Ladies and gentlemen, thank you for standing by, and welcome to the CoStar Group's Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Sarah Sprague, Investor Relations. Thank you.
Please go ahead.
Thank you. Good evening, and thank you all for joining us to discuss the Q2 2020 results of the CoStar Group. Before I turn the call over to Andy Florence, 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 Q3 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 ks 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 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 Florence.
Thank you, sir. Good evening and thank you for joining us today for CoStar's 2nd quarter 2020 earnings call. A caveat, I see a large thunderstorm rolling into my position. So if you may mind getting 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 Q2, 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 faced 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 $2,700,000,000 in equity and debt in the equity and debt markets and acquired 10x, 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 62,000,000 monthly unique visitors on our platforms in the Q2, an increase of 13% over our record traffic levels of 55,000,000 monthly unique visitors reached in the Q1 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 1st part of the quarter as people adjusted to the new normal. It was progressed back in each month this quarter eventually reaching our best sales results ever in June. CoStar, LoopNet, Apartments.com, Lands of America, BizBuySell, Real Estate Manager, Risk Analytics and SDR all showed positive growth in the month of June. In a world of social distancing, our digital marketplaces uniquely enabled our clients to continue their mission critical leasing efforts.
While many were debating whether recovery would be V shaped, CoStar Group's recovery to date looks more like a check mark. While I believe the challenges from the pandemic are far from over, the progressive improvements in our operating results each month throughout the second quarter gives us greater confidence in the positive outlook for our business. CoStar Group's total revenue grew 16% year over year to 397,000,000 dollars Across the Q2, our sales force brought in $35,000,000 of net bookings with $22,000,000 of that being in June alone. Our marketplace businesses delivered strong revenue growth with Apartments.comgrowing 21% and LoopNet growing 18% year over year in the Q2. Our net income was strong at $60,000,000 Our overall EBITDA was well ahead of expectations at $109,000,000 an increase of 17% year over year And our non GAAP net income per share of $2.34 was up 5%, well ahead of expectations regardless the 2% dilution from our equity raise in May.
Apartments.com was truly the counter cyclical standout in Q2, hitting new records throughout the quarter. Net new sales were up 33% against our previous record set in the Q2 of 2019. In fact, every single month this quarter, our sales hit a new record high. In the true and accurate words of Page Forrest, our Head of Multifamily Sales, every single benchmark was blown away. We had a series of all time record high traffic numbers for our apartments network sites during the quarter, including 23,000,000 average monthly unique visitors, up 6% year over year and 200,000,000 visits, up 16% year over year according to Comscore.
Our Apartments.com sales force logged a 58% increase in quality meetings and interactions with our clients, delivering critical service to our customers at a time of significant challenges for their business. Apartments had a new quarterly record revenue of $146,000,000 This June, the largest annual multi family industry conference, the National Apartment Association Conference was postponed due to the pandemic. This conference is a significant customer event for Apartments dotcom and typically makes June our best sales month of the year. Without the possibility of meeting in person, we organized and produced a 2 day virtual summer showcase event conducted entirely with video meetings. We lined up speakers from top tech, digital media and advertising companies along with our own research staff and economists to speak on a range of topics from local market updates to marketing and anxious times, all in support of our customers.
The event was a resounding success. Over 3,200 customers participated, resulting in connections to over 1,000 new customers. The customer response was tremendous and contributed to a record June in terms of net new sales, nearly 20% above the previous record and for less than 5 percent of the cost of the annual in person event. We saved $4,000,000 going digital. As announced last year, we've increased our marketing expense and we've increased our marketing investments in Apartments dotcom by nearly 50%.
We plan to continue our increased investment in marketing despite the pandemic because we believe that we can still generate an outsized ROI on that investment even in this environment. Based upon our results this quarter, we think we are in fact seeing an excellent ROI on that increased investment. Our Q2 marketing campaign highlights start with the launch of our new broadcast ads featuring the iconic Jeff Goldbloomer's Brad Bellflower, the inventor of the Apartum Internet. These ads hit the airwaves at the end of March with an increase of 12% more ads over our 2019 campaign, airing across an even wider variety of digital and streaming video platforms. This year, we also increased marketing via paid social and media and retargeting ads as well as addressable TV through personalized advertising based on household composition.
We raised our SEM spend significantly leading to a higher frequency of number one positioning in a broad range of search terms. Overall, these paid initiatives led to a 50 7% increase in impressions. Paid advertising isn't the whole story either. Our continuous investment, the functionality of and content on our site helped to continue to fuel organic site traffic growth of 16% in Q2. We were also rewarded by new highs and unaided brand awareness, an important measure of the reach and effectiveness of our campaigns.
And we are now leading the pack with Zillow in 2nd place and Craigslist and rent.com tied for 3rd. We believe that strong and improving levels of consumer awareness is the key to our ultimate success in penetrating the broader rental markets and the timing and magnitude of our investment is clearly paying off. The strength of our business is evident and that we can make these aggressive investments in growing apartments.com while still generating $109,000,000 of EBITDA in the quarter. We're focused on accelerating our sales penetration across all categories of rentals from the largest apartment buildings to midsize apartment communities to single family homes, condos and townhouses. In late 2019, we added inside sales team based in Richmond, Virginia to focus on selling Apartments.com solutions to owners of midsized and smaller apartment buildings and single family dwellings.
9 months into launching this under 100 unit sales force, we're seeing great results. This quarter, we grew our net new sales in the under 100 unit segment nearly 70% versus Q1 2020. Over the last 12 months, half of all advertisers we added, 2,400 properties were in the sub-one hundred unit category. When we acquired Apartments dotcom in 2014, little to no effort was made selling to apartment communities with under 100 units. Now 16% of Apartments.com revenue comes from properties with under 100 units.
This means that today we have more revenue in the previously overlooked below 100 unit communities than Apartments.com had in total when we bought them. Clearly, there's demand for Apartments dotcom and rentals of all types, big and small. But as much as we have sold, we are still less than 1% penetrated into the sub-one hundred unit segment. We are excited about the amazing multibillion dollar scale of the opportunity we have here and plan to continue to build out the marketing efforts and sales teams to fully monetize our leading position. Dunk costs get behind us.
On June 9, the bankruptcy court signed off on RentPath's Chapter 11 plan and our acquisition proposal as part of the plan, so the remaining hurdle is the FTC process. On April 29, we received a second request as part of the FTC approval process for our proposed acquisition of RedPath. This was anticipated and we are responding quickly to the request. Should we get approval to close the transaction, it would be completed within the 3 to 12 month timeframe that we gave in February. In the meantime, we continue to compete aggressively in the market as always.
We believe that we are continuing to take significant market share away from RentPath because we offer vastly superior traffic, more exposure and thus more leads and leases. Over this past quarter, we began integration of our successful lender risk analytics solutions into CoStar Suite. Productizing these solutions into the larger platform will allow CoStar to expand its reach from the top tier of CRA leaders to the many thousands of institutions that could greatly benefit from analytics only available with CoStar data. For over a decade, our highly experienced risk analytics team has been a trusted source to lenders providing credit risk models for portfolio stress testing and loan loss reserves used in regulatory reporting, examinations and for internal risk management. By leveraging curated CoStar property data and market research, we can provide up to the minute information on a lender's collateral, allowing them to perform real time performance surveillance.
This is a capability unmatched in the industry. We think combining these time proven models with CoStar data is a scalable in a scalable platform creates exceptional growth opportunity in the lending market. LoopNet finished the quarter on a strong note, overcoming the market disruption that began in March April caused by the pandemic. Monthly unique visitors are now tracking over 7,000,000, which is an all time high being the record set earlier this year. Net new sales improvement filed the improvement in traffic finishing June with net new sales up 91% year over year.
To keep this momentum going, we have really leaned in with significant product enhancements and marketing efforts. We position LoopNet Diamond and Platinum level signature ads to property owners as powerful digital marketing innovation that generates unprecedented and differentiated marketing reach, frequency and branding for their valuable properties. Beginning in April, we dramatically expanded our use of broad retargeting to further increase the frequency reach and brand enhancements that our top signature advertisers enjoy on LoopNet. With over 7,000,000 unique monthly visitors, LoopNet is by far and away the most heavily traffic commercial real estate website. So we believe we have the best insights into who is currently in the market for commercial real estate.
Once we identify a prospective tenant or buyer on LoopNet, we retarget them across the Internet, thereby increasing the critical frequency of views for our top signature ads by 600% above the great performance they're already getting. In addition to driving up the frequency of valuable exposure for advertisers, this retargeting investment has a benefit bringing a significant number of LoopNet visitors back to LoopNet for further reengagement. In addition to retargeting, we've launched a new program to leverage our database of 6,000,000 tenants and digitally target them across the web and social media to bring these tenants to our advertisers' properties digitally. We've also added video conference enabled co turn to LoopNet this quarter. This allows registered LoopNet users to invite colleagues to virtually tour potential spaces together.
At the end of June, we closed our 1st virtual M and A deal with our acquisition of 10X. 10X is the leading innovator of online real estate auctions having completed more than $24,000,000,000 in property sales online. In the few weeks since we closed the deal, 10x has held 2 auctions transacting an aggregate value of $50,000,000 We have approximately $400,000,000 in aggregate value going to online auction over the next 2 weeks. 10x has been used by all the major brokerage firms in America to transact properties online and close deals faster. While 10x is used to transact both performing and distressed properties, it was born out of the Great Recession and the need to liquidate a high volume of distressed properties quickly.
We believe that 10x is highly countercyclical. If there's an increase in distressed commercial properties in the cycle, we believe that 10x will see an increase in auctions and revenue. We are starting to see tangible signs of financial distress in the commercial real estate market. The first being delinquencies, which are clearly on the rise. This month, 30 day delinquencies jumped 5 percentage points versus June 2019.
This is only 2 percentage points lower than the peak of the Great Recession and this time around delinquencies are driven primarily by retail and lodging. In June of this year, we saw 7% of CMBS go 30 days delinquent, which could translate into over 3% of CMBS defaulting over the
next few months. You
may remember that one of the key synergies of the 10x acquisition is that we can leverage our millions of LoopMed visitors and Global CoStar users to increase awareness of properties going to auction at 10x and thereby dramatically increase the potential bidder pool for properties. Auctions with 3 or more engaged bidders are much more likely to transact above the reserve than our auctions with just 1 or 2 bidders. More bidders drive more closed auctions, which we believe will draw more properties for sale, which in turn draws in more bidders. And all that generates more commissions for our brokers. 1 of the first steps we've taken is to move 10x auction candidates to the top of LoopNet and CoStar and present them as enhanced diamond placements with enhanced retargeting, which will dramatically increase their exposure to potential bidders.
We will continue to invest in harvesting our unique data sets of millions of potential buyers and their search activities on our sites to digitally target them and draw these potential bidders to 10x. We're very excited about the enormous potential of this acquisition. This quarter, the STR business model has clearly proven it's resilient in what must sadly be the darkest days the hospitality industry in modern times. Remarkably, STR generated positive net new sales in Q2 and a recovery in ad hoc revenues that was a positive surprise. In April of this year, 19% of hotels in the U.
S. Were closed, but by this month, only 7% were closed. Looking elsewhere, in April, 98% of Spanish hotels were closed, but in contrast today, only 3% of the hotels in China remain closed. Globally, the hotel industry is slowly recovering from the bottom, although more recently occupancy and demand has started to decline again in the U. S.
But as long as hotels are open, STR is essential. With global occupancy rates in the mid-40s 40% and little hope of a quick recovery business travel is very probable that we will see many hotels restructuring and changing hands. But lenders, investors and new owners will also need STR data in order to accomplish those transactions. As you know, our strategy is to combine SDR Hospitality data with CoStar's complementary building set in order to create new products that provide a full view of building data income and occupancy information, sales comps and for sale information. We're making good progress on this step and hope to launch within the next year.
We had 2 successful capital raising events in the quarter. In May, we issued $1,700,000,000 in equity. In June, 2 of the 3 rating agencies awarded our initial debt issue with an investment grade rating wisely. As a result, we were able to issue $1,000,000,000 of 10 year debt with a coupon of 2.8% on July 1. Including our cash generation this quarter, this leaves us with a current cash balance of approximately 3,800,000,000 dollars This combined with our undrawn revolver of $750,000,000 gives us over $4,500,000,000 of firepower and growing.
As we move forward to grow this business aggressively, we're positioned with a phenomenal balance sheet and are well prepared to take advantage of what we expect could be significant opportunities in the coming years. I'm grateful for the confidence of our investors grateful for the confidence that our investors have placed in us. Our investors are the 12th player in the CoStar Football team and one of our company's greatest strengths. We have a long successful history of acquisition integration having made over 30 acquisitions since CoStar was founded. A number of our great acquisitions have been made during down cycles.
Examples include comps.com, which we purchased in 2000 at a 60% discount to the pre.compremium and LoopNet, which we acquired in 2012 at a 40% discount to its pre Great Recession premium. In total, acquisitions have provided about 30% of our revenue growth since our IPO, but it is how we integrate them and how they accelerate our organic growth that's more important. Taking the two examples above, comps.com now brings in 8x its acquisition level revenue and LoopNet 4x. It's this kind of discount and development potential that we aim to exploit in the coming years and why we view market stress as an opportunity rather than a concern. Over 7,000 PropTech Companies have emerged over the past decade or so, probably 500 or so have truly viable business models that are interesting that create plenty of future M and A opportunity for CoStar Group.
CoStar Group is the largest PropTech company with the strongest balance sheet and the most experienced and successful M and A. So we believe we are well positioned to make a number of accretive acquisitions in the prop tech space in the years to come. We are very patient and have always waited for the right opportunity. Digital real estate consolidation is clearly a very hot space right now. I think the proof point is Bill Foley's CNA and Senator launching a $7,000,000,000 hostile takeover bid for CoreLogic in the midst of the global pandemic.
I'm very familiar with CoreLogic since decades ago as a young software engineer starting CoStar Group, I invented the first ever version of their flagship digital public records product. Perhaps my first M and A success for our investors was declining an offer from CoreLogic's predecessor company to acquire the fledgling CoStar Group for $250,000 in our 1st year of operations. I had thought we were aggressive in acquiring 10x in a friendly deal during a lockdown, but I must say that even leaving aside the clear antitrust issues, Foley has one upped us with the aggressiveness of seeking to operate a company acquired in a hostile takeover in the midst of a pandemic. Lastly, a few words on what we're seeing in the U. S.
Economy and commercial real estate. The rebound in the labor market that began in April was largely driven by workers coming off of furlough and reattaching to their previous jobs in restaurants and retail. However, as a second wave of infections has spread across areas of the South and Southwest, the momentum in job gains has predictably slowed as reopening plans were paused and reversed. The improvement in initial claims for unemployment has stalled at a level that is still more than double the worst single week during the Great Recession. Other high frequency indicators and hiring seem to have slowed as well.
So it seems that the initial V shape recovery in the labor market is likely to pause. And with the emergency unemployment benefits set to expire in some form at the end of the week, the sharp bounce back in retail sales could also be at risk. Looking at the commercial real estate market, the lockdown has affected demand drivers for every property type in very different ways. None have been as negatively impacted as hospitality and retail. The retail sector has shown a sharp bifurcation in property performance and rent collections between tenants deemed essential and those labeled non essential, with the former nearly unaffected.
The vast majority of rent forbearance and delinquencies during the lockdown have come from hospitality and retail, and we've seen a corresponding pickup in activity from clients in asset management and special servicing, as well as from 1,000,000,000 of dollars of opportunistic capital that have been raised in recent months. While certain parts of the industrial market have also been negatively impacted, the lockdown has accelerated positive trends for logistics. In fact, once CoStar researchers capture all the leases signed in the month of June, it looks like it will be a record month for industrial leasing volume, all time record. For multifamily, data from affarbus.com suggests that the spring leasing season was disrupted as you would expect. Asking rents are largely flat year to date instead of the gains that are typically seen during the warmer months of the year.
We're seeing more noticeable moves lower in the rents of 4 and 5 Star properties in major metros, the CBs predominantly, but these are also metros where there are record high levels of new supply coming into the market. Given this increased competition among landlords looking to fill newly delivered space, it's no surprise that Apartments dotcom continues to experience record sales months. The office sector is perhaps the most talked about property type of the mall and its fate is certainly the most heavily debated in the media. April leasing volume predictably dropped as the transition to work from home began and people were more worried about getting a new router delivered to their home office than looking at office space. That being said, April still saw nearly 15,000,000 square feet of new leases signed.
As we move through the quarter, the number increased sharply as the new cycle shifted from breathless stories about the benefits of remote work to ones about its obvious pitfalls. There seem to be fewer stories today about companies moving toward full time work from home and we're hearing more about hub and spoke models where firms are looking to lease additional spaces closer to residential nodes from where their employees are commuting. Even if we have a successful vaccine, full fruit immunity may be elusive and the realities of social distancing may be with us for years. In that context, I think it's highly likely that the amount of office space utilized at the workstation expands from a typical 36 square feet per workstation to a pi R squared or 3.4x6 squared or 113 Square Feet, from 36 Square Feet to 113 Square Feet. That could be a huge demand boost requiring tens of thousands of new office buildings, albeit in shifting geographies.
Uncertainty has permeated the capital markets landscape and we've seen a drop off in deal volume, which registered at just over $46,000,000,000 in the Q2 of this year, about 30% of where it trended in 2019 and 40% of what we've seen over the last 5 years. Yet the absence of deal flow isn't a reflection of Series Commercial Real Estate's relevance waning, rather than investors and lenders are finding it difficult to underwrite deals in this uncertain environment and that there's a pricing disconnect between buyers hoping for a steep discount and sellers holding on to pre pandemic valuations. We expect that rising vacancies, slowing or negative rent growth and rising cap rates is likely to impair pricing and valuations by upwards of 10% relative to pre COVID levels. These capital market trends illustrate the countercyclical nature of CoStar's business and its suite of products. During times of change and exogenous cyclicality, investors, owners, operators and lenders and tenants rely just as heavily on technology and data insights to inform their decisions and facilitate their deals, operations and apartment searches on the apartment Internet.
As we conclude our Q1 operating results in this terrible pandemic, I am very grateful to all of my colleagues who continue to execute in our business at the highest levels of professionalism. My colleagues did not miss a beat and I have the greatest confidence in their ability to continue to deliver great results for our customers and investors whatever the challenges we face in the quarters ahead. Our services clearly remain mission critical. Our online marketplaces are providing critical support to tens of thousands of clients, maybe hundreds of thousands of clients who need our virtual leasing solutions to bridge them until we can return to the normalcy of an in person property tour. It's a great quarter to be especially grateful to our great team, including you, our investors, the 12th player.
At this call, having survived the thunderstorm without a power failure, I will turn the call over to our CFO, Scott Wheeler.
Well done. Thank you, Andy. We moved 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 Q2 results. And we've seen great improvements in each month of this quarter since the pandemic disruption began back in March April. Our revenues in the Q2 of 2020 increased 16% over the Q2 of 2019, coming in above our 13% revenue growth guidance for the 2nd quarter and $5,000,000 above the high end of our revenue guidance range. Revenue growth in the Q2, excluding STR, was 12% year over year. We did not record any revenue from the 10x acquisition in the 2nd quarter.
CoStar Suite revenue grew 8% in the Q2 of 2020 versus the Q2 of 2019, coming in at the high end of our guidance range. CoStar Suite sales hit a low point in April and improved throughout the quarter, with June sales for CoStar coming in as the strongest month of the quarter, resulting in positive net sales bookings for CoStar in the 2nd quarter. This is certainly encouraging when you compare it to the 2,008 or 2,009 recession when net sales bookings for CoStar were negative for 4 consecutive quarters. We certainly didn't see that trend materializing in the 2nd quarter. As the lower subscription sales levels this past quarter start to impact the second half revenue, the revenue growth rates for Co are expected to be sequentially lower for the 3rd and 4th quarters of 2020.
Accordingly, we now expect the revenue growth rates for CoStar Suite to be in the 6% to 7% range for the full year of 2020. At this time, we don't have any renewal price increases assumed in our full year outlook. Revenue in information services grew 47% year over year in the 2nd quarter to $31,000,000 coming in above the high end of our guidance range. Overall, we expect reported revenue from information services to grow at a rate of approximately 45% on a year over year basis in 2020, with STR contributing revenue in the range of $52,000,000 to $54,000,000 for the year. Multifamily revenue growth for the Q2 was outstanding, improving to 21% over the Q2 of 2019.
As Andy mentioned, we had record sales in multifamily in the 2nd quarter, driven by an increase in the number of properties advertising with us, which went up 10% in the 2nd quarter, as well as growth in the average revenue per property, which increased 11% in the 2nd quarter as properties continue to upgrade to increase our exposure. Based on continuing strong sales, we expect revenue growth of approximately 21% for the full year of 2020. Commercial property and land revenue grew 13% year over year in the second quarter, exceeding the high end of our guidance range. The LoopNet marketplace grew 18% year over year in the second quarter as sales results improved each month following a low point in March April, very similar to CoStar. With LoopNet traffic now above pre pandemic levels and the increased exposure that our signature ads are producing for our customers, we expect sales and revenue to improve sequentially in the second half of this year and perform more or like to the apartments marketplace.
For the full year, we expect organic growth for commercial property and land of approximately 13%. Beginning in the Q3 of 2020, we will be including 10x revenue in the commercial property and land category alongside LoopNet, Including forecasted revenue in the range of $25,000,000 to $30,000,000 in the second half of twenty twenty for 10x, we expect that the commercial property and land revenue growth rate will be approximately 25% to 28% for the full year of 2020. Our gross margins came in at 81% in the 2nd quarter, exceeding our forecast of 80%. We now expect gross margins of 81% to continue for the remainder of the year. Our profitability was strong in the 2nd quarter with net income, adjusted EBITDA and non GAAP EPS results all ahead of the guidance that we issued in April.
Our Q2 2020 adjusted EBITDA of $129,000,000 represents a 17% increase compared to adjusted EBITDA of $110,000,000 in the Q2 of 2019. Q2 adjusted EBITDA was approximately $16,000,000 above the midpoint of our guidance range. Approximately half of the favorable profit outcome was from higher revenues in the quarter. The other half was from holding overall spend levels in line with the Q1 of 2020. Our marketing costs increased seasonally in the Q2, although less than expected given some of the disruptions in April.
Our hiring restrictions continued throughout the Q2, resulting in modest headcount declines as attrition continues at slow paces and resulting in lower personnel costs. The resulting adjusted EBITDA margin of 32% is 3.50 basis points above the midpoint of our guidance range and it's in line with the margin we achieved in the Q2 of 2019. Now let's take a look at the performance metrics for the quarter. At the end of the second quarter, our sales force totaled 860 people, including approximately 60 salespeople from STR and 10x, which we included for the first time in our reporting. Excluding STR and 10x, our sales force totaled approximately 800 people, which is in line with the sales headcount we had at the end of the Q1 of 2020.
The renewal rate on annual contracts for the Q2 of 2020 was 89%, down approximately 100 basis points from the Q1 of 2020, which is better result than the 200 basis point decline that we expected when we gave you our outlook last quarter. Our current forecast for renewal rates anticipates an additional decline of approximately 100 basis points in the 3rd quarter with stabilization and gradual recovery expected thereafter. This is indeed a positive trend and testament to the value our customers place on our information. In the Great Recession of 'eight and 'nine, our renewal rates declined approximately 800 basis points before recovering. We're not seeing anything near that type of a recession impact in this downturn.
Renewal rates for the quarters for customers who've been subscribers for 5 years or longer was 95%, in line with the renewal rate of 95% in the Q1 of 2020. Subscription revenue on annual contracts accounts for 82% of our revenue in the Q2 of 2020, slightly below the 83% from the Q1 of 2020. Now on to our outlook. We are reinstating revenue and earnings guidance for the remainder of 2020, given the stabilization and improvement in our sales and the operating results over the last 90 days. Although there's still potential for continued economic disruptions in the months ahead, we believe we can forecast the remainder of 2020 within a reasonable range of outcomes, given the relative predictability of our subscription revenue model.
We currently expect revenue for the full year in a range of $1,630,000,000 to $1,640,000,000 which represents a growth rate of 17% at the midpoint of the range compared to 2019. This estimate includes approximately $25,000,000 to $30,000,000 in revenue from 10x in the second half of the year. We expect revenue for the Q3 of 2020 in the range of $415,000,000 to $420,000,000 representing top line growth of around 18% at the midpoint compared to the Q3 of 2019. This estimate includes approximately $12,000,000 to $13,000,000 in revenue from 10x. We expect adjusted EBITDA for the full year 2020 to be in the range of $515,000,000 to $525,000,000 which is within $5,000,000 of the previous full year guidance range of $520,000,000 to $530,000,000 that we provided back in February of this year prior to the impacts of the COVID-nineteen pandemic.
Our current forecast assumes roughly breakeven adjusted EBITDA for 10x in the second half of the year. Our outlook for the year currently includes year over year increase in our marketing spend of approximately $80,000,000 which is a significant increase year over year, although lower than the full year estimates we provided to you back in February. As Andy discussed, our marketing efforts are focused on the most effective digital and broadcast marketing channels for both apartments.com and LoopNet, and they're proving to be very effective. Our marketing spend in these channels was briefly disrupted in early March April, but has since returned to the spend levels that we anticipated in our original plans. On the other hand, there are certain marketing activities from our original 2020 plans, such as in person industry conferences, direct mail, advertising major sports events, these are no longer possible nor effective and so they're not included in our outlook for the remainder of this year.
For the Q3 of 2020, we expect adjusted EBITDA in the range of $120,000,000 to $125,000,000 dollars We expect marketing costs to increase sequentially in the Q3 as we continue to build momentum on the heels of our strong second quarter marketplace performances. We now expect full year non GAAP earnings per share in the range of $9.22 to $9.42 a share based on 38,300,000 weighted average shares. This estimate includes the impact of the recently completed equity and debt offerings. For the equity offering in May, we issued 2,600,000 additional shares. The additional shares dilute our non GAAP EPS by approximately $0.06 for the 2nd quarter and approximately $0.38 for the full year, which is an approximate 4% dilution, which is lower than any of our previous follow on equity raises.
With regard to the debt offering, which closed July 1, the net interest impact of the new notes after the pay down of the revolver is expected to be approximately $7,000,000 or $0.14 in non GAAP earnings per share for the full year. That's incremental for the interest on the revolver. For the Q3 of 2020, we expect non GAAP net income per share in the range of $2 to $2.10 based on 39,400,000 shares. So I'd like to make a few comments about our balance sheet and our capital structure before we open up the call for questions. Over the past 90 days, we raised approximately $2,700,000,000 consisting of our follow on equity offering of $1,700,000,000 in May and our first public debt offering of $1,000,000,000 in June, which closed July 1.
In addition, we renewed our revolving credit agreement for additional 5 year term at $750,000,000 and we converted it to an unsecured structure. Our balance sheet is stronger than ever. We now have approximately $3,800,000,000 in cash, dollars 1,000,000,000 of structured debt and an undrawn revolver. We're in a very strong position to take advantage of both organic and acquisition growth opportunities that might present themselves in the months and years ahead. We have a strong track record of successful value creating acquisitions, which is why I believe investors are confident in our ability to effectively deploy acquisition capital in the future.
Over the past 10 years, we've used a balanced approach to fund almost $3,000,000,000 of acquisition, deploying operating cash, equity and debt in roughly equal amounts. In just the past year, we have committed approximately $1,200,000,000 for 3 strategic acquisitions, STR, 10x and RentPath. If we can continue executing our acquisition strategy at this pace, it would take us approximately 3 years to deploy our current cash reserves. In summary, we had a very eventful second quarter. We adjusted to a new way of working.
We continue to support our customers, protect our employees, deliver very strong financial results, complete our first remote acquisition and raise $2,700,000,000 and significantly strengthened our balance sheet. I can't wait to see what we're going to do next. Thank you for your continued support. I look forward to updating you all on our progress in October. With that, we will now open up the call for questions.
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 had a question.
Thank you.
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 3 months. So it seems to be performing roughly the same. So we're not seeing much of a shift in any way.
That's helpful. Thank you.
Your 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 2 super low cost competitors.
So we're competing against a very well funded Exelligent 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 was 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, gosh, the last 10 years or so, continue to improve the product, the night of the product, the news, more functionality, people are living in it more frequently. So unless someone's 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. So, first, our 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 you expect the commercial real estate market to have on CoStar Suite?
Yes. So I think that the big takeaway is that 1st 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, began to continue to improve.
And one of the things that one of the considerations is that we have this, the CoStar sales force is selling both LoopNet and CoStar. So you can get you could get sales force productivity climbing, while you have one of those 2 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 come in with 100 of 1,000,000,000 of dollars to invest and look for dislocation.
People continue to return renew leases, 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 do optimistic about it. Also remember, we're adding more and more to CoStar. So you'll be seeing 10x 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 in lending solutions. So it's growing, it's strong, 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 changed
it up on you for 20 years. We did these things in the morning. We switched to the evening and it could take a little while to catch up.
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 Q1, it sounded like January 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 they had started out at 3 months, now they're moving more to 6 months.
I was hoping to have to get a better picture of where signature ads are headed.
Yes, that's correct. They started 3 months, they've gone to 6 months and that's basically because we invest a fair amount upfront and bring them up online. And it takes more than 3 months to lease a $100,000,000 building or to sell a large property like that. Scott, do you have specific numbers on the movement? I mean, it's small, but
Yes. Yes. As far as the like 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 on the signature ads blended across the different tiers is about 7 $50 for those ads compared to the premium listers, which are somewhere in the low to mid-60s per ad. So we're overall blended around $70 to $75 bill on the ad with the mix.
So still seeing good positive pricing generation and pricing momentum on the Signature, Ed.
And Bill, if we were to look out over the next 5 years, I actually feel that those that $700 price point could move into the 1,000 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 to get value. And I'm very bullish on the value we're delivering our advertisers. I think we're delivering amazing value to 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 lot a good story there for 5 years plus.
Your next question comes from the line of Ryan Tomulisso from KBW. Your line is open.
Hi, good evening everyone. Thanks for taking the question. I wanted to hone in on Apartments dotcom. 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?
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 a 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 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 a new sector 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.
Yes, thanks.
So you started talking about Good evening, Sterling.
Good evening. And I'm glad I
was worried as I got to the 20th page.
I was worried as I got
to the 20th page, there would be feedback.
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 and even drive higher margins than what you may have thought 6 9 months ago because of how effective this has been through this environment?
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 100,000,000 people have now just learned what Zoom is and FaceTime and GoToMeeting and WebEx. And so 100,000,000 people who before were complete Luddites are now well versed in digital and video communication.
So our ability train, onboard, support, grow our accounts very cost effectively, I think is really enhancing them. That's a positive that's come out of this, but I do think there'll still be a return, there'll still be a need for face to face, but dramatically less. So, 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 Cartolossi from Jefferies. Your line is open.
Hi, 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 10x deal was interesting and that you haven't played in that market before. What other types of businesses where you look at?
Any specific criteria from a growth perspective or end market or product type? Thank you.
Well, I think one of the challenges is be careful not to say anything. So, that's probably the hardest thing is not answering. 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 with 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 sunk costs and we'll add value to their business. That could be distribution channel, data, software, marketing, any number of things. So example of 10x, 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, that we're not going to stray terribly far from like there's no need to stray 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 be more like the past. I know I've been waiting for the first phone call. We raised the first question on the call. 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 will be answering the question, what are you going to 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 earning calls. It may take 10 earnings calls. But we're looking for the right deal, the right value with low risk and with us prepared to, do the right integration execution. So that will be patient and it will be related and we'll have more than 2 or 3 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.
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 in LoopNet Signature. So you mentioned the tenant data, just if you could be more specific about how granular you get and obviously have a broad wealth of data throughout Suite. So I would just love more detail on the data informing the targeting and retargeting.
Sure. I think I go into painful detail there, but just give you a couple of examples. So we can look at any particular cluster of buildings in the United States by property type and say office in Tysys 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 tend to lease in Tysons Corner, but also tenants in Boston tend to shift to Tysons Corner a little bit less going from Reston Tysons Corner. Shockingly, some from Bethesda over to Tyson's 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. And 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 in Tysys Corner, we can look at other people that looked at that same property, what other buildings they looked at and the way Amazon does to then invest in retargeting against people that either looked at the subject building to sink in frequency or we may use a collaborative filtered property to bring in bring someone from a building that would 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 10x. 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 it's working like a rock star right now. I'm very, very happy with the 600% increase in frequency we've delivered to our silver and our diamond and platinum advertisers in LoopNet over the last quarter. That is real value they're going to see and it really drives their brands home to their target. So, and it's sort of
fun to do. We have
a bunch of folks that enjoy doing that. A couple of wonks over here.
Your next question comes from the line of Andrew Jeffries from SunTrust. Your line is open.
Hey, guys. I appreciate
you taking the question. Thank you. Andy, maybe 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-one hundred unit apartment market is being you implied a $10,000,000,000 TAM. I think when you add up these marketplaces TAMs, they're bigger.
You might argue how many times bigger than Suite, but bigger than Suite and clearly have these countercyclical or 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. It's our source of revenue doesn't get more and more diversified between CRE marketplace, multifamily marketplace, some land marketplace, biz buy sell marketplace and other marketplaces we may enter. So I would not 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 Q4 and in the Q1, 3rd, Q4 and Q1. So in the 3rd, Q4, 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 3 or 4 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 them Mayfair information, but it's showing them the whole civilized world and their terminal eventually, right?
I think it will change 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 I think is a stressor on the business right now is not the market, is not the it's just it's the fact that our sales force over the last 5 or 6 years hasn't grown much.
We have roughly the same size 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.
Quick question, follow-up on LoopNet. Follow-up on LoopNet, that was the business of yours that we struggled most in trying to figure out what would happen in the 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 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 spreads are wider. On the other hand, you have a much stronger shift to 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 getting 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 those down and up arrows?
And then I'll ask again a question I 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, etcetera? Thanks.
Yes. So LoopNet is 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're going to actually pick up that business over in the 10x side. So you'll pay us differently, but we'll monetize the transaction.
Really the value we're delivering is the digital marketplace, but you're going to monetize it over on 10x. 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 $200,000,000 building, no one wants crowded and elevator and go up and down your 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 dotcom was it's an education thing and it's a size of Salesforce thing. So Apartments dotcom had a much bigger Salesforce 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 in the 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 in 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 for it 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 and Company. Your line is open.
Hey, good evening. It's actually Kyle Peterson on for Mayank. Thanks for taking the question. Just wanted to drill down the SCR business. It's a good sign.
It seems like the trends in 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?
Yes. So the one of the first things 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 $100,000,000 property and STR is costing you a couple of $1,000 a year.
So it's the you don't when you discover your loss in the woods, that's not the time you throw out your compass. So that's a critical fact. Secondly, some independent owners, this will be too much for them, sustained low occupancy levels will break their ability to keep their properties. There's 1,000,000,000 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 SDR. So we're getting a little counter cyclical going on there.
We anticipate that we will lose some of those independents. Bad debt is coming up a little bit, some of those small independents. But there may well be significantly more revenue on the 10x side as we pick up that business in other forms elsewhere in our business. Longer term, I think we have a really straightforward a really straightforward opportunity to provide some real software value to the industry, lenders, investors, operators, REITs by integrating the STR content into CoStar. SDR's technology magic for the 1st decades of its life were benchmarking and the ability to keep the data anonymized and secure and give 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 and L benchmarking to forwardcasting 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. SDR did a really great job at selling into the hotels themselves, but there's 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 bunch of drivers there.
And I think all of us, our investors, our analysts and our staff are pleasantly surprised that the fact that STR has actually been so resilient in unprecedented economic headwind. So hats off to the team at SDR, Amanda Hite, Elizabeth and the whole team holding 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 did 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.
Yes. So, I had never had a context for a pandemic. So anything would surprise me.
Like what is everything else?
Everything was a surprise. So by far and away the biggest surprise was the mega empirical countercyclicality of Apartments dotcom. That was just amazing. And I don't think the selling activity is catch up. I think the management team Fred St.
Page, 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 this is new business they're winning. And I think they're just people in a world which they can't put this sign spinner in front of their apartment building productively or 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 30 unit community that never bought any solution for 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've spent 30 years looking closely at the deployment 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 that everything is growing. There's nothing I mean even STR is growing. And so the speed in 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. Thank you for taking the question. Can you talk about how the pricing for Apartments. Com changes when you're selling into the sub-one hundred 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 an apartment, a 10 unit apartment building in traditional methods versus the cost of marketing a 400 unit, apartment building 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 $700,000 $800 for a 130 unit community or for a midline ad, you might that price may come down to several $100 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.
And 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 a single family dwelling can be quite happy with the results they get at $2.95 in a month for $2.95 for a campaign that might last for 2 months or 3 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've joined us. Thank you for your confidence and we're getting to work deploying your capital responsibly in the best timeframe 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.