#1CoStar Group™ Third Quarter 2023 Investor Presentation EUROS#2Legal 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; 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. 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 Organic Revenues, Acquired Revenues, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP Net Income and Non-GAAP Net Income per Share, 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. CoStar Group™#3CoStar Group™ Third Quarter 2023 Highlights 1001#4Third Quarter 2023 Highlights • • • Third quarter 2023 revenue increased 12% year-over-year. Commercial information and marketplace businesses grew 14% year-over-year. 50 consecutive quarters of double-digit revenue growth. Homes.com traffic reached 100 million unique visitors in September, up 1,290% from September 2022 to become the second most trafficked residential site in the U.S. Residential network traffic was 141 million unique visitors, more than Realtor and Redfin combined. • • Apartments.com revenue growth accelerated to 24% year-over-year. Strong net new bookings of $65 million in the third quarter. • Offer to acquire OnTheMarket - the third most visited residential property portal in the United Kingdom. Source: In September 2023, Homes.com surpassed 100 million monthly unique visitors, according to Google Analytics, exceeding Realtor.com's 74 million monthly average unique visitors for its fiscal fourth quarter as reported in its earnings release on August 10, 2023, and Redfin's 52 million monthly average unique visitors for the quarter ended June 30, 2023 as reported in its Form 10-Q filed August 3, 2023 CoStar Group™#5Homes.com Skyrockets Past 100M Unique Visitors in September Now #2 Most Trafficked U.S. Residential Site Unique Visitors in Millions 100 90 88 80 70 70 60 60 50 50 40 100+ MILLION Unique Visitors 30 20 10 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 CoStar Group™ Homes.com Source: In September 2023, Homes.com surpassed 100 million monthly unique visitors, according to Google Analytics, exceeding Realtor.com's 74 million monthly average unique visitors for its fiscal fourth quarter as reported in its earnings release on August 10, 2023, and Redfin's 52 million monthly average unique visitors for the quarter ended June 30, 2023 as reported in its Form 10-Q filed August 3, 2023#6Our Websites Reached 160 Million Unique Visitors in September 2023 160 CoStar™ LoopNet™ Ten-X™ 140 Apartments.com™ Homes.com™ Land.com™ 120 100 BizBuySell™ BUREAUXLOCAUX BELBEX.com Unique Visitors in Millions 60 60 80 80 40 40 20 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CoStar Group™ Source: Google Analytics Unique Visitors - All CoStar Sites#7OnTheMarket Acquisition Offer Announced October 19th, 2023 • . • • • • • OnTheMarket is the third most visited residential property portal in the United Kingdom with approximately 20 million site visits per month¹ Founded by agents in 2013 as an agent friendly competitive alternative to the existing UK property portals Over 13,000 agents advertise with OnTheMarket² Revenue for the twelve-month period ending July 31, 2023, was approximately £35 million³, with adjusted EBITDA of £8 million4 Acquisition represents an attractive and efficient entry point into the £8 trillion United Kingdom residential property market Transaction multiples for trailing twelve month period are 2.5x revenue and 11x adjusted EBITDA Offer price £1.10 per share in cash or approximately £100 million Offer subject to shareholder approval and customary closing conditions. Transaction is expected to close in fourth quarter 2023 OnTheMarket How much is your home worth? Get an instant valuation Value my home Buy Rent Agents New homes Commercial Money matters Sign In Your property search just got serious Buy Rent Agent valuation Instant valuation Where do you want to buy? eg Bristol, BA12LR Find out your home's value, instantly Get a free online estimate of your home's current value in minutes a Start instant valuation 1 Calculated as 119 million visits over the period of February 2023-July 2023, divided by six months 2 Advertisers are defined as either estate and lettings agent branches or new home developments listed at OnTheMarket.com 3 Calculated as the sum of 1H FY2024 revenue of £17mm, per OnTheMarket's FY2024 interim results announcement, and 2H FY2023 revenue, which is derived from Full Year FY2023 revenue of £35mm, per OnTheMarket's FY2023 Annual Report, less 1H FY2023 revenue of £17mm, per the FY2024 interim results announcement. 4 Calculated as the sum of 1H FY2024 EBITDA of £3mm, per On TheMarket's FY2024 interim results announcement, and 2H FY2023 EBITDA, which is derived from Full Year FY2023 EBITDA of £8mm, per On The Market's FY2023 Annual Report, less 1H FY2023 EBITDA of £3mm, per the FY2024 interim results announcement. CoStar Group™#8Third Quarter and Year to Date 2023 Results Third Quarter Year-To-Date Revenue Adjusted EBITDA $625 million 12% year-over-year growth $112 million 18% margin $1.8 billion 13% year-over-year growth $362 million 20% margin Net new bookings $65 million $228 million Net income Non-GAAP net income $91 million $0.22 per diluted share $120 million $0.30 per diluted share $278 million $0.68 per diluted share $365 million $0.90 per diluted share CoStar Group™#92023 Fourth Quarter and Full Year Outlook Revenue Fourth Quarter $630 million to $635 million 10% year-over-year growth Full Year $2.445 billion to $2.450 billion 12% year-over-year growth Adjusted EBITDA $123 million to $128 million 20% margin $485 million to $490 million 20% margin Net income $97 million to $101 million $0.24 to $0.25 per diluted share $376 million to $380 million $0.92 to $0.93 per diluted share Non-GAAP net income $127 million to $130 million $0.31 to $0.32 per diluted share $492 million to $496 million $1.21 to $1.22 per diluted share CoStar Group™#10CoStar Group™ Company Overview COURTYARD#11MISSION STATEMENT We are digitizing the world's real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives. CoStar Group™#12CoStar Group is the Global Leader in Digitizing Real Estate 37 years of real estate experience One billion+ annual visits to our websites $5 billion+ investment in research and technology 5,700 employees member of the STANDARD FORTUNE FASTEST & POOR'S 500 100 GROWING INMAN INNOVATOR AWARDS COMPANY OF THE YEAR The ASSOCIATION SABEW for BUSINESS JOURNALISTS Innovator of the Year COMPANIES Forbes FUTURE 50 FORTUNE The World's Most Innovative Companies Nasdaq 100 INDEX GLOBAL 2000 WORLD'S LARGEST PUBLIC COMPANIES Forbes 2021 SHORTY AWARDS Best Integrated Marketing Campaign 75 offices *All numerical data as of September 30, 2023 14 countries ~$30 billion market capitalization $5 billion+ in cash on hand CoStar Group™#13A 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: 50 consecutive quarters of double- digit revenue growth, both organic and through acquisitions. Attractive financial model: Over 95% subscription revenue. 90%+ renewal rates*. Strong margins, high free cash flow and a fortress balance sheet. *All data as of September 30, 2023. Subscription revenue includes all contracts regardless of term. Renewal rate refers to contracts with 12 month or longer terms. CoStar Group™#14Global Real Estate: A $300 Trillion Asset Class U.S. REAL ESTATE $70 TRILLION (Year CoStar entered market) Single Family Residential/ New Homes (2020) Office (1986) Industrial (1994) Retail (2004) Rural Land (2011) Apartment (2014) Hotel (2019) U.S. Real Estate Sources: Office CoStar estimate Industrial - CoStar estimate Retail CoStar estimate Rural Land-U.S. Department of Agriculture Apartment-CoStar estimate Hotel CoStar estimate Single Family - Federal Reserve Flow of Funds and Urban Institute New Homes - Federal Reserve Economic Data (FRED) Global Real Estate Sources: Global real estate value calculated by scaling U.S. real estate value based on the U.S. share of global GDP, Global GDP data from The World Bank GLOBAL REAL ESTATE $300 TRILLION Canada France UK India Germany United States China CoStar Group Offices Based on 2023 Data CoStar Group™#15~$40B North American Addressable Market, Global Market > $100B CoStar™ Apartments.com™ LoopNet™ Ten-X Homes.com TAM Sources: 0% 10% 20% 30% CoStar, Apartments, LoopNet and Ten-X - CoStar estimate Homes.com - extrapolation of Borrell Associates "2019 Real Estate Advertisement Outlook" combined with CoStar estimate Total North American Addressable Market $4 Billion $9 Billion $5 Billion $6 Billion >$15 Billion 40% 50% 60% 70% 80% 90% 100% CoStar Group™#16Consistent Double Digit Revenue Growth 16% $2.2B TOTAL 5 YEAR REVENUE CAGR $1.9B $1.7B $1.4B $1.2B 2018 2019 ■ CoStar ■Multifamily ■LoopNet $2.5B 5 YEAR CAGR 23% 20% 16% 18% 11% 2020 2021 2022 2023E ■Residential ■Information Services ■Other Marketplaces CoStar Group™#17Quarterly Revenue (in millions) 50 Consecutive Quarters of Double-Digit Revenue Growth Regardless of Commercial Property Transaction Volumes 700 Quarterly Revenue Transaction Volumes High Inflation 600 Sustained double-digit revenue growth 500 95% subscription revenue 80% annual contracts1 400 300 200 100 • Resilient through market cycles • Single, integrated global platform Great Recession 2009 Revenue: -1% M 2022-2023: +12% Growth 400 Pandemic 2020-2021 +18% Growth 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1 As of September 30, 2023. Organic revenue excludes revenue from acquired companies at time of acquisition. 2022-2023 revenue growth rate based on full year 2022 and 2023 run rate revenue. 2023 350 300 | 250 CoStar Group™ 200 150 100 50 50#18More Diversified with More Countercyclical Business Mix Since the Great Recession 2008 REVENUE Other Information Revenue Services CoStar 92% Marketplaces 55% Information & Analytics 100% 2023E REVENUE Other Marketplaces 5% Residential 2% LoopNet 11% CoStar 38% Information & Analytics 45% Multifamily 37% Information Services 7% CoStar Group™#19Diversified Client Base with Minimal Concentration Other 14% REVENUE BY CLIENT SEGMENT Lender Investors 7% 4% Property Management 19% Brokers 22% Owners 34% TOP 1,000 CLIENTS: NONE MORE THAN 2% *Revenue by client segment and by client extrapolated from September 2023 CoStar billing data. CoStar Group™#20Millions Successful Acquisition and Integration Track Record 2023 REVENUE COMPOSITION $600 Acquired $500 $400 $300 $200 $100 22% FOCUS SPN COMPS.COM Organic 78% OFF CAMPUS partne M Realla. ForRent.com® Westside Rentals LandWatch THOMAS DAILY Apartment Finder™ Apartments.com™ str BUSINESS IMMO BUREAUXLOCAUX Homes.com™ homesnap Ten-X™ ✓ LoopNet- Lands of America™ BizBuySell PPR Virtual Premise™ Propex $0 ■■■ 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CoStar Group™ ■ Organic Revenue ■Acquired Revenue for the year following acquisition#21High Growth, High Margin Subscription Business Model Double-Digit Revenue and Adjusted EBITDA Growth Predictable Subscription Services Revenue Strong Operating Leverage ✓ 23% Revenue CAGR since IPO 24 years ago ✓ Net Income CAGR of 29% over the last 10 years Adjusted EBITDA CAGR of 14% over the last 10 years ✓ 95% subscription revenue with 82%+ annual contracts ✓ 96% renewal rate for clients > 5 years ✓ Double-digit revenue growth for 50 straight quarters ✓ 80%+ gross margin ✓ Commercial business approaching 40% margin Highly Cash Generative with Strong Balance Sheet Net cash provided by operating activities of $526M for trailing twelve months $5.2B cash versus $1B of debt Note: All data as of 9/30/23. CoStar Group™#22ESG Recent Accomplishments • Calculated Greenhouse Gas baseline emissions in 2022 Completed CDP Questionnaire CoStar Group ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT 2023 • • Signed Net Zero Commitment with Science Based Target initiative ISS 50% Score Improvement To read our full 2023 ESG Report visit: https://investors.costargroup.com/ESG CoStar Group™#23CoStar™ The global leader in commercial real estate information, analytics, and data-driven news All Properties Frekssonal Ma CoStar Public Record Marketing Center Enterprise Underwriting & Rent Survey Peports Lessing Sales Tenants Mu-Family Shopping Centers . CLEVELAND PARK THEDRAL HEIGHTS ev PARK VIEW MY PLEASANT WOODLEY PARK LANER HEIGHTS GEORGETOWN ALORAMA OUTFAK EDGEWOOD HEIGHTS BOOKLAND BRENTWOOD CITY LANGDON ARBORETUM NORTHEAS MASHINGTON STREET CARVER LANGSTON 9 HIGHLAND NORTH POLYN QUARTER Rooseve and KINGMAN PARK COLONIAL VILLAGE Comps ww PENROSE FORCHO HEIGHTS ARLINGTON WASHINGTON CAPITOL H PITOL FAIRLANN ANACOSTIA Add a Listing Clew Fiters 0 Sort Save Reports More-> 20 Massachusetts Ave NW WDC 2 FORT LINCOLN GATEWAY 182134 - Under Cen 13802-181063 0-0 178304 SFM Cong ***** 1152 15th St NW Washing DC 20005 Ombia Cen 2165 DF-Once Bun 200 129200 SF Man Cont 801 17th St NW Wangin DC 20006 257.754 - Ofe Butt 2009 2000-4410 OF Aval 21.931 F Mas Cry ***** $4500-7000F 660 N Capitol SINW Washington DC 2000-public Sour 167 587 SP Out 2010 2000-75731 SF Ava 15.300 SF Max Cong ***** 54850-6700 GREENWAY PONT PARK 1015 Hall St SE Washington, DC 200031015 2.543-6722 Aval 4579 OF MO RANDLE HIGHLANDS 111K SINE Whington DC 2000 70 SF-Office-Bu 2010 300-54294 SF Ava $47.00-585 © © CoStar Group™#24CoStar by the Numbers CoStar™ TM $930M Revenue Run Rate 180K+ Subscribers 890K+ Listings 14.8M+ Lease Transactions *Data from CoStar internal database as of September 2023. Run Rate based on Q3 2023 annualized. 7.1M+ Commercial Properties 5.2M+ Sale Transactions CoStar Group™#25Quarterly Revenue (in millions) CoStar Product Investments Expand the Market Size, Resulting in Long-Term Double-Digit Growth $250 $4B U.S. MARKET SIZE Hospitality Tenants $200 $150 Lenders $100 $50 Brokers / Appraisers Owners / Investors 13% Revenue Growth Rate Ten Year CAGR $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CoStar™ Total addressable market for CoStar - CoStar estimate. CAGR based on trailing twelve-month revenue as of 9/30/23. CoStar Group™#26Unparalleled Research Methodology 300 In-market canvassers 000 1,000+ Drones 1 Cessna capturing aerial insights CoStar™ 1 Based on 8/31/23 Internal Data Automated data extraction 50 Journalists Across North America & Europe Data feeds and third-party data 70 Analysts and Economists 1,500 Researchers 1,000 Software Developers To facilitate the gathering of data CoStar Group™#27Apartments.com™ Discover your new home. Helping 100 million renters find their perfect fit. CoStar Group#28Apartments.com by the Numbers $940M Revenue Run Rate 24% Year-over-Year Revenue Growth Apartments.com™ #1 Rank in Brand Awareness 1B Annual Visits 1M+ Rental Availabilities 45M Average Monthly Unique Visitors *All data as of September 2023. Revenue Run Rate based on Q3 2023 annualized. Brand awareness from Dynata, a leading market research sampling provider.. Traffic data from Google Analytics. CoStar Group™#29Apartments.com Beats Competition on the Metrics That Matter to Advertisers 2X more time per visit 2X 3X more leases higher conversion Sources: Traffic from Comscore Media Metrix, YTD 2023; Lease data from Rent Dynamics, April - June 2023 CoStar Group™#30Record Unaided Consumer Brand Awareness 32% 35% 34% 31% Apartments.com TM 36% 36% 34% 34% 33% 30% 37% 40% 49% 53% '20 Q1 '20 Q2 '20 Q3 '20 Q4 '21 Q1 '21 Q2 '21 Q3 '21 Q4 '22 Q1 '22 Q2 '22 Q3 '22 Q4 '23 Q1 '23 Q2 23 Q3 Source: Dynata a leading market research sampling provider CoStar Group™#31Success of Apartments.com THE WALL STREET JOURNAL. CoStar to Acquire Apartments.com for $585 Million Growth Since Acquisition 2014 2023 Industry Rank 5th place in highly fragmented online rental search industry The leading online rental marketplace* #1 Revenue $86 million $940 million revenue run rate 11X Traffic 4 million monthly uniques 45 million average monthly uniques 11X Customers 18,000 communities 69,000 communities * 2023 #1 in Brand Awareness and Revenue. 2023 Revenue Run Rate based on Q3 2023 annualized. 2014 ComScore traffic data. 2023 Google Analytics traffic data. Customer data from internal database. Apartments.com™ 4X CoStar Group™#32Tremendous Opportunity Ahead in the Small to Medium Property Space Unit Range Universe Client Properties Annual Revenue Run Rate Revenue Penetration TAM ($M) 1-49 23M 11K $60M 1% $6B $7B opportunity 50-99 68K 11K $108M 11% $1B 100+ 102K 43K $772M 39% $2B Grand Total 23M 65K $940 10% $9B Apartments.com™ Data as of September 2023 CoStar Group™#33LoopNet™ The #1 global commercial real estate marketplace Menu Help Washington, DC USA LoopNet a For Lease v Space Use v Lease Rotev Available Space v Al Fiters District of Columbia/Washington/Washington Commercial Real Estate for Lease IT MYER CLEVELAND PARK CRESTWOOD MY PLEAS WOODLEY PARK ° ° O o FA 0 Adverti 500 Results Create Reports Save Search Sort v 1500 K St NW 32,137 SF Available Washington, DC Boundary ROOKLAND 0 LEGEWOOD ° LAND 4 Stor | Built in 1928 2.229-32.1575 LEED Certified Gold Experience unparalleled visibility with high-profile retail/estaurant space in a timeless DC office at McPherson Square steps to the metro and the White House CBRE Jared Taylor Hoyes 1300 Pennsylvania Ave NW Ronald Reagan Building VIRTUAL TOUR 72,180 SF Office Available Washington, DC 4 Stor Built in 1998 2.885-72.1805 $29.00-$5000 5FYR Landmark connected to Federal Triongle Metro with 20 on-site dining options, 86,000 square feet of conference and event spook, and newly built-out offices CoStar Group™#34LoopNet by the Numbers $270M Revenue Run Rate 16% 5 Year Revenue CAGR LoopNet TM 14M Monthly Unique Visitors Worldwide 93% #1 Position for CRE Terms in Google 370K+ CRE Brokers & Owners Advertising 97% Fortune 1000 Companies Active on Site *All data as of September 2023. Run Rate based on Q3 2023 annualized. Traffic data from Google Analytics. CoStar Group™#35Commanding Share of Traffic vs. Marketplace Competitors LoopNet Network vs. Competitors LoopNet Network crexi propertyshark commercial cafe officespace commercial exchange commercial search vts buildout Instantoffices commercial mls reonomy myelisting globallistings propertycapsule rcm1 50x Unique Visitors of the Avg. CRE Marketplace Competitor 7x Unique Visitors of the Nearest Competitor 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 LoopNet™ Source: SEMRush 7/31/23 CoStar Group™#36LoopNet Revenue Up 5x Since Acquisition $70 Early Stages of a Massive Global Opportunity Domestic ■International $60 $50 $40 $5 Billion North American TAM $15 Billion Global TAM Quarterly Revenue in Millions $30 $20 $10 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ☑LoopNet- CoStar Group™#37LoopNet International Expansion Underway LoopNet Canada Menu LoopNet Find your next commercial property loopnet.ca Log In Sign Up LoopNet UK Menu Advertise Trends CRE Soles Plummet in Ga Expected Here's What to focus on Next Are More Apartments in Stone for America's Malls? Deconstructing the Deal: Here Are All of Loophet's Deals of the For Sale For Lease Businesses For Sale Enter a property type Enter a location LoopNet Spain Menú LoopNet Search loopnet.es Iniciar Sesión Inscribirse Encuentre su próxima propiedad comercial Venta Aquilar Buscar zona Buscar una ubicación Tendencias Clinicas de fertilidad, spas para mascotas y otros conceptos minoristas emergentes LoopNet Buscar Trends Set Piece How Brentford FC's New Pitch is Changing West London Here's Where London Office Tenants Are Rapidly Letting Space Overcoming the Challenges (and Stigma) in an Office to Anunciar Menu LoopNet loopnet.co.uk Log In Sign Up Advertise Find your next commercial property For Sale For Lease Enter a property type Enter a location Search LoopNet France LoopNet loopnet.fr Connectez-vous S'inscrire Annoncer Trouvez votre prochaine propriété commerciale Les tendances A vendre À louer Entrer un type de propriété Paris Vous voulez un accord avec Le profit ? Marcus Lemonis A Vendre Une Propriété Rechercher echerch0Ger A CoStar Group™#38Homes.com™ The fastest growing U.S. residential marketplace CoStar Group™#39Find an Agent Homes.com Find your home with the people you trust. For Sale Place, Neighborhood, School or Agent Our Vision Establish Homes.com as the #1 residential real estate marketplace Hassle-Free Home Search Only Homes.com connects you directly to the listing agent who knows the home best. No cold calls, robocalls, or spam from random agents. Register Sign In 21 Search, connect, collaborate, and share on your terms. Agent Directory Find the best experienced agent for your home search needs → Collaborate Invite your agent and co-shopper to search with you → New to Market $850,000 1 hour ago $799,500 18 hours ago $399,900 18 hours ago $534,900 18 hours ago CoStar Group™#40Homes.com by the Numbers 100M+ Monthly Unique Visitors Millions Free Leads per Quarter Homes.com™ 2.1M+ Residential For Sale and Rental Listings 15K+ Neighborhood Content 630K Agents with 1+ Listing Sources: Homes.com surpassed 100 million monthly unique visitors, according to Google Analytics. All other based on Internal data as of September 30, 2023. 1M+ Registered Agents CoStar Group™#41A Better Business Model - "Your Listing, Your Lead" ● Only Homes.com connects you Find an Agent Homes.com Prev Next 21 ● ● 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 $650,0 5857 Lowel Alexandria, Lincolnia Hi Estimated Homes.com LISTING AGENT BO Katie Wethman EXP Realty, LLC Acres About Thi Welcome to (plus a base room with c large wind (703) 655-7672 Hi Katie, I would like to know more about this listing. main level living inviting living Enter space and a wer level includes Send a Message No Fake Agents on Homes.com We connect you directly to the listing agent who knows the home best. No cold calls, robocalls, or spam from random agents. LISTING AGENT Katie Wethman EXPLO (703) 655-7672 Hi Katie, I would be to know howe about this listing CoStar Group™#42"Your Listing, Your Lead" Delivering Real Value to Agents MILLIONS of FREE LEADS Homes.com BILLIONS in COMMISSION SAVING VALUE BILLIONS in REFERRAL FEES CoStar Group™#43Our Proprietary Content Sets Us Apart. Consumers Aren't Just Looking for a Home, They're Looking for a Community. Find an Agent Homes.com is digitizing rich content for communities across the U.S. Homes.com JAGRAN BEACH, CA Register / Sign In 20,000+ Neighborhoods 40,000+ Parks Ocean Beach Neighborhood in San Diego, California San Diego County 92107 Niche Reviews NICHE ✰✰✰✰4.1 56 Reviews $1,416,436 Average List Price $1,134 Average Price per Sq Ft 7 Homes For Sale Just north of the rocky Sunset Cliffs coast, lively Ocean Beach attracts artisans, surfers and even dog lovers to its sandy beaches extending from SoCal's longest pier to a serene jetty. When you live here, you call it OB, and you can walk or bike its neat framework of streets to the coastline's blue-green breakers. CC Summerfield, local resident and Realtor with eXp Realty of California, Inc.. says. "OB is really a great beach life. As a local, we say you really don't have to go outside your bubble; you have all you need without Homes.com Search for Homes in this Area See Agents with Experience in this Area 125,000+ Schools 65,000+ Condo Buildings CoStar Group™#44Net Income ($ in millions) Marketing the Property is the Superior Financial Model Contact Agent $945,000 5 Beds 3.5 Baths 2,394 Sq Ft 4705 16th St NW, Washington, DC 20011 Motivated sellers will entertain any reasonable offer. Price Improvement and unique financing opportunity for the first two years save up to $1,000 per month in lower mortgage payments for the first two years! The previous buyer got cold feet! Don't miss out on this... Matthew Paschall Compass Companies that Market the Agent Companies that Market the Property 300 200 ($1.8) Billion Cumulative Net Loss 100 0 (100) (200) (300) (400) (500) (600) 300 200 ויין יידי Net Income ($ in millions) 100 0 (100) (200) $2.5 Billion Cumulative Net Income (300) (400) (500) (600) 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Homes.com Source: Aggregate of publicly disclosed data for competitors in the industry. CoStar Group™#45STR The global leader in hospitality information, analytics and benchmarking CoStar Group™#46STR by the Numbers 22% YoY Subscription Revenue Growth 78K Hotels Worldwide STR *Based on internal CoStar data as of September 2023. 10M Guest Rooms $300M Total Addressable Market 97% Renewal Rate 190 Countries CoStar Group™#47STR Data Includes 78,000+ Hotels Across 190 Countries STR CoStar Group™#48FARSONS CoStar REAL ESTATE MANAGER™ The leading platform for lease accounting |- and management STIR XXX CoStar Group#49Real Estate Manager by the Numbers 17% 5 Year Revenue CAGR 97% Customer Retention Rate CoStar™ REAL ESTATE MANAGER 625K Real Estate Leases CAGR and Retention Rate based on 9/30/23 trailing twelve-month period. All other data from internal database as of August 2023. $4B Monthly Lease Payments Managed 33K System Users CoStar Group™#50Platform for Managing the Tenant's Entire Lease Lifecycle Administration e CoStar Data & Analytics The Most Comprehensive Portfolio Management Platform with Integrated CoStar Real Estate Data Drive Cost Savings Optimize Real Estate Portfolios Achieve Lease Accounting Compliance 棉 Accounting Projects CoStar REAL ESTATE MANAGER™ Planning Transactions CoStar Group™#51TM Ten-X™ The SMARTER, BETTER, FASTER way to transact commercial real estate CoStar Group™#52Ten-X by the Numbers Ten-X™ TM $31B Assets Sold 93% Close Rate 63% Trade Rate Since 2020 Assets sold since inception in 2009. Trade rate since acquisition in 2020. Close rate, time to close and non-distressed assets sold are YTD 2023. 90% Properties Sold in 90 Days or Less 84% Non-Distressed Assets CoStar Group™#53Ten-X Platform Closes Deals 2-3x Faster than Offline Transactions Asset Evaluation START +10 DAYS Onboarding & Due Diligence Ten-X™ Asset Marketing & Bidder Qualification ±45 DAYS Contracts & Closing 2 ±30 DAYS Online Auction - List To Close In Under 100 Days DAYS CoStar Group™#54Ten-X Revenue Opportunity is >$3 Billion at Current Transaction Levels Market Penetration % ($1M $10M Property Size) Current 1% Revenue Opportunity $50 Million 5% 10% 25% 33% 100% 0 500 1,000 1,500 2,000 Annual Revenue (in Millions) Ten-X™ Revenue opportunity based on CoStar estimates. $155 Million $310 Million $775 Million $1 Billion $3.1 Billion 2,500 3,000 CoStar Group™#55Land.com™ The largest rural real estate marketplace in the country CoStar Group™#56Land.com by the Numbers Land.com™ HARM CHEDY 16% 5 Year Revenue CAGR 10M Average Monthly Visitors 430K+ Land Sale Comps in Database 8K+ Paid Clients *CAGR and leads based on 9/30/23 trailing twelve-month period. Traffic data from Google Analytics for Q3 23 Paid listing and client data from internal database as of 8/31/23. 50K+ Paid Listings CoStar Group™#57Land.com Leads All Competitors in Traffic Share Land.com™ LandSearch LandFlip Network AcreValue Homes And Land Land Broker MLS Farm And Ranch LandHub 7.6M visits per month 2.6X our largest competitor Land.com™ Source: SimilarWeb, Monthly Visits, August 2023 CoStar Group™#58BizBuySell™ The largest business-for-sale marketplace in the U.S. OPEN EVERY DAY CoStar Group™#59BizBuySell by the Numbers BizQuest BizBuySell TM BaBuySell Florida Find a business for sale All Industries Search OP The Most Sellers The Most Traffic Find the right Business or Franchise for you Storage and Wareho Hote Websites and Ecommerce Festourants 10% 5 Year Revenue CAGR 35M Annual Visits 120K Annual Paid Listings 2.5M Annual Leads Delivered 150K Sold Business Comps in Database *CAGR based on trailing twelve-month revenue from 9/30/23. Run Rate based on Q3 2023 annualized. Traffic data from Google Analytics. Listing, Lead and Comp data from internal database as of 8/31/23. CoStar Group™#60Our Network Has More Traffic Than All Competitors Combined BizBuySell BusinessesForSale.com FranchiseGator FranchiseDirect BusinessBroker.net BizBen 4M visits per month 14x our largest competitor BusinessMart GlobalBX BizBuySell™ * BizBuySell Network traffic vs similar sites; SimilarWeb, August 2023 CoStar Group™#61CoStar Group™ Appendix CoStar Group CoStar Group CoStar Group Costar Group 19055 CoStar Group 21930#62Non-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. CoStar Group™#63Reconciliation of Net Income to Non-GAAP Net Income 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 Nine For the Year Ended December 31, December 31, (in thousands) except per share amounts Low 2023 (1) High 2023 (1) 2023 - Low (1) For the Three Months Ended December 31, 2023 - High(1) September 30, 2023 Months Ended September 30, 2023 Net income Income tax expense $ 376,000 123,000 380,000 124,000 $ 97,000 33,000 $ 101,000 34,000 $ 90,574 29,907 $ 278,225 90,272 Income before income taxes 499,000 504,000 130,000 135,000 120,481 368,497 Amortization of acquired intangible assets 73,000 73,000 18,000 18,000 18,707 54,364 Stock-based compensation expense 86,000 86,000 22,000 22,000 21,899 63,770 Acquisition and integration related costs 3,000 3,000 1,000 1,000 796 2,272 Restructuring and related costs Settlements and impairments 4,000 4,000 509 3,880 (107) Non-GAAP income before income taxes Asssumed rate for income tax expense Assumed provision for income tax expesne Non-GAAP net income 665,000 (2) 26% 670,000 26% 171,000 176,000 26% 26% 162,392 26% 492,676 26% (172,900) $ 492,100 $ (174,200) 495,800 (44,500) $ 126,500 $ (45,800) 130,200 (42,222) (128,096) $ 120,170 $ 364,580 Net income per share - diluted Non-GAAP net income per share - diluted Weighted average outstanding shares - diluted (1) Represents forward-looking guidance. $ 0.92 $ 0.93 $ 0.24 $ 0.25 $ 0.22 $ 0.68 $ 1.21 $ 1.22 $ 0.31 $ 0.32 $ 0.30 $ 0.90 406,800 406,800 (2) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period. 407,400 407,400 407,229 406,713 CoStar Group™#64Reconciliation of Net Income to Adjusted EBITDA 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. (in thousands) 2012 For the Year Ending December 31, For the Three Months Ended December 31, 2022 Low 2023 (1) High 2023 (1) 2023 - Low(1) For the Three Months Ended December 31, 2023 - High(1) For the Three Months Ended September 30, 2023 Net income 9,915 369,453 376,000 Amortization of acquired intangible assets 22,241 102,579 73,000 380,000 73,000 $ 97,000 101,000 90,574 18,000 18,000 8,453 Depreciation and other amortization 10,511 29,127 34,000 34,000 10,000 10,000 18,672 Interest income, net (526) (32,125) (212,000) (212,000) (58,000) (58,000) (58,422) Other (income) expense, net 4,832 (3,383) (2,000) (2,000) (465) Income tax expense 13,219 117,004 123,000 124,000 33,000 34,000 29,907 EBITDA 60,192 582,655 392,000 397,000 100,000 105,000 88,719 Stock-based compensation expense 12,282 75,207 86,000 86,000 22,000 22,000 21,899 Acquisition and integration related costs 13,924 5,405 3,000 3,000 1,000 1,000 796 Restructuring and related costs 2,175 4,000 4,000 509 Settlements and impairments 6,069 Adjusted EBITDA $ 86,398 $ 671,511 $ 485,000 $ 490,000 $ 123,000 $ 128,000 111,923 Represents forward-looking guidance. CoStar Group™#65Use of Operating Metrics 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. CoStar Group™