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The CoStar Group train just won’t stop.
The Virginia-based commercial and residential real estate behemoth released its first-quarter earnings on Tuesday, revealing the company grew its revenue 12 percent year over year to $656 million. The company remained profitable, although its net income dropped 91 percent from $87 million in Q1 2023 to $7 million.
CoStar Group founder and CEO Andy Florance said he was proud of his company’s performance, which includes a wide-ranging portfolio of 15 commercial and residential real estate brands. Florance said residential portal Homes.com fueled CoStar’s performance during the first quarter, as subscriptions to the site yielded $40 million in net new bookings.
Andy Florance
“CoStar Group delivered exceptional revenue, sales and marketplace traffic results in the first quarter of 2024, fueled by the launch of our monetization of Homes.com on February 12th of this year,” Florance said in a written statement before the company’s Monday afternoon earnings call. “With less than two months of selling in the first quarter, Homes.com membership subscriptions reached nearly $40 million in net new bookings.”
“This is by far the strongest sales launch of any product in the company’s history, and we are raising our sales and revenue forecast for Homes.com for the full year 2024,” he added.
Florance said traffic to Homes.com reached 156 million monthly unique visitors in March, according to internal Google Analytics data. He said those metrics put them ahead of Realtor.com and Redfin in terms of website traffic, which is a key performance indicator.
“We believe that Homes.com is now one of two most heavily trafficked residential marketplace portals in the U.S,” he said. “Our aggressive marketing campaign…