CoStar Group, Inc. (CSGP) has reported a 28.63 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $29.57 million, or $0.91 a share in the quarter, compared with $22.99 million, or $0.71 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $41.85 million, or $1.29 a share compared with $35.45 million or $1.10 a share, a year ago.
Revenue during the quarter grew 13.11 percent to $218.31 million from $193.01 million in the previous year period. Gross margin for the quarter expanded 230 basis points over the previous year period to 78.92 percent. Total expenses were 78.52 percent of quarterly revenues, down from 81.60 percent for the same period last year. This has led to an improvement of 307 basis points in operating margin to 21.48 percent.
Operating income for the quarter was $46.89 million, compared with $35.52 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $75.16 million compared with $65.13 million in the prior year period. At the same time, adjusted EBITDA margin improved 68 basis points in the quarter to 34.43 percent from 33.74 percent in the last year period.
"2016 was a very strong year for CoStar Group,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. "For the full year of 2016, we added $126 million of revenue and generated $112 million of net new bookings. We showed the strong margin potential of the business increasing EBITDA $125 million year-over-year. We believe we will exceed our goal of $1 billion in revenue in 2018 and remain committed to achieving 40% margin in the fourth quarter of 2018."
For financial year 2017, CoStar Group, Inc. forecasts revenue to be in the range of $935 million to $945 million. The company projects net income to be in the range of $92 million to $96 million and expects adjusted net income to be in the range of $137.10 million to $140.50 million. It expects diluted earnings per share to be in the range of $2.80 to $2.93 and expects diluted earnings per share to be in the range of $4.18 to $4.28 on adjusted basis.
For the first-quarter, CoStar Group, Inc. forecasts revenue to be in the range of $223 million to $225 million. The company projects net income to be in the range of $16.40 million to $18.70 million and expects adjusted net income to be in the range of $29.70 million to $31.50 million. It expects diluted earnings per share to be in the range of $0.51 to $0.58. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.92 to $0.97.
Debt comes down marginally
CoStar Group, Inc. has recorded a decline in total debt over the last one year. It stood at $338.34 million as on Dec. 31, 2016, down 4.72 percent or $16.77 million from $355.11 million on Dec. 31, 2015. Interest coverage ratio improved to 18.36 for the quarter from 15.11 for the same period last year.
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