CoStar Earnings: Homes.com Investments Should Grow Substantially as It Targets Zillow’s Leadership

Wide-moat-rated CoStar Group reported a good set of numbers in the fourth quarter as the firm reported non-GAAP earnings per share of $0.33, slightly higher than the FactSet consensus estimate of $0.32. Management guided for revenue to be in the $2.75 billion-$2.77 billion range for 2024, representing year-over-year growth of 12%-13%. Management now believes that 2024 will mark the peak in the investment cycle for the residential business of the company as it starts to monetize its marketplaces. The adjusted EBITDA for 2024 is expected to range from $170 million-$190 million as CoStar attempts to establish a leadership position in the residential segment.