CoStar Group Inc (NASDAQ: CSGP) stock fell 2.2% on October 24th, 2018 (as of 12:03 PM GMT-4; Source: Google finance) on lower than expected performance. Adjusted revenue growth was 23 percent to $306 million in the third quarter of FY 18. Meanwhile, CSGP acquired Realla Limited, the UK’s largest public portal specializing in commercial property. It’s got the largest collection of publicly available property listings in the United Kingdom.
To date, the company has worked through approximately a quarter of the initial 100,000 leads the company identified and have seen approximately 11,200 conversions. The company have now reached $64 million in annualized revenue from this conversion list. Earlier this quarter, the company had identified an additional 30,000 commercial real estate professional leads from LoopNet that were previously not on the active lead lists.
Apartments.com grew 45% year-over-year in the third quarter of 2018, as CSGP continue to expand the leadership position in this space. The company multifamily annual revenue run rate is now $420 million and the company expect to continue to achieve solid organic revenue growth in the fourth quarter and through all of 2019. The company’s profitability continued to expand in the third quarter of 2018. Net income increased 72% year-over-year in the third quarter to $59 million. The company generated the best EBITDA quarter in The company history as EBITDA jumped 42% sequentially in the third quarter of 2018 versus the second quarter of this year.
The company’s adjusted EBITDA was $110 million in the quarter, up 29% over the prior quarter, reaching a 36% adjusted EBITDA margin, so close to 40%.
Companywide net new bookings were 40 million in the third quarter of 2018, an increase of 16% year-over-year, over the $34 million we generated in the third quarter of 2017. While net new bookings are up 16%, the number understates the true sales productivity achieved in the quarter.
During the quarter and for most of the year, the apartments.com sales force, which is about half the sales force, spent most of their time, vast majority of their time, transitioning over 7,100 new ForRent customers the apartments.com network
In the third quarter of 2018, the company has generated the best traffic quarter ever with the most unique visitors and leads in a quarter. The company’s leads, which have proven to be the highest quality leads in the industry are up 50% year-over-year, which translates into more leases and a better return on investment for the advertisers on the apartments.com network.