Consensus(US:CCSI)2024-05-09 00:00Revenue Performance - Revenues for the three months ended March 31, 2024, were $88,146 thousand, a decrease of $3,308 thousand or 4% compared to $91,454 thousand in the same period of 2023[203]. - The SoHo business experienced a decline of $5,300 thousand or 13%, while the corporate business saw an increase of $2,000 thousand or 4% during the same period[231]. Customer Metrics - Monthly churn rate for paying customer accounts was reported at 3.32% for the quarter, compared to 3.63% in the previous year[227]. - The company serves approximately 900 thousand customers across 46 countries, with top 10 customers contributing about 8% of total revenues[197]. Expenses - Sales and marketing expenses decreased by $4,335 thousand or 26% to $12,558 thousand, primarily due to a reduction in third-party advertising spend[206]. - General and administrative expenses decreased by $2,184 thousand or 10% to $18,968 thousand, attributed to lower professional fees and personnel-related expenses[208]. - Cost of revenues decreased by $460 thousand or 3% to $17,048 thousand, remaining consistent at 19% of total revenues[232]. - Research, development, and engineering costs remained stable at $1,905 thousand, representing 2% of total revenues[234]. Taxation - The effective tax rate increased to 27.3% for the three months ended March 31, 2024, compared to 24.9% in the same period of 2023[211]. - The effective tax rate is influenced by pre-tax income and various statutory tax rates across jurisdictions, with valuation allowances established for deferred tax assets[237]. - The company withheld 15,340 shares for tax obligations related to equity awards in Q1 2024, compared to 11,418 shares in Q1 2023[242]. Financing Activities - Interest expense for Q1 2024 was $6.2 million, down from $12.6 million in Q1 2023, primarily due to a $4.9 million gain from partial debt extinguishment[236]. - Net cash used in financing activities increased to $58.8 million in Q1 2024 from $9.6 million in Q1 2023, mainly due to senior notes repurchases[243]. - The company has authorized a debt repurchase program allowing for a reduction of up to $300.0 million in principal amount of senior notes, with $126.0 million already retired as of March 31, 2024[240]. Foreign Exchange and Translation Adjustments - Foreign exchange gain for Q1 2024 was $3.9 million, compared to a loss of $(0.9) million in Q1 2023, attributed to intra-entity balance translations[247]. - Cumulative translation adjustment loss for Q1 2024 was $(6.3) million, compared to a gain of $3.1 million in Q1 2023[12]. Risk Management - The company has not entered into interest rate hedging transactions, exposing it to potential adverse effects from future interest rate movements[245]. - The company’s cash and cash equivalents approximated fair value as of March 31, 2024, with no significant interest rate risk due to short maturities[9]. Internal Controls - There were no material changes in internal control over financial reporting during Q1 2024[250]. Future Outlook - The company anticipates growth through organic and opportunistic acquisitions to enhance its product offerings in the interoperability space[202].