*New Synopsis Company Podcast Released* CoStar Group: From Basement to Billion Dollar Real Estate Authority
*New Synopsis Company Podcast Released* CoStar Group: From Basement to Billion Dollar Real Estate Authority
The Synopsis released their latest in-depth company podcast episode on CoStar Group ($CSGP)
Welcome to Speedwell Research’s Newsletter. We write about business and investing. Our paid research product can be found at SpeedwellResearch.com. You can learn more about us here.
This is a new company episode podcast announcement.
We are announcing the release of our latest company deep dive episode on CoStar Group. At 3 hours and 16 minutes, it is our most in-depth episode yet! We now have in-depth company episodes on Constellation Software, Floor & Decor, Meta, Copart, Evolution, Porsche AG, Coupang, Etsy, RH, and Dream Finders Homes! We research each company for hundreds of hours prior to recording, so we can confidently say these are the most comprehensive podcasts you will find on each of these companies!
Find it on Apple, Spotify, or wherever else you listen to your podcasts.
Company Background
CoStar Group is the leading provider of real estate data & analytics and operates several leading real estate marketplaces. With a ~$30bn market cap today, they have compounded shareholder value at a 18% CAGR since 1998! Over the past decade they have compounded revenues at 17% annually. Led by Founder Andy Florance since 1987, they are one of the few companies that have succesfully integrated several large acquistions and efficiently run multiple different business lines. In addition to CoStar, they own Apartments.com, LoopNet, BizBuySell, Land.com, and Homes.com, among others!
CoStar Group Episode Notes
In this company episode on CoStar Group, Speedwell Research draws on their extensive research report to cover everything from Founder Andy Florance's entrance into the real estate data space from his Princeton dorm room to becoming the dominant real estate data & analytics provider. Florance not only beat out competition in the commerical data space, but succesfully entered several new markets including taking a fledging apartments listing platform and driving it to the #1 spot.
Today CoStar is looking to do it again with Homes.com, while still aggresviely expanding their growing array of internet real estate businesses. Learn the inner workings of the real estate data and markeplace business, as well as how a company succesfully expanded far beyond their original core product and continues to find new markets to fight after. We hope you enjoy!
Show Notes
Section 1: History and Background
(2:45) — High Level CoStar Overview
(6:15) — Founding History Starts
(16:52) — IPOing
(26:54) — 2008 Financial Crisis
(35:40) — Lawsuits and LoopNet
(49:44) — Apartments.com acquisition
(59:46) — Xcelligent Lawsuit and the Last of the Direct Competitors
(1:04:56) — Closing Out History and S&P 500 Addition
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Section 2: The Business
(1:07:35) — Business Section Overview
(1:21:30) — Multifamily and Apartments.com Business
(1:29:00) — Residential Overview
(1:30:43) — Loopnet Overview
(1:34:07) — Other Businesses/ Wrapping Up Business Section
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Section 3: TAM and Industry
(1:43:13) — TAM Overview
(1:50:29) — How the Residential Industry Works
(2:01:15) — Multifamily Industry
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Section 4: Competition
(2:08:53) — CoStar Competitors
(2:15:35) — Why Does CoStar Win
(2:23:48) — Why LoopNet Wins
(2:25:30) — Zillow and Apartments.com Competition
(2:34:03) — Homes.com vs Zillow
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Section 5: Growth Opportunites, Capital Allocation, and Valuation
(2:40:45) — International
(2:46:38) — ROIC, Free Cash Flow,
(2:54:06) — Dilution and Capital Allocation
(3:00:33) — Valuation
(3:05:45) — Risks
(3:10:50) — Bull / Bear Summary
(3:15:50) — Conclusion
The Synopsis Podcast Links:
We now have company episodes on Constellation Software, Floor & Decor, Meta, Copart, Evolution, Porsche AG, Coupang, Etsy, RH, Dream Finders Homes, and CoStar Group. Just look for the episodes with “Company.” at the begining of the title.
For more on CoStar Group, you can purchase our extensive research report, or become a Speedwell Member to gain access to all of our content.
Digital tools, probably soon more and more AI powered will become fundamentally important to anyone working, investing and using real estate.
I believe we will see a future where companies that find a way to keep the tools intuitive and use a human based approach to use and functionality will be the clear market leader.
If demographic expectations are correct, there will come a time where the majority of the market will be operated by investors large and small and the winners in the space regular humans can afford will be anybody who has the best data put together in the most comprehensive and digestable way.