Company Quick10K Filing
CoStar Group
Price594.58 EPS8
Shares37 P/E70
MCap21,793 P/FCF62
Net Debt-1,390 EBIT389
TEV20,403 TEV/EBIT52
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

CSGP 10Q Quarterly Report

Part I - Financial Information
Item 1.Financial Statements
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II - Other Information
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits
EX-31.1 csgp-09302020xex311.htm
EX-31.2 csgp-09302020xex312.htm
EX-32.1 csgp-09302020xex321.htm
EX-32.2 csgp-09302020xex322.htm

CoStar Group Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
3.83.02.31.50.80.02012201420172020
Assets, Equity
0.40.30.20.10.0-0.12012201420172020
Rev, G Profit, Net Income
0.80.50.2-0.0-0.3-0.62012201420172020
Ops, Inv, Fin

csgp-20200930
COSTAR GROUP, INC.000105735212/312020Q3falsecspg:LeaseAndOtherLiabilitiesNoncurrent00010573522020-01-012020-09-30xbrli:shares00010573522020-10-23iso4217:USD00010573522020-07-012020-09-3000010573522019-07-012019-09-3000010573522019-01-012019-09-30iso4217:USDxbrli:shares0001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-3000010573522020-09-3000010573522019-12-310001057352us-gaap:CommonStockMember2019-12-310001057352us-gaap:AdditionalPaidInCapitalMember2019-12-310001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001057352us-gaap:RetainedEarningsMember2019-12-310001057352us-gaap:RetainedEarningsMember2020-01-012020-03-3100010573522020-01-012020-03-310001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001057352us-gaap:CommonStockMember2020-01-012020-03-310001057352us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001057352us-gaap:CommonStockMember2020-03-310001057352us-gaap:AdditionalPaidInCapitalMember2020-03-310001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001057352us-gaap:RetainedEarningsMember2020-03-3100010573522020-03-310001057352us-gaap:RetainedEarningsMember2020-04-012020-06-3000010573522020-04-012020-06-300001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001057352us-gaap:CommonStockMember2020-04-012020-06-300001057352us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001057352us-gaap:CommonStockMember2020-06-300001057352us-gaap:AdditionalPaidInCapitalMember2020-06-300001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001057352us-gaap:RetainedEarningsMember2020-06-3000010573522020-06-300001057352us-gaap:RetainedEarningsMember2020-07-012020-09-300001057352us-gaap:CommonStockMember2020-07-012020-09-300001057352us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001057352us-gaap:CommonStockMember2020-09-300001057352us-gaap:AdditionalPaidInCapitalMember2020-09-300001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001057352us-gaap:RetainedEarningsMember2020-09-300001057352us-gaap:CommonStockMember2018-12-310001057352us-gaap:AdditionalPaidInCapitalMember2018-12-310001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001057352us-gaap:RetainedEarningsMember2018-12-3100010573522018-12-310001057352srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2018-12-310001057352srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001057352us-gaap:CommonStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2018-12-310001057352us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2018-12-310001057352us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2018-12-310001057352us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2018-12-310001057352srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2018-12-310001057352us-gaap:RetainedEarningsMember2019-01-012019-03-3100010573522019-01-012019-03-310001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001057352us-gaap:CommonStockMember2019-01-012019-03-310001057352us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310001057352us-gaap:CommonStockMember2019-03-310001057352us-gaap:AdditionalPaidInCapitalMember2019-03-310001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001057352us-gaap:RetainedEarningsMember2019-03-3100010573522019-03-310001057352us-gaap:RetainedEarningsMember2019-04-012019-06-3000010573522019-04-012019-06-300001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001057352us-gaap:CommonStockMember2019-04-012019-06-300001057352us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001057352us-gaap:CommonStockMember2019-06-300001057352us-gaap:AdditionalPaidInCapitalMember2019-06-300001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001057352us-gaap:RetainedEarningsMember2019-06-3000010573522019-06-300001057352us-gaap:RetainedEarningsMember2019-07-012019-09-300001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001057352us-gaap:CommonStockMember2019-07-012019-09-300001057352us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001057352us-gaap:CommonStockMember2019-09-300001057352us-gaap:AdditionalPaidInCapitalMember2019-09-300001057352us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001057352us-gaap:RetainedEarningsMember2019-09-3000010573522019-09-30csgp:operating_segments0001057352us-gaap:AuctionRateSecuritiesMember2020-01-012020-09-300001057352csgp:PerformanceBasedRestrictedStockMember2020-07-012020-09-300001057352csgp:PerformanceBasedRestrictedStockMember2019-07-012019-09-300001057352csgp:PerformanceBasedRestrictedStockMember2020-01-012020-09-300001057352csgp:PerformanceBasedRestrictedStockMember2019-01-012019-09-300001057352us-gaap:CostOfSalesMember2020-07-012020-09-300001057352us-gaap:CostOfSalesMember2019-07-012019-09-300001057352us-gaap:CostOfSalesMember2020-01-012020-09-300001057352us-gaap:CostOfSalesMember2019-01-012019-09-300001057352us-gaap:SellingAndMarketingExpenseMember2020-07-012020-09-300001057352us-gaap:SellingAndMarketingExpenseMember2019-07-012019-09-300001057352us-gaap:SellingAndMarketingExpenseMember2020-01-012020-09-300001057352us-gaap:SellingAndMarketingExpenseMember2019-01-012019-09-300001057352us-gaap:SoftwareDevelopmentMember2020-07-012020-09-300001057352us-gaap:SoftwareDevelopmentMember2019-07-012019-09-300001057352us-gaap:SoftwareDevelopmentMember2020-01-012020-09-300001057352us-gaap:SoftwareDevelopmentMember2019-01-012019-09-300001057352us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001057352us-gaap:GeneralAndAdministrativeExpenseMember2019-07-012019-09-300001057352us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-300001057352us-gaap:GeneralAndAdministrativeExpenseMember2019-01-012019-09-300001057352csgp:TenXMember2020-01-012020-09-300001057352srt:NorthAmericaMembercsgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMember2020-07-012020-09-300001057352csgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMembercsgp:InternationalMember2020-07-012020-09-300001057352csgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMember2020-07-012020-09-300001057352srt:NorthAmericaMembercsgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMember2019-07-012019-09-300001057352csgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMembercsgp:InternationalMember2019-07-012019-09-300001057352csgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMember2019-07-012019-09-300001057352srt:NorthAmericaMembercsgp:InformationservicesMembercsgp:InformationAndAnalyticsMember2020-07-012020-09-300001057352csgp:InformationservicesMembercsgp:InformationAndAnalyticsMembercsgp:InternationalMember2020-07-012020-09-300001057352csgp:InformationservicesMembercsgp:InformationAndAnalyticsMember2020-07-012020-09-300001057352srt:NorthAmericaMembercsgp:InformationservicesMembercsgp:InformationAndAnalyticsMember2019-07-012019-09-300001057352csgp:InformationservicesMembercsgp:InformationAndAnalyticsMembercsgp:InternationalMember2019-07-012019-09-300001057352csgp:InformationservicesMembercsgp:InformationAndAnalyticsMember2019-07-012019-09-300001057352csgp:OnlineMarketplacesMembersrt:NorthAmericaMembercsgp:MultifamilyOnlineMarketplaceMember2020-07-012020-09-300001057352csgp:OnlineMarketplacesMembercsgp:MultifamilyOnlineMarketplaceMembercsgp:InternationalMember2020-07-012020-09-300001057352csgp:OnlineMarketplacesMembercsgp:MultifamilyOnlineMarketplaceMember2020-07-012020-09-300001057352csgp:OnlineMarketplacesMembersrt:NorthAmericaMembercsgp:MultifamilyOnlineMarketplaceMember2019-07-012019-09-300001057352csgp:OnlineMarketplacesMembercsgp:MultifamilyOnlineMarketplaceMembercsgp:InternationalMember2019-07-012019-09-300001057352csgp:OnlineMarketplacesMembercsgp:MultifamilyOnlineMarketplaceMember2019-07-012019-09-300001057352csgp:OnlineMarketplacesMembersrt:NorthAmericaMembercsgp:CommercialpropertyandlandMember2020-07-012020-09-300001057352csgp:OnlineMarketplacesMembercsgp:InternationalMembercsgp:CommercialpropertyandlandMember2020-07-012020-09-300001057352csgp:OnlineMarketplacesMembercsgp:CommercialpropertyandlandMember2020-07-012020-09-300001057352csgp:OnlineMarketplacesMembersrt:NorthAmericaMembercsgp:CommercialpropertyandlandMember2019-07-012019-09-300001057352csgp:OnlineMarketplacesMembercsgp:InternationalMembercsgp:CommercialpropertyandlandMember2019-07-012019-09-300001057352csgp:OnlineMarketplacesMembercsgp:CommercialpropertyandlandMember2019-07-012019-09-300001057352srt:NorthAmericaMember2020-07-012020-09-300001057352csgp:InternationalMember2020-07-012020-09-300001057352srt:NorthAmericaMember2019-07-012019-09-300001057352csgp:InternationalMember2019-07-012019-09-300001057352srt:NorthAmericaMembercsgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMember2020-01-012020-09-300001057352csgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMembercsgp:InternationalMember2020-01-012020-09-300001057352csgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMember2020-01-012020-09-300001057352srt:NorthAmericaMembercsgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMember2019-01-012019-09-300001057352csgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMembercsgp:InternationalMember2019-01-012019-09-300001057352csgp:InformationAndAnalyticsMembercsgp:CoStarSuiteMember2019-01-012019-09-300001057352srt:NorthAmericaMembercsgp:InformationservicesMembercsgp:InformationAndAnalyticsMember2020-01-012020-09-300001057352csgp:InformationservicesMembercsgp:InformationAndAnalyticsMembercsgp:InternationalMember2020-01-012020-09-300001057352csgp:InformationservicesMembercsgp:InformationAndAnalyticsMember2020-01-012020-09-300001057352srt:NorthAmericaMembercsgp:InformationservicesMembercsgp:InformationAndAnalyticsMember2019-01-012019-09-300001057352csgp:InformationservicesMembercsgp:InformationAndAnalyticsMembercsgp:InternationalMember2019-01-012019-09-300001057352csgp:InformationservicesMembercsgp:InformationAndAnalyticsMember2019-01-012019-09-300001057352csgp:OnlineMarketplacesMembersrt:NorthAmericaMembercsgp:MultifamilyOnlineMarketplaceMember2020-01-012020-09-300001057352csgp:OnlineMarketplacesMembercsgp:MultifamilyOnlineMarketplaceMembercsgp:InternationalMember2020-01-012020-09-300001057352csgp:OnlineMarketplacesMembercsgp:MultifamilyOnlineMarketplaceMember2020-01-012020-09-300001057352csgp:OnlineMarketplacesMembersrt:NorthAmericaMembercsgp:MultifamilyOnlineMarketplaceMember2019-01-012019-09-300001057352csgp:OnlineMarketplacesMembercsgp:MultifamilyOnlineMarketplaceMembercsgp:InternationalMember2019-01-012019-09-300001057352csgp:OnlineMarketplacesMembercsgp:MultifamilyOnlineMarketplaceMember2019-01-012019-09-300001057352csgp:OnlineMarketplacesMembersrt:NorthAmericaMembercsgp:CommercialpropertyandlandMember2020-01-012020-09-300001057352csgp:OnlineMarketplacesMembercsgp:InternationalMembercsgp:CommercialpropertyandlandMember2020-01-012020-09-300001057352csgp:OnlineMarketplacesMembercsgp:CommercialpropertyandlandMember2020-01-012020-09-300001057352csgp:OnlineMarketplacesMembersrt:NorthAmericaMembercsgp:CommercialpropertyandlandMember2019-01-012019-09-300001057352csgp:OnlineMarketplacesMembercsgp:InternationalMembercsgp:CommercialpropertyandlandMember2019-01-012019-09-300001057352csgp:OnlineMarketplacesMembercsgp:CommercialpropertyandlandMember2019-01-012019-09-300001057352srt:NorthAmericaMember2020-01-012020-09-300001057352csgp:InternationalMember2020-01-012020-09-300001057352srt:NorthAmericaMember2019-01-012019-09-300001057352csgp:InternationalMember2019-01-012019-09-3000010573522020-04-012020-09-300001057352csgp:CoStarSuiteMember2019-12-310001057352csgp:InformationservicesMember2019-12-310001057352srt:MultifamilyMember2019-12-310001057352csgp:CommercialpropertyandlandMember2019-12-310001057352csgp:CoStarSuiteMember2020-01-012020-09-300001057352csgp:InformationservicesMember2020-01-012020-09-300001057352srt:MultifamilyMember2020-01-012020-09-300001057352csgp:CommercialpropertyandlandMember2020-01-012020-09-300001057352csgp:CoStarSuiteMember2020-09-300001057352csgp:InformationservicesMember2020-09-300001057352srt:MultifamilyMember2020-09-300001057352csgp:CommercialpropertyandlandMember2020-09-300001057352csgp:TenXMember2020-06-242020-06-240001057352csgp:TenXMember2020-06-240001057352csgp:TenXMemberus-gaap:CustomerRelationshipsMember2020-06-242020-06-240001057352csgp:TenXMemberus-gaap:TechnologyServiceMember2020-06-242020-06-240001057352csgp:TenXMemberus-gaap:OtherIntangibleAssetsMember2020-06-242020-06-240001057352csgp:TenXMember2020-09-300001057352csgp:RentPathMember2020-02-112020-02-110001057352csgp:RentPathMember2020-07-290001057352csgp:RentPathMember2020-09-300001057352csgp:STRIncandSTRGlobalLtdMember2019-10-220001057352srt:NorthAmericaMembercsgp:STRIncandSTRGlobalLtdMemberus-gaap:CustomerRelationshipsMember2019-10-222019-10-220001057352csgp:STRIncandSTRGlobalLtdMembercsgp:InternationalMemberus-gaap:CustomerRelationshipsMember2019-10-222019-10-220001057352srt:NorthAmericaMembercsgp:STRIncandSTRGlobalLtdMemberus-gaap:TradeNamesMember2019-10-222019-10-220001057352srt:NorthAmericaMembercsgp:STRIncandSTRGlobalLtdMemberus-gaap:OtherIntangibleAssetsMember2019-10-222019-10-220001057352csgp:STRIncandSTRGlobalLtdMembercsgp:InternationalMemberus-gaap:OtherIntangibleAssetsMember2019-10-222019-10-220001057352srt:NorthAmericaMembercsgp:STRIncandSTRGlobalLtdMember2019-10-222019-10-220001057352csgp:STRIncandSTRGlobalLtdMembercsgp:InternationalMember2019-10-222019-10-220001057352srt:NorthAmericaMembercsgp:STRIncandSTRGlobalLtdMember2019-10-220001057352csgp:STRIncandSTRGlobalLtdMembercsgp:InternationalMember2019-10-220001057352csgp:STRIncandSTRGlobalLtdMember2019-10-222019-10-220001057352csgp:OffCampusPartnersMember2019-06-122019-06-120001057352us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2020-09-300001057352us-gaap:CashEquivalentsMember2019-12-310001057352us-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2019-12-310001057352us-gaap:AuctionRateSecuritiesMember2019-12-310001057352us-gaap:FairValueInputsLevel1Memberus-gaap:AuctionRateSecuritiesMember2019-12-310001057352us-gaap:AuctionRateSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-12-310001057352us-gaap:FairValueInputsLevel3Memberus-gaap:AuctionRateSecuritiesMember2019-12-310001057352us-gaap:FairValueInputsLevel1Member2019-12-310001057352us-gaap:FairValueInputsLevel2Member2019-12-310001057352us-gaap:FairValueInputsLevel3Member2019-12-310001057352us-gaap:FairValueInputsLevel2Member2020-09-300001057352srt:MinimumMember2020-09-300001057352srt:MaximumMember2020-09-300001057352csgp:CostofRevenuesMember2020-07-012020-09-300001057352csgp:CostofRevenuesMember2019-07-012019-09-300001057352csgp:CostofRevenuesMember2020-01-012020-09-300001057352csgp:CostofRevenuesMember2019-01-012019-09-30xbrli:pure0001057352srt:NorthAmericaMember2018-12-310001057352csgp:InternationalMember2018-12-310001057352srt:NorthAmericaMember2020-01-012020-03-310001057352csgp:InternationalMember2020-01-012020-03-310001057352srt:NorthAmericaMember2019-12-310001057352csgp:InternationalMember2019-12-310001057352srt:NorthAmericaMember2020-01-012020-09-300001057352csgp:InternationalMember2020-01-012020-09-300001057352srt:NorthAmericaMember2020-09-300001057352csgp:InternationalMember2020-09-300001057352csgp:CozyServicesLtdMember2020-01-012020-03-310001057352csgp:CozyServicesLtdMember2019-12-310001057352csgp:TenXMembersrt:NorthAmericaMember2020-07-012020-09-300001057352csgp:InternationalMembercsgp:TenXMember2020-04-012020-06-300001057352us-gaap:DevelopedTechnologyRightsMember2020-09-300001057352us-gaap:DevelopedTechnologyRightsMember2019-12-310001057352us-gaap:DevelopedTechnologyRightsMember2020-01-012020-09-300001057352us-gaap:CustomerContractsMember2020-09-300001057352us-gaap:CustomerContractsMember2019-12-310001057352us-gaap:CustomerContractsMember2020-01-012020-09-300001057352us-gaap:TradeNamesMember2020-09-300001057352us-gaap:TradeNamesMember2019-12-310001057352us-gaap:TradeNamesMember2020-01-012020-09-300001057352csgp:A2800SeniorNotesMember2020-07-010001057352csgp:A2800SeniorNotesMember2020-09-300001057352csgp:A2800SeniorNotesMember2019-12-310001057352csgp:A2020CreditAgreementMember2020-09-300001057352csgp:A2020CreditAgreementMember2019-12-310001057352csgp:A2800SeniorNotesMember2020-07-012020-07-010001057352csgp:RevolvingLoansAndLettersOfCreditMembercsgp:A2020CreditAgreementMember2020-07-010001057352csgp:RevolvingLoansAndLettersOfCreditMembercsgp:A2020CreditAgreementMember2020-07-012020-07-010001057352us-gaap:LetterOfCreditMembercsgp:A2020CreditAgreementMember2020-07-010001057352srt:MinimumMembercsgp:RevolvingLoansAndLettersOfCreditMembercsgp:A2020CreditAgreementMember2020-07-012020-07-010001057352srt:MaximumMembercsgp:RevolvingLoansAndLettersOfCreditMembercsgp:A2020CreditAgreementMember2020-07-012020-07-010001057352us-gaap:LetterOfCreditMembersrt:MinimumMembercsgp:A2020CreditAgreementMembercsgp:AlternateBaseRateMember2020-07-012020-07-010001057352us-gaap:LetterOfCreditMembersrt:MaximumMembercsgp:A2020CreditAgreementMembercsgp:AlternateBaseRateMember2020-07-012020-07-010001057352us-gaap:LetterOfCreditMembercsgp:A2020CreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-07-012020-07-010001057352us-gaap:LetterOfCreditMembersrt:MinimumMembercsgp:A2020CreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-07-012020-07-010001057352us-gaap:LetterOfCreditMembersrt:MaximumMembercsgp:A2020CreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-07-012020-07-010001057352csgp:A2020CreditAgreementMember2017-10-192017-10-190001057352us-gaap:LetterOfCreditMember2020-09-300001057352us-gaap:BorrowingsMember2020-07-012020-09-300001057352us-gaap:BorrowingsMember2019-07-012019-09-300001057352us-gaap:BorrowingsMember2020-01-012020-09-300001057352us-gaap:BorrowingsMember2019-01-012019-09-300001057352csgp:A2020CreditAgreementMemberus-gaap:OtherAssetsMember2020-09-300001057352csgp:A2017AgreementMemberus-gaap:OtherAssetsMember2019-12-310001057352srt:NorthAmericaMember2020-07-012020-09-300001057352srt:NorthAmericaMember2019-07-012019-09-300001057352srt:NorthAmericaMember2019-01-012019-09-300001057352csgp:InternationalMember2020-07-012020-09-300001057352csgp:InternationalMember2019-07-012019-09-300001057352csgp:InternationalMember2019-01-012019-09-300001057352us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2020-09-300001057352us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2019-12-310001057352us-gaap:OperatingSegmentsMembercsgp:InternationalMember2020-09-300001057352us-gaap:OperatingSegmentsMembercsgp:InternationalMember2019-12-310001057352csgp:PublicOfferingMember2020-05-282020-05-280001057352csgp:PublicOfferingMember2020-05-28

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

OR
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
 csgp-20200930_g1.jpg
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,DC20005
(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 classTrading SymbolName of each exchange on which registered
Common Stock ($0.01 par value)CSGPNasdaq 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. 
  
  
  
Item 2. 
Item 3. 
Item 4. 
PART II OTHER INFORMATION
Item 1. 
Item 1A. 
Item 2. 
Item 3. 
Item 4. 
Item 5. 
Item 6. 

3


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,
 2020201920202019
Revenues$425,620 $352,808 $1,214,626 $1,024,993 
Cost of revenues77,865 71,172 230,814 214,243 
Gross profit347,755 281,636 983,812 810,750 
Operating expenses:    
Selling and marketing (excluding customer base amortization)146,634 101,582 402,202 308,751 
Software development40,732 32,639 121,343 89,022 
General and administrative65,322 45,530 181,598 127,943 
Customer base amortization18,258 7,616 44,677 22,473 
 270,946 187,367 749,820 548,189 
Income from operations76,809 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 taxes68,934 98,923 224,539 276,644 
Income tax expense10,748 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 - basic39,159 36,333 37,718 36,293 
Weighted-average outstanding shares - diluted39,401 36,652 37,970 36,615 

See accompanying notes.

4


COSTAR GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)

Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Net income$58,186 $78,619 $191,339 $227,036 
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment7,535 (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.

5


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 receivable119,219 96,788 
Less: Allowance for credit losses(14,205)(4,548)
Accounts receivable, net105,014 92,240 
Prepaid expenses and other current assets34,414 36,194 
Total current assets4,007,233 1,199,165 
Long-term investments 10,070 
Deferred income taxes, net3,891 5,408 
Property and equipment, net127,280 107,529 
Lease right-of-use assets106,320 115,084 
Goodwill2,015,079 1,882,020 
Intangible assets, net414,608 421,196 
Deferred commission costs, net93,006 89,374 
Deposits and other assets15,102 9,232 
Income tax receivable14,806 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 commissions63,341 53,087 
Accrued expenses54,753 38,680 
Income taxes payable256 10,705 
Lease liabilities31,494 29,670 
Deferred revenue75,001 67,274 
Total current liabilities245,111 207,056 
Long-term debt, net986,413  
Deferred income taxes, net97,022 87,096 
Income taxes payable21,114 20,521 
Lease and other long-term liabilities129,607 133,720 
Total liabilities1,479,267 448,393 
Total stockholders' equity$5,318,058 $3,405,593 
Total liabilities and stockholders’ equity$6,797,325 $3,853,986 
See accompanying notes.
6


COSTAR GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(in thousands)
(unaudited)
Common StockAdditional
Paid-In Capital
Accumulated
Other
Comprehensive Loss
Retained
Earnings
Total
Stockholders’
Equity
 SharesAmount
Balance at December 31, 201936,668 $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 options41 1 9,232 — — 9,233 
Restricted stock grants83 1 (1)— — — 
Restricted stock grants surrendered(56)(1)(30,144)— — (30,145)
Stock-based compensation expense— — 15,006 — — 15,006 
Employee stock purchase plan4 — 2,550 — — 2,550 
Balance at March 31, 202036,740 $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 options11 — 2,924 — — 2,924 
Restricted stock grants11 — — — — — 
Restricted stock grants surrendered(17)— (3,509)— — (3,509)
Stock-based compensation expense— — 8,609 — — 8,609 
Employee stock purchase plan4 — 2,292 — — 2,292 
Stock issued for equity offerings, net of transaction costs2,634 26 1,689,945 — — 1,689,971 
Balance at June 30, 202039,383 $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 options44 — 9,714 — — 9,714 
Restricted stock grants3 — — — — — 
Restricted stock grants surrendered(3)— (398)— — (398)
Stock-based compensation expense— — 16,542 — — 16,542 
Employee stock purchase plan3 — 2,158 — — 2,158 
Balance at September 30, 202039,430 $393 $4,198,258 $(12,406)$1,131,813 $5,318,058 
See accompanying notes.
7


COSTAR GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(in thousands)
(unaudited)

Common StockAdditional
Paid-In Capital
Accumulated
Other
Comprehensive Loss
Retained
Earnings
Total
Stockholders’
Equity
 SharesAmount
Balance at December 31, 201836,446 $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, 201936,446 $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 options79 1 10,637 — — 10,638 
Restricted stock grants132 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 plan4 — 1,582 — — 1,582 
Balance at March 31, 201936,618 $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 options15  3,001 — — 3,001 
Restricted stock grants4 — — — — — 
Restricted stock grants surrendered(17) (5,546)— — (5,546)
Stock-based compensation expense— — 13,706 — — 13,706 
Employee stock purchase plan4 — 1,815 — — 1,815 
Balance at June 30, 201936,624 $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 options20  4,697 — — 4,697 
Restricted stock grants8 — — — — — 
Restricted stock grants surrendered(5) (815)— — (815)
Stock-based compensation expense— — 13,002 — — 13,002 
Employee stock purchase plan3 — 1,753 — — 1,753 
Balance at September 30, 201936,650 $366 $2,460,489 $(14,236)$852,547 $3,299,166 
See accompanying notes.
8


COSTAR GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 Nine Months Ended
September 30,
 20202019
Operating activities:  
Net income$191,339 $227,036 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization83,911 57,235 
Amortization of deferred commissions costs45,017 39,189 
Amortization of senior notes discount and issuance costs1,082 657 
Non-cash lease expense18,801 16,369 
Stock-based compensation expense40,783 38,984 
Deferred income taxes, net6,812 13,288 
Credit loss expense21,395 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 assets4,145 (754)
Deferred commissions(48,704)(48,791)
Other assets1,521 (43)
Accounts payable and other liabilities47,341 7,664 
Lease liabilities(21,247)(19,787)
Deferred revenue7,123 12,525 
Net cash provided by operating activities355,338 350,017 
Investing activities:  
Proceeds from sale and settlement of investments10,259  
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 debt1,744,210  
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 costs1,689,971  
Proceeds from exercise of stock options and employee stock purchase plan28,169 22,970 
Other financing activities(1,650)(123)
Net cash provided by (used in) financing activities2,665,902 (2,193)
Effect of foreign currency exchange rates on cash and cash equivalents(286)(738)
Net increase in cash, cash equivalents and restricted cash2,797,074 289,203 
Cash, cash equivalents and restricted cash at the beginning of period1,070,731 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.
9


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
10


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.
11


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.


12


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:
2020201920202019
 
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,
2020201920202019
Performance-based restricted stock awards79 60 79 90 
Anti-dilutive securities37 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