What happened
Shares of CoStar Group (CSGP 0.10%) climbed 11.1% last month, according to data provided by S&P Global Market Intelligence. The provider of real estate information services and online marketplaces delivered better-than-expected earnings and boosted its full-year guidance.
So what
CoStar's revenue leapt 16% year over year to $344 million, fueled by the strong growth of its multifamily business, led by Apartments.com.
"Apartments.com achieved record sales bookings in the fourth quarter of 2018, then beat that record again in the first quarter of 2019, and now has beaten the record yet again with second quarter 2019 bookings soaring 44% over the first quarter," Founder and CEO Andrew Florance said in a press release.
More people are using CoStar Group's websites and mobile apps to find an apartment. Image source: Getty Images.
All told, CoStar's non-GAAP (adjusted) net income surged 35%, to $82 million, or $2.23 per share. That was well above analysts' estimates for adjusted earnings per share of $2.00.
Now what
CoStar Group sees more good times ahead. The company raised its full-year revenue guidance by $11 million at the midpoint to a range of $1.382 billion to $1.39 billion. Management also boosted its guidance for adjusted EBITDA and adjusted earnings per share to $498 million to $505 million and $10.00 to $10.14, respectively, up from $495 million to $505 million and $9.90 to $10.10.
CoStar Group has a valuable collection of online real estate businesses, several of which -- such as Apartments.com -- are growing rapidly. As such, CoStar Group is well-positioned to profit as apartment hunters and real estate investors increasingly turn to online tools for their property search needs.
