Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

CoStar Group Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	369,453)	292,564)	227,128)	314,963)	238,334)
Depreciation and amortization	137,885)	139,558)	116,944)	81,165)	77,743)
Amortization of deferred commissions costs	76,082)	63,391)	60,516)	53,421)	48,313)
Amortization of Senior Notes discount and issuance costs	2,365)	2,327)	1,658)	876)	876)
Non-cash lease expense	38,489)	28,485)	26,326)	22,748)	—)
Stock-based compensation expense	75,207)	63,709)	53,450)	52,255)	41,214)
Deferred income taxes, net	(31,203)	24,165)	(11,530)	8,220)	3,666)
Credit loss expense	18,309)	10,928)	25,212)	10,978)	6,542)
Other operating activities, net	(2,439)	(654)	288)	105)	73)
Accounts receivable	(46,403)	(29,630)	(36,118)	(5,014)	(27,819)
Prepaid expenses and other current assets	(17,910)	(14,873)	1,936)	(14,244)	(1,651)
Deferred commissions	(116,796)	(72,038)	(64,355)	(66,688)	(53,497)
Accounts payable and other liabilities	23,234)	(30,051)	100,846)	17,751)	(14,132)
Lease liabilities	(37,396)	(30,904)	(30,497)	(25,442)	—)
Income taxes payable	(19,259)	5,860)	10,352)	(577)	9,632)
Deferred revenue	6,785)	17,396)	2,188)	7,911)	7,879)
Other assets	2,217)	(502)	1,762)	(648)	(1,715)
Changes in operating assets and liabilities, net of acquisitions	(205,528)	(154,742)	(13,886)	(86,951)	(81,303)
Adjustments to reconcile net income to net cash provided by operating activities	109,167)	177,167)	258,978)	142,817)	97,124)
Net cash provided by operating activities	478,620)	469,731)	486,106)	457,780)	335,458)
Proceeds from sale and settlement of investments	864)	—)	10,259)	—)	—)
Proceeds from sale of property and equipment and other assets	30,097)	612)	—)	—)	—)
Purchase of Richmond assets	(35,169)	(123,764)	—)	—)	—)
Purchases of property and equipment and other assets	(58,574)	(65,220)	(48,347)	(46,197)	(29,632)
Cash paid for acquisitions, net of cash acquired	(6,273)	(192,971)	(426,075)	(437,556)	(418,369)
Net cash used in investing activities	(69,055)	(381,343)	(464,163)	(483,753)	(448,001)
Proceeds from long-term debt	—)	—)	1,744,210)	—)	—)
Payments of long-term debt	(2,155)	—)	(745,000)	—)	—)
Payments of debt issuance costs	—)	—)	(16,647)	—)	—)
Repurchase of restricted stock to satisfy tax withholding obligations	(23,108)	(33,314)	(38,867)	(27,577)	(24,327)
Proceeds from equity offering, net of transaction costs	745,700)	—)	1,689,971)	—)	—)
Proceeds from exercise of stock options and employee stock purchase plan	13,540)	18,046)	30,280)	25,080)	27,071)
Other financing activities	—)	(411)	(1,650)	(1,657)	—)
Net cash provided by (used in) financing activities	733,977)	(15,679)	2,662,297)	(4,154)	2,744)
Effect of foreign currency exchange rates on cash and cash equivalents	(2,698)	(1,495)	941)	442)	(1,248)
Net increase (decrease) in cash and cash equivalents	1,140,844)	71,214)	2,685,181)	(29,685)	(111,047)
Cash and cash equivalents at beginning of year	3,827,126)	3,755,912)	1,070,731)	1,100,416)	1,211,463)
Cash and cash equivalents at end of year	4,967,970)	3,827,126)	3,755,912)	1,070,731)	1,100,416)

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).

Net income: The net income exhibited fluctuations over the five-year period, increasing from 238,334 thousand USD in 2018 to 314,963 thousand USD in 2019, then declining to 227,128 thousand USD in 2020. Subsequently, it rose again to 292,564 thousand USD in 2021 and further to 369,453 thousand USD in 2022, indicating overall growth with some volatility.
Depreciation and amortization: Depreciation and amortization expenses increased steadily from 77,743 thousand USD in 2018 to a peak of 139,558 thousand USD in 2021, followed by a slight decrease to 137,885 thousand USD in 2022. This trend reflects rising non-cash expenses related to asset usage and amortization.
Amortization of deferred commissions costs: Amortization of deferred commissions costs rose consistently each year, starting at 48,313 thousand USD in 2018 and reaching 76,082 thousand USD in 2022, suggesting increasing commission-related expense recognition over time.
Stock-based compensation expense: This expense showed a steady upward trend from 41,214 thousand USD in 2018 to 75,207 thousand USD in 2022, indicating growing share-based remuneration expenses, possibly tied to employee incentives or retention strategies.
Deferred income taxes, net: Deferred income taxes fluctuated significantly, with positive values in 2018 and 2019, a negative amount in 2020, a rebound to positive in 2021, and a sharp negative in 2022 (-31,203 thousand USD). This variability may reflect changes in tax positions or timing differences in income recognition.
Credit loss expense: The credit loss expense showed volatility, increasing from 6,542 thousand USD in 2018 to a peak of 25,212 thousand USD in 2020, then declining to 10,928 thousand USD in 2021 before rising again to 18,309 thousand USD in 2022, indicating episodic changes in credit risk or bad debt provisions.
Non-cash lease expense: Initially absent in 2018, non-cash lease expense started reporting in 2019 at 22,748 thousand USD and increased annually to 38,489 thousand USD by 2022, reflecting growing recognition of lease liabilities due to accounting standards or lease portfolio expansion.
Operating assets and liabilities: Changes in net operating assets and liabilities were consistently negative over the years, with a significant increase in the net reduction to -205,528 thousand USD in 2022 from -81,303 thousand USD in 2018, indicating increasing cash outflows or working capital investments.
Net cash provided by operating activities: Cash flows from operations grew from 335,458 thousand USD in 2018 to a peak of 486,106 thousand USD in 2020, dipped slightly in 2021 to 469,731 thousand USD, and marginally increased to 478,620 thousand USD in 2022, reflecting generally strong operating cash generation.
Investing activities: Net cash used in investing activities decreased significantly in absolute terms from -448,001 thousand USD in 2018 to -69,055 thousand USD in 2022, indicating a marked reduction in investing outflows. Notably, acquisition-related cash outflows dropped sharply from -418,369 thousand USD in 2018 to -6,273 thousand USD in 2022, and property and equipment purchases remained relatively stable, suggesting a scaling back of investment activities.
Financing activities: Financing activities showed substantial variability, with net cash provided peaking at over 2.66 billion USD in 2020 due to equity offering proceeds and long-term debt issuance. The years 2018, 2019, 2021, and 2022 saw lower or negative financing cash flows except for a notable positive of 733,977 thousand USD in 2022, primarily driven by a large equity offering and other financing inflows.
Cash and cash equivalents: Cash balances decreased in 2018 and 2019, reflecting negative net cash changes, but surged markedly starting in 2020 with a 2.68 billion USD increase and continued strong growth in 2021 and 2022, culminating in a cash position of nearly 5 billion USD by the end of 2022, indicating substantial liquidity accumulation over the most recent years.

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CoStar Group Inc. (NASDAQ:CSGP)

Cash Flow Statement