Calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 16.93% | = | 100 | × | 369,453) | ÷ | 2,182,399) |
| Dec 31, 2021 | 15.05% | = | 100 | × | 292,564) | ÷ | 1,944,135) |
| Dec 31, 2020 | 13.69% | = | 100 | × | 227,128) | ÷ | 1,659,019) |
| Dec 31, 2019 | 22.50% | = | 100 | × | 314,963) | ÷ | 1,399,719) |
| Dec 31, 2018 | 20.00% | = | 100 | × | 238,334) | ÷ | 1,191,832) |
| Dec 31, 2017 | 12.71% | = | 100 | × | 122,695) | ÷ | 965,230) |
| Dec 31, 2016 | 10.16% | = | 100 | × | 85,071) | ÷ | 837,630) |
| Dec 31, 2015 | -0.49% | = | 100 | × | (3,465) | ÷ | 711,764) |
| Dec 31, 2014 | 7.79% | = | 100 | × | 44,869) | ÷ | 575,936) |
| Dec 31, 2013 | 6.74% | = | 100 | × | 29,734) | ÷ | 440,943) |
| Dec 31, 2012 | 2.83% | = | 100 | × | 9,915) | ÷ | 349,936) |
| Dec 31, 2011 | 5.82% | = | 100 | × | 14,656) | ÷ | 251,738) |
| Dec 31, 2010 | 5.87% | = | 100 | × | 13,289) | ÷ | 226,260) |
| Dec 31, 2009 | 8.92% | = | 100 | × | 18,693) | ÷ | 209,659) |
| Dec 31, 2008 | 11.59% | = | 100 | × | 24,623) | ÷ | 212,428) |
| Dec 31, 2007 | 8.27% | = | 100 | × | 15,951) | ÷ | 192,805) |
| Dec 31, 2006 | 7.81% | = | 100 | × | 12,410) | ÷ | 158,889) |
| Dec 31, 2005 | 4.81% | = | 100 | × | 6,457) | ÷ | 134,338) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial trajectory from 2005 to 2022 is characterized by consistent revenue expansion and significant volatility in bottom-line profitability. Total revenues grew steadily from $134.3 million in 2005 to $2.18 billion in 2022, while net profit margins experienced several distinct cycles of contraction and expansion.
- Early Profitability Trends (2005–2012)
- During this period, net profit margins exhibited instability, peaking at 11.59% in 2008 before entering a period of decline. The margin reached a cyclical low of 2.83% in 2012, coinciding with a period where revenue growth outpaced the growth of net income.
- The 2015 Profitability Dip
- A significant anomaly occurred in 2015, marked by a transition to a net loss of $3.465 million. This resulted in a negative net profit margin of -0.49%, representing the only year of negative profitability within the observed timeframe despite a continued increase in total revenues to $711.8 million.
- Period of Rapid Margin Expansion (2016–2019)
- Following the 2015 loss, a sharp upward trend in profitability was observed. Net profit margins climbed rapidly from 10.16% in 2016 to a peak of 22.50% in 2019. This phase indicates a substantial improvement in operational efficiency and a strong correlation between revenue scaling and net income growth.
- Recent Margin Stabilization (2020–2022)
- The period starting in 2020 saw a temporary contraction in the net profit margin to 13.69%, followed by a steady recovery. By December 31, 2022, the margin improved to 16.93%, suggesting a stabilization of costs relative to the expanded revenue base.
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Comparison to Industry (Industrials)
| CoStar Group Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 16.93% | 5.04% |
| Dec 31, 2021 | 15.05% | 5.85% |
| Dec 31, 2020 | 13.69% | 0.09% |
| Dec 31, 2019 | 22.50% | 4.11% |
| Dec 31, 2018 | 20.00% | 4.75% |
| Dec 31, 2017 | 12.71% | 5.79% |
| Dec 31, 2016 | 10.16% | 7.43% |
| Dec 31, 2015 | -0.49% | 6.48% |
| Dec 31, 2014 | 7.79% | 8.76% |
| Dec 31, 2013 | 6.74% | 8.23% |
| Dec 31, 2012 | 2.83% | 7.39% |
| Dec 31, 2011 | 5.82% | 8.26% |
| Dec 31, 2010 | 5.87% | 7.48% |
| Dec 31, 2009 | 8.92% | 5.76% |
| Dec 31, 2008 | 11.59% | 7.27% |
| Dec 31, 2007 | 8.27% | 9.56% |
| Dec 31, 2006 | 7.81% | 14.87% |
| Dec 31, 2005 | 4.81% | 3.55% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).