Consensus Cloud Solutions, Inc. (CCSI) Bundle
A Brief History of Consensus Cloud Solutions, Inc.
Consensus Cloud Solutions, Inc. has undergone significant transformations since its inception. The company specializes in cloud-based solutions, focusing on secure information exchange across various sectors.
Founding and Initial Growth
Founded in 2014, the company aimed to provide innovative cloud fax solutions. By 2018, Consensus had established itself as a leader in the industry, acquiring several smaller firms to enhance its service offerings.
Financial Performance Overview
As of September 30, 2024, Consensus reported a net income of $71.364 million, an increase from $60.523 million in the same period the previous year. Revenues for the nine months ended September 30, 2024, were $263.399 million, compared to $274.808 million for the nine months ended September 30, 2023, reflecting a 4% decline.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Net Income | $71.364 million | $60.523 million | +18.5% |
| Total Revenues | $263.399 million | $274.808 million | -4% |
| Operating Cash Flow | $110.621 million | $112.079 million | -1.3% |
| Cash and Cash Equivalents | $54.6 million | $88.7 million (Dec 31, 2023) | -38.4% |
Debt Management and Financial Strategy
As of September 30, 2024, Consensus had outstanding long-term debt totaling $618.228 million, down from $742.428 million at the end of 2023. The company has actively engaged in a debt repurchase program, having repurchased $186.8 million in principal amount of its senior notes as part of its strategy to manage leverage.
Market Presence and Customer Base
The company operates primarily in the United States, Canada, and Europe, with total revenues attributed to the U.S. reaching $208.108 million in the nine months ended September 30, 2024. The corporate customer segment contributed significantly to revenue, with $156.195 million reported for the same period.
| Geographic Revenue Breakdown | 2024 (Nine Months) |
|---|---|
| United States | $208.108 million |
| Canada | $39.813 million |
| Ireland | $9.195 million |
| Other Countries | $6.283 million |
Recent Developments and Future Outlook
In 2024, the company has focused on enhancing its cloud offerings and expanding its market reach. The strategic emphasis on organic growth and potential acquisitions remains a priority as Consensus aims to solidify its position in the competitive cloud services sector.
With a robust financial foundation and a clear growth strategy, Consensus Cloud Solutions, Inc. is well-positioned for future developments in the evolving landscape of cloud technology.
A Who Owns Consensus Cloud Solutions, Inc. (CCSI)
Ownership Structure
As of September 30, 2024, Consensus Cloud Solutions, Inc. (CCSI) has a total of 20,375,622 shares issued. The ownership is primarily composed of institutional investors, insiders, and public shareholders.
Major Shareholders
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5% | 2,141,000 |
| The Vanguard Group, Inc. | 9.8% | 1,995,000 |
| State Street Corporation | 8.7% | 1,775,000 |
| Insider Holdings (Executive Officers & Directors) | 5.2% | 1,060,000 |
| Other Institutional Investors | 20.0% | 4,050,000 |
| Public Float | 45.8% | 9,500,000 |
Recent Changes in Ownership
Following the spin-off from Ziff Davis, Inc., which initially retained a 19.9% interest in CCSI, Ziff Davis has sold its shares, resulting in no ownership as of September 30, 2024.
Insider Transactions
Insiders have engaged in various transactions, including the repurchase of common stock throughout 2024. Notably, there were insider purchases totaling approximately 100,000 shares in the first half of 2024.
Stock Performance and Market Capitalization
As of September 30, 2024, CCSI's market capitalization is approximately $450 million, with the stock trading at around $22.10 per share.
Institutional Investment Trends
Institutional ownership has seen a steady increase, with the top three institutional investors holding a combined 29% of shares. This trend indicates growing confidence in CCSI's business model and future prospects.
Key Financial Metrics
| Metric | Value |
|---|---|
| Total Revenue (Q3 2024) | $87,753,000 |
| Net Income (Q3 2024) | $21,120,000 |
| Total Assets (as of September 30, 2024) | $622,494,000 |
| Total Liabilities (as of September 30, 2024) | $715,683,000 |
| Cash and Cash Equivalents | $54,600,000 |
Conclusion on Ownership Dynamics
The ownership of Consensus Cloud Solutions, Inc. is characterized by significant institutional investment, with a notable shift in ownership dynamics post-spin-off from Ziff Davis. The company continues to attract institutional investors, reflecting confidence in its operational performance and strategic direction.
Consensus Cloud Solutions, Inc. (CCSI) Mission Statement
Mission Statement Overview
The mission of Consensus Cloud Solutions, Inc. is to enable organizations to securely and efficiently exchange information across various boundaries while enhancing productivity and ensuring compliance. The company focuses on delivering innovative cloud-based solutions that support the evolving needs of its customers in a digital world.
Core Values
- Security: Commitment to providing secure solutions that protect sensitive information.
- Innovation: Continuous improvement and development of cloud-based services to meet customer demands.
- Customer Focus: Striving to exceed customer expectations through tailored solutions and exceptional service.
- Integrity: Maintaining transparency and ethical practices in all business operations.
Strategic Goals
The strategic goals of Consensus Cloud Solutions include:
- Enhancing product offerings to bolster interoperability.
- Expanding market presence through both organic growth and strategic acquisitions.
- Investing in technology and infrastructure to support scalable operations.
- Fostering a culture of collaboration and innovation within the organization.
Recent Financial Performance
As of September 30, 2024, Consensus Cloud Solutions reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $21,120,000 | $24,007,000 | $71,364,000 | $60,523,000 |
| Revenues | $87,753,000 | $90,562,000 | $263,399,000 | $274,808,000 |
| Gross Profit | $70,095,000 | $73,709,000 | $211,571,000 | $223,201,000 |
| Operating Expenses | $31,670,000 | $34,794,000 | $95,598,000 | $111,447,000 |
| Comprehensive Income | $27,211,000 | $17,769,000 | $69,804,000 | $56,392,000 |
Market Position and Competitive Advantage
Consensus Cloud Solutions operates primarily in the cloud faxing market, which is characterized by a growing demand for secure and compliant communication solutions. The company differentiates itself through:
- Robust Technology: Leveraging advanced cloud infrastructure to deliver reliable services.
- Customer-Centric Approach: Tailoring solutions to meet the unique needs of diverse industries.
- Strong Brand Reputation: Recognized for quality and integrity in service delivery.
Future Outlook
Looking ahead to 2024, Consensus Cloud Solutions aims to:
- Expand its service offerings to include more comprehensive data solutions.
- Continue investing in research and development to maintain technological leadership.
- Strengthen partnerships with key stakeholders to enhance service delivery.
How Consensus Cloud Solutions, Inc. (CCSI) Works
Company Overview
Consensus Cloud Solutions, Inc. operates primarily within the cloud fax services sector, offering solutions that enable secure document exchange and communication. The company focuses on subscription-based revenue models, catering to both corporate and small office/home office (SoHo) clients.
Financial Performance
As of September 30, 2024, Consensus Cloud Solutions reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $21,120,000 | $24,007,000 | $71,364,000 | $60,523,000 |
| Comprehensive Income | $27,211,000 | $17,769,000 | $69,804,000 | $56,392,000 |
| Revenues | $87,753,000 | $90,562,000 | $263,399,000 | $274,808,000 |
| Gross Profit | $70,095,000 | $73,709,000 | $211,571,000 | $223,201,000 |
| Operating Income | $38,425,000 | $38,915,000 | $115,973,000 | $111,754,000 |
| Net Cash from Operating Activities | $110,621,000 | $112,079,000 | - | - |
Revenue Breakdown
For the three months ended September 30, 2024, Consensus Cloud Solutions reported revenues categorized as follows:
| Category | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Corporate | $53,085,000 | $50,430,000 |
| SoHo | $34,664,000 | $40,129,000 |
| Total Revenue | $87,749,000 | $90,559,000 |
Cost Structure
The cost of revenues for the three months ended September 30, 2024 was detailed as follows:
| Cost Category | Q3 2024 Cost | Q3 2023 Cost |
|---|---|---|
| Cost of Revenues | $17,658,000 | $16,853,000 |
| Sales and Marketing | $12,500,000 | $15,319,000 |
| Research and Development | $2,034,000 | $1,677,000 |
| General and Administrative | $17,136,000 | $17,798,000 |
| Total Operating Expenses | $31,670,000 | $34,794,000 |
Debt and Liquidity
As of September 30, 2024, Consensus Cloud Solutions had the following debt obligations:
| Debt Category | Amount (in millions) |
|---|---|
| Long-term Debt | $618.2 |
| Current Portion of Long-term Debt | $9.366 |
Cash and cash equivalents as of September 30, 2024 were reported at $54.6 million, a decrease from $88.7 million at the beginning of the year.
Customer Metrics
Key performance indicators for customer accounts as of September 30, 2024 include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Revenue per Customer Account (ARPA) - Corporate | $310.13 | $312.45 |
| Average Revenue per Customer Account (ARPA) - SoHo | $14.88 | $15.31 |
| Total Customer Accounts | 825 | 913 |
| Monthly Churn Rate (Consolidated) | 3.33% | 3.37% |
Market Position and Strategy
Consensus Cloud Solutions aims to grow both organically and through acquisitions. The company emphasizes the enhancement of existing services and the introduction of new solutions to meet customer needs effectively.
How Consensus Cloud Solutions, Inc. (CCSI) Makes Money
Revenue Streams
Consensus Cloud Solutions, Inc. primarily generates revenue through cloud-based communication services and digital signature solutions. The company operates under two main segments: Corporate and Small Office/Home Office (SoHo).
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Corporate | $53,085 | $50,430 | $156,195 | $150,198 |
| SoHo | $34,664 | $40,129 | $107,197 | $124,588 |
| Other Revenues | $4 | $3 | $7 | $22 |
| Total Revenue | $87,753 | $90,562 | $263,399 | $274,808 |
Revenue Recognition
Revenue is recognized primarily over time as the services are provided. For the three months ended September 30, 2024, revenue recognized over time amounted to $87,464 thousand, whereas $289 thousand was recognized at a point in time.
Cost of Revenues
The cost of revenues for CCSI consists mainly of personnel costs, data transmission, online processing fees, and equipment depreciation.
| Cost of Revenues | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Cost of Revenues | $17,658 | $16,853 | $51,828 | $51,607 |
Operating Expenses
Operating expenses include sales and marketing, research and development, and general administrative costs.
| Operating Expenses | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Sales and Marketing | $12,500 | $15,319 | $36,776 | $49,719 |
| Research and Development | $2,034 | $1,677 | $5,582 | $5,346 |
| General and Administrative | $17,136 | $17,798 | $53,240 | $56,382 |
| Total Operating Expenses | $31,670 | $34,794 | $95,598 | $111,447 |
Net Income
Net income reflects the company's profitability after accounting for all revenues and expenses.
| Net Income | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Net Income | $21,120 | $24,007 | $71,364 | $60,523 |
Customer Metrics
CCSI tracks key customer metrics, including Average Revenue per Customer Account (ARPA) and customer churn rates.
| Customer Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| ARPA (Corporate) | $310.13 | $312.45 |
| ARPA (SoHo) | $14.88 | $15.31 |
| Consolidated ARPA | $35.09 | $32.54 |
| Monthly Churn % (Corporate) | 2.61% | 1.49% |
| Monthly Churn % (SoHo) | 3.38% | 3.49% |
Debt Obligations
As of September 30, 2024, Consensus had significant long-term debt obligations.
| Debt Obligations | Amount (in thousands) |
|---|---|
| 2026 Senior Notes | $255,532 |
| 2028 Senior Notes | $362,696 |
| Total Long-Term Debt | $618,228 |
Cash Flow
Cash flow from operating activities indicates the liquidity position of the company.
| Cash Flow | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $110,621 | $112,079 |
| Net Cash Used in Investing Activities | $25,460 | $32,725 |
| Net Cash Used in Financing Activities | $116,809 | $14,090 |
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Resources:
- Consensus Cloud Solutions, Inc. (CCSI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Consensus Cloud Solutions, Inc. (CCSI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Consensus Cloud Solutions, Inc. (CCSI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.