Board Approves Debt Repurchase Program
Provides Q4 2023 Guidance
Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) today reported
financial results for the third quarter of 2023.
“While I am encouraged by a developing pipeline, we continue to
be affected by the continuing slow buying decisions, particularly
in the Healthcare Industry, amid labor shortages and inflationary
pressures. Notwithstanding this reality, we have managed our
margins within guidance and reported a record free cash flow
production in Q3 as well as another record quarter of cash of $156
million,” said Scott Turicchi, CEO of Consensus.
THIRD QUARTER UNAUDITED 2023
HIGHLIGHTS
Q3 2023 GAAP quarterly revenues decreased by $1.2 million or
1.3% to $90.6 million compared to $91.8 million for Q3 2022. This
decline was primarily due to a decrease of $2.7 million or 6.2% in
our SoHo business, (tracking to an expected 2% to 4% decrease on a
full-year basis); partially offset by an increase of $1.5 million
or 3.0% in our Corporate business.
GAAP net income (1) increased to $24.0 million in Q3 2023
compared to $15.4 million for Q3 2022. The increase is primarily
due to lower sales tax expenses.
GAAP net income per diluted share (1) increased to $1.22 or
58.4% in Q3 2023 compared to $0.77 for Q3 2022. The increase is
related to the items discussed above and a lower share count as a
result of share repurchases.
Adjusted EBITDA (3)(4) for Q3 2023 of $47.5 million declined
compared to Q3 2022 of $49.1 million primarily due to a decline in
revenues. Q3 2023 Adjusted EBITDA margin(3) of 52.5% is in-line
with our forecasted range of 50% - 55%. Adjusted non-GAAP earnings
per diluted share (1)(2)(3) for the quarter increased to $1.51 or
5.6% compared to $1.43 for Q3 2022 primarily due to a lower share
count as a result of the share repurchases and higher interest
income.
Consensus ended the quarter with a record $155.7 million in cash
and cash equivalents after cash outlays of $10.1 million in capital
expenditures and $2.5 million in repurchases of common stock during
the three months ended September 30, 2023 and $28.7 million in
capital expenditures and $13.7 million in repurchases of common
stock for the nine months ended September 30, 2023.
Key financial results from operations for Q3 2023 versus Q3 2022
are set forth in the following table. Reconciliations of non-GAAP
measures to comparable GAAP financial measures accompany this press
release.
(Unaudited, in thousands except per
share amounts and percentages)
Favorable /
(Unfavorable)
Q3 2023
Q3 2022
Change
GAAP revenues
$
90,562
$
91,777
(1.3)%
GAAP net income (1)
$
24,007
$
15,370
56.2%
GAAP net income per diluted share
(1)
$
1.22
$
0.77
58.4%
Adjusted non-GAAP net income
(1)(2)
$
29,721
$
28,529
4.2%
Adjusted non-GAAP earnings per diluted
share (1)(2)(3)
$
1.51
$
1.43
5.6%
Adjusted EBITDA (3)(4)
$
47,501
$
49,079
(3.2)%
Adjusted EBITDA margin (3)
52.5
%
53.5
%
(1.0) pts
Notes:
(1)
The estimated GAAP effective tax rates
were approximately 23.9% for Q3 2023 and 29.2% for Q3 2022. The
estimated non-GAAP effective tax rates were approximately 19.1% for
Q3 2023 and 20.9% for Q3 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. Such exclusions totaled $0.29
and $0.66 per diluted share, respectively, for the three months
ended September 30, 2023 and 2022. 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.
BOARD AUTHORIZES $300 MILLION DEBT
REPURCHASE PROGRAM
On November 9, 2023, the Board of Directors approved a debt
repurchase program, pursuant to which Consensus may reduce, through
redemptions, open market purchases, tender offers, privately
negotiated purchases or other retirements, a combination of the
outstanding principal balance of the 2026 Senior Notes and 2028
Senior Notes. The authorization permits an aggregate principal
amount reduction of up to $300 million and expires on November 9,
2026. The timing and amounts of purchases will be determined by the
Company, depending on market conditions and other factors it deems
relevant.
Q4 2023 GUIDANCE (i)
The following table presents ranges for the Company’s Q4 2023
guidance (in millions, except per share amounts):
Low
Midpoint
High
Revenue
$
87.5
$
89.0
$
90.5
Adjusted EBITDA
$
46.3
$
47.4
$
48.2
Adjusted non-GAAP earnings per diluted
share (ii)
$
1.15
$
1.17
$
1.19
Notes:
(i)
Quarterly 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)
Quarterly guidance for Adjusted non-GAAP
earnings per diluted share excludes share-based compensation,
amortization of acquired intangibles and certain gains or costs
related to non-routine and other matters that are nonrecurring, in
each case net of tax. The non-GAAP effective tax rate for 2023 is
expected to be between 19.1% and 20.1%.
COMPANY LEADERSHIP
UPDATE
On November 7, 2023, John Nebergall, Chief Operating Officer of
Consensus Cloud Solutions Inc. (“Company”), notified the Company
that effective December 31, 2023, he will step down from his
position as Chief Operating Officer of the Company. Upon stepping
down from such position, Mr. Nebergall will continue with the
Company as a strategic advisor. Johnny Hecker, currently the
Company’s EVP of Operations, will also be appointed as the
Company’s Chief Revenue Officer, effective as of January 1,
2024.
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)
September 30, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
155,682
$
94,164
Accounts receivable, net of allowances of
$5,629 and $4,681, respectively
29,727
28,029
Prepaid expenses and other current
assets
7,178
14,335
Total current assets
192,587
136,528
Property and equipment, net
75,210
54,958
Operating lease right-of-use assets
7,106
7,875
Intangibles, net
45,994
49,156
Goodwill
346,060
346,585
Deferred income taxes
33,927
35,981
Other assets
5,633
2,816
TOTAL ASSETS
$
706,517
$
633,899
LIABILITIES AND STOCKHOLDERS’
DEFICIT
Accounts payable and accrued expenses
$
52,854
$
41,402
Income taxes payable, current
6,966
2,548
Deferred revenue, current
22,373
24,579
Operating lease liabilities, current
2,870
2,793
Total current liabilities
85,063
71,322
Long-term debt
795,333
793,865
Deferred revenue, noncurrent
2,282
2,319
Operating lease liabilities,
noncurrent
12,848
13,877
Liability for uncertain tax positions
9,048
6,725
Deferred income taxes
938
728
Other long-term liabilities
293
324
TOTAL LIABILITIES
905,805
889,160
Commitments and contingencies
Common stock, $0.01 par value. Authorized
120,000,000; total issued is 20,182,262 and 20,105,545 shares and
total outstanding is 19,502,195 and 19,916,431 shares as of
September 30, 2023 and December 31, 2022, respectively
202
201
Treasury stock, at cost (680,067 and
189,114 shares as of September 30, 2023 and December 31, 2022,
respectively)
(22,728
)
(7,596
)
Additional paid-in capital
36,362
21,650
Accumulated deficit
(189,885
)
(250,408
)
Accumulated other comprehensive loss
(23,239
)
(19,108
)
TOTAL STOCKHOLDERS’ DEFICIT
(199,288
)
(255,261
)
TOTAL LIABILITIES AND STOCKHOLDERS’
DEFICIT
$
706,517
$
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
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Revenues
$
90,562
$
91,777
$
274,808
$
272,190
Cost of revenues (1)
16,853
15,419
51,607
46,111
Gross profit
73,709
76,358
223,201
226,079
Operating expenses:
Sales and marketing (1)
15,319
16,626
49,719
48,850
Research, development and engineering
(1)
1,677
3,236
5,346
8,313
General and administrative (1)
17,798
23,839
56,382
57,024
Total operating expenses
34,794
43,701
111,447
114,187
Income from operations
38,915
32,657
111,754
111,892
Interest expense
(12,615
)
(13,941
)
(37,998
)
(39,573
)
Interest income
1,519
—
2,184
—
Other income, net
3,725
2,992
3,445
4,742
Income before income taxes
31,544
21,708
79,385
77,061
Income tax expense
7,537
6,338
18,862
21,250
Net income
$
24,007
$
15,370
$
60,523
$
55,811
Net income per common share:
Basic
$
1.22
$
0.78
$
3.07
$
2.80
Diluted
$
1.22
$
0.77
$
3.07
$
2.79
Weighted average shares outstanding:
Basic
19,627,188
19,791,019
19,708,991
19,879,759
Diluted
19,647,855
19,873,138
19,730,765
19,958,624
(1) Includes share-based compensation
expense as follows:
Cost of revenues
$
309
$
219
$
939
$
658
Sales and marketing
375
269
1,134
812
Research, development and engineering
61
390
153
1,086
General and administrative
3,009
3,878
11,331
12,526
Total
$
3,754
$
4,756
$
13,557
$
15,082
CONSENSUS CLOUD SOLUTIONS,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED, IN
THOUSANDS)
Nine Months Ended September
30,
2023
2022
Cash flows from operating activities:
Net income
$
60,523
$
55,811
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
13,053
11,359
Amortization of financing costs and
discounts
1,526
1,391
Non-cash operating lease costs
1,304
1,130
Share-based compensation
13,557
15,082
Provision for doubtful accounts
4,409
(60
)
Deferred income taxes, net
2,029
(2,435
)
Other
30
—
Changes in operating assets and
liabilities:
Decrease (increase) in:
Accounts receivable
(6,126
)
(4,852
)
Prepaid expenses and other current
assets
7,144
(83
)
Other assets
1,182
(1,097
)
Increase (decrease) in:
Accounts payable and accrued expenses
10,210
19,991
Income taxes payable
4,615
(805
)
Deferred revenue
(2,088
)
(297
)
Operating lease liabilities
(1,578
)
(1,389
)
Liability for uncertain tax positions
2,323
2,174
Other liabilities
(34
)
(6,648
)
Net cash provided by operating
activities
112,079
89,272
Cash flows from investing activities:
Purchases of property and equipment
(28,725
)
(21,060
)
Acquisition of businesses, net of cash
received
—
(12,230
)
Purchase of investments
(4,000
)
—
Purchases of intangible assets
—
(1,000
)
Net cash used in investing activities
(32,725
)
(34,290
)
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
(13,716
)
(7,596
)
Taxes paid related to net share
settlement
(1,245
)
(1,698
)
Net cash used in financing activities
(14,090
)
(8,895
)
Effect of exchange rate changes on cash
and cash equivalents
(3,746
)
(9,182
)
Net change in cash and cash
equivalents
61,518
36,905
Cash and cash equivalents at beginning of
period
94,164
66,778
Cash and cash equivalents at end of
period
$
155,682
$
103,683
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 table sets forth the
reconciliation of net income to Adjusted non-GAAP net income for
the three months ended September 30, 2023 and 2022 with adjustments
presented on an after-tax basis:
Three Months Ended September
30,
2023
Per Diluted
Share
2022
Per Diluted
Share
Net income
$
24,007
$
1.22
$
15,370
$
0.77
Plus:
Share-based compensation (1)
3,451
0.18
4,596
0.23
Amortization (2)
762
0.04
813
0.04
Spin-off related costs (3)
—
—
128
0.01
Non-income related sales tax (4)
188
0.01
6,425
0.32
Acquisition related integration costs
(5)
—
—
220
0.01
Intra-entity transfer (6)
1,041
0.05
977
0.05
Other (8)
272
0.01
—
—
Adjusted non-GAAP net income
$
29,721
$
1.51
$
28,529
$
1.43
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 share-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 does not 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 September
30,
2023
2022
Net income
$
24,007
$
15,370
Plus:
Interest expense
12,615
13,941
Interest income
(1,519
)
—
Other income, net
(3,725
)
(2,992
)
Income tax expense
7,537
6,338
Depreciation and amortization
4,364
3,795
EBITDA:
Plus:
Share-based compensation
3,754
4,756
Spin-off related costs
—
157
Non-income related sales tax
110
7,423
Acquisition related integration costs
—
291
Other
358
—
Adjusted EBITDA
$
47,501
$
49,079
Adjusted EBITDA as calculated above represents earnings before
interest expense, interest income, other income, net, income tax
expense, 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 integration
costs; and (5) other nonrecurring costs. The Company discloses
Adjusted EBITDA as a 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 measures similar to Adjusted EBITDA are
broadly used by analysts, rating agencies and investors in
assessing our performance. Accordingly, the Company believes 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)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net cash provided by operating
activities
$
59,987
$
37,066
$
112,079
$
89,272
Less: Purchases of property and
equipment
(10,050
)
(7,316
)
(28,725
)
(21,060
)
Free cash flows
$
49,937
$
29,750
$
83,354
$
68,212
The Company discloses free cash flows as a 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 September 30, 2023 and 2022
(in thousands, except for percentages and Average Revenue per
Customer Account):
Three Months Ended
September 30,
2023
2022
Corporate revenue
$
50,430
$
48,974
Corporate customer accounts (1)
54
47
Corporate Average Revenue per Customer
Account (“ARPA”) (2)
$
312.45
$
348.94
Corporate paid adds (3)
3
4
Corporate monthly account churn (4)
1.49
%
1.71
%
SoHo revenue
$
40,129
$
42,801
SoHo customer accounts (1)
859
978
SoHo ARPA (2)
$
15.31
$
14.41
SoHo paid adds (3)
64
86
SoHo monthly account churn (4)
3.49
%
3.60
%
(1) Consensus customers are defined as
paying Corporate and SoHo customer accounts.
(2) Represents a monthly ARPA for the
quarter and is 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 periods presented.
(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/20231109678995/en/
Laura Hinson Consensus Cloud Solutions, Inc 844-211-1711
investor@consensus.com
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