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Published: 2022-07-26 16:10:58 ET
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EX-99.1 2 q22022earningspressrelease.htm EX-99.1 Document


Exhibit 99.1

newcostargroupa39.jpg

CoStar Group Second Quarter 2022 Net New Bookings Grew 66% and Net Income Increased 37% Year-over-Year



WASHINGTON – July 26, 2022 - CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the property markets, announced today that revenue for the quarter ended June 30, 2022, was $536 million, an increase of 12% over revenue of $480 million for the second quarter of 2021.

Net income for the second quarter of 2022 was $83 million, an increase of 37% compared to net income of $61 million for the second quarter of 2021. EBITDA for the second quarter of 2022 was $140 million, an increase of 5% compared to EBITDA of $133 million for the second quarter of 2021.

“We delivered outstanding results in the second quarter of 2022,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “With net new bookings of $84 million we easily surpassed the record sales results we set in the first quarter of this year. Our top three products, CoStar, Apartments.com and LoopNet, all achieved high double-digit sales increases over the second quarter of 2021. In addition, both revenue and profit in the second quarter of 2022 were ahead of forecast and we are raising our guidance for the year.”

“I am particularly encouraged by the strong sales growth in Apartments.com and LoopNet", continued Florance. "Net new bookings increased over 130% in Apartments.com and over 40% for LoopNet on a year-over-year basis. It is increasingly clear that Multifamily market conditions continue to be more favorable, and our work to build a dedicated LoopNet sales team is paying off. We are also making strong progress on our residential growth initiatives with the on-time launch of Citysnap in New York City at the end of June."

Year 2021-2022 Quarterly Results - Unaudited
(in millions, except per share data)
20212022
Q1Q2Q3Q4Q1Q2
Revenues$458$480$499$507$516$536
Net income746164938983
Net income per share - diluted(1) 
0.190.160.160.240.230.21
Weighted average outstanding shares - diluted(1) 
394394394395394394
EBITDA136133123173158140
Adjusted EBITDA160150144193178159
Non-GAAP net income10810399138123112
Non-GAAP net income per share - diluted(1) 
0.270.260.250.350.310.28
__________________________
(1) Certain prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.



As of June 30, 2022, the Company had approximately $4.0 billion in cash, cash equivalents and restricted cash and outstanding debt of approximately $1.0 billion.

2022 Outlook
The Company is raising its revenue guidance to a range of $2.165 billion to $2.180 billion for the full year of 2022, an increase of $13 million at the midpoint of the range compared to the prior outlook. The Company expects revenue for the third quarter of 2022 in the range of $552 million to $557 million, representing revenue growth of approximately 11% over the third quarter of 2021 at the midpoint of the range.

The Company is raising its adjusted EBITDA guidance to a range of $610 million to $630 million for the full year of 2022, an increase of $20 million at the midpoint of the range compared to the prior outlook. For the third quarter of 2022, the Company expects adjusted EBITDA in a range of $130 million to $140 million.

The Company expects full year 2022 non-GAAP net income per diluted share in a range of $1.09 to $1.13 based on 395 million shares, an increase of $0.11 per diluted share compared to the prior outlook. For the third quarter of 2022, the Company expects non-GAAP net income per diluted share in a range of $0.23 to $0.25 based on 395 million shares. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the third quarter of 2022.

The preceding forward-looking statements reflect CoStar Group’s expectations as of July 26, 2022, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations, and trends. Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, including uncertainties as a result of the COVID-19 pandemic and responses to it by, and the impact on, global economies and the real estate industry, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.

Reconciliation of EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share to their GAAP basis results are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income, can be found within the tables included in this release.

Non-GAAP Financial Measures
For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refer to the Company’s latest periodic report.

EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before interest (expense) income and other (expense) income, loss on debt extinguishment, income taxes, depreciation and amortization.

Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, and settlements and impairments incurred outside the Company’s normal course of business. Adjusted EBITDA margin represents adjusted EBITDA divided by revenues for the period.

Non-GAAP net income is a non-GAAP financial measure determined by adjusting GAAP net income attributable to CoStar Group for stock-based compensation expense, acquisition- and integration-related costs, restructuring costs, settlement and impairment costs incurred outside the Company's normal course of business and loss on debt extinguishment, as well as amortization of acquired intangible assets


and other related costs, and then subtracting an assumed provision for income taxes. In 2022, the Company is assuming a 26% tax rate in order to approximate its statutory corporate tax rate excluding the impact of discrete items.

Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share. For periods with GAAP net losses and non-GAAP net income, the weighted average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.

Operating Metrics
Net new bookings is calculated based on the annualized amount of change in the Company's sales bookings resulting from new subscription-based contracts and changes to existing subscription-based contracts for the period reported. Information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of the Company's revenues over time.

Earnings Conference Call
Management will conduct a conference call to discuss the second quarter 2022 results and the Company’s outlook at 5:00 PM EST on Tuesday, July 26, 2022. A live audio webcast of the conference will be available in listen-only mode through the Investors section of the CoStar Group website: https://investors.costargroup.com. A replay of the webcast audio will also be available in the Investors section of our website for a period of time following the call.








CoStar Group, Inc.
Condensed Consolidated Statements of Operations - Unaudited
(in thousands, except per share data)
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Revenues$536,308 $480,333 $1,052,133 $938,030 
Cost of revenues100,971 89,566 196,450 178,314 
Gross profit435,337 390,767 855,683 759,716 
Operating expenses:
Selling and marketing (excluding customer base amortization)181,344 164,612 325,341 303,299 
Software development51,587 48,573 105,608 95,357 
General and administrative77,345 58,226 155,306 122,076 
Customer base amortization14,878 18,345 30,970 36,764 
325,154 289,756 617,225 557,496 
Income from operations110,183 101,011 238,458 202,220 
Interest expense, net (3,399)(7,877)(11,117)(15,755)
Other income, net1,343 847 2,207 797 
Income before income taxes108,127 93,981 229,548 187,262 
Income tax expense24,654 32,833 56,757 51,902 
Net income     $83,473 $61,148 $172,791 $135,360 
Net income per share - basic
$0.21 $0.16 $0.44 $0.35 
Net income per share - diluted$0.21 $0.16 $0.44 $0.34 
Weighted-average outstanding shares - basic
393,342 392,306 393,119 391,942 
Weighted-average outstanding shares - diluted
394,478 394,098 394,356 393,906 
__________________________





CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures - Unaudited
(in thousands, except per share data)
Reconciliation of Net Income to Non-GAAP Net Income
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Net income $83,473 $61,148 $172,791 $135,360 
Income tax expense24,654 32,833 56,757 51,902 
Income before income taxes108,127 93,981 229,548 187,262 
Amortization of acquired intangible assets22,815 25,293 46,005 51,120 
Stock-based compensation expense18,112 15,144 35,959 30,689 
Acquisition and integration related costs504 2,001 2,143 10,463 
Other expense2,063 786 4,099 1,857 
Non-GAAP income before income taxes151,621 137,205 317,754 281,391 
Assumed rate for income tax expense(1)
26 %25 %26 %25 %
Assumed provision for income tax expense (39,421)(34,301)(82,616)(70,348)
Non-GAAP net income$112,200 $102,904 $235,138 $211,043 
Net income per share - diluted$0.21 $0.16 $0.44 $0.34 
Non-GAAP net income per share - diluted$0.28 $0.26 $0.60 $0.54 
Weighted average outstanding shares - basic393,342 392,306 393,119 391,942 
Weighted average outstanding shares - diluted394,478 394,098 394,356 393,906 
__________________________
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Net income $83,473 $61,148 $172,791 $135,360 
Amortization of acquired intangible assets in cost of revenues7,937 6,948 15,035 14,356 
Amortization of acquired intangible assets in operating expenses14,878 18,345 30,970 36,764 
Depreciation and other amortization7,010 7,028 13,975 15,528 
Interest expense, net3,399 7,877 11,117 15,755 
Other income, net(1,343)(847)(2,207)(797)
Income tax expense24,654 32,833 56,757 51,902 
EBITDA$140,008 $133,332 $298,438 $268,868 
Stock-based compensation expense18,112 15,144 35,959 30,689 
Acquisition and integration related costs504 2,001 2,143 10,463 
Adjusted EBITDA$158,624 $150,477 $336,540 $310,020 


CoStar Group, Inc.
Condensed Consolidated Balance Sheets - Unaudited
(in thousands)
June 30,
2022		December 31,
2021
ASSETS
Current assets:
Cash, cash equivalents and restricted cash$3,964,116 $3,827,126 
Accounts receivable161,811 138,191 
Less: Allowance for credit losses(9,638)(13,374)
Accounts receivable, net152,173 124,817 
  Income tax receivable9,278 — 
Prepaid expenses and other current assets55,194 36,182 
Total current assets4,180,761 3,988,125 
Deferred income taxes, net5,034 5,034 
Property and equipment, net298,361 271,431 
Lease right-of-use assets98,495 100,680 
Goodwill2,314,176 2,321,015 
Intangible assets, net385,245 435,662 
Deferred commission costs, net119,778 101,879 
Deposits and other assets16,893 21,762 
Income tax receivable2,005 11,283 
Total assets$7,420,748 $7,256,871 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$32,132 $22,244 
Accrued wages and commissions84,545 81,794 
Accrued expenses91,168 81,676 
Income taxes payable1,841 31,236 
Lease liabilities35,426 26,268 
Deferred revenue104,838 95,471 
Total current liabilities349,950 338,689 
Long-term debt, net988,572 987,944 
Deferred income taxes, net 87,657 98,656 
Income taxes payable 14,112 12,496 
Lease and other long-term liabilities96,104 107,414 
Total liabilities$1,536,395 $1,545,199 
Total stockholders’ equity5,884,353 5,711,672 
Total liabilities and stockholders' equity$7,420,748 $7,256,871 





CoStar Group, Inc.
Condensed Consolidated Statements of Cash Flows - Unaudited
(in thousands)
 Six Months Ended
June 30,
 20222021
Operating activities:  
Net income$172,791 $135,360 
Adjustments to reconcile net income to net cash provided by operating activities:
  
Depreciation and amortization64,127 68,516 
Amortization of deferred commissions costs35,996 30,847 
Amortization of Senior Notes discount and issuance costs1,178 1,159 
Non-cash lease expense15,080 13,136 
Stock-based compensation expense35,959 30,689 
Deferred income taxes, net(14,946)9,929 
Credit loss expense6,890 6,086 
Other operating activities, net(1,149)(24)
Changes in operating assets and liabilities, net of acquisitions:  
Accounts receivable(33,318)(8,526)
Prepaid expenses and other current assets3,152 (14,567)
Deferred commissions(54,155)(31,922)
Accounts payable and other liabilities14,098 (32,474)
Lease liabilities(15,932)(15,674)
Income taxes payable(27,770)9,415 
Deferred revenue8,520 16,148 
Other assets1,578 2,191 
Net cash provided by operating activities212,099 220,289 
Investing activities:  
Proceeds from sale of property and equipment and other assets5,034 201 
Purchase of Richmond assets and other intangibles(25,664)(123,623)
Purchases of property and equipment and other assets(30,746)(13,093)
Cash paid for acquisitions, net of cash acquired(6,331)(148,275)
Net cash used in investing activities(57,707)(284,790)
Financing activities:  
Repayments of long-term debt assumed in acquisition(2,155)— 
Repurchase of restricted stock to satisfy tax withholding obligations(19,755)(28,405)
Proceeds from exercise of stock options and employee stock purchase plan7,340 12,324 
Other financing activities— (57)
Net cash used in financing activities(14,570)(16,138)
Effect of foreign currency exchange rates on cash and cash equivalents(2,832)(364)
Net increase (decrease) in cash, cash equivalents and restricted cash136,990 (81,003)
Cash, cash equivalents and restricted cash at the beginning of period3,827,126 3,755,912 
Cash, cash equivalents and restricted cash at the end of period$3,964,116 $3,674,909 




CoStar Group, Inc.
Disaggregated Revenues - Unaudited
(in thousands)
Three Months Ended June 30,
20222021
North AmericaInternationalTotalNorth AmericaInternationalTotal
CoStar $197,380 $9,186 $206,566 $167,845 $9,134 $176,979 
Information Services30,511 7,991 38,502 28,096 7,061 35,157 
Multifamily182,359 — 182,359 171,357 — 171,357 
LoopNet(1)
54,603 1,694 56,297 50,731 364 51,095 
Residential(1)
20,154 — 20,154 18,087 — 18,087 
Other Marketplaces(1)
32,430 — 32,430 27,658 — 27,658 
Total revenues$517,437 $18,871 $536,308 $463,774 $16,559 $480,333 
__________________________
(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation.
Six Months Ended June 30,
20222021
North AmericaInternationalTotalNorth AmericaInternationalTotal
CoStar $386,484 $18,731 $405,215 $331,399 $17,764 $349,163 
Information Services60,782 14,935 75,717 55,782 14,071 69,853 
Multifamily357,836 — 357,836 337,504 — 337,504 
LoopNet(1)
107,291 3,453 110,744 99,667 658 100,325 
Residential(1)
38,214 — 38,214 29,192 — 29,192 
Other Marketplaces(1)
64,407 — 64,407 51,993 — 51,993 
Total revenues$1,015,014 $37,119 $1,052,133 $905,537 $32,493 $938,030 
__________________________
(1) As of September 30, 2021, Commercial Property and Land revenue has been further disaggregated into LoopNet, Residential and Other Marketplaces. Prior period amounts have been adjusted to reflect this presentation.



CoStar Group, Inc.
Results of Segments - Unaudited
(in thousands)
   
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2022202120222021
EBITDA    
North America$138,527 $130,176 $294,489 $266,034 
International1,481 3,156 3,949 2,834 
Total EBITDA$140,008 $133,332 $298,438 $268,868 



CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures with Quarterly Results - Unaudited
(in millions, except per share data)
Reconciliation of Net Income to Non-GAAP Net Income
20212022
Q1Q2Q3Q4Q1Q2
Net income                                                    $74.2$61.1$64.3$92.9$89.3$83.5
Income tax expense19.132.819.040.532.124.7
Income before income taxes93.393.983.3133.4121.4108.1
Amortization of acquired intangible assets25.825.326.326.223.222.8
Stock-based compensation expense15.515.116.316.717.818.1
Acquisition and integration related costs8.52.05.03.21.60.5
Other expense 1.10.80.94.12.02.1
Non-GAAP income before income taxes(1)
144.2137.1131.8183.6166.1151.6
Assumed rate for income tax expense (2)
25%25%25%25%26%26%
Assumed provision for income tax expense (36.0)(34.3)(33.0)(45.9)(43.2)(39.4)
Non-GAAP net income(1)
$108.2$102.8$98.8$137.7$122.9$112.2
Non-GAAP net income per share - diluted(3)
$0.27$0.26$0.25$0.35$0.31$0.28
Weighted average outstanding shares - basic(3)
391.6392.3392.4392.5392.9393.3
Weighted average outstanding shares - diluted(3)
393.7394.1394.3394.5394.2394.5
__________________________
(1) Totals may not foot due to rounding.
(2) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
(3) Certain prior period amounts have been retroactively adjusted to reflect the ten-for-one stock split effected in the form of a stock dividend in June 2021.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
20212022
Q1Q2Q3Q4Q1Q2
Net income     $74.2$61.1$64.3$92.9$89.3$83.5
Amortization of acquired intangible assets25.825.326.326.223.222.8
Depreciation and other amortization8.57.06.66.97.07.0
Interest expense, net7.97.97.97.97.73.4
Other (income) expense, net 0.1(0.8)(1.5)(0.9)(0.9)(1.3)
Income tax expense19.132.819.040.532.124.7
EBITDA(1)
$135.6$133.3$122.6$173.4$158.4$140.0
Stock-based compensation expense15.515.116.316.717.818.1
Acquisition and integration related costs8.52.05.03.21.60.5
Adjusted EBITDA(1)
$159.6$150.4$143.9$193.4$177.9$158.6
__________________________
(1) Totals may not foot due to rounding.



CoStar Group, Inc.
Reconciliation of Forward-Looking Guidance - Unaudited
(in thousands, except per share data)
Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income
Guidance RangeGuidance Range
 For the Three Months For the Year Ending
 Ending September 30, 2022 December 31, 2022
 LowHigh LowHigh
      
Net income$63,000 $71,000 $310,000 $325,000 
Income tax expense22,000 24,000 104,000 109,000 
Income before income taxes85,000 95,000 414,000 434,000 
Amortization of acquired intangible assets21,000 21,000 88,000 88,000 
Stock-based compensation expense19,000 19,000 74,000 74,000 
Acquisition and integration related costs— — 2,000 2,000 
Other expense— — 4,000 4,000 
Non-GAAP income before income taxes125,000 135,000  582,000 602,000 
Assumed rate for income tax expense(1)
26 %26 %26 %26 %
Assumed provision for income tax expense (32,500)(35,100) (151,300)(156,500)
Non-GAAP net income$92,500 $99,900  $430,700 $445,500 
      
Net income per share - diluted$0.16 $0.18  $0.79 $0.82 
Non-GAAP net income per share - diluted$0.23 $0.25  $1.09 $1.13 
      
Weighted average outstanding shares - diluted394,800 394,800 394,700 394,700 
__________________________     
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA
Guidance RangeGuidance Range
For the Three MonthsFor the Year Ending
Ending September 30, 2022 December 31, 2022
LowHighLowHigh
Net income$63,000 $71,000 $310,000 $325,000 
Amortization of acquired intangible assets21,000 21,000 88,000 88,000 
Depreciation and other amortization10,000 10,000 34,000 34,000 
Interest expense, net(5,000)(5,000)1,000 1,000 
Other income, net— — (3,000)(3,000)
Income tax expense22,000 24,000 104,000 109,000 
Stock-based compensation expense19,000 19,000 74,000 74,000 
Acquisition and integration related costs— — 2,000 2,000 
Adjusted EBITDA$130,000 $140,000 $610,000 $630,000 
    




Investor Relations:
Cyndi Eakin
Senior Vice President
CoStar Group Investor Relations
(202) 346-6784
ceakin@costar.com

News Media:
Matthew Blocher
Vice President
CoStar Group Corporate Marketing & Communications
(202) 346-6775
mblocher@costar.com

About CoStar Group, Inc.
CoStar Group, Inc. (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information and analytics. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com offers real estate professionals advertising and marketing services for residential properties. Realla is the UK’s most comprehensive commercial property digital marketplace. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada and Asia. From time to time we plan to utilize our corporate website, www.costargroup.com, as a channel of distribution for material company information.

This news release and the Company’s earnings conference call contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar Group's plans, objectives, expectations, beliefs and intentions and other statements including words such as “hope,” “anticipate,” “may,” “believe,” “expect,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar Group and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. The following factors, among others, could cause or contribute to such differences: the risk that the trends stated or implied by this release or in the earnings conference call cannot or will not be sustained at the current pace or may increase or decrease, including trends and expectations related to revenue, revenue growth, net income, non-GAAP net income, EBITDA, adjusted EBITDA, adjusted EBITDA margin, sales, net new bookings, site traffic and visitors, leads, and renewal rates; the risk that the Company is unable to sustain current Company-wide, CoStar, Apartments or LoopNet net new bookings and that Multifamily market conditions remain favorable; the risk that revenues for the third quarter and full year 2022 will not be as stated in this press release; the risk that net income for the third quarter and full year 2022 will not be as stated in this press release; the risk that EBITDA for the third quarter and full year 2022 will not be as stated in this press release; the risk that adjusted EBITDA for the third quarter and full year 2022 will not be as stated in this press release; the risk that non-GAAP net income and non-GAAP net income per diluted share for the third quarter and full year 2022 will not be as stated in this press release; the risk that the tax rate estimates stated in this press release may change; and potential declines in our revenues, revenue growth rates and profitability due to the impact of the COVID-19 pandemic on the commercial real estate industry and economic conditions on the real estate industry and our core customer base. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar Group’s filings from time to time with the Securities and Exchange Commission, including in CoStar Group’s Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar Group’s other filings with the SEC (including Current Reports on Form 8-K) available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar Group on the date hereof, and CoStar Group assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.