CoStar Group (CSGP) Fundamental Analysis
Internal Issues Facing CoStar
CoStar with its business and real estate listings that include LoopNet, Apartments.com, Apartment Finder, BizBuySell and LandsofAmerica is essentially an information provider. Analysis of their proprietary information generate the largest portion of the companies revenues. Internal issues could adversely affect CoStar if quality of information begins to deteriorate. The company also faces internal risks if management's marketing efforts fail to attract new clients or retain existing ones.
In the company's most recent MD&A statement, management vows to mitigate the risk of internal issues.
Continue to increase number of unique visitors to, and users of, company websites and mobile apps;
Focus on improving quantity and quality of the leads that we provide to our advertisers;
Focus to increase success of product development efforts directed at attracting additional users
Keep pace with changes in technology especially with competitors
External Issues Facing CoStar
Already, CoStar has had to defend the propriety of its listings in court against competitors who allegedly stole those listings. The company proved capable of defending its intellectual property earlier this year against competitor Apartment Hunters.com.
Other external forces include; ability to compete against many other real estate data firms,
business downturns, consolidation in the commercial real estate industry, and slowing advertiser interest.