Ladies and gentlemen, thank you for standing by. Welcome to the CoStar Realty Information Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Mr. Rich Simonelli. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to CoStar Group’s first quarter 2016 conference call. Thank you all for joining us. Before I turn the call over to Andy Florance, I have some important facts to discuss with you. Certain portions of this discussion contain forward-looking statements, which involve many risks and uncertainties that can cause actual results to differ materially from such statements. Important factors that could cause actual results to differ include, but are not limited to, those stated in our April 27, 2016 press release on first quarter earnings results, and in CoStar’s filings with the SEC, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, under the heading Risk Factors. All forward-looking statements are based on information available to CoStar on the date of this call, and CoStar assumes no obligation to update these statements, whether as a result of new information, future events or otherwise. Reconciliation of non-GAAP net income, EBITDA, adjusted EBITDA, and all of the non-GAAP financial measures discussed on this call to their GAAP basis results are shown in detail, along with definitions for these terms, in our press release issued yesterday which is available on our site, costargroup.com. As a reminder, today’s conference call is being broadcast live and in color over the Internet at costargroup.com, where you can also find CoStar’s Investor Relations page. A replay will be available approximately one-half hour after the call, and will be available for approximately 30 days. To listen to the replay, please call 1-800-475-6701 within the U.S. or Canada, or 320-365-3844 outside the U.S. The access code is 391087. A replay of the call will be available right after the call concludes. I’ll now turn the call over to Andy Florance. Andy?

Thank you, Rich, for a fantastic warm-up act.

You’re welcome.

Good morning and thank you all for joining us for CoStar Realty’s first quarter 2016 financial results call. We had an excellent first quarter, as we continue to grow revenue while we are focusing on reducing costs and driving margin expansion. We generated excellent top line growth of 26% year-over-year, reaching $200 million in revenue for the first quarter of 2016, annualized that would be an $800 million rate. We generated net bookings of $30 million in the first quarter of 2016 with solid performances from both CoStar and our Apartments network. CoStar Suite, which represents 50% of our total revenue, grew 12.5% from the first quarter of 2015 to the first quarter of 2016, and 4.4% sequential quarterly, quarter-over-quarter. For each of the past four quarters, we have been averaging over $30 million in quarterly bookings, which is double our 2014 quarterly bookings, which were approximately $15 million per quarter. We increased net new sales on annual subscriptions 53% year-over-year to $25 million in the quarter, and achieved our highest quarter ever of net new sales for CoStar Information Services. With these strong sales and a consistent focus on cost control, we increased EBITDA 234% year-over-year from $14 million in the first quarter of 2015 to $48 million in the first quarter of 2016. In that period, our EBITDA margin rose from 9% to 24%. With a $41 million increase in revenue over the same time period, this indicates 82% of our revenue flowing through to EBITDA. This dramatic EBITDA expansion is all the more impressive, given that it was achieved in the same quarter we invested aggressively in our first Super Bowl commercial. We are moving swiftly to rationalize down the headcount required to effectively run the newly integrated operations of CoStar and the Apartment network. We have…

Great. Thank you, Andy. So as Andy mentioned, we are pleased with our performance in the first quarter 2016. We were able to deliver both solid top line growth and year-over-year margin improvement, while at the same time continuing to fund the important growth investments in sales, marketing, and new services. In the first quarter of 2016, we delivered a 26% increase in revenue compared to the first quarter of 2015. On a pro forma basis, our year-over-year revenue growth was 14% for the first quarter. Now, because this is the first time that we are presenting our revenue by services, it’s important to take a few minutes to explain this new information in a little more detail. You can find the new Revenue by Services schedule in both our press release, as well as our soon-to-be filed SEC Form 10-Q. Now, a number of you asked for additional revenue information following our year-end results. So we prepared the data, along with five quarters of trended information to help you understand our business, as well as the direction of travel. Our new revenue disclosures are built around the two main categories that we’ve discussed in the past, the first being information and analytics, and the second being our online marketplaces. Within each of these categories, we’ve further broken down the revenues to provide insight to our primary service offerings. First off, in information and the analytics category, is our flagship commercial real estate service CoStar Suite, which represents approximately 50% of our Q1 revenues. CoStar Suite is comprised of both the North America and the UK, including CoStar Property, CoStar COMPS, CoStar Tenant, CoStar Portfolio Strategy, and the CoStar Market Analytics. Essentially all the revenue in this category is on 12-month subscription and has a very high renewal rate. Our…

Thank you. [Operator Instructions] We’ll first go to the line of Sara Gubins with Bank of America.

Hi, thank you. I was hoping to get some more color on the strategy that you mentioned within Multifamily to have yourself people make sure that they’re spending some more time with existing clients. Did you see changes in retention trends? Were they worse than you expected? I’m wondering what drove you to decide to do that. And I know that you reiterated the 20% to 25% growth forecast. But I’m wondering, if there is any additional resources that you need to put in order to get that, or if you see any risk, given the increased focus on retention? Thanks.

Yes. So the increased focus on retention is just common – for me, it’s just common sense from a lot of experience selling subscription-oriented products over the decades. And we try to stay very close to our customers in the industry. And we do a lot of market research, we do a lot of focus group work. And it’s just clear that we had a great year here. We’ve done a lot. We’ve rapidly integrated Finder into the fold, done the Move deal, we’ve just been very busy. And it’s just very important that we build it – the apartment industry is a little bit more of a relationship-oriented industry. It’s just important that our salespeople know their customers well and aren’t always focusing 90% of their time on trying to find another piece of revenue. And so I think it’s just a lifecycle in the flow of the business here. We need to make sure we establish those relationships. Now, we did move to a much more efficient territory system at the turn of the year, where we went from alphabetical assignment of accounts in major cities to geography-based accounts, which means that a lot of people have new account representatives from Apartments.com and have not met them before, just because of these shifts in territories. So it is important that we take some time and really get out there and make sure that they’re meeting all of these people, and it is a referral-oriented business. The good news is, what we are hearing in these focus groups is that hands-down, we have the best lead flow that they are – we have the best name recognition by far. But that needs to be coupled with good customer service. And it can’t always be, did I get the most…

Thank you. We’ll move on to the line of Brett Huff with Stephens.

Good morning, Brett.

Good morning, Andy, Scott and Rich.

Good morning.

Hello.

Thanks for the new segment detail, very helpful. So first want to say that.

You’re welcome.

One detailed question, one big-picture question. The detail question is, you mentioned that you are having more people out doing training, I think is what you called them to kind of training folks, as you think about merging the Loop and CoStar databases. Can you just tell us again, is the worry that, is the user interface going to change, and you want to make sure that goes smoothly, or is it more a function of, hey, we want to show people what they could get and help them up – and help the up-sell process? I’m just confused about what that comment was directed at.

Sure. What? Me, worry? The – that’s not what we worry about. So what it really is, it’s just sort of, again, I just think that in these high subscription base businesses, it’s important that you maintain close client contact across – as you approach $1 billion in revenue, you just want to make sure that you have good, solid relationships. And it’s not a reaction to any one particular thing, it’s just good business. And partially, as your sales increase, as you keep adding more customers faster and your salespeople can achieve really good production numbers on new sales, you’ve just got to make sure that you’re continuing to have a relationship with that bulk of hundreds of millions of dollars of revenue that have been in place for quite sometime. So that’s a big part of it. The other thing is, there are a number of really good clients who are using the LoopNet platform, either for information or information marketing, who are not using the CoStar property platform. There are tens of thousands of them. And these are good firms, and these are firms that we want to develop our relationship with them. When we acquired LoopNet, they had a mission statement which said: we never talk to customers after we sell them. And I mean literally, that was the mission statement. And that doesn’t really resonate with us. You should communicate with your customers. You should have a priority on customer service and relationship. So one of the things we’re trying to do is make sure that we are out there, and that we are supporting the LoopNet customers just in whatever they’re buying from us today. So that as we transition to much greater buying opportunities with our company, they will have good feelings with…

Okay, thank you. And my follow-up was the big-picture one. You articulated kind of the addressable market that you see over the next, whatever three to five years for the ILS business, the apartments business. Can you – any update to that? Can you remind us of how you see that, maybe how you see your share in that, and kind of the long-term margin profile of that part of your business?

Sure. And the very – so first of all, on the margin basis, remember that, we expect to be profitable in this space in the fourth quarter this year. And you can see that margin expansion. You can see that we’re able to show that margin expansion even with the Super Bowl ads and other ads running during the quarter. So we do believe that the margins are – the potential is excellent over the next three to five years, and that they are in line with the 40% ranges. We’ve talked a number of times about different size of markets in the $2 billion range. You have direct competitors, or fairly direct competitors in the billion-plus range right now. We believe that we can – we believe we are just about to cross one of our direct competitors and go from the second most revenue in the space to the most revenue in this space. And we think we can hold a significant share advantage in the multifamily space similar to the share advantage we hold in the ops industrial retail space. So and then, there is – so there is the very straightforward business we are talking about, which is the billions, $2 billion-plus business of driving renters into the leasing offices of these buildings. And that, we understand well, and we are making good progress on it. There’s a whole series of other ancillary businesses that we think are pretty exciting that are growth areas down the road. But the core is clear, addressable, and that’s what we’re really focused on, is harvesting that opportunity.

Great. Thanks for the detail.

Yep.

Thank you. We’ll go to the line of Andre Benjamin with Goldman Sachs.

Thank. Good morning.

Good morning, Andre. How are you doing?

Hello?

I’m good, thanks. So I want to dig a little bit more into the cost performance, given you beat revenue guidance at the midpoint by about $3 million, but EBITDA by $15 million. I guess, how did you end up being that far ahead of your cost expectations, given the guidance was given pretty late into February, and how much of that was in Apartments versus the core Suite and other parts of the business? And then last piece is just, given that how do we think about upside versus downside risk to the implied cost guidance for the rest of the year?

So let me just make a few comments to that, Andre. The components of the better cost performance were really two broad areas. Obviously, we are all about marketing spend as a big category, and then all of the personnel-related costs. And there’s a number of other costs in the business, but they are not as big as those ones. When you first – I mentioned the marketing spend, we had about $3 million or so that didn’t get spent in the quarter and they’ll move off into later in the year. And those just were better performance in some of the things we did, and some things that will be timed better later on. We also had some really good cost performance late in the quarter that we don’t see recurring again. I mentioned those combined were about $6 million, that will shift out and not help us later. But then when you saw the ability to manage the headcount effectively and find more synergies in the business and the hiring plans that we had didn’t need to be as aggressive as we thought they would be when we went into the quarter. So those things helped us both lift the gross margin side of things and keep the personnel costs well down. And those really are the major components that gave us that. When you look going forward, we’ve obviously improved the cost picture that we expect in Q2 and the guidance that we gave. And then we left the second-half with some investments that we need to continue to make. As Andy mentioned, as we find productivity, we need to put some of that money back in over the second-half of the year, which we’ve provided for now. So we continue to find more opportunities. We continue to integrate. We’ll continue to use those and shift them around. So we feel good about the balance of where we are with the costs and we’ll always shoot to outperform those as we go forward.

Yes, the big picture, it’s also just – it’s the season of cost control. So, we came through a – two major acquisitions, major conversions of products, pulling together of hundreds and hundreds of people from new companies into one combined team. We went through a major reorganization of our management structures and the way our departments are organized in the end of the fourth quarter. Our departments that have hundreds and hundreds of people, all have new leaders right now. And those leaders were given a mandate to understand why they had staffing that they had in different areas, and was it really necessary, or was it just an artifact and momentum of an old business model that no longer applied to the reality of the combined companies. And so, there was – it’s never pleasant, but there was a lot of focus on just rationalizing why do we have what we have here? And there were areas that – as the dust settled with all of these integrations and new product launches and efforts to move from number five to number one in the major new space, you would find something where you had a 4:1 manager-to-staff ratio, and you don’t need that. You can easily operate in 1:8. So just a lot of focus on that kind of stuff. And we don’t like to – the divisions, the segment presidents, or the product area presidents, we delegate and push responsibility to them to find these cost savings that didn’t hurt the business. And we have to see them produce them in yield though, before we really talk to shareholders about them. So it’s just been the management team with a little bit of shift in their bonus structure more towards EBITDA have delivered on more cost savings than we thought we could deliver on.

Thank you.

You’re welcome.

Thank you. We’ll go to the line of Bill Warmington with Wells Fargo.

Good morning, everyone.

Good morning, Bill.

Hi, Bill.

So congratulations on an – on the impressive profitability this quarter.

Thank you very much.

So for my first question, I was going to ask about the difference between the net sales – net new sales and annual subscriptions at $25 million, and the net bookings of $30 million? It would be helpful, I think, if you could talk a little bit about the dynamic between those two, and how we should think about those two metrics going forward.

Yes, a lot of that is and I’ll answer and then I’ll let our CFO, Scott Wheeler, answer as well. So a lot of that is just – we’re very focused right now. We have a better value proposition for people trying to market their apartments on the Internet we – than our competitors do. And so we are trying to move a lot of long-established relationships into our apartment network. And as you do that, you go meet with these folks. They have never seen a one-year contract for apartment advertising. And I do think that once they are into a relationship with you, you can get the one-year contracts. But I do not want to give up share-shift opportunity for the optics of an earnings call of saying that the difference between our bookings and our subscription growth are close. I would rather have the revenue and the business and worry about the optics in an earnings call later. So it’s just a policy shift of saying, bring these folks on into a business relationship on whatever contract term. If we deliver for them, which I believe, we are doing for the overwhelming majority of the people we’re bringing onboard, then you can give them annual contracts on renewal that give them better pricing. So it’s more of a short-term tactic thing.

So the subscription version of that would be captured in the annual subscription piece, the $25 million, and the non-subscription contracts on the apartment side are going to be captured under the net bookings?

Correct.

Yes, that’s correct. Scott can give you the correct answer.

Anything there going on with cancellations on the Loop side, or anything there?

No.

No, nothing really significantly moving around on the Loop side.

Okay.

The changes from quarter to quarter on our annualized net sales versus our total net bookings numbers, they’ve both been in the sort of 25 to 30ish range over the last four quarters for each. And the noises in the apartments things that Andy mentioned, the CoStar Suite pieces continue to be strong and advance, as they have for many years. So I think once we get – once we start getting past the annualization of the apartments businesses being combined, the sales forces having their focus on customer retention, as well as growth, and you start to see these stabilize more, you’ll see less of these sort of $4 million to $5 million up and down swings sequential quarters. And you’ll see them start to stabilize more. But that $30 million overall net new number is a great number. We expect to continue to see that going ahead.

Okay. And as a follow-up, Andy, in your comments you mentioned the Apartments.com offering being a better value. And so my question is, have you been able to quantify for advertisers that your leads are higher-quality or better value than the competition?

Well, the advertisers and our clients have to do that for us, because they are the ones ultimately capturing and managing those leads. And so we see that in our conversations with them, and in these focus groups and through our share gains. So I’m getting a clear message from them that it’s a dramatic difference. And I mentioned that in a conversation not too long ago with a senior executive of the biggest apartment operator in the world. They said that they have been tracking it, and that the lead flow and closed rates of our leads continued to widen dramatically over any other source. And I forgot what the number was. We were calling 62% of all Internet traffic on the search results, on the apartment listing site. So we are just getting a really good share. And then, again, we’re not playing the games that a lot of folks have fallen into on lead-gen, where they were shotgunning leads or serving up apartments that didn’t meet the customer’s requirement. Hoping the customer wouldn’t – the renter wouldn’t notice before they communicate with the leasing office, sort of a lead-at-all-costs mentality. I think that our strategy of just giving them really straight-forward connections, it’s what the renter is looking for, your apartment works for it, and then making sure we have the most traffic by far. We are getting a much higher time on-site, which to me indicates that they are actually working to find their apartment on our site. And then I think probably the most important metric for me, which you can’t quantify, I don’t have a comp score number for, I don’t have a Google analytics for is, two years ago when we acquired the Apartments.com website, one of our young staffers, maybe 24 years old came up to me after a presentation I had given to the – all the employees. And he said, honestly he said, quite honestly, Apartments.com sucks, I would never use it to find an apartment. And I said, okay, I appreciate that position, but we’re going to work on it and see how we do. And now early in the first quarter 2016, I’m running into all sorts of very young Millennials who are telling me they found their apartment on Apartments.com, as I do it. And that’s probably the best indicator of lead flow to our clients, and effectively working. So that’s not really a comp score number. Does that answer your question, Bill? Are you now gone?

He has gone. We’ll move on to Sterling Auty with JPMorgan.

He left.

Poor Bill.

Hey, thanks. Hi, guys.

Hi, Sterling.

I was wondering, when you look at the net bookings number, first of all, can you give us the number for the fourth quarter? I don’t know if it was actually given in the call. And then when you look across the customers, can you give us a little bit of qualitative color around what’s driving that number? In other words, what’s the type of customer within like the core CoStar Suite that’s buying? Is it investors, who might it be? That would be helpful. Thanks.

Yes, let me cover the numbers real quick just to reiterate the net new bookings was $30 million in the quarter. And the net new on annual subscriptions was $25 million.

And the prior quarter, what was it?

The prior quarter was $29 million on the net new annual subscriptions.

Yes. Okay. So the prior quarter…

What was it – hold on. But what was it prior quarter net booking? So the equivalent of $30 million, that’s what was the [Multiple Speakers]

Yes, that was $25 million.

Okay.

So the bookings went up.

Yes. The bookings went up sequential quarter, and the annual bookings went down.

Down, right. And that’s going to be…

By about the same amount.

Right. By about the same amount.

Yes. And we looked at quarters before, the net bookings were back up to the $30 million. So, again, you get this shifting noises between, as the apartments pieces settle out, and that’s what’s causing some of that volatility.

And maybe just – can you guys just take a quick second just walk through the net bookings? I think the net new subscription services on annual contracts-only is pretty self-explanatory. But can you remind us, because I believe the net bookings is inclusive of churn. But can you just walk us through how you are calculating that, and how we should interpret that metric?

Yes. So the net new bookings has all of the new contracts obviously that we bring in during any given period, and then it takes the churn of clients that we lose or things that go away out of it. So you get this net number that we first look at on a quarterly basis, and then we do the annualization to get to those numbers in total. And then we look at it obviously by the different business sectors we have and watch how those numbers progress through the quarters. And those also advise our decisions on what’s happening in the market, where we deploy our sales forces and our different resources to go after the – both the opportunities and the impacts they’re having. Keep in mind that we – as we started to move things when you get back to the annual contract ones, you start to move things to annual contracts. We’ll start to lap the full year when we started doing that for the apartments. So you’ll start to see clients, for the first time, renewing annual contracts coming up here in the next quarter or so. So there’s still going to be noise in these as we go for a couple quarters on this.

Thank you. We’ll move on to the line of Brandon Dobell with William Blair.

Thanks. Guys, given the discussions around the net new numbers and the sales force changes, how should we think about expectations exiting this year for organic growth in the old core business, as well as apartments? It seems like there is more opportunity for accelerating that growth rate than not, given how the changes are going to work through the system. But I want to understand how you guys are setting expectations, both internally and with the street?

Yes. So internally, the way we look at it is, I’m very optimistic as to where we are right now across all three major segments that we look at. So on the CoStar side, we are moving a lot of resources that had been diverted into apartments sales back into the core CoStar business. The core CoStar business is doing really well, real strong performance there. And that is before we do two of the most important things we could possibly do to capture a lot of revenue, which is integrate LoopNet and CoStar, and expand the successful CMA product that came on the apartment side into all the market segments. So I see a lot of upside over the next two years on the core CoStar Suite. I feel really good about that. I see where that is, and I feel good about that. On the apartment side, we’ve gone through that challenging period where half your sales force was just trying to move people from print to electronic with no revenue gain. We have done the – made the hard decisions to shift the way territories are aligned, so that people are much more efficient in their day. And separated out the sales structure, so that you have a cleaner focus on apartments, and a little bit of growth in that apartments group. So I would expect acceleration in their sales over the next two years at a consistent and incremental basis with a little bit of investment occurring on customer relationship in the early part of the year, and then just getting to meet everybody. There’s thousands of – about tens of thousands of customers they have to meet. And then huge opportunity on the LoopNet side, just because that one frankly got short-shift in all the excitement of the last year, so in apartments and in CoStar core. And so that sales force has drifted down to a number that we’re not crazy about, mainly because the CoStar salespeople just were focusing on apartments, not LoopNet. So we are bringing more of a stronger, independent LoopNet sales force up to speed and with a very good return on investment, because it’s the old subscription model of – you take – you are going to have, no matter, if you take three steps forward, or 10 steps forward, you have two steps back, we’re sort of in the three steps forward, two steps backward on churn with LoopNet, adding one more salesperson, adding 25% increase in salespeople can, in theory, increase revenue growth by 50%. So lot of things going on here that we’re really investing on Q4, Q3, Q1 of next year. We’re doing a lot of things just to ensure consistent strong growth over the next three to four years.

Thank you.

To cover the – sorry, to cover the guidance part of that question in the CoStar Suite sector a 11% to 13% is the growth rate we expect going forward. In the first quarter, we were at 12.5%, as we mentioned, so pressing the upper end of that. We expect that to continue to press the upper end, as Andy mentioned, going forward for the rest of the year. On the Apartment side, we said 20% to 25% pro forma growth. For the outlook for the year, we get 24% in the first quarter. We expect to say solidly within that middle part of that range for the rest of the quarters of this year. So that’s really where the guidance is, and it’s all very strong and positive.

Okay.

Thank you. And we’ll move to the line of Andrew Jeffrey with SunTrust.

Hey, guys. Thanks for taking the question and all the color. And I just – I’m trying to understand a little bit mechanically, and I know a lot of questions have sort of gone in this direction. But when I look at the growth in net new on annual subscriptions, which has accelerated, it did accelerate in the fourth quarter on a trailing four quarter basis. And then I consider the total percent – the percent of your total revenue that’s on annual contracts, why wouldn’t there be an acceleration in reported revenue, as we go through the year, even if we saw a decel in net new on annual in the second quarter? Why shouldn’t the business just sort of mechanically accelerate as 2016 progresses in more of a pronounced fashion than what your guidance implies?

Well, I think, we’re – well, I think as we continue to watch the net news come in and we watch the annual subscriptions each quarter, they are strong, they continue to grow. We want to see them accelerate for the rest of the year. We’re going to watch that progress. We think there’s a good chance that we continue to progress and move forward. But at this stage in the year, we want to just keep our forecast in a modest, but optimistic range, and move forward and see how they go.

Keep our powder dry.

That’s a good way to say.

On this rainy day in Washington.

Keep our powder dry.

Did you have a follow-up to that question?

One moment, please.

Okay.

Okay, Mr. Jeffrey, your line is open.

Okay, thanks. If there is a follow-up, it would be around the sort of explicit sales of data into the apartment communities. Can you talk a little bit about the ramp in data sales, and whether or not sort of qualitatively data are pulling along share gains? And just sort of how to think about that dynamic?

Yes, specifically, you are talking about the information products around Multifamily and how they are doing, and how we’re getting share gains?

Exactly, right.

Yes, well, we’ve gotten terrific share gains in that space without a doubt. And I don’t have – I do not have actual competitor numbers, but I have an idea. And my belief is, is that, we have sold maybe twice some of the traditional competitors’ entire revenues this year in the space. So I would call that a really good share gain, if you can sell their whole revenues once or twice in the year, and it’s really just the beginning. So the product is real. It works. We have – we’ll continue to evolve it, refine it. It’s on version 1.1, or 1.12 maybe. We’ll continue to push it. We’re doing – I was very happy with where it’s going overall. And our sales force is very excited about it. Our sales force is finding good traction with it. So we’re really in the very early stages on that. And I think we just have a big fundamental advantage in the fact that we are – the most heavily traffic website for people shopping for apartments. So that collects a lot of information in search behavior, that’s very valuable to our customers. For example, some cool stuff we’re doing with the product right now, that no one else can do is, people traditionally try to understand who their apartment building competes with by looking at similar-rated buildings within two miles of their apartment building. And that would be a very simplistic way to look at it. We have nearly -- we have a billion searches – a billion property views on our system in 2015. We know exactly who your competitor is, like no one else knows. So when someone looks at a one bedroom in your community, we know exactly what other one bedrooms they tend to look at when they consider your community. And it’s not similarly rated communities within one mile, it’s actually it could be someone eight miles down the highway that you’re competing against, and you don’t know it. And only we can really tell you that in CoStar Market Analytics. So we have a very unique product, and we’ll continue to surface these kinds of advantages in the product. And I think we will do incredibly well. So, we have to keep evolving it, because you’re – it’s a complicated business. And we’re getting more nuanced and we’re tweaking it. But all good. And what part of the question? I forget, because I was having fun there.

I think you’ve hit all the high points. Thanks, Andy.

Okay. And we just published a paper in American Real Estate Society about our correlated filter peering of competitors. And I hope we do – we win an award for it. We’ll see.

Thank you. [Operator Instructions] We’ll go back to the line of Andre Benjamin with Goldman Sachs.

Thanks. Just one follow-up here. Given the amount of attention that we hear on the core suite and concerns about the growth there, with the backtrack in the CRE market, could you talk a little bit about how much of the sales growth came from brokers versus some of the other initiatives, like pushing to institutional lenders, apartment managers, et cetera? And have you seen any slowdown in the growth rate of selling to brokers in this quarter versus the last few?

I wouldn’t address this – I would not say there is a concern with growth rate. We’re at the upper end of the range on big numbers. So we’re – there’s LoopNet like, it’s actually really strong with upside potential – significant upside potential, as we just showed in the UK, as we integrate the LoopNet and CoStar families together. I think I’m very optimistic about what that means. So we are hitting it on all cylinders, and the brokerage business is strong, as well as the owner and the institutional component. Our sales force always likes to go to the institutional and owner, because they are typically bigger-dollar contracts up front. If I were to look at a crystal ball over the next 18 to 24 months, I think just because of the conversion with LoopNet, I think there will be a surge of brokerage sales over the next 18 to 24 months, which is why I invested in putting the 50 more customer relationship people to prepare the field for that surge. And we’ll probably grow that group maybe to 80 people over the course of the year. So it’s good. It’s good, it’s good, and it’s good, and it’s all good, and it’s all good. So, there’s nothing I’m aware of that is bad. It’s good. So, okay, but I think with that, I think we’re all set here. We’ll wrap up, and we’ll get the call done before we get to 12:15. Thank you all very much for joining us, and we look forward to speaking to you next quarter. Bye-bye.

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and for using AT&T Executive Teleconference. You may now disconnect.