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 and 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!

Company Description: Real estate data & analytics provider and operator of real estate marketplace.

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More details on our CoStar Group Report here.

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Show Notes

Section 1: History and Background

(0:00) — Intro

(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

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

Section 3: TAM and Industry

(1:43:13) — TAM Overview

(1:50:29) — How the Residential Industry Works

(2:01:15) — Multifamily Industry

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

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

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Purchase the full CoStar Group Report here.

More details on our CoStar Group Report here.

Purchase a Speedwell Membership to gain access to all Reports here.

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Email us at info@speedwellresearch.com for any questions, comments, or feedback

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Disclaimer

Nothing in this podcast is investment advice nor should be construed as such. At the time of publishing, one or more contributors to the podcast had a position in Costar Group. Furthermore, accounts one or more contributors advise on may also have a position in CoStar Group. This may change without notice. Please see our full disclaimers here: https://speedwellresearch.com/disclaimer/

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