CoStar Group sees annual revenue below estimates on weak property demand
(Reuters) — Real estate information provider CoStar Group (NASDAQ:CSGP) forecast full-year 2024 revenue below market expectations on Tuesday, on signs of a slowdown in traffic to its websites as consumers face an uncertain property market.
Shares of the Washington, D.C.-based company fell 8% in extended trading.
The forecast indicates that high borrowing costs are prompting consumers to hold off on big-ticket purchases like property, affecting subscriptions on CoStar's subsidiary websites, «Homes.com» and «Apartments.com».
The company had recently aired four commercials during the Super Bowl amid a marketing push to drive revenue and get ahead of rival home-search sites like Zillow Group (NASDAQ:ZG) and Redfin (NASDAQ:RDFN).
CoStar expects revenue for its fiscal 2024 to be in the range of $2.75 billion to $2.77 billion compared with analysts' estimate of $2.78 billion, according to LSEG data.
It expects first-quarter revenue between $645 million and $650 million compared with estimates of $652.9 million.
For the fourth-quarter ended Dec. 31, the company reported revenue of $640 million, which was ahead of estimates of $634.3 million. It earned a profit per share of 24 cents, down from 31 cents per share a year ago.
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