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; all key metrics exceeded guidance.

• Adjusted EBITDA rose 2.9% to $49.1 million, with margin improving to 56.1% from 51.4% year-over-year, driven by cost optimization.

• Net income increased to $23.9 million, up 13.4% year-over-year, with EPS at $1.24 and adjusted EPS at $1.45, up 6.6%.

• Free cash flow surged to $15.8 million, up nearly 300% year-over-year, and cash balance at quarter-end was $49–$49.2 million.

• Strategic focus included cost reduction in SoHo marketing, corporate customer acquisition, cost structure optimization, and debt repurchase.

Financial highlights

• Q2 2024 consolidated revenue: $87.5 million, down 5.7% year-over-year.

• Adjusted EBITDA: $49.1 million (up 2.9% YoY), margin 56.1%.

• Adjusted net income: $28.1 million (up 4.9% YoY); adjusted EPS: $1.45 (up 6.6% YoY).

• Q2 free cash flow: $15.8 million, up 295–296% year-over-year; CapEx: $8.5–$8.6 million, down $1.6 million.

• Net income margin increased to 27.3%, up 4.6 points year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at $338–$353 million; adjusted EBITDA at $182–$194 million.

• Adjusted EPS guidance raised to $5.45–$5.55.

• Q3 2024 revenue expected at $83.5–$87.5 million; adjusted EBITDA $44.5–$47.5 million; adjusted EPS $1.25–$1.35.