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oStar CEO Andy Florance is confident that the company's superior product and aggressive marketing campaign will help it capitalize on industry changes. The Clear Cooperation Policy (CCP) adjustments and potential rise of private or delayed listings have created a shifting landscape in residential real estate, which CoStar aims to exploit through its Homes.com search portal.

    During the first-quarter earnings call, Florance highlighted CoStar's strong position for growth, citing double-digit revenue gains and 12% year-over-year increase to $732 million. However, net income took a hit due to the Matterport acquisition, resulting in a $15 million loss. The company's Homes.com network, which includes Apartments and Land networks, saw its average monthly unique visitors decline to 104 million in Q1 from 156 million in March 2024.

    Florance has long criticized Zillow's "lead diversion models" and recently spoke out against the portal's new listing standards, calling it an overreach. He believes that Homes.com's promoted listings model is superior and will help CoStar take a leadership position in the industry within two to four years.

    Key drivers of change include the more flexible CCP and shifting attitudes around NAR's no-commingling policy. Florance sees this as an opportunity for CoStar to differentiate itself and capitalize on consumer preferences. The company plans to roll out a marketing product for builders in July, targeting the attractive new construction market which accounts for 20% of all homes sold.

    CoStar's financials show a gross profit of $578.9 million in Q1, up from $515.2 million a year ago. Cash and cash equivalents decreased to $3.68 billion at the end of Q1, down from $4.68 billion at the end of 2024. The company also reported an EBITDA loss of $1 million in Q1, down from a $12 million gain a year ago.