close
close

Consensus Cloud Solutions Inc (CCSI) reports strong earnings for the first quarter of 2024, which represents excellent results for analysts…

  • Income: $88.1 million, down 3.6% year over year, above estimates of $87.39 million.

  • GAAP net income: Up to $26.4 million, up 70.6% from Q1 2023, above estimates of $25.44 million.

  • EPS in line with accounting principles: It rose to $1.37, up 75.6% from $0.78 in Q1 2023.

  • Non-GAAP Adjusted Net Income: It increased to $29.8 million, an increase of 35.6% compared to the previous year.

  • Non-GAAP Adjusted EPS: It rose to $1.55, an increase of 40.9% from $1.10 in Q1 2023.

  • Free cash flow: Up 21.6% year over year to $35.8 million.

  • Adjusted EBITDA margin: An improvement to 54.5%, an increase of 6.1 percentage points compared to the previous year.

On May 8, 2024, Consensus Cloud Solutions Inc (NASDAQ:CCSI) announced its first quarter 2024 financial results, showing significant growth in net income and earnings per share. The company published its findings in an 8-K filing, which also included confirmed guidance for the remainder of the year.

Consensus Cloud Solutions Inc, a leading provider of secure information delivery services, operates primarily in the United States, offering a scalable Software-as-a-Service (SaaS) platform. The company specializes in the cloud fax industry and provides communications and digital signature solutions that facilitate secure and collaborative information exchange across borders.

Consensus Cloud Solutions Inc (CCSI) Reports Strong Q1 2024 Earnings, Beating Analyst ExpectationsConsensus Cloud Solutions Inc (CCSI) Reports Strong Q1 2024 Earnings, Beating Analyst Expectations

Consensus Cloud Solutions Inc (CCSI) Reports Strong Q1 2024 Earnings, Beating Analyst Expectations

Financial highlights and results

In the first quarter of 2024, CCSI reported a 3.6% decline in quarterly revenue to $88.1 million compared to $91.5 million in the first quarter of 2023. This decline was primarily due to a decline in its small home office business (SoHo), although partially offset by profits in the Corporate business segment. Despite the revenue decline, the company achieved record GAAP net income of $26.4 million, a significant increase from $15.5 million in the prior year, an increase of 70.6%. The increase in net profit resulted from higher operating revenues and gains from debt cancellation and currency revaluation.

The company also saw significant growth in GAAP net income per diluted share, which increased 75.6% to $1.37 in Q1 2024 from $0.78 in Q1 2023. Non-GAAP adjusted net income saw an increase to $29.8 million from $22.0 million, and adjusted net income -GAAP earnings per diluted share increased 40.9% to $1.55.

Strategic financial management

CCSI’s strategic capital allocation initiatives have been solid, with $63.5 million spent on debt repurchases and a modest amount on common stock repurchases. These actions effectively reduced the company’s net debt to EBITDA ratio to 3.2, representing progress towards a leverage ratio of less than 3x. The company ended the quarter with $61.5 million in cash and cash equivalents.

Moreover, the company’s free cash flow increased 21.6% to $35.8 million, reflecting strong operational efficiency and strong financial health. Adjusted EBITDA for the quarter was $48.1 million, compared to $44.2 million in the first quarter of 2023, with an adjusted EBITDA margin of 54.5%, indicating improved profitability.

Future prospects and guidelines

Looking ahead, CCSI reaffirmed its full-year 2024 guidance, expecting revenue of $338 million to $353 million and adjusted EBITDA of $182 million to $194 million. Non-GAAP adjusted earnings per diluted share are expected to be in the range of $5.08 to $5.31.

The company’s first quarter 2024 performance reflects not only its resilience in dealing with market challenges, but also its ability to capitalize on strategic growth opportunities. With a strong start to the year, CCSI is well positioned to achieve its financial goals and continue its streak of strong financial performance.

For more detailed information and to stay up to date with CCSI’s financial progress, visit GuruFocus.com.

Read the full publication on earnings of PLN 8,000. (here) from Consensus Cloud Solutions Inc for more details.

This article first appeared on GuruFocus.