CoStar stock falls 10% as FY22 revenue, EPS outlook seen below estimates
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CoStar Group (CSGP
-10.0%) stock declined following its Q4 results, which beat analysts' estimates.
FY21 revenue rose 17% Y/Y to $1.66B. Net income grew 29% Y/Y to $293M.
"Net sales bookings for CoStar in the fourth quarter were virtually in-line with the record level of net sales bookings CoStar delivered in the third quarter of 2021. Even more encouraging, net sales bookings for Apartments.com increased sharply in the fourth quarter of 2021, indicating that the slowdown in revenue growth and sales bookings that we experienced earlier in the year is potentially behind us," said Founder and CEO Andrew Florance.
Full year 2021, EBITDA rose 39% Y/Y to $565M. As of December 31, 2021, the company had ~$3.8B in cash, cash equivalents and restricted cash and outstanding debt of ~$1B.
Outlook 2022: The company expects revenue in the range of $2.145B to $2.165B for the full year 2022, representing growth of ~11% Y/Y, at the midpoint of the range. Consensus Revenue Estimate for 2022 is $2.17B.
Non-GAAP net income per share in a range of $0.95 to $1.02. Consensus EPS Estimate for 2022 is $1.16.
The company expects adjusted EBITDA in a range of $565M to $605M for 2022.
âNotwithstanding our Residential growth investments, our commercial property information and marketplace businesses are expected to deliver profit margins of approximately 40% in 2022, which would achieve our long-term goal of 40% adjusted EBITDA margins by 2023 one full year ahead of schedule," said CoStar CFO Scott Wheeler.
Outlook Q1 2022: Q1 revenue expected in the range of $510M to $515M, representing growth of ~12% Y/Y at the midpoint of the range. Consensus Revenue Estimate for Q1 is $517.11M.
Q1 non-GAAP net income per share in a range of $0.27 to $0.28. Consensus EPS Estimate for Q1 is $0.28.
For Q1 the company expects adjusted EBITDA between $155M and $160M.