Residential revenues increased by 41%, driven by the OnTheMarket acquisition and the launch of new Homes.com membership subscriptions. However, this was partially offset by the discontinuation of certain products and services inconsistent with their long-term strategy.

On April 21, 2024, the Company entered into an agreement to acquire Matterport in a cash and stock transaction. The cash consideration is estimated to be $940 million and the stock consideration would require the issuance of approximately 11.2 million shares of CoStar Group's common stock.

The company is expanding its research and technology center in Richmond, Virginia. The expansion includes construction of two new buildings spanning 750,000 square feet and will bring our campus footprint to over 1 million square feet when completed.

Annualized net new bookings of subscription-based services increased to $86 million, compared to $80 million in the same period last year. Net new bookings is considered an operating metric that is an indicator of future subscription revenue growth.

Contract renewal rates for existing company-wide CoStar Group subscription-based services were approximately 90%. Contract renewal rates are calculated on all subscription-based contracts with a term of at least one year.

We continue to implement a financial system that is designed to improve the efficiency and effectiveness of our operational and financial accounting processes. This implementation is expected to be a multi-year project.

Rising interest rates or a period of elevated interest rates may reduce demand for all types of real estate. If the demand for office space or other real estate decreases significantly, there could be a downturn in the commercial real estate market that may materially adversely affect many of our clients.

We may be unable to complete the acquisition of Matterport or otherwise realize the benefits of the pending Matterport acquisition, which could have an adverse effect on us.

The potential impact of the announcement of the Mergers or the consummation of the Mergers on business relationships, including with employees, customers, suppliers and competitors.

CoStar Group is a leading provider of online real estate marketplaces, information and analytics in the U.S. and U.K., based on the fact that we own and operate leading online marketplaces for commercial real estate and apartment listings in the U.S.

Residential's revenues for the three months ended March 31, 2024 increased compared to the three months ended March 31, 2023 due to the OnTheMarket Acquisition and the launch of our new Homes.com product.

LoopNet's revenue growth rate for the three months ended March 31, 2024 decelerated compared to the revenue growth rate for the three months ended March 31, 2023 as a result of disruptions related to transitioning sales and service activities to a dedicated LoopNet field sales team.

Selling and marketing expenses (excluding customer base amortization) increased $140 million, or 62%, to $366 million and, as a percentage of revenues, increased from 39% to 56%.

General and administrative expenses increased $9 million, or 10%, to $99 million and, as a percentage of revenues, was consistent at 15%.

Cost of revenues increased $22 million, or 18%, to $141 million and, as a percentage of revenues, increased from 20% to 22%.

Software development expenses increased $16 million, or 24%, to $82 million and, as a percentage of revenues, increased from 11% to 13%.

For Homes.com we are creating additional content for neighborhoods, parks, schools and condos.

For OnTheMarket, we are integrating OnTheMarket into the Company's operations including additional investment in marketing, content creation and enhancing OnTheMarket's website to improve performance and facilitate better search engine optimization.

Cash and cash equivalents decreased to approximately $5.0 billion as of March 31, 2024, compared to cash and cash equivalents of approximately $5.2 billion as of December 31, 2023.

Net cash used in financing activities for the three months ended March 31, 2024 was $23 million primarily related to repurchases of restricted stock to satisfy tax withholding obligations.

Net cash used in investing activities for the three months ended March 31, 2024 was $380 million primarily driven by the purchase of assets related to the purchase of an office building in Arlington, VA to relocate our DC based employees.

The 10-Q filing does not contain any explicit sections or mentions of ESG initiatives, environmental commitments, social responsibility programs, or governance practices.

In response to the concerns over inflation risk, the U.S. Federal Reserve raised interest rates over the recent two years.

Rising interest rates or a period of elevated interest rates may reduce demand for all types of real estate.

If the demand for office space or other real estate decreases significantly, there could be a downturn in the commercial real estate market that may materially adversely affect many of our clients.