CoStar cuts annual forecast amid uncertain property market

Revenue for the second quarter came in at $925 million, slightly below estimates of $928.75 million.

Quarterly adjusted profit stood at 32 cents per share, above expectations of 29 cents per share.

The company reported net new bookings of $69 million for the quarter ended June 30, a 3% jump from the first quarter.

CoStar, the owner of online marketplaces like Homes.com and Apartments.com, is known for its extensive commercial real-estate databases and subscription-driven analytics used by real estate agents and customers.

The firm's aggressive expansion into residential marketplaces has turned out to be expensive and, according to analysts, is likely to pressure margins for years.

CoStar Group on Tuesday cut its annual revenue forecast, pivoting to a cost-cutting strategy to mitigate an uncertain commercial property market.

The company now sees full-year revenue between $3.72 billion and $3.76 billion, down from its previous forecast of $3.78 billion to $3.82 billion.

CoStar held operating cost growth to in the quarter and also trimmed its projected expense baseline by about compared with its initial guidance.