Stock Analysis on Net
Stock Analysis on Net

CoStar Group Inc. (NASDAQ:CSGP)

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

Common-Size Income Statement 

CoStar Group Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Revenues 100.00 100.00 100.00 100.00 100.00
Cost of revenues -18.97 -18.38 -18.62 -20.66 -22.65
Gross profit 81.03% 81.62% 81.38% 79.34% 77.35%
Selling and marketing, excluding customer base amortization -31.35 -31.99 -32.29 -29.19 -30.19
Software development -10.12 -10.34 -9.82 -8.97 -8.47
General and administrative -15.52 -13.20 -18.06 -12.77 -13.14
Customer base amortization -3.37 -3.85 -3.76 -2.43 -2.59
Operating expenses -60.37% -59.39% -63.94% -53.36% -54.40%
Income from operations 20.66% 22.24% 17.43% 25.97% 22.95%
Interest income 2.95 0.04 0.27 1.38 1.12
Interest on outstanding borrowings -1.28 -1.44 -1.12 0.00 0.00
Amortization of Senior Notes discount and issuance costs -0.11 -0.12 -0.10 -0.06 -0.08
Commitment fees and other -0.09 -0.10 -0.10 -0.12 -0.16
Interest expense -1.48% -1.66% -1.31% -0.19% -0.24%
Interest income (expense), net 1.47% -1.63% -1.05% 1.20% 0.88%
Other income (expense), net 0.16 0.17 -0.05 0.76 -0.01
Income before income taxes 22.29% 20.78% 16.33% 27.93% 23.83%
Income tax expense -5.36 -5.73 -2.64 -5.43 -3.83
Net income 16.93% 15.05% 13.69% 22.50% 20.00%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Gross Profit and Cost of Revenues
The gross profit margin showed an upward trend from 77.35% in 2018 to a peak of 81.62% in 2021, followed by a slight decline to 81.03% in 2022. This improvement was mostly driven by a steady reduction in the cost of revenues as a percentage of revenues, decreasing from 22.65% in 2018 to a range around 18-19% in the last three years.
Operating Expenses
Operating expenses as a percentage of revenues fluctuated over the period. Selling and marketing expenses generally hovered around 30%, peaking at 32.29% in 2020 before slightly declining. Software development expenses increased slightly from 8.47% in 2018 to a high of 10.34% in 2021, with a slight reduction afterward. General and administrative costs showed more variability, spiking to 18.06% in 2020 after relatively stable figures near 12-13% in other years, and then settling around 15.52% in 2022. Customer base amortization increased from 2.59% in 2018 to around 3.5% in recent years. Overall, operating expenses reached a peak of nearly 64% in 2020 before reducing somewhat but remaining elevated around 60% in 2022.
Operating Income
Income from operations as a percentage of revenues peaked in 2019 at 25.97%, but dropped substantially in 2020 to 17.43%, coinciding with the increase in operating expenses that year. It thereafter recovered partially to about 20-22% in the last two years.
Interest Income and Expense
Interest income displayed a notable increase in 2022, reaching 2.95% of revenues compared to lower levels in prior years. Interest on borrowings and related expenses increased notably in 2020 and remained elevated, reaching approximately 1.3-1.6% negatively impacting net interest figures. Net interest income (expense) reflected this volatility, moving from positive values in 2018 and 2019 to negative in 2020 and 2021, and returning to a positive contribution in 2022.
Other Income and Income Taxes
Other income (expense) showed minor fluctuations close to zero, indicating limited impact on overall profitability. Income tax expense varied without a clear trend but generally accounted for between 2.6% and 5.7% of revenues, with a higher burden in 2019 and 2021.
Net Income
Net income as a percentage of revenues followed a downward trend from a high of 22.5% in 2019 to a low of 13.69% in 2020, then increased gradually to 16.93% by 2022. This pattern closely mirrors operating income trends, reflecting the influence of changing operating expenses and interest expenses during the period.