CoStar Group Lowers Annual Revenue Forecast Amid Weak Property Market, Matches Q3 Earnings Expectations
Amid Tough Real Estate Environment, CoStar's Shares Slid 8% as Q3 Revenue of $624.7 Million Misses Estimates and Company Lowers Q4 Revenue Forecast Below Market Estimates.
- CoStar Group has revised its annual revenue prediction owing to a weaker property market fueled by higher interest rates that have made consumers rethink property purchases.
- The company now anticipates an annual revenue between $2.445 billion and $2.450 billion, a decrease from its earlier estimate of $2.45 billion to $2.46 billion.
- CoStar's Q3 revenue was reported at $624.7 million, falling short of the estimated $625.9 million, which contributed to an 8% drop in its share price.
- In addition to the soft property market, low-quality and costly lead generation from home search portals have adversely affected the perceived value among real estate agents, adding to CoStar's challenges.
- CoStar is planning a strategic acquisition of OnTheMarket, the UK's third-largest residential real estate platform, for about 100 million pounds ($121.63 million), possibly aiming to expand its market reach.
Reuters 
Washington Post 