co-starring group reported revenue of $656 million in the first quarter of 2024, an increase of 12% from $584 million in the first quarter of 2023.
However, the company’s net income was only $7 million, significantly lower than the previous quarter. This decline can be partially attributed to its recent acquisition of a 3D scanning company. matter portas well as the associated costs. homes.com Marketing campaign during Super Bowl LVIII broadcast in February.
On Monday, CoStar CEO Andy Florance announced that the company will purchase Matterport’s outstanding shares for $5.50 each, for a total consideration of $2.1 billion. Under the terms of the transaction, shareholders will receive $2.75 in cash and $2.75 in CoStar Group stock per share. During CoStar’s earnings call on Tuesday, Florance argued that consumers and advertisers prefer real estate portals with digital twins.
“We are adding Matterport as one of the benefits of Homes.com membership,” Florance said. “At Homes.com, he believes that by adding a 3D digital twin, he will be able to draw more leads, increase customer satisfaction, improve renewal rates, increase sales, and further drive traffic to the site.” .”
Matterport’s integration with Homes.com allows homebuyers to browse properties online and allows agents to deliver even more value to their customers.
Florance also discussed the successful launch of Homes.com membership monetization on February 11th. In the first quarter, Homes.com’s sales team generated approximately $40 million in net new reservations.
“This is the strongest sales launch in the company’s history and raises our full-year 2024 sales and earnings forecast for Homes.com,” Florence said.
In March, Homes.com reached 156 million unique monthly visitors, according to . google analyticsintensifying the battle for listing portal supremacy with Homes.com. Jiro.
“We believe Homes.com is now one of the two highest-trafficked housing market portals in the United States,” Florance said.
In the first quarter, CoStar Group’s overall revenue increased by 12% year-on-year; apartments.com Revenue growth exceeded 20% for five consecutive quarters; Co-star We saw an 11% revenue increase. Apartments.com and CoStar both surpassed his $250 million in revenue in the first quarter.
Mr. Florence expressed confidence in CoStar’s business model, especially in light of the recent Commission litigation settlement. National Association of Realtors. He credits his Homes.com with success. That’s because Homes.com focuses on selling homes and building brands for both agents and brokers. Florence criticized the lead conversion model used by other listing portals, saying it can be “stressful.”
“We believe portals that rely on lead conversion models may be stressed due to recent legal settlements in the real estate industry,” Florance said. “We are increasingly confident in our ability to build the No. 1 residential real estate market” in terms of traffic, revenue and profitability in the coming years. ”
