EX-99.1 2 a20154qearningspressrelease.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
 
 

CoStar Group Grows Fourth Quarter Net Income 65% and
Revenue 24% Year-Over-Year

WASHINGTON, DC - February 24, 2016 - 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, 2015 was $712 million, an increase of 24% over revenue of $576 million for the full year of 2014. Revenue for the fourth quarter also grew 24% year- over-year to $193 million. Net income for the fourth quarter of 2015 grew 65% year-over-year to $23 million or $0.71 per diluted share.

“In 2015 we focused on building the premier marketplace for renting an apartment in the United States,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “According to comScore, Apartments.com enjoyed more visitor traffic in 2015 than any other apartment rental website. Revenue from Apartments.com was up approximately 30% year-over-year in the fourth quarter. In 2015 we added $136 million of overall revenue and $100 million of net new annual subscriptions sales. In the fourth quarter of 2015 alone, CoStar Group generated $29 million of net new sales on annual subscriptions, a 69% year-over-year increase.”

Florance continued, “We invested aggressively during 2015 to integrate CoStar, Apartments.com, and Apartment Finder in order to achieve sustainable long-term cost savings. EBITDA more than doubled from the third quarter to the fourth quarter of 2015 while EBITDA margin for the fourth quarter of 2015 expanded to 29%. We believe these strong results plainly demonstrate that we are on target to achieve our goal of $1 billion in revenue and 40% margin exiting 2018.”


Year 2014-2015 Quarterly Results - Unaudited
(in millions, except per share data)

2014

2015

Q1
Q2
Q3
Q4

Q1
Q2
Q3
Q4










Revenues
$
119.1

$
147.7

$
153.1

$
156.1


$
159.0

$
170.7

$
189.1

$
193.0

EBITDA
27.0

37.6

43.7

43.0


14.3

(1.5
)
22.1

55.0

Net income (loss)
9.7

8.2

13.0

13.9


(6.1
)
(15.0
)
(5.4
)
23.0

Net income (loss) per share - diluted
0.34

0.28

0.40

0.43


(0.19
)
(0.47
)
(0.17
)
0.71

Weighted average outstanding shares - diluted
28.8

29.5

32.1

32.1


31.8

31.9

32.0

32.3











Adjusted EBITDA
37.0

45.3

51.8

54.3


23.8

11.3

35.5

65.1

Non-GAAP Net Income
19.8

23.5

27.9

29.8


10.8

2.4

17.2

35.5

Non-GAAP Net Income per share - diluted
0.69

0.80

0.87

0.93


0.34

0.08

0.53

1.10










EBITDA in the fourth quarter of 2015 increased to $55 million compared to $43 million in the fourth quarter of 2014, which represents an increase of $12 million or 29% year-over-year.

Adjusted EBITDA (which excludes stock-based compensation and other items as defined below) was $65 million for the fourth quarter of 2015 versus $54 million in the fourth quarter of 2014, which is an increase of 20% year-over-year.

Non-GAAP net income (defined below) for the year ended December 31, 2015 was $66 million or $2.04 per diluted share. Non-GAAP net income in the fourth quarter of 2015 was $35 million or $1.10 per diluted share, compared to $30 million or $0.93 per diluted share in the fourth quarter of 2014.

As of December 31, 2015, the Company had approximately $437 million in cash, cash equivalents and long-term investments, which is an increase of $46 million since September 30, 2015. Short and long-term debt outstanding, net of debt issuance costs, totaled approximately $355 million as of December 31, 2015.

2016 Outlook
“We believe our investments in Apartments.com and Apartment Finder in 2015 provide a strong platform for future revenue growth, and are additive to the consistent double-digit revenue growth contribution from our core business,” stated CoStar Group Chief Financial Officer Scott Wheeler. “We expect the success of our integration and cost management efforts will deliver continued profit improvements in 2016.” The Company expects revenue of approximately $196 million to $198 million for the first quarter of 2016 and approximately $830 million to $840 million for the full year 2016.

For the first quarter of 2016, the Company expects non-GAAP net income per diluted share (defined below) of approximately $0.66 to $0.70. First quarter 2016 expenses include increased marketing for Apartments.com compared to fourth quarter 2015, in order to increase customer awareness and engagement ahead of the spring rental season. For the full year of 2016, the Company expects non-GAAP net income per diluted share in a range of approximately $3.62 to $3.72, an increase of approximately 80% at the mid-point over 2015.

The preceding forward-looking statements reflect CoStar Group’s expectations as of February 24, 2016, 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 acquisition-related costs, the exact amounts or timing of investments, transition, de-emphasis or discontinuation of services, 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 EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share 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. The company assumes 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. For periods with GAAP net losses and non-GAAP net income, the weighted-average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.
    
Earnings Conference Call
Management will conduct a conference call at 11:00 AM ET on Thursday, February 25, 2016 to discuss earnings results for the fourth quarter of 2015 and the Company’s outlook. The audio portion of the conference call will be broadcast live over the Internet at www.costargroup.com/investors/events. To join the conference call by telephone, please dial (800) 230-1074 (from the United States and Canada) or (612) 288-0329 (from all other countries) and refer to conference code 385653. 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 385653. 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,


2015

2014

2015

2014
 
 
 
 
 
 
 
 
 
Revenues
 
$
193,009


$
156,096


$
711,764


$
575,936

Cost of revenues

45,127


42,923


188,885


156,979

Gross margin

147,882


113,173


522,879


418,957










Operating expenses:












  Selling and marketing

59,808


41,003


302,226


150,305

  Software development

16,720


13,705


65,760


55,426

  General and administrative

29,161


27,381


115,507


103,916

  Purchase amortization

6,671


7,736


27,931


28,432



112,360


89,825


511,424


338,079














Income from operations

35,522


23,348


11,455


80,878

Interest and other income

64


271


537


516

Interest and other expense

(2,351
)

(2,415
)

(9,411
)

(10,481
)
Income before income taxes

33,235


21,204


2,581


70,913

Income tax expense, net

10,245


7,281


6,046


26,044

Net income (loss)

$
22,990


$
13,923


$
(3,465
)

$
44,869














Net income (loss) per share - basic

$
0.72


$
0.44


$
(0.11
)

$
1.48

Net income (loss) per share - diluted

$
0.71


$
0.43


$
(0.11
)

$
1.46














Weighted average outstanding shares - basic
31,999


31,761


31,950


30,215

Weighted average outstanding shares - diluted
32,284


32,142


31,950


30,641


























CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures-Unaudited
(in thousands, except per share data)









Reconciliation of Net Income (Loss) to Non-GAAP Net Income











For the Three Months

For The Twelve Months


Ended December 31,

Ended December 31,


2015

2014

2015

2014









Net income (loss)

$
22,990


$
13,923


$
(3,465
)

$
44,869

Income tax expense, net

10,245


7,281


6,046


26,044

Income before income taxes

33,235


21,204


2,581


70,913

Purchase amortization and other related costs
13,861


15,479


58,008


54,722

Stock-based compensation expense

9,368


7,361


34,537


28,267

Acquisition and integration related costs

1,023


624


6,370


3,802

Restructuring and related costs

(311
)

1,976


1,968


1,976

Settlements and impairments
 
—

 
1,374

 
2,778

 
3,173

Non-GAAP income before income taxes

57,176


48,018


106,242


162,853

Assumed rate for income tax expense, net *
38
%

38
%

38
%

38
%
Assumed provision for income tax expense, net
(21,727
)

(18,247
)

(40,372
)

(61,885
)
Non-GAAP net income

$
35,449


$
29,771


$
65,870


$
100,968










Net income (loss) per share - diluted

$
0.71


$
0.43


$
(0.11
)

$
1.46

Non-GAAP net income per share - diluted

$
1.10


$
0.93


$
2.04


$
3.30










Weighted average outstanding shares - basic**
31,999


31,761


31,950


30,215

Weighted average outstanding shares - diluted**

32,284


32,142


32,243


30,641


* 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 and non-GAAP net income, the weighted-average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.









Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA











For the Three Months

For The Twelve Months


Ended December 31,

Ended December 31,


2015

2014

2015

2014









Net income (loss)

$
22,990


$
13,923


$
(3,465
)

$
44,869

Purchase amortization in cost of revenues

7,190


7,743


30,077


26,290

Purchase amortization in operating expenses
6,671


7,736


27,931


28,432

Depreciation and other amortization

5,664


4,160


20,524


15,650

Interest income

(64
)

(271
)

(537
)

(516
)
Interest expense

2,351


2,415


9,411


10,481

Income tax expense, net

10,245


7,281


6,046


26,044

EBITDA

$
55,047


$
42,987


$
89,987


$
151,250

Stock-based compensation expense

9,368


7,361


34,537


28,267

Acquisition and integration related costs

1,023


624


6,370


3,802

Restructuring and related costs

(311
)

1,976


1,968


1,976

Settlements and impairments
 
—

 
1,374

 
2,778

 
3,173

Adjusted EBITDA

$
65,127


$
54,322


$
135,640


$
188,468







CoStar Group, Inc.
Condensed Consolidated Balance Sheets - Unaudited
(in thousands)







December 31,

December 31,


2015

2014


(Unaudited)


ASSETS




Current assets:




  Cash and cash equivalents

$
421,818


$
527,012

  Accounts receivable, net

40,276


38,694

  Deferred and other income taxes, net

—


20,007

  Income tax receivable

430


1,027

  Prepaid expenses and other current assets

10,209


9,736

Total current assets

472,733


596,476








Long-term investments

15,507


17,151

Deferred income taxes, net

9,107


—

Property and equipment, net

88,311


73,753

Goodwill

1,252,945


1,138,805

Intangible assets, net

238,318


241,622

Deposits and other assets

2,650


2,676

Total assets

$
2,079,571


$
2,070,483








LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




  Accounts payable and accrued expenses

$
76,397


$
61,287

  Current portion of long-term debt

16,746


16,665

  Deferred revenue

42,138


38,003

Total current liabilities

135,281


115,955








Long-term debt, less current portion

338,366


355,136

Deferred gain on sale of building

21,239


23,762

Deferred rent

29,628


27,032

Deferred income taxes, net

4,585


30,349

Income taxes payable

6,692


4,703








Stockholders' equity

1,543,780


1,513,546

Total liabilities and stockholders' equity

$
2,079,571


$
2,070,483











CoStar Group, Inc.
Results of Segments-Unaudited
(in thousands)









For the Three Months

For the Twelve Months

Ended December 31,

Ended December 31,

2015

2014

2015

2014
Revenues











North America
$
186,514


$
150,067


$
686,573


$
552,141

International











    External customers
6,495


6,029


25,191


23,795

    Intersegment revenue *
16


16


41


57

Total International revenue
6,511


6,045


25,232


23,852

Intersegment eliminations
(16
)

(16
)

(41
)

(57
)
Total revenues
$
193,009


$
156,096


$
711,764


$
575,936













EBITDA











North America **
$
54,276


$
42,526


$
87,092


$
148,913

International ***
771


461


2,895


2,337

Total EBITDA
$
55,047


$
42,987


$
89,987


$
151,250









*Intersegment revenue recorded during 2015 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.








**North America EBITDA includes an allocation of approximately $191,000 and $170,000 for the three months ended December 31, 2015 and 2014, respectively. North America EBITDA includes an allocation of approximately $954,000 and $1.1 million for the twelve months ended December 31, 2015 and 2014, 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 $56,000 and $64,000 for the three months ended December 31, 2015 and 2014, respectively. International EBITDA includes a corporate allocation of approximately $256,000 and $261,000 for the twelve months ended December 31, 2015 and 2014, respectively. This corporate allocation represents costs incurred for North America employees involved in management and expansion activities of the Company’s International operating segment.



























CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures with 2014-2015 Quarterly Results - Unaudited
(in millions, except per share data)











Reconciliation of Net Income (Loss) to Non-GAAP Net Income













2014

2015


Q1
Q2
Q3
Q4

Q1
Q2
Q3
Q4











Net income (loss)

$
9.7

$
8.2

$
13.0

$
13.9


$
(6.1
)
$
(15.0
)
$
(5.4
)
$
23.0

Income tax expense (benefit), net

5.9

5.0

7.8

7.3


0.6

(7.4
)
2.6

10.2

Income (loss) before income taxes

15.6

13.2

20.8

21.2


(5.5
)
(22.4
)
(2.8
)
33.2

Purchase amortization and other related costs

6.2

17.0

16.1

15.5


13.5

13.5

17.1

13.9

Stock-based compensation expense

7.9

6.3

6.7

7.4


7.4

8.4

9.3

9.4

Acquisition and integration related costs

1.1

1.4

0.7

0.6


0.6

2.9

1.8

1.0

Restructuring and related costs

—

—

—

2.0


—

—

2.3

(0.3
)
Settlements and impairments
 
1.0

—

0.7

1.3

 
1.4

1.4

—

—

Non-GAAP income before income taxes

31.8

37.9

45.0

48.0


17.4

3.9

27.7

57.2

Assumed rate for income tax expense, net *

38
%
38
%
38
%
38
%

38
%
38
%
38
%
38
%
Assumed provision for income tax expense, net

(12.0
)
(14.4
)
(17.1
)
(18.2
)

(6.6
)
(1.5
)
(10.5
)
(21.7
)
Non-GAAP net income

$
19.8

$
23.5

$
27.9

$
29.8


$
10.8

$
2.4

$
17.2

$
35.5












Non-GAAP net income per share - diluted

$
0.69

$
0.80

$
0.87

$
0.93


$
0.34

$
0.08

$
0.53

$
1.10












Weighted average outstanding shares - basic**

28.3

29.1

31.7

31.8


31.8

32.0

32.0

32.0

Weighted average outstanding shares - diluted**

28.8
29.5
32.1
32.1

32.2
32.3
32.2
32.3
 
 
 
 
 
 
 
 
 
 
 
* 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 and non-GAAP net income, the weighted-average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.











Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA













2014

2015


Q1
Q2
Q3
Q4

Q1
Q2
Q3
Q4











Net income (loss)

$
9.7

$
8.2

$
13.0

$
13.9


$
(6.1
)
$
(15.0
)
$
(5.4
)
$
23.0

Purchase amortization

6.2

17.0

16.1

15.5


13.5

13.5

17.1

13.9

Depreciation and other amortization

3.7

3.7

4.1

4.2


4.3

5.1

5.4

5.7

Interest income

(0.1
)
(0.1
)
(0.0)

(0.3
)

(0.3
)
(0.1
)
(0.0)

(0.1
)
Interest expense

1.6

3.8

2.7

2.4


2.3

2.4

2.4

2.3

Income tax expense (benefit), net

5.9

5.0

7.8

7.3


0.6

(7.4
)
2.6

10.2

EBITDA

$
27.0

$
37.6

$
43.7

$
43.0


$
14.3

$
(1.5
)
$
22.1

$
55.0

Stock-based compensation expense

7.9

6.3

6.7

7.4


7.4

8.4

9.3

9.4

Acquisition and integration related costs

1.1

1.4

0.7

0.6


0.6

2.9

1.8

1.0

Restructuring and related costs

—

—

—

2.0


—

—

2.3

(0.3
)
Settlements and impairments
 
1.0

—

0.7

1.3

 
1.4

1.4

—

—

Adjusted EBITDA

$
37.0

$
45.3

$
51.8

$
54.3


$
23.7

$
11.2

$
35.5

$
65.1






CoStar Group, Inc.
Reconciliation of Forward-Looking Guidance-Unaudited
(in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income






Guidance Range

Guidance Range

For the Three Months

For the Twelve Months

Ended March 31, 2016

Ended December 31, 2016

Low

High

Low

High












Net income
$
6,200


$
9,000


$
62,400


$
68,600

Income tax expense, net
4,100


6,000


41,600


45,700

Income before income taxes
10,300


15,000


104,000


114,300

Purchase amortization and other related costs
12,000


12,000


43,000


43,000

Stock-based compensation expense
11,000


9,000


42,000


38,000

Acquisition and integration related costs
1,500


1,000


2,500


1,500

Non-GAAP income before income taxes
34,800


37,000


191,500


196,800

Assumed rate for income tax expense, net *
38
%

38
%

38
%

38
%
Assumed provision for income tax expense, net
(13,200
)

(14,100
)

(72,800
)

(74,800
)
Non-GAAP net income
$
21,600


$
22,900


$
118,700


$
122,000









Net income per share - diluted
$
0.19


$
0.28


$
1.90


$
2.09

Non-GAAP net income per share - diluted
$
0.66


$
0.70


$
3.62


$
3.72









Weighted average outstanding shares - diluted
32,700


32,700


32,800


32,800









* 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 to Adjusted EBITDA













Guidance Range

Guidance Range

For the Three Months

For the Twelve Months

Ended March 31, 2016

Ended December 31, 2016
 
Low
 
High
 
Low
 
High
Net income
$
6,200


$
9,000


$
62,400


$
68,600

Purchase amortization and other related costs
12,000


12,000


43,000


43,000

Depreciation and other amortization
6,000


6,000


25,500


25,500

Interest and other expense (income), net
2,500


2,500


10,200


10,200

Income tax expense, net
4,100


6,000


41,600


45,700

Stock-based compensation expense
11,000


9,000


42,000


38,000

Acquisition and integration related costs
1,500


1,000


2,500


1,500

Adjusted EBITDA
$
43,300


$
45,500


$
227,200


$
232,500








All Contacts

Scott Wheeler
Chief Financial Officer
(202) 336-6920
swheeler@costar.com

Richard Simonelli
Vice President, Investor Relations
(202) 346-6394
rsimonelli@costar.com


About CoStar Group, Inc.

CoStar Group, Inc. (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. LoopNet is the most heavily trafficked commercial real estate marketplace online with more than 10 million registered members. Apartments.com, ApartmentFinder.com and ApartmentHomeLiving.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Through an exclusive partnership with Move, a subsidiary of News Corporation, Apartments.com is the exclusive provider of apartment community listings across Move’s family of websites, which include realtor.com®, doorsteps.com and move.com. CoStar Group’s websites attracted an average of more than 22 million unique monthly visitors in aggregate throughout 2015. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe and Toronto with a staff of approximately 2,600 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 Group'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 Group 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, earnings, and revenue; the risk that the Company is unable to sustain current growth rates or increase them; the risk that the Company’s investments and marketing do not produce the expected results, including sustainable long term cost savings and a platform for future revenue growth; the risk that the Company’s integration and cost management efforts do not deliver continued profit improvements in 2016; the risk that synergies from the acquisitions of Apartments.com and Apartment Finder will not be as expected, may not be fully realized, may take longer to realize than expected or may not drive revenue and earnings growth as expected; the risk that the businesses of Apartments.com, Apartment Finder and CoStar may not be combined successfully or in a timely and cost-efficient manner; the risk that revenues for the first quarter and full year 2016 will not be as stated in this press release; the risk that net income for the first quarter and full year 2016 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 2016 will not be as stated in this press release; the risk that Adjusted EBITDA for the first quarter and full year 2016 will not be as stated in this press release; and the risk that the Company is unable to achieve the revenue and margin goals stated in this press




release. 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, 2014, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, 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.