Consensus Cloud Solutions (CCSI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $87.5 million, down 5.7–6% year-over-year, mainly due to a 15.7–16% decline in SoHo, partially offset by 2.7–3% growth in Corporate revenue.

• Adjusted EBITDA rose 2.9% to $49.1 million, with margin improving to 56.1% due to cost optimization.

• Net income increased to $23.9 million, with EPS at $1.24 (up 15.9%) and adjusted EPS at $1.45 (up 6.6%).

• Free cash flow surged to $15.8 million, up nearly 300% year-over-year.

• Debt reduction initiatives led to $155.7–$156 million in principal retired since November 2023, including $29.7 million in Q2.

Financial highlights

• Q2 2024 gross profit was $70.4 million, with a gross margin of 80.5%.

• Operating income for Q2 2024 was $39.9 million, up from $38.8 million in Q2 2023.

• Adjusted net income reached $28.1 million, a 4.9% increase from Q2 2023.

• Net cash from operations was $24.4 million, up 72.5% year-over-year.

• Cash and cash equivalents were $49–$49.2 million at quarter end.

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at $338–$353 million (midpoint $345 million).

• Adjusted EBITDA guidance maintained at $182–$194 million (midpoint $188 million).

• Adjusted EPS guidance raised to $5.45–$5.55 (midpoint $5.50).

• Q3 2024 guidance: revenue $83.5–$87.5 million, Adjusted EBITDA $44.5–$47.5 million, Adjusted EPS $1.25–$1.35.