CoStar Group, Inc. (NASDAQ:CSGP) Q4 2019 Earnings Conference Call - Final Transcript
Feb 25, 2020 • 05:00 pm ET
Andrew C. Florance
growth. Fourth quarter revenue of $375 million was up 19% over the fourth quarter of 2018. The fourth quarter includes results from STR for the first time, which contributed $9 million of revenue since our late October 2019 close.
Net income for the year was $315 million, an increase of 32% over full year net income of 2018. Our adjusted EBITDA crossed over the $0.5 billion mark this year and reached $507 million, an increase of 21% over the full year of 2018 with adjusted EBITDA margins improving to 36%, a 110 basis points increase over adjusted EBITDA margins in 2018. If you like nice round numbers that you can remember long after the call, our fourth quarter revenue annualized was $1.5 billion and our fourth quarter EBITDA was $500 million or $500 million on $1.5 billion growing.
We grew our earnings and profitability during the year, while continuing to invest for future growth. In 2019, we increased the size of our CoStar field sales force by 20% and added 40 new mid-market sales positions in Richmond for multi-family. We increased the level of spending in digital marketing later in the year to grow our traffic and the lead flow of Apartments.com. Our product teams completed new signature ad packages in LoopNet, as well as the new digital tools for small property owners in multifamily, both of which we start selling in the fourth quarter.
The highlight metrics for 2019 and operations for CoStar Group were impressive. Users viewed 6.3 billion pages on Apartments.com, commercial real-estate professionals conducted 40 million searches on CoStar, potential tenants visited LoopNet 131 million times, our clients, our researchers and software teams added 2 billion pieces of new content to our database in 2019. Looking ahead to 2020, we continue to invest in future growth. We're focused on the huge opportunity in the Apartments marketplaces, as well as LoopNet and the massive commercial real-estate market place. We believe the addressable market for residential rental and commercial real-estate marketing alone is over 10 billion and we have a unique opportunity for growth in the early stages in these marketplaces.
We are also focused on commercial real-estate hospitality, information, analytics and software services. In 2020, we're also embracing and accelerating our international growth opportunity. We had an excellent sales year in 2019, adding nearly 210 million of net new bookings for the year, an increase of 24% over 2018. In the fourth quarter alone, we added 52 million of net new bookings. Our efforts to build online marketplaces and commercial real-estate are certainly paying off with almost 62% of our sales in 2019 coming from Apartments.com, LoopNet and our other market places, a trend we can expect to continue into 2020.
Our Apartments.com sales team had a remarkable year in 2019. Following the integration of the ForRent acquisition in 2018, the team was at full strength and focused on growing throughout 2019. As a result, we ended the year with net new bookings, up over 45%. Congratulations