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

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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
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
Interest on outstanding borrowings
Amortization of Senior Notes discount and issuance costs
Commitment fees and other
Interest expense
Interest income (expense), net
Other income (expense), net
Income before income taxes
Income tax expense
Net income

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.