CoStar raises annual revenue forecast on surge in new bookings

(Reuters) -CoStar, a commercial real estate data and analytics firm, raised annual revenue forecast and beat third-quarter estimates on Tuesday, driven by higher bookings and growth across its subscription-based platforms such as Homes.com. U.S. homebuilder sentiment has been recovering amid hopes that declining mortgage rates would revive housing demand, though persisting economic volatilities and a lackluster labor market are likely to temper some of the anticipated boost. The company expects full-year 2025 revenue to be between $3.23 billion and $3.24 billion, compared with $3.14 billion to $3.16 billion forecast earlier. Analysts on average were estimating $3.18 billion, according to data compiled by LSEG. Real estate agents and customers rely on platforms such as CoStar, which offers users access to detailed property listings, leasing and sales information, tenant profiles and up-to-date demand statistics. The company reported net new bookings of $84 million for the third quarter, a 92% jump over the year earlier. The Apartments.com owner reported revenue of $834 million for the three months ended September 30, above analysts' estimate of $813.1 million. Its adjusted earnings of 23 cents per share also beat the estimate of 18 cents. Shares of the Arlington, Virginia-based company, however, were down nearly 3% in extended trading. CoStar forecast fourth-quarter adjusted earnings between 26 and 28 cents per share, the midpoint of which is below analysts' estimate of 28 cents. Separately, the company has been involved in major litigations, including a lawsuit against Zillow for copyright violations and a dismissed consumer lawsuit claiming it helped high-end hotels illegally fix room prices. (Reporting by Nithyashree R B in Bengaluru; Editing by Shilpi Majumdar)

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