Q2 2024 CoStar Group Inc Earnings Call

July 23, 2024

Participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to participate you will need to press star one one on your telephone you will then hear a message advising your hand this waste to withdraw your question simply press Star one again.

San Diego: Please be advised that today's conference is being recorded I would now like to hand, it over to the head of Investor Relations San Diego. Please proceed.

Carmen: Thank you Carmen good evening and thank you all for joining us to discuss our second quarter 2024, right out of the Costar group before I turn the call over to Andy Florance, Costar, CEO and founder English, Chris Lown, our CFO I would like to review our Safe Harbor statement.

Carmen: Certain portions of the discussion today may contain forward looking statements, including the company's outlook and expectations for the third quarter and full year 2024 based on current beliefs and assumptions forward looking statements involve many risks uncertainties assumptions estimates and other factors that can cause actual results to differ materially from such.

Carmen: Important factors that can cause actual results to differ include but are not limited to those stated in Costar group's press release issued earlier today and in our filings with the SEC, including our most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q under the heading risk factors all four.

Carmen: We're looking statements are based on the information available to Costar on the date of this call Costar assumes no obligation to update these statements whether as a result of new information future events or otherwise.

[inaudible]

Carmen: Conciliation to the most directly comparable GAAP measure of any non-GAAP financial measure discussed on this call are shown in detail in our press release release issued today, along with definitions for those terms. The press release is available on our website located at Costar group Dot Com under press room.

Operator: Good day, everyone, and thank you for standing by. Welcome to this Q2 2024 CoStar Group Earnings Conference Call. At this time, all participants are in a listen-only mode.

Speaker Change: Good day everyone and thank you for standing by. Welcome to this Q2 2024 CoStar Group Earnings Conference Call.

Speaker Change: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To participate, you will need to press star 1-1 on your telephone. You will then hear a message advising your hand is raised.

Carmen: As a reminder, today's conference call is being webcast and the link is also available on our website under investors.

Operator: After the speaker's presentation, there will be a question and answer session. To participate, you will need to press star one one on your telephone. You will then hear a message advising that your hand is raised. To withdraw your question, simply press star one one again.

Carmen: Please refer to today's press release on how to access the replay of this call.

Carmen: And with that I would like to turn the call over to our founder and CEO Andy Florance.

Operator: Please be advised that today's conference is being recorded. I would now like to hand it over to the head of investigations, Cyndi Eakin. Please proceed. Thank you, Carmen. Good evening, and thank you all for joining us to discuss the second quarter 2024 results of the CoStar Group. Before I turn the call over to Andy Florence, CoStar's CEO and founder, and Chris Lown, our CFO, I would like to review our Safe Harbor Statement.

Speaker Change: To withdraw your question, simply press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand it over to the head of investigations, Cyndi Eakin. Please proceed.

Andy Florance: Thank you Cindy Cindy I would note that that was the most upbeat reading of the preamble I've heard ever which suggests to me that you are looking forward to turning over your duties.

Cyndi Eakin: Thank you, Carmen. Good evening and thank you all for joining us to discuss the second quarter 2024 results of the CoStar Group. Before I turn the call over to Andy Florence, CoStar's CEO and founder, and Chris Sloan, our CFO , I would like to review our Safe Harbor Statement.

Andy Florance: So good evening and thank you for joining us for Costar group's second quarter.

Speaker Change: Earnings call.

Speaker Change: Second quarter 2024 revenue was 678, million% to 12% increase year over year coming in above the midpoint of our guidance range and in line with consensus estimates.

Operator: Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the third quarter and full year 2024 based on current beliefs and assumptions. Such forward-looking statements involve many risks, uncertainties, assumptions, estimates, and other factors that can cause actual results to differ materially from such statements.

2 billion dollar businesses.

Speaker Change: Continuing to deliver double digit year over year revenue growth with apartments, dot com growing 18% and costar growing 10% company.

Cyndi Eakin: Forward-looking statements involve many risks, uncertainties, assumptions, estimates, and other factors that can cause actual results to differ materially from such statements.

Cyndi Eakin: Important factors that can cause actual results to differ include, but are not limited to, those stated in CoStar Group's press release issued earlier today and in our filings with the SEC, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q under the heading Risk Factors. All forward-looking statements are based on the information available to CoStar on the date of this call. CoStar assumes no obligation to update these statements, whether as a result of new information, future events, or otherwise.

Speaker Change: Company net new bookings were $67 million in the second quarter was 79% of our net new bookings coming from sales of our commercial real estate products and 21% from net new bookings of homes Dot com memberships.

Speaker Change: Adjusted EBITDA was $41 million, which was well ahead of our guidance of 5%.

$10 million and consensus estimates of $10 million.

Our commercial margins remained strong delivering over 40% in the quarter and are expected to expand throughout the remainder of the year.

Cyndi Eakin: All forward-looking statements are based on the information available to CoStar on the date of this call. CoStar assumes no obligation to update these statements, whether as a result of new information, future events, or otherwise.

Speaker Change: Our average monthly unique visitors to our global websites reached a record of $183 million in the second quarter. According to Google analytics, which is up 81% over the prior year.

Cyndi Eakin: Reconciliation to the most directly comparable gap measure of any non- GAAP financial measure discussed on this call are shown in detail in our press release issued today, along with the definitions for those terms.

Speaker Change: The Homestar Com network delivered 148 million average monthly unique visitors for the second quarter. According to Google analytics, which was an increase of 73% over the same quarter last year.

Cyndi Eakin: Reconciliation to the most directly comparable gap measure of any non-gap financial measure discussed on this call is shown in detail in our press release issued today, along with the definitions for those terms. The press release is available on our website located at CoStarGroup.com under the Press Room. As a reminder, today's conference call is being webcast and the link is also available on our website under Investing. Please refer to today's press release for how to access the replay of this call. And with that, I would like to turn the call over to our founder and CEO, Andy Florence. Thank you, Cyndi.

Cyndi Eakin: The press release is available on our website located at CoStarGroup.com under Pressroom. As a reminder, today's conference call is being webcast and the link is also available on our website under Investors.

Speaker Change: Our homes Dot Com site alone delivered 99 million average monthly unique visitors for the quarter an increase of 197%.

Cyndi Eakin: Please refer to today's press release on how to access the replay of this call. And with that, I would like to turn the call over to our founder and CEO , Andy Florence.

Andrew C. Florance: Thank you, Cyndi. Cyndi, I would note that that was the most upbeat reading of the preamble I've heard ever, which suggests to me that you are looking forward to turning over your duties.

Speaker Change: So what makes you give it 197% over the same quarter a year ago. According to Google analytics.

Andrew C. Florance: Cyndi, I would note that that was the most upbeat reading of the preamble I've heard ever, which suggests to me that you are looking forward to turning over your duties. So, good evening, and thank you for joining us for CoStar Group's second quarter earnings call. Second quarter 2024 revenue was $678 million, a 12% increase year over year, coming in above the midpoint of our guidance range and in line with consensus estimates.

Speaker Change: We believe that a.

Speaker Change: Complete site Centrex census style tool like Google analytics is more accurate than user centric panel estimate accounts generated by firms such as comscore or.

Andrew C. Florance: So good evening and thank you for joining us for CoStar Group's second quarter.

Speaker Change: earnings call. Second quarter 2024 revenue was $678 million, a 12% increase year-over-year, coming in above the midpoint of our guidance range and in line with consensus estimates.

Sam Rush: Sam Rush.

Speaker Change: I believe tools like Google analytics, or like an election result, whereas a tool like SCM, Russia Comscore is more like an election poll.

Andrew C. Florance: Our $2 billion businesses continue to deliver double-digit year-over-year revenue growth, with Apartments.com growing 18% and CoStar growing 10%. Company net new bookings were $67 million in the second quarter, with 79% of our net new bookings coming from sales of our commercial real estate products and 21% from net new bookings of Homes.com membership. Adjusted EBITDA was $41 million, which was well ahead of our guidance of $5 to $10 million and consensus estimates of $10 million. Our commercial margins remain strong, delivering over 40% in the quarter, and are expected to expand throughout the remainder of the year.

Speaker Change: Our $2 billion businesses continue to deliver double-digit year-over-year revenue growth, with Apartments.com growing 18% and CoStar growing 10%.

Speaker Change: If I have the election results I choose to report those rather than a sample poll result.

Speaker Change: Our leading competitors in the U S residential portal space combine a report traffic associated with home sales home rentals rural homes land sales and apartment rentals and their traffic numbers for that reason I believe the most accurate and best apples to apples comparison is comparing the traffic from our homes network of sites to the rips.

Speaker Change: Company net new bookings were 67 million in the second quarter with 79% of our net new bookings coming from sales of our commercial real estate products and 21% from net new bookings of homes.com memberships.

Speaker Change: Adjusted EBITDA was $41 million, which was well ahead of our guidance of $5-10 million and consensus estimates of $10 million.

Speaker Change: Sort of traffic of these three leading competitors.

Speaker Change: Our homes Dot Com network includes our sites with home sales home rentals rural homes land sales in apartment rentals.

Speaker Change: Our commercial margins remain strong, delivering over 40% in the quarter, and are expected to expand throughout the remainder of the year.

Speaker Change: The most recent reported traffic numbers, we have for the leading residential portal competitors is from their first quarter results. So the comparisons not perfect.

Andrew C. Florance: Our average monthly unique visitors to our global websites reached a record of 183 million in the second quarter, according to Google Analytics, which is up 81% over the prior year. The Homes.com network delivered 148 million average monthly unique visitors for the second quarter, according to Google Analytics, which was an increase of 73% over the same quarter last year. Our Homes.com site alone delivered 99 million average monthly unique visitors for the quarter, an increase of 197%, will make sure you get that 197% over the same quarter a year ago, according to Google Analytics.

Speaker Change: Our average monthly unique visitors to our global websites reach a record of 183 million in the second quarter, according to Google Analytics, which is up 81% over the prior year.

Speaker Change: Ah report homes Dot Com network traffic of 148 million average monthly unique visitors for the second quarter is fast approaching <unk> first quarter reported traffic of 217 million average monthly unique visitors.

Speaker Change: The Homes.com network delivered 148 million average monthly unique visitors for the second quarter, according to Google Analytics, which was an increase of 73% over the same quarter last year.

Speaker Change: The homes network now has solidly lapped Realtors reported first quarter 72 million average monthly unique visitors.

Speaker Change: And has thrice lapped red fins reported first quarter 49 million monthly unique visitors.

Speaker Change: Our Homes.com site alone delivered 99 million average monthly unique visitors for the quarter, an increase of 197%.

Speaker Change: These solid traffic numbers far exceed our traffic performance expectation for this early in the development of the new homes Dot com.

Speaker Change: This one makes you give it 197% over the same quarter a year ago, according to Google Analytics.

Andrew C. Florance: We believe that a complete site-centric census-style tool like Google Analytics is more accurate than user-centric panel estimates generated by firms such as Comscore or SEMrush. I believe tools like Google Analytics are like an election result, whereas a tool like SEMrush or ComScore is more like an election poll. If I have the election results, I choose to report those rather than the sample poll results.

Speaker Change: The second court or the second quarter was our first full quarter of selling homes Dot com memberships.

Speaker Change: We believe that a complete site centric census style tool like Google Analytics is more accurate than user centric panel estimate counts generated by firms such as Comscore or SEMrush.

Speaker Change: And since mid February we sold over 55 million in net new bookings.

Speaker Change: The first four full months selling homes dot com far exceeds the launch sales pace of any of our prior product launches launches.

Speaker Change: I believe tools like Google Analytics are like an election result, whereas a tool like SEMrush or ComScore is more like an election poll.

Speaker Change: By comparison it took two years after the launch of apartments dot com to accumulate the level of net new bookings at home has achieved and its first full four months of sales.

Speaker Change: If I have the election results, I choose to report those rather than the sample poll result.

Andrew C. Florance: Our leading competitors in the U.S. residential portal space combine and report traffic associated with home sales, home rentals, rural homes, land sales, and apartment rentals and their traffic numbers. For that reason, I believe the most accurate and best apples to apples comparison is comparing the traffic from our network of sites to the reported traffic of these three leading competitors. Our Homes.com network includes our sites for home sales, home rentals, rural homes, land sales, and apartment rentals.

Speaker Change: Our leading competitors in the U.S. residential portal space combine and report traffic associated with home sales, home rentals, rural homes, land sales, and apartment rentals and their traffic numbers.

Speaker Change: The solid bookings numbers are exceptional for this early in development of the new homes Dot com.

Speaker Change: Now have 10200 member agents on the platform and 86% of our own 12 month contracts.

Speaker Change: For that reason, I believe the most accurate and best apples-to-apples comparison is comparing the traffic from our homes network of sites to the reported traffic of these three leading competitors.

Unnamed Agent: Becka, an agent from California, said something similar. She said, Homes.com has been great for me as a listing agent. I've had, I'm having calls directly on my listings. I have a paid subscription where it puts my information in front of buyers who are calling me directly.

Speaker Change: Marketing efforts continue to be successful delivering almost 10 billion consumer expression impressions and 21000 commercial placements since we launched the product.

Speaker Change: Our Homes.com network includes our sites with home sales, home rentals, rural homes, land sales, and apartment rentals.

Andrew C. Florance: The most recent reported traffic numbers we have from the leading residential portal competitors are from their first quarter results, so the comparison is not perfect. However, our report Homes.com network traffic of 148 million average monthly unique visitors for the second quarter is fast approaching Zillow's first quarter report traffic of 217 million average monthly unique visitors. The Holmes Network now has solidly lapped Realtors' reported first quarter $72 million average monthly unique visitors and has thrice lapped Redfin's reported first quarter $49 million monthly unique visitors. These solid traffic numbers far exceed our traffic performance expectations for this early in the development of the new Homes.com. The second quarter was our first full quarter of selling homes.com memberships.

Speaker Change: This is across broadcast cable TV streaming audio and video digital and social media and high profile sponsorships.

Speaker Change: The most recent reported traffic numbers we have from the leading residential portal competitors is from their first quarter results, so the comparison is not perfect.

Unnamed Agent: In my actual listing presentation, she goes on to say, I do have marketing information about getting 60x more views on my listings. Since I'm a pro member on Homes.com, and I think that has helped me secure listings. This was the first platform she says that I had enough confidence in that I actually paid for a pro membership.

Speaker Change: Unaided brand awareness continues to increase and is now at 27% up from our prelaunch baseline of 4%.

Speaker Change: Our report homes.com network traffic of 148 million average monthly unique visitors for the second quarter is fast approaching Zillow's first quarter report traffic of 217 million average monthly unique visitors

Speaker Change: Over the past month, or so I attended focus groups with agents and consumers in Atlanta, Chicago, Irvine and Nashville.

Unnamed Agent: Another agent from Columbia, South Carolina, said that within two days of signing up for my homes.com membership, I secured a new listing that went under contract less than a week.

Speaker Change: Our growth in unaided awareness was clear agents reiterated that they prefer our business model of your listing our lead you are listing your lead definitely your listing your lead.

Speaker Change: The Holmes Network now has solidly lapped Realtor's reported first quarter $72 million average monthly unique visitors and has thrice lapped Redfin's reported first quarter $49 million monthly unique visitors.

Unnamed Agent: Another agent from Spokane, Washington, said, since I've joined homes.com, I've watched the amount of traffic on my listings increased 30 to 40 times compared to us getting anywhere else.

Speaker Change: We have more work to do to make them aware of that preferred business model and we will do that work and each session. The moderator asked agents and consumers to spend a few minutes using the homes dotcom site.

Speaker Change: These solid traffic numbers far exceed our traffic performance expectation for this early in the development of the new Homes.com.

Surinder Thind: We built an analysis, actually, during Rogers and team building analysis, to understand the advantage member agents were having in winning new listings as compared to non-member agents. We create cohorts of members based upon the city, tier size, the ran, the number of listings they had beginning of the study period, and the average list price of their listings. We compared members' new listing, when count to non members' wins for each month from March through June. This created a total of 192 cohorts, 192 cohorts. On average, members won 51% more new listings than did non-members.

Speaker Change: The response was fantastic the overwhelming majority of participants said that homes Dot com is the better home search site than competing sites.

Speaker Change: The second quarter was our first full quarter of selling Homes.com memberships, and since mid-February, we have sold over $55 million in net new bookings.

Andrew C. Florance: And since mid February, we have sold over $55 million in net new bookings. The first four full months selling homes.com far exceeds the launch sales pace of any of our prior product launches. By comparison, it took two years after the launch of Apartments.com to accumulate the level of net new bookings that Home has achieved in its first full four months of sales. The solid booking numbers are exceptional for this early stage in the development of the new Homes.com.

Speaker Change: Common themes with the site is clean.

Speaker Change: It's beautiful AD free has more information than others sites have.

Speaker Change: The first four full months selling homes.com far exceeds the launch sales pace of any of our prior product launches.

Speaker Change: Has all the information you need in one spot.

Speaker Change: And participants light that the listing agent is clearly visible is not obscured and listing agent who knows the most about the property.

Speaker Change: By comparison, it took two years after the launch of Apartments.com to accumulate the level of net new bookings that Home has achieved in its first full four months of sales.

Speaker Change: Can be readily reach to ask quick and simple questions of.

Speaker Change: The solid bookings numbers are exceptional for this early in development of the new Homes.com.

Speaker Change: Agents responded very well to our value proposition to agents really stood out to me as they raved about how much value, they're getting from their homes dotcom membership.

Andrew C. Florance: We now have 10,200 member agents on the platform, and 86% are on 12-month contracts. Marketing efforts continue to be successful, delivering almost 10 billion consumer impressions and 21,000 commercial placements since we launched the product. This is a cross broadcast, cable TV, streaming audio and video, digital and social media, and high-profile sponsorship; unaided brand awareness continues to increase and is now at 27 percent, up from our pre-launch baseline of four percent. Over the past month or so, I attended focus groups with agents and consumers in Atlanta, Chicago, Irvine, and Nashville. Our growth and unaided awareness was clear.

Surinder Thind: More importantly, to me, in 95% of the 192 cohorts, members outperformed non-member agents. This is very important and the core point.

Speaker Change: We now have 10,200 member agents on the platform and 86% are on 12-month contracts.

Speaker Change: They said that they were using the advantages homes dot com membership offered to win more exclusive listings.

Speaker Change: Marketing efforts continue to be successful, delivering almost 10 billion consumer impressions and 21,000 commercial placements since we launched the product.

Surinder Thind: Winning new listings is a primary objective for real estate agents. We believe that the evidence is overwhelming that our product is enabling agents to achieve that core goal. We believe that the potential ROI for member agents is phenomenal. The average agent is getting 17 million annualized impressions for their listing and profile on Homes.com. Member listings get 46 times more exposure on average than non-member listings. Another analysis we ran indicated, on average, member agents are 20% more likely to sell the home in the first 10 days than non-members. And members are getting, on average, 11,000 dollars more for a home.

Speaker Change: So I'd like to quote one Chicago participant named Laura.

Laura: She said.

Laura: Couple of months ago, It became a premier agent on homes Dot Com my listings that it used to get 6789 10 10.

Speaker Change: This is across broadcast, cable TV, streaming audio and video, digital and social media, and high-profile sponsorships.

Speaker Change: 1000, 10000 views I now get like 2 million views on my listings.

Speaker Change: Unaided brand awareness continues to increase and is now at 27% up from our pre-launch baseline of 4%.

And it's a listing tool she went on to say so that she can then say the seller well go up and look up Orland Park and I'll show up first if I've got a listing there.

Speaker Change: Over the past month or so, I attended focus groups with agents and consumers in Atlanta, Chicago, Irvine, and Nashville.

And so then she goes on to say I say to the seller. My listing has 2 million views look at every other one after that and they've got like 3004 thousand views and I've got 2 million views.

Andrew C. Florance: Agents reiterated that they prefer our business model of your listing our lead. You're listing your lead. Definitely you're listing your lead.

Speaker Change: Our growth in unaid awareness was clear. Agents reiterated that they prefer our business model of your listing our lead. You're listing your lead. Definitely you're listing your lead.

Surinder Thind: That second analysis will vary from time to time, but multiple analyses have each shown a benefit for members of our non members in selling homes.

Andrew C. Florance: We have more work to do to make them aware of that preferred business model, and we'll do that work. In each session, the moderator asks agents and consumers to spend a few minutes using the homes.com site. The response was fantastic.

Speaker Change: We have more work to do to make them aware of that preferred business model, and we'll do that work. In each session, the moderator asks agents and consumers to spend a few minutes using the homes.com site.

Speaker Change: I'm like hashtag winning.

Andrew C. Florance: The overwhelming majority of participants said that homes.com is the better home search site than competing sites. Common themes were that the site is clean, it's beautiful, ad-free, has more information than other sites have, and has all the information you need in one spot. And participants liked that the listing agent was clearly visible, was not obscured, and a listing agent who knew the most about the property could be readily reached to ask quick and simple questions. Agents responded very well to our value proposition, and two agents really stood out to me as they raved about how much value they were getting from their homes.com membership. They stated that they were using the advantages Homes.com membership offered to win more exclusive lists. So I'd like to quote one Chicago participant named Laura.

Speaker Change: She goes on to say, it's a listing tool. So when a seller asks what are you going to do differently than everyone else.

Surinder Thind: So, in summary, I believe the product is a winner.

Surinder Thind: As of today, we've only demoed approximately 3.5% of residential agents. Building a dedicated homes.com sales team is the key driver to future homes.com revenue growth. We have 63 dedicated Homes.com salespeople in production that I can see. We have an additional 53 in training in another 30 hires.

Speaker Change: Most people will be saying the same things in and I can say oh homes dot com pull up a neighborhood and I show up first.

Speaker Change: The response was fantastic. The overwhelming majority of participants said that Homes.com is a better home search site than competing sites.

Speaker Change: Becker and agent from California said something similar she said.

Speaker Change: Common themes with the site is clean, it's beautiful, ad-free, has more information than other sites have, has all the information you need in one spot,

Becker: <unk> Dot com has been great for me as a listing agent I've had them having calls directly on my listings have a paid subscription where it puts my information in front of buyers who are calling me directly.

Speaker Change: And participants liked that the listing agent is clearly visible, is not obscured, and a listing agent who knows the most about the property can be readily reached to ask quick and simple questions of.

Speaker Change: In my actual listing presentation. She goes on to say I do have marketing information about getting 60 X more views on my listings since I'm a pro member on homes Dot Com and I think that has helped me secure listings.

Speaker Change: Agents responded very well to our value proposition and two agents really stood out to me as they raved about how much value they were getting from their Homes.com membership.

Speaker Change: This was the first platform. She says that they had enough confidence in that I actually paid for a pro membership.

Speaker Change: Another agent from Columbia, South Carolina said within two days of signing up for my homes Dotcom membership are secured a new listing that went under contract in less than a week.

Speaker Change: They stated that they were using the advantages Homes.com membership offered to win more exclusive listings.

Speaker Change: So, I'd like to quote one Chicago participant named Laura. She said, a couple of months ago, I became a premier agent on Homes.com.

Andrew C. Florance: She said, "A couple of months ago, I became a premier agent on homes.com. My listings that used to get 6, 7, 8, 9, 10, 10, 1000, 10,000 views; I now get like 2 million views on my list. And it's a listing tool, she went on to say, so that she can then say to the seller, well, go up and look up Orland Park, and I'll show up first if I've got a listing there. And so then she went on to say, I say to the seller, my listing has two million views. Look at every other one after that.

Speaker Change: Another agent from Spokane, Washington said since I've joined homes Dot Com I've watched the amount of traffic on my listings increased 30 to 40 times compare to us getting anywhere else.

Laura: My listings that it used to get six seven eight nine ten ten a thousand ten thousand views I now get like two million views on my listings

Speaker Change: We built an analysis actually J Rogers and team building analysis to understand the advantage member agents were having in winning new listings as compared to non member agents.

Laura: It's a listing tool, she went on to say, so that she can then say to the seller, well, go up and look up Orland Park, and I'll show up first if I've got a listing there.

We create cohorts of members based upon the city tier size, there and the number of listings. They had the beginning of the study period and the average list price of their listings.

Speaker Change: And so then, she goes on to say, I say to the seller, my listing has 2 million views. Look at every other one after that, and they've got like 3,000, 4,000 views, and I've got 2 million views.

Speaker Change: We compared members new listing win count to nonmembers wins for each month from March through June.

Andrew C. Florance: And they've got like three thousand, four thousand views. And I've got two million views. I'm like, hashtag winning.

Speaker Change: This created a total of 192 cohorts 192 cohorts on average members, 151% more new listings then did nonmembers.

Andrew C. Florance: She goes on to say, "It's a listing tool. So when a seller asks, what are you going to do differently than everyone else? Most people will be saying the same things.

Speaker Change: I'm like hashtag winning.

Speaker Change: She goes on to say, it's a listing tool, so when a seller asks, what are you going to do differently than everyone else, most people will be saying the same things, and then I can say, oh, homes.com, pull up a neighborhood, and I show up first.

Andrew C. Florance: And then I can say, oh, homes.com, pull up a neighborhood, and I show up first. Becca, an agent from California, said something similar. She said, Homes.com has been great for me as a listing agent. I'm getting calls directly from my listings; I have a paid subscription where it puts my information in front of buyers who are calling me directly. In my actual listing presentation, she goes on to say, I do have marketing information about getting 60x more views on my listings since I'm a pro member on homes.com, and I think that has helped me secure lists. This was the first platform, she says, that I had enough confidence in that I actually paid for a pro membership.

Speaker Change: More importantly to me in 95% of the 192 cohorts members outperformed nonmember agents. This is very important and the core point, winning new listings as a primary objective for real estate agents, we believe that the evidence is overwhelming.

Speaker Change: Becca, an agent from California, said something similar. She said, Homes.com has been great for me as a listing agent. I've had, I'm having calls directly on my listings. I have a paid subscription where it puts my information in front of buyers who are calling me directly.

Speaker Change: That our product is enabling agents to achieve that core goal, we believe that the potential ROI for member agents is phenomenal.

Speaker Change: In my actual listing presentation she goes on to say I do have marketing information about getting 60x more views on my listings since I'm a pro member on homes.com and I think that has helped me secure listings.

Speaker Change: The average agent is getting 17 million annualized impressions for their listing and profile on homes Dot Com member listings get 46 times more exposure on average than non member listings.

Speaker Change: This was the first platform, she says, that I had enough confidence in that I actually paid for a pro membership.

Another analysis, we ran indicated that on average member agents are 20% more likely to sell the home in the first 10 days than non members and members are getting on average $11000 more for a home.

Andrew C. Florance: Another agent from Columbia, South Carolina, said, within two days of signing up for my homes.com membership, I secured a new listing that went under contract in less than a week. Another agent from Spokane, Washington, said, Since I joined homes.com, I've watched the amount of traffic on my listings increase 30 to 40 times compared to what I was getting anywhere else. We built an analysis, actually Jerry Rogers and his team built an analysis to understand the advantage member agents were having in winning new listings as compared to non-member agents.

Andrew C. Florance: We created cohorts of members based upon the city, tier size they're in, the number of listings they have, the beginning of the study period, and the average list price of their list. We compared members' new listing win count to non-members' wins for each month from March through June. This created a total of 192 cohorts.

Speaker Change: Another agent from Columbia, South Carolina said within two days of signing up for my homes.com membership I secured a new listing that went under contract in less than a week.

Speaker Change: Second analysis will vary from time to time, but multiple analyses of each shown.

Speaker Change: Another agent from Spokane, Washington said, since I've joined homes.com, I've watched the amount of traffic on my listings increase 30 to 40 times compared to what I was getting anywhere else.

Speaker Change: A benefit for members over non members and selling homes.

Speaker Change: So in summary, I believe the product is a winner.

Andrew C. Florance: On average, members won 51% more new listings than non-members. More importantly to me, in 95% of the 192 cohorts, members outperformed non-member agents. This is very important and the core point.

Speaker Change: As of today, we have only demo at approximately three 5% of residential agents building a dedicated homes dotcom sales team is the key driver to future homes dotcom revenue growth.

Jerry Rogers: We built an analysis, actually Jerry Rogers and team built an analysis, to understand the advantage member agents were having in winning new listings as compared to non-member agents.

Speaker Change: We create cohorts of members based upon the city, tier size they're in, the number of listings they have, the beginning of the study period, and the average list price of their listings.

Speaker Change: We have 63 dedicated homes dotcom salespeople and production.

Speaker Change: I can see we have an additional 53 in training and another 30 hired.

Speaker Change: We compared members' new listing win count to non-members' wins for each month from March through June .

We have been borrowing resources from our apartments Dot com Costar Loopnet and other sales teams to supplement the homes dot com sales team, but those borrowed sales resources will inevitably returned to selling their core products as they should.

Speaker Change: This created a total of 192 cohorts, on average, members won 51% more new listings than did non-members.

Speaker Change: Growing the homes Dotcom sales force must be our top priority.

Speaker Change: More importantly to me, in 95% of the 192 cohorts, members outperformed non-member agents.

Speaker Change: On the market, our UK residential real estate portal is making great progress listings on the platform are now up to 716000, an increase of 41% from June of 2023.

Andrew C. Florance: Winning new listings is a primary objective for real estate agents. We believe the evidence is overwhelming that our product is enabling agents to achieve that core goal. We believe that the potential ROI for member agents is phenomenal. The average agent is getting 17 million annualized impressions for their listing and profile on Homes.com. Member listings get 46 times more exposure on average than non-member listings. Another analysis we ran indicated that, on average, member agents are 20% more likely to sell a home in the first 10 days than non-members, and members are getting on average $11,000 more for a home.

Speaker Change: This is very important and the core point.

Speaker Change: Winning new listings is a primary objective for real estate agents.

Speaker Change: Average monthly visits for the month of June with $35 million up 78% compared to June 2023, and average monthly unique visitors were up to $18 million in June or an increase of 118% over June 2023, According to Google analytics.

Speaker Change: We believe that the evidence is overwhelming that our product is enabling agents to achieve that core goal. We believe that the potential ROI for member agents is phenomenal.

Speaker Change: The average agent is getting 17 million annualized impressions for their listing and profile on Homes.com. Member listings get 46 times more exposure on average than non-member listings.

Speaker Change: Lead counts are up 50% over the second quarter of last year and the sales results are looking good.

Speaker Change: Another analysis we ran indicated on average member agents are 20% more likely to sell the home in the first 10 days than non-members and members are getting on average $11,000 more for a home.

Speaker Change: A recent article from a site in publication called the negotiator said that a leading man leading lead management platform is.

Andrew C. Florance: That second analysis will vary from time to time, but multiple analyses have each shown a benefit for members over non-members in selling homes. So, in summary, I believe the product is a winner. As of today, we've only demoed approximately 3.5% of residential aging.

Speaker Change: That second analysis will vary from time to time, but multiple analyses have each shown a benefit for members over non-members in selling homes.

Speaker Change: <unk> found that on the market has now overtaken zoop love for engaged inquiries.

Speaker Change: Apartments Dot Com continued its positive momentum with another strong quarter revenue was 264 million for the second quarter 2024, representing 18% growth over the same period a year ago.

Speaker Change: So, in summary, I believe the product is a winner.

Speaker Change: As of today, we've only demoed approximately 3.5% of residential agents.

Andrew C. Florance: Building a dedicated Homes.com sales team is the key driver to future Homes.com revenue growth. We have 63 dedicated Homes.com salespeople in production that I can see. We have an additional 53 in training, and another 30 have been hired.

Speaker Change: Building a dedicated Homes.com sales team is the key driver to future Homes.com revenue growth.

Speaker Change: We continued to add new customers with rentals of all sizes to our marketplace at a rapid pace.

Speaker Change: We have 63 dedicated homes.com sales people in production that I can see. We have an additional 53 in training and another 30 hired.

Speaker Change: And now have almost 76000 paying communities on our network and.

Speaker Change: In June we had a record number of single family rental listings represent an increase of 108% over the prior year.

Andrew C. Florance: We have been borrowing resources from our Apartments.com, CoStar, LoopNet, and other sales teams to supplement the Homes.com sales team, but those borrowed sales resources will inevitably return to selling their core products as they should. Growing Homes.com's sales force must be our top priority. On the market, our UK residential real estate portal is making great progress. Listings on the platform are now up to 716,000, an increase of 41% from June of 2023. Average monthly visits for the month of June were $35 million, up 78% compared to June 2023, and average monthly unique visitors were up to 18 million in June, or an increase of 118% over June 2023, according to Google Analytics.

Speaker Change: We have been borrowing resources from our Apartments.com, CoStar, LoopNet, and other sales teams to supplement the Homes.com sales team. But those borrowed sales resources will inevitably return to selling their core products as they should.

Speaker Change: Single family rental listings have boosted lead count by more than four times, our homes dotcom membership agents.

Speaker Change: Our mid market efforts are contributing thousands of new properties growing paid subscribers by almost 22% in the second quarter compared to the same quarter a year ago.

Speaker Change: Growingthehomes.com's sales force must be our top priority.

Speaker Change: New construction is also contributing to subscriber growth with 75% of all new 100, plus unit communities advertising with apartments Dot com.

Speaker Change: On the market, our UK residential real estate portal is making great progress.

Speaker Change: Listings on the platform are now up to 716,000, an increase of 41% from June of 2023.

Speaker Change: That's a great staff.

Speaker Change: Our sales team continues to deliver exceptional results and extremely high engagement with our clients and prospects.

Speaker Change: Average monthly visits for the month of June worth $35 million.

Speaker Change: During the quarter pages team conducted over 187000 quality meetings, which is an increase of 23% compared to the second quarter of last year.

Speaker Change: Up 78% compared to June 2023, and average monthly unique visitors were up to 18 million in June , or an increase

Speaker Change: Our second quarter net promoter score of 94 continues to lead the industry or just about any industry, which is a testament to the quality of the sales team and their service.

Speaker Change: of 118% over June 2023, according to Google Analytics.

Andrew C. Florance: Lead counts are up 50% over the second quarter of last year, and the sales results are looking good. A recent article from a site publication called The Negotiator said that a leading lead management platform has found that on the market has now overtaken Zoopla for engaged inquiries. Apartments.com continues its positive momentum with another strong quarter. Revenue was $264 million for the second quarter of 2024, representing 18% growth over the same period a year ago.

Speaker Change: Lead counts are up 50% over the second quarter of last year and the sales results are looking good.

Speaker Change: We continue to outperform our competitors and lead quality and conversion.

Speaker Change: A recent article from a site publication called The Negotiator said that a leading lead management platform has found that OnTheMarket has now overtaken Zoopla for engaged inquiries.

Speaker Change: In the second quarter market connections of third party market research firm conducted a survey of industry decision makers responsible for 18000 communities with over one 5 million units under management.

Speaker Change: Apartments.com continues its positive momentum with another strong quarter. Revenue was $264 million for the second quarter 2024, representing 18% growth over the same period a year ago.

Speaker Change: Apartments Com Dot com continues to lead all the metrics that matter to most matter most to multifamily owners and property managers. We're number one in advertiser usage and deliver the highest quality leads we continue to have the highest lead the lease conversion rate significantly outperforming our next closest <unk>.

Andrew C. Florance: We continue to add new customers with rentals of all sizes to our marketplace at a rapid pace and now have almost 76,000 paying communities on our network. In June, we had a record number of single-family rental listings representing an increase of 108% over the prior year.

Speaker Change: We continue to add new customers with rentals of all sizes to our marketplace at a rapid pace.

Speaker Change: and now have almost 76,000 paying communities on our network.

Speaker Change: Petitor and every one of these three metrics.

Speaker Change: Our 'twenty 'twenty four apartments Dot com marketing Cam campaign, featuring Jeff Goldblum, as Brad Bellflower inventor Theyre part of Internet is in full swing again, we are reaching renters across all media channels during peak rental season, and generating over $2 1 billion media impressions.

Speaker Change: In June , we had a record number of single-family rental listings representing an increase of 108% over the prior year.

Andrew C. Florance: Single-family rental listings have boosted lead count by more than four times our homes.com membership age. Our mid-market efforts are contributing thousands of new properties, growing paid subscribers by almost 22% in the second quarter compared to the same quarter a year ago. New construction is also contributing to subscriber growth, with 75% of all new 100-plus unit communities advertising with Apartments.com. That's a great stat.

Speaker Change: Single family rental listings have boosted lead count by more than four times our Homes.com membership agents.

Speaker Change: Our mid-market efforts are contributing thousands of new properties, growing paid subscribers by almost 22% in the second quarter compared to the same quarter a year ago.

Speaker Change: This year, we launched a dedicated landlord campaign to generate awareness with landlords on a one to four rental properties and have generated almost $500 million brand media impressions to date as a result of our continued investment in success, our unaided brand awareness specifically attributed to apartment seekers.

Speaker Change: New Construction is also contributing to subscriber growth, with 75% of all new 100-plus unit communities advertising with Apartments.com.

Andrew C. Florance: Our sales team continues to deliver exceptional results and extremely high engagement with our clients and prospects. During the quarter, Paige's team conducted over 187,000 quality meetings, which is an increase of 23% compared to the second quarter of last year. Our second quarter net promoter score of 94 continues to lead the industry, or just about any industry, which is a testament to the quality of the sales team and their service. We continue to outperform our competitors in lead quality and conversion. In the second quarter, Market Connections, a third-party market research firm, conducted a survey of industry decision-makers responsible for 18,000 communities with over 1.5 million units under management.

Speaker Change: Is now 74% compared to Zillow, which is only at 42%, 74% compared to 42% our average monthly unique visitors for the quarter grew 3% year over year to $48 million significantly outperforming the overall market, which was down.

Speaker Change: That's a great stat.

Speaker Change: Our sales team continues to deliver exceptional results and extremely high engagement with our clients and prospects.

Paige: During the quarter, Paige's team conducted over 187,000 quality meetings.

Paige: which is an increase of 23% compared to the second quarter of last year. Our second quarter net promoter score of 94 continues to lead the industry, or just about any industry, which is a testament to the quality of the sales team and their service.

Speaker Change: 3% year over year according to Google.

Speaker Change: Economic conditions in the apartment industry continue to create a favorable advertising environment apartment vacancy rates are 345 star properties continue at elevated levels with a nine 3% vacancy rate at the end of the quarter and are forecasted to remain at or above 9% for the remainder of this year unit level.

Paige: We continue to outperform our competitors in lead quality and conversion.

Speaker Change: In the second quarter, Market Connections, a third-party market research firm, conducted a survey of industry decision-makers responsible for 18,000 communities with over 1.5 million units under management.

Speaker Change: He has continued at all time highs and expected to be 561000 units in 2024.

Andrew C. Florance: Apartments.com continues to lead all the metrics that matter most to multifamily owners and property managers. We're number one in advertiser usage and deliver the highest quality leads. We continue to have the highest lead-to-lease conversion rate, significantly outperforming our next closest competitor in every one of these three metrics. Our 2024 apartments.com marketing campaign featuring Jeff Goldblum as Brad Bellflower, the inventor of the apartment internet, is in full swing again.

Speaker Change: Supply will continue to outweigh demand in the foreseeable future.

Speaker Change: Apartments.com continues to lead all the metrics that matter to most.

Speaker Change: <unk> Dot com continues to deliver strong growth and we expect to see apartments dot com revenue growth of 17% for the year in line with our guidance.

Speaker Change: matter most to multifamily owners and property managers. We're number one in advertiser usage and deliver the highest quality leads. We continue to have the highest lead to lease conversion rate, significantly outperforming our next closest competitor in every one of these three metrics.

Speaker Change: In the second quarter Costar continued to deliver double digit revenue growth with $253 million of revenue a 10% increase over the prior year and in line with our guidance.

Speaker Change: Our lender product had the highest net new sales quarter ever with a 47% increase in revenue over the same period last year.

Speaker Change: Our 2024 Apartments.com marketing campaign featuring Jeff Goldblum as Brad Bellflower, the inventor of the apartment internet, is in full swing again. We are reaching renters across all media channels during peak rental season and generating over 2.1 billion media impressions.

Speaker Change: We now have 298 banks in lending institutions in the platform.

Andrew C. Florance: We are reaching renters across all media channels during peak rental season and generating over 2.1 billion media impressions. This year, we launched a dedicated landlord campaign to generate awareness among landlords owning one to four rental properties and have generated almost 500 million brand media impressions to date. As a result of our continued investment in success, our unaided brand awareness, specifically attributed to apartment seekers, is now 74 percent compared to Zillow, which is only at 42 percent. 74% compared to 42%

Speaker Change: Up 50% year over year with sales to several large institutions in the quarter.

Speaker Change: We believe that our product is contingent is superior to the competition, which is something we continue to hear from our customers lend.

Speaker Change: This year we launched a dedicated landlord campaign to generate awareness with landlords owning one to four rental properties and have generated almost 500 million brand media impressions to date.

Speaker Change: Lenders at 300 million market opportunity with 3000 more significant lending institutions to pursue.

Speaker Change: As a result of our continued investment and success, our unaid brand awareness, specifically attributed to apartment seekers, is now 74% compared to Zillow, which is only at 42%.

Speaker Change: The STR sales team had another strong quarter with a 54% increase in net new sales year over year revenue from our benchmarking product in Costar subscriptions to hospitality clients increased 28% in the second quarter.

Andrew C. Florance: Our average monthly unique visitors for the quarter grew 3% year over year to 48 million, significantly outperforming the overall market, which was down 3% year over year, according to Google. Economic conditions in the apartment industry continue to create a favorable advertising environment. Apartment vacancy rates on 3, 4, and 5 star properties continue at elevated levels with a 9.3% vacancy rate at the end of the quarter and are forecast to remain at or above 9% for the remainder of this year.

Speaker Change: 74% compared to 42%. Our average monthly unique visitors for the quarter grew 3% year-over-year to 48 million, significantly outperforming the overall market which was down 3% year-over-year according to Google.

Speaker Change: We are well positioned to penetrate the $300 million market opportunity with a best in class product.

Speaker Change: Our consistent strong revenue and sales performance for Costar as the result of a steady stream of product innovation that delivers expanded capabilities increase customer value.

Speaker Change: Economic conditions in the apartment industry continue to create a favorable advertising environment. Apartment vacancy rates on 3, 4, 5 star properties continue to elevate levels with a 9.3% vacancy rate at the end of the quarter.

Speaker Change: Over the past few years, we've integrated the STR benchmarking product enhanced our fund data added hospitality and see MBS data launched a new lender product and opened international reach for our Costar customers at the end of Q2, we just released our newest feature called owner the new owner module of Costar provides unparalleled.

Andrew C. Florance: Unit level deliveries continue at all-time highs and are expected to be 561,000 units in 2024. Supply will continue to outweigh demand in the foreseeable future. Apartments.com continues to deliver strong growth, and we expect to see Apartments.com revenue growth of 17% for the year, in line with our guidance. In the second quarter, CoStar continued to deliver double-digit revenue growth with $253 million of revenue, a 10% increase over the prior year and in line with our guidance.

Speaker Change: and are forecasted to remain at or above 9% for the remainder of this year. Unit-level delivery is continued at all-time highs and expected to be 561,000 units in 2024.

Speaker Change: Insight into the underlying portfolios of the world's largest real estate developers and owners. They are key tenants acquisition and disposition disposition trends.

Speaker Change: Supply will continue to outweigh demand in the foreseeable future.

Speaker Change: Apartments.com continues to deliver strong growth and we expect to see Apartments.com revenue growth of 17% for the year in line with our guidance.

Speaker Change: <unk> vacancies and availabilities in key contacts.

Speaker Change: Our usage data continues to show that these customers are engaging with the platform more despite the economic cycle.

Speaker Change: In the second quarter, CoStar continued to deliver double-digit revenue growth with $253 million of revenue, a 10% increase over the prior year, and in line with our guidance.

Our customers logged in 5 million times in the quarter and conducted six to 8 million properties searches up 8% over the same period a year ago.

Andrew C. Florance: Our lender product had the highest net new sales quarter ever with a 47% increase in revenue over the same period last year. We now have 298 banks and lending institutions on the platform, up 50% year-over-year, with sales to several large institutions in the quarter. We believe that our product is superior to the competition, which is something we continue to hear from our customers. LENDER is a $300 million market opportunity with 3,000 more significant lending institutions to pursue.

Speaker Change: Our lender product had the highest net new sales quarter ever with a 47% increase in revenue over the same period last year.

Speaker Change: Renewal rates are up to 92% and our NPS scores are at 65%, which is the highest levels in history in our history for NPS for Costar, we have grown our subscriber base to 230000, Costar professional users, which is up 19% year over year.

Speaker Change: We now have 298 banks and lending institutions on the platform, up 50% year-over-year, with sales to several large institutions in the quarter.

Speaker Change: We believe that our product is superior to the competition, which is something we continue to hear from our customers. Lender is a $300 million market opportunity with 3,000 more significant lending institutions to pursue.

Mark: We have a proven track record of growth throughout economic cycles, and even in the face of historically low CRE transaction levels Costar is delivering solid growth and continues to be the mission critical data and information product for brokers owners lenders tenants fund managers and other participants and commercial property information Mark.

Andrew C. Florance: The STR sales team had another strong quarter with a 54% increase in net new sales year-over-year. Revenue from our benchmarking product and CoStar subscriptions to hospitality clients increased 28% in the second quarter. We are well positioned to penetrate this $300 million market opportunity with a best-in-class product. Our consistent strong revenue and sales performance for CoStar is the result of a steady stream of product innovation that delivers expanded capabilities and increased customer value.

Speaker Change: The STR sales team had another strong quarter with a 54% increase in net new sales year over year. Revenue from our benchmarking product and CoStar subscriptions to hospitality clients increased 28% in the second quarter.

Speaker Change: <unk>.

Speaker Change: Loopnet revenue was $70 million up 77% year over year exceeding the high end of our 5% to 6% guidance International revenue grew 17%, 17% in the second quarter year over year.

Speaker Change: We are well positioned to penetrate this $300 million market opportunity with a best-in-class product.

Speaker Change: Our consistent strong revenue and sales performance for CoStar is the result of a steady stream of product innovation that delivers expanded capabilities and increased customer value.

Speaker Change: The Loopnet network remains the number one platform in the market was six times of traffic of our nearest competitor average monthly unique visitors for the second quarter were $13 million with direct and organic traffic at 75% of total traffic.

Andrew C. Florance: Over the past few years, we've integrated the STR benchmarking product, enhanced our fund data, added hospitality and CMBS data, launched a new lender product, and opened international reach for our CoStar customers. At the event of Q2, we just released our newest feature called Owner.

Speaker Change: Over the past few years, we've integrated the STR benchmarking product, enhanced our fund data, added hospitality and CMBS data, launched a new lender product, and opened international reach for our CoStar customers.

Speaker Change: Even considering the difficult commercial real estate market conditions total detailed listing views are up 14% compared to the second quarter of last year as the market normalizes over the coming years Loopnet is poised to benefit significantly from that recovery.

Andrew C. Florance: The new Owner module of CoStar provides unparalleled insight into the underlying portfolios of the world's largest real estate developers and owners, their key tenants, acquisition and disposition trends, aggregated vacancies and availabilities, and key contacts. Our usage data continues to show that these customers are engaging with the platform more despite the economic cycle. Our customers logged in 5 million times in the quarter and conducted 68 million property searches, up 8% over the same period a year ago. Renewal rates are up to 92%, and our NPS scores are at 65%, which is the highest level in our history for NPS for CoStar.

Speaker Change: At the event of Q2, we just released our newest feature called Owner. The new Owner module of CoStar provides unparalleled insight into the underlying portfolios of the world's largest real estate developers and owners, their key tenants, acquisition and disposition trends,

Speaker Change: We continue to enhance all aspects of sales and client service and the result are N. P. NPS scores have improved to 58 or 87 are up 87% since last year.

Speaker Change: Aggregate Vacancies and Availabilities in Key Contexts

Speaker Change: Our usage data continues to show that these customers are engaging with the platform more, despite the economic cycle.

Speaker Change: We're growing our dedicated sales team, which will help us further penetrate this large and global market opportunity.

Speaker Change: Our customers logged in 5 million times in the quarter and conducted 68 million property searches, up 8% over the same period a year ago.

Real estate manager revenue was up 9% year over year with renewal rates at 99%.

Speaker Change: Real estate manager continues to take market share from legacy competitors, two thirds of our customers are sharing their lease data for Anonymised analysis, which will greatly enhance our analytics in the costar platform.

Speaker Change: Renewal rates are up to 92% and our NPS scores are at 65% which is the highest levels in our history for NPS for CoStar.

Andrew C. Florance: We've grown our subscriber base to 230,000 CoStar professional users, which is up 19% year-over-year. We have a proven track record of growth throughout economic cycles, and even in the face of historically low Siri transaction levels, CoStar is delivering solid growth and continues to be the mission-critical data and information product for brokers, owners, lenders, tenants, fund managers, and other participants in commercial property information markets. LoopNet revenue was $70 million, up 7% year-over-year, exceeding the high end of our 5-6% guidance. International revenue grew 17% in the second quarter.

Speaker Change: We've grown our subscriber base to 230,000 CoStar professional users, which is up 19% year-over-year.

Speaker Change: <unk> Com revenue grew 5% year over year signature ads increased 9% in the second quarter and Diamond AD sales were up tenfold in the last quarter.

Speaker Change: We have a proven track record of growth throughout economic cycles, and even in the face of historically low Siri transaction levels, CoStar is delivering solid growth and continues to be the mission-critical data and information product for brokers, owners, lenders, tenants, fund managers,

Speaker Change: <unk> Dot com is exclusive sponsor of a new show and production ranch land, which will stream on Paramount plus and CBS beaching featuring aspirational ranch's, they're listed for sale and land Dot com.

Speaker Change: and other participants in commercial property information markets.

Speaker Change: Each episode will feature an aspirational ranch currently on the market and listed on land Dot Com and will feature a day in the life of the ranch owner I know none of you are going to want to Miss that exciting show.

Speaker Change: LoopNet revenue was $70 million, up 7% year-over-year, exceeding the high end of our 5-6% guidance. International revenue grew 17% in the second quarter year-over-year.

Andrew C. Florance: The LoopNet Network remains the number one platform in the market, with six times the traffic of our nearest competitor. Average monthly unique visitors for the second quarter were 13 million, with direct and organic traffic at 75% of total traffic. Even considering the difficult commercial estate market conditions, total detailed listing views are up 14% compared to the second quarter of last year. As the market normalizes over the coming years, Lupna is poised to benefit significantly from that recovery.

Speaker Change: This buy sell revenue increased 6% year over year. The platform had a record $2 billion in enterprise value of that transaction in the second quarter. Our franchise directly lead redirect relieves are up 25% and listing leads are up 16% over the same period last year.

Speaker Change: The LoopNet network remains the number one platform in the market, with six times the traffic of our nearest competitor. Average monthly unique visitors for the second quarter were 13 million, with direct and organic traffic at 75% of total traffic.

Speaker Change: Providing these quality leads to our customers and having customer response rates in the mid 19.

Speaker Change: Even considering the difficult commercial estate market conditions, total detailed listing views are up 14% compared to the second quarter of last year. As the market normalizes over the coming years, Lupna is poised to benefit significantly from that recovery.

Speaker Change: Correlates directly to our NPS score rising 15% to 55% this quarter.

Andrew C. Florance: We continue to enhance all aspects of sales and client service, and as a result, our NPS scores have improved to 58 or 87, or up 87% since last year. We're growing our dedicated sales team, which will help us further penetrate this large and global market opportunity. Real estate manager revenue is up 9% year over year, and with renewal rates at 99%, RealTrust continues to take market share from legacy competitors. Two-thirds of our customers are sharing their lease data for anonymized analysis, which will greatly enhance our analytics in the CoStar platform.

Speaker Change: Our Tenex platform continues to outperform the market with a trade rate of 50% more than double the offline trade rate of 23%.

Speaker Change: We continue to enhance all aspects of sale and client service, and the result, our NPS scores have improved to 58% or up 87% since last year. We're growing our dedicated sales team, which will help us further penetrate this large and global market opportunity.

Speaker Change: We brought 57% more assets to the platform in the second quarter compared to the first quarter of 2024.

Speaker Change: CRE transaction volumes may be bottoming out with sales activity, increasing slightly 6% year over year for the first time since the second quarter of 2022 to.

Speaker Change: Real estate manager revenue is up 9% year-over-year, with renewal rates at 99%.

Speaker Change: Distressed sales are beginning to surface, particularly for office and multifamily, but remain historically low with lenders still preferring to extend loans.

Speaker Change: Real Estate Manager continues to take market share from legacy competitors. Two-thirds of our customers are sharing their lease data for anonymized analysis which will greatly enhance our analytics in the CoStar platform.

Speaker Change: C N B S delinquency rates remain elevated and office delinquencies have increased notably to 7.4%.

Andrew C. Florance: Land.com revenue grew 5% year-over-year, signature ads increased 9% in the second quarter, and diamond ad sales were up tenfold in the last quarter. Land.com is the exclusive sponsor of a new show in production, Ranchland, which will stream on Paramount Plus and CBS, featuring aspirational ranches that are listed for sale on land.com. Each episode will feature an aspirational ranch currently on the market and listed on land.com, and will feature a day in the life of the ranch owner. I know none of you are going to want to miss that exciting show.

Speaker Change: Land.com revenue grew 5% year-over-year, signature ads increased 9% in the second quarter, and diamond ad sales were up tenfold in the last quarter.

Speaker Change: This is a significant opportunity as these properties will eventually need to change hands and tenex as the most efficient way to execute commercial real estate transactions.

Speaker Change: Land.com is exclusive sponsor of a new show in production, Ranchland, which will stream on Paramount Plus and CBS , featuring aspirational ranches that are listed for sale on Land.com.

Speaker Change: I believe that the results this quarter demonstrate the strength of our commercial real estate business with continued double digit growth and strong EBITDA margins in the face of economic headwinds.

Speaker Change: Each episode will feature an aspirational ranch currently on the market and listed on land.com and will feature a day in the life of the ranch owner. I know none of you are going to want to miss that exciting show.

Speaker Change: I believe that this quarter homes dot com is to coming into focus as a better product with a better business model than our competitors have.

Andrew C. Florance: BizBuySell revenue increased 6% year over year, and the platform had a record $2 billion in enterprise value that transacted in the second quarter. Our franchise directory leads are up 25% and listing leads are up 16% over the same period last year; providing these quality leads to our customers and having customer response rates in the mid-19s correlates directly to our MPS score rising 15% to 55% this quarter. Our 10x platform continues to outperform the market with a trade rate of 50%, more than double the offline trade rate of 23%.

Speaker Change: I think the homes dotcom value proposition is emerging clearly, it's compelling and offers our future clients a huge potential ROI.

Speaker Change: BizBuySell revenue increased 6% year-over-year. The platform had a record $2 billion in enterprise value that transacted in the second quarter. Our franchise directory leads are up 25% and listing leads are up 16% over the same period last year.

Speaker Change: Going forward, we need to focus on the blocking and tackling of building out our sales and marketing organization to realize the full revenue potential of homes Dot com.

Chris alone: At this point I am pleased to welcome our new CFO, Chris alone and we will turn the call over to him.

Speaker Change: providing these quality leads to our customers and having customer response rates in the mid-19s.

Speaker Change: correlates directly to our MPS score rising 15% to 55% this quarter.

Speaker Change: And here we go.

Chris: Great. Thank you Andy.

Chris alone: Good evening I'm excited to be here for my first of many Costar earnings calls.

Speaker Change: Our 10x platform continues to outperform the market with a trade rate of 50%, more than double the offline trade rate of 23%.

Chris alone: I'm happy to report that Costar has now reached its 50 <unk> consecutive quarter of double digit revenue growth coming in at 12% and we achieved a commercial business margin of 41% in the second quarter.

Andrew C. Florance: We brought 57% more assets to the platform in the second quarter compared to the first quarter of 2024. Siri transaction volumes may be bottoming out, with sales activity increasing slightly, 6% year-over-year for the first time since the second quarter of 2022, to stress sales are beginning to surface, particularly for office and multifamily, but remain historically low, with lenders still preferring to extend loans. CMBS delinquency rates remain elevated, and office delinquencies have increased notably to 7.4%.

Speaker Change: We brought 57% more assets to the platform in the second quarter compared to the first quarter of 2024.

Chris alone: Looking first at our residential businesses residential revenue came in at $26 million up 40% sequentially.

Speaker Change: CRE transaction volumes may be bottoming out, with sales activity increasing slightly, six percent year-over-year, for the first time since the second quarter of 2022.

Chris alone: And just four and a half months, we've delivered cumulative net new bookings of $55 million, which was a great accomplishment.

Speaker Change: to stress sales are beginning to surface particularly for office and multifamily but remain historically low with lenders still preferring to extend loans.

Chris alone: We are focused on hiring dedicated homes dotcom sales reps over the next year.

Speaker Change: CMBS delinquency rates remain elevated and office delinquencies have increased notably to 7.4 percent.

Chris alone: Who are more productive, but selling homes memberships and will also allow many of our commercial sales teams to return to selling their core products full time.

Andrew C. Florance: This is a significant opportunity, as these properties will eventually need to change hands, and 10x is the most efficient way to execute commercial real estate transactions. I believe that the results this quarter demonstrate the strength of our commercial real estate business with continued double-digit growth and strong EBITDA margins in the face of economic headwinds. Additionally, I believe that this quarter, Homes.com is coming into focus as a better product with a better business model than our competitors have.

Speaker Change: This is a significant opportunity as these properties will eventually need to change hands and 10X is the most efficient way to execute commercial real estate transactions.

Chris alone: As Andy mentioned focus groups have bolstered our confidence in our homes dotcom offering and we are confident in our differentiated business model and our ability to capture this exciting long term revenue and data opportunity.

Speaker Change: I believe that the results this quarter demonstrate the strength of our commercial real estate business with continued double-digit growth and strong EBITDA margins in the face of economic headwinds.

Andy Florance: We now expect third quarter residential revenue to come in around $30 million and we are revising our full year 2024 residential revenue guidance to $105 million to $110 million.

Speaker Change: I believe that this quarter, Homes.com is coming into focus as a better product with a better business model than our competitors have.

Andy Florance: For the full year, we continue to expect to execute on our homes Dot com investment plans.

Andrew C. Florance: I think the Homes.com value proposition is emerging clearly, it's compelling, and offers our future clients a huge potential ROI. Going forward, we need to focus on the blocking and tackling of building out our sales and marketing organization to realize the full revenue potential of Homes.com. At this point, I am pleased to welcome our new CFO, Chris Lown, and will turn the call over to him. Okay. Great. Thank you, Andy. Good evening.

Speaker Change: I think the Homes.com value proposition is emerging clearly, it's compelling, and offers our future clients a huge potential ROI.

Speaker Change: Apartments Dot com second quarter revenue growth came in at 11%.

The apartments Dot com team continued to perform well.

Speaker Change: Going forward, we need to focus on the blocking and tackling of building out our sales and marketing organization to realize the full revenue potential of Homes.com.

Speaker Change: With the highest number of sales reps on the highest sales productivity of any brand in the company.

Speaker Change: We are on track to achieve the guidance, we provided last quarter, resulting in 17% year over year revenue growth.

Chris Lone: At this point, I'm pleased to welcome our new CFO , Chris Lone, and will turn the call over to him.

Speaker Change: Costar revenue grew 10% in the second quarter.

Speaker Change: In line with our guidance and we are maintaining our previous full year guidance of 10% growth.

Chris Lone: And here we go. Great. Thank you, Andy. Good evening. I'm excited to be here for my first of many CoStar earnings calls.

Christian M. Lown: I'm excited to be here for my first of many CoStar earnings calls. I'm happy to report that CoStar has now reached its 53rd consecutive quarter of double-digit revenue growth, coming in at 12%, and we achieved a commercial business margin of 41% in the second quarter. Looking first at our residential businesses, residential revenue came in at $26 million, up 40% sequentially. In just four and a half months, we have delivered cumulative net new bookings of $55 million, which is a great accomplishment.

Speaker Change: We expect growth in the third quarter to be broadly in line with the full year.

Chris Lone: I'm happy to report that CoStar has now reached its 53rd consecutive quarter of double-digit revenue growth, coming in at 12%, and we achieved a commercial business margin of 41% in the second quarter.

<unk> net revenue grew 7% in the second quarter slip.

Slightly ahead of our 5% to 6% guidance range.

Speaker Change: We are maintaining our full year revenue outlook for Loopnet of mid single digit growth.

Chris Lone: Looking first at our residential businesses, residential revenue came in at $26 million, up 40% sequentially.

Speaker Change: Revenue from information services was flat sequentially and dropped 20% year over year due to the transition of S. T R into costar.

Chris Lone: In just four and a half months, we have delivered cumulative net new bookings of $55 million, which is a great accomplishment.

Speaker Change: We are reiterating our previously stated guidance of $130 million to $135 million for the full year.

Speaker Change: And expect the third quarter to be consistent with the first two quarters of 2024.

Chris Lone: We are focused on hiring dedicated Homes.com sales reps over the next year, who are more productive at selling homes memberships, and will also allow many of our commercial sales teams to return to selling their core products full-time.

Speaker Change: Other marketplaces revenue was $31 million in the second quarter and.

And we are maintaining our guidance for other marketplaces to be relatively flat in the third quarter and full year.

Chris Lone: As Andy mentioned, focus groups have bolstered our confidence in our Homes.com offering and we are confident in our differentiated business model and our ability to capture this exciting long-term revenue and data opportunity.

Speaker Change: From a consolidated basis adjusted EBITDA for the second quarter was $41 million at a 6% margin.

Speaker Change: Meaningfully above the high end of our $5 million to $10 million second quarter guidance.

Christian M. Lown: We now expect third quarter residential revenue to come in around $30 million, and we are revising our full year 2024 residential revenue guidance to $105 to $110 million. For the full year, we continue to expect to execute on our homes.com investment plans. Apartments.com's second quarter revenue growth came in at 11%.

Speaker Change: We now expect third quarter residential revenue to come in around $30 million, and we are revising our full year 2024 residential revenue guidance to $105 to $110 million.

Speaker Change: The favorable performance relates primarily to slower than anticipated hiring as well as the timing of investment spend.

We anticipate incurring some of the spend in the second half of the year.

Speaker Change: For the full year, we continue to expect to execute on our homes.com investment plans.

Speaker Change: Our sales force totaled some 1240 people at quarter end and.

An increase of 7% year over year and around 30 salespeople higher sequentially.

Speaker Change: Apartments.com second quarter revenue growth came in at 11 percent.

Christian M. Lown: The Apartments.com team continued to perform well, with the highest number of sales reps and the highest sales productivity of any brand in the company. We are on track to achieve the guidance we provided last quarter, resulting in 17% year-over-year revenue growth. CoStar revenue grew 10% in the second quarter, in line with our guidance, and we are maintaining our previous full year guidance of 10% growth. We expect growth in the third quarter to be broadly in line with the full year.

Speaker Change: Most of the increase in the second quarter was in our homes Dot Com sales force.

Speaker Change: The Apartments.com team continued to perform well with the highest number of sales reps and highest sales productivity of any brand in the company.

Speaker Change: Our contract renewal rate was 90% for the second quarter.

Speaker Change: With the renewal rate for customers, who have been subscribers subscribers for five years or longer at 95%.

Speaker Change: We are on track to achieve the guidance we provided last quarter, resulting in 17% year-over-year revenue growth.

Speaker Change: Subscription revenue on annual contracts was 81% for the second quarter.

Speaker Change: CoStar revenue grew 10% in the second quarter in line with our guidance and we are maintaining our previous full year guidance of 10% growth.

Speaker Change: Consistent with the prior quarter and the second quarter of 2023.

We continue to have a strong balance sheet with $4 $9 billion in cash, which our net interest income of $53 million in the second quarter, a five 1% rate of return.

Speaker Change: We expect growth in the third quarter to be broadly in line with the full year.

Christian M. Lown: LoopNet revenue grew 7% in the second quarter, slightly ahead of our 5% to 6% guidance range. We are maintaining our full-year revenue outlook for LoopNet of mid-single-digit growth. Revenue from information services was flat sequentially and dropped 20% year-over-year due to the transition of STR into CoStar.

Speaker Change: LoopNet revenue grew 7% in the second quarter, slightly ahead of our 5-6% guidance range.

Speaker Change: Our full year 2024 revenue guidance is now in the 2.735 billion to $2, seven and four or $5 billion range, a 12% year over year increase at the midpoint.

Speaker Change: We are maintaining our full-year revenue outlook for LoopNet of mid-single-digit growth.

Speaker Change: Revenue from information services was flat sequentially and dropped 20% year-over-year due to the transition of STR into CoStar.

Speaker Change: This range reflects our adjusted reserve residential revenue guidance for the second quarter second half of the year.

Christian M. Lown: We are reiterating our previously stated guidance of $130 to $135 million for the full year and expect the third quarter to be consistent with the first two quarters of 2024. Other marketplaces revenue was $31 million in the second quarter. And we are maintaining our guidance for other marketplaces to be relatively flat in the third quarter and full year. On a consolidated basis, adjusted EBITDA for the second quarter was $41 million at a 6% margin, meaningfully above the high end of our $5 to $10 million second quarter guidance. The favorable performance relates primarily to slower than anticipated hiring, as well as the timing of investment spend.

Speaker Change: We are reiterating our previously stated guidance of $130 to $135 million for the full year and expect the third quarter to be consistent with the first two quarters of 2024.

Speaker Change: The company expects third quarter revenue of 692 million to $697 million, representing 11% year over year growth at the midpoint of the range.

Speaker Change: Other marketplaces' revenue was $31 million in the second quarter.

Speaker Change: We are increasing the midpoint of our adjusted EBITDA guidance for the year with revised guidance of 195 million to $205 million.

Speaker Change: And we are maintaining our guidance for other marketplaces to be relatively flat in the third quarter and full year.

Speaker Change: From a consolidated basis, adjusted EBITDA for the second quarter was $41 million at a 6% margin, meaningfully above the high end of our $5-10 million second quarter guidance.

Speaker Change: For the third quarter of 2024, adjusted EBITDA is expected to be in a range of 47 million to $52 million.

Speaker Change: I will now turn the call back over to our call operator, Carmen to open the line for questions.

Speaker Change: The favorable performance relates primarily to slower than anticipated hiring, as well as the timing of investment spend.

Carmen: Thank you and as a reminder, press Star then one one to get in the queue and wait for your name to be announced to remove yourself from the queue Press Star. One again, we do ask that you. Please keep your questions to one one moment for our first question. Please.

Christian M. Lown: We anticipate incurring some of this spend in the second half of the year. Our sales force totaled some 1,240 people at quarter end, an increase of 7% year-over-year, and around 30 salespeople were hired sequentially. Most of the increase in the second quarter was in our homes.com sales. Our contract renewal rate was 90% for the second quarter, with a renewal rate for customers who have been subscribers for five years or longer at 95%. Subscription revenue on annual contracts was 81% for the second quarter, consistent with the prior quarter and the second quarter of 2023.

Speaker Change: We anticipate incurring some of this spend in the second half of the year.

Speaker Change: Our sales force totaled some 1,240 people at quarter end, an increase of 7% year over year, and around 30 sales people higher sequentially.

Carmen: And it comes from the line of Pete Christiansen with Citi. Please proceed.

Speaker Change: Most of the increase in the second quarter was in our homes.com sales force.

Speaker Change: Our contract renewal rate was 90% for the second quarter, with a renewal rate for customers who have been subscribers for five years or longer at 95%.

Pete Christiansen: Thank you good evening.

Chris alone: Welcome Chris Great to have you.

Ed: Congratulations to the shut off to rich good evening Ed.

Speaker Change: Subscription revenue on annual contracts was 81% for the second quarter.

Speaker Change: [laughter] lots of patients there anyway.

Speaker Change: consistent with the prior quarter and the second quarter of 2023.

Ed: Andy.

Christian M. Lown: We continue to have a strong balance sheet with $4.9 billion in cash, which reflects our net interest income of $53 million in the second quarter, a 5.1 percent rate of return. Our full year 2024 revenue guidance is now in the $2.735 billion to $2.745 billion range, a 12% year over year increase at the midpoint. This range reflects our adjusted residential revenue guidance for the second half of the year. The company expects third-quarter revenue of $692 million to $697 million, representing 11% year-over-year growth at the midpoint of the range.

Andy Florance: It sounds like.

Andy Florance: Yeah.

Speaker Change: We continue to have a strong balance sheet with $4.9 billion in cash, which earned net interest income of $53 million in the second quarter, a 5.1% rate of return.

Andy Florance: However.

Andy Florance: The momentum in the new sales for the royalty side.

Andy Florance: It seems to.

Speaker Change: A bit of a speed bump it sounds.

Speaker Change: Our full year 2024 revenue guidance is now in the $2.735 billion to $2.745 billion range, a 12% year-over-year increase at the midpoint.

Speaker Change: A bit more like blocking and tackling on the sales force can you can you talk about.

Adjusting the sales force to sell.

Normally institutional clients, how they are selling to residential agents in.

Speaker Change: This range reflects our adjusted residential revenue guidance for the second half of the year.

Speaker Change: And I just need to follow up there is a notion that there has been.

Speaker Change: Either refunds or cancels throughout the quarter is it a function of.

Speaker Change: The company expects third quarter revenue of $692 million to $697 million.

Speaker Change: The the agent out there just becoming more educated on.

Speaker Change: representing 11% year-over-year growth at the midpoint of the range.

Speaker Change: <unk> Dot com.

Speaker Change: We are increasing the midpoint of our adjusted EBITDA guidance for the year with revised guidance of $195 million to $205 million.

Speaker Change: Provides and how it differs versus other portals.

Speaker Change: Sure so.

Speaker Change: I think that the broad sales force of 1000 and some people.

Speaker Change: For the third quarter of 2024, adjusted EBITDA is expected to be in a range of $47 million to $52 million.

Speaker Change: Can comfortably sell the homes dot com product.

Christian M. Lown: We are increasing the midpoint of our adjusted EBITDA guidance for the year with revised guidance of $195 million to $205 million. For the third quarter of 2024, adjusted EBITDA is expected to be in a range of $47 million to $52 million. I will now turn the call back over to our call operator, Carmen, to open the line for questions. Thank you, and as a reminder, press star then 11 to get in the queue and wait for your name to be announced. To remove yourself from the queue, press star 11 again.

Speaker Change: However.

Speaker Change: I will now turn the call back over to our call operator, Carmen, to open the line for questions.

Speaker Change: If you are an apartment salesperson or a costar salesperson you have been selling those products for many years and after.

Carmen: Thank you and as a reminder press star then 1 1 to get in the queue and wait for your name to be announced.

Speaker Change: The initial rush of selling a new product you begin to migrate back to your existing product and.

Operator: We do ask that you please keep your questions to one. One moment for our first question, and it comes from the line of Pete Christiansen with Citi. Please proceed. Thank you. Good evening. Welcome, Chris. Great to have you. Congratulations, Cyndi. Shout out to Rich.

Carmen: To remove yourself from the queue, press star 11 again. We do ask that you please keep your questions to one. One moment for our first question, please.

Speaker Change: It's the type of thing that you can try to push them into the two products, but realistically.

Speaker Change: Longer term as you move into the second as we move forward towards the second full quarter of the third or fourth full quarter, we want to be relying more and more on a dedicated homes dotcom selling team because.

Peter Corwin Christiansen: And it comes from the line of Pete Christiansen with Citi. Please proceed.

Speaker Change: Thank you. Good evening. Welcome, Chris. Great to have you. Congratulations, Cyndi. Shout out to Rich. Good evening, Andy.

Speaker Change: There's just a natural instinct for the broad sales force to go back into their core products. The other thing is that the homes dot com team dedicated.

Peter Corwin Christiansen: Good evening, Andy. Lots of salutations there. Anyway, Andy, it sounds like...

Speaker Change: Dedicated sales team does a better job with following up with the sales post sales and has higher net promoter score is dramatically higher net promoter scores.

Peter Corwin Christiansen: However, the momentum and new sales for the Resi side seem to have hit a bit of a speed bump. It sounds a bit more like blocking and tackling on the sales force. Can you talk about, you know, adjusting the sales force to sell normally to institutional clients, how they're selling to residential agents. And, and I just need to follow up, there's a notion that there's been either refunds or cancels throughout the quarter. Is that a function of? The agent out there is just becoming more educated on what homes.com provides and how it differs versus other portals. Thanks.

Peter Corwin Christiansen: It sounds like...

Carmen: [inaudible]

Speaker Change: However, the momentum in the new sales for the resi side

Speaker Change: And then do.

The salespeople that were borrowing from the other products and who were basically renting if you ever treat a rental car not as well as you treat your own car well, that's a little bit the way. These other non core salesforce is treat some of the humps folks.

Speaker Change: It seems to have hit a bit of a speed bump. It sounds...

Speaker Change: a bit more like blocking and tackling on the sales force. Can you, can you talk about, you know, adjusting the sales force to sell, who normally sell to institutional clients, how they're selling to residential agents?

Speaker Change: Homes clients and none are bad way that this just that the homes dot com dedicated team has a significantly higher NPS.

Speaker Change: And I just need to follow up, there's a notion that there's been either refunds or cancels throughout the quarter, is it a function of the agent out there just becoming more educated on what homes.com

Speaker Change: So.

Speaker Change: And you don't want to.

Speaker Change: Great products, there with apartments and homes and you don't really want to push too hard to move them into our sales area there.

Speaker Change: provides and how it differs versus other portals. Thank you.

Andrew C. Florance: Sure. So I think that the broad sales force of 1000 some people can comfortably sell the homes.com product. However, you know, if you're an apartment salesperson or CoStar salesperson, you've been selling those products for many years. And after the initial rush of selling a new product, you begin to migrate back to your existing product. And it's the type of thing that you can try to push them into the two products, but realistically, longer term, as you move into the second, as we move forward towards the second full quarter, the third or fourth full quarter, we want to be relying more and more on a dedicated Homes.com selling team because there's just a natural instinct for the broad sales force to go back to their core products.

Speaker Change: That is not there long term.

Speaker Change: Sure, so I think that the broad sales force of a thousand some people can comfortably sell the Homes.com product.

Speaker Change: Focus.

Speaker Change: So.

Speaker Change: In terms of.

Speaker Change: I'm unaware of any refunds that we've put out there we did have a going into the new product we had a completely lenient.

Speaker Change: However, if you're an apartment salesperson or CoStar salesperson, you've been selling those products for many years, and after the initial rush of selling a new product, you begin to migrate back to your existing product.

Speaker Change: Cancel policy and the initial time period.

Speaker Change: So you could pretty much.

Speaker Change: Back out anytime you want it's my understanding that initially one of the single biggest.

Speaker Change: Reasons for cancellation is the credit card didn't process.

Speaker Change: It's the type of thing that you can try to push them into the two products, but realistically,

Speaker Change: Which is <unk>.

Speaker Change: Not to be which is not unusual given.

Speaker Change: longer term as you move into the second, as we move forward towards the second full quarter, the third or fourth full quarter, we want to be relying more and more on a dedicated homes.com selling team because

Speaker Change: Residential agents with volumes down and.

Speaker Change: Commission to Commission, a 100% commission based pay.

Speaker Change: There's just a natural instinct for the broad sales force to go back into their core products.

Andrew C. Florance: The other thing is that the homes.com team, a dedicated sales team, does a better job of following up with the sales post sales and has higher net promoter scores, dramatically higher net promoter scores than do the salespeople that were borrowing from the other products and who were basically renting. If you ever treat a rental car not as well as you treat your own car, well, that's a little bit the way these other non-core sales forces treat some of the Homes folks, and homes clients, and not in a bad way; it's just that the Homes.com dedicated team has a significantly higher NPS.

Speaker Change: Now.

Speaker Change: There's a little bit of the ladder that youre talking about there which is.

Speaker Change: The other thing is that the homes.com team

Speaker Change: After two decades of agents being used to buying leads off of lead diversion sites in order to get buyer agency. There is definitely an education process. So.

Speaker Change: dedicated sales team does a better job with following up with the sales post sales and has higher net promoter scores, dramatically higher net promoter scores.

Speaker Change: Then do the salespeople that were borrowing from the other products and who were basically renting. If you ever treat a rental car not as well as you treat your own car, well, that's a little bit the way these other core sales forces treat some of the homes folks.

Speaker Change: If I am an agent who doesn't really do normal residential real estate listings I don't normally win listings as an agent and ive been buying leads from a lead diversion site like realtor.

Speaker Change: Those sites are.

Speaker Change: Homes clients. And not in a bad way, it's just that the homes.com dedicated team has a significantly higher NPS.

Speaker Change: Scraping the listing leads off of <unk>.

Andrew C. Florance: So, and you don't wanna, you know, we have some great products there with apartments and homes, and you don't really wanna push them too hard to move them into a sales area there. That is not their long-term focus. So, in terms of, I'm unaware of any refunds that we've put out there. We did have a completely lenient cancel policy in the initial time period.

Speaker Change: 100% of the agents and funneling them down to a small group of people are just trying to work those buyer agency leads.

Speaker Change: So, and you don't want to, you know, we have some great products there with apartments and homes and you don't really want to push too hard to move them into a sales area there.

Speaker Change: We do something very different we don't do the sort of mass scraped selling buyer agency leads we focus on giving agents and advantage in selling their owners home.

Speaker Change: that is not their long-term focus.

Speaker Change: And so we.

Speaker Change: So...

Speaker Change: In terms of, I'm unaware of any refunds that we've put out there.

Speaker Change: We're giving them dramatically more exposure for their listings on our site.

Speaker Change: And that helps them win new cell listing leads are exclusive listings.

Speaker Change: We did have a, going into the new product, we had a completely lenient cancel policy in the initial time period. So you could pretty much back out anytime you want.

Andrew C. Florance: So, you could pretty much back out anytime you want. It's my understanding that initially one of the single biggest reasons for cancellation is the credit card didn't process, which is not to be, which is not unusual given, um residential agents with volumes down and um you know uh commission to commission uh 100 commission based pay, Now, there's a little bit of the latter that you're talking about there, which is after two decades of agents being used to buying leads off of lead diversion sites in order to get buyer agency, there is definitely an education process.

Speaker Change: And it also helps them when buyer agency it helps them when general branding and branding for the firm, but if you evaluate it through the lens of buyer agency scrape lead generation. It won't really meets your needs. So there were a bunch of.

Speaker Change: It's my understanding that initially one of the single biggest reasons for cancellation is the credit card didn't process, which is not to be, which is not unusual given.

Speaker Change: Buyer agency only folks who are looking for something a little bit different upfront and now we don't really focus on those folks we really direct our energy and the people who have listings in the feedback.

Speaker Change: Residential agents with volumes down and, you know, commission to commission, 100% commission-based pay.

Speaker Change: Is becoming better and better and better and better and is really quite good because.

Speaker Change: Now...

Speaker Change: There's a little bit of the latter that you're talking about there, which is...

Speaker Change: Folks who are using it using Holmes dot com are winning 51% more listings and if you think about what that means it means everything.

Speaker Change: After two decades of agents being used to buying leads off of lead diversion sites, in order to get buyer agency, there is definitely an education process. So

Speaker Change: Winning a new listing is much more valuable than winning a buyer agency lead.

Andrew C. Florance: So, if I am an agent who doesn't really do normal residential real estate listings, I don't normally win listings as an agent, and I've been buying leads from a lead diversion site like Realtor. Those sites are scraping the listing leads off of 100% of the agents and funneling them down to a small group of people that are just trying to work those buyer agency leads. We do something very different.

Speaker Change: A significant percentage of buyer agency leads never transact a super high percentage of listings homes for sale, we'll transact and transact quickly.

Speaker Change: If I am an agent who doesn't really do normal residential real estate listings, I don't normally win listings as an agent, and I've been buying leads from a lead diversion site like Realtor,

Speaker Change: And with all the things going on in the World.

Speaker Change: With the N E R lawsuits.

Speaker Change: Those sites are scraping the listing leads off of a hundred percent of the agents and funneling them down to a small group of people are just trying to work those buyer agency leads.

Speaker Change: The whole plaintiff lawsuits.

The sell lifting generation is a safe harbor and that storm and so agents prefer that so.

Andrew C. Florance: We don't do the sort of mass scrape selling buyer agency leads. We focus on giving agents an advantage in selling their owners' homes, and so we're giving them dramatically more exposure for their listings on our site, and that helps them win new sale listing leads or exclusive listings. And it also helps them win buyer agency; it helps them win general branding and branding for the firm. But if you evaluate it through the lens of buyer agency scrape lead generation, it won't really meet your needs.

Speaker Change: We do something very different. We don't do those sort of mass scrape selling buyer agency leads. We focus on giving agents an advantage in selling their owners home.

Speaker Change: Long short of it is yes, we had a incredibly.

Speaker Change: Anytime you want to cancel which is not what we normally do.

Speaker Change: We're past that and we're redirecting and making sure that we're not we're educating people on this is not a lead stealing site. This is a.

Speaker Change: And so, we're giving them dramatically more exposure for their listings on our site, and that helps them win new sale listing leads or exclusive listings.

Speaker Change: This is a promote in the home and allowing agents to win listings and generally build their brand and win buyer agency leads Pete.

Speaker Change: and it also helps them win buyer agency, it helps them win general branding and branding for the firm. But if you evaluate it through the lens of buyer agency scrape lead generation, it won't really meet your needs. So.

Speaker Change: Pete was that a long answer.

Pete Christiansen: It was good color.

Pete Christiansen: Okay, we're going to take that it very good. Thank you.

Speaker Change: Thank you one moment for our next question. Please.

Andrew C. Florance: So there were a bunch of folks who were only interested in buyer agency only folks who are looking for something a little bit different up front, and now we don't really focus on those folks; we really direct our energy into people who have listings, and the feedback is becoming better and better and better and better, and it is really quite good because folks who are using it, using homes.com, are winning 51% more listings. If you think about what that means, it means everything.

Speaker Change: And he is from the line of Alex a gogo laugh with J P. Morgan. Please proceed.

Speaker Change: There were a bunch of...

Speaker Change: buyer agency only folks who are looking for something a little bit different up front and now we don't really focus on those folks we really direct our energy into people who have listings and the feedback

The answers for.

Andy Pillar: Hi, Andy pillar.

Andy Pillar: <unk>.

Chris: Hi, Chris.

Chris: Welcome to the new role.

Speaker Change: is becoming better and better and better and better and is really quite good because

Speaker Change: I wanted to ask a quick question about the new guidance for the royalty business.

Speaker Change: Folks who are using it, using homes.com, are winning 51% more listings. If you think about what that means, it means everything. Winning a new listing is much more valuable than winning a buyer agency lead.

Speaker Change: So as I as I see it you're now assuming roughly.

Andrew C. Florance: Winning a new listing is much more valuable than winning a buyer agency lead. A significant percentage of buyer agency leads never transact. A super high percentage of listings, homes for sale, will transact and transact quickly. And with all the things going on in the world, with the NAR, with the lawsuits, the whole plaintiff lawsuits.

Speaker Change: $4 million sequential increase of royalty revenue in <unk> and then another three three or $5 million in the <unk>.

Speaker Change: Quarter, which is slightly different to the <unk>.

Speaker Change: A significant percentage of buyer agency leads never transact. A super high percentage of listings, homes for sale, will transact and transact quickly.

Speaker Change: $10 million sequential increase that you were initially targeting.

Speaker Change: Just wondering what.

Drove that decision to lower that guidance and what is your feel around.

Speaker Change: And with all the things going on in the world, with the NAR, with the lawsuits, you know, the whole plaintiff lawsuits,

Speaker Change: The membership additions.

Youre seeing at the moment sure. Thank you for the question I think a couple of things. Obviously this was the launch of a new product and there was a lot of brainpower going into trying to model out that analysis and what would happen.

Andrew C. Florance: The sale listing generation is a safe harbor in that storm, and so agents prefer that. So the short of it is, yes, we had an incredibly, you know, just any time you want to cancel, which is not what we normally do, we're past that, and we're redirecting and making sure that we're not, we're educating people on this is not a lead stealing site. This is about promoting the home and allowing agents to win listings and generally build their brand and win buyers. Pete, was that a long answer? It was a good color.

Speaker Change: The sale listing generation is a safe harbor in that storm.

Speaker Change: And the initial results were very strong and therefore, there was a reaction to that I think what youre seeing now is more of a a growing momentum that youll see evolve over time and while we don't provide quarterly guidance your numbers make broad sense to me and so I think what youre seeing is.

Speaker Change: and so agents prefer that.

Speaker Change: Long short of it is...

Speaker Change: Yes, we had an incredibly, you know, just anytime you want to cancel, which is not what we normally do. We're past that and we're redirecting and making sure that we're not, we're educating people on this is not a lead stealing site. This is a...

Speaker Change: Probably a more.

Speaker Change: Appropriate build of the business.

Speaker Change: This is a promoting the home and allowing agents to win listings and generally build their brand and win buyer agency leads.

Speaker Change: We are conservative build in the business and therefore, then guys just a better understanding I would also highlight is a new launch.

Peter Corwin Christiansen: I'm gonna, we're gonna take that in. Very good. Thank you. Yes.

Speaker Change: Pete, was that a long answer? It was good color.

Andy: And as Andy had mentioned compared to apartments Dot Com launched this is phenomenally more successful and I think we feel good about that and the model outlay and so as Andy said, we are hyper focused on getting homes dot com salespeople in their seats and that momentum will will drive further growth as well.

Peter Corwin Christiansen: We're going to take that in. Very good. Thank you.

Operator: Thank you. One moment for our next question, please. And it's from the line of Alexei Gogolev with J.P. Morgan. Please proceed. The answer is four.

Speaker Change: Thank you. One moment for our next question please.

Speaker Change: And it's from the line of Alexei Gogolev with J.P. Morgan. Please proceed.

And again I would just add that the main issue is rotation of the core salesforce back into their core products by their own choice largely and then now you move into the more long term as Chris says into the long term growth of the core sales group and definitely a significant number.

Speaker Change: The answer is four.

Alexei Mihaylovich Gogolev: Hi Andy. Hi Chris. Welcome to your new role. I wanted to ask a quick question about the new guidance for the resi business. So, as I understand it, you're now assuming roughly a $4 million sequential increase in RESI revenue in 3Q and then another $3 or $5 million in the 4Q quarter, which is slightly different to the $10 million sequential increase that you were initially targeting. Just wondering what drove that decision to lower the guidance and what your feelings are around the membership additions that you're seeing at the moment?

Alexei Mihaylovich Gogolev: Hi Andy. Hello. Hi Chris, welcome to the new role. I wanted to ask a quick question about the new guidance for the Resi business.

Alexei Mihaylovich Gogolev: So, as I see it, you're now assuming, roughly,

Chris: The original the the other product sales groups will keep selling homes, because they want to but you will be relying on the growth of that dedicated sales force now.

Speaker Change: 4 million sequential increase of RESI revenue in 3Q and then another 3 or 5 million in the 4Q.

Speaker Change: Understood. Thank you, Andy and Chris just a quick follow up on the <unk>.

Speaker Change: quarter which is slightly different to the

Speaker Change: 10 million sequential increase that you were initially targeting.

Speaker Change: <unk> EBITDA margin target.

Speaker Change: Would you mind, confirming if it's still 15% to 16%.

Speaker Change: Just wondering what drove that decision to lower the guidance, and what is your feel around the membership additions that you're seeing at the moment?

Speaker Change: Within that range, yes.

Alexei Mihaylovich Gogolev: Sure. Thank you for the question. I think a couple of things. Obviously, this was the launch of a new product, and there was a lot of brainpower going into trying to model out that analysis and what would happen. And the initial results were very strong, and therefore, there was a reaction to that.

Speaker Change: Thank you.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Sure, thank you for the question. I think a couple things. Obviously, this was the launch of a new product, and there was a lot of brainpower going into trying to model out that analysis and what would happen.

Speaker Change: It comes from the line of George Tong with Goldman Sachs. Please proceed.

George Tong: Hi, Thanks, good afternoon.

George Tong: Also I'd like to extend a welcome to Chris.

Speaker Change: and the initial results were very strong and therefore there was a reaction to that. I think what you're seeing now is more of a growing momentum that you'll see evolve over time. And while we don't provide quarterly guidance, your numbers make broad sense to me. And so I think what you're seeing is...

Chris: Thanks Cindy.

Speaker Change: So I wanted to stick with the residential business because it sounds like youre seeing good traction with respect with respect to online traffic and bookings.

Christian M. Lown: I think what you're seeing now is more of a growing momentum that you'll see evolve over time. And while we don't provide quarterly guidance, your numbers make broad sense to me. And so I think what you're seeing is probably a more appropriate build of the business, you know, hopefully a conservative build of the business. And therefore, I think it's just a better understanding.

Speaker Change: Yet you're reducing your full year residential revenue guide by about 20% to $25 million it sounds like some of that.

Speaker Change: Probably a more appropriate build of the business, you know, hopefully a conservative build of the business.

Speaker Change: Better appreciation of the trajectory and perhaps.

Christian M. Lown: I would also highlight, as a new launch, as Andy mentioned, compared to the apartments.com launch, this is phenomenally more successful. I think we feel good about that and the model outlay. And so, as Andy said, we are hyper focused on getting Homes.com salespeople in their seats, and that momentum will drive further growth as well. And again, I would just add that the main issue is the rotation of the core sales force back into the core products by their own choice, largely.

Speaker Change: therefore I think it's just a better understanding. I would also highlight as a new launch and as Andy had mentioned compared to our apartments.com launch this is phenomenally more successful.

Speaker Change: Some salesforce productivity.

Speaker Change: Sorry, but just wanted to elaborate if you can.

Speaker Change: On what's changed is it a function of hiring capacity with respect to the sales force is it a function of the productivity of the borrowed salespeople or is it a function of end market demand for your product.

Andrew C. Florance: I think we feel good about that and the model outlay and so as Andy said we are hyper focused on getting homes.com sales people in their seats and and that momentum will will drive further growth as well.

Andrew C. Florance: And then now you move into the more long term, as Chris says, the long term growth of the core sales group. And definitely, a significant number of the original other product sales groups will keep selling homes because they want to. But you'll be relying on the growth of that dedicated sales force now. Understood. Thank you, Andy.

Speaker Change: Yeah. So.

Speaker Change: I think the number one.

Speaker Change: And again, I would just add that the main issue is rotation of the core sales force back into the core products by their own choice largely. And then now you move into the more long-term, as Chris says, into the long-term growth of the core sales group.

Speaker Change: The factor is human behavior.

Speaker Change: And it is the borrowed salesforce a significant number of the borrowed salesforce.

Speaker Change:

Speaker Change: Returning to their comfort zone of selling their core products. So if I've been selling apartments dot com for seven years and doing really quite well.

Speaker Change: definitely a significant number of the other product sales groups will keep selling homes because they want to, but you'll be relying on the growth of that dedicated sales force now.

Speaker Change: At some point I feel anxious about selling a new product that I'm not going to be selling long term.

Alexei Mihaylovich Gogolev: And Chris, just a quick follow up on the exit rate EBITDA margin target. Would you mind confirming if it's still 15 to 16 percent? within that range?

Speaker Change: So it really the beginning middle and end of it is really about.

Chris Lone: Thank you, Andy. And Chris, just a quick follow-up on the exit rate EBITDA margin target. Would you mind confirming if it's still 15 to 16 percent?

Speaker Change: Building a dedicated sales team just like Costar has just like STR has just like real estate manager has just like Loopnet has.

Christian M. Lown: Yes. Thank you. Thank you. One moment for our next question, and it comes from the line of George Tong with Goldman Sachs. Please proceed. Hi, thanks. Good afternoon.

Speaker Change: We got to build that core sales team for homes Dot com. So they can sell and service that product as their first priority.

Chris Lone: Within that range, yes.

Speaker Change: Thank you.

Speaker Change: Thank you. One moment for our next question.

Speaker Change: And those folks are doing well I'm happy with the results of this relatively new Salesforce, we just need to keep growing it and that will be our priority.

Speaker Change: And it comes from the line of George Tong with Goldman Sachs. Please proceed.

Keen Fai Tong: I'd also like to extend a welcome to Chris and thanks to Cyndi. So I want to stick with the residential business because it sounds like you're seeing good traction with respect to online traffic and bookings, and yet you're reducing your full year residential revenue guide by about $20 to $25 million. It sounds like some of that's a better appreciation of the trajectory and perhaps some Salesforce productivity insights, but just want to elaborate if you can on what's changed. Is it a function of hiring capacity with respect to Salesforce? Is it a function of the productivity of the borrowed salespeople, or is it a function of end market demand for your product?

Keen Fai Tong: Hi, thanks. Good afternoon. I'd also like to extend a welcome to Chris and thanks to Cyndi.

Speaker Change: But it is as I look at where we are.

Speaker Change: So I want to stick with the residential business because it sounds like you're seeing good traction with respect to online traffic and...

Speaker Change: Having the traffic that is phenomenal.

Speaker Change: And having the.

Speaker Change: bookings and yet you're reducing your full year residential revenue guide by about 20 to 25 million. It sounds like some of that's better appreciation of the trajectory and perhaps

Speaker Change: Both the end users.

Speaker Change: Refer the product over others in our studies and having the agents signet find significant value in what we're doing if they're actually in real estate.

Speaker Change: Is really good and it gives and now it's just a question of building out that dedicated home sales team, but I'm reluctant.

Speaker Change: some Salesforce productivity.

Speaker Change: insights, but just want to elaborate if you can on what's changed. Is it a function of hiring capacity with respect to the sales force? Is it a function of the productivity of the borrowed sales people? Or is it a function of end market demand for your product?

Speaker Change: And I'm reluctant to pressure high performing apartments, or Costar real estate manager salespeople to move into homes, when they're really quite good at their core products.

Andrew C. Florance: Yeah, so, I think the number one factor is human behavior, and it is the borrowed sales force, a significant number of the borrowed sales force, returning to their comfort zone of selling their core products. So if I've been selling apartments.com for seven years and doing really quite well, at some point, I feel anxious about selling a new product that I'm not going to be selling long term. So the beginning, middle, and end of it is really about building a dedicated sales team just like CoStar has, just like STR has, just like Real Estate Manager has, just like LoopNet has. We've got to build that core sales team for Homes.com so they can sell and service that product as their first priority. And those folks are doing well.

Speaker Change: Yeah, so...

Speaker Change #112: Got it that's helpful. Thank you.

Speaker Change: I think the number one factor is human behavior and it is the borrowed sales force, a significant number of the borrowed sales force.

Speaker Change #103: Thank you one moment for our next question. Please.

Heather <unk>: And it is from the line of Heather <unk> with Bank of America. Please proceed.

Speaker Change: Returning to their comfort zone of selling their core products. So if I've been selling apartments.com for seven years and doing really quite well,

Heather: Hi, Thank you for taking my question.

Speaker Change: You touched on apartment earlier.

Speaker Change: Paul.

Speaker Change #101: And your thoughts about how you see trends.

Speaker Change: At some point, I feel anxious about selling a new product that I'm not going to be selling long term. So it really, the beginning, middle, and end of it is really about...

Speaker Change #111: Into next year.

Speaker Change #102: Yeah, Hi dynamic.

Speaker Change #109: And also I know there's been a lot of question on competition will have gotten more into the apartment.

Speaker Change: building a dedicated sales team just like CoStar has, just like STR has, just like Real Estate Manager has, just like LoopNet has.

Speaker Change #110: You touched.

Speaker Change #104: Some of that on the call.

Speaker Change #106: How how you're thinking about keeping our leadership position as competition increases.

Speaker Change: We've got to build that core sales team for Homes.com so they can sell and service that product as their first priority.

J Rogers: And J.

Keen Fai Tong: I'm happy with the results of this relatively new Salesforce. We just need to keep growing it. And that will be our priority. But it is, you know, as I look at where we are, having the traffic that is phenomenal and having both the end users prefer the product over others in our studies and having the agents signify significant value in what we're doing if they're actually in real estate is really good, and it gives, and now it's just a question of building out that dedicated home sales team, but I'm reluctant, and I' I got it.

Speaker Change #107: Operating factors between.

J Rogers: Yes.

J Rogers: Yes so.

Speaker Change: And those folks are doing well. I'm happy with the results of this relatively new Salesforce. We just need to keep growing it and that will be our priority. But it is, you know, as I look at where we are...

Speaker Change #108: As you look at the.

Speaker Change #113: Economic environment, we're operating in four apartments Dot com.

Speaker Change #113: I do believe we are in awe of.

Speaker Change #108: The Goldilocks zone.

Speaker Change: having the traffic that is phenomenal.

Speaker Change #108: So we don't want to see vacancy rates too high people, then aren't don't have liquidity to pay for the ads and we don't want to see them too low.

Speaker Change: and having the both the end-users prefer the product over others in our studies.

Speaker Change #108: And the demand for the ads go down.

Speaker Change: and having the agents find significant value in what we're doing if they're actually in real estate is really good and it gives and now it's just a question of building out that dedicated home sales team but I'm reluctant

Speaker Change #108: So in terms of how we maintain our competitive advantage, we have a robust and broad product development line apartments Dot com you can see the traffic continues to grow and you can see us consistently outpacing and lead the league.

Speaker Change: and I'm reluctant to pressure high-performing apartments or CoStar or real estate manager salespeople to move into homes when they're really quite good at their core products.

Speaker Change #108: In lead to lease conversion into.

Speaker Change #108: Unaided awareness and traffic growth just all the different metrics, we're doing quite well.

Operator: That's helpful. Thank you. Thank you. One moment for our next question, please. And it's from the line of Heather Balsky with Bank of America. Please proceed.

Speaker Change: Got it. That's helpful. Thank you.

Speaker Change #108: And really it's sort of a broader a.

Speaker Change: Thank you. One moment for our next question, please.

Speaker Change #108: Broader playbook here, where there's a lot of room in this space because most of the apartment units are in the smaller category and in the mom and pop individual units and houses and so frankly, nobody has any real penetration there I mean that is while we're growing down there were in the <unk>.

Speaker Change: And it's from the line of Heather Balsky with Bank of America. Please proceed.

Heather Nicole Balsky: Hi, thank you for taking my question. You touched on apartments earlier in the call. It would be great to hear your thoughts about how you see trends into next year, especially given supply dynamics. And also, I know there have been a lot of questions about competition as Zillow has gotten more into the apartment space, and you touched on some of that earlier in the call as well. Just, you know, how are you thinking about keeping your leadership position as competition increases and the differentiating factors between your positions?

Speaker Change #114: Single digit penetration.

Speaker Change #114: So there's tons of room for us to grow in there and you will see likely some other players grow in there, but that's because it's a big market.

Speaker Change #114: We are both developing a big market.

Speaker Change #115: Thank you for that.

Speaker Change #116: I could have missed it but I was just curious have you share just updated thoughts on commercial EBITDA margins for the year end.

Heather Nicole Balsky: Yes, so, when you look at the economic environment we're operating in for apartments.com, I do believe we are in the Goldilocks zone, so we don't want to see vacancy rates too high because people then don't have liquidity to pay for the ads, and we don't want to see them too low because the demand for the ads goes down.

Speaker Change #117: Our expectation for lithium.

Speaker Change #118: For the prior two quarters.

Speaker Change #119: We did provide guidance to what we did in the second quarter of around 41% and we'd do it.

Speaker Change #119: Those two.

Speaker Change #120: Slightly be roughly in the same area.

Speaker Change #121: Okay. Thank you say 40 watt.

Speaker Change #120: Correct.

Speaker Change #122: Thank you one moment for our next question. Please.

Speaker Change #123: And he is from the line of <unk> van flat with <unk>. Please go ahead.

Andrew C. Florance: So, in terms of how we maintain our competitive advantage, we have a robust and broad product development pipeline at apartments.com. You can see the traffic continues to grow. And you can see us consistently outpacing in lead-to-lease conversion, into unaided awareness, into traffic growth, just all the different metrics. We're doing quite well. And really, it's sort of a broader playbook here where there's a lot of room in this space because most of the apartment units are in the smaller category and in mom-and-pop individual units and houses. And so, Frankly, nobody has any real penetration there.

van flat: Hey, good evening, everyone. Thanks for taking my questions and Chris welcome.

van flat: Andy I was hoping you could touch on some of the organic levers for Costar suite going forward I think last quarter, you talked about 220000 subscribers STR.

Speaker Change #125: The lender product being an opportunity, but I was wondering if you could maybe break that down further as we sort of think about the growth drivers of the business over the next two to three years. Thanks.

van flat: Sure.

Speaker Change #126: So continuing to develop.

Speaker Change #127: Products that are geared towards the corporate user the owner the lender institutions.

Speaker Change #128: That's a wide open area with relatively low penetration rates and as we add more and more people in those other sectors or segments.

Heather Nicole Balsky: I mean, while we're growing down there, we're in single-digit penetration. So, there's tons of room for us to grow there. And you will likely see, likely, some other players grow in there, but that's because it's a big market and we're both developing a big market. Thank you for that and, and, I could have missed it, but I was just curious, have you shared just updated thoughts on commercial EBITDA margins for the year and are your expectations still the same as they were for the prior two quarters? You know, we did provide guidance on what we did in the second quarter of around 41 percent, and we do expect those to be roughly in the same area. Okay, thank you for 41.

Speaker Change #129: It creates more.

Speaker Change #129: More energy in the customer base.

Speaker Change #129: Brokers are more likely to engage in the product more if corporate users are engaging in the product owners are more likely to engage in the product with corporate users are in the product. So we're building out a lot of vibrancy on the platform by going into those building features and functions to reach into the segments in which we have historically had.

Speaker Change: I could have missed it but I was just curious if you share just updated thoughts on commercial EBITDA margins for the year end.

Speaker Change #129: Had not been our first and second priorities, but are huge growth areas also.

Speaker Change: Our expectation for lithium.

Speaker Change: For the prior two quarters.

Speaker Change #129: We are.

Speaker Change: We did provide guidance to what we did in the second quarter of around 41% and we'd do it.

Speaker Change #129: Continuing progress towards moving Germany, France, Spain, and some other markets into costar as well as our global hospitality functions.

Speaker Change: Those two.

Speaker Change: But <unk> be roughly in the same area.

Speaker Change: Okay. Thank you say 41.

Speaker Change #129: So I believe later this year, we'll be releasing the the more full.

Speaker Change: <unk>.

Speaker Change: Thank you one moment for our next question. Please.

Speaker Change #129: STR global functionality, so global will be another driver. So I think that those are the main segments. We still have a lot of way I mean as crazy as it has all these years later, we still have a lot of brokers to sell to.

Speaker Change: And he is from the line of <unk> <unk> flat with BP.

Christian M. Lown: Correct. Thank you. One moment for our next question. And he is from the line of Soham Bhonsle with BTIG.

Speaker Change: Please go ahead.

Hey, good evening, everyone. Thanks for taking my questions and Chris welcome.

Soham Jairaj Bhonsle: Please go ahead. Good evening, everyone. Thanks for taking my questions. And Chris, welcome. Andy, I was hoping you could touch on some of the organic levers for CoStar Suite going forward. I think last quarter you talked about, you know, 220,000 subscribers, STR, and, you know, the lender product being an opportunity. But I was wondering if you could maybe break that down further as we sort of think about the growth drivers of the business over the next two to three years. Thanks.

Speaker Change: Andy I was hoping you could touch on some of the organic levers for Costar suite going forward I think last quarter, you talked about 220000 subscribers STR and lender product being an opportunity, but I was wondering if you could maybe break that down further as we sort of think about the growth drivers of the business over the next two to three years.

Speaker Change #129: And increasingly residential firms over the last 10 15 years have been doing more commercial so as we get into more and more into residential will be.

Speaker Change #129: Providing more.

Speaker Change #129: Costar services to folks that you would have viewed as more historically residential I had a call today with a head of sales of Costar with a major residential player trying to figure out how they could get access to costar and Loopnet and I don't think that call would've happened except for the.

Speaker Change: Sure.

Andrew C. Florance: Sure. So, we continue to develop products that are geared towards the corporate user, the owner, the lender, and institutions. That's a wide open area with relatively low penetration rates. And as we add more and more people in those other sectors or segments, it creates more energy in the customer base. Brokers are more likely to engage in the product more if corporate users are engaging in the product. Additionally, owners are more likely to engage in the product when corporate users are in the product.

Speaker Change: So continuing to develop.

Speaker Change: Products that are geared towards.

Speaker Change: Corporate user the owner the lender institutions.

Speaker Change: That's a wide open area with relatively low penetration rates and as we add more and more people in those other sectors or segments.

Speaker Change #129: The fact that we're now on that.

Speaker Change #129: Ceos radar.

Speaker Change #129: Because of homes dot com so.

Speaker Change #129: Costar group, sorry, Costar remains the product with as far as I can tell after 38 years perpetual growth opportunity.

Speaker Change: It creates more.

Speaker Change: More energy in the customer base.

Speaker Change: Brokers are more likely to engage in the product more if corporate users are engaging in the product owners are more likely to engage in the product with corporate users are in the product. So we're building out.

Speaker Change #130: Great and if I could just follow up on commercial bookings in the quarter. It looks like you did improve quarter over quarter, but it's still down year over year. So any color that you could sort of provide there when you when do you. When do you think that will start getting moving again that well. Thank you you see that in.

Andrew C. Florance: So we're building out a lot of vibrancy in the platform by going into those building features and functions to reach into those segments which have historically not been our first and second priorities but are huge growth areas. Also, we are continuing progress towards moving Germany, France, Spain, and some other markets into CoStar as well as our global hospitality functions. So I believe later this year we'll be releasing the full STR global functionality.

Speaker Change: Lot of vibrancy on the platform by going into those building features and functions to reach into the segments in which we have historically had had not been our first and second priorities, but are huge growth areas also.

Speaker Change #131: When you give them a fixed number of hours in the day when those costar apartments, loopnet salespeople shift over and start spending some amount of time selling.

Speaker Change: We are.

Speaker Change: Continuing progress towards moving Germany, France, Spain, and some other markets into costar as well as our global hospitality functions.

Homes, Dotcom, which they did a lot in the in the period from February <unk> to enter the second quarter.

Speaker Change: So I believe later this year, we'll be releasing the.

Speaker Change #132: That comes at some substitution effect, where they're selling in the core so I think predominantly.

Speaker Change: More full.

Speaker Change: STR global functionality, so global will be another driver so I think that those.

Andrew C. Florance: So global will be another driver. So I think that those are the main segments. We still have a lot of ways. I mean, as crazy as it is, all these years later, we still have a lot of brokers to sell to. I had a call today with the head of sales of CoStar and a major residential player trying to figure out how they could get access to CoStar and LubeNet. And I don't think that call would have happened except for the fact that we're now on that CEO's radar because of homes.com.

Speaker Change #132: Any any reduction year over year is coming from that effort selling into homes Dot com.

Speaker Change: The main segments, we still have a lot of way to them as crazy as it has all these years later, we still have a lot of brokers to sell to them.

Speaker Change #134: Got it thanks a lot.

Speaker Change #133: Thank you one moment for our next question.

And he's from Jeff Mueller with Baird. Please proceed.

Speaker Change: And increasingly residential firms over the last 10 15 years have been doing more commercials, so as we get into more and more into residential will be <unk>.

Yes, just.

Jeff Mueller: And then maybe if you could just talk through kind of the key factors that are going to determine.

Speaker Change: Providing more costar services to folks that you would have viewed as more historically residential I had a call today with a head of sales of Costar with a major residential player trying to figure out how they could get access to costar and Loopnet and I don't think that call would have happened.

Jeff Mueller: The budget for the homes Dot Com initiative over the next few years.

Speaker Change #136: Just with this stutter in the net bookings.

Speaker Change #137: And then.

Speaker Change #138: What's the exit rate assumed for IRR for homes Dot com in the revenue guidance. Please thank you.

Speaker Change: For the.

Speaker Change #139: So I'll, let <unk>.

Speaker Change: And the fact that we're now on that.

Chris: Chris After I answer the first part I'll, let Chris answer the revenue guidance on exit.

Speaker Change: As radar because of homes dot com so.

Andrew C. Florance: So CoStar remains the product with, as far as I can tell after 38 years, perpetual growth opportunity. Great. And if I could just follow up on commercial bookings in the quarter, it looks like, you know, you did improve quarter over quarter, but it's still down year over year. So any color that you could sort of provide there when you when you think that could start getting moving again would be helpful.

Chris: So I think that.

Speaker Change: Costar group.

Chris: Big picture.

Speaker Change: Costar remains the product with as far as I can tell after 38 years perpetual growth opportunity.

Chris: We are look coming out with us homes dot com product offering in our first full quarter with a good result, which is more than.

Speaker Change: Great and if I could just follow up on commercial bookings in the quarter. It looks like you did improve quarter over quarter, but it's still down year over year. So any color that you could sort of provide there when you when do you when do you think that could start getting moving again.

Chris: When I look at the.

Chris: The early stages of apartments Dot com I believe we're running more than double the sales, we ran apartments dot com and its a question of building it out so.

Chris: It's a little early in the first full quarter of launch to call. It a stutter because you don't really have a reference point.

Speaker Change: Thank you you see that in.

Soham Jairaj Bhonsle: Thank you. You see that when you're given, you know, a fixed number of hours in the day, when those CoStar apartments, LoopNet salespeople shift over and start spending some amount of time selling Homes.com, which they did a lot in the period from February 12th into the second quarter, that comes at some substitution effect with their selling at the core. So I think predominantly any any reduction year over year is coming from that effort selling into Homes.com. Got it, thanks a lot.

Speaker Change: When you give them a fixed number of hours in the day when those costar apartments, loopnet salespeople shift over and start spending some amount of time selling.

So so were we.

Speaker Change #140: As we've said earlier, we do not anticipate growing the.

Speaker Change: Homes, Dotcom, which they did a lot in the in the period from February 12th into the second quarter.

Speaker Change #140: Our net investment in the product, but we do have high confidence that we are on on the on the road to building the best site and <unk>.

Speaker Change: That comes at some substitution effect, where they're selling in the core so I think predominantly.

Creating substantial value and we haven't changed our minds about that so we're going to continue investing at the same level, but you can see in our.

Speaker Change: Any any reduction year over year is coming from that effort selling into homes Dot com.

Speaker Change: Got it thanks a lot.

Speaker Change #140: Solid EBITDA beat this quarter.

Speaker Change: Thank you one moment for your next question.

Speaker Change #140: Sort of hit the NEDA are of that.

Jeffrey P. Meuler: Thank you. One moment for our next question, and this is from Jeff Mueller with Baird. Please proceed. Yeah, just.

Speaker Change: And as Jeff Mueller with Baird. Please proceed.

Speaker Change #140: That reinvestment period.

Speaker Change #140: And then Chris on that.

Speaker Change: Yes.

Chris: A question exiting thanks on the AOR question, we had provided previous guidance in the range of $475 million to $500 million.

Jeffrey P. Meuler: And then maybe if you could just talk through kind of the key factors that are going to determine.

Andrew C. Florance: Andy, maybe you could just talk through kind of the key factors that are going to determine the budget for the homes.com initiative over the next few years, just with this stutter in the net bookings. And then what's the exit rate assumed for ARR for homes.com in the revenue guidance, please? Thank you.

Jeffrey P. Meuler: The budget for the homes Dot Com initiative over the next few years just with this stutter in net bookings.

Chris: At the lower end of that range is where we still feel comfortable.

Speaker Change: And then.

Speaker Change: What's the exit rate assumed for IRR for homes Dot com in the revenue guidance. Please thank you.

Chris: Thank you one moment for our next question.

Chris: And it comes from the line of John Campbell with Stephens. Please proceed.

Christian M. Lown: So I'll let Chris, after I answer the first part, I'll let Chris answer the revenue guidance on exit AR. So I think that, you know, we are coming out with this homes.com product offering in our first full quarter with a good result, which is more than, when I look at the early stages of apartments.com, I believe we're running more than double the sales we ran at apartments.com, and it's a question of building it out. It's a little early in the first full quarter of launch to call it a stutter because, you know, you don't really have a reference point.

Speaker Change: So I'll, let <unk>.

Chris Lone: Chris After I answer the first part I'll, let Chris answer the revenue guidance on exit.

John Campbell: Thanks, Chris welcome to the CFO seat and congrats and looking forward to working with rich again.

Chris Lone: So I think that.

John Campbell: But for home is dot com I know the unaided brand awareness metrics. That's an important north star for you guys. I think we're all trying to get a better grip on the you know the rate of net investment spend in the years ahead. So maybe just a two part question here so first.

Chris Lone: Big picture.

Chris Lone: We are look coming out with us homes dot com product offering in our first full quarter with a good result, which is more than when.

Speaker Change #142: Should we be thinking about homes dot com, reaching that 50% level of the trigger point for spin relief and then secondly, you guys have obviously moved that automated ordered us up quickly.

Chris Lone: When I look at the.

Chris Lone: The early stages of apartments Dot com I believe we're running more than double the sales, we ran apartments dot com and its a question of building it out so.

Speaker Change #143: I mean basically next to nothing when you acquired it I think 27% now took homes Doc or excuse me of apartments com almost a decade to get to 50%, obviously youre spending multiple times more of homes dot com. So.

Chris Lone: It's a little early in the first full quarter of launch to call. It a stutter because.

Chris Lone: I don't really have a reference point.

Operator: So, we, as we've said earlier, we do not anticipate growing the solidity, but a beat this quarter, you sort of hit the nadir of that reinvestment period. And then Chris has got the AR question, actually. Thanks. On the AR question, we have provided previous guidance in the range of $475 to $500 million. And at the lower end of that range is where we still feel comfortable.

Speaker Change: So so were we.

Speaker Change: As we've said earlier, we do not anticipate growing the.

Andy: Andy rather than ask you an exact date for homes Dot com, which I Wouldnt expect maybe just directionally.

Speaker Change: Net investment in the product, but we do have high confidence that we are on on the on the road to building the best site and crew.

Speaker Change #144: Should we be thinking about that 50% level coming in the quarters ahead in the years ahead or should we be looking at that past apartments dot com path as a guide.

Well I do not believe it is on the same I believe it was growing much faster and we will continue to go much faster than apartments dot com. So we're constantly evolving the messaging just as we did with apartments dot com and fine tuning it and.

Speaker Change: Creating substantial value and we haven't changed our minds about that so we're going to continue investing at the same level, but you can see in our.

Speaker Change: Solid EBITDA beat this quarter.

Sort of hit the nadir of.

Andy: Shifting various value propositions out in the marketing.

That reinvestment period.

Andy: I would say that we anticipate similar to apartments dot com.

Speaker Change: And then Chris on that.

Chris Lone: A question exiting thanks on the <unk> question.

Speaker Change #100: And we had provided previous guidance in the range of $475 million to $500 million.

Andy: Relatively constant investment as you build this out.

Chris Lone: At the lower end of that range is where we still feel comfortable.

Andy: And only really increasing investment as we did with apartments dot com in the event that you can see a revenue and EBITDA financial result, that's clearly attractive and can be communicated to the investors but.

Speaker Change #101: Thank you one moment for our next question.

Chris Lone: <unk>.

John Robert Campbell: Thank you. One moment for our next question, and it comes from the line between John Campbell and Stephens.

Chris Lone: And it comes from the line of John Campbell with Stephens. Please proceed.

Andrew C. Florance: Please proceed. Thanks, and Chris, welcome to the CFO seat and congratulations, and I'm looking forward to working with Rich again. But for Homes.com, I know the unaided, you know, brand awareness metric is an important North Star for you guys. I think we're all trying to get a better grip on the, you know, rate of net resi investment spend in the years ahead. So maybe just a two part question here. First, should we be thinking about Homes.com reaching that, you know, 50% level as a trigger point for spend release? And then secondly, you guys obviously move that unaided awareness up quickly.

Andy: In building out something as valuable as.

John Robert Campbell: Thanks, Chris welcome to the CFO seat and congrats and looking forward to working with rich again.

Andy: The number one residential portal platform.

John Robert Campbell: I mean, basically next to nothing when you acquired it; I think 27% now took Homes.com, or excuse me, apartments.com, almost a decade to get to 50%. Obviously, you're spending multiple times more on Homes.com. So, Andy, rather than ask you an exact date for Homes.com, which I wouldn't expect, maybe just directionally, if you, you know, should we be thinking about that 50% level coming in the quarters ahead, you know, the years ahead, or should we be looking at that past path for apartments.com as a guide? Well, I do not believe it is the same.

Speaker Change #103: But for home is dot com.

Andy: It doesn't happen in one quarter. It is likely it is a multiyear effort just like apartments dot com and costar. So.

John Robert Campbell: Brand awareness metrics, that's an important north star for you guys. I think we're all trying to get a better grip on the rate of net investment spend in the years ahead. So maybe just a two part question here so first.

Andy: It is.

Andy: You know.

Should we be thinking about homes dot com, reaching that 50% level of the trigger point for spin relief and then secondly, you guys have obviously moved that updated ordered us up quickly.

Andy: The steady persistent consistent.

Andy: Making progress down the road and don't anticipate.

Speaker Change #104: I mean basically next to nothing when you acquired it I think 27% now took homes Doc or excuse me of apartments com almost a decade to get to 50%, obviously youre spending multiple times more of homes dot com. So Andy rather than ask you an exact date for homes Dot com, which I Wouldnt expect maybe just directionally.

Andy: Radical changes anytime soon and don't anticipate.

Andy: Increases that would slow EBITDA growth.

Andy: Okay. That's helpful. Thank you Andy.

Speaker Change #145: Thank you for a moment for our next question.

Speaker Change #145: And he is from the line of Nick Jones.

Speaker Change #105: Should we be thinking about that 50% level coming in the quarters ahead. The years ahead or should we be looking at that past apartments dot com path as a guide.

Nick Jones: Citizens JMP. Please proceed.

Nick Jones: Alright, Thanks for taking my question.

Andrew C. Florance: I believe it is going much faster and will continue to go much faster than apartments.com. So we're constantly evolving the messaging just as we did with apartments.com and fine-tuning it, and you know, shifting various value propositions out in the marketing. I would say that, similar to apartments.com, relatively constant investment as you build this out, and only really increasing investment, as we did with apartments.com, in the event that you can see a revenue and EBITDA financial result that's clearly attractive and can be communicated to the investors. But, building out something as valuable as the number one residential portal platform doesn't happen in one quarter.

Andrew C. Florance: Well I do not believe it is on the same I believe it was growing much faster and will continue to go much faster than apartments dot com. So we're constantly.

Nick Jones: Tomorrow at home Dot Com, you've done a great job driving traffic up meaningfully can you speak to kind of as you get more leverage kind of a balance between may be shifting focus of driving more app downloads or time on app.

Andrew C. Florance: And the messaging just as we did with apartments dot com and fine tuning it and.

Speaker Change #147: In terms of getting kind of maybe cheaper forms of traffic.

Andrew C. Florance: Shifting various value propositions out in the marketing.

Speaker Change #147: Upper funnel advertising or social or things like that and then a follow up.

Andrew C. Florance: I would say that we anticipate similar to apartments dot com.

Speaker Change #148: Sure so.

Andrew C. Florance: Relatively constant investment as you build this out.

Speaker Change #148:

Speaker Change #149: On the App download side.

Speaker Change #149: We are.

Andrew C. Florance: And only really increasing investment as we did with apartments dot com in the event that you can see a revenue and EBITDA financial result, that's clearly attractive and can be communicated to the investors but.

Speaker Change #149: Our focus first and foremost on web mobile because that is the fastest way to collect traffic that's the most predominant platform.

It reduces friction people arent downloading your apt to adopt new products. So as we're in here in the first couple of months of the new product.

Andrew C. Florance: In building out something as valuable as.

Speaker Change #149: Our design and development teams prioritize that.

Andrew C. Florance: The number one residential portal platform it doesn't happen in one quarter. It is likely it is a multiyear effort just like apartments dot com and costar. So.

Speaker Change #149: I'm sure you've had the experience if you had to optimize everything around that web mobile platform. It's a great experience and that's what we're hearing in the focus group from consumers is that hands down they prefer it over app or web mobile of any of our competitors they describe it as clean.

Andrew C. Florance: It is likely to be a multi-year effort, just like Apartments.com and CoStar. It is. You know, the steady, persistent, consistent, making progress down the road and don't anticipate radical changes anytime soon and don't anticipate increases that would slow you a bit of growth. Okay, that's helpful.

John Robert Campbell: Thank you, Andy. Thank you. One moment for our next question, and it's from the line of Nick Jones, with Citizens JMP: please proceed.

It is.

Andrew C. Florance: You know.

Andrew C. Florance: The steady persistent consistent.

Speaker Change #149: They describe it as fast they describe it as a.

Andrew C. Florance: Making progress down the road and don't anticipate.

Speaker Change #149: Offering a lot more information than any other platform and I describe it as having the benefit of being able to ask the listing agent a quick question without being hartzell by someone to a.

Andrew C. Florance: A radical changes anytime soon and don't anticipate.

Speaker Change #106: Increases that would slow EBITDA growth.

Speaker Change #106: Okay. That's helpful. Thank you Andy.

Speaker Change #149: To something you aren't looking to buy so.

Speaker Change #107: Thank you for a moment for our next question.

Speaker Change #150: I'm sure you've been annoyed before when you're trying to look at something in a web mobile app and up Pops, the thing, saying, Okay stopped doing and go into download an app not very popular and.

Speaker Change #107: Yeah.

Speaker Change #107: And he is from the line of Nick Jones.

Speaker Change #108: With citizens JMP. Please proceed.

Nicholas Freeman Jones: Hey, thanks for taking the questions. There are two more on homes.com. You've done a great job driving traffic up meaningfully. Can you speak to kind of as you aim to get more leverage, kind of the balance between maybe shifting focus to driving more app downloads or time on app in terms of getting kind of maybe cheaper forms of traffic, you know, kind of upper funnel advertising or social or things like that. And then a follow, Sure, so, on the app download side, we focus first and foremost on web mobile because that is the fastest way to collect traffic. That's the most predominant platform. It reduces friction.

Nicholas Freeman Jones: Alright, Thanks for taking my question.

Speaker Change #151: When we look at numbers that our friends at Google have shared with us.

Nicholas Freeman Jones: Tomorrow at <unk> Dot Com, we've done a great job driving traffic up meaningfully can you speak to kind of as you get more leverage kind of a balance between maybe shifting focus of driving more app downloads or timeline or app.

Speaker Change #151: They are pretty compelling and they show that.

Speaker Change #151: Competing sites are pulling the minimus traffic from their app downloads and that's still everyone is predominantly competing in the web mobile environment.

Speaker Change #110: In terms of getting kind of maybe cheaper forms of traffic.

Speaker Change #111: Kind of upper funnel advertising or social or things like that and then a follow up.

Speaker Change #151: So we're doing the app side and I get it if you can get everyone hooked on an app.

Speaker Change #151: You are less dependent on buying SCM traffic or less dependent on organic traffic.

Speaker Change #112: Sure so.

Speaker Change #112:

On the App download side.

Speaker Change #151: But for.

Speaker Change #151: For everyone in the industry. It is overwhelmingly web mobile and so we're we're we're keeping up slightly behind the web mobile, we're keeping up app parallel functionality.

Speaker Change #112: We are.

Speaker Change #112: Our focus first and foremost on web mobile because that is the fastest way to collect traffic. That's the most predominant platform. It reduces friction people arent downloading your app to adopt new products. So as we're in here in the first couple months of the new product.

Andrew C. Florance: People aren't downloading your app to adopt a new product. So as we're here in the first couple months of the new product, our design and development teams prioritize that. I'm sure you've had the experience.

Speaker Change #151: But right now we are basically about traffic attainment and I'm I am thrilled with.

Speaker Change #151: The work our humps product team has done and the development team has done in building a fantastic web mobile and so while we're snag in traffic from other folks we're going on the fastest most fluid platform, which is web mobile.

Speaker Change #112: Our design and development teams prioritize that.

Surinder Thind: What we're not doing is stealing everybody's leads and reselling them to a handful of lower-end age hits. So that does not mean that we're not creating bioregency and we're not focusing on buyers. It means we're doing it more intelligently, and we're doing it in a way that resonates with the industry long term. And frankly, I'm really excited about the fact that I am becoming more and more confident that we have the vastly superior model. And I'm seeing one of our competitors starting to figure that out and attempting to pivot their business, which requires cannibalization of their business.

Speaker Change #112: I'm sure you've had the experience if you had to optimize everything around that web mobile platform. It's a great experience and that's what we're hearing in the focus group from consumers is that hands down they prefer it over app or web mobile of any of our competitors they describe it as clean.

Andrew C. Florance: If you optimize everything around that web mobile platform, it's a great experience. And that's what we're hearing in the focus group from consumers is that, hands down, they prefer it over the app or web mobile platform of any of our competitors. They describe it as clean.

Speaker Change #151: Okay.

Speaker Change #151: We're marketing anywhere and everywhere, we can pull people.

Speaker Change #151: At the most cost effective price so yeah, we're on.

Andrew C. Florance: They describe it as fast and as offering a lot more information than the other platforms. And they describe it as having the benefit of being able to ask the listing agent a quick question without being hard sold by someone on something you weren't looking to buy. So, I'm sure you've been annoyed before when you're trying to look at something in a web mobile app and up pops the thing saying, okay, stop doing that and go into download an app. Not very popular.

Speaker Change #115: I describe it as fast they describe it as.

If you can talk about digital marketing or streaming or anything social we're on.

Speaker Change #112: Offering a lot more information than any other platform and I describe it as having the benefit of being able to ask the listing agent a quick question without being hartzell by someone to a.

Speaker Change #151: Virtually everything I'm sure you see us everywhere.

Speaker Change #152: I sure do.

Speaker Change #153: And then I guess, maybe a bigger picture question.

Speaker Change #112: To something you aren't looking to buy so.

Speaker Change #154: I think earlier you alluded to maybe buy are related or not as valuable as getting listen relationship.

Speaker Change #114: I'm sure you've been annoyed before when you're trying to look at something in a web mobile app and up Pops, the things, saying, okay stopped doing and go into download an app not very popular and.

Surinder Thind: And I see the other competitor not having figured out where they are and what's happening, and that's wonderful. So we're not saying we're stepping away from buyers or buyer agency; far from it. We're just generating buyer agent more harm, buyer agency more harmoniously with the way the industry has historically done it in a more sustainable advantage way over the long term.

Speaker Change #155: Makes sense, but then how do you balance.

Speaker Change #156: I guess philosophically how are you going to balance the value of the platform to essentially homebuyers, which I guess it sounds like.

Andrew C. Florance: When we look at the numbers that our friends at Google have shared with us, they're pretty compelling, and they show that competing sites are pulling de minimis traffic from their app downloads, and it's still everyone predominantly competing in the web mobile environment. So we're doing the app side, and I get it. If you can get everyone hooked on an app, you are less dependent on buying SEM traffic or less dependent on organic traffic. But for everyone in the industry, it is overwhelmingly web and mobile.

Speaker Change #113: When we look at numbers that our friends at Google have shared with us.

Speaker Change #157: Our view is less valuable than providing kind of.

Speaker Change #113: They are pretty compelling and they show that.

Speaker Change #157: Upper funnel advertising for agents to go win more listings because over time.

Speaker Change #113: Competing sites are pulling the minimus traffic from their app downloads and that's still everyone is predominantly competing in the web mobile environment.

Speaker Change #158: If the marketplace is that balanced and you can't continue to draw homebuyers.

Surinder Thind: Thank you for giving me a chance to clarify. Thank you.

Speaker Change #159: Do you continue to drive the Rois.

Speaker Change #113: So we're doing the app side and I get it if you can get everyone hooked on an app.

Speaker Change #160: The focus is really on driving lifting weights you followed the question a little while yet, but so I kind of heard two different comments on the call today. So I.

Operator: And that's all the time we have for Q&A today.

You are less dependent on buying SCM traffic or less dependent on organic traffic, but.

Andrew Florance: I will pass the call back to Andy Florence for final comments.

Speaker Change #161: Wouldn't hold you at fault for misinterpreting my.

Andrew Florance: Well, thank you everybody for joining us today for the call, and Chris, welcome aboard. I'm you, no offense to Scott Wheeler, who I hope is listening today with a scotch in his hand, but Scott was good; Chris is clearly better, but so be it.

For everyone in the industry. It is overwhelmingly web mobile and so where we're at.

Speaker Change #161: Bad formulation of the words, apparently but.

Speaker Change #162: Our first and foremost priority is to produce the best site possible for homebuyers, which I believe were doing.

Nicholas Freeman Jones: And so we're keeping up, slightly behind the web mobile; we're keeping up with app parallel functionality. But right now, we are basically about traffic attainment, and I am thrilled with... The work our Homes product team has done and the development team has done building a fantastic Web mobile. And so while we're snagging traffic from other folks, we're going on the fastest, most fluid platform, which is Web mobile. Oh, and social. We're marketing anywhere and everywhere we can pull people at the most cost-effective price. So yeah, we're on. If you can talk about digital marketing or streaming or anything social, we're on virtually everything. I'm sure you see us everywhere.

Speaker Change #113: Keeping up slightly behind the web mobile, we're keeping up app parallel functionality.

Speaker Change #162: And so the Homebuyer comes first first and first and second and third and fourth right.

Speaker Change #113: But right now we are basically about traffic attainment and I am thrilled with.

Andrew Florance: And then Cindy, thank you for all the calls you've done. Cindy will be rotating to focusing in her new role as chief accounting officer.

Speaker Change #162: And so that's what we're doing.

Speaker Change #113: The work our humps product team has done and the development team has done in building a fantastic web mobile and so while we're snag in traffic from other folks we're going on the fastest most fluid platform, which is web mobile.

Speaker Change #163: What we're trying to end and then and for sure I firmly believe that the your listing your lead model is preferred by sellers because when they make that important decision to hire a real estate agent to help them get the best result for selling their most important asset their home.

Andrew Florance: And then we've gone to the bullpen and we're bringing the ever-famous Rich Somonelli back to sit in the investor relationship. So next next quarter, I hope you'll be joining us so we can update you, and we'll have Mr. Somonelli back, and we'll ask him to play a brief valid. We're going to ask him to set the preamble to music. Can you do that, Rich?

Speaker Change #113: Okay.

Speaker Change #113: We're marketing anywhere and everywhere, we can pull people.

Speaker Change #163: They want their real estate agent they hired to answer that first question from a potential lead they don't want it to go to someone who has never seen their home knows nothing about their neighborhood. They want the seller and they want the selling agent to get and Thats, what youre less senior lead model. We have has the agents like the year listing your lead model because they want.

Speaker Change #113: At the most cost effective price so yeah, we're on.

Speaker Change #113: If you can talk about digital marketing or streaming or anything social we're on.

Speaker Change #113: Virtually everything I'm sure you see us everywhere.

Andrew Florance: Thank you all for joining us. Look forward to talking to you guys next quarter.

Speaker Change #116: I sure do.

Andrew C. Florance: I sure do. And then I guess maybe a bigger picture question. You know, I think earlier you alluded to buyer leads being not as valuable as getting listing leads, which is, you know, makes sense. But then how do you balance, um, I guess philosophically, how are you going to balance the value of the platform to essentially home buyers, which I guess sounds like are viewed as less valuable than providing kind of you know, upper funnel advertising for agents to go win more listings?

Operator: And thank you all for participating, and you may now disconnect.

Speaker Change #117: And then I guess, maybe a bigger picture question.

Speaker Change #163: Get the leads off their listings the biggest source of buyer agency leads actually comes from having listing so when someone.

Speaker Change #118: I think earlier, you alluded to maybe buy or lease or not as valuable as getting listing leadership.

Speaker Change #163: Calls your calls on your sale listing youre generating buyer leads because they are nine out of 10 times. They are not buying the house. They first Colin but as an agent you can get them as a buyer agent from other homes, because you're an expert in the category in the neighborhood, they're familiar with you also get referral commissions and.

Speaker Change #119: But then how do you balance.

Speaker Change #120: I guess philosophically how are you going to balance the value of the platform to essentially homebuyers, which I guess it sounds like.

Speaker Change #121: Viewed as less valuable than providing kind of.

Andrew C. Florance: Because over time, if the marketplace isn't balanced, and you can't continue to draw home buyers, how do you continue to drive the ROIs if the focus is really on driving listing rates? It's a little convoluted, but I kind of heard two different comments on the call today.

Speaker Change #121: Upper funnel advertising for agents to go win more listings because over time.

Speaker Change #122: If the marketplace is that balanced and you can't continue to draw homebuyers.

Speaker Change #163: The leads you refer off your listings come back to you as referrals from other People's listings.

Speaker Change #123: We continue to drive the Rois.

Speaker Change #163: What we are.

Speaker Change #164: What we're not doing is stealing everybody's leads and reselling them to a handful of lower end agents.

Speaker Change #124: The focus is really on driving listing that you followed the question a little while yet, but so I kind of heard two different comments on the call today. So.

Nicholas Freeman Jones: So I wouldn't hold you at fault for misinterpreting my bad formulation of the words, but our first and foremost priority is to produce the best site possible for home buyers, which I believe we're doing. And so the home buyer comes first, first, and first, and second, third, and fourth, right? And so that's what we're doing. What we're trying, and then, and for sure, I firmly believe that the You're Listing Your Lead model is preferred by sellers, because when they make that important decision to hire a real estate agent to help them get the best result for selling their most important asset, their home, they want that real estate agent they hired to answer that first question from a potential lead. They don't want it to go to someone who has never seen their home or knows nothing about their neighborhood.

Speaker Change #125: Wouldn't hold you at fault for misinterpreting my.

Speaker Change #164: So that does not mean that we're not creating by our agency and we're not focusing on buyers. It means we're doing it more intelligently and we're doing it in a way that resonates with the industry long term and frankly I'm really excited about the fact that I am becoming more.

Speaker Change #125: Bad formulation of the words, apparently but.

Speaker Change #126: Our first and foremost priority is to produce the best site possible for homebuyers, which I believe were doing.

Speaker Change #126: And so the Homebuyer comes first first and first and second and third and fourth right.

More and more confident that we have the vastly superior model.

Speaker Change #126: And so that's what we're doing.

Speaker Change #126: What we're trying to and then and for sure I firmly believe that the your listing your lead model is preferred by sellers because when they make that important decision to higher real estate agent to help them get the best result for selling their most important asset their home they want that real.

Speaker Change #164: And I'm seeing one of our competitors starting to figure that out and attempting to pivot their business, which requires cannibalization of their business.

Speaker Change #164: And I see the other competitor.

Speaker Change #164: Not having figured out where they are and what's happening and that's wonderful.

We're not saying, we're stepping away from buyers or buyer agency far from it we're just generating buyer agent more harmed by our agency more harmoniously with the way the industry has historically done it in a more sustainable advantaged way over the long term.

Speaker Change #126: Estate agent they hired to answer that first question from a potential lead they don't want it to go to someone who has never seen their home there's nothing about their neighborhood. They want the seller and they want the selling agent to get and Thats, what youre less senior lead model. We have has the agents like the year listing your lead model because they want to get the <unk>.

Speaker Change #164: But thank you for giving me a chance to clarify.

Speaker Change #165: Alright, thank you.

Speaker Change #126: <unk> off their listings the biggest source of buyer agency leads actually comes from having listings. So when someone calls your calls on your sale listing youre generating buyer leads because they are nine out of 10 times theyre not buying the house, they first Colin but as an agent you can get them.

Thank you.

Speaker Change #165: That's all the time, we have for Q&A today, I will pass the call back to Andy Florance for final comments.

Andy Florance: Well, thank everybody for joining us today for the call and Chris.

Andy Florance: Welcome aboard.

Speaker Change #171: No offense to Scott Wheeler, who I hope is listening today with a scotch in his hand, but.

Speaker Change #126: As a buyer agent some other homes because you're an expert in the category in the neighborhood. They're familiar with you also get referral commissions and the leads you refer off your listings come back to you as referrals from other People's listings.

Speaker Change #166: Scott was good Chris is clearly better.

Speaker Change #166: But so be it and then Cindy thank you for all that.

Speaker Change #166: <unk> done Sandy will be.

Speaker Change #127: What were.

What we're not doing is stealing everybody's leads and reselling them to a handful of lower and age.

Speaker Change #166: Rotating to focusing.

Cindy Cindy: In her new role as Chief Accounting Officer.

Speaker Change #168: And then we've gone to the bullpen and we're bringing the ever famous rich simonelli back to CIT in the Investor relations seat so.

Speaker Change #127: So.

Speaker Change #128: That does not mean that we're not creating by our agency and we're not focusing on buyers. It means we're doing it more intelligently and we're doing it in a way that resonates with the industry long term.

Cindy Cindy: Next.

Next quarter, we hope you'll be joining us. So we can update you and we will have Mr Summer Natalie back and we'll ask him to play.

Frankly, I am really excited about the fact that I am becoming more and more confidence that we have the vastly superior model.

Speaker Change #170: Brief ballad, we're going to ask him to set the preamble to music do you think you can do that rich.

Speaker Change #169: Thank you all for joining us look forward to talking to you guys next quarter.

Speaker Change #128: And I'm seeing one of our competitors starting to figure that out and attempting to pivot their business, which requires cannibalization of their business.

Cindy Cindy: And thank you for participating you may now disconnect.

And I see the other competitor.

Speaker Change #128: Not having figured out where they are and what's happening and that's wonderful.

Speaker Change #128: We're not saying, we're stepping away from buyers or buyer agency far from it we're just generating buyer agent more harm buyer agency more harmoniously with the way the industry has historically done it in a more sustainable advantaged way over the long term.

Speaker Change #128: Yeah.

Speaker Change #129: Thank you for giving me a chance to clarify.

Speaker Change #130: Alright, thank you.

Speaker Change #130: Thank you and that's all the time, we have for Q&A today, I will pass the call back to Andy Florance for final comments.

Andrew C. Florance: Well, thank you everybody for joining us today for the call and Chris.

Chris Lone: Welcome aboard.

Speaker Change #131: Thank you no offense to Scott Wheeler, who I hope is listening today with our Scotch in his hand, but.

Speaker Change #132: <unk> was good Chris is clearly better.

Speaker Change #132: But so be it and then Cindy Thank you for all the.

Sandy: Because you've done sandy will be.

Sandy: Rotating to focusing.

Cindy: In her new role as Chief Accounting Officer.

Speaker Change #135: And then we've gone to the bullpen and we're bringing the ever famous rich Salmonella back to CIT in the Investor relations seat so.

Cindy: Next.

Speaker Change #136: Next quarter, we hope you'll be joining us. So we can update you and we will have Mr Summit, Natalie back and we will ask him to play.

Speaker Change #137: Brief ballad, we're going to ask him to set the preamble to music do you think you can do that rich.

Thank you all for joining us look forward to talking to you guys next quarter.

Speaker Change #138: And thank you for participating you may now disconnect.

Speaker Change #138: Okay.

Speaker Change #138: [music].

Speaker Change #138: Okay.

Speaker Change #138: Yeah.

Speaker Change #138: [music].

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Speaker Change #139: Good day, everyone and thank you for attending my welcome to this Q2 2020 for Costar Group Earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to participate you will need to press star one on your <unk>.

Andrew C. Florance: They want the seller, they want the selling agent to get, and that's what the You're Listing Your Lead model we have. The agents like the You're Listing Your Lead model because they want to get leads off their listings. The biggest source of buyer agency leads actually comes from having listings. So when someone calls your listing, you're generating buyer leads because 9 out of 10 times, they're not buying the house they first call on. But as an agent, you can get them as a buyer agent, show them other homes because you're an expert in the category in the neighborhood they're familiar with.

Andrew C. Florance: You also get referral commissions, and the leads you refer off your listings come back to you as referrals from other people's listings. What we're not doing is stealing everybody's leads and reselling them to a handful of lower-end agents. So that does not mean that we're not creating buyer agency and we're not focusing on buyers. It means we're doing it more intelligently, and we're doing it in a way that resonates with the industry long-term. And frankly, I'm really excited about the fact that I am becoming more and more confident that we have a vastly superior model.

Speaker Change #140: Allophone, you will Dan here a message advising your hand this waste to withdraw your question simply press Star one again.

Please be advised that today's conference is being recorded.

Andrew C. Florance: And I'm seeing one of our competitors starting to figure that out and attempting to pivot their business, which requires cannibalization of their business. And I see the other competitor not having figured out where they are and what's happening. And that's wonderful.

Cyndi Eakin: I would now like to hand, it over to the head of Investor Relations Cindy akin. Please proceed.

Andrew C. Florance: So we're not saying we're stepping away from buyers or buyer agency, far from it. We're just generating more harm through buyer agency, more harmoniously, with the way the industry has historically done it in a more sustainable, advantaged way over the long term. Thank you for giving me a chance to clarify.

Cyndi Eakin: Thank you Carmen good evening and thank you all for joining us to discuss our second quarter 2024, right out of the Costar group before I turn the call over to Andy Florance, Costar, CEO and founder Chris Lown, Our CFO I would like to review our Safe Harbor statement.

Speaker Change #141: Certain portions of the discussion today may contain forward looking statements, including the company's outlook and expectations for the third quarter and full year 2024 based on current beliefs and assumptions forward looking statements involve many risks uncertainties assumptions estimates and other factors that can cause actual results to differ materially from such.

Speaker Change #141: Important factors that can cause actual results to differ include but are not limited to those stated in Costar group's press release issued earlier today and in our filings with the SEC, including our most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q under the heading risk factors all four.

Speaker Change #141: We're looking statements are based on the information available to Costar on the date of this call Costar assumes no obligation to update these statements whether as a result of new information future events or otherwise.

Speaker Change #141: Conciliation to the most directly comparable GAAP measure of any non-GAAP financial measure discussed on this call are shown in detail in our press release release issued today, along with definitions for those terms. The press release is available on our website located at Costar group Dot Com under press room.

As a reminder, today's conference call is being webcast and the link is also available on our website under investors.

Speaker Change #141: Please refer to today's press release on how to access the replay of this call.

Operator: Thank you. Thank you. And that's all the time we have for Q&A today.

Speaker Change #141: And with that I would like to turn the call over to our founder and CEO Andy Florance.

Andrew C. Florance: Thank you Cindy Cindy I would note that that was the most upbeat reading of the preamble I've heard ever which suggest to me that you are looking forward to turning over your duties.

Andrew C. Florance: I will pass the call back to Andy Florence for a final comment. Well, thank you, everybody, for joining us today on the call. And, Chris, welcome aboard. Thank you. No offense to Scott Wheeler, who I hope is listening today with a scotch in his hand, but Scott was good, but Chris is clearly better.

Andrew C. Florance: So good evening and thank you for joining us for Costar group's second quarter.

Andrew C. Florance: But so be it. Next quarter, we hope you'll be joining us so we can update you, and we'll have Mr. Simonelli back, and we'll ask him to play a brief ballad. We're going to ask him to set the preamble to music.

Speaker Change #142: Earnings call.

Speaker Change #143: Second quarter 2024 revenue was 678, million% to 12% increase year over year coming in above the midpoint of our guidance range and in line with consensus estimates.

Speaker Change #143: 2 billion dollar businesses.

Speaker Change #143: Continuing to deliver double digit year over year revenue growth with apartments, dot com growing 18% and costar growing 10% company.

Speaker Change #143: Company net new bookings were 67 million in the second quarter was 79% of our net new bookings coming from sales of our commercial real estate products and 21% from net new bookings of homes Dot com memberships.

Speaker Change #143: Adjusted EBITDA was $41 million, which was well ahead of our guidance of $5 million to $10 million and consensus estimates of $10 million.

Speaker Change #143: Our commercial margins remained strong delivering over 40% quarter and are expected to expand throughout the remainder of the year.

Speaker Change #143: Our average monthly unique visitors to our global websites reached a record of $183 million in the second quarter. According to Google analytics, which is up 81% over the prior year.

Speaker Change #144: The homes Dot Com network delivered 148 million average monthly unique visitors for the second quarter. According to Google analytics, which was an increase of 73% over the same quarter last year.

Speaker Change #144: Our homes Dot Com site alone delivered 99 million average monthly unique visitors for the quarter an increase of 197%.

Operator: Do you think you can do that, Rich? Thank you all for joining us. Look forward to talking to you guys next quarter. And thank you all for participating. You may now disconnect. [inaudible] ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good day, everyone, and thank you for standing by.

Speaker Change #145: So what makes you give it at 197% over the same quarter a year ago. According to Google analytics.

Operator: Welcome to this Q2 2024 CoStar Group earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To participate, you will need to press star one one on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, simply press star one one again.

Cyndi Eakin: Please be advised that today's conference is being recorded. I would now like to hand it over to the head of investigations, Cyndi Eakin. Please proceed. Thank you, Carmen. Good evening, and thank you all for joining us to discuss the second quarter 2024 results of the CoStar Group. Before I turn the call over to Andy Florence, CoStar's CEO and founder, and Chris Lown, our CFO, I would like to review our Safe Harbor Statement.

Cyndi Eakin: Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the third quarter and full year 2024, based on current beliefs and assumptions. Such forward-looking statements involve many risks, uncertainties, assumptions, estimates, and other factors that can cause actual results to differ materially from such statements.

Speaker Change #144: We believe that a.

Complete site Centrex census style tool like Google analytics is more accurate than user centric panel estimate accounts generated by firms such as comscore or SCM rush.

Speaker Change #144: I believe tools like Google analytics, or like an election result, whereas a tool like SCM, Russia Comscore is more like an election poll.

Speaker Change #144: If I have the election results I choose to report those rather than the sample poll result.

Speaker Change #146: Our leading competitors in the U S residential portal space combine a report traffic associated with home sales home rentals rural homes land sales and apartment rentals and their traffic numbers for that reason I believe the most accurate and best apples to apples comparison is comparing the traffic from our homes network of sites to the.

Andrew C. Florance: Our $2 billion businesses continue to deliver double-digit year-over-year revenue growth, with Apartments.com growing 18% and CoStar growing 10%. Company net new bookings were $67 million in the second quarter, with 79% of our net new bookings coming from sales of our commercial real estate products and 21% from net new bookings of homes.com membership. Adjusted EBITDA was $41 million, which was well ahead of our guidance of $5 to $10 million and consensus estimates of $10 million.

Speaker Change #144: <unk> traffic of these three leading competitors.

Andrew C. Florance: Our commercial margins remain strong, delivering over 40% in the quarter and are expected to expand throughout the remainder of the year. Our average monthly unique visitors to our global websites reached a record of 183 million in the second quarter, according to Google Analytics, which is up 81% over the prior year. The Homes.com network delivered 148 million average monthly unique visitors for the second quarter, according to Google Analytics, which was an increase of 73% over the same quarter last year.

Andrew C. Florance: Our homes.com site alone delivered 99 million average monthly unique visitors for the quarter, an increase of one hundred and ninety seven percent, will make sure to get that 197% over the same quarter a year ago, according to Google Analytics. We believe that a complete site-centric census-style tool like Google Analytics is more accurate than user-centric panel estimate counts generated by firms such as ComScore or SEMrush. I believe tools like Google Analytics are like an election result, whereas a tool like SEMrush or ComScore is more like an election poll. If I have the election results, I choose to report those rather than the sample poll results.

Speaker Change #144: Our homes Dotcom network includes our sites with home sales home rentals rural homes land sales in apartment rentals.

Speaker Change #144: The most recent reported traffic numbers, we have for the leading residential portal competitors is from their first quarter results. So the comparisons not perfect.

Andrew C. Florance: Our leading competitors in the U.S. residential portal space combine and report traffic associated with home sales, home rentals, rural homes, land sales, and apartment rentals and their traffic numbers. For that reason, I believe the most accurate and best apples-to-apples comparison is comparing the traffic from our network of sites to the reported traffic of these three leading competitors. Our Homes.com network includes our sites for home sales, home rentals, rural homes, land sales, and apartment rentals.

Speaker Change #144: Ah report homes Dot Com network traffic of 148 million average monthly unique visitors for the second quarter is fast approaching <unk> first quarter reported traffic of 217 million average monthly unique visitors the.

Andrew C. Florance: The most recent reported traffic numbers we have from the leading residential portal competitors are from their first quarter results, so the comparison is not perfect. However, our report, homes.com, network traffic of 148 million average monthly unique visitors for the second quarter is fast approaching Zillow's first quarter reported traffic of 217 million average monthly unique visitors. The Holmes Network now has solidly lapped Realtor's reported first quarter $72 million average monthly unique visitors and has thrice lapped Redfin's reported first quarter $49 million monthly unique visitors.

Speaker Change #144: The homes network now has solidly lapped Realtors reported first quarter 72 million average monthly unique visitors.

Speaker Change #144: And has thrice slapped redfin reported first quarter 49 million monthly unique visitors.

Andrew C. Florance: These solid traffic numbers far exceed our traffic performance expectations for this early in the development of the new Homes.com. The second quarter was our first full quarter of selling Homes.com memberships, and since mid-February, we've sold over $55 million in net new bookings. The first four full months of selling homes.com far exceeds the launch sales pace of any of our prior product launches. By comparison, it took two years after the launch of Apartments.com to accumulate the level of net new bookings that Home achieved in its first full four months of sales.

Speaker Change #147: These solid traffic numbers far exceed our traffic performance expectation for this we're early in the development of the new homes Dot com.

Speaker Change #144: The second court or the second quarter was our first full quarter of selling homes Dot com memberships.

Speaker Change #144: And since mid February we have sold over 55 million in net new bookings.

Speaker Change #144: First four full months selling homes dot com far exceeds the launch sales pace of any of our prior product launches launches.

By comparison it took two years after launch of apartments dot com to accumulate the level of net new bookings at home has achieved and its first full four months of sales.

Andrew C. Florance: The solid bookings numbers are exceptional for this early in the development of the new Homes.com. We now have 10,200 member agents on the platform, and 86% are on 12-month contracts. Marketing efforts continue to be successful, delivering almost 10 billion consumer impressions and 21,000 commercial placements since we launched the product. This is across broadcast, cable TV, streaming audio and video, digital and social media, and high-profile sponsorship. Unaided brand awareness continues to increase and is now at 27 percent, up from our pre-launch baseline of four percent. Over the past month or so, I attended focus groups with agents and consumers in Atlanta, Chicago, Irvine, and Nashville. Our growth and unpaid awareness were clear.

Speaker Change #144: The solid bookings numbers are exceptional for this early in development of the new homes Dot com.

Speaker Change #144: Now have 10200 member agents on the platform and 86% of our own 12 month contracts.

Speaker Change #144: Marketing efforts continue to be successful delivering almost 10 billion consumer expression impressions and 21000 commercial placements since we launched the product.

Speaker Change #144: This across broadcast cable TV streaming audio and video digital and social media and high profile sponsorships.

Unaided brand awareness continues to increase and is now at 27% up from our prelaunch baseline of 4%.

Speaker Change #148: Over the past month, or so I attended focus groups with agents and consumers in Atlanta, Chicago, Irvine and Nashville.

Speaker Change #148: Our growth in unaided awareness was clear agents reiterated that they prefer our business model of your listing our lead ear listing your lead definitely your listing your lead.

Andrew C. Florance: Agents reiterated that they prefer our business model of you're listing our lead. You're listing your lead. Definitely you're listing your lead.

Speaker Change #148: We have more work to do to make them aware of that preferred business model and we will do that work and each session. The moderator asked agents consumers to spend a few minutes using the homes dotcom site.

Speaker Change #149: The response was fantastic the overwhelming majority of participants said that homes Dot com is the better home search site than competing sites.

Andrew C. Florance: The overwhelming majority of participants said that homes.com is a better home search site than competing sites. Common themes on the site are clean, it's beautiful, ad-free, has more information than other sites have, has all the information you need in one spot, and participants liked that the listing agent is clearly visible, is not obscured, and a listing agent who knows the most about the property can be readily reached to ask quick and simple questions.

Common themes with the site is clean.

Speaker Change #150: It's beautiful AD free has more information than others sites have.

Speaker Change #151: Has all the information you need in one spot.

And participants light that the listing agent is clearly visible is not obscured and a listing agent who knows the most about the property.

Speaker Change #151: Can be readily reach to ask quick and simple questions of.

Andrew C. Florance: Agents responded very well to our value proposition, and two agents really stood out to me as they raved about how much value they were getting from their Homes.com membership. They stated that they were using the advantages Homes.com membership offered to win more exclusive lists. So I'd like to quote one Chicago participant named Laura.

Speaker Change #152: Agents responded very well to our value proposition to agents really stood out to me as they raved about how much value, they're getting from their homes dotcom membership.

They said that they were using the advantages homes dot com membership offered to win more exclusive listings.

Speaker Change #152: So I'd like to quote one Chicago participant named Laura.

Laura: She said.

Laura: Couple of months ago, I became a premier agent on homes Dot Com my listings that it used to get 6789 10 10.

Speaker Change #153: 1000, 10000 views and now get like 2 million views on my listings.

Speaker Change #154: And it's a listing tool she went on to say so that she can then say the seller well go up and look up Orland Park and I'll show up first if I've got a listing there.

Speaker Change #154: And so then she goes on to say I say to the seller. My listing has 2 million views look at every other one after that and they've got like 3004 thousand views and I've got 2 million views.

Andrew C. Florance: And they've got like three thousand, four thousand views. And I've got two million views. I'm like, hashtag winning.

Speaker Change #154: I'm like hash tag winning.

Andrew C. Florance: She goes on to say, "It's a listing tool. So when a seller asks, what are you going to do differently than everyone else? Most people will be saying the same things.

Speaker Change #154: She goes on to say, it's a listing tool. So when a seller asks what are you going to do differently than everyone else.

Speaker Change #155: Most people will be saying the same things in and I can say oh homes dot com pull up a neighborhood and I show up first.

Speaker Change #155: Becker and agent from California said something similar she said.

Speaker Change #157: In my actual listing presentation. She goes on to say I do have marketing information about getting 60 X more views on my listings since I'm a pro member on homes Dot Com and I think that has helped me secure listings.

Speaker Change #158: This was the first platform. She says that they had enough confidence in that I actually paid for a pro membership.

Andrew C. Florance: Another agent from Columbia, South Carolina, said, within two days of signing up for my homes.com membership, I secured a new listing that went under contract in less than a week. Another agent from Spokane, Washington, said, Since I joined homes.com, I've watched the amount of traffic on my listings increase 30 to 40 times compared to what I was getting anywhere else. We built an analysis, actually, Jerry Rogers and his team built an analysis to understand the advantage member agents were having in winning new listings as compared to non-member agents.

Speaker Change #159: Another agent from Columbia, South Carolina said within two days of signing up for my homes Dotcom membership are secured a new listing that went under contract in less than a week.

Speaker Change #160: Another agent from Spokane, Washington said since I've joined homes Dotcom I've watched the amount of traffic on my listings increased 30% to 40 times compare to us getting anywhere else.

We built an analysis actually J Rogers and team built analysis to understand the advantage member agents were having in winning new listings as compared to non member agents.

Speaker Change #161: We create cohorts of members based upon the city tier size, there and the number of listings. They had at the beginning of the study period and the average list price of their listings.

Speaker Change #161: We compared members new listing wind count to nonmembers wins for each month from March through June.

Speaker Change #161: This created a total of 192 cohorts 192 cohorts on average members, 151% more new listings then did non members.

Speaker Change #162: More importantly to me in 95% of the 192 cohorts members outperformed non member agents. This is very important and the core point, winning new listings as a primary objective for real estate agents, we believe that the evidence is overwhelming.

Speaker Change #162: That our product is enabling agents to achieve that core goal, we believe that the potential ROI for member agents is phenomenal.

Speaker Change #162: The average agent is getting 17 million annualized impressions for their listing and profile on homes Dot Com member listings get 46 times more exposure on average than non member listings.

Speaker Change #162: Another analysis, we ran indicated that on average member agents are 20% more likely to sell the home in the first 10 days than nonmembers and members are getting on average $11000 more for a home.

Speaker Change #162: Second analysis will vary from time to time, but multiple analyses of each shown.

Speaker Change #162: A benefit for members over non members and selling homes.

Speaker Change #162: So in summary, I believe the product is a winner.

Speaker Change #162: As of today, we've only demo to approximately three 5% of residential agents building a dedicated homes dotcom sales team is the key driver to future homes Dot com revenue growth.

Speaker Change #162: We have 63 dedicated homes dotcom salespeople in production there.

Speaker Change #162: I can see we have an additional 53 in training and another 30 hired.

Andrew C. Florance: We have been borrowing resources from our Apartments.com, CoStar, LoopNet, and other sales teams to supplement the Homes.com sales team, but those borrowed sales resources will inevitably return to selling their core products as they should; growing the Homes.com Salesforce must be our top priority. On the market, our UK residential real estate portal is making great progress. Listings on the platform are now up to 716,000, an increase of 41% from June of 2023. Average monthly visits for the month of June were $35 million, up 78% compared to June 2023, and average monthly unique visitors were up to 18 million in June, or an increase of 118% over June 2023, according to Google Analytics.

Speaker Change #162: We have been borrowing resources from our apartments Dot com Costar Loopnet and other sales teams to supplement the homes dot com sales team, but those borrowed sales resources will inevitably returned to selling their core products as they should.

Speaker Change #162: Growing our homes Dotcom sales force must be our top priority.

Speaker Change #162: On the market, our UK residential real estate portal is making great progress listings on the platform are now up to 716000, an increase of 41% from June of 2023 <unk>.

Average monthly visits for the month of June with $35 million up 78% compared to June 2023, and average monthly unique visitors were up to $18 million in June or an increase of 118% over June 2023, According to Google analytics.

Speaker Change #162: Lead counts are up 50% over the second quarter of last year and the sales results are looking good.

Speaker Change #163: A recent article from a site in publication called the negotiator said that a leading man leading lead management platform is.

Speaker Change #164: <unk> found that on the market has now overtaken zoop lot for engaged inquiries.

Speaker Change #165: Apartments Dot Com continued its positive momentum with another strong quarter revenue was 264 million for the second quarter 2024, representing 18% growth over the same period a year ago.

We continued to add new customers with rentals of all sizes to our marketplace at a rapid pace.

And now have almost 76000 paying communities on our network and.

Speaker Change #164: In June we had a record number of single family rental listings, representing increase of 108% over the prior year.

Andrew C. Florance: Single-family rental listings have boosted lead count by more than four times our homes.com membership age. Our mid-market efforts are contributing thousands of new properties, growing paid subscribers by almost 22 percent in the second quarter compared to the same quarter a year ago. New construction is also contributing to subscriber growth, with 75 percent of all new 100-plus-unit communities advertising with Apartments.com. That's a great stat.

Speaker Change #164: Single family rental listings have boosted lead count by more than four times, our homes Dot com membership agents.

Speaker Change #164: Our mid market efforts are contributing thousands of new properties growing paid subscribers by almost 22% in the second quarter compared to the same quarter a year ago.

Speaker Change #164: New construction is also contributing to subscriber growth with 75% of all new 100, plus unit communities advertising with apartments Dot com.

Speaker Change #166: That's a great stat.

Andrew C. Florance: Our sales team continues to deliver exceptional results and extremely high engagement with our clients and prospects. During the quarter, Paige's team conducted over 187,000 quality meetings, which is an increase of 23% compared to the second quarter of last year. Our second quarter net promoter score of 94 continues to lead the industry or just about any industry, which is a testament to the quality of the sales team and their service. We continue to outperform our competitors in lead quality and conversion. In the second quarter, Market Connections, a third-party market research firm, conducted a survey of industry decision-makers responsible for 18,000 communities with over 1.5 million units under management.

Speaker Change #167: Our sales team continues to deliver exceptional results and extremely high engagement with our clients and prospects during the quarter pages team conducted over 187000 quality meetings, which is an increase of 23% compared to the second quarter of last year.

Speaker Change #167: Our second quarter net promoter score of 94 continues to lead the industry or just about any industry, which is a testament to the quality of the sales team and their service.

Speaker Change #167: We continue to outperform our competitors and lead quality and conversion.

Speaker Change #168: In the second quarter market connections of third party market research firm conducted a survey of industry decision makers responsible for 18000 communities with over one 5 million units under management.

Speaker Change #168: Apartments Com Dot com continues to lead all the metrics that matter to most matter most to multifamily owners and property managers. We're number one in advertiser usage and deliver the highest quality leads we continue to have the highest lead the lease conversion rate significantly outperforming our next closest <unk>.

Speaker Change #168: <unk> in every one of these three metrics.

Speaker Change #169: Our 'twenty 'twenty four apartments Dot com marketing Cam campaign, featuring Jeff Goldblum, as Brad Bellflower inventor. The apart from Internet is in full swing again, we are reaching renters across all media channels during peak rental season, and generating over $2 1 billion media impressions.

Speaker Change #169: This year, we launched a dedicated landlord campaign to generate awareness with landlords, earning one to four rental properties and have generated almost $500 million brand media impressions to date as a result of our continued investment in success, our unaided brand awareness specifically attributed to apartment seekers.

Speaker Change #170: Is now 74% compared to Zillow, which is only at 42%, 74% compared to 42% our average monthly unique visitors for the quarter grew 3% year over year to $48 million significantly outperforming the overall market, which was down.

Andrew C. Florance: Our average monthly unique visitors for the quarter grew 3% year over year to 48 million, significantly outperforming the overall market, which was down 3% year over year, according to Google. Economic conditions in the apartment industry continue to create a favorable advertising environment. Apartment vacancy rates on 3, 4, 5 star properties continue to rise, with a 9.3% vacancy rate at the end of the quarter, and are forecast to remain at or above 9% for the remainder of this year.

Speaker Change #170: 3% year over year according to Google.

Speaker Change #170: Economic conditions in the apartment industry continue to create a favorable advertising environment apartment vacancy rates are 345 star properties continue at elevated levels with a nine 3% vacancy rate at the end of the quarter and are forecasted to remain at or above 9% for the remainder of this year unit level.

Speaker Change #170: He has continued at all time highs and expected to be 561000 units in 2024.

Speaker Change #170: Supply will continue to outweigh demand in the foreseeable future.

Speaker Change #171: <unk> Dot com continues to deliver strong growth and we expect to see apartments dot com revenue growth of 17% for the year in line with our guidance.

Speaker Change #172: In the second quarter Costar continued to deliver double digit revenue growth with $253 million of revenue a 10% increase over the prior year and in line with our guidance.

Speaker Change #172: Our lender product had the highest net new sales quarter ever with a 47% increase in revenue over the same period last year.

Speaker Change #172: We now have 298 banks in lending institutions in the platform.

Speaker Change #172: Up 50% year over year with sales to several large institutions in the quarter.

Speaker Change #172: We believe that our product is contingent is superior to the competition, which is something we continue to hear from our customers lend.

Speaker Change #172: Lenders at 300 million market opportunity with 3000 more significant lending institutions to pursue.

Speaker Change #172: The STR sales team had another strong quarter with a 54% increase in net new sales year over year.

Andrew C. Florance: Revenue from our benchmarking product and CoStar subscriptions to hospitality clients increased 28% in the second quarter. We are well positioned to penetrate this $300 million market opportunity with a best-in-class product. Our consistent strong revenue and sales performance for CoStar is the result of a steady stream of product innovation that delivers expanded capabilities and increased customer value. Over the past few years, we've integrated the STR benchmarking product, enhanced our fund data, added hospitality and CMBS data, launched a new lender product, and opened international reach for our CoStar customers. At the event of Q2, we just released our newest feature called Owner.

Revenue from our benchmarking product in Costar subscriptions to hospitality clients increased 28% in the second quarter.

Speaker Change #172: We are well positioned to penetrate the $300 million market opportunity with a best in class product.

Speaker Change #172: Our consistent strong revenue and sales performance for Costar as the result of a steady stream of product innovation that delivers expanded capabilities increase customer value.

Speaker Change #172: Over the past few years, we've integrated the STR benchmarking product enhanced our fund data added hospitality and see MBS data launched a new lender product and opened international reach for our Costar customers.

Speaker Change #172: The event of Q2, we just released our newest feature called owner the new owner module of Costar provides unparalleled insight into the underlying portfolios of the world's largest real estate developers and owners their key tenants acquisition and disposition disposition trends.

Speaker Change #172: Aggregate vacancies and availabilities in key contacts.

Speaker Change #172: Our usage data continues to show that these customers are engaging with the platform more despite the economic cycle.

Speaker Change #172: Customers logged in 5 million times in the quarter and conducted six to 8 million properties searches up 8% over the same period a year ago.

Speaker Change #172: Renewal rates are up to 92% and our NPS scores are at 65%, which is the highest levels in history in our history for NPS for Costar.

Andrew C. Florance: We've grown our subscriber base to 230,000 CoStar professional users, which is up 19% year-over-year. We have a proven track record of growth throughout economic cycles, and even in the face of historically low Siri transaction levels, CoStar is delivering solid growth and continues to be the mission-critical data and information product for brokers, owners, lenders, tenants, fund managers, and other participants in commercial property information markets. LoopNet revenue was $70 million, up 7% year-over-year, exceeding the high end of our 5% to 6% guidance. International revenue grew 17% in the second quarter.

Speaker Change #172: We have grown our subscriber base to 230000, Costar professional users, which is up 19% year over year.

Speaker Change #172: We have a proven track record of growth throughout economic cycles, and even in the face of historically low CRE transaction levels Costar is delivering solid growth and continues to be the the mission critical data and information product for brokers owners lenders tenants fund managers and other participants and commercial property information Mark.

Speaker Change #172: <unk>.

Loopnet revenue was $70 million up 70% year over year exceeding the high end of our 5% to 6% guidance International revenue grew 17%, 17% in the second quarter year over year.

Andrew C. Florance: The LoopNet Network remains the number one platform in the market with six times the traffic of our nearest competitor. Average monthly unique visitors for the second quarter were 13 million, with direct and organic traffic at 75% of total traffic. Even considering the difficult commercial estate market conditions, total detailed listing views are up 14% compared to the second quarter of last year. As the market normalizes over the coming years, Lupna is poised to benefit significantly from that recovery.

Speaker Change #172: The Loopnet network remains the number one platform in the market was six time traffic of our nearest competitor average monthly unique visitors for the second quarter were $13 million with direct and organic traffic at 75% of total traffic.

Speaker Change #172: Even considering the difficult commercial real estate market conditions total detailed listing views are up 14% compared to the second quarter of last year as.

Speaker Change #172: As the market normalizes over the coming years Loopnet is poised to benefit significantly from that recovery.

Andrew C. Florance: We continue to enhance all aspects of sales and client service, and as a result, our NPS scores have improved to 58 or 87 or up 87% since last year. We're growing our dedicated sales team, which will help us further penetrate this large and global market opportunity. Real estate manager revenue is up 9% year over year with renewal rates at 99%.

Speaker Change #173: We continue to enhance all aspects of sales and client service and the results are N. P. NPS scores have improved to 58 or 87 are up 87% since last year.

Speaker Change #173: We're growing our dedicated sales team, which will help us further penetrate this large and global market opportunity.

Speaker Change #173: Real estate manager revenue was up 9% year over year with renewal rates at 99%.

Andrew C. Florance: Real Estate Manager continues to take market share from legacy competitors. Two-thirds of our customers are sharing their lease data for anonymized analysis, which will greatly enhance our analytics in the CoStar platform. Land.com revenue grew 5% year over year. Signature ads increased 9% in the second quarter, and diamond ad sales were up tenfold in the last quarter. Land.com is the exclusive sponsor of a new show in production, Ranchland, which will stream on Paramount Plus and CBS, featuring aspirational ranches that are listed for sale on Land.com.

Speaker Change #173: Real estate manager continues to take market share from legacy competitors two thirds of our customers are sharing their leased data for Anonymised analysis, which will greatly enhance our analytics in the costar platform.

Speaker Change #173: <unk> Com revenue grew 5% year over year signature ads increased 9% in the second quarter and Diamond sales were up tenfold in the last quarter.

Andrew C. Florance: Each episode will feature an aspirational ranch currently on the market and listed on land.com and will feature a day in the life of the ranch owner. I know none of you are going to want to miss that exciting show.

<unk> Dot com is exclusive sponsor of a new show and production ranch land, which will stream on Paramount plus and Cvs beaching featuring aspirational ranch's, they're listed for sale and land Dot com.

Speaker Change #174: Each episode will feature an aspirational ranch currently on the market and listen on land Dot Com and we will feature a day in the life of the ranch owner I know none of you are going to want to Miss that exciting show.

Speaker Change #175: This buy sell revenue increased 6% year over year, the platform had a record $2 billion in enterprise value that transact in the second quarter, our franchise directly leap redirect releases are up 25% and listing leads are up 16% over the same period last year.

Speaker Change #176: Providing these quality leads to our customers and having customer response rates in the mid 19th.

Speaker Change #176: Correlates directly to our NPS score rising 15% to 55% this quarter.

Speaker Change #176: Our Tenex platform continues to outperform the market with a trade rate of 50% more than double the offline trade rate of 23%.

Speaker Change #176: We brought 57% more assets to the platform in the second quarter compared to the first quarter of 2024.

Speaker Change #176: CRE transaction volumes may be bottoming out with sales activity, increasing slightly 6% year over year for the first time since the second quarter of 2022 to.

Speaker Change #176: Distressed sales are beginning to surface, particularly for office and multifamily, but remain historically low with lenders still preferring to extend loans.

Speaker Change #176: C N B S delinquency rates remain elevated and office delinquencies have increased notably to 7.4%.

Speaker Change #178: This is a significant opportunity as these properties will eventually need to change hands and 10 X is the most efficient way to execute commercial real estate transactions.

Speaker Change #177: I believe that the results this quarter demonstrate the strength of our commercial real estate business with continued double digit growth and strong EBITDA margins in the face of economic headwinds.

Speaker Change #179: I believe that this quarter homes dot com is to coming into focus as a better product with a better business model than our competitors have.

Andrew C. Florance: I think the Homes.com value proposition is emerging clearly, it's compelling, and offers our future clients a huge potential ROI. Going forward, we need to focus on the blocking and tackling of building out our sales and marketing organization to realize the full revenue potential of Homes.com. At this point, I'm pleased to welcome our new CFO, Chris Lown, and will turn the call over to him.

Speaker Change #177: I think the homes dotcom value proposition is emerging clearly, it's compelling and offers our future clients a huge potential ROI.

Speaker Change #177: Going forward, we need to focus on the blocking and tackling of building out our sales and marketing organization to realize the full revenue potential of homes Dot com.

Chris alone: At this point I am pleased to welcome our new CFO, Chris alone and we will turn the call over to him.

Christian M. Lown: And here we go. Great. Thank you, Andy. Good evening.

Chris alone: And here we go.

Chris: Great. Thank you Andy.

Chris alone: Good evening I'm excited to be here for my first of many Costar earnings calls I'm.

Chris alone: I'm happy to report that Costar has now reached its 53rd consecutive quarter of double digit revenue growth.

Chris alone: Coming in at 12% and we achieved a commercial business margin of 41% in the second quarter.

Looking first at our residential businesses residential revenue came in at $26 million up 40% sequentially.

Chris alone: And just four and a half months, we've delivered cumulative net new bookings of $55 million, which is a great accomplishment.

Christian M. Lown: We are focused on hiring dedicated Homes.com sales reps over the next year who are more productive at selling homes memberships and will also allow many of our commercial sales teams to return to selling their core products full time. As Andy mentioned, focus groups have bolstered our confidence in our Homes.com offering, and we are confident in our differentiated business model and our ability to capture this exciting long-term revenue and data opportunity. We now expect third-quarter residential revenue to come in around $30 million, and we are revising our full year 2024 residential revenue guidance to $105 to $110 million. For the full year, we continue to expect to execute on our homes.com investment plans. Apartments.com's second quarter revenue growth came in at 11%.

Chris alone: We are focused on hiring dedicated homes dotcom sales reps over the next year.

Chris alone: We're more productive at selling homes memberships and will also allow many of our commercial sales teams to return to selling their core products full time.

Chris alone: As Andy mentioned focus groups have bolstered our confidence in our homes dot com offering and we are confident in our differentiated business model and our ability to capture this exciting long term revenue and data opportunity.

Andy: We now expect third quarter residential revenue to come in around $30 million and we are revising our full year 2024 residential revenue guidance to $105 million to $110 million.

Chris alone: For the full year, we continue to expect to execute on our homes Dot com investment plans.

Speaker Change #183: Apartments Dot com second quarter revenue growth came in at 11%.

Speaker Change #183: The apartments Dot com team continued to perform well with the highest number of sales reps and the highest sales productivity of any brand in the company.

Speaker Change #183: We are on track to achieve the guidance, we provided last quarter, resulting in 17% year over year revenue growth.

Speaker Change #183: Costar revenue grew 10% in the second quarter.

Speaker Change #183: In line with our guidance and we are maintaining our previous full year guidance of 10% growth.

Speaker Change #183: We expect growth in the third quarter to be broadly in line with the full year.

Speaker Change #183: <unk> net revenue grew 7% in the second quarter.

Speaker Change #184: Lately ahead of our 5% to 6% guidance range.

We are maintaining our full year revenue outlook for Loopnet of mid single digit growth.

Speaker Change #183: Revenue from information services was flat sequentially and dropped 20% year over year due to the transition of S. T R into costar.

Speaker Change #183: We are reiterating our previously stated guidance of $130 million to $135 million for the full year.

Speaker Change #183: And expect the third quarter to be consistent with the first two quarters of 2024.

Speaker Change #183: Other marketplaces revenue was $31 million in the second quarter and.

Speaker Change #183: And we are maintaining our guidance for other marketplaces to be relatively flat in the third quarter and full year.

Speaker Change #183: From a consolidated basis adjusted EBITDA for the second quarter was $41 million at a 6% margin.

Meaningfully above the high end of our $5 million to $10 million second quarter guidance.

Speaker Change #183: The favorable performance relates primarily to slower than anticipated hiring as well as the timing of investment spend.

We anticipate incurring some of the spend in the second half of the year.

Speaker Change #183: Our sales force totaled some 1240 people at quarter end an.

Speaker Change #183: An increase of 7% year over year and around 30 salespeople higher sequentially.

Speaker Change #183: Most of the increase in the second quarter was in our homes Dot Com sales force.

Speaker Change #183: Our contract renewal rate was 90% for the second quarter.

Speaker Change #183: With the renewal rate for customers, who have been subscribers subscribers for five years or longer at 95%.

Speaker Change #183: Subscription revenue on annual contracts was 81% for the second quarter.

Consistent with the prior quarter and the second quarter of 2023.

Christian M. Lown: We continue to have a strong balance sheet with $4.9 billion in cash, which earned net interest income of $53 million in the second quarter, a 5.1% rate of return. Our full year 2024 revenue guidance is now in the $2.735 billion to $2.745 billion range, a 12% year-over-year increase at the midpoint. This range reflects our adjusted residential revenue guidance for the second half of the year. The company expects third-quarter revenue of $692 million to $697 million, representing 11% year-over-year growth at the midpoint of the range.

Speaker Change #183: We continue to have a strong balance sheet with $4 $9 billion in cash, which our net interest income of $53 million in the second quarter, a five 1% rate of return.

Speaker Change #183: Our full year 2020 for revenue guidance is now in the 2.735 billion to 2.74 of $5 billion range, a 12% year over year increase at the midpoint.

Speaker Change #183: This range reflects our adjusted reserve residential revenue guidance for the second quarter second half of the year.

Speaker Change #183: The company expects third quarter revenue of 692 million to $697 million, representing 11% year over year growth at the midpoint of the range.

Christian M. Lown: We are increasing the midpoint of our Adjusted EBITDA guidance for the year with revised guidance of $195 million to $205 million. For the third quarter of 2024, adjusted EBITDA is expected to be in a range of $47 million to $52 million.

Speaker Change #183: We are increasing the midpoint of our adjusted EBITDA guidance for the year with revised guidance of 195 million to $205 million.

Speaker Change #183: For the third quarter of 2024, adjusted EBITDA is expected to be in a range of 47 million to $52 million.

Operator: I will now turn the call back over to our call operator, Carmen, to open the line for questions. Thank you, and as a reminder, press star then 11 to get in the queue and wait for your name to be announced. To remove yourself from the queue, press star 11 again.

Speaker Change #183: I will now turn the call back over to our call operator, Carmen to open the line for questions.

Peter Corwin Christiansen: We do ask that you please keep your questions to one. One moment for our first question, and it comes from the line of Pete Christiansen with Citi. Please proceed. Thank you. Good evening. Welcome, Chris. Great to have you. Congratulations, Cyndi. Shout out to Rich.

Speaker Change #185: When it comes from the line of Pete Christiansen with Citi. Please proceed.

Andrew C. Florance: Good evening, Andy. Lots of salutations there. Anyway, Andy, it sounds like. However, the momentum and new sales for the Resi side seem to have hit a bit of a speed bump. It sounds a bit more like blocking and tackling on the sales force. Can you, can you talk about, you know, adjusting the sales force to sell, who normally sell to institutional clients, how they're selling to residential agents? And, and I just need to follow up. There's a notion that there's been either refunds or cancellations throughout the quarter. Is it a function of?

Peter Corwin Christiansen: Thank you good evening.

Chris: Welcome Chris Great to have you.

Ed: Congratulations to the shut out to rich good evening Ed.

Speaker Change #187: [laughter] patients there anyway.

Ed: Andy.

Andy: It sounds like.

Ed: Yeah.

Ed: However.

Ed: The momentum in the new sales for the resi side.

Speaker Change #188: It seems to a bit of a speed bump it sounds.

Speaker Change #189: A bit more like blocking and tackling on the sales force can you can you talk about <unk>.

Speaker Change #190: Adjusting the sales force to sell.

Speaker Change #190: Normally institutional clients, how they are selling to residential agents.

Speaker Change #191: And I just need to follow up there is a notion that there has been.

Speaker Change #192: Refunds or counsel throughout the quarter is it a function of.

Peter Corwin Christiansen: The agent out there is just becoming more educated on what homes.com provides and how it differs versus other portals. Thanks. Sure. So I think that a broad sales force of a thousand people can comfortably sell the homes.com product. However, you know, if you're an apartment salesperson or CoStar salesperson, you've been selling those products for many years. And after the initial rush of selling a new product, you begin to migrate back to your existing product.

The the the agent out there just becoming more educated on.

<unk> Dot com.

Speaker Change #193: Provides and how it differs versus other quarters. Thank you.

Speaker Change #193: Sure so.

Speaker Change #194: I think that the broad sales force of 1000 and some people.

Speaker Change #194: Can comfortably sell the homes dot com product.

Speaker Change #194: However.

Speaker Change #194: You know if youre, an apartment salesperson or a costar salesperson you have been selling those products for many years and after.

Speaker Change #194: The initial rush of selling a new product you begin to migrate back to your existing product and.

Speaker Change #194: It's the type of thing that you can try to push them into the two products, but realistically.

Peter Corwin Christiansen: And it's the type of thing that you can try to push them into the two products, but realistically, longer term, as you move into the second, as we move forward towards the second full quarter, the third or fourth full quarter, we want to be relying more and more on a dedicated Homes.com selling team because there's just a natural instinct for the broad sales force to go back to their core products. The other thing is that the Homes.com team, a dedicated sales team, does a better job of following up with the sales post-sales and has higher net promoter scores, dramatically higher net promoter scores, than do the salespeople that were borrowing from the other products and who were basically renting.

Speaker Change #194: Longer term as you move into the second as we move forward towards the second full quarter of the third or fourth full quarter, we want to be relying more and more on a dedicated homes dotcom selling team because.

Speaker Change #194: There's just a natural instinct for the broad sales force to go back into their core products. The other thing is that the homes dot com team dedicated sales team does a better job with following up with the sales post sales and has higher net promoter scores dramatically higher net.

Speaker Change #194: Promoter scores than do.

Speaker Change #194: The salespeople that were borrowing from the other products and who were basically renting if you ever treat a rental car not as well as you treat your own car well, that's a little bit the way. These other non core salesforce is treat some of the humps folks.

Peter Corwin Christiansen: If you ever treat a rental car not as well as you treat your own car, well, that's a little bit the way these other non-core sales forces treat some of the Homes folks, and Homes clients, and not in a bad way; it's just that the Homes.com dedicated team has a significantly higher NPS. So, and you don't wanna, you know, we have some great products there with apartments and homes, and you don't really wanna push them too hard to move them into a sales area there. That is not their long-term focus. So, in terms of refunds, I'm unaware of any refunds that we put out there. We did have a completely lenient cancel policy in the initial time period.

Speaker Change #194: Homes clients and none are bad way that this just that the homes dot com dedicated team has a significantly higher NPS.

Speaker Change #194: So.

Speaker Change #194: And you don't want to.

Speaker Change #194: We have some great products, there with apartments and homes and you don't really want to push too hard to move them into our sales area there.

Speaker Change #194: That is not there long term.

Speaker Change #194: Focus.

Speaker Change #194: So.

Speaker Change #195: In terms of.

Speaker Change #195: I am unaware of any refunds that we've put out there we did have a going into the new product we had a completely lenient.

Speaker Change #195: Cancel policy and the initial time period.

Andrew C. Florance: So you could pretty much back out anytime you want. It's my understanding that initially one of the single biggest reasons for cancellation is the credit card didn't process, which is not to be, which is not unusual given, um residential agents with volumes down and um you know uh commission to commission uh 100 commission based pay, Now, there's a little bit of the latter that you're talking about there, which is after two decades of agents being used to buying leads off of lead diversion sites in order to get buyer agency, there is definitely an education process.

Speaker Change #195: So you could pretty much.

Speaker Change #195: Back out anytime you want it's my understanding that initially one of the single biggest.

Speaker Change #195: Reasons for cancellation is the credit card didn't process.

Speaker Change #196: <unk>, which is <unk>.

Not to be which is not unusual given.

Speaker Change #196: Now residential agents with volumes down and.

Speaker Change #196: Commissioned Commission, a 100% commission based pay.

Now.

Speaker Change #196: There's a little bit of the ladder that you're talking about there which is.

Speaker Change #196: After two decades of agents being used to buying leads off of lead diversion sites in order to get buyer agency. There is definitely an education process. So.

Andrew C. Florance: So, if I am an agent who doesn't really do normal residential real estate listings, I don't normally win listings as an agent, and I've been buying leads from a lead diversion site like Realtor. Now, those sites are scraping the listing leads off of 100% of the agents and funneling them down to a small group of people that are just trying to work those buyer agency leads. We do something very different.

Speaker Change #196: If I am an agent who doesn't really do normal residential real estate listings I don't normally win listings as an agent and ive been buying leads from a lead to version site like realtor.

Speaker Change #196: Those sites are.

Speaker Change #196: Scraping the listing leads off of <unk>.

Speaker Change #196: 100% of the agents and funneling them down to a small group of people are just trying to work those buyer agency leads.

We do something very different we don't do the sort of mass scraped selling buyer agency leads we focus on giving agents and advantage in selling their owners home.

Speaker Change #196: And so.

Speaker Change #196: We're giving them dramatically more exposure for their listings on our site.

Speaker Change #196: And that helps them win new cell listing leads are exclusive listings.

Speaker Change #196: And it also helps them when buyer agency it helps them when general branding and branding for the firm, but if you evaluate it through the lens of a buyer agency scrape lead generation it won't really meets your needs. So.

There were a bunch of <unk>.

Speaker Change #196: Buyer agency only folks who are looking for something a little bit different upfront and now we don't really focus on those folks we really direct our energy and the people who have listings in the feedback.

Speaker Change #196: Is becoming better and better and better and better and is really quite good because.

Speaker Change #196: Folks who are using it using Holmes dot com are winning 51% more listings and if you think about what that means it means everything.

Speaker Change #196: Winning a new listing is much more valuable than winning a buyer agency lead.

Speaker Change #196: A significant percentage of buyer agency leads never transact.

Andrew C. Florance: A super high percentage of listings, homes for sale, will transact and transact quickly. And with all the things going on in the world, with the NAR, with the lawsuits, the whole plaintiff lawsuits. The sale listing generation is a safe harbor in that storm, and so agents prefer that. So, the long short of it is, yes, we had an incredibly, you know, just anytime you want to cancel, which is not what we normally do.

Speaker Change #196: A super high percentage of listings homes for sale, we'll transact and transact quickly.

Speaker Change #196: And with all the things going on in the World.

With the N E R with the lawsuits and Amazon the whole plaintiff lawsuits.

Speaker Change #196: The sale listing generation is a safe harbor in that storm.

Speaker Change #196: And so agents prefer that so.

Speaker Change #196: Long short of it is.

Speaker Change #197: Yes, we had a incredibly anytime.

Speaker Change #198: Anytime you want to cancel which is not what we normally do we're past that and we're redirecting and making sure that we're not we're educating people on this is not a lead stealing site. This is a.

Andrew C. Florance: We're past that, and we're redirecting and making sure that we're not, we're educating people on this is not a lead stealing site. This is a way of promoting the home and allowing agents to win listings and generally build their brand and win buyers. Pete, was that a long answer? It was a good color.

Speaker Change #198: This is a promote in the home and allowing agents to win listings and generally build their brand and wind buyer agency leads.

Speaker Change #198: Pete was that a long answer.

Peter Corwin Christiansen: I'm gonna, we're gonna take that in. Very good. Thank you. Yes. Thank you. One moment for our next question, please. And it's from the line of Alexei Gogolev with J.P. Morgan. Please proceed. The answer is four.

Pete: It was good color.

Pete: We're going to take that it very good thank you.

Yeah.

Speaker Change #200: Thank you one moment for our next question. Please.

Speaker Change #201: And he is from the line of Aleksey Gogo laugh with J P. Morgan. Please proceed.

Speaker Change #202: The answers for.

Alexei Mihaylovich Gogolev: Hi Andy. Hi Chris. Welcome to your new role. I wanted to ask a quick question about the new guidance for the resi business. So as I see it, you're now assuming roughly a $4 million sequential increase in Resi revenue in 3Q and then another $3 or $5 million in the 4Q quarter, which is slightly different to the $10 million sequential increase that you were initially targeting. Just wondering what drove that decision to lower the guidance and what your feelings are around the membership additions that you're seeing at the moment?

Andy: Hi, Andy pillar.

Andy: Intent.

Hi, Chris.

Chris: Welcome to the new role.

Speaker Change #203: I wanted to ask a quick question about the guidance for the royalty business.

Speaker Change #204: So as I as I hit you are now assuming roughly $4 million sequential increase of royalty revenue in <unk> and then another three three or $5 million in the <unk>.

Speaker Change #206: Quarter, which is slightly different to the $10 million sequential increase that you were initially targeting.

Speaker Change #205: Just wondering what.

Speaker Change #207: Drove that decision to lower the guidance and what is your feel around the.

Speaker Change #208: The membership additions that you're seeing at the moment.

Speaker Change #209: Sure. Thank you for the question I think a couple of things. Obviously this was the launch of a new product and there was a lot of brainpower going into trying to model out that analysis and what would happen in.

Speaker Change #209: And the initial results were very strong and therefore, there was a reaction to that I think what youre seeing now is more of a a growing momentum that youll see evolve over time and while we don't provide quarterly guidance your numbers make broad sense to me and so I think what youre seeing is.

Christian M. Lown: And as Andy mentioned, compared to our apartments.com launch, this is phenomenally more successful. I think we feel good about that and the model outlay. And, as Andy said, we are hyper focused on getting Homes.com salespeople in their seats, and that momentum will drive further growth as well. And again, I would just add that the main issue is the rotation of the core sales force back into the core products by their own choice, largely.

Speaker Change #209: Probably a more.

Speaker Change #209: Appropriate build of the business.

Andy: Conservative built in the business and therefore, then guys just a better understanding I would also highlight is a new launch as Andy.

Andy: Andy had mentioned compared to apartments Dot Com launched this is phenomenally more successful and I think we feel good about that and the model outlay and so as Andy said, we are hyper focused on getting homes dot com salespeople in their seats and that momentum will will drive further growth as well.

Christian M. Lown: And then now you move into the more long term, as Chris says, the long term growth of the core sales group. And definitely, a significant number of the original other product sales groups will keep selling homes because they want to. But you'll be relying on the growth of that dedicated sales force now. Understood. Thank you, Andy.

Speaker Change #210: And again I would just add that the main issue is rotation of the core salesforce back into their core products by their own choice largely.

Speaker Change #210: And then now you move into the more long term as Chris says into the long term growth of the core sales group and definitely a significant number that the original the other product sales groups will keep selling homes because they want to.

Chris: But you'll be relying on the growth of that dedicated sales force now.

Andrew C. Florance: And Chris, just a quick follow-up on the exit rate EBITDA margin target. Would you mind confirming if it's still 15 to 16 percent? within that range?

Speaker Change #211: Understood. Thank you, Andy and Chris just a quick follow up on the <unk>.

Speaker Change #212: Exit rate EBITDA margin target.

Christian M. Lown: Yes. Thank you. Thank you. One moment for our next question, and it comes from the line of George Tong with Goldman Sachs. Please proceed. Hi, thanks. Good afternoon.

Speaker Change #213: Would you mind, confirming if it's still 15% to 16%.

Speaker Change #214: Within that range, yes.

Speaker Change #215: Thank you.

Speaker Change #217: Thank you one moment for our next question.

Speaker Change #216: He comes from the line of George Tong with Goldman Sachs. Please proceed.

Keen Fai Tong: I'd also like to extend a welcome to Chris and thanks to Cyndi. So I want to stick with the residential business because it sounds like you're seeing good traction with respect to online traffic and bookings, and yet you're reducing your full year residential revenue guide by about $20 to $25 million. It sounds like some of that's a better appreciation of the trajectory and perhaps some Salesforce productivity insights. I just want to elaborate, if you can, on what's changed. Is it a function of hiring capacity with respect to the Salesforce platform? Is it a function of the productivity of the borrowed salespeople?

Keen Fai Tong: Hi, Thanks, Good afternoon, I'd also like to extend a welcome to Chris.

Chris: Thanks Cindy.

Keen Fai Tong: So I wanted to stick with the residential business because it sounds like youre seeing good traction with respect with respect to online traffic and bookings.

Speaker Change #218: Yet you're reducing your full year residential revenue guide by about 20% to $25 million it sounds like some of that.

Speaker Change #219: Better appreciation of the trajectory and perhaps.

Speaker Change #219: Some sales force productivity.

Andrew C. Florance: Or is it a function of end market demand for your product? Yeah, so I think the number one factor is human behavior. And it is the borrowed salesforce, a significant number of the borrowed salesforce, are returning to their comfort zone of selling their core products. So if I've been selling apartments.com for seven years and doing really quite well, at some point, I feel anxious about selling a new product that I'm not going to be selling long term.

Speaker Change #220: Sites, but just wanted to elaborate if you can.

Speaker Change #221: On what's changed is it a function of hiring capacity with respect to the sales force is it a function of the productivity of the borrowed salespeople or is it a function of end market demand for your product.

Speaker Change #222: Yes so.

I think the number one.

Speaker Change #223: The factor is human behavior.

Speaker Change #223: And it is the borrowed salesforce a significant number of the borrowed salesforce.

Speaker Change #223:

Speaker Change #223: Returning to their comfort zone of selling their core product. So if I've been selling apartments dot com for seven years and doing really quite well.

Speaker Change #223: At some point I feel anxious about selling a new product that I'm not going to be selling long term. So it really the beginning middle and end of it is really about.

Andrew C. Florance: So the beginning, middle, and end of it is really about building a dedicated sales team just like CoStar has, just like STR has, just like Real Estate Manager has, just like LoopNet has. We've got to build that core sales team for Homes.com so they can sell and service that product as their first priority, and those folks are doing well.

Building a dedicated sales team just like Costar has just like STR has just like real estate manager has just like Loopnet has.

Speaker Change #223: We got to build that core sales team for homes Dot com. So they can sell and service that product as their first priority.

Speaker Change #223: And those folks are doing well I'm happy with the results of this relatively new sales force.

Speaker Change #223: We just need to keep growing it and that will be our priority.

Speaker Change #223: But it is.

Speaker Change #223: I look at where we are.

Speaker Change #223: <unk> the traffic that is phenomenal and having the.

Speaker Change #223: Both the end users.

Speaker Change #223: Prefer the product over others in our studies and having the agents signet find significant value in what we're doing if they're actually in real estate.

Speaker Change #223: <unk> is really good and it gives and now it's just a question of building out that dedicated home sales team, but I'm reluctant.

Speaker Change #223: And I'm reluctant.

Speaker Change #223: Two pressure high performing apartments, or costar or real estate manager salespeople to move into homes. When they are really quite good at their core products.

Speaker Change #224: Got it that's helpful. Thank you.

Speaker Change #225: Thank you one moment for our next question. Please.

Andrew C. Florance: That's helpful. Thank you. Thank you. One moment for our next question, please. And it's from the line of Heather Balsky with Bank of America. Please proceed. Hi, thank you for taking my question.

Heather Nicole Balsky: And he is from the line of Heather <unk> with Bank of America. Please proceed.

Heather Nicole Balsky: You touched on apartments earlier in the call. It'd be great to hear your thoughts about how you see trends into next year, especially given supply dynamics. And also, I know there's been a lot of questions on competition as Zillow has gotten more into the apartment space, and you touched on some of that earlier in the call as well. Just, you know, how are you thinking about keeping your leadership position as competition increases and the differentiating factors between your positions? Yes, so, as you look at them.

Heather Nicole Balsky: Hi, Thank you for taking my question.

Speaker Change #226: You touched on apartment earlier.

Speaker Change #227: Call It would be crazy to talk about how you see tragedy.

Speaker Change #226: Into next year, especially given the supply dynamic.

Andrew C. Florance: As you look at the economic environment we're operating in for Apartments.com, I do believe we are in the Goldilocks zone. So we don't want to see vacancy rates too high because people then don't have liquidity to pay for the ads, and we don't want to see them too low because the demand for the ads goes down.

Heather Nicole Balsky: So, in terms of how we maintain our competitive advantage, we have a robust and broad product development pipeline at apartments.com. You can see the traffic continues to grow. And you can see us consistently outpacing in lead-to-lease conversion, into unaided awareness, into traffic growth, just all the different metrics. We're doing quite well. And really, it's sort of a broader playbook here, where there's a lot of room in this space because most of the apartment units are in the smaller category and in mom and pop individual units and houses. And so, Frankly, nobody has any real penetration there.

Andrew C. Florance: I mean, while we're growing down there, we're in single digit penetration, so there's tons of room for us to grow in there. And you will probably see some other players grow in there, but that's because it's a big market and we're both developing a big market. Thank you for that and and, I could have missed it, but I was just curious, have you shared your updated thoughts on commercial EBITDA margins for the year and are your expectations still the same as they were for the prior two quarters? You know, we did provide guidance on what we did in the second quarter of around 41 percent, and we do expect those to be roughly in the same area. Okay, thank you.

Christian M. Lown: Correct. Thank you. One moment for our next question. And he is from the line of Soham Bhonsle with BTIG.

Soham Jairaj Bhonsle: Please go ahead. Good evening, everyone. Thanks for taking my questions, and Chris, welcome. Andy, I was hoping you could touch on some of the organic levers for CoStar Suite going forward. I think last quarter you talked about, you know, 220,000 subscribers, STR, and, you know, the lender product being an opportunity. But I was wondering if you could maybe break that down further as we sort of think about the growth drivers of the business over the next two to three years. Thanks.

Andrew C. Florance: Sure. So, continuing to develop products that are geared towards the corporate user, the owner, the lender, and institutions, that's a wide open area with relatively low penetration rates. And as we add more and more people from those other sectors or segments, It creates more energy in the customer base; brokers are more likely to engage in the product more if corporate users are engaging in the product; owners are more likely to engage in the product when corporate users are in the product, so we're building out a lot of vibrancy in the platform by going into those building features and functions to reach into those segments which have historically not been our first and second priorities So, I believe later this year we'll be releasing the full STR global functionality.

Soham Jairaj Bhonsle: So, global will be another driver, so I think that those are the main segments. We still have a lot of ways. I mean, as crazy as it is, all these years later, we still have a lot of brokers to sell to, and increasingly, residential firms over the last 10, 15 years have been doing more commercial. So, as we get into more and more residential, we'll be providing more CoStar services to folks that you would have viewed as more historically residential.

Soham Jairaj Bhonsle: I had a call today with the head of sales for CoStar with a major residential player trying to figure out how they could get access to CoStar and LoopNet, and I don't think that call would have happened except for the fact that we're now on that CEO's radar because of homes.com. So, CoStar remains the product with, as far as I can tell after 38 years, perpetual growth opportunity. Great. If I could just follow up on commercial bookings in the quarter,

Soham Jairaj Bhonsle: It looks like, you know, you did improve quarter over quarter, but it's still down year over year. So any color that you could sort of provide there when you think that could start getting moving again would be helpful.

Andrew C. Florance: Thank you. You see that when you're given, you know, a fixed number of hours in the day when those CoStar apartments, LoopNet salespeople shift over and start spending some amount of time selling homes.com, which they did a lot in the period from February 12th through the second quarter. That comes at some substitution effect with their selling in the core. So I think predominantly any reduction year over year is coming from that effort selling into homes.com. Got it. Thanks a lot.

Jeffrey P. Meuler: Thank you. One moment for our next question, and this is from Jeff Mueller with Baird. Please proceed. Yeah, just.

Andrew C. Florance: Andy, maybe you could just talk through kind of the key factors that are going to determine the budget for the Homes.com initiative over the next few years, just with this stutter in the net bookings. And then what's the exit rate assumed for ARR for Homes.com in the revenue guidance, please? Thank you.

Christian M. Lown: So I'll let Chris, after I answer the first part, I'll let Chris answer the revenue guidance on exit AR. So I think that, you know, we are coming out with this homes.com product offering in our first full quarter with a good result, which is more than, when I look at the early stages of apartments.com, I believe we're running more than double the sales we ran at apartments.com. And it's a question of building it out. It's a little early in the first full quarter of launch to call it a stutter because, you know, you don't really have a reference point.

Andrew C. Florance: So, we, as we've said earlier, we do not anticipate growing the solidity, but a beat this quarter, you sort of hit the nadir of that reinvestment period. And then Chris has got the AR question, actually. Thanks. On the AR question, we have provided previous guidance in the range of $475 to $500 million. And at the lower end of that range is where we still feel comfortable.

Christian M. Lown: Thank you. One moment for our next question, and it comes from the line between John Campbell and Stephens.

John Robert Campbell: Please proceed. Thanks, and Chris, welcome to the CFO seat and congratulations, and I'm looking forward to working with Rich again. But for Holmes.com, I know the unaided, you know, brand awareness metric is an important North Star for you guys. I think we're all trying to get a better grip on the, you know, rate of net resi investment spend in the years ahead. So maybe just a two part question here. First, should we be thinking about Holmes.com reaching that, you know, 50% level of the trigger point for spend release? And then secondly, you guys have obviously moved that unaided awareness up quickly.

Andrew C. Florance: I mean, basically next to nothing when you acquired it; I think 27% now took Holmes.com, or excuse me, apartments.com, almost a decade to get to 50%. Obviously, you're spending multiple times more on Holmes.com. So, Andy, rather than ask you an exact date for Holmes.com, which I wouldn't expect, maybe just directionally, if you, you know, should we be thinking about that 50% level coming in the quarters ahead, you know, the years ahead, or should we be looking at that past path for apartments.com as a guide? Well, I do not believe it is the same.

John Robert Campbell: I believe it is going much faster and will continue to go much faster than apartments.com. So we're constantly evolving the messaging just as we did with apartments.com and fine-tuning it, and you know, shifting various value propositions out in the marketing. I would say that, similar to apartments.com, relatively constant investment as you build this out, and only really increasing investment, as we did with apartments.com, in the event that you can see a revenue and EBITDA financial result that's clearly attractive and can be communicated to the investors. But, building out something as valuable as the number one residential portal platform doesn't happen in one quarter.

John Robert Campbell: It is likely to be a multi-year effort, just like Apartments.com and CoStar. It is, um... You know, the steady, persistent, consistent, making progress down the road and don't anticipate radical changes anytime soon and don't anticipate increases that would slow you a bit of growth. Okay, that's helpful. Thank you, Andy.

Andrew C. Florance: Thank you. One moment for our next question. And it's from the line of Nick Jones, with Citizens JMP. Please proceed. Thanks for taking the questions. Two more on Homes.com.

Nicholas Freeman Jones: You've done a great job driving traffic up meaningfully. Can you speak to kind of as you aim to get more leverage, kind of the balance between maybe shifting focus to driving more app downloads or time on app in terms of getting kind of maybe cheaper forms of traffic, you know, kind of upper funnel advertising or social or things like that? And then a follow, Sure, so, on the app download side, we focus first and foremost on web mobile because that is the fastest way to collect traffic. That's the most predominant platform. It reduces friction.

Andrew C. Florance: They describe it as fast and furious. They describe it as offering a lot more information than any other platform. And they describe it as having the benefit of being able to ask the listing agent a quick question without being hard sold by someone on something you weren't looking to buy. So, um, I'm sure you've been annoyed before when you're trying to look at something in a web mobile app and up pops the thing saying, okay, stop doing that, and go into download an app. Not very popular

Andrew C. Florance: And so we're keeping up, slightly behind the web-mobile, we're keeping up with app parallel functionality. But right now, we are basically about traffic attainment. And I am thrilled with the work our Homes product team has done and the development team has done building a fantastic web mobile.

Andrew C. Florance: And so while we're snagging traffic from other folks, we're going on the fastest, most fluid platform, which is web mobile. Oh, and social. We're, we're, marketing anywhere and everywhere we can pull people at the most cost-effective price. So yeah, we're on. If you can talk about digital marketing or streaming or anything social, we're on virtually everything. I'm sure you see us everywhere.

Andrew C. Florance: I sure do. And then I guess maybe a bigger picture question. You know, I think earlier you alluded to buyer leads being not as valuable as getting listing leads, or that just, you know, makes sense. But then how do you balance, um, you know, philosophically how are you going to balance the value of the platform to essentially home buyers, which I guess sounds like are viewed as less valuable than providing kind of you know, upper funnel advertising for agents to go win more listings, because over time, if the marketplace Do you follow the question? It's a little convoluted, but I kind of heard two different comments on the call today.

Andrew C. Florance: They want the seller, they want the selling agent to get, and that's what the You're Listing Your Lead model we have. The agents like the You're Listing Your Lead model because they want to get leads off their listings. The biggest source of buyer agency leads actually comes from having listings. So when someone calls your listing, you're generating buyer leads because, nine out of ten times, they're not buying the house they first call on.

Andrew C. Florance: But as an agent, you can get them as a buyer's agent, show them other homes because you're an expert in the category in the neighborhood they're familiar with. You also get referral commissions, and the leads you refer from your listings come back to you as referrals from other people's listings.

Andrew C. Florance: What we're not doing is stealing everybody's leads and reselling them to a handful of lower-end agents. So that does not mean that we're not creating a buyer agency, and we're not focusing on buyers. It means we're doing it more intelligently, and we're doing it in a way that resonates with the industry long-term. And frankly, I'm really excited about the fact that I am becoming more and more confident that we have a vastly superior model.

Andrew C. Florance: And that's wonderful. So we're not saying we're stepping away from buyers or buyer agency, far from it. We're just generating more harm through buyer agency, more harmoniously, with the way the industry has historically done it in a more sustainable, advantaged way over the long term.

Andrew C. Florance: Thank you for giving me a chance to clarify. All right, thank you. Thank you. And that's all the time we have for Q&A today.

Operator: I will pass the call back to Andy Florence for a final comment. Well, thank you, everybody, for joining us today on the call. And, Chris, welcome aboard. Thank you. No offense to Scott Wheeler, who I hope is listening today with a scotch in his hand, but Scott was good, but Chris is clearly better.

Andrew C. Florance: But so be it. Next quarter, I hope you'll be joining us so we can update you, and we'll have Mr. Simonelli back, and we'll ask him to play a brief ballad. We're going to ask him to set the preamble to music. Do you think you can do that, Rich?

Andrew C. Florance: Thank you all for joining us. I look forward to talking to you guys next quarter. And thank you all for participating. You may now disconnect.

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