Ladies and gentlemen thank you for standing by and welcome to the CoStar Group's Second Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today; Sarah Spray, Investor Relations. Thank you. Please go ahead.

Thank You. Good evening and thank you all for joining us to discuss the second quarter 2020 results of the CoStar Group. Before I turn the call over to; Andy Florance, CoStar's CEO and Founder; and Scott Wheeler, our CFO, I would like to review our safe harbor statement. Certain portions of the discussion today may contain forward-looking statements including expectations for the third quarter and full year 2020. Forward-looking statements involve many risks, uncertainties, assumptions, estimates and other factors that can cause actual results to differ materially from such statements. Important factors that can cause actual results to differ include, but are not limited to those stated in CoStar Group's press release issued earlier today and in our 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. CoStar assumes no obligation to update these statements whether as a result of new information future events or otherwise. Reconciliation to the most directly comparable GAAP measure up -- to the non-GAAP financial measures discussed on this call including EBITDA, adjusted EBITDA, non-GAAP net income and forward-looking non-GAAP guidance are shown in detail in our press release issued today along with definitions for those terms. The press release is available on our website located at costargroup.com under Press Room. As a reminder today's conference call is being webcast and the link is also available on our website under Investors. Please refer to today's press release on how to access a replay of this call. And with that I would like to turn over to our Founder and CEO Andy Florance.

Thank you, Sarah. Good evening and thank you for joining us today for CoStar's second quarter 2020 earnings call. A caveat, I see a large thunderstorm rolling into my position. So if I get disconnected, Scott Wheeler our CFO will pick up my script and deliver it not quite as well as I do, but he'll muddle through. So going into the second quarter it has been one of the most difficult to predict quarters in my decades of experience. It'd be hard to ever imagine the scale of dislocation our country is experiencing. Yet despite the challenges we face so far our team here at CoStar Group has performed exceptionally well turning in one of our strongest quarters ever. We grew revenue 16%, increased adjusted EBITDA 17% set a record sales month, raised $2.7 billion in equity and debt in the equity and debt markets and acquired Ten-X all while working 100% from remote locations. Traffic to our Apartments.com and LoopNet marketplaces rose to new record levels exceeding pre-pandemic levels. We had 62 million monthly unique visitors in our platforms in the second quarter an increase of 13% of our record traffic levels of 55 million monthly unique visitors reached in the first quarter of 2020. I hope you can agree with me that these results indicate that our business is not only resilient, but is in fact countercyclical. Our business like I believe most businesses was slowed in the first part of the quarter as people adjusted to the new normal. It has progressed back in each month this quarter eventually reaching our best sales results ever in June. CoStar, LoopNet, Apartments.com, LandsofAmerica, BizBuySell, Real Estate Manager, Risk Analytics and STR all showed positive growth in the month of June. In a world of social distancing our digital…

Well done. Thank you Andy. Move to that quite quickly to avoid the storm. Glad I didn't have to pick it up and read it, never quite the same coming from me. So, yes, I'm also encouraged by our second quarter results and we've seen great improvements in each month of this quarter since the pandemic disruption began back in March and April. Our revenues in the second quarter of 2020 increased 16% over the second quarter of 2019, coming in above our 13% revenue growth guidance for the second quarter and $5 million above the high end of our revenue guidance range. Revenue growth in the second quarter excluding STR was 12% year-over-year. We did not record any revenue from the Ten-X acquisition in the second quarter. CoStar Suite revenue grew 8% in the second quarter of 2020 versus the second quarter of 2019 coming in at the high end of our guidance range. CoStar Suite sales had a low point in April and improved throughout the quarter with June sales for CoStar coming in at the strongest month of the quarter, resulting in positive net sales bookings for CoStar in the second quarter. This is certainly encouraging when you compare it to the 2008 or 2009 recession when net sales bookings for CoStar were negative for four consecutive quarters. We certainly didn't see that trend materializing in the second quarter. As the lower subscription sales levels this past quarter start to impact the second half revenue, the revenue growth rates for CoStar are expected to be sequentially lower for the third and fourth quarters of 2020. Accordingly, we now expect the revenue growth rates for CoStar Suite to be in 6% to 7% range for the full year of 2020. At this time, we don't have any renewal…

[Operator Instructions] And your first question comes from the line of Pete Christiansen from Citibank. Your line is open.

Good evening. Thanks for letting me take – ask a question here. Good trends and congrats on the recent capital raises. I have a question.

Thank you, Pete.

You’re welcome. As the health crisis has kind of changed here and it's migrated to other states, do you believe that you can continue the bookings momentum that you saw in June into July? Have you seen similar trends there? Just curious, if you've seen changes in bookings activity with the health crisis changing.

The trending seems to be similar to what it has been in the last three months. So it seems to be performing roughly the same. So we're not seeing much of a shift in any way.

Thanks helpful. Thank you.

Our next question comes from the line of David Chu from Bank of America. Your line is open.

Hi. Thank you. So Andy why do you believe that renewal rates will be so much better in this recession versus the past recession? Is this a reflection of just lower CRE broker bankruptcies?

I think it's a couple of things. I think one factor is that, in the Great Recession we had two super low-cost competitors. So we're competing against a very well-funded Xceligent back in the Great Recession. And approximately for every dollar they charged a customer they were spending $2 to $3 producing the product. So they were heavily subsidized. And they were charging probably -- they were probably charging 15%, 20% of what we charge for a service. So we saw people shifting down to the lower cost product. We also were competing against LoopNet at that time who is offering a product at 5% of the cost of our product. So those two things are no longer a factor. And I think that we've made good progress over the last 10 years or so, continue to improve the products, the line of the products, the news, more functionality, people are living in it more frequently. So unless someone is going out of business, which is certainly happening, we would anticipate more resiliency in this downturn than the last on the CoStar side. And then, the other areas, I think, are in fact countercyclical. I think we’re ready for the next question.

And your next question comes from the line of George Tong from Goldman Sachs. Your line is open.

Hi. Thanks. Good afternoon.

Hello, George.

So CoStar Suite revenue growth decelerated in 2Q to 8% year-over-year. Can you elaborate on the broader sales environment for CoStar Suite including changes in the sales cycle and sales force productivity, as well as what impact do you expect the commercial real estate market to have on CoStar Suite?

Yes. So I think that the big takeaway is that first month of the quarter April was just a stop, not much was happening. So that was a big factor. And then, it began to build back up and I think it will continue to build back up. Sales productivity began to return back to more normal levels, as we went into June it began to continue to improve. And one of the things -- one of the considerations is that, we have this -- the CoStar sales force is selling both LoopNet and CoStar. So you could get sales force productivity climbing, while you have one of those two products not climbing as quickly. So one could take from the other. So one of the things we'll be looking to do over the next year or so is, continue to invest at a modest level in building more resources to be able to go after both product areas simultaneously. But I think in my remarks I've addressed the fact that I think CoStar remains in strong demand throughout a cycle. Opportunistic, PE folks coming with billions -- hundreds of billions of dollars to invest and look for dislocation. People continue to renew leases. I fully expect that. And so people are going to still be looking to CoStar to understand where the values are, what transactions are possible. So I think we'll be optimistic about it. Also remember we're adding more and more to CoStar. So you'll be seeing Ten-X auctions in CoStar. You're going to be seeing STR data in CoStar. You're going to continue to see enhancement, you're going to see more lending solutions. So it's growing it's strong. We feel good about it.

And your next question comes from the line of Bill Warmington from Wells Fargo. Your line is open.

Good afternoon, everyone.

Good evening, Bill.

Hello, Bill.

We’ve changed up on you. For 20 years we did these things in the morning, especially evening, it will take a lot of catch up. Q – Bill Warmington: I appreciate your patience. So I had a question for you on signature ads. And it sounded like in some of your prepared remarks you talked about LoopNet recovering. I remember in the first quarter, it sounded like January and February had started really strong and then COVID had derailed things. And I was hoping you could talk a little bit about what the average price you're getting these days is and where you're getting traction within Diamond, Platinum, Gold and the Premium lister? And what the contract links look like? I think that it started out at three months now their moving north of six months. I was hoping to get a better picture of where signature ads are headed? A – Andy Florance: Yes. That's correct. They started three months, they've gone to six months and that's basically because we invest a fair amount upfront in bringing them up online and it takes more than three months to lease a $100 million building or to sell a large product like that. Scott, do you have specific numbers on the movement? I mean it's small, but... A – Scott Wheeler: Yes. Yes. As far as the signature ad pricing that you're talking about we continue to see upward lift in signature ad pricing as they're shifting into more high-value ads. I think the average price now in the signature ads blended across the different tiers is about $750 for those ads compared to the Premium Listers which are somewhere in the low to mid-60s per add. So we're overall blended around $70 to $75 bill on the ad with the mix. So we're still seeing good positive pricing generation and pricing momentum on the signature ads. A – Andy Florance: And Bill if we were to look out over the next five years, I actually feel that those -- that $700 price point could move into the thousands of dollars pretty comfortably. And I think we could take significantly more share into the signature ads up from the premium listing which would give us dramatic growth in the blended average price and do that with a satisfied customer base which we're feeling they're getting value. And I'm very bullish on the value we're delivering our advertisers. I think we're delivering amazing value on these folks right now. And I think that it's our job to communicate how much value we're bringing to them. So I think we'll have a good story there for five years plus.

Your next question comes from the line of Ryan Tomasello from KBW. Your line is open. Q – Ryan Tomasello: Hi. Good evening, everyone. Thanks for taking my question. I wanted to hone in on Apartments.com. It really seems like the current environment is a bit of a Goldilocks scenario for that business with the accelerated move to digital and some of the counter-cyclicality starting to play out. So I guess my question is if this backdrop is changing your strategic thinking if at all around the apartment business in terms of penetrating that TAM that you've talked about with products outside of just advertising, do you think that there is enough greenfield opportunity there to continue just to focus on the advertising product? Or is there also an opportunity more near-term to move beyond lead gen and more directly monetize other areas in leasing and payments and areas like that? A – Scott Wheeler: I think that the approach we're taking is first of all to be very clear, I think there is a massive amount of greenfield. So I am absolutely convinced that the area below 100 units is just as relevant as the area above 100 units. And it's just sort of an accident of history that it hasn't been monetized to-date. And so we have growth above 100 units and we have only penetrated 1% of the below 100 units. So we have 99% to go, so it's a massive opportunity. However, we -- it doesn't keep us from wanting to add more tools to improve the overall experience. And the margin as we invest in these tools and we can spread that across a large audience it won't really impact our margins. So we want to provide as much value as we possibly can to accelerate penetration. I think that the addition of this relatively small inside sales team in Richmond and the fact that they spun up and became productive working in new sectors so quickly is a lesson that we may want to invest in growing our sales force at a measured level because we -- the productivity per salesperson and the ROI per salesperson is great and the market is huge.

Your next question comes from the line of Sterling Auty from JPMorgan. Your line is open. Q – Sterling Auty: Yes, thanks. A – Andy Florance: Good evening, Sterling. Q – Sterling Auty: Good evening. And I am glad… A – Andy Florance: I was worried as I got the 20th page, would be feedback. Q – Sterling Auty: So you talked about the efficiencies in terms of the customer acquisition by doing digital marketing versus in-person. How do you think about as we move past and business travel opens up etcetera to whatever extent it does, how much did you have a learning experience that maybe you're going to be able to capture and even drive higher margins than what you may have thought six and nine months ago because of how effective this has been through this environment? A – Andy Florance: Well I think it's a really excellent question and there's a lot of truth laced in there. So there are a lot of things we do as we deploy people in different markets and the amount of business travel we do to reach our customers face-to-face. And we invest a lot in travel and move even within a city. And I think there's no substitute for face-to-face interaction with our customers over time. But we have seen 100 million people have now just learned what Zoom is and FaceTime and GoToMeeting and Webex. And so 100 million people who before were complete ludites are now well versed in digital and video communication. So our ability to train on board, support, grow our accounts very cost effectively I think is really enhanced. And that's a positive that's come out of this. But I do think there'll still be -- in return there'll still be a need for face-to-face, but dramatically less. So there's a little bit of margin benefit there a little -- probably a little bit of customer acquisition benefit there. Maybe a lot.

Your next question comes from the line of Mario Cortellaci from Jefferies. Your line is open.

It's John filling in for Mario. You have a lot of cash right now. Could you give us a sense for what a third leg to the business might look like? The Ten-X deal was interesting and that you haven't played that market before. What other types of businesses are you looking at, any specific criteria from a growth perspective or end market or product type? Thank you.

Well I think one of the challenges would be careful not to say anything. So that's probably the hardest thing is not answering. So the -- there are a wealth of opportunities. And if you look at the things we've done in the past those are sort of indicative of what we might do in the future. So we're looking for things that have high overlap of strengths we already have. So where we look at their business and we think that there are things that we can bring into our business that will not incur incremental costs, but incur incremental value into our existing business and vice versa, so that we can bring things into their business. That we already have as part of our inventory and part of our sum costs and will add value to their business. That could be distribution channel, data, software marketing any number of things. So for example at Ten-X we can bring that into our operation and bring them massive exposure for their auctions which I think will dramatically improve their business. And it has relatively low-cost to us. So things like that. Now we're not going to straight terribly far from like there's no need to straight terribly far from where we've been in the past because there are literally hundreds of companies that are immediately adjacent to some area we're already in and they range from small to very, very large. So I think that the future is going to be more like the past. I know I've been waiting for the first phone call. We raised a first question on the call and thank you for delivering it. I talked about it, while we were raising the capital. I said we will complete this capital round and we'll be answering the question. But we'll be patient. The first earnings call we'll be answering the question what we can do with the money. We'll be patient and we'll be prepared to answer the question multiple times until we find the right deal. It may take 1, 2, 3, 4, 5 deals to make an impact. It may take 4 or 5 earnings calls. It may take 10 earnings calls. But we're looking for the right deal at the right value with low-risk and with us prepared to do the right integration execution. So that we'll be patient and it will be related and we'll have more than two or three thesis for why we think the deal will work.

Your next question comes from the line of Jeff Meuler from Baird. Your line is open.

Yes, thanks. Good evening. I was hoping you could expand on your comments about the data that you're using for digital outreach targeting and retargeting and LoopNet Signature. So you mentioned the tenant data, just if you could be more specific about how granular you get. And obviously you have a broad wealth of data throughout Suite. So would just love more detail on the data informing the targeting and the retargeting?

Sure. I think, I'd go into painful detail there, but just give you a couple of examples. So we could look at any particular cluster of buildings in the United States by property type and say office and Cici's Corner and then we can look at 15 years of leasing history and we can see what the most probable sources of a tenant are for any particular building. So we know that there's a high correlation between tenants in Tysons Corner that tend to lease in Tysons Corner, but also tenants in Boston tend to shift to Tysons Corner a little bit less going from Ruston to Tysons Corner. Shockingly some from the -- over to Tysons Corner. So we can look at those patterns and then we can -- we have a list of all of the tenants that are roughly in that quality zone for property in the source markets over history and then we have lists of emails and people associated with those tenants. And then we retarget those people aggressively. So, we funnel our spend for Tysons Corner building against the people who are most likely to come in. Now, we also know the lease expirations. We know when they moved into the space. We know, if they're growing, if they're contracting. So it's very, very targeted spend. Then when someone – when we see someone come from a particular organization to look at a property at Tysons Corner, we can look at other people that looked at that same property what other buildings they looked at. We use collaborative filtering and similar the way Amazon does to then invest in retargeting against people that either looked at the subject building to sync in frequency, or we may use a collaborative filtered property to bring in – bring someone from a building that just like that one and try to engage them in this other building. And that's also true with people that have – we look at buying patterns of what people are investing in. We're looking at what people are searching and looking at for Ten-X. So it's just an endless sort of big data exercise AI exercise of how we invest money against the right targets to very efficiently drive people. And that's working like a rock star right now. The – I'm very, very happy with the 600% increase in frequency, we've delivered to our Silver – our Diamond and Platinum advertisers in Lensa over the last quarter that is real value they're going to see and it really drives their brands on to their targets. So – and it's sort of fun to do. We have a bunch of folks that enjoy doing that, a couple of walks over here.

Your next question comes from the line of Andrew Jeffrey from SunTrust. Your line is open.

Hey, guys. Appreciate you taking the question. Andy maybe you would like to expand a little bit on a question asked earlier at a more strategic level. I hear you talk about, for example, the sub 100-unit apartment market is being – you implied a $10 billion TAM. I think when you add up these marketplaces TAMs they are bigger you might argue how many times bigger than Suite but bigger than Suite, and clearly have these countercyclical even structural growth attributes in terms of the shift to digital. So I guess what I'm getting at is does there come a time or are we approaching a time where Suite, although it still grows is positioned more as the funding source for growth in these Marketplace businesses which are bigger and perhaps can sustain faster multiyear growth? I mean, would you articulate that kind of strategic change in CoStar's business?

Well, I mean, I think you're – if you look at 5 to 10 years, I think there will be a lot of growth in these marketplaces. The – for sure. And I wouldn't be surprised, if they don't – if our source of revenue doesn't become more and more diversified between CRE marketplace, multifamily marketplace some – land marketplace BizBuySell marketplace and other marketplaces, we may enter. So I would not at all be surprised, if the marketplaces didn't eclipse the revenue from CoStar Suite as CoStar Suite grows. But I wouldn't count CoStar Suite out. There are many, many growth drivers for CoStar Suite. So we are well penetrated in the brokerage community, but we have a lot of green space, a lot of greenfield in the owner area in the lender area and in international growth. So we have some exciting stuff happening in the fourth quarter and in the first quarter. Third fourth quarter and first quarter, so in the third and fourth quarter, we're going to have a fully internationalized version of CoStar Suite many languages, so people can look at properties from Spain and in Spanish across multiple European countries and across the United States. And I think that just like the company experienced a surge of growth as we went from being in three or four U.S. cities to being a largely national footprint, I think we have that same opportunity internationally. And we'll be communicating some things over the months to come that I think will sort of reinforce that opportunity. And I think that, it will change the way that London Broker perceives us when their terminal isn't just showing the Mayfair information, but is showing them the whole civilized world in their terminal eventually, right? I think, it will change the perception and the value of the product and the reach, especially the owners and lenders investors and private equity funds. So there's a lot of growth there. Also, the tools that are going to productize our lender solutions to a much broader audience, I think are pretty exciting. So I think there are a lot of growth drivers there. I worry about one of the things that, I think is a stressor on the business right now is not the market. It's not the – it's just – it's the fact that our sales force over the last five or six years hasn't grown much. We have roughly the same size sales force – sales force, but it has CoStar and LoopNet now. It has the banking side. It has so many things going on. But I just think that maybe we need to grow that sales force a little bit to be able to capture all the different opportunities we've got.

Your next question comes from the line of Brett Huff from Stephens Inc. Your line is open.

Good evening guys. Thanks for taking the time. I appreciate it.

Good evening.

A quick question -- a follow-up on LoopNet, that a follow-up on LoopNet that was the business of yours that we struggled most and trying to figure out what would happen in this pandemic. Looking at history it was -- I think Andy you mentioned, it was hit harder than this time. My gut is that there's some demand compression, because people may just not be advertising as much in some instances bid-ask price or bid-ask spreads are wider. On the other hand, you have a much stronger shift to quote on digital advertising within the vertical that is commercial real estate. Can you talk about that trend and kind of the power of the down arrow and the up arrow? And where we're -- the fact that Scott said, revenue is going to get better in the next couple of quarters is really I think, indicative. But how do we think about the down and up arrows? And then, I'll ask again the question I asked last time, which I thought was helpful, if any change the microeconomic decision of a person thinking about advertising a building or lease. Has that changed at all gotten better or worse et cetera? Thanks.

Yeah. So LoopNet is, and I think the arrows overall go strongly towards countercyclical to LoopNet. And I think it's a trend you're going to see even after we come out of this particular cycle. So your comment about bid-ask spread is correct. People are not going to be doing as many transactions. But you can actually pick up that business over in the Ten-X side. So you'll pay us differently. But we'll monetize a transaction -- really the value we're delivering is the digital marketplace, but you're going to monetize it over on Ten-X. On the leasing side, I think you're a nut job right now, if you're not leasing your high-end -- marketing your high-end building on LoopNet. I mean, I think it's just beyond me, what you'd be thinking. So you have this $200 million building. No one wants to crowd in an elevator. And go up and down you're building with a bunch of people look at it. But you have the most people searching for office space on LoopNet right now or retail space, industrial space. And to not be front and center in front of that community and that buying audience in this environment is, just nutty. So I think it's more of an education thing. I think that, Apartments.com was -- it's an education thing. And it's a size of sales force thing. So Apartments.com had a much bigger sales force going into this cycle. And people were more -- it was more established and people were more used to digital marketing for apartments. So the combination of bigger sales force and the behavior allowed it to flex hard into countercyclical LoopNet, in the -- had predominantly been a lower end broker marketing solution was newer at the upper end property solution area. The office retail industrial industry was less experienced to digital marketing. We have smaller sales force there. So it's taking longer for it to flex into countercyclical. But we're going to be looking forward to do that. And truth is on our side. So, we'll work into that. And play into that.

Your next question comes from the line of Mayank Tandon from Needham & Company. Your line is open.

Hey good evening. This is actually Kyle Peterson on for Mayank. Thanks for taking my question. Just wanted to drill down the STR business, it's a good sign it seems like the trends. And net new sales have actually been at least better than we were expecting given all the headwinds the travel industry is facing. Just wondering if you could just drill down a little bit more into, what drives these sales and eventually revenue growth, if it's not directly I guess related to things like occupancy?

Yeah. So the -- one of the first thing that drives the positive sales result in the face of just astoundingly negative economic conditions, is the fact that no one -- people don't cancel their STR, because things are going poorly. So in a rough environment STR is your compass. When you're lost in the woods STR is your compass to try to find your way out. And you're paying -- you've got multimillion-dollar property or $100 million property and STR is costing you a couple of thousand dollars a year. So you don't -- when you discover you're lost in the woods that's not the time, you throw out your compass. So that's a critical fact. Secondly, the -- some independent owners this will be too much for them sustained low occupancy levels will break their ability to keep their properties. There's billions of dollars of capital looking to take advantage of that dislocation. And some of those folks are coming in and buying information and services from STR. So we're getting a little countercyclical going on there. We anticipate that, we will lose some of those independents. Bad debt is coming up a little bit some of the small independents. But there may well be significantly more revenue on the Ten-X side as we pick up that business in other forms elsewhere in our business. Longer term, I think we have a really straightforward opportunity to provide some real software value to the industry: lenders, investors, operators, REITs by integrating the STR content into CoStar. STR's technology magic for the first decade of its life were benchmarking and the ability to keep the data anonymized and secure and get people quality benchmarking. I think we'll retain that technical skill, but we're going to bring a new skill set, which is more processing power against the analytics more correlating data, expanding the breadth and depth of the different sorts of data sets we have from benchmarking to P&L benchmarking to forward casting to forward booking information, all that sort of stuff. So, product flow will probably drive a lot of growth in the future. They'll likely be -- we also going into the future intermediate term. STR did a really great job at selling into the hotels themselves. But there are so many other parties that are interested in the intelligence STR produces that a larger sales force a larger marketing operation will allow us to reach more untapped segments there. So, a bunch of drivers there. And I think all of us, our investors, our analysts and our staff are pleasantly surprised at the fact that STR has actually been so resilient in unprecedented economic headwind. So, hats off to the team at STR, Amanda Hite and Elizabeth and the whole team hold things together marching on in a tough environment.

Your next question comes from the line of Stephen Sheldon from William Blair. Your line is open.

Hi. Thanks. Wanted to ask for some more detail on bookings trends, so how much of bookings activity in June was potentially a catch-up of activity from prior months? What could booking trends look like so far in July? And then, Andy, maybe what surprised you the most in terms of bookings activity overall since the pandemic began? Thanks.

Yeah. So, I never had a context for a pandemic. So, anything that surprised me like what is this. I'd say everything was a surprise. So, by far and away the biggest surprise was the mega empirical counter-cyclicality of Apartments.com. That was just amazing. And I don't think the selling activity is catch up. I think the management team Fred Saint, Paige Forrest, Patrick Dan did a great job of innovating. When NAA canceled their conference, our team put on their own conference, and sold a lot of product for little to no money invested. So, I don't think it was catch up. I think it's a new business they're winning. And I think there are just people in a world in which they can't put a sign spinner from their apartment building productively are buying digital instead. So, that's just a very positive trend. And I think that's going to go forward. I also think that one of the positive things that comes out of these bad situations is that people modify their behaviors going into one of these severe disruptions, but they don't modify them back. Very often that 30-unit community that never bought any solution from Apartments.com, starts buying it because of a particularly tough environment, but settles into it likes the results and stays with it for a while. I think the other thing that if I could say surprised me was the fact that I spent 30 years looking closely at employment data and this is the worst it's ever been by far. So I would have expected a much more severe down drop than we've actually experienced. So -- and to come into June with virtually every one of our product platforms growing is remarkable. That was a big surprise. Everything is growing. There's nothing -- I mean even STR is growing. And so the speed at which we came out of it -- and I think that I'm just going to -- we will definitely chalk up April permanently to just people saying what's going on. It's the buying a comfortable office chair for home and a router. That's what April 2020 was.

And your next question comes from the line of Joe Goodwin from JMP Securities. Your line is open.

Hey, guys, thanks for taking the question. Can you talk about how the pricing for Apartments.com changes when you're selling into the sub 100-unit segment? And perhaps maybe how your approach in that segment differs on pricing versus the north of 100-unit segment? Thank you.

Yes, absolutely. So the price per unit comes way up. So actually the cost of marketing apartment -- a 10-unit apartment building in traditional methods versus the cost of marketing a 400-unit apartment building via traditional methods your cost per unit is much higher at the smaller properties. And on down to the -- if I take the cost per unit at a single-family dwelling that might be paying a real estate agent a month of rent which -- that's where you're getting your highest cost per unit. So our pricing sort of follows a little bit of that. So you're going to come down where you might be spending $700 $800 for a 130-unit community. For a mid-line ad you might that price may come down to several hundred dollars at the lower end. Also you may be in and out of the market at the single-family dwelling, so that may be a shorter contract period. But surprisingly, the pricing is actually not that dissimilar. What really happens is that people with the 200-unit community will go aggressively for the Diamond plus because they need higher lead flow, they've got more units to fill. So they might choose to up their exposure their sort and go up to $7,000 a month. Whereas the person with single-family dwelling can be quite happy with the results they get at $295 in a month -- or $295 for a campaign that might last for two months or three months. So it's not wildly dislocated. There's more money at the bottom than there is at the top in this industry I believe.

And there are no further questions at this time. Andy, I turn the call back over to you for some closing remarks.

Well thank you all for joining us on this call. We had a solid quarter despite the challenges. And again I want to thank the investors, the new investors who joined us. Thank you for your confidence and we're going to work deploying your capital responsibly in the best time frame possible. So thank you everyone for joining us.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.