Constellation Software (CSU) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 rose 21% year-over-year to $2,468 million, with 2% organic growth and 3% organic growth after FX adjustment.

• Net income attributable to common shareholders increased 71% to $177 million ($8.35 diluted EPS) from $103 million ($4.88 diluted EPS) in Q2 2023.

• Multiple acquisitions completed for $451 million in cash, with total consideration including deferred payments reaching $624 million.

• Declared a $1.00 per share dividend payable October 10, 2024.

Financial highlights

• Cash flows from operations grew 116% year-over-year to $265 million in Q2 2024.

• Free cash flow available to shareholders (FCFA2S) increased to $182 million from $14 million in Q2 2023.

• For the first six months of 2024, revenue was $4,822 million, up 22% from $3,958 million in the prior year period.

• Net income for the first six months was $282 million ($13.31 diluted EPS), up from $198 million ($9.32 diluted EPS) in 2023.

• Cash balance at June 30, 2024 was $1,873 million, up from $970 million a year earlier.

Outlook and guidance

• Management emphasizes significant risks and uncertainties in forward-looking statements, noting actual results may differ materially from projections.