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 financial results for the second quarter of 2000. Revenues for the second quarter were $14.6 million, an increase of 103 percent compared to $7.2 million for the second quarter of 1999.
The net loss for the second quarter of 2000 was $13.1 million, or $0.85 per share, compared to a net loss of $2.6 million, or $0.23 per share for the second quarter of 1999. The net loss for the second quarter excluding purchase price amortization and the related income tax benefit was $10.0 million, or $0.65 per share.
Revenues for the six months ending June 30, 2000 were $25.9 million compared to $13.3 million for the comparable period in 1999, an increase of $12.6 million or 95 percent. The net loss for the first six months of 2000 was $28.2 million, or $1.91 per share, compared to a net loss of $4.8 million, or $0.45 per share for the same period of 1999.
"We are extremely pleased to report another quarter of consistent and strong revenue growth," said Andrew C. Florance, CEO of CoStar Group. "This quarter marks the substantial completion of our infrastructure expansion required to produce and distribute our current products nationally. During our path to profitability, we expect our cost structure, including our headcount, facilities, and other operating costs, to remain largely fixed. With continued sequential quarterly revenue growth at an expected 7 to 10 percent, we believe quarterly losses will decline at a rate that will enable the company to reach positive cash basis earnings before the end of next year. The management team at CoStar Group is aggressively focused on reaching overall profitability."
CoStar's Comps division contributed $4.3 million to total revenues for the second quarter 2000. During the quarter, CoStar continued to integrate the recently acquired Comps business, and began to distribute Comps' products through an integrated national sales force. CoStar continues to identify additional resources dedicated to non-core products and eliminate or reposition staff associated with those products. To realize its profitability goals, CoStar expects to focus all its efforts on executing its current business plan and will seek to form strategic alliances when vertical integration or expansion opportunities occur. CoStar considers these partnerships valuable when the Company can control and leverage its most valuable assets: research, database content and client relationships.
CoStar Exchange™, officially launched in June 2000, has gained early acceptance with CoStar customers because it offers subscribers a unique buying and selling solution by increasing their efficiency, reducing transaction costs and creating more value for every transaction. It is CoStar's first product that uniquely integrates information from CoStar's other product lines: CoStar Property™, CoStar Tenant™ and CoStar COMPS™ and ultimately provides users with an unprecedented level of information on for-sale properties. Additionally, sellers are recognizing the power of marketing their commercial properties through CoStar Exchange™. The number of investment packages has increased from 25,000 during beta testing to 44,000 at launch to 48,000 today, valued at approximately $50.5 billion. Based on the historical sale transaction volume tracked by CoStar COMPS™, CoStar estimates the inventory in CoStar Exchange™ represents almost 60 percent of the total, current for-sale commercial real estate market. With 450 beta users and 30 subscribers signed up in just six weeks, CoStar Exchange™ is demonstrating that subscribers easily find value in this product.
About CoStar Group, Inc.
Headquartered in Bethesda, MD, CoStar Group, Inc. (Nasdaq: CSGP ), is the leading provider of information services to the U.S. commercial real estate industry. CoStar's suite of products offers customers access via the Internet to the most comprehensive, verified database of commercial real estate information in over 50 U.S. markets. The company has more than 1,000 employees and contractors nationally, including over 700 highly trained commercial real estate research professionals in 27 offices. For more information, please visit http://www.costargroup.com .