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About Comps, Inc

A leading provider of commercial real estate information, CoStar has a proprietary database of more than 5 million properties in the US, Canada, the UK, France, Spain, and Germany. Its hundreds of data points include location, ownership, and tenant names. It also has about 14 million digital images of buildings, floor plans, and maps. CoStar additionally offers marketing and analytic services. Clients include government agencies, real estate brokerages, real estate investment trusts (REITs), and property owners and managers who stand to benefit from insight on property values, market conditions, and current availabilities. Most of CoStar's sales come from subscription fees. The company was founded in 1987. Majority of the company's sales were generated from the North America.

Operations

CoStar has five flagship brands: CoStar, LoopNet, Apartments.com, BizBuySell, and LandsofAmerica.

CoStar Suite is the company's primary service offering. The subscription-based online marketplace enables commercial property owners, landlords, and real estate agents to list properties for sale or for lease and to submit detailed information about property listings.

Commercial real estate agents, buyers, and tenants use LoopNet to search for available property listings that meet their criteria. Apartments.com offers renters a searchable database of apartment listings as well as a comprehensive selection of rentals, information on rents, and in-depth data on neighborhoods, including restaurants, nightlife, history, schools, and other facts important to renters.

BizBuySell, which includes BizQuest, provides an online marketplace for businesses for sale, while LandsofAmerica, which includes LandAndFarm and LandWatch, provides an online marketplace for rural lands for sale.

Costar Suite accounts about 45% of total sales, Multifamily about 35%, Commercial property and land about 15%, and Information services for about 5% of sales.

Geographic Reach

Washington, DC-based CoStar Group has more than 80 offices in the US, Canada, and Europe. The company manages its business geographically in two operating segments, with primary areas of measurement and decision-making being North America, which includes the US and Canada, and International, which includes the UK, Spain, Germany, and France. While the company continues its international expansion, North America still accounts for nearly all revenue.

The company operates its research functions out of leased office spaces in Richmond, Virginia; San Diego, California; and Atlanta, Georgia. Additionally, its lease office space in a variety of other metropolitan areas. These locations include, among others, the following: Hendersonville, Tennessee; Irvine, California; Boston, Massachusetts; San Francisco, California; Ontario, California; and Los Angeles, California.

Sales and Marketing

CoStar's clients come from across the commercial real estate sector and related businesses and include real estate brokers, owners, developers, landlords, property managers, financial institutions, retailers, appraisers, investment banks, government agencies, and other parties involved in commercial real estate.

The company's sales teams are primarily located in field sales offices throughout the US and with others in Canada, the U.K., Spain, France, and Germany. Inside sales teams are primarily located in Washington, DC. These teams prospect for new clients and perform product and service demonstrations by telephone and online to support the direct sales force.

To generate brand awareness and site traffic, CoStar uses a multi-channel marketing campaign, including television and radio advertising, online/digital advertising, social media and out-of-home ads, and search engine marketing.

Advertising costs were approximately $164 million, $124 million, and $104 million for the FY 2019, 2018 and 2017, respectively.

Financial Performance

CoStar's revenue has been climbing for the last five years with an overall growth of 97% between 2015 and 2019. It net income has been on a similar trend.

Revenues increased to $1.4 billion in 2019, from $1.2 billion in 2018. The $208 million increase was primarily attributable to an $85 million, or 21%, increase in multifamily revenue.

Net income grew 32% from $238.3 million in 2018 to $315 million in 2019. This was primarily due to a higher gross profit.

Cash at the end of 2019 was $1.1 billion, a 3% decrease compared to the previous year. Operating activities generated $457.8 million. Investing activities used $483.8 million. Financing activities used another $4.2 million mainly for repurchase of restricted stock to satisfy tax withholding obligations.

Strategy

CoStar's strategy is to provide industry professionals and consumers of commercial real estate and apartments with critical knowledge to explore and complete transactions by offering the most comprehensive, timely and standardized information on commercial real estate and apartments and the right tools to be able to effectively utilize that information. Over time, the company has expanded, and continues to expand, its services for commercial real estate information, analytics and online marketplaces in an effort to continue to meet the needs of the industry as it grows and evolves.

The company delivers its comprehensive commercial real estate information content to its U.S. and certain customers in Europe primarily via an integrated suite of online service offerings that includes information about space available for-lease, comparable sales information, information about properties for-sale, tenant information, Internet marketing services, analytical capabilities, information for clients' websites, information about industry professionals and its business relationships, data integration and industry news. The company also operates complementary online marketplaces for commercial real estate listings and apartment rentals. CoStar strive to cross-sell its services to customers in order to best suit their needs.

Mergers and Acquisitions

In 2020, CoStar Group completed the acquisition of California-based, Ten-X Commercial, the leading digital auction platform for commercial real estate for $190 million in cash. Ten-X is the clear, leading platform for conducting commercial real estate online auctions and negotiated bids, having successfully facilitated $24 billion in transactions since 2009. Ten-X partners with commercial real estate brokers providing them with technology that makes them more efficient, reduces the time to sale, and speeds commission payments. CoStar Group plans to integrate the Ten-X auction platform into both LoopNet and CoStar, thereby exposing the auctions to CoStar Group's massive online commercial real estate audience with 11 million monthly visits. The integrated offering will expand the audience for Ten-X auctions up to 40 times its current scope.

CoStar in 2019 branched into lodging when it completed its acquisition of Hendersonville, Tennessee-based STR (formerly Smith Travel Research), a provider of data and analytics for the hospitality sector, in a deal valued at $450 million in cash. STR processes, analyzes, and reports on data from 66,000 hotels representing 8.9 million rooms in 180 countries and works major hotel chains and independent owners and operators around the globe. The acquisition includes STR Global, the company's international business headquartered in London; Hotel News Now, the company's digital media arm based in Cleveland; and the Hotel Data Conference, an event hosted each year in Nashville. Overall, STR has operations in 15 countries. CoStar expects that STR will contribute between $3 million to $4 million in revenue in the fourth quarter of 2019.

Company Background

Andrew C. Florance founded CoStar Group in 1987 as a company that collected and sold data on office buildings. Over the years, it has expanded into industrial, retail, and rental apartments, partly through acquisitions. The company filed an IPO in 1998. CoStar grew significantly when it acquired rival service LoopNet in 2012.

Comps, Inc

4535 Towne Centre CT
San Diego, CA 92121-8801
Phone: 1 (858) 658-0576

Firm Stats

Employer Type: Privately Owned
Employees (This Location): 175
Employees (All Locations): 175

Major Office Locations

San Diego, CA