of finder buying these people anything X us the or real aren't larger established communities, from any majority the buying we to happening different the which players. from from

competition one States Postal number mind Our United is Service. in my the

competing So feel very United surface. the comfortable postal I against States

like, fact, residential is about but I your what don't know ads. mailbox the mailbox looks my last thing in In

here every collect them mailbox them studio. in all the all table I place a I design conference product and in and throw at I have from So office our a bring them

on estate of marketing Just real little is a who of very spending real it estate to would reminder consider residential as the properties how be much you entrenched portals. with money

Joe Goodwin

you. Thank Great.

Operator

[Operator question. questions no Instructions] your for this There you are at further Thank time.

Andy turn will up. to back I it to So wrap

Andrew Florance

marketing with ROI asset Apartments.com, back -- the to bit. accelerating for call. our an incredible expect opportunity. Well, back a appreciate dollars products tens margins the real commercial business of deliver to in growth the CoStar residential brought And of margins, down analogy strong what I into revenue thoughtful, invested into incredibly millions today, the continuing of estate business. Okay. the that we become of responsible XXXX, performance market made a in little commercial strong dissimilar careful, us we XXXX, everyone that investment investments there. in earnings XXXX our into multibillion-dollar But joining fourth quarter that -- we this and shareholders and our our contained support while going Homes.com. and has to The We're core very strong attractive margin not ROI, investment for

and attractive, superior return So we believe will focus equally not time. investment yield our that sector through the in an residential if

Eastern And thank the listening. then, on except call, the participating you time speaking to stay forward our look we call very for much XX So quarter April again with safe. competitors Center until first on at X:XX you for in

Operator

This concludes today's call. conference

disconnect your You may now lines.

CoStar (CSGP) 21 Feb 232022 Q4 Earnings call transcript