CoStar Group Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

csgp-20200930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission file number 0-24531

CoStar Group, Inc.

(Exact name of registrant as specified in its charter)


Delaware						52-2091509
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


1331 L Street, NW
Washington,	DC	20005

(Address of principal executive offices) (Zip Code)

(202) 346-6500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock ($0.01 par value)	CSGP	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of October 23, 2020, there were 39,418,077 shares of the registrant’s common stock outstanding.

COSTAR GROUP, INC.

FORM 10-Q

TABLE OF CONTENTS


PART I	FINANCIAL INFORMATION

Item 1.	Financial Statements	4

	Condensed Consolidated Statements of Operations	4

	Condensed Consolidated Statements of Comprehensive Income	5

	Condensed Consolidated Balance Sheets	6

	Condensed Consolidated Statements of Changes in Stockholders’ Equity	7

	Condensed Consolidated Statements of Cash Flows	9

	Notes to Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49

Item 4.	Controls and Procedures	50

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	51

Item 1A.	Risk Factors	51

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52

Item 3.	Defaults Upon Senior Securities	52

Item 4.	Mine Safety Disclosures	52

Item 5.	Other Information	52

Item 6.	Exhibits	53

Signatures		54

PART I — FINANCIAL INFORMATION

Item 1.Financial Statements

COSTAR GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues	$	425,620	$	352,808	$	1,214,626	$	1,024,993
Cost of revenues	77,865		71,172		230,814		214,243
Gross profit	347,755		281,636		983,812		810,750

Operating expenses:
Selling and marketing (excluding customer base amortization)	146,634		101,582		402,202		308,751
Software development	40,732		32,639		121,343		89,022
General and administrative	65,322		45,530		181,598		127,943
Customer base amortization	18,258		7,616		44,677		22,473
	270,946		187,367		749,820		548,189
Income from operations	76,809		94,269		233,992		262,561
Interest (expense) income	(7,537)		4,414		(9,482)		13,304
Other (expense) income	(338)		240		29		779
Income before income taxes	68,934		98,923		224,539		276,644
Income tax expense	10,748		20,304		33,200		49,608
Net income	$	58,186	$	78,619	$	191,339	$	227,036



Net income per share - basic	$	1.49	$	2.16	$	5.07	$	6.26
Net income per share - diluted	$	1.48	$	2.15	$	5.04	$	6.20

Weighted-average outstanding shares - basic	39,159		36,333		37,718		36,293
Weighted-average outstanding shares - diluted	39,401		36,652		37,970		36,615

See accompanying notes.

COSTAR GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income	$	58,186	$	78,619	$	191,339	$	227,036
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	7,535		(2,161)		(4,551)		(2,548)
Unrealized gain on investments	—		—		189		—
Reclassification adjustment for realized loss on investments included in net income	—		—		541		—
Total other comprehensive income (loss)	7,535		(2,161)		(3,821)		(2,548)
Total comprehensive income	$	65,721	$	76,458	$	187,518	$	224,488

See accompanying notes.

COSTAR GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)


	September 30, 2020		December 31, 2019
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	3,867,805	$	1,070,731

Accounts receivable	119,219		96,788
Less: Allowance for credit losses	(14,205)		(4,548)
Accounts receivable, net	105,014		92,240



Prepaid expenses and other current assets	34,414		36,194

Total current assets	4,007,233		1,199,165

Long-term investments	—		10,070
Deferred income taxes, net	3,891		5,408
Property and equipment, net	127,280		107,529
Lease right-of-use assets	106,320		115,084
Goodwill	2,015,079		1,882,020
Intangible assets, net	414,608		421,196
Deferred commission costs, net	93,006		89,374
Deposits and other assets	15,102		9,232
Income tax receivable	14,806		14,908

Total assets	$	6,797,325	$	3,853,986
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:

Accounts payable	$	20,266	$	7,640
Accrued wages and commissions	63,341		53,087
Accrued expenses	54,753		38,680

Income taxes payable	256		10,705

Lease liabilities	31,494		29,670
Deferred revenue	75,001		67,274
Total current liabilities	245,111		207,056

Long-term debt, net	986,413		—


Deferred income taxes, net	97,022		87,096
Income taxes payable	21,114		20,521
Lease and other long-term liabilities	129,607		133,720
Total liabilities	1,479,267		448,393

Total stockholders' equity	$	5,318,058	$	3,405,593
Total liabilities and stockholders’ equity	$	6,797,325	$	3,853,986

See accompanying notes.

COSTAR GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2019	36,668	$	366	$	2,473,338	$	(8,585)	$	940,474	$	3,405,593


Net income	—	—		—		—		72,793		72,793


Other comprehensive loss	—	—		—		(12,219)		—		(12,219)
Exercise of stock options	41	1		9,232		—		—		9,233
Restricted stock grants	83	1		(1)		—		—		—
Restricted stock grants surrendered	(56)	(1)		(30,144)		—		—		(30,145)
Stock-based compensation expense	—	—		15,006		—		—		15,006

Employee stock purchase plan	4	—		2,550		—		—		2,550


Balance at March 31, 2020	36,740	$	367	$	2,469,981	$	(20,804)	$	1,013,267	$	3,462,811
Net income	—	—		—		—		60,360		60,360


Other comprehensive income	—	—		—		863		—		863
Exercise of stock options	11	—		2,924		—		—		2,924
Restricted stock grants	11	—		—		—		—		—
Restricted stock grants surrendered	(17)	—		(3,509)		—		—		(3,509)
Stock-based compensation expense	—	—		8,609		—		—		8,609
Employee stock purchase plan	4	—		2,292		—		—		2,292

Stock issued for equity offerings, net of transaction costs	2,634	26		1,689,945		—		—		1,689,971

Balance at June 30, 2020	39,383	$	393	$	4,170,242	$	(19,941)	$	1,073,627	$	5,224,321
Net income	—	—		—		—		58,186		58,186


Other comprehensive income	—	—		—		7,535		—		7,535
Exercise of stock options	44	—		9,714		—		—		9,714
Restricted stock grants	3	—		—		—		—		—
Restricted stock grants surrendered	(3)	—		(398)		—		—		(398)
Stock-based compensation expense	—	—		16,542		—		—		16,542
Employee stock purchase plan	3	—		2,158		—		—		2,158



Balance at September 30, 2020	39,430	$	393	$	4,198,258	$	(12,406)	$	1,131,813	$	5,318,058

See accompanying notes.

COSTAR GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2018	36,446	$	364	$	2,419,812	$	(11,688)	$	613,454	$	3,021,942
Cumulative effect of adoption of new accounting standard, net of tax	—	—		—		—		12,057		12,057
Balance at January 1, 2019	36,446	$	364	$	2,419,812	$	(11,688)	$	625,511	$	3,033,999
Net income	—	—		—		—		85,169		85,169


Other comprehensive income	—	—		—		380		—		380
Exercise of stock options	79	1		10,637		—		—		10,638
Restricted stock grants	132	1		(1)		—		—		—
Restricted stock grants surrendered	(43)	—		(18,679)		—		—		(18,679)
Stock-based compensation expense	—	—		12,034		—		—		12,034
Management stock purchase plan	—	—		3,491		—		—		3,491
Employee stock purchase plan	4	—		1,582		—		—		1,582


Balance at March 31, 2019	36,618	$	366	$	2,428,876	$	(11,308)	$	710,680	$	3,128,614
Net income	—	—		—		—		63,248		63,248


Other comprehensive loss	—	—		—		(767)		—		(767)
Exercise of stock options	15	—		3,001		—		—		3,001
Restricted stock grants	4	—		—		—		—		—
Restricted stock grants surrendered	(17)	—		(5,546)		—		—		(5,546)
Stock-based compensation expense	—	—		13,706		—		—		13,706

Employee stock purchase plan	4	—		1,815		—		—		1,815
Balance at June 30, 2019	36,624	$	366	$	2,441,852	$	(12,075)	$	773,928	$	3,204,071
Net income	—	—		—		—		78,619		78,619


Other comprehensive loss	—	—		—		(2,161)		—		(2,161)
Exercise of stock options	20	—		4,697		—		—		4,697
Restricted stock grants	8	—		—		—		—		—
Restricted stock grants surrendered	(5)	—		(815)		—		—		(815)
Stock-based compensation expense	—	—		13,002		—		—		13,002
Employee stock purchase plan	3	—		1,753		—		—		1,753
Balance at September 30, 2019	36,650	$	366	$	2,460,489	$	(14,236)	$	852,547	$	3,299,166

See accompanying notes.

COSTAR GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Nine Months Ended September 30,
	2020		2019
Operating activities:
Net income	$	191,339	$	227,036
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	83,911		57,235

Amortization of deferred commissions costs	45,017		39,189
Amortization of senior notes discount and issuance costs	1,082		657



Non-cash lease expense	18,801		16,369

Stock-based compensation expense	40,783		38,984
Deferred income taxes, net	6,812		13,288
Credit loss expense	21,395		7,458
Other operating activities, net	(12)		—


Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(34,131)		(8,797)
Income taxes payable	(9,838)		7,784
Prepaid expenses and other current assets	4,145		(754)
Deferred commissions	(48,704)		(48,791)
Other assets	1,521		(43)
Accounts payable and other liabilities	47,341		7,664
Lease liabilities	(21,247)		(19,787)
Deferred revenue	7,123		12,525
Net cash provided by operating activities	355,338		350,017

Investing activities:
Proceeds from sale and settlement of investments	10,259		—
Purchases of property and equipment and other assets	(42,137)		(44,162)
Cash paid for acquisitions, net of cash acquired	(192,002)		(13,721)
Net cash used in investing activities	(223,880)		(57,883)

Financing activities:
Proceeds from long-term debt	1,744,210		—
Payments of debt issuance costs	(15,747)		—
Payments of long-term debt	(745,000)		—
Repurchase of restricted stock to satisfy tax withholding obligations	(34,051)		(25,040)
Proceeds from equity offering, net of transaction costs	1,689,971		—
Proceeds from exercise of stock options and employee stock purchase plan	28,169		22,970
Other financing activities	(1,650)		(123)
Net cash provided by (used in) financing activities	2,665,902		(2,193)

Effect of foreign currency exchange rates on cash and cash equivalents	(286)		(738)
Net increase in cash, cash equivalents and restricted cash	2,797,074		289,203
Cash, cash equivalents and restricted cash at the beginning of period	1,070,731		1,100,416
Cash, cash equivalents and restricted cash at the end of period	$	3,867,805	$	1,389,619

Supplemental cash flow disclosures:
Interest paid	$	5,948	$	1,500
Income taxes paid	$	36,475	$	41,699

Supplemental non-cash investing and financing activities:
Consideration owed for acquisitions	$	—	$	1,650

See accompanying notes.

COSTAR GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

1.ORGANIZATION

CoStar Group, Inc. (the “Company” or “CoStar”) provides information, analytics, online marketplace and auction services to the commercial real estate and related business community through its comprehensive, proprietary database of commercial real estate information and related tools. The Company provides online marketplaces for commercial real estate, apartment rentals, lands for sale and businesses for sale, and its services are typically distributed to its clients under subscription-based license agreements that renew automatically, a majority of which have a term of at least one year. The Company operates within two operating segments, North America, which includes the United States ("U.S.") and Canada, and International, which primarily includes Europe, Asia-Pacific, and Latin America.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Accounting policies are consistent for each operating segment.

Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. In the opinion of the Company’s management, the financial statements reflect all adjustments, consisting only of a normal recurring nature, necessary to present fairly the Company’s financial position at September 30, 2020 and December 31, 2019, the results of its operations for the three and nine months ended September 30, 2020 and 2019, its comprehensive income for the three and nine months ended September 30, 2020 and 2019, its changes in stockholders' equity for the three and nine months ended September 30, 2020 and 2019, and its cash flows for the nine months ended September 30, 2020 and 2019.

Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, allowance for credit losses, the useful lives and recoverability of long-lived and intangible assets, and goodwill, income taxes, accounting for business combinations, stock-based compensation, estimating the Company's incremental borrowing rate for its leases, and contingencies, among others. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses. Actual results could differ from these estimates.

Revenue Recognition

The Company derives revenues primarily by (i) providing access to its proprietary database of commercial real estate information and (ii) providing online marketplaces for professional property management companies, property owners, brokers and landlords, in each case, typically through a fixed monthly fee for its subscription-based services. The Company's subscription-based services consist primarily of information, analytics and online marketplace services offered over the Internet to commercial real estate industry and related professionals. Subscription contract rates are based on the number of sites, number of users, organization size, the client’s business focus, geography, the number and types of services to which a client subscribes, the number of properties a client advertises and the prominence and placement of a client's advertised properties in

COSTAR GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

the search results. The Company’s subscription-based license agreements typically renew automatically, and a majority have a term of at least one year.

The Company also provides (i) market research, portfolio and debt analysis, management and reporting capabilities, (ii) real estate and lease management solutions, including lease administration and abstraction services, to commercial customers, real estate investors, and lenders via the Company’s other service offerings, (iii) benchmarking and analytics for the hospitality industry through STR, LLC and STR Global, Ltd. (together with STR, LLC, referred to as “STR”) and (iv) an online auction platform for commercial real estate through Ten-X, LLC and its subsidiaries which were acquired in June 2020. See Note 5 for details of the acquisition.

The Company analyzes contracts to determine the appropriate revenue recognition using the following steps: (i) identification of contracts with customers, (ii) identification of distinct performance obligations in the contract, (iii) determination of contract transaction price, (iv) allocation of contract transaction price to the performance obligations, and (v) determination of revenue recognition based on timing of satisfaction of the performance obligation(s).

The Company recognizes revenues upon the satisfaction of its performance obligation(s) (upon transfer of control of promised services to its customers) in an amount that reflects the consideration to which it expects to be entitled to in exchange for those services. Revenues from subscription-based services are recognized on a straight-line basis over the term of the agreement.

In limited circumstances, the Company's contracts with customers include promises to transfer multiple services, such as contracts for its subscription-based services and professional services. For these contracts, the Company accounts for individual performance obligations separately if they are distinct, which involves the determination of the standalone selling price for each distinct performance obligation.

Deferred revenue results from amounts billed in advance to customers or cash received from customers in advance of the Company's fulfillment of its performance obligation(s) and is recognized as those obligations are satisfied.

Contract assets represent a conditional right to consideration for satisfied performance obligations that become a receivable when the conditions are satisfied. Contract assets are generated when contractual billing schedules differ from revenue recognition timing.

Certain sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions incurred for obtaining new contracts are deferred and then amortized as selling and marketing expenses on a straight-line basis over a period of benefit that the Company has determined to be three years. The three-year amortization period was determined based on several factors, including the nature of the technology and proprietary data underlying the services being purchased, customer contract renewal rates and industry competition. Certain commission costs are not capitalized as they do not represent incremental costs of obtaining a contract.

See Note 3 for further discussion of the Company's revenue recognition.

Cost of Revenues

Cost of revenues principally consists of salaries, benefits, bonuses and stock-based compensation expenses and other indirect costs for the Company's researchers who collect and analyze the commercial real estate data that is the basis for the Company's information, analytics and online marketplaces and for employees that support these products. Additionally, cost of revenues includes the cost of data from third-party data sources, credit card and other transaction fees relating to processing customer transactions, which are expensed as incurred, and the amortization of acquired trade names, technology and other intangible assets.

Advertising Costs

The Company expenses advertising costs as incurred. Advertising costs include digital marketing, television, company-sponsored events, print and other media advertising. Advertising costs were approximately $79 million and $44 million for the three months ended September 30, 2020 and 2019, respectively, and $202 million and $130 million for the nine months ended September 30, 2020 and 2019, respectively.

COSTAR GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Foreign Currency

The Company’s reporting currency is the U.S. dollar. The functional currency for the majority of its operations is the local currency, with the exception of certain international locations of STR for which the functional currency is the British Pound. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect as of the balance sheet date. Gains and losses resulting from translation are included in accumulated other comprehensive loss. Currency gains and losses on the translation of intercompany loans made to foreign subsidiaries that are of a long-term investment nature are also included in accumulated other comprehensive loss. Gains and losses resulting from transactions denominated in a currency other than the functional currency of the entity are included in other (expense) income in the condensed consolidated statements of operations using the average exchange rates in effect during the period. The Company recognized net foreign currency losses of $0.2 million and gains of $0.2 million for the three months ended September 30, 2020 and 2019, respectively, and net foreign currency gains of $0.7 million and $0.2 million for the nine months ended September 30, 2020 and 2019, respectively, which are included in other (expense) income on the condensed consolidated statements of operations.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows (in thousands):


	September 30, 2020		December 31, 2019
Foreign currency translation adjustment	$	(12,406)	$	(7,855)
Net unrealized loss on investments, net of tax	—		(730)


Total accumulated other comprehensive loss	$	(12,406)	$	(8,585)

During the nine months ended September 30, 2020, the Company sold its long-term variable debt instruments with an auction reset feature, referred to as auction rate securities ("ARS") and reclassified out of accumulated other comprehensive loss a realized loss of $0.5 million to earnings which is included in other (expense) income in the condensed consolidated statements of operations. There were no amounts reclassified out of accumulated other comprehensive loss to the condensed consolidated statements of operations for the three and nine months ended September 30, 2019.

See Note 6 for additional information regarding investments.

Income Taxes

Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and the basis reported in the Company’s condensed consolidated financial statements. Deferred tax liabilities and assets are determined based on the difference between the financial statement and the tax basis of assets and liabilities using enacted rates in effect during the year in which the Company expects differences to reverse. Valuation allowances are provided against assets, including net operating losses, if the Company determines it is more likely than not that some portion or all of an asset may not be realized. Interest and penalties related to income tax matters are recognized in income tax expense.

See Note 11 for additional information regarding income taxes.

Net Income Per Share

Net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period on a basic and diluted basis.

COSTAR GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The following table sets forth the calculation of basic and diluted net income per share (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
Numerator:	2020		2019		2020		2019

Net income	$	58,186	$	78,619	$	191,339	$	227,036
Denominator:
Denominator for basic net income per share — weighted-average outstanding shares	39,159		36,333		37,718		36,293
Effect of dilutive securities:
Stock options, restricted stock awards and restricted stock units	242		319		252		322
Denominator for diluted net income per share — weighted-average outstanding shares	39,401		36,652		37,970		36,615

Net income per share — basic	$	1.49	$	2.16	$	5.07	$	6.26
Net income per share — diluted	$	1.48	$	2.15	$	5.04	$	6.20

The Company’s potentially dilutive securities include outstanding stock options and unvested stock-based awards which include restricted stock awards that vest over a specific service period, restricted stock awards with a performance and a market condition, restricted stock units and awards of matching restricted stock units ("Matching RSUs") awarded under the Company's Management Stock Purchase Plan. Shares underlying unvested restricted stock awards that vest based on performance and market conditions that have not been achieved as of the end of the period are not included in the computation of basic or diluted net income per share. Diluted net income per share considers the impact of potentially dilutive securities except when the inclusion of the potentially dilutive securities would have an anti-dilutive effect.

The following table summarizes the shares underlying the unvested performance-based restricted stock and anti-dilutive securities excluded from the basic and diluted earnings per share calculations (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Performance-based restricted stock awards	79	60	79	90
Anti-dilutive securities	37	7	71	82

Stock-Based Compensation

Equity instruments issued in exchange for services performed by officers, employees, and directors of the Company are accounted for using a fair-value based method and the fair value of such equity instruments is recognized as expense in the consolidated statements of operations.

For stock-based awards that vest over a specific service period, compensation expense is measured based on the fair value of the awards at the grant date, and is recognized on a strai

Price	594.58	EPS	8
Shares	37	P/E	70
MCap	21,793	P/FCF	62
Net Debt	-1,390	EBIT	389
TEV	20,403	TEV/EBIT	52
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-10-28
10-Q	2020-06-30	Filed 2020-07-29
10-Q	2020-03-31	Filed 2020-04-29
10-K	2019-12-31	Filed 2020-02-26
10-Q	2019-09-30	Filed 2019-10-23
10-Q	2019-06-30	Filed 2019-07-24
10-Q	2019-03-31	Filed 2019-04-24
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-10-24
10-Q	2018-06-30	Filed 2018-07-25
10-Q	2018-03-31	Filed 2018-04-25
10-K	2017-12-31	Filed 2018-02-23
10-Q	2017-09-30	Filed 2017-10-26
10-Q	2017-06-30	Filed 2017-07-27
10-Q	2017-03-31	Filed 2017-04-27
10-K	2016-12-31	Filed 2017-02-24
10-Q	2016-09-30	Filed 2016-10-27
10-Q	2016-06-30	Filed 2016-07-28
10-Q	2016-03-31	Filed 2016-04-28
10-K	2015-12-31	Filed 2016-02-26
10-Q	2015-09-30	Filed 2015-10-29
10-Q	2015-06-30	Filed 2015-07-30
10-Q	2015-03-31	Filed 2015-04-30
10-K	2014-12-31	Filed 2015-02-26
10-Q	2014-09-30	Filed 2014-10-30
10-Q	2014-06-30	Filed 2014-07-25
10-Q	2014-03-31	Filed 2014-04-24
10-K	2013-12-31	Filed 2014-02-20
10-Q	2013-09-30	Filed 2013-10-24
10-Q	2013-06-30	Filed 2013-07-24
10-Q	2013-03-31	Filed 2013-04-25
10-K	2012-12-31	Filed 2013-03-01
10-Q	2012-09-30	Filed 2012-10-25
10-Q	2012-06-30	Filed 2012-07-26
10-Q	2012-03-31	Filed 2012-04-27
10-K	2011-12-31	Filed 2012-02-23
10-Q	2011-09-30	Filed 2011-10-27
10-Q	2011-06-30	Filed 2011-07-28
10-Q	2011-03-31	Filed 2011-04-29
10-K	2010-12-31	Filed 2011-02-25
10-Q	2010-09-30	Filed 2010-10-22
10-Q	2010-06-30	Filed 2010-07-23
10-Q	2010-03-31	Filed 2010-04-23
10-K	2009-12-31	Filed 2010-02-26

8-K	2020-10-27	Earnings, Exhibits
8-K	2020-09-27	Officers, Exhibits
8-K	2020-07-28	Earnings, Exhibits
8-K	2020-07-01	Enter Agreement, Off-BS Arrangement, Exhibits
8-K	2020-06-24
8-K	2020-06-03
8-K	2020-05-26
8-K	2020-05-13
8-K	2020-04-29
8-K	2020-04-28
8-K	2020-03-25
8-K	2020-02-25
8-K	2020-02-11
8-K	2019-12-12
8-K	2019-10-22
8-K	2019-09-30
8-K	2019-09-30
8-K	2019-07-23
8-K	2019-06-05
8-K	2019-04-23
8-K	2019-02-26
8-K	2018-10-23
8-K	2018-07-24
8-K	2018-06-06
8-K	2018-04-23
8-K	2018-02-21
8-K	2018-01-17

EX-31.1	csgp-09302020xex311.htm
EX-31.2	csgp-09302020xex312.htm
EX-32.1	csgp-09302020xex321.htm
EX-32.2	csgp-09302020xex322.htm

CSGP 10Q Quarterly Report

CoStar Group Earnings 2020-09-30