Constellation Software (CSU) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 rose 20% year-over-year to $2,541 million, with 2% organic growth and 1% growth after FX adjustment.

• Net income attributable to common shareholders fell 28% to $164 million ($7.74 diluted EPS) from $227 million ($10.70 diluted EPS) in Q3 2023.

• Multiple acquisitions completed for $197 million in cash, with total consideration including deferred payments at $267 million.

• Quarterly dividend of $1.00 per share declared, payable January 10, 2025.

Financial highlights

• Nine-month revenue increased 21% to $7,363 million, primarily driven by acquisitions; organic growth was 3% (2% after FX adjustment).

• Cash flows from operations (CFO) for Q3 increased 1% to $517 million; nine-month CFO up 20% to $1,518 million.

• Free cash flow available to shareholders (FCFA2S) for Q3 decreased 2% to $362 million; nine-month FCFA2S up 19% to $990 million.

• Total assets at September 30, 2024 were $12,573 million, up from $10,866 million at December 31, 2023.

• Retained earnings increased to $2,657 million as of September 30, 2024.

Outlook and guidance

• Forward-looking statements caution significant risks and uncertainties may cause actual results to differ materially from projections.