Stock Analysis on Net
Stock Analysis on Net

CoStar Group Inc. (NASDAQ:CSGP)

$22.49

This company has been moved to the archive! The financial data has not been updated since July 26, 2023.

Common-Size Income Statement
Quarterly Data

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CoStar Group Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Revenues
Cost of revenues
Gross profit
Selling and marketing, excluding customer base amortization
Software development
General and administrative
Customer base amortization
Operating expenses
Income from operations
Interest income (expense), net
Other income (expense), net
Income before income taxes
Income tax expense
Net income

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

Gross Margin Trends
The gross profit margin remained relatively stable, generally fluctuating between approximately 77% and 83% of revenues over the reported periods. The margin showed a modest upward trend from early 2018 to late 2020, reaching above 82% at some points, before slightly declining but staying above 79% in the latest periods. This indicates consistent control over the cost of revenues relative to sales.
Cost of Revenues
The cost of revenues decreased as a percentage of revenues from around 23% in early 2018 to below 18% in late 2020, suggesting improved efficiency or cost management. However, this trend showed some reversal thereafter, with costs rising back toward approximately 19-20% by mid-2023, which may warrant further investigation.
Operating Expenses
Operating expenses, encompassing selling and marketing, software development, general and administrative costs, and customer base amortization, exhibited variability across quarters. Notably, selling and marketing expenses fluctuated widely, with a peak above 41% of revenues in mid-2023, representing a significant increase compared to earlier periods, which mostly ranged between about 22% and 38%. Software development expenses gradually increased over time, reaching over 11% by early 2023, indicating rising investment in technology or product development. General and administrative expenses remained relatively stable around 12% to 16%, though a substantial spike to nearly 27% was observed in late 2020, an outlier likely attributable to extraordinary factors. Customer base amortization generally declined over the years, falling from around 3% in earlier years to below 2% in recent quarters, with a notable exception of a spike to over 5% in late 2022.
Income from Operations
Operating income as a percentage of revenues fluctuated considerably, reaching a peak of approximately 34.7% in late 2018, but generally trending downward thereafter with intermittent recoveries. The lowest operating margin was observed in late 2020 at 12.42%, reflecting the period of increased operating expenses. Subsequent quarters showed recovery but with no clear sustained upward trajectory.
Interest Income (Expense), Net
Interest income and expense data are only provided from mid-2019 onwards. The net interest position was positive in mid-2019 to late 2019, then shifted to negative through most of 2020 and 2021 with expenses around 1.5% to 1.8% of revenues. However, from the end of 2021 into 2023 there was a marked improvement, turning positive and increasing steadily, reaching 8.57% by mid-2023, suggesting beneficial financing arrangements or investment income during recent periods.
Other Income (Expense), Net
Other income and expenses remained relatively modest, fluctuating near zero with minor gains and losses throughout the periods. There was no clear trend or material impact observed from these items on overall profitability.
Income Before Income Taxes
The pre-tax income closely followed the trends in operating income and interest results. It peaked near 35% of revenues in late 2018, declined substantially in late 2020 in line with operating income drops, and recovered thereafter with positive growth into 2023.
Income Tax Expense
Income tax expense as a percentage of revenues varied considerably across quarters, generally ranging from approximately -1% to -8%. Some quarters show negative values that might reflect tax benefits or adjustments. Notably, tax expense spikes occurred in certain quarters, particularly in late 2018 and early 2021, which may relate to changes in income or tax rates.
Net Income
The net income margin evidenced notable volatility. Strong profitability was recorded in late 2018 with margins surpassing 26%, followed by a marked decline reaching lows near 8% in late 2020. Thereafter, profit margins improved but remained generally below the peaks seen in earlier years, fluctuating between roughly 13% and 22%. This pattern corresponds with the variations seen in operating income, interest expense, and tax charges.