Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) today reported
financial results for the second quarter of 2023.
“Our Go-to-Market alignment initiated in Q1 has been designed to
mirror the buying practices of prospective customers. This
approach, which has gained significant traction with our customer
facing teams, has the potential of shortening the elongated sales
cycle which is a head wind to signing deals. This quarter has
delivered our first contracted Clarity client, a major provider of
prior authorization services to the healthcare industry. I am also
pleased that the Veterans Administration completed the
implementation of ECFax at 10 sites across 40 of its facilities.
Our SOHO price increase initiative was completed in Q2 with results
in line with our expectations. This quarter we ended with cash on
hand of $112 million, which is a record balance,” said Scott
Turicchi, CEO of Consensus.
SECOND QUARTER UNAUDITED 2023
HIGHLIGHTS
Q2 2023 GAAP quarterly revenues increased by $1.7 million or
1.8% to $92.8 million compared with $91.1 million for Q2 2022. Our
growth was primarily due to an increase of $1.5 million or 3.1% in
our Corporate business and an increase of $0.2 million or 0.5% in
our SoHo business.
GAAP net income (1) decreased to $21.1 million in Q2 2023
compared to $21.9 million for Q2 2022. The decrease is primarily
due to increased employee related expenses of $2.7 million;
partially offset by higher revenues.
GAAP net income per diluted share (1) decreased to $1.07 in Q2
2023 compared to $1.10 for Q2 2022. The decrease is related to the
items discussed above; partially offset by a reduction in shares
outstanding in connection with our share repurchase program.
Adjusted EBITDA (3)(4) for Q2 2023 of $47.7 million is
unfavorable compared to Q2 2022 of $50.0 million. The decrease is
related to the items discussed above. Adjusted non-GAAP earnings
per diluted share (1)(2)(3) for the quarter decreased to $1.36 or
5.6% compared to $1.44 for Q2 2022. The decrease is related to the
items discussed above.
Consensus ended the quarter with $112.0 million in cash and cash
equivalents after cash outlays related to interest expense payments
of $25.3 million (occurring in Q2 and Q4), $10.1 million in capital
expenditures and $2.0 million in repurchases of common stock.
Key financial results from operations for Q2 2023 versus Q2 2022
are set forth in the following table. Reconciliations of Adjusted
non-GAAP net income, Adjusted non-GAAP earnings per diluted share
and Adjusted EBITDA to their nearest comparable GAAP financial
measures accompany this press release.
(Unaudited, in thousands except per
share amounts and percentages)
Favorable /
(Unfavorable)
Q2 2023
Q2 2022
Change
GAAP revenues
$
92,792
$
91,115
1.8
%
GAAP net income (1)
$
21,058
$
21,921
(3.9
)%
GAAP net income per diluted share
(1)
$
1.07
$
1.10
(2.7
)%
Adjusted non-GAAP net income
(1)(2)
$
26,732
$
28,792
(7.2
)%
Adjusted non-GAAP earnings per diluted
share (1)(2)(3)
$
1.36
$
1.44
(5.6
)%
Adjusted EBITDA (3)(4)
$
47,670
$
50,031
(4.7
)%
Adjusted EBITDA margin (3)
51.4
%
54.9
%
(3.5
) pts
Notes:
(1)
The estimated GAAP effective tax rates
were approximately 22.7% for Q2 2023 and 26.4% for Q2 2022. The
estimated non-GAAP effective tax rates were approximately 18.5% for
Q2 2023 and 21.2% for Q2 2022.
(2)
Adjusted non-GAAP net income and Adjusted
non-GAAP earnings per diluted share excludes certain non-GAAP
items, as defined in the accompanying reconciliation of GAAP to
Adjusted non-GAAP Financial Measures, for the three months ended
June 30, 2023 and 2022. Such exclusions totaled $0.29 and $0.34 per
diluted share, respectively. Adjusted non-GAAP net income and
Adjusted non-GAAP earnings per diluted share are not meant as a
substitute for GAAP, but are presented solely for informational
purposes.
(3)
Adjusted EBITDA is defined as earnings
before interest expense; interest income; other (income) expense,
net; income tax expense; depreciation and amortization; and other
items used to reconcile GAAP income per diluted share to Adjusted
non-GAAP earnings per diluted share, as presented in the
Reconciliation of GAAP to Adjusted non-GAAP Financial Measures.
Adjusted EBITDA margin is defined as Adjusted EBITDA divided by
GAAP revenues. Adjusted EBITDA amounts and Adjusted EBITDA margin
are not meant as a substitute for GAAP, but is presented solely for
informational purposes.
(4)
See Net Income to Adjusted EBITDA
Reconciliation for the components of Consensus adjusted EBITDA.
REAFFIRMS 2023 GUIDANCE
(i)
We are reaffirming our full year 2023 guidance at the low end of
Revenue and Adjusted EBITDA and above the midpoint for Adjusted
non-GAAP earnings per diluted share.
The following table presents ranges for the Company’s 2023 full
year guidance (in millions, except per share amounts):
Low
Midpoint
High
Revenue
$
370
$
380
$
390
Adjusted EBITDA
$
192
$
199
$
206
Adjusted non-GAAP earnings per diluted
share (ii)(iii)
$
4.93
$
5.08
$
5.20
Notes:
(i)
Full year guidance is provided on a
non-GAAP basis only because certain information necessary to
calculate the most comparable GAAP measures is unavailable due to
the uncertainty and inherent difficulty of predicting the
occurrence and the future financial statement impact of certain
items. Therefore, as a result of the uncertainty and variability of
the nature and amount of future adjustments, which could be
significant, we are unable to provide a reconciliation of these
measures without unreasonable effort.
(ii)
Guidance for Adjusted non-GAAP earnings
per diluted share excludes share-based compensation, amortization
of acquired intangibles and the impact of unanticipated items, in
each case net of tax. The non-GAAP effective tax rate for 2023 is
expected to be between 19.7% and 21.7%.
(iii)
Guidance for Adjusted non-GAAP earnings
per diluted share range reflects an increase in depreciation and
amortization year-over-year resulting from increased capitalized
software placed into service between $5 million and $7 million over
the prior period.
About Consensus Cloud Solutions
Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) is one of the
world’s largest digital fax providers and a trusted global source
for the transformation, enhancement and secure exchange of digital
information. We leverage our 25-year history of success by
providing advanced data transformation solutions for regulated
industries such as healthcare, finance, insurance, real estate and
manufacturing, as well as technology for state and the federal
government. Our solutions consist of: cloud faxing; digital
signature; intelligent data extraction using natural language
processing and artificial intelligence; robotic process automation;
interoperability; workflow enhancement, and a powerful connectivity
and integration engine for healthcare providers. Our solutions can
be combined with managed services for optimal outcomes. For more
information about Consensus, visit consensus.com and follow
@ConsensusCS on X, formerly Twitter, to learn more.
“Safe Harbor” Statement Under the Private Securities
Litigation Reform Act of 1995: Certain statements in this press
release are “forward-looking statements” within the meaning of The
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management’s current
expectations or beliefs and are subject to numerous assumptions,
risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
These factors and uncertainties include, among other items: the
Company’s ability to grow fax revenues, profitability and cash
flows; the Company’s ability to identify, close and successfully
transition acquisitions; subscriber growth and retention;
variability of the Company’s revenue based on changing conditions
in particular industries and the economy generally; protection of
the Company’s proprietary technology or infringement by the Company
of intellectual property of others; the risk of adverse changes in
the U.S. or international regulatory environments, including but
not limited to the imposition or increase of taxes or
regulatory-related fees; general economic and political conditions,
including political tensions and war (such as the ongoing conflict
in Ukraine); and the numerous other factors set forth in Consensus’
filings with the Securities and Exchange Commission (“SEC”). For a
more detailed description of the risk factors and uncertainties
affecting Consensus, refer to the 2022 Annual Report on Form 10-K
filed by Consensus on March 31, 2023, and the other reports filed
by Consensus from time-to-time with the SEC, each of which is
available at www.sec.gov. The forward-looking statements provided
in this press release are subject to change. Although management’s
expectations may change after the date of this press release, the
Company undertakes no obligation to revise or update these
statements.
About non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use the
following Adjusted non-GAAP financial measures: Adjusted non-GAAP
net income, Adjusted non-GAAP earnings per diluted share, Adjusted
EBITDA, Adjusted EBITDA margin and free cash flow. The presentation
of this financial information is not intended to be considered in
isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP.
We use these Adjusted non-GAAP financial measures for financial
and operational decision-making and as a means to evaluate
period-to-period comparisons. Our management believes that these
Adjusted non-GAAP financial measures provide meaningful
supplemental information regarding our performance and liquidity by
excluding certain expenses and expenditures that may not be
indicative of our recurring core business operating results. We
believe that both management and investors benefit from referring
to these Adjusted non-GAAP financial measures in assessing our
performance and when planning, forecasting, and analyzing future
periods. These Adjusted non-GAAP financial measures also facilitate
management’s internal comparisons to our historical performance and
liquidity. We believe these Adjusted non-GAAP financial measures
are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision-making and (2) they are used by
our institutional investors and the analyst community to help them
analyze the health of our business.
For more information on these Adjusted non-GAAP financial
measures, please see the appropriate GAAP to Adjusted non-GAAP
reconciliation tables included within the attached Exhibit to this
Release.
CONSENSUS CLOUD SOLUTIONS,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED, IN THOUSANDS
EXCEPT SHARE AND PER SHARE DATA)
June 30, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
111,977
$
94,164
Accounts receivable, net of allowances of
$5,359 and $4,681, respectively
30,814
28,029
Prepaid expenses and other current
assets
13,043
14,335
Total current assets
155,834
136,528
Property and equipment, net
68,210
54,958
Operating lease right-of-use assets
7,252
7,875
Intangibles, net
47,091
49,156
Goodwill
347,855
346,585
Deferred income taxes
34,804
35,981
Other assets
6,037
2,816
TOTAL ASSETS
$
667,083
$
633,899
LIABILITIES AND STOCKHOLDERS’
DEFICIT
Accounts payable and accrued expenses
$
35,532
$
41,246
Income taxes payable, current
3,175
2,548
Deferred revenue, current
23,334
24,579
Operating lease liabilities, current
2,893
2,793
Due to Former Parent
36
156
Total current liabilities
64,970
71,322
Long-term debt
794,830
793,865
Deferred revenue, noncurrent
2,301
2,319
Operating lease liabilities,
noncurrent
13,026
13,877
Liability for uncertain tax positions
8,153
6,725
Deferred income taxes
951
728
Other long-term liabilities
298
324
TOTAL LIABILITIES
884,529
889,160
Commitments and contingencies
Common stock, $0.01 par value. Authorized
120,000,000; total issued is 20,176,291 and 20,105,545 shares and
total outstanding is 19,648,623 and 19,916,431 shares at June 30,
2023 and December 31, 2022, respectively
202
201
Treasury stock, at cost (527,668 and
189,114 shares at June 30, 2023 and December 31, 2022,
respectively)
(18,937
)
(7,596
)
Additional paid-in capital
32,182
21,650
Accumulated deficit
(213,892
)
(250,408
)
Accumulated other comprehensive loss
(17,001
)
(19,108
)
TOTAL STOCKHOLDERS’ DEFICIT
(217,446
)
(255,261
)
TOTAL LIABILITIES AND STOCKHOLDERS’
DEFICIT
$
667,083
$
633,899
CONSENSUS CLOUD SOLUTIONS,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(UNAUDITED, IN THOUSANDS
EXCEPT SHARE AND PER SHARE DATA)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenues
$
92,792
$
91,115
$
184,246
$
180,413
Cost of revenues (1)
17,246
15,587
34,754
30,692
Gross profit
75,546
75,528
149,492
149,721
Operating expenses:
Sales and marketing (1)
17,507
16,394
34,400
32,224
Research, development and engineering
(1)
1,765
2,741
3,669
5,077
General and administrative (1)
17,432
15,816
38,584
33,185
Total operating expenses
36,704
34,951
76,653
70,486
Income from operations
38,842
40,577
72,839
79,235
Interest expense
(12,817
)
(12,359
)
(25,383
)
(25,632
)
Interest income
661
—
665
—
Other (expense) income, net
568
1,577
(280
)
1,750
Income before income taxes
27,254
29,795
47,841
55,353
Income tax expense
6,196
7,874
11,325
14,912
Net income
$
21,058
$
21,921
$
36,516
$
40,441
Net income per common share:
Basic
$
1.07
$
1.10
$
1.85
$
2.02
Diluted
$
1.07
$
1.10
$
1.85
$
2.02
Weighted average shares outstanding:
Basic
19,654,922
19,928,316
19,750,570
19,924,864
Diluted
19,662,201
19,968,340
19,772,898
20,002,103
(1) Includes share-based compensation
expense as follows:
Cost of revenues
$
334
$
216
$
630
$
439
Sales and marketing
387
270
759
543
Research, development and engineering
52
340
92
696
General and administrative
3,890
4,097
8,322
8,648
Total
$
4,663
$
4,923
$
9,803
$
10,326
CONSENSUS CLOUD SOLUTIONS,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED, IN
THOUSANDS)
Six Months Ended June
30,
2023
2022
Cash flows from operating activities:
Net income
$
36,516
$
40,441
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
8,689
7,564
Amortization of financing costs and
discounts
1,004
901
Non-cash operating lease costs
874
787
Share-based compensation
9,803
10,326
Provision for doubtful accounts
3,080
191
Deferred income taxes, net
2,036
(2,435
)
Changes in operating assets and
liabilities:
Decrease (increase) in:
Accounts receivable
(5,852
)
(4,280
)
Prepaid expenses and other current
assets
1,237
(37
)
Other assets
780
(279
)
Increase (decrease) in:
Accounts payable and accrued expenses
(5,829
)
(1,857
)
Income taxes payable
651
(6
)
Deferred revenue
(1,173
)
1,681
Operating lease liabilities
(1,121
)
(939
)
Liability for uncertain tax positions
1,428
1,458
Other liabilities
(31
)
(1,310
)
Net cash provided by operating
activities
52,092
52,206
Cash flows from investing activities:
Purchases of property and equipment
(18,675
)
(13,744
)
Acquisition of businesses, net of cash
received
—
(14,355
)
Purchase of investments
(4,000
)
—
Purchases of intangible assets
—
(1,000
)
Net cash used in investing activities
(22,675
)
(29,099
)
Cash flows from financing activities:
Debt issuance costs
—
(232
)
Proceeds from the issuance of common stock
under employee stock purchase plan
871
631
Repurchase of common stock
(11,244
)
(7,596
)
Taxes paid related to net share
settlement
(1,175
)
(1,590
)
Net cash used in financing activities
(11,548
)
(8,787
)
Effect of exchange rate changes on cash
and cash equivalents
(56
)
(4,806
)
Net change in cash and cash
equivalents
17,813
9,514
Cash and cash equivalents at beginning of
period
94,164
66,778
Cash and cash equivalents at end of
period
$
111,977
$
76,292
CONSENSUS CLOUD SOLUTIONS,
INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO
ADJUSTED NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS,
EXCEPT SHARE AND PER SHARE AMOUNTS)
The following tables set forth
reconciliations regarding certain non-GAAP measures for the three
months ended June 30, 2023 and 2022 to the most closely comparable
GAAP measure.
Three Months Ended June
30,
2023
Per Diluted Share
2022
Per Diluted Share
Net income
$
21,058
$
1.07
$
21,921
$
1.10
Plus:
Share-based compensation (1)
4,187
0.21
4,288
0.21
Amortization (2)
732
0.04
785
0.04
Spin-off related costs (3)
18
—
732
0.04
Non-income related sales tax (4)
(659
)
(0.03
)
(349
)
(0.02
)
Acquisition related integration costs
(5)
—
—
149
0.01
Intra-entity transfer (6)
1,186
0.06
1,266
0.06
Other (7)
210
0.01
—
—
Adjusted non-GAAP net income
$
26,732
$
1.36
$
28,792
$
1.44
Non-GAAP Financial Measures
To supplement its unaudited consolidated financial statements,
the Company uses the following non-GAAP financial measures:
Adjusted EBITDA, Adjusted non-GAAP Net Income and Adjusted non-GAAP
Diluted EPS (collectively the “non-GAAP financial measures”). The
presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
U.S. GAAP. The Company uses these non-GAAP financial measures for
financial and operational decision making and as a means to
evaluate period-to-period comparisons. The Company believes that
they provide useful information about core operating results,
enhance the overall understanding of past financial performance and
future prospects, and allow for greater transparency with respect
to key metrics used by management in its financial and operational
decision making.
(1) Share-based compensation. The Company excludes stock-based
compensation because it is non-cash in nature and because the
Company believes that the non-GAAP financial measures excluding
this item provides meaningful supplemental information regarding
the operational performance of the business. The Company further
believes this measure is useful to investors in that it allows for
greater transparency to certain line items in its financial
statements. In addition, excluding this item from the non-GAAP
measures facilitates comparisons to historical operating results
and comparisons to peers, many of which similarly exclude this
item.
(2) Amortization. The Company excludes amortization of patents
and acquired intangible assets because it is non-cash in nature and
because the Company believes that the non-GAAP financial measures
excluding this item provides meaningful supplemental information
regarding the operational performance of the business. In addition,
excluding this item from the non-GAAP measures facilitates
comparisons to historical operating results and comparisons to
peers, many of which similarly exclude this item.
(3) Spin-off related costs. The Company excludes certain
expenses associated with the spin-off from Ziff Davis, Inc. The
Company believes that the non-GAAP financial measures excluding
this item provides meaningful supplemental information regarding
the operational performance of the business. In addition, excluding
this item from the non-GAAP measures facilitates comparisons to
historical operating results and comparisons to peers.
(4) Non-income related sales tax. The Company has excluded
certain non-income related sales taxes because this expense is
related to our historical sales tax exposure in applicable states
that have started to tax Software as a Service (“SaaS”) in recent
years. The Company is in the process of remediating the exposure
and doesn't believe it will be recurring. As a result, the Company
believes that the non-GAAP financial measures excluding this item
provide meaningful supplemental information regarding the
operational performance of the business.
(5) Acquisition related integration costs. The Company excludes
certain acquisition and related integration costs such as
adjustments to contingent consideration, severance, lease
terminations, retention bonuses and other acquisition-specific
items. The Company believes that the non-GAAP financial measures
excluding this item provide meaningful supplemental information
regarding operational performance. In addition, excluding this item
from the non-GAAP measures facilitates comparisons to historical
operating results and comparisons to peers, many of which similarly
exclude this item.
(6) Intra-entity transfers. The Company excludes certain effects
of intra-entity transfers to the extent the related tax asset or
liability in the financial statement is not recovered or settled,
respectively during the year. During December 2019, the Company
entered into an intra-entity asset transfer that resulted in the
recording of a tax benefit and related tax asset representing tax
deductible amounts to be realized in future years which is expected
to be recovered over a period of up to 20 years. The Company
believes that the non-GAAP financial measures excluding the
cumulative future unrealized benefit of the assets transferred and
including the tax benefit in the year of realization provides
meaningful supplemental information regarding operational
performance. In addition, excluding this item from the non-GAAP
measures facilitates comparisons to historical operating
results.
(7) Other. The Company excludes certain gains or costs related
to non-routine and other matters that are nonrecurring. The Company
believes that the non-GAAP financial measures excluding this item
provides meaningful supplemental information regarding the
operational performance of the business. In addition, excluding
this item from the non-GAAP measures facilitates comparisons to
historical operating results.
CONSENSUS CLOUD SOLUTIONS,
INC. AND SUBSIDIARIES
NET INCOME TO ADJUSTED EBITDA
RECONCILIATION
(UNAUDITED, IN
THOUSANDS)
The following table sets forth a
reconciliation of Adjusted EBITDA to net income, the most directly
comparable GAAP financial measure.
Three Months Ended June
30,
2023
2022
Net income
$
21,058
$
21,921
Plus:
Interest expense
12,817
12,359
Interest income
(661
)
—
Other expense (income), net
(568
)
(1,577
)
Income tax expense
6,196
7,874
Depreciation and amortization
4,344
3,858
EBITDA:
Plus:
Share-based compensation
4,663
4,923
Spin-off related costs
28
995
Non-income related sales tax
(484
)
(526
)
Acquisition related costs
—
204
Other
277
—
Adjusted EBITDA
$
47,670
$
50,031
Adjusted EBITDA as calculated above represents earnings before
interest expense, interest income, other expense (income), net,
income tax and depreciation and amortization and the items used to
reconcile GAAP to Adjusted non-GAAP financial measures, including
(1) share-based compensation; (2) spin-off related costs; (3)
non-income related sales tax; (4) acquisition related costs; and
(5) other nonrecurring costs. We disclose Adjusted EBITDA as a
supplemental non-GAAP financial performance measure as we believe
it is a useful metric by which to compare the performance of our
business from period to period. We understand that measures similar
to Adjusted EBITDA are broadly used by analysts, rating agencies
and investors in assessing our performance. Accordingly, we believe
that the presentation of Adjusted EBITDA provides useful
information to investors.
Adjusted EBITDA is not in accordance with, or an alternative to,
net income, and may be different from non-GAAP measures used by
other companies. In addition, Adjusted EBITDA is not based on any
comprehensive set of accounting rules or principles. This Adjusted
non-GAAP measure has limitations in that it does not reflect all of
the amounts associated with the Company’s results of operations
determined in accordance with GAAP.
CONSENSUS CLOUD SOLUTIONS,
INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL
MEASURES
(UNAUDITED, IN
THOUSANDS)
Q1
Q2 (1)
Q3
Q4 (1)
YTD
2023
Net cash provided by operating
activities
$
37,971
$
14,121
$
—
$
—
$
52,092
Less: Purchases of property and
equipment
(8,548
)
(10,127
)
—
—
(18,675
)
Free cash flows
$
29,423
$
3,994
$
—
$
—
$
33,417
Q1
Q2 (1)
Q3
Q4 (1)
YTD
2022
Net cash provided by operating activities
(1)
$
49,908
$
2,298
$
37,066
$
(6,123
)
$
83,149
Less: Purchases of property and
equipment
(6,915
)
(6,829
)
(7,316
)
(8,985
)
(30,045
)
Free cash flows
$
42,993
$
(4,531
)
$
29,750
$
(15,108
)
$
53,104
(1) Net cash provided by operating
activities during the second quarter and fourth quarter was
impacted by cash outlays related to interest expense payments of
approximately $26 million (occurring in Q2 and Q4) and other
significant payments.
The Company discloses free cash flows as supplemental non-GAAP
financial performance measure, as it believes it is a useful metric
by which to compare the performance of its business from period to
period. The Company also understands that this non-GAAP measure is
broadly used by analysts, rating agencies and investors in
assessing the Company’s performance. Accordingly, the Company
believes that the presentation of this non-GAAP financial measure
provides useful information to investors.
Free cash flows is not in accordance with, or an alternative to,
Cash Flows from Operating Activities, and may be different from
non-GAAP measures with similar or even identical names used by
other companies. In addition, the non-GAAP measure is not based on
any comprehensive set of accounting rules or principles. This
non-GAAP measure has limitations in that it does not reflect all of
the amounts associated with the Company’s results of operations
determined in accordance with GAAP.
Key Performance Metrics (Unaudited)
The following table sets forth certain key operating metrics for
Consensus for the three months ended June 30, 2023 and 2022 (in
thousands, except for percentages):
Three Months Ended June
30,
2023
2022
Corporate revenue
$
50,361
$
48,867
Corporate customer accounts (1)
54
46
Corporate Average Revenue per Customer
Account (“ARPA”) (2)
$
316.55
$
354.99
Corporate paid adds (3)
3
4
Corporate monthly account churn (4)
1.26
%
1.88
%
SoHo revenue
$
42,429
$
42,228
SoHo customer accounts (1)
889
1,002
SoHo ARPA (2)
$
15.69
$
13.87
SoHo paid adds (3)
74
96
SoHo monthly account churn (4)
3.57
%
3.87
%
(1) Consensus customers are defined as
paying Corporate and SoHo customer accounts.
(2) Represents a monthly ARPA for the
quarter or year calculated as follows. Monthly ARPA on a quarterly
basis is calculated using our standard convention of dividing
revenue for the quarter by the average of the quarter’s beginning
and ending customer base and dividing that amount by 3 months.
Consensus believes ARPA provides investors an understanding of the
average monthly revenues we recognize per account associated within
Consensus’ customer base. As ARPA varies based on fixed
subscription fee and variable usage components, Consensus believes
it can serve as a measure by which investors can evaluate trends in
the types of services, levels of services and the usage levels of
those services across Consensus’ customers.
(3) Paid Adds represents paying new
Consensus customer accounts added during the annual period.
(4) Monthly churn is defined as a
Consensus paying customer accounts that cancelled its services
during the period divided by the average number customers over the
period. This measure is calculated monthly and expressed as an
average over the applicable period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230808648419/en/
Laura Hinson Consensus Cloud Solutions, Inc 844-211-1711
investor@consensus.com
Concensus Cloud Solutions (NASDAQ:CCSI)
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