NASDAQ$CCSI

Consensus Cloud Solutions Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported record GAAP net income/EPS and non-GAAP net income/non-GAAP EPS, driven by SoHo and Corporate revenues exceeding expectations and cost-saving measures.

Consensus Cloud Solutions reported a revenue of $88.1 million for Q1 2024, a decrease of 3.6% compared to Q1 2023. However, the company achieved record GAAP net income and EPS, along with strong Adjusted EBITDA margin and free cash flow growth.

  • Q1 revenues decreased by 3.6% year-over-year to $88.1 million.
  • GAAP net income increased to $26.4 million, with GAAP EPS increasing to $1.37.
  • Adjusted EBITDA increased to $48.1 million, with an Adjusted EBITDA margin of 54.5%.
  • Free cash flow increased by 21.6% year-over-year to $35.8 million.

Headline financials

Total Revenue

$88.1M

Previous: $91.5M-3.6%
EPS

$1.37

Previous: $1.10+24.5%
Corporate accounts

55.0K

No prior period
Corporate ARPA

$316.07

Previous: $315.76+0.1%
Corporate paid adds

4.0K

No prior period
Corporate churn

1.9%

Previous: 1.4%+40.1%
SoHo accounts

808.0K

No prior period
SoHo ARPA

$14.95

Previous: $15.10-1.0%
SoHo paid adds

64.0K

No prior period
SoHo churn

3.4%

Previous: 3.8%-9.0%
Capital Expenditures

-$8.92M

Previous: -$8.55M-4.4%
Free Cash Flow

$17.4M

Previous: $6.91M+152.5%
Net Income

$26.4M

Previous: $15.5M+70.6%
Operating Income

$37.7M

Previous: $34M+10.8%
Gross Profit

$71.1M

Previous: $73.9M-3.9%
Cash & Equivalents

$61.5M

Previous: $111M-44.7%
Total Assets

$621M

Previous: $663M-6.4%

Revenue & EPS history

Consensus Cloud · Revenue · Quarterly

$88.1M

Q1 2024-3.6%vs Q1 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Consensus Cloud · $92.8M total across 2 segments · Q2 2023

  • Corporate
    $50.4M+2.5%
  • SoHo
    $42.4M-3.6%

Forward guidance

Consensus Cloud Solutions reaffirmed its full-year 2024 guidance and released Q2 2024 guidance.

Tailwinds

  • Q2 2024 Revenue is expected to be between $84.5 million and $88.5 million.
  • Q2 2024 Adjusted EBITDA is expected to be between $46.0 million and $49.0 million.
  • Q2 2024 Adjusted non-GAAP earnings per diluted share is expected to be between $1.30 and $1.36.
  • Full year 2024 Revenue is expected to be between $338 million and $353 million.
  • Full year 2024 Adjusted EBITDA is expected to be between $182 million and $194 million.

Headwinds

  • The company is unable to provide a reconciliation of non-GAAP measures to comparable GAAP measures without unreasonable effort due to the uncertainty of predicting certain items.
  • Guidance is provided on a non-GAAP basis only.
  • Adjusted non-GAAP earnings per diluted share excludes share-based compensation, amortization of acquired intangibles, and certain gains or costs related to non-routine and other matters that are nonrecurring, in each case net of tax.
  • The non-GAAP effective tax rate for Q2 2024 is expected to be between 20.5% and 22.5%.
  • The company's ability to grow fax revenues, profitability and cash flows is subject to numerous assumptions, risks and uncertainties.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.5%

Avg return

Earnings day

+2.7%

Avg return

5 days after

-3.4%

Avg return

30 days after

71%

15 / 21 earnings

Positive

+37.8%

Q1 2024

Best reaction

-17.8%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.9%+1.2%+18.3%
Q4 2025+6.9%+30.6%+32.7%
Q3 2025-15.7%-18.8%-24.6%
Q1 2025+0.1%+4.0%+2.0%
Q3 2024-5.9%-5.0%-5.9%
Q2 2024+4.0%+4.6%+18.8%
Q1 2024+37.8%+48.7%+41.8%
Q4 2023-17.8%-11.6%-28.6%
Q3 2023-7.1%+4.7%+12.9%
Q2 2023+1.5%+2.5%-14.5%
Q1 2023+0.4%-8.4%-1.1%
Q4 2022-2.3%-27.5%-50.0%
Q3 2022-3.2%+6.3%-4.0%
Q2 2022+2.7%+4.9%-3.5%
Q1 2021+1.1%+1.7%-14.8%
Q1 2022+1.1%+1.7%-14.8%
Q4 2019+1.9%+1.3%-15.6%
Q2 2021+1.9%+1.3%-15.6%
Q4 2021+9.0%+9.5%+9.5%
Q3 2021+5.0%+2.8%-7.7%
Q4 2020+5.0%+2.8%-7.7%
Q3 2020

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