CoStar Group Inc., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (as reported)	369,453)	292,564)	227,128)	314,963)	238,334)
Add: Unrealized gain (loss) on investments	—)	—)	189)	—)	—)
Less: Reclassification adjustment for realized (gain) loss on investments included in net income	—)	—)	541)	—)	—)
Net income (adjusted)	369,453)	292,564)	227,858)	314,963)	238,334)

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CoStar Group Inc., adjusted profitability ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	16.93%	15.05%	13.69%	22.50%	20.00%
Adjusted net profit margin	16.93%	15.05%	13.73%	22.50%	20.00%
Return on Equity (ROE)
Reported ROE	5.38%	5.12%	4.23%	9.25%	7.89%
Adjusted ROE	5.38%	5.12%	4.24%	9.25%	7.89%
Return on Assets (ROA)
Reported ROA	4.40%	4.03%	3.28%	8.17%	7.19%
Adjusted ROA	4.40%	4.03%	3.29%	8.17%	7.19%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	CoStar Group Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	CoStar Group Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	CoStar Group Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	369,453)	292,564)	227,128)	314,963)	238,334)
Revenues	2,182,399)	1,944,135)	1,659,019)	1,399,719)	1,191,832)
Profitability Ratio
Net profit margin¹	16.93%	15.05%	13.69%	22.50%	20.00%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	369,453)	292,564)	227,858)	314,963)	238,334)
Revenues	2,182,399)	1,944,135)	1,659,019)	1,399,719)	1,191,832)
Profitability Ratio
Adjusted net profit margin²	16.93%	15.05%	13.73%	22.50%	20.00%

2022 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 369,453 ÷ 2,182,399 = 16.93%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 369,453 ÷ 2,182,399 = 16.93%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	CoStar Group Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	369,453)	292,564)	227,128)	314,963)	238,334)
Stockholders’ equity	6,870,121)	5,711,672)	5,375,359)	3,405,593)	3,021,942)
Profitability Ratio
ROE¹	5.38%	5.12%	4.23%	9.25%	7.89%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	369,453)	292,564)	227,858)	314,963)	238,334)
Stockholders’ equity	6,870,121)	5,711,672)	5,375,359)	3,405,593)	3,021,942)
Profitability Ratio
Adjusted ROE²	5.38%	5.12%	4.24%	9.25%	7.89%

2022 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 369,453 ÷ 6,870,121 = 5.38%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 369,453 ÷ 6,870,121 = 5.38%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	CoStar Group Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	369,453)	292,564)	227,128)	314,963)	238,334)
Total assets	8,402,470)	7,256,871)	6,915,420)	3,853,986)	3,312,957)
Profitability Ratio
ROA¹	4.40%	4.03%	3.28%	8.17%	7.19%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	369,453)	292,564)	227,858)	314,963)	238,334)
Total assets	8,402,470)	7,256,871)	6,915,420)	3,853,986)	3,312,957)
Profitability Ratio
Adjusted ROA²	4.40%	4.03%	3.29%	8.17%	7.19%

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 369,453 ÷ 8,402,470 = 4.40%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 369,453 ÷ 8,402,470 = 4.40%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	CoStar Group Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

CoStar Group Inc. (NASDAQ:CSGP)

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