Consensus Cloud Solutions, Inc. ( (CCSI) ) has released its Q3 earnings. Here is a breakdown of the information Consensus Cloud Solutions, Inc. presented to its investors.
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Consensus Cloud Solutions, Inc., listed on NASDAQ as CCSI, is a leading provider of digital cloud fax technology and secure data exchange solutions, catering primarily to regulated industries such as healthcare, public sector, and financial services. The company leverages artificial intelligence to optimize digital information workflows and ensure compliance standards.
Consensus Cloud Solutions reported a decrease in third-quarter revenues for 2024, totaling $87.8 million, a 3.1% decline compared to the same period in 2023. The decrease was driven by a significant drop in the Small Office Home Office (SoHo) segment, although this was partially offset by growth in corporate revenues. Despite the revenue decline, the company managed to reduce its debt by an additional $31 million, moving closer to its leverage goals.
Key financial metrics for Q3 2024 showed a decrease in net income to $21.1 million, down from $24.0 million in Q3 2023, primarily impacted by foreign exchange revaluation. Earnings per diluted share also fell to $1.09 from $1.22. However, the adjusted EBITDA margin saw an improvement, rising to 53.5% from 52.5% in the previous year. The company’s free cash flow decreased to $33.6 million from $49.9 million, largely due to the absence of one-time tax benefits seen in the prior year.
Looking ahead, Consensus Cloud Solutions has reaffirmed its full-year 2024 guidance, maintaining a cautious yet optimistic outlook. The company continues to focus on debt reduction and strategic investments, positioning itself for sustained growth in digital fax and cloud solutions.
