ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT 2023
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.
CoStar Group™View entire presentation