CoStar Group, Inc. (NASDAQ:CSGP) Q4 2018 Earnings Conference Call Transcript
Feb 26, 2019 • 05:00 pm ET
Ladies and gentlemen, thank you for standing. Welcome to the Fourth Quarter and 2018 Earnings Call. At this time, everyone joining by phone is in a listen-only or muted mode and then later we will conduct a question-and-answer session, and instructions will be given at that time. (Operator Instructions) As a reminder, the conference is being recorded.
And I'll now turn the meeting over to our host, Rich Simonelli. Please go ahead.
Thank you, operator, and welcome to CoStar Group's fourth quarter and year-end 2018 conference call.
Before I turn the call over to Andy Florance, CoStar's CEO and Founder; and Scott Wheeler, our CFO, I have some very interesting and important items for you. Certain portions of our discussion today may contain forward-looking statements, which involve many risks and uncertainties that can cause actual results to differ materially from such statements. Important factors that can cause actual results to differ include, but are not limited to, those stated in our press release today, on February 26th, for our fourth quarter and year-end earnings, as well as the Company's outlook and in CoStar's filings with the SEC, including our most recent Annual Report on Form 10-K and our subsequent Quarterly Reports on 10-Q, under the heading Risk Factors. All forward-looking statements are based on information available to CoStar on the time of this call. CoStar assumes no obligation to update these statements whether as a result of new information, future events or otherwise.
Reconciliation to the most directly comparable GAAP measure to the non-GAAP financial measures discussed on this call, including, but not limited to, non-GAAP net income, EBITDA, adjusted EBITDA and forward-looking GAAP guidance are shown in detail on our press release issued today, along with definitions for these terms. The press release is available in the Press Room section of our website located at costargroup.com.
As a reminder, today's conference call is being broadcast live and in color on our website, we can also find CoStar's Investor Relations page. Please refer to our press release on how to access the replay. Remember, one question, so make it a good one.
And I'll now turn the call over to Andy. Andy?
Andrew C. Florance
Rich, that was authentic and moving. Thank you.
Andrew C. Florance
Thank you all for joining us for CoStar Group's fourth quarter 2018 and year-end earnings call. The first number I want to focus on is our adjusted EBITDA margin in the fourth quarter, which was 44%. By achieving that strong margin, we have successfully accomplished an important financial goal. Five years ago, in 2014, we set two key long-range financial goals for 2018. One was to achieve $1 billion in annual revenue and the second was to reach 40% adjusted EBITDA margin for the fourth quarter of 2018. Today, five years later, with a $1.2 billion in revenue for the full year 2018 and a 44% adjusted EBITDA margin in the fourth quarter, our team is pleased to have solidly delivered on both of those goals. Delivering this sort