The company generated $ 499 million in revenue in the third quarter of this year. This is at the same time an increase of 17% compared to last year.
Commercial real estate giant and growing rival to Zillow CoStar Announced Tuesday, it generated $ 499 million in revenue between July and September, the highest quarter for the company’s revenue in at least the last two years.
The company announced revenue in the third quarter report It was released on Tuesday afternoon. CoStar revenues increased 17% year-over-year in the quarter, according to the report. The third quarter has also won every three months since both this year and 2020.
The report further points out that CoStar generated a net profit of $ 64 million between July and September of this year. This is an increase compared to both a year ago and the previous quarter, but has not reached the highs achieved in the first quarters of both this year and 2020.
In the report, the company’s founder and CEO Andrew Florance describes “another great quarter of good performance.”
“CoStar’s performance continues to improve, with revenue returning to double-digit growth in the third quarter of 2021 and CoStar’s sales team up 57% quarter-on-quarter and 566% year-over-year. It generated sales. ”Florence continued.
CoStar shares traded on Tuesday for just under $ 100 per share. This is an increase of more than $ 2 per share compared to 5 days ago and more than $ 10 per share compared to a month ago. Overall, CoStar stocks are currently near record highs. The company has a market capitalization of approximately $ 39.4 billion.
Shares fluctuated in after-hours trading after CoStar announced earnings on Tuesday, dropping from a closing price of $ 99.74 per share to a low of just over $ 92. Later, when Florence held a conference call with investors, prices began to recover, rising to $ 97 per share.
Analysts Be expected CoStar reported revenue of $ 497.96 million. This means that the company slightly exceeded expectations.
CoStar last reported its earnings in July.At that time, the company Revenue surged $ 480 million, up 21% year-on-year. April, a quarter before, CoStar’s Revenue increased 17% Compared to a year ago, it has reached $ 458 million.
Tuesday’s earnings report will also come as CoStar is increasingly on its way to the territory of other real estate giants. Most notably, the company has established itself as a challenger to Zillow.Coster Announced earlier this month Working with the New York Real Estate Board (REBNY) to launch Citysnap, a portal that serves New York City. The portal represents Zillow, and Zillow’s New York competitors offering StreetEasy.
The announcement of the portal Expansion of the Cold War Between CoStar and Zillow, the previous company Acquired portal maker Homesnap last year.. Florance has avoided explicitly saying that his company and Zillow are rivals, Realtor said Zillow’s competitor It also framing CoStar as an agent ally.
Florence approached a clear critique of Zillow on Tuesday. In a phone call with investors, he said that many StreetEasy practices, such as costs and how the platform lists agent names, are unpopular among real estate agents.
“Extortion is too strong a word for it,” Florence said, saying a better word might be “Jiromail.”
He went on to say that Citysnap provides a counterpoint to those complaints. The platform works with the “Your List, Your Leads” philosophy, for example, which is free to use by agents and is designed to direct leads to agents who actually hold the list. Florence eventually called Citysnap “revolutionary.”
To make money, Citysnap offers a promote list option that allows agents to “buy preferred placements to increase exposure.” Agents can also subscribe to monthly services such as marketing and concierge services.
“To be financially successful, you don’t really have to do the unpopular things that StreetEasy does,” Florence said on the phone.
In addition, Florance states that Homesnap’s own revenue and user numbers are increasing. He eventually described the company as a “great product” and a “favorite product for homeowners.”
Florence also discussed the market. In a report on Tuesday, he said the leasing sector had “a record level of demand for apartments” and “vacancy has fallen to its lowest level in decades, causing headwinds in demand for apartment advertising.” Said.
“But in the third quarter of 2021, traffic to the site’s network increased by 17% year-over-year,” Florence continues in a report. A year in a low vacancy environment while our clients raise their rent to record levels. “
In a phone call with investors on Tuesday, Florence also explained “high rent in the sky” and “ultra-high demand.” It also contributes to the housing crisis, which is good for owners and investors. Florence further said that the situation is expected to be resolved within a few quarters, but so far the situation is “unprecedented”, “whip sewing or very unstable”.
“When you look at the chart, the slope of the curve is unprecedented,” Florence added.
Update: This post was updated after it was published with CoStar’s earnings report and additional information from call executives with investors.
CoStar Revenue Takes to New Heights with New Revenue Report
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