Fourth Quarter and Full Year 2023

Investor Presentation
Legal Disclaimer
Certain information in this presentation includes “forward-looking statements” within the meaning of federal securities laws, including financial projections of CoStar
Group, Inc. (“CoStar Group” or the “Company”), addressable markets, statements about management’s plans, growth strategy, goals and objectives for future
operations and similar statements regarding expected future events. These statements are not guarantees of future performance and involve risks and
uncertainties that could cause actual results to differ materially.

Factors that could cause or contribute to such differences include: general economic conditions; the risk that our projections about revenue, EBITDA, Adjusted
EBITDA, net income per share, Non-GAAP net income, Non-GAAP net income per share, site traffic or the number of users on our sites are not as expected;
product development and releases; planned sales and marketing activities and investments; the anticipated benefits of completed or proposed acquisitions; trends
in customer behavior; effective tax rates; the anticipated benefits of cross-selling efforts; planned service enhancements; legal and regulatory issues; methods that
we use to measure unique visitors to our portals, including Google Analytics, may misstate the actual number of unique persons who visit our network of mobile
applications and websites for a given changes in accounting policies or practices and current economic conditions, including the potential impacts of the COVID-19
pandemic, on the commercial real estate industry and our customer base. Additionally, annualization of historical results from short periods of time or small sample
sizes may differ materially from actual results realized in future periods and may not take into account other future market conditions that may negatively affect
those results.

More information about potential risks that could cause actual results to differ from those contemplated by the forward-looking statements is included in our filings
with the Securities Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. All forward-
looking statements are based on information available to us on the date of this presentation, and we assume no obligation to publicly update such statements
whether as a result of new information, future events or otherwise.

This presentation includes certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP Net Income, Non-
GAAP Net Income per Share, Organic Revenues and Acquired Revenues, which are used by our management and board of directors to measure operating
performance and trends and to prepare our annual budget. You should not consider these measures in isolation or as a substitute for analysis of our results as
reported under GAAP. Reconciliation tables and other important information about the Company’s financial results and operating metrics used herein are included
in the Appendix to this presentation. This presentation also contains estimates and statistical data made by independent parties and by CoStar Group related to
market size, the housing rental market, agent users, site traffic, growth and other data about CoStar Group’s industry and performance. These data involve a
number of assumptions and limitations, which may significantly impact their accuracy, and you are cautioned not to give undue weight to such estimates.
Projections, assumptions and estimates of future performance are necessarily subject to a high degree of uncertainty and risk.

This presentation is not an offer or a solicitation of an offer to purchase any securities.

Fourth Quarter and Full Year 2023
Highlights
Fourth Quarter and Full Year 2023 Highlights
• Full year 2023 revenue increased 13% year-over-year and 12% in the fourth quarter 2023,
exceeding the high end of our guidance range.

• Commercial information and marketplace businesses grew revenue 14% in 2023, with profit margins
improving to 40% for the full year.

• Apartments.com delivered 23% year-over-year revenue growth in 2023. Annual run rate revenue
crossed $1 billion in January 2024, making Apartments.com our first billion-dollar business.

• Costar Group’s residential network traffic reached 95 million average monthly unique visitors in the
fourth quarter of 2023 to become the second most trafficked network of residential sites in the U.S.

• Homes.com is the fastest growing residential property site in the U.S., with average monthly unique
visitors increasing 600% year-over-year.

• Homes.com launched the industry's biggest brand campaign during Super Bowl LVIII. Subscription
membership sales began ahead of schedule in February with almost $4.5 million in annualized net
new bookings sold in the first week.
Commerci al i nformation a nd marketplace businesses are our consolidated financial position a nd results excluding the impact of our Residential brands which are Homes.com and OnTheMarket, plc. Apartments
network traffic as measured by Google Analyti cs; Zillow’s network as reported i n i ts Earnings Press Releases and Shareholder l etters posted to their website for the prior eight quarters. Rent. tra ffic per Comscore.
*
Fourth Quarter and Full Year 2023 Results

Fourth Quarter Full Year

$640 million $2.46 billion

Revenue
12% year-over-year growth 13% year-over-year growth

$96 million $375 million

Net income
$0.24 per diluted share $0.92 per diluted share

Net new bookings $58 million $286 million

$130 million $492 million

Adjusted EBITDA
20% margin 20% margin

$133 million $498 million

Non-GAAP net income
$0.33 per diluted share $1.22 per diluted share
2024 Outlook

First Quarter Full Year

$645 billion to $650 billion $2.75 billion to $2.77 billion

Revenue
10% to 11% year-over-year growth 12% to13% year-over-year growth

($5) million to ($2) million $115 million to $129 million

Net income
($0.01) to $0.00 per diluted share $0.28 to $0.32 per diluted share

($12) million to ($8) million $170 million to $190 million

Adjusted EBITDA
(1) % margin 7% margin

Non-GAAP $26 million to $29 million $232 million to $246 million

net income $.06 to $.07 per diluted share $0.57 to $0.60 per diluted share
Traffic Growth Accelerating to 62% Year over Year in Q4 2023

160

140

120
Unique Visitors in Millions

100

80

60

40

20

-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Google Analytics Unique Visitors – All CoStar Sites. Growth rate based on 4Q23 vs 4Q22..
Company Overview
CoStar Group is the Global Leader in Digitizing Real Estate

37 2 billion+ $5 billion+ ~6,200

years of real estate annual visits investment in research employees
experience to our websites and technology

member of the

500

Innovator of the Year

COMPANY OF THE YEAR Best Integrated Marketing Campaign

74 14 ~$35 billion $5 billion+

countries market capitalization in cash on hand
offices

*All numerical data as of December 31, 2023

Over 35 Years of Growth and Innovation
A Global Leader in the Digital
Transformation of the $300+
Trillion Real Estate Industry
• Long growth runway: Global addressable market for real estate
information and marketplaces estimated at > $100 billion.

• Strong competitive position: Massive proprietary dataset built over

37 years with > $5 billion invested in research.

• Leading Property Marketplaces: Hundreds of millions shop our online

real estate marketplaces.

• Successful growth track record: 51 consecutive quarters of double-

digit revenue growth, both organic and through acquisitions.

• Attractive financial model: 95% subscription revenue. 90% renewal

rates*. Strong margins, high free cash flow and a fortress balance
sheet.

*All data as of December 31, 2023. Subscription revenue includes all contracts regardless of term. Renewal rate refers to contracts with
12 month or longer terms.
 Global Real Estate: A $300 Trillion Asset Class
U.S. REAL ESTATE
$70 TRILLION GLOBAL REAL ESTATE
(Year CoStar entered market) $300 TRILLION
Office
(1986)
Industrial
(1994)

United States
Retail
(2004)

Rural Land
(2011)

Apartment
(2014)

Single Family Hotel

Residential/ (2019) Canada
New Homes China
(2020) France
UK
India Germany CoStar Group Offices
U.S. Real Estate Sources: Apartment – CoStar estimate Global Real Estate Sources:
Office – CoStar estimate Hotel – CoStar estimate Global real estate value calculated by scaling
Industrial – CoStar estimate Single Family – Federal Reserve Flow of Funds and U.S. real estate value based on the U.S.
Retail – CoStar estimate Urban Institute share of global GDP, Global GDP data from
Based on 2023 Data
Rural Land – U.S. Department of Agriculture New Homes – Federal Reserve Economic Data (FRED) The World Bank
~$40B North American Addressable Market, Global Market > $100B
Total North American Addressable M arket

$4 Billion

$9 Billion

$5 Billion

$6 Billion

>$15 Billion

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
TAM Sources:
CoStar, Apartments, LoopNet and Ten-X – CoStar estimate
Homes.com – extrapolation of Borrell Associates “2019 Real Estate Advertisement Outlook” combined with CoStar estimate
Strong Double-Digit Growth with Two Brands Over $1 Billion
5 YEAR
CAGR
$2.8B
15% 20%
TOTAL 5 YEAR REVENUE CAGR $2.5B 9%
150% 2023-2024 only
$2.2B
13%
$1.9B
$1.7B
$1.1B 17%
$1.4B

$1.0B 11%

2019 2020 2021 2022 2023 2024E

Costar Multifamily LoopNet Residential Information Services Other Marketplaces

 51 Consecutive Quarters of Double-Digit Revenue Growth
Regardless of Commercial Property Transaction Volumes
700 Quarterly Revenue Transaction Volumes
High Inflation 450
2022-2023: +12% Growth

600
Pandemic 400

• 95% subscription revenue 2020-2021: +18% Growth

350

500
• 81% annual contracts
Quarterly Revenue

• Resilient through market cycles 300

(in millions)

400 • Single, integrated global platform 250

200
300

150
200 Great Recession
2009 Revenue: -1%
100

100
50

- -
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
All data as of December 31, 2023. Organic revenue excludes revenue from acquired companies at time of acquisition.
More Diversified with More Countercyclical Business Mix
Since the Great Recession
2008 REVENUE 2023 REVENUE

Other
Marketplaces
Other
5%
Information Revenue Residential
Services 2%
LoopNet
11%
CoStar
38%

CoStar Information
Marketplaces
92% & Analytics
55%
45%

Information
& Analytics Multifamily Information
100% 37% Services
7%

Based on internal CoStar data.

Diversified Client Base with Minimal Concentration

TOP 1,000 CLIENTS:

REVENUE BY CLIENT SEGMENT NONE MORE THAN 2%

Other
15% Broker
21%

Lender
4%

Investor
7%

Property
Management Owner
19% 34%

*Rev enue by client segment and by client extrapolated f rom December 2023 CoStar billing data.
 Successful Acquisition and Integration Track Record
2023 REVENUE COMPOSITION
Acquired
$600 24%

$500
Millions

$400
Organic
76%

$300

$200

$100

$0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Organic Revenue Acquired Revenue for the year following acquisition
High Growth, High Margin Subscription Business Model

✓ 23% Revenue CAGR since IPO 24 years ago

Double-Digit Revenue and
✓ Net Income CAGR of 29% over the last 10 years
Adjusted EBITDA Growth
✓ Adjusted EBITDA CAGR of 14% over the last 10 years
✓ 95% subscription revenue with 81%+ annual contracts
Predictable Subscription
✓ 95% renewal rate for clients > 5 years
Services Revenue
✓ Double-digit revenue growth for 51 straight quarters

✓ 80%+ gross margin

Strong Operating Leverage
✓ Commercial information and marketplace businesses 40% margin

Highly Cash Generative with ✓ Net cash provided by operating activities of $490M for 2023
Strong Balance Sheet ✓ $5.2B cash versus $1B of debt

Note: All data as of 12/31/23.

 Discover your new home.
Helping 100 million renters find their perfect fit.
 Apartments.com by the Numbers

$1B 23%
Year-over-Year
Revenue Run Rate Revenue Growth

#1 1M+
Rank in Brand Rental
Awareness Availabilities

1B 44M
Average Monthly
Annual Visits
Unique Visitors

*All data except revenue as of 12/31/23. Revenue Run Rate based on January 2024 annualized.. Traffic data from Google Analytics FY 2023.
Multifamily Revenue Growth Fully Recovered in 2023 From
the Post Pandemic Downturn
25% 24%
23% 23% 23%

21%
20%
20%
18%
16%

15%

11%
10%
10%

6% 6%
6%
5%

0%
Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23
Our Biggest Customer Count Ever!

~71,000
APARTMENT
COMMUNITIES
now advertise on
Apartments.com
Apartments.com Beats Competition on the Metrics That Matter
to Advertisers

2X
more time
2X
higher
3X more
per visit conversion leases

Sources: Traffic from Comscore Media Matrix, January - December 2023; Lease data from Rent Dynamics, January - September 2023
Unaided Brand Awareness at All Time Highs

52%
53%
52%

50% 49%

40% 44%
40%
36% 36%
35%
34% 34% 34% 37%
32%
31%
33%
30%
30%

20%
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23

Source: Dynata a leading market research sampling provider

Success of Apartments.com

Growth Since Acquisition

2014 2024

5th place in highly fragmented The leading online rental

Industry Rank #1
online rental search industry marketplace

Revenue $75 million $1 billion revenue run rate 13X

4 million average monthly unique

Traffic 44 million monthly unique visitors 11X
visitors

Customers 18,000 communities 71,000 communities 4X

#1 in Brand Awareness per Dynata for 2023. #1 in revenue in 2023 vs. competitors. Revenue Run Rate based on January 2024 annualized including transactional revenue. 2014
ComScore traffic data. 01/24 Google Analytics traffic data. Customer data from internal database.
Tremendous Opportunity Ahead in the Small to Medium Property Space

Annual Revenue Revenue

Unit Range Universe (Units) Client Units TAM ($M)
Run Rate ($M) Penetration

1-49 29M 296K $60M 1% $6B

$7B
opportunity
50-99 5M 836K $112M 11% $1B

100+ 24M 11M $793M 40% $2B

Grand Total 58M 12M $965M 11% $9B

Data as of December 2023 based on CoStar internal estimates. Annual revenue run rate based on annualized December 2023.
Excludes transactional revenue for Independent Owners.
The fastest growing U.S. residential marketplace
Our Vision
Establish Homes.com
as the #1 residential
real estate marketplace
 Homes.com by the Numbers

100M+ Millions
Monthly Unique Leads
Visitors per Quarter

2M+ 20K+
Residential For Sale Neighborhood
and Rental Listings Content

512K 1M+
Agents with Registered Agents
1+ Listing
* Sources: Homes.com surpassed 100 million monthly unique visitors, according to Google Analytics for September 2023. All other based on Internal data as of February 2024.
A Better Business Model – “Your Listing, Your Lead”

• Only Homes.com connects you

to the listing agent who knows the
home best

• No cold calls, robocalls, or spam from

random agents

• Competitor models monetize buyer

agency, taking one third of agent’s
commissions

• Homes.com is providing millions of

free leads to listing agents to help
sell the home
Our Proprietary Content Sets Us Apart. Consumers Aren’t Just
Looking for a Home, They’re Looking for a Community.

Homes.com is digitizing rich content for communities across the U.S.

20,000+
Neighborhoods

40,000+
Parks

125,000+
Schools

65,000+
Condo Buildings
The Real Estate Portals Adhering to the Your Listing Your Lead
Principal are the Most Successful

Not Your Listing

Your Lead Your Listing Your Lead
$2.0 $2.0

$1.5 $1.5

$1.0 $1.0

$0.5 $0.5

$0.0 $0.0
Zillow Redfin CoStar Rightmove REA Group Scout24 Lifull
($0.5) ($0.5) Group

($1.0) ($1.0)

($1.5) ($1.5)
Billions in Net income (loss) for 10-year period from 2014-2023 from publicly filed financial statements. When full year 2023 was not available, trailing twelve
months was used.
“We’ve done your home work.”

2024 Supercharged
Marketing Campaign
BIGGEST
Real Estate
Campaign Ever
Working on behalf of the industry to help
agents sign more buyer and seller
agreements, drive demand for their listings
and close more transactions.

Over a Reaching
BILLION 80 90%
DOLLARS BILLION
invested impressions of households
We Kicked Off The Biggest
Advertising Stage In America

4 QUARTERS,
4 Commercials

Launch Mascot Salon

Homes.com will be EVERYWHERE.
No other competitors come close to
our investment to drive leads to all agents
Our Residential Network Is Now the Second Most Visited Real Estate Portal…

200

150 #2 Residential
Network

100

50

“Average unique monthly users for the latest fiscal quarter ending December 31, 2023 for: (i) CoStar residential network as measured by Google
Analytics; (ii) Zillow’s network as reported in its Earnings Press Release filed 2/13/24(iii) Redfin as reported in its third quarter Form 10-Q filed on
November 2, 2023; and (iv) Realtor.com as reported in News Corp earnings call dated 2/7/24.”
Investing to Create the #1
Residential Portal in the UK

✓Average monthly unique visitors since

acquisition up 143%
✓Listings up 57,000 since acquisition
✓Agent advertisers up 1,000 since acquisition
✓Leads have grown 81% since acquisition
✓2024 Revenue Forecast of $40 million
The global leader in commercial
real estate information, analytics,
and data-driven news
CoStar by the Numbers

$1B 193K+
2024
Subscribers
Forecast Revenue

895K 7M
Listings Commercial
Properties

15M 5M
Lease
Sale Transactions
Transactions

* Revenue Run Rate based on December 2023 annualized. Subscriber count as of February 2024. All other data from CoStar internal database as of December 2023.
 CoStar Product Investments Expand the Market Size,
Resulting in Long-Term Double-Digit Growth
$250
$4B U.S. MARKET SIZE 12% Revenue Growth Rate
Tenants Ten Year CAGR
Hospitality
$200

Lenders
Quarterly Revenue

Owners /
(in millions)

$150
Investors

Brokers /
$100 Appraisers

$50

$0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Total addressable market for CoStar – CoStar estimate.

CAGR based on trailing twelve-month revenue as of 12/31/23.
Unparalleled Research Methodology

1,000+
400 Drones 70
Analysts and
In-market
Economists
canvassers

1 1,600
Cessna capturing
aerial insights Researchers

Automated data
extraction
1,200
Software Developers
To facilitate the
gathering of data

50
Journalists Across
Data feeds and
third-party data
1 Based on 12/31/23 Internal Data
North America & Europe
The #1 global commercial
real estate marketplace
LoopNet by the Numbers

$277M 16%
5 Year Revenue
Revenue Run Rate CAGR

14M ~370K
Monthly Unique CRE Brokers &
Visitors Worldwide Owners Advertising

18X 96%
#1 Google Fortune 1000
keywords than Companies
closest competitor Active on Site

*All data as of December 2023. Run Rate based on December 2023 annualized. Traffic data from Google Analytics.
Commanding Share of Traffic vs. Marketplace Competitors

LoopNet Network vs. Competitors

LoopNet Network
crexi
propertyshark
commercialcafe
officespace
vts 64x
commercialsearch Unique Visitors of the Avg.
reonomy CRE Marketplace Competitor
buildout
commercialexchange
Instantoffices 5x
propertycapsule Unique Visitors of the
rcm1 Nearest Competitor
catylist
realnex
thebrokerlist
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000

Source: SEMRush unique visitors for calendar month ending 12/31/23

LoopNet Revenue Up 5x Since Acquisition

$70
Early Stages of a Massive
Domestic International
Global Opportunity
$60

$5 Billion
Quarterly Revenue in Millions

$50 North American TAM

$40 $15 Billion

Global TAM

$30

$20

$10

$0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
LoopNet International Expansion Underway
LoopNet Canada loopnet.ca LoopNet UK loopnet.co.uk

LoopNet Spain loopnet.es LoopNet France loopnet.fr

 The global leader in hospitality
information, analytics and benchmarking
STR by the Numbers

17% 81K
YoY Subscription
Hotels Worldwide
Revenue Growth

10M 190
Guest Rooms Countries

$300M 98%
Total Addressable
Renewal Rate
Market

*Based on internal CoStar data as of December 2023.

STR Data Includes 81,000+ Hotels Across 190 Countries
The leading platform for lease accounting
and management
Real Estate Manager by the Numbers

12% 97%
5 Year Revenue Customer
CAGR Retention Rate

$10B
Monthly Lease
Payments Managed

625K 33K
Real Estate
System Users
Leases

Revenue CAGR 2018-2023. Retention Rate for fourth quarter 2023. All other data from internal database as of December 2023.
Platform for Managing the Tenant’s Entire Lease Lifecycle

The Most Comprehensive

Portfolio Management
Platform with
Integrated CoStar Real
Estate Data

Drive Cost Savings

Optimize Real Estate Portfolios
Achieve Lease Accounting Compliance
The SMARTER, BETTER, FASTER way
to transact commercial real estate
Ten-X by the Numbers

$31B 92%
Properties Sold in
Assets Sold
90 Days or Less

58%
Trade Rate
Since 2020

94% 85%
Non-Distressed
Close Rate
Assets

Assets sold since inception in 2009. Trade rate since acquisition in 2020. Close rate, time to close and non-distressed assets sold are for the full year of 2023.
Ten-X Platform Closes Deals 2-3x Faster than Offline Transactions

Asset Marketing &

Asset Evaluation Bidder Qualification Contracts & Closing
+- 10
Days

Onboarding & Due Diligence Online Auction

List To Close In Under 100 Days

Ten-X Revenue Opportunity is >$3 Billion at Current Transaction Levels
Market Penetration %
($1M - $10M Property Size) Revenue Opportunity

Current 1.5% $50 Million

5% $155 Million

10% $310 Million

25% $775 Million

33% $1 Billion

100% $3.1 Billion

0 500 1,000 1,500 2,000 2,500 3,000

Annual Revenue (in Millions)

Revenue opportunity based on CoStar estimates.
Commercial Property Sales Transaction Volumes Up 6.4% Year-Over-Year
in January; First Year over Year Gain in 14 Months

Office, Retail, Industrial, Multifamily, and Hotel Sales Volume

125 400%

Change from Previous Year

100 300%
Billions of Dollars

75 200%

50 100%

20.9
22.3
25 0%

0 -100%

Sales Volume Change from Previous Year

The largest rural real estate
marketplace in the country
Land.com by the Numbers

15% 10M
5 Year Revenue Average Monthly
CAGR Visitors

8K+
Paid Clients

450K 50K
Land Sale Comps
in Database Paid Listings

*CAGR 2018-2023. Traffic data from Google Analytics for Q4 23 Paid listing and client data from internal database as of 12/31/23.
Land.com Leads All Competitors in Traffic Share

Land.com Network

LandSearch

LandFlip Network

AcreValue
7.7M
visits per month
Homes And Land

Land Broker MLS 3.3X

our largest competitor
Farm And Ranch

LandHub

- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000

Source: SimilarWeb, Monthly Vi sits, December2023

The largest business-for-sale
marketplace in the U.S.
BizBuySell by the Numbers

10% 38M
5 Year Revenue
CAGR Annual Visits

2.8M
Annual
Leads Delivered

120K 150K
Annual Sold Business
Paid Listings Comps in Database

*CAGR based on 12/31/23. Traffic data for 2023 from Google Analytics. Listing, Lead and Comp data from internal database as of 12/31/23.
Our Network Has More Traffic Than All Competitors Combined

BizBuySell Network

BusinessesForSale.com

FranchiseDirect

FranchiseGator
4M
visits per month

BusinessBroker.net

15X
BizBen our largest competitor

GlobalBX

BusinessMart

* BizBuySell Network traffic vs similar sites; Google Analytics; SimilarWeb, December 2023
Appendix
Non-GAAP Measures

For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they
provide useful information to investors regarding the CoStar Group Inc.’s (the “Company” of “CoStar Group”) financial condition and results of operations, please
refer to the Company’s latest periodic report filed with the Securities and Exchange Commission at www.sec.gov.

EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before interest income or expense, net and other income
or expense, net; loss on debt extinguishment; income taxes; depreciation and amortization.

Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before stock-based compensation expense, acquisition- and integration-related costs,
restructuring costs, and settlements and impairments incurred outside the Company’s ordinary course of business. Adjusted EBITDA margin represents adjusted
EBITDA divided by revenues for the period.

Non-GAAP net income is a non-GAAP financial measure determined by adjusting GAAP net income attributable to CoStar Group for stock-based compensation
expense, acquisition- and integration-related costs, restructuring costs, settlement and impairment costs incurred outside the Company's ordinary course of
business and loss on debt extinguishment, as well as amortization of acquired intangible assets and other related costs, and then subtracting an assumed
provision for income taxes. In 2023, the Company is assuming a 26% tax rate in order to approximate its statutory corporate tax rate excluding the impact of
discrete items.

Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares
outstanding for the period used in the calculation of GAAP net income per diluted share. For periods with GAAP net losses and non-GAAP net income, the
weighted average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the
calculation of GAAP net income per share as the effect was anti-dilutive.

Organic revenues and acquired revenues are non-GAAP measures for reporting financial performance of the business. Organic revenues represent total company
revenues excluding net revenues from acquired companies for the first four full quarters since the entities’ acquisition date. Acquired revenues represents revenues
from acquired companies for the first four full quarters since the entities' acquisition date. After the completion of four full fiscal quarters, changes in revenues of
acquired is treated as organic for future periods. For products discontinued after an acquisition, the lesser of the reported revenues or the actual revenues reported
is included in acquired revenues.
Reconciliation of Net Income to Non-GAAP Net Income - Unaudited

The following table presents a reconciliation of CoStar Group’s, Non-GAAP Net Income, including forward-looking guidance Non-GAAP Net Income, to the most
directly comparable GAAP financial measure, net income.
For the Year
For the Year Ended December 31, For the Three Months Ended Ended
January 31, 2024 - January 31, 2024 - December 31, December 31,
(in millions) except per share amounts (1) (1) (1) (1)
Low 2024 High 2024 Low High 2023 2023

Net income $ 115.0 $ 129.0 $ (5.0) $ (2.0) $ 96.4 $ 374.7

Income tax (benefit) expense 40.0 46.0 (2.0) (1.0) 36.3 126.6
Income before income taxes 155.0 175.0 (7.0) (3.0) 132.7 501.3
Amortization of acquired intangible assets 59.0 59.0 18.0 18.0 19.3 73.7
Stock-based compensation expense 99.0 99.0 24.0 24.0 21.2 85.0
Acquisition and integration related costs - - - - 10.7 12.9
Restructuring and related costs - - - - 0.2 4.1
Settlements and impairments - - - - - (0.1)
Other income (expense), net - - - - (3.8) (3.8)
Non-GAAP income before income taxes 313.0 333.0 35.0 39.0 180.3 673.0
(2)
Asssumed rate for income tax expense 26% 26% 26% 26% 26% 26%
Assumed provision for income tax expesne (81.0) (87.0) (9.0) (10.0) (46.9) (175.0)
Non-GAAP net income $ 232.0 $ 246.0 $ 26.0 $ 29.0 $ 133.4 $ 498.0

Net income per share - diluted $ 0.28 $ 0.32 $ (0.01) $ - $ 0.24 $ 0.92

Non-GAAP net income per share - diluted $ 0.57 $ 0.60 $ 0.06 $ 0.07 $ 0.33 $ 1.22

Weighted average outstanding shares - diluted 409.4 409.4 409.0 409.0 407.5 406.9

(1)
Represents forward-looking guidance.
Reconciliation of Net Income to Adjusted EBITDA - Unaudited

The following table presents a reconciliation of CoStar Group’s Adjusted EBITDA, including forward-looking guidance range Adjusted EBITDA for the full year
ending December 31, 2023, to the most directly comparable GAAP financial measure, net income.

For the Three For the Three For the Three

For the Year Ending December 31, Months Ended Months Ended Months Ended
January 31, 2024 - January 31, 2024 - December 31,
(in millions)
2013 2023 Low 2024(1) High 2024(1) Low(1) High(1) 2023

Net income $ 29.7 $ 374.7 $ 115.0 $ 129.0 $ (5.0) $ (2.0) $ 96.4

Amortization of acquired intangible assets 27.1 73.7 59.0 59.0 18.0 18.0 19.3
Depreciation and other amortization 13.0 33.8 53.0 53.0 12.0 12.0 9.4
Interest income, net 6.6 (213.6) (198.0) (198.0) (56.0) (56.0) (59.7)
Other (income) expense, net - (5.4) 2.0 2.0 (3.0) (3.0) (3.7)
Income tax (benefit) expense 17.8 126.6 40.0 45.0 (2.0) (1.0) 36.3
EBITDA 94.2 389.8 71.0 90.0 (36.0) (32.0) 98.0
Stock-based compensation expense 41.5 85.0 99.0 99.0 24.0 24.0 21.2
Acquisition and integration related costs 0.6 12.9 - - - - 10.7
Restructuring and related costs 0.4 4.1 - - - - 0.2
Settlements and impairments - (0.1) - - - - -
Adjusted EBITDA $ 136.7 $ 491.7 $ 170.0 $ 190.0 $ (12.0) $ (8.0) $ 130.1

(1)
Represents forward-looking guidance.
Use of Operating Metrics and Other Definitions
CoStar Group reviews a number of operating metrics to evaluate its business, measure performance, identify trends, formulate business plans and make strategic
decisions. This presentation includes Net New Bookings. Going forward, CoStar Group expects to use these operating metrics on a periodic basis to evaluate and
provide investors with insight into the performance of the Company’s subscription-based services.

Net New Bookings are calculated based on the annualized amount of change in the Company's sales bookings, resulting from new subscription-based contracts,
changes to existing subscription-based contracts and cancellations of subscription-based contracts for the period reported. Information regarding net new bookings
is not comparable to, nor should it be substituted for, an analysis of the Company's revenues over time.

Other Definitions

References to “commercial information and marketplace businesses” refer to our consolidated financial position and results excluding the impact of our Residential
brands, which are Homes.com and OnTheMarket, plc.

Our “Residential Network” consists of the following list of brands: Apartments.com, ApartmentFinder, FinderSites, ApartmentHomeLiving, WestSideRentals,
ForRent, After55, CorporateHousing, ForRentUniversity, Move.com (ending in December 2022), Cozy.com, Off Campus Partners, Homes.com, Homesnap,
CitySnap, and OnTheMarket,plc (beginning in January 2024).