Shares of CoStar Group (NASDAQ:CSGP) climbed 17.1% last month, according to data provided by S&P Global Market Intelligence, after the real estate information provider delivered a strong fourth-quarter report and issued upbeat guidance for the year ahead.
CoStar Group's fourth-quarter revenue jumped 24% to $316 million. Profit growth was even more impressive: Net income surged 89% to $84 million, while adjusted net income soared 126% to $102 million.
CoStar is enjoying solid growth across all of its major business segments. Its CoStar Suite information product saw revenue rise 16% to $142 million. Meanwhile, sales in its multifamily marketplace business leapt 44% to $109 million, driven by the strong growth of Apartments.com.
Additionally, CEO Andrew Florance said during a conference call with analysts that the company believes it can more than triple revenue at its LoopNet commercial real estate marketplace in the coming years.
Check out the latest earnings call transcript for CoStar Group.
CoStar Group expects companywide revenue to rise another 15% to approximately $1.38 billion in 2019. Management is also guiding for adjusted earnings to increase by as much as 21% to $10 per share.
Looking even further ahead, Florance said that CoStar Group is targeting a $3 billion revenue run rate by the end of 2023. That would represent a near-tripling of the $1.2 billion in revenue the company generated in 2018.
All told, CoStar Group's shares are now up almost 35% so far in 2019, but if Florance and his team can deliver on their aggressive growth targets, more gains could still lie ahead for investors.