BETHESDA, MD -- CoStar Group, Inc. (Nasdaq: CSGP ), http://www.costargroup.com, the Internet based, leading provider of information services to the U.S. commercial real estate industry, today reported first quarter 2000 financial results. Revenues for the first quarter were $11.4 million, compared to $6.1 million for the first quarter of 1999, an increase of 86%.
Including a one-time charge of $5.8 million related to the acquisition of COMPS.COM, the net loss for the first quarter of 2000 was $15.1 million, or $1.06 per share, compared to a net loss of $2.2 million, or $0.22 per share for the same quarter of 1999. The loss for the quarter excluding the one time charge, purchase price amortization and the related tax benefit was $7.3 million, or $0.51 per share.
"Our aggressive investment in product development, geographic expansion and Internet initiatives has resulted in record sales levels and continued profitability in our established markets," said Andrew C. Florance, president and CEO of CoStar Group, Inc. "We expect that the 27 new markets in which we are currently investing will reach profitability within the next 12 months. Additionally, steps taken this quarter to integrate Comps, Inc. operations, including layoffs and the discontinuation of product lines, aligned the Comps division with our profitability goals. We continue to believe the Company is well positioned to meet its goal of positive cash flow from operations by mid-2001."
CoStar's increased revenue was driven by both internal and external growth, resulting in revenues of $11.4 million, including $1.9 million in revenue from the Comps division. These increased sales reflect CoStar's further penetration in the 54 markets it currently serves. The group of 14 established markets in seven metropolitan regions across the country continue to have positive cash flow. The acquisition of COMPS.COM, which closed on February 10, 2000, gave the Company entry into 13 new markets. The Comps acquisition also enabled CoStar to obtain key research infrastructure and database content on sale comparables, complementing other CoStar data streams and increasing barriers to entry for competitors.
COMPS' data was integrated with other core CoStar products to create the Company's newest offering, CoStar Exchange™, an Internet solution for commercial properties for sale. CoStar Exchange™ is in beta testing with over 1,000 users and is expected to be available for sale in the second quarter of 2000. CoStar anticipates CoStar Exchange™ will contribute to future growth.
This quarter, CoStar signed several national contracts, including multi-year agreements with Jones Lang LaSalle, the world's largest real estate services firm, and GMAC Commercial Mortgage (GMACCM). Additionally, this month, the Company announced a national deal with Cushman & Wakefield.
This month, the Company also added significant strength to its senior management team. CoStar appointed John Place as executive vice president to focus on implementing enhancements to CoStar's comprehensive information, incorporating the levels of quality control and precision found in the securities industry. As former head of Bloomberg's Equity and Fixed Income Research and Data Collection, Mr. Place brings extensive management experience in domestic and international research operations.
Headquartered in Bethesda, MD, CoStar Group, Inc., http://www.costargroup.com is the leading provider of information services to the U.S. commercial real estate industry. CoStar's suite of products offers customers access to the most comprehensive, verified database of U.S. commercial real estate information in 54 markets. The Company has over 1,000 employees nationally, including over 700 highly trained commercial real estate research professionals in 23 offices.