Financial Data and Key Metrics Changes - The company reported consolidated revenue of $87.5 million for Q2 2024, a decrease of 5.3 million or 5.7% compared to Q2 2023, in line with expectations [21] - Adjusted EBITDA for Q2 2024 was $49.1 million, an increase of 1.4 million or 2.9% over Q2 2023, driven by cost structure optimization [21] - Adjusted EBITDA margin improved to 56.1%, up 4.7 percentage points from the prior year, exceeding expectations [21] - Adjusted net income was $28.1 million, an increase of 1.3 million or 4.9% over the prior year [21] - Adjusted EPS for Q2 2024 was $1.45, higher than the prior year by 6.6% or $0.09 [21] Business Line Data and Key Metrics Changes - Corporate business revenue reached a record $51.7 million, an increase of 1.4 million or 2.7% over the prior year [18] - SoHo business revenue was $35.8 million, a decrease of 6.7 million or 15.8% compared to the previous year [20] - Corporate ARPA was $310, down from $317 or 2% in the prior year, remaining stable within the $305 to $320 range [18] - SoHo ARPA was stable at $14.97, with a slight improvement in the cancellation rate to 3.4% sequentially [16][20] Market Data and Key Metrics Changes - The company added approximately 2,700 customers in Q2 2024, demonstrating the effectiveness of its e-commerce and SoHo upsell strategy [9] - The cancellation rate for corporate accounts increased to 2.29%, up 103 basis points year-over-year, primarily driven by new customers at the lower end of the customer continuum [10][18] - The public sector business, particularly the VA rollout, is progressing as planned, with expectations of over $2 million in revenue from the EC Fax program in 2024 [12] Company Strategy and Development Direction - The company aims to eliminate certain costs in the SoHo channel, pursue customer acquisition in the healthcare space, and improve overall cost structure to drive adjusted EBITDA margins [4] - There is a strong focus on cash generation and profitability, with plans to increase marketing spend by approximately $2 million in the second half of 2024 [16][42] - The company is committed to investing in the ongoing development of its cloud fax platform and enhancing its AI offering, Clarity [14] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic uncertainty and slow decision-making processes among customers due to limited IT resources [17] - There is no indication of improvement in the availability of IT talent to support more IT projects, which may affect deployment timelines [27] - The healthcare market shows mixed signals, with some hospitals performing well while others are struggling, impacting demand levels [36][37] Other Important Information - The company has repurchased approximately $156 million in debt since launching its bond repurchase program in November 2023 [7][22] - Free cash flow for Q2 2024 was $15.8 million, a 295% increase compared to the prior year [22] Q&A Session Summary Question: Thoughts on healthcare clients reducing friction in deployments - Management indicated no current indicators of clients finding the necessary talent for IT projects [27] Question: Deployment process at the VA and metrics - Management stated that the rollout is on track, with approximately 2,200 sites, but emphasized the complexity of measuring total opportunity [30][32] Question: Demand level from the hospital market - Management noted mixed demand, with some hospitals doing well while others are in distress, impacting overall demand [36][37] Question: Uptake rate of Clarity solutions - There is increased interest in Clarity, particularly in proof-of-concept engagements, but its revenue contribution is not material at this point [40]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number: 001-40750 Consensus Cloud Solutions, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Consensus Cloud Solutions, Inc. Reports Second Quarter 2024 Results Releases Third Quarter 2024 Guidance Raises Full Year 2024 Adjusted EPS Guidance LOS ANGELES -- Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) today reported financial results for the second quarter of 2024. "I am pleased with our Q2 performance. Corporate and SoHo revenues were ahead of expectations, which combined with a full quarter benefit of our cost saving measures, produced a net income margin of 27.3% and a strong Adjusted EBITDA ma ...

LOS ANGELES, June 27, 2024 /PRNewswire/ -- Consensus Cloud Solutions, Inc. (NASDAQ: CCSI), a global leader of digital cloud fax technology and trusted provider of interoperability solutions, has been named a 2024 CSO Award winner from Foundry's CSO. This prestigious honor is bestowed upon a select group of organizations that have implemented security projects and initiatives demonstrating outstanding business value and thought leadership. This award serves as the most recent testament to Consensus' goal of ...

Group Aims to Better Equip Organizations that Depend on Fax Communication with New Interoperability Standard LOS ANGELES, May 29, 2024 /PRNewswire/ -- Consensus Cloud Solutions, Inc. (NASDAQ: CCSI), a global leader of digital cloud fax technology and trusted provider of interoperability solutions, proudly announces that DirectTrust's Interoperable Secure Cloud Fax Consensus Body has elected Consensus Chief Technology Officer, Jeffrey Sullivan, as its Chairperson. Sullivan will steer the efforts of the Conse ...

Financial Data and Key Metrics Changes - Q1 2024 consolidated revenue was $88.1 million, a decrease of $3.3 million or 3.6% compared to Q1 2023, but better than expectations [50] - Adjusted EBITDA for Q1 2024 was $48.1 million, with a margin of 54.5%, an increase of 6 percentage points from the prior year [50][60] - Free cash flow for Q1 2024 was $35.8 million, representing a 21.6% increase compared to the prior year [51][60] Business Line Data and Key Metrics Changes - Corporate business revenue reached $51.4 million in Q1 2024, a 4% increase from $49.4 million in Q1 2023, marking a record quarter for this segment [45][49] - SOHO business revenue was $36.8 million, down from $42 million in the previous year, attributed to reduced advertising spend and a decrease in paid ads [62] - Advanced products accounted for 21% of new sales in Q1, driven by demand for Clarity and Unite, showing a healthy increase over Q4 [45][46] Market Data and Key Metrics Changes - The VA rollout is progressing as expected, with a goal of achieving a seven-digit contribution in 2024 [46] - Monthly customer churn for the corporate segment was 1.92%, with a trailing 12-month revenue retention rate of 98% [49] - The SOHO account base decreased from 831,000 to 800,000, slightly ahead of expectations [62] Company Strategy and Development Direction - The company aims to eliminate certain costs in the SOHO channel while pursuing customer acquisition primarily in the healthcare space for the corporate channel [42] - A focus on optimizing the overall cost structure to drive EBITDA margins above 54% is a key strategic goal [42] - The company is excited about the partnership with a leading revenue cycle management vendor, which will enhance market reach [19][63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing interest in the Clarity platform and its potential to generate new use cases [2][33] - The company noted that while there are ups and downs in the VA rollout, it is growing steadily [21] - Management highlighted that clients remain slow in decision-making and resource-constrained, which is not expected to change soon [64] Other Important Information - The company repurchased $63.5 million of debt in Q1 2024, bringing total repurchases to $126 million since the program's launch [60][67] - The company reaffirmed its full-year 2024 guidance, expecting revenue between $338 million and $353 million [75] Q&A Session Summary Question: Can you provide more color on the advanced products and their impact? - Management noted that advanced products made up 21% of new sales in Q1, indicating strong demand and a focused sales initiative [45][33] Question: What is the status of the VA partnership and its revenue contribution? - Management confirmed that the VA rollout is progressing as expected and contributing at the anticipated rate [21][22] Question: How is the corporate revenue growth expected to trend moving forward? - Management cautioned that one quarter does not establish a trend, and they will continue to monitor growth closely [79] Question: What are the expectations for marketing spend in Q2? - Management indicated that marketing spend would be lower in Q2 compared to Q1, which may impact net adds but will be offset by savings [80]

Our research, development and engineering costs consist primarily of personnel-related expenses. Our general and administrative costs consist primarily of personnel-related expenses (inclusive of share-based compensation), professional fees, depreciation and amortization and bad debt expense. The following table represents share-based compensation expense included in cost of revenues and operating expenses in the accompanying Condensed Consolidated Statements of Income for the three months ended March 31, 2 ...

"I am pleased with our Q1 performance. SoHo and Corporate revenues were ahead of expectations, which combined with our cost saving measures, produced a strong EBITDA margin of 54.5%. Our free cash flow was up more than 21% year over year, allowing us to end the quarter with $61.5 million of cash following a spend of $63.5 million on our debt repurchase program. Since the program began in November 2023, we have repurchased $126.0 million of debt and lowered our net debt-to-EBITDA ratio to 3.2, continuing tow ...

The leader in digital cloud fax technology will showcase how AI can be applied to fax for faster, more efficient healthcare workflowsLOS ANGELES, March 6, 2024 /PRNewswire/ -- Consensus Cloud Solutions, Inc. (NASDAQ: CCSI), a global leader of digital cloud fax technology and trusted provider of interoperability solutions, will highlight its innovative technology at HIMSS 2024 in Orlando from March 11-14 (Booth 3801).During the conference, staff will showcase Consensus' advanced solutions including eFax Corp ...

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Consensus Cloud Solutions, Inc. Delaware 87-1139414 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 700 S. Flower Street, 15th Floor, Los Angeles, California 90017, (323) 860-9200 (Address and telephone number of principal executive offices) Title of each class Trading Symbol(s) Na ...