WASHINGTON, DC–Three weeks ago CoStar Group's database was integrated with its listing service, LoopNet. LoopNet has been under CoStar ownership since 2012; during that time, however, they've maintained two separate and distinct databases.
In the first twelve days of the two databases' integration, CoStar closed more than 500 deals, according to a comment by CoStar CEO Andrew C. Florance in the company's earnings release. He said:
Beginning in early October, our sales force hit the ground running with our focused cross-selling campaign to convert LoopNet information users to CoStar Suite and sell more paid advertising on LoopNet….The response from our sales teams, clients, and prospects has been overwhelmingly positive. We believe this will ultimately result in significant revenue opportunities for the next several years.
He also noted that:
Our marketplace businesses are performing extremely well as we achieved year-over-year revenue growth in the third quarter of 25% in multifamily and 21% in commercial property and land.
The reason why CoStar kept the two databases separate was that they address very distinct audiences. “At its heart, LoopNet is a marketing platform that is primarily intended to reach an audience of end users including smaller investors, and real estate professionals will market their listings to that audience through LoopNet,” CoStar's Rob Cain told GlobeSt.com in an earlier interview. By contrast, CoStar's subscriber base is comprised “almost entirely of commercial real estate professionals: brokers, appraisers, larger owner/investors, lenders, etc., who want higher-quality verified research data.”
“As the years went on following the merger, we also recognized that we were missing some tremendous opportunities to bring higher quality and more timely data to our information customers, people subscribing to CoStar,” he said.
Overall revenue for the third quarter for CoStar was $248 million, an increase of 16% over revenue of $213 million in the third quarter of 2016. Net income for the third quarter of 2017 increased to $34 million or $1.04 per diluted share compared to $23 million in the third quarter of 2016, an increase of 48%.
WASHINGTON, DC–Three weeks ago CoStar Group's database was integrated with its listing service, LoopNet. LoopNet has been under CoStar ownership since 2012; during that time, however, they've maintained two separate and distinct databases.
In the first twelve days of the two databases' integration, CoStar closed more than 500 deals, according to a comment by CoStar CEO Andrew C. Florance in the company's earnings release. He said:
Beginning in early October, our sales force hit the ground running with our focused cross-selling campaign to convert LoopNet information users to CoStar Suite and sell more paid advertising on LoopNet….The response from our sales teams, clients, and prospects has been overwhelmingly positive. We believe this will ultimately result in significant revenue opportunities for the next several years.
He also noted that:
Our marketplace businesses are performing extremely well as we achieved year-over-year revenue growth in the third quarter of 25% in multifamily and 21% in commercial property and land.
The reason why CoStar kept the two databases separate was that they address very distinct audiences. “At its heart, LoopNet is a marketing platform that is primarily intended to reach an audience of end users including smaller investors, and real estate professionals will market their listings to that audience through LoopNet,” CoStar's Rob Cain told GlobeSt.com in an earlier interview. By contrast, CoStar's subscriber base is comprised “almost entirely of commercial real estate professionals: brokers, appraisers, larger owner/investors, lenders, etc., who want higher-quality verified research data.”
“As the years went on following the merger, we also recognized that we were missing some tremendous opportunities to bring higher quality and more timely data to our information customers, people subscribing to CoStar,” he said.
Overall revenue for the third quarter for CoStar was $248 million, an increase of 16% over revenue of $213 million in the third quarter of 2016. Net income for the third quarter of 2017 increased to $34 million or $1.04 per diluted share compared to $23 million in the third quarter of 2016, an increase of 48%.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
