CoStar Group, Inc. reported a revenue increase of 11% for the fiscal year ending December 31, 2024, reaching approximately $2.736 billion, compared to $2.455 billion in 2023. The company's net income, however, saw a significant decline of 63%, dropping to $138.7 million from $374.7 million in the previous year. This decrease in profitability was attributed to rising operating expenses, particularly in selling and marketing, which surged by 38% to $1.364 billion, reflecting increased investments in advertising and personnel to support growth initiatives.
The company experienced notable growth in its Multifamily and Residential segments, with Multifamily revenues rising 17% to $1.067 billion, driven by an increase in property listings and pricing. Residential revenues skyrocketed by 118% to $100.6 million, largely due to the launch of Homes.com membership subscriptions and the acquisition of OnTheMarket. Conversely, Information Services revenues fell by 20% to $135.9 million, primarily due to the transition of legacy STR customers to CoStar's new benchmarking product.
CoStar Group has been active in expanding its market presence through strategic acquisitions, including the purchase of Visual Lease in November 2024 for $276 million and OnTheMarket in December 2023 for approximately $120.4 million. These acquisitions are expected to enhance CoStar's service offerings and market reach, particularly in the residential sector. The company also announced plans to continue investing in its Homes.com platform and expand its CoStar and LoopNet products internationally, particularly in European markets.
As of December 31, 2024, CoStar Group employed 6,593 individuals, with a significant portion based in the U.S. The company reported a total of $4.681 billion in cash and cash equivalents, down from $5.216 billion in 2023, reflecting substantial investments in property and equipment, including a new headquarters in Arlington, Virginia. Looking ahead, CoStar anticipates a deceleration in revenue growth for 2025, particularly in its CoStar segment, while expecting an acceleration in Information Services revenue due to the Visual Lease acquisition. The company remains focused on integrating its acquisitions and enhancing its product offerings to drive future growth.
About COSTAR GROUP, INC.
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