CoStar Group, Inc. (NASDAQ:CSGP) Q3 2020 Earnings Conference Call - Final Transcript

Oct 27, 2020 • 05:00 pm ET


CoStar Group, Inc. (NASDAQ:CSGP) Q3 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2020 CoStar Group Earnings Conference Call. At this time all the participants are in a listen only mode [Operator Instructions] After the speakers presentation there will be a question-and-answer session. To ask your questions during the session, you need to press star one on your.

I would now like to hand the conference over to your speaker today, Ms. Sarah Spray. Please go ahead.

Sarah Spray

Thank you. Good evening, and thank you all for joining us to discuss the third quarter 2020 results of the CoStar Group. Before I turn the call over to Andy Florance, CoStar's CEO and Founder; and Scott Wheeler, our CFO, I would like to review our safe harbor statement. Certain portions of the discussion today may contain forward-looking statements, including expectations for the fourth quarter and full year 2020. Forward-looking statements involve many risks, uncertainties, assumptions, estimates and other factors 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 CoStar Group's press release issued earlier today and in our filings with the SEC, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q under the heading Risk Factors.

All forward-looking statements are based on information available to CoStar on the date 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 EBITDA, adjusted EBITDA, non-GAAP net income and forward-looking non-GAAP guidance, are shown in detail in our press release issued today along with definitions for those terms. The press release is available on our website located at under Press Room. As a reminder, today's conference call is being webcast, and the link is also available on our website under Investors. Please refer to today's press release on how to access the replay of this call.

And with that, I would like to turn over to our Founder and CEO, Andy Florance.

Andrew C. Florance

Good evening, and thank you for joining us today for CoStar Group's Third Quarter 2020 Earnings Call. Total third quarter revenue was $426 million, up 21% year-over-year. For 20 years, CoStar has grown revenue 20% plus on a compound annual basis. Our performance this quarter is no different and shows clear evidence that in the midst of this pandemic, our business is strong, resilient and countercyclical. In the third quarter of 2020, all of our businesses performed well and continued to be solid, resilient and showed the performance that we saw as we exited the second quarter. In the third quarter, we achieved $53 million in quarterly sales bookings, a 53% increase over Q2 sales bookings.

This was one of our strongest sales quarters ever despite the continued high levels of economic, social and public health uncertainty.