Consensus Cloud Solutions Inc (CCSI) Q1 2025 Earnings Call Highlights: Strong Corporate Growth ...

GuruFocus News

Thu, May 8, 2025, 12:39 AM 4 min read

• Corporate Revenue: $54.3 million, a 5.6% summation from Q1 2024.

• Adjusted EBITDA Margin: 54.2%, exceeding expectations by 100 ground points.

• Free Cash Flow: $33.7 million, down from $35.8 cardinal successful Q1 2024.

• Debt Repurchase: $10 cardinal successful Q1, with an further $6 cardinal successful Q2.

• Total Debt: Reduced to astir $582 million.

• Corporate Customer Base: Approximately 60,000, up 9% year-over-year.

• Corporate ARPA: $307, a $3 summation sequentially, but a $10 alteration year-over-year.

• SoHo Revenue: $32.8 million, a 10.6% alteration from Q1 2024.

• Consolidated Revenue: $87.1 million, a 1.1% alteration from Q1 2024.

• Adjusted Net Income: $27 million, a 0.2% summation from Q1 2024.

• Adjusted EPS: $1.37, a 2.1% alteration from the anterior year.

• Q2 2025 Revenue Guidance: $85 cardinal to $89 million.

• Q2 2025 Adjusted EBITDA Guidance: $45 cardinal to $48 million.

• Q2 2025 Adjusted EPS Guidance: $1.31 to $1.42.

• Warning! GuruFocus has detected 6 Warning Signs with CCSI.

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Consensus Cloud Solutions Inc (NASDAQ:CCSI) exceeded its gross nonsubjective with a 5.6% maturation implicit Q1 2024, marking the champion year-over-year maturation successful 8 quarters connected a normalized basis.

• The institution achieved a robust 54.2% adjusted EBITDA margin, surpassing expectations.

• The firm transmission showed beardown show with grounds gross of $54.3 million, driven by accrued unreality fax consumption, precocious merchandise adoption, and caller lawsuit acquisition.

• The institution reported a 101% gross retention complaint for the firm channel, an betterment from the erstwhile year.

• CCSI successfully repurchased astir $10 cardinal of indebtedness successful Q1 and an further $6 cardinal successful Q2, reducing full outstanding indebtedness significantly.

• The SoHo transmission experienced a planned gross diminution of 10.6% year-over-year, reflecting strategical absorption connected optimizing profitability.

• Free currency travel for the 4th was $33.7 million, down from $35.8 cardinal successful Q1 2024 owed to accrued receivables and little revenues.

• Corporate ARPA decreased by $10 year-over-year, reflecting dynamics wrong the firm lawsuit portfolio.

• The institution anticipates imaginable humble headwinds to revenues successful Q3 and Q4 owed to economical slowdown concerns.

• Adjusted EPS was somewhat unfavorable compared to the anterior year, driven by higher stock number and different fiscal factors.

Q: Can you speech a small spot much astir maturation successful firm gross and the VA deployment? A: Johnny Hecker, Chief Revenue Officer, explained that firm maturation was driven by beardown usage crossed fax brands, adoption of precocious solutions, and caller lawsuit acquisitions. The VA deployment is progressing with the Federal Empire certification, unlocking caller opportunities and revitalizing stalled nationalist assemblage projects. However, important impacts are not expected successful 2025 owed to the dilatory authorities process.