Consensus Cloud Solutions (CCSI) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $87 million, down 0.9% year-over-year, with adjusted EBITDA of $44.4 million and adjusted EPS of $1.32, up 18.9% year-over-year.

• FY2024 revenue declined 3.4% to $350.4 million, while adjusted EBITDA rose 1% to $188.4 million and adjusted EPS increased 10.6% to $5.63.

• Corporate segment growth offset expected SoHo declines, with all key metrics finishing at the higher end of guidance.

• Free cash flow reached a record $88.3 million for 2024, up 13.7% from 2023.

• Significant reduction in outstanding debt and continued share repurchases.

Financial highlights

• Q4 adjusted EBITDA margin was 51.0%; FY2024 margin was 53.8%.

• Q4 net income was $25.8 million, up 20.8% year-over-year; full-year net income was $89.4 million, up 15.7%.

• Q4 free cash flow was $3.1 million, a turnaround from -$5.7 million in Q4'23.

• Q4'24 capex was $8 million; FY2024 capex was $33.4 million, 8% lower than 2023.

• Ended 2024 with $34 million in cash.

Outlook and guidance

• FY2025 revenue guidance: $343–$357 million; adjusted EBITDA: $179–$190 million; adjusted EPS: $5.03–$5.42.

• Q1 2025 revenue guidance: $85–$89 million; adjusted EBITDA: $44.8–$47.8 million; adjusted EPS: $1.26–$1.36.

• Corporate revenue expected to grow 4.5%–8.5% in 2025; SoHo revenue to decline 7.5%–11.5%.

• Adjusted EBITDA margin guidance for 2025: 52.2%–53.2%.

• Corporate revenue expected to grow 6–6.5% in 2025; SoHo revenue to decline 9.5%.