PRESS RELEASE DETAIL


Feb 25, 2015

CoStar Group Grows Annual Revenue 31% and Annual EBITDA 61%

WASHINGTON, Feb. 25, 2015 - CoStar Group, Inc. (Nasdaq:CSGP), the leading provider of commercial real estate information, analytics and online marketplaces, announced today that revenue for the year ended December 31, 2014 was $575.9 million, an increase of 31% over revenue of $440.9 million for the full year of 2013. Revenue for the fourth quarter of 2014 grew to $156.1 million versus $115.6 million in the fourth quarter of 2013, which represents an increase of 35% year-over-year.

WASHINGTON, Feb. 25, 2015 -- CoStar Group, Inc. (Nasdaq:CSGP), the leading provider of commercial real estate information, analytics and online marketplaces, announced today that revenue for the year ended December 31, 2014 was $575.9 million, an increase of 31% over revenue of $440.9 million for the full year of 2013. Revenue for the fourth quarter of 2014 grew to $156.1 million versus $115.6 million in the fourth quarter of 2013, which represents an increase of 35% year-over-year.

EBITDA for the year ended December 31, 2014 was $151.3 million, which is an increase of 61% over EBITDA of $94.2 million for the full year of 2013. EBITDA in the fourth quarter of 2014 increased to $43.0 million compared to $31.5 million in the fourth quarter of 2013, which represents an increase of $11.5 million or 36% year-over-year.

"2014 was an exceptional year for CoStar Group," said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. "In 2014, we increased annual revenue by $135 million and generated annual EBITDA of over $151 million. Our investment in expanding the sales force has really taken hold. In the fourth quarter of 2014, we achieved our highest annualized net new sales of $17.3 million. Annualized net new sales for CoStar information services grew 36% sequentially over the third quarter of 2014 and 26% year-over-year. I'm also pleased that the LoopNet core marketplace continues to thrive, having achieved a 20% increase in revenue year-over-year."

Florance added, "We launched the completely new Apartments.com site ten days ago to an incredibly positive reaction from both customers and renters. The site has dramatically more listings, vastly improved search tools and user experience, and state of the art search engine optimization (SEO). We are very pleased to report that we have seen a huge surge in organic traffic since the launch. For the important SEO keywords we track, 336 have now moved up into the top five positions in Google for a total of 1,407 keywords in the top five organic positions, or 47% more than our second closest competitor."
 

Year 2013-2014 Quarterly Results - Unaudited
(in millions, except per share data)
  2013 2014
  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
                 
Revenues $104.0 $109.0 $112.3 $115.6 $119.1 $147.7 $153.1 $156.1
EBITDA 7.6 25.3 29.8 31.5 27.0 37.6 43.7 43.0
Net income (loss) (2.4) 8.3 11.1 12.8 9.7 8.2 13.0 13.9
Net income (loss) per share - diluted (0.09) 0.29 0.39 0.45 0.34 0.28 0.40 0.43
Weighted average outstanding shares - diluted 27.4 28.2 28.3 28.4 28.8 29.5 32.1 32.1
                 
Adjusted EBITDA 25.7 32.6 37.7 40.8 37.0 45.3 51.8 54.3
Non-GAAP Net Income 13.0 17.2 20.2 22.2 19.8 23.5 27.9 29.8
Non-GAAP Net Income per share - diluted 0.47 0.61 0.71 0.78 0.69 0.80 0.87 0.93

 
Net income for the year ended December 31, 2014 was $44.9 million or $1.46 per diluted share, which represents an increase of 51% over net income of $29.7 million or $1.05 per diluted share for the full year of 2013. Net income in the fourth quarter of 2014 was $13.9 million or $0.43 per diluted share, which represents an increase of $1.1 million or 9% year-over-year.

Non-GAAP net income (defined below) for the year ended December 31, 2014 was $101.0 million or $3.30 per diluted share, which represents an increase of 39% over non-GAAP net income of $72.6 million or $2.57 per diluted share for the full year of 2013. Non-GAAP net income in the fourth quarter of 2014 was $29.8 million or $0.93 per diluted share, compared to $22.2 million or $0.78 per diluted share in the fourth quarter of 2013.

Adjusted EBITDA (which excludes stock-based compensation and other items as defined below) for the year ended December 31, 2014 was $188.5 million, up $51.7 million or 38% from $136.8 million for the full year of 2013. Adjusted EBITDA was $54.3 million for the fourth quarter of 2014 versus $40.8 million in the fourth quarter of 2013, which is an increase of 33% year-over-year. 

As of December 31, 2014, the Company had approximately $544.2 million in cash, cash equivalents and long-term investments, which is an increase of $36.9 million since September 30, 2014. Short and long-term debt outstanding totaled approximately $385.0 million as of December 31, 2014.

 
2015 Outlook

"We finished 2014 on a high note with strong fourth quarter and full-year financial results, significant progress integrating Apartments.com and steady growth in sales and margins enabling continued investment for future growth," stated Brian J. Radecki, Chief Financial Officer of CoStar Group. "We are looking forward to a productive 2015 in which we expect we will benefit from new product initiatives in CoStar information services, continued cross-selling with LoopNet and the relaunch of Apartments.com."

The company is reaffirming the forward-looking guidance released on Tuesday, February 17, 2015. These previously released outlook ranges already incorporated the Company's fourth quarter 2014 results as well as expected 2015 investments in marketing and research. For the full year of 2015 the Company expects revenue of approximately $655 million to $660 million and approximately $157 million to $159 million for the first quarter of 2015. The Company expects non-GAAP net income per diluted share (defined below) in a range of $1.95 to $2.05 for the full year of 2015 and approximately $0.18 to $0.22 for the first quarter of 2015.

The preceding forward-looking statements reflect CoStar's expectations as of February 25, 2015, including forward-looking non-GAAP financial measures on a consolidated basis. We are not able to forecast with certainty whether or when certain events, such as the exact amounts or timing of investments, transition, de-emphasis or discontinuation of services, acquisition-related costs, restructuring, settlements or impairments will occur in any given quarter. Given the risk factors, uncertainties and assumptions discussed above, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.

Reconciliation of non-GAAP net income, EBITDA, adjusted EBITDA and all of the disclosed non-GAAP financial measures to their GAAP basis results are shown in detail below, along with definitions for those terms.

 
Non-GAAP Financial Measures

For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company's financial condition and results of operations, please refer to the Company's latest periodic report.

EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before (i) interest income (expense), (ii) provision for income taxes, and (iii) depreciation and amortization.

Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before (i) stock-based compensation expense, (ii) acquisition and integration related costs, (iii) restructuring charges and related costs, and (iv) settlements and impairments incurred outside the Company's normal business operations.

Non-GAAP net income is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before (i) purchase amortization and other related costs, (ii) stock-based compensation expense, (iii) acquisition and integration related costs, (iv) purchase accounting adjustments, (v) restructuring charges and related costs, and (vi) settlements and impairments. From this figure, we then subtract an assumed provision for income taxes to arrive at non-GAAP net income. We assume a 38% tax rate in order to approximate our long-term effective corporate tax rate.   

Non-GAAP net income per diluted share (also referred to as non-GAAP EPS) is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share.

 
Earnings Conference Call

Management will conduct a conference call at 11:00 AM ET on Thursday, February 26, 2015 to discuss earnings results for the fourth quarter of 2014 and the Company's outlook. The audio portion of the conference call will be broadcast live over the Internet at http://www.CoStargroup.com/investors.aspx.  To join the conference call by telephone, please dial (800) 230-1059 (from the United States and Canada) or (612) 234-9960 (from all other countries) and refer to conference code 352633. An audio recording of the conference call will be available for replay approximately one hour after the call's completion and will remain available for a period of time following the call. To access the recorded conference call, please dial (800) 475-6701 (from the U.S. and Canada) or (320) 365-3844 (from all other countries) using access code 352633. The webcast replay will also be available in the Investors section of CoStar Group's website for a period of time following the call.
 

CoStar Group, Inc.
Condensed Consolidated Statements of Operations-Unaudited
(in thousands, except per share data)
         
  For the Three Months For the Twelve Months
  Ended December 31, Ended December 31,
  2014 2013 2014 2013
         
         
Revenues  $156,096  $ 115,610  $575,936  $ 440,943
Cost of revenues 42,923 31,754 156,979 129,185
Gross margin 113,173 83,856 418,957 311,758
         
Operating expenses:        
Selling and marketing 41,003 24,569 150,305 98,708
Software development 13,705 11,605 55,426 46,757
General and administrative 27,381 22,499 103,916 96,956
Purchase amortization 7,736 3,484 28,432 15,183
  89,825 62,157 338,079 257,604
         
Income from operations 23,348 21,699 80,878 54,154
Interest and other income 271 87 516 326
Interest and other expense (2,415) (1,694) (10,481) (6,943)
Income before income taxes 21,204 20,092 70,913 47,537
Income tax expense, net 7,281 7,293 26,044 17,803
Net income  $ 13,923  $ 12,799  $ 44,869  $ 29,734
         
Net income per share - basic  $ 0.44  $ 0.46  $ 1.48  $ 1.07
Net income per share - diluted  $ 0.43  $ 0.45  $ 1.46  $ 1.05
         
Weighted average outstanding shares - basic 31,761 27,857 30,215 27,670
Weighted average outstanding shares - diluted 32,142 28,438 30,641 28,212
         
CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures-Unaudited
(in thousands, except per share data)
         
         
Reconciliation of Net Income to Non-GAAP Net Income        
         
  For the Three Months For The Twelve Months
  Ended December 31, Ended December 31,
  2014 2013 2014 2013
         
Net income  $ 13,923  $ 12,799  $ 44,869  $ 29,734
Income tax expense, net 7,281 7,293 26,044 17,803
Income before income taxes  21,204  20,092  70,913  47,537
Purchase amortization and other related costs  15,479  6,360  54,722  27,066
Stock-based compensation expense  7,361  9,279  28,267  41,549
Acquisition and integration related costs  624  --  3,802  638
Restructuring and related costs  1,976  --  1,976  362
Settlements and impairments  1,374  --  3,173  --
Non-GAAP income before income taxes  48,018  35,731  162,853  117,152
Assumed rate for income tax expense, net * 38% 38% 38% 38%
Assumed provision for income tax expense, net  (18,247)  (13,578)  (61,885)  (44,518)
Non-GAAP net income  $ 29,771  $ 22,153  $ 100,968  $ 72,634
         
Net income per share - diluted  $ 0.43  $ 0.45  $ 1.46  $ 1.05
Non-GAAP net income per share - diluted  $ 0.93  $ 0.78  $ 3.30  $ 2.57
         
Weighted average outstanding shares - diluted  32,142  28,438  30,641  28,212
         
* A 38% tax rate is assumed in order to approximate the Company's long-term effective corporate tax rate.
         
         
Reconciliation of Net Income to EBITDA and Adjusted EBITDA        
         
  For the Three Months For The Twelve Months
  Ended December 31, Ended December 31,
  2014 2013 2014 2013
         
Net income  $ 13,923  $ 12,799  $ 44,869  $ 29,734
Purchase amortization in cost of revenues 7,743 2,876 26,290 11,883
Purchase amortization in operating expenses 7,736 3,484 28,432 15,183
Depreciation and other amortization 4,160 3,461 15,650 12,992
Interest income (271) (87) (516) (326)
Interest expense 2,415 1,694 10,481 6,943
Income tax expense, net 7,281 7,293 26,044 17,803
EBITDA  $ 42,987  $ 31,520  $ 151,250  $ 94,212
Stock-based compensation expense 7,361 9,279 28,267 41,549
Acquisition and integration related costs  624  --  3,802  638
Restructuring and related costs  1,976  --  1,976  362
Settlements and impairments  1,374  --  3,173  --
Adjusted EBITDA  $ 54,322  $ 40,799  $ 188,468  $ 136,761
 
CoStar Group, Inc.
Condensed Consolidated Balance Sheets - Unaudited
(in thousands)
     
  December 31, December 31,
  2014 2013
  (Unaudited)  
ASSETS    
Current assets:    
Cash and cash equivalents  $ 527,012  $ 255,953
Accounts receivable, net 38,694 20,761
Deferred and other income taxes, net 20,007 22,506
Income tax receivable  1,027  -- 
Prepaid expenses and other current assets 9,736 6,597
Debt issuance costs, net 3,335 2,649
Total current assets 599,811 308,466
     
Long-term investments 17,151 21,990
Property and equipment, net 73,753 57,719
Goodwill 1,138,805 718,587
Intangible assets, net 241,622 144,472
Deposits and other assets 2,676 1,855
Debt issuance costs, net 9,864 3,893
Total assets  $ 2,083,682  $ 1,256,982
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable and accrued expenses  $ 61,287  $ 53,128
Current portion of long-term debt  20,000  24,063
Deferred revenue 38,003 34,362
Total current liabilities 119,290 111,553
     
Long-term debt, less current portion 365,000 129,062
Deferred gain on sale of building 23,762 26,286
Deferred rent 27,032 22,828
Deferred income taxes, net  30,349  34,582
Income taxes payable  4,703 4,809
     
Stockholders' equity 1,513,546 927,862
Total liabilities and stockholders' equity  $ 2,083,682  $ 1,256,982
         
CoStar Group, Inc.
Results of Segments-Unaudited
(in thousands)
         
  For the Three Months For the Twelve Months
  Ended December 31, Ended December 31,
  2014 2013 2014 2013
Revenues        
North America  $ 150,067  $110,055  $ 552,141  $420,817
International        
External customers  6,029  5,555  23,795  20,126
Intersegment revenue *  16  62  57  339
Total International revenue  6,045  5,617  23,852  20,465
Intersegment eliminations  (16)  (62)  (57)  (339)
Total revenues  $ 156,096  $115,610  $ 575,936  $440,943
         
EBITDA        
North America**  $ 42,526  $ 30,739  $ 148,913  $ 97,348
International ***  461  781  2,337  (3,136)
Total EBITDA  $ 42,987  $ 31,520  $ 151,250  $ 94,212
         
*Intersegment revenue recorded during 2014 was attributable to services performed for the Company's wholly owned subsidiary, CoStar Portfolio Strategy by Grecam S.A.S. ("Grecam"), a wholly owned subsidiary of CoStar Limited, the Company's wholly owned U.K. holding company. Intersegment revenue recorded during 2013 was attributable to services performed for CoStar Portfolio Strategy by Property and Portfolio Research Ltd., a wholly owned subsidiary of CoStar Portfolio Strategy. Intersegment revenue is recorded at an amount the Company believes approximates fair value. North America EBITDA includes a corresponding cost for the services performed by Grecam and Property and Portfolio Research Ltd. for CoStar Portfolio Strategy.
         
**North America EBITDA includes an allocation of approximately $200,000 for each of the three months ended December 31, 2014 and 2013. North America EBITDA includes an allocation of approximately $1.1 million and $800,000 for the twelve months ended December, 2014 and 2013, respectively. This allocation represents costs incurred for International employees involved in development activities of the Company's North America operating segment.
         
***International EBITDA includes a corporate allocation of approximately $100,000 for each of the three months ended December 31, 2014 and 2013. International EBITDA includes a corporate allocation of approximately $300,000 and $400,000 for the twelve months ended December 31, 2014 and 2013, respectively. This allocation represents costs incurred for North America employees involved in management and expansion activities of the Company's International operating segment.
                 
Reconciliation of Non-GAAP Financial Measures with 2013-2014 Quarterly Results - Unaudited
(in millions, except per share data)
                 
Reconciliation of Net Income (Loss) to Non-GAAP Net Income                
                 
  2013 2014
  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
                 
Net income (loss)  $ (2.4)  $ 8.3  $ 11.1  $ 12.8  $ 9.7  $ 8.2  $ 13.0  $ 13.9
Income tax expense (benefit), net  (1.8)  5.3  7.0  7.3  5.9  5.0  7.8  7.3
Income (loss) before income taxes  (4.2)  13.6  18.1  20.1  15.6  13.2  20.8  21.2
Purchase amortization and other related costs  7.1  6.9  6.6  6.4  6.2  17.0  16.1  15.5
Stock-based compensation expense  17.3  7.2  7.8  9.3  7.9  6.3  6.7  7.4
Acquisition and integration related costs  0.5  0.1  --   --   1.1  1.4  0.7  0.6
Restructuring and related costs  0.3  --   0.1  --   --   --   --   2.0
Settlements and impairments  --   --   --   --   1.0  --   0.7  1.3
Non-GAAP income before income taxes  21.0  27.8  32.6  35.8  31.8  37.9  45.0  48.0
Assumed rate for income tax expense, net * 38% 38% 38% 38% 38% 38% 38% 38%
Assumed provision for income tax expense, net  (8.0)  (10.6)  (12.4)  (13.6)  (12.0)  (14.4)  (17.1)  (18.2)
Non-GAAP net income  $ 13.0  $ 17.2  $ 20.2  $ 22.2  $ 19.8  $ 23.5  $ 27.9  $ 29.8
                 
Non-GAAP net income per share - diluted  $ 0.47  $ 0.61  $ 0.71  $ 0.78  $ 0.69  $ 0.80  $ 0.87  $ 0.93
                 
Weighted average outstanding shares - diluted**  27.9  28.2  28.3  28.4  28.8  29.5  32.1  32.1
                 
* A 38% tax rate is assumed in order to approximate the Company's long-term effective corporate tax rate.
** For periods with GAAP net losses, the basic weighted-average outstanding shares are used to calculate the GAAP net loss per share as including the effect of the potentially dilutive securities would have an anti-dilutive effect. For periods with Non-GAAP net income, the diluted weighted-average outstanding shares are used to calculate Non-GAAP net income per share in order to reflect the impact of potentially dilutive securities.
                 
                 
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA                
                 
  2013 2014
  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
                 
Net income (loss)  $ (2.4)  $ 8.3  $ 11.1  $ 12.8  $ 9.7  $ 8.2  $ 13.0  $ 13.9
Purchase amortization  7.1  6.9  6.6  6.4  6.2  17.0  16.1  15.5
Depreciation and other amortization  3.0  3.1  3.4  3.4  3.7  3.7  4.1  4.2
Interest income  (0.1)  (0.1)  (0.0)  (0.1)  (0.1)  (0.1)  (0.0)  (0.3)
Interest expense  1.8  1.8  1.7  1.7  1.6  3.8  2.7  2.4
Income tax expense (benefit), net  (1.8)  5.3  7.0  7.3  5.9  5.0  7.8  7.3
EBITDA  $ 7.6  $ 25.3  $ 29.8  $ 31.5  $ 27.0  $ 37.6  $ 43.7  $ 43.0
Stock-based compensation expense  17.3  7.2  7.8  9.3  7.9  6.3  6.7  7.4
Acquisition and integration related costs  0.5  0.1  --   --   1.1  1.4  0.7  0.6
Restructuring and related costs  0.3  --   0.1  --   --   --   --   2.0
Settlements and impairments  --   --   --   --   1.0  --   0.7  1.3
Adjusted EBITDA  $ 25.7  $ 32.6  $ 37.7  $ 40.8  $ 37.0  $ 45.3  $ 51.8  $ 54.3
         
         
 
CoStar Group, Inc.
Reconciliation of Forward-Looking Guidance-Unaudited
(in thousands, except per share data)
 
Reconciliation of Forward-Looking Guidance, Net Income (Loss) to Non-GAAP Net Income
  Guidance Range Guidance Range
  For the Three Months For the Twelve Months
  Ended March 31, 2015 Ended December 31, 2015
  Low High Low High
         
Net income (loss)  $ (9,300)  $ (7,100)  $ 8,200  $ 15,600
Income tax expense (benefit), net (5,800) (4,500) 5,000 9,600
Income (loss) before income taxes  (15,100)  (11,600)  13,200  25,200
Purchase amortization and other related costs  15,000  15,000  48,100  48,100
Stock-based compensation expense  8,500  7,500  38,000  33,000
Acquisition and integration related costs  1,000  500  1,000  500
Restructuring and related costs  --  --  1,500  500
Non-GAAP income before income taxes  9,400  11,400  101,800  107,300
Assumed rate for income tax expense, net * 38% 38% 38% 38%
Assumed provision for income tax expense, net  (3,572)  (4,332)  (38,684)  (40,774)
Non-GAAP net income  $ 5,828  $ 7,068  $ 63,116  $ 66,526
         
Net income (loss) per share - diluted  $ (0.29)  $ (0.22)  $ 0.25  $ 0.48
Non-GAAP net income per share - diluted  $ 0.18  $ 0.22  $ 1.95  $ 2.05
         
Weighted average outstanding shares - diluted  32,200  32,200  32,400  32,400
         
* A 38% tax rate is assumed in order to approximate the Company's long-term effective corporate tax rate.        
         
         
Reconciliation of Forward-Looking Guidance, Net Income (Loss) to Adjusted EBITDA
         
         
  Guidance Range Guidance Range
  For the Three Months For the Twelve Months
  Ended March 31, 2015 Ended December 31, 2015
  Low High Low High
Net income (loss)  $ (9,300)  $ (7,100)  $ 8,200  $ 15,600
Purchase amortization and other related costs  15,000  15,000 48,100 48,100
Depreciation and other amortization  4,300  4,300  17,700  17,700
Interest and other expense (income), net  2,300  2,300 9,000 9,000
Income tax expense (benefit), net  (5,800)  (4,500) 5,000 9,600
Stock-based compensation expense  8,500  7,500 38,000 33,000
Acquisition and integration related costs  1,000  500 1,000 500
Restructuring and related costs  0  0 1,500 500
Adjusted EBITDA  $ 16,000  $ 18,000  $ 128,500  $ 134,000

 
 
About CoStar Group, Inc.

CoStar Group (Nasdaq:CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. Through LoopNet, the Company operates the most heavily trafficked commercial real estate marketplace online with more than 9 million registered members. Apartments.com is a premier online apartment resource for renters that matches apartment seekers with great apartment homes and provides property managers and owners a proven platform for marketing their properties. CoStar operates websites with over 19 million unique monthly visitors in aggregate during January 2015. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S., Canada and Europe with a staff of over 2,400 worldwide, including the industry's largest professional research organization. For more information, visit www.costargroup.com.
 



This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar's financial expectations, the company's plans, objectives, expectations and intentions and other statements including words such as "hope," "anticipate," "may," "believe," "expect," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar and are subject to significant risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements. The following factors, among others, could cause or contribute to such differences: the risk that the trends stated or implied by this release cannot or will not be sustained at the current pace, including trends related to sales, revenue, earnings, and investments; the risk that investments in the company, including investments in research, sales, marketing and product development, do not produce the expected results; the risk that new product initiatives in CoStar information services, continued cross-selling with LoopNet and the relaunch of Apartments.com do not produce the expected benefits in 2015; the risk that current investment and marketing plans and expected amounts to support Apartments.com, or the timing of any such investments, may change; the risk that the company is unable to sustain current growth rates or increase them; the risk that the businesses of Apartments.com and CoStar Group may not be combined successfully or in a timely and cost-efficient manner; the risk that revenues for the first quarter and full year 2015 will not be as stated in this press release; the risk that net income for the first quarter and full year 2015 will not be as stated in this press release; the risk that non-GAAP net income and non-GAAP net income per diluted share for the first quarter and full year 2015 will not be as stated in this press release; the risk that Adjusted EBITDA for the first quarter and full year 2015 will not be as stated in this press release; the risk that the impact of investments on earnings will not be as stated in this release; and the risk that synergies from the acquisition of Apartments.com will not be as expected, occur within the expected timeframe or drive revenue and earnings growth as expected. Additional factors that could cause results to differ materially from those anticipated in the forward-looking statements can be found in CoStar's Annual Report on Form 10-K for the year ended December 31, 2013, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, each of which is filed with the SEC, including in the "Risk Factors" section of those filings, and the company's other filings with the SEC available at the SEC's website (www.sec.gov). CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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