Consensus Cloud Solutions outlook Q3 revenue USD 89.2-93.2 million

Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) reported its third-quarter 2023 financial results on November 9, 2023, with GAAP quarterly revenues declining by 1.3% to $90.6 million compared to $91.8 million in the same period in 2022. The decline was primarily attributed to a 6.2% decrease in its SoHo business, partially offset by a 3.0% increase in its Corporate business.

GAAP net income for Q3 2023 rose to $24.0 million, a 56.2% increase compared to $15.4 million in Q3 2022, driven by lower sales tax expenses. Net income per diluted share also increased 58.4% year-over-year. Adjusted EBITDA for the quarter was $47.5 million, a slight decline compared to $49.1 million in Q3 2022, but in line with forecasted margin range of 50% to 55%.

The company ended the quarter with $155.7 million in cash and cash equivalents, despite $10.1 million in capital expenditures and $2.5 million in common stock repurchases during the quarter. For the nine months ended September 30, 2023, cash outlays totaled $28.7 million in capital expenditures and $13.7 million in stock repurchases.

Looking ahead, Consensus provided Q4 2023 guidance with revenue projected in the range of $87.5 million to $90.5 million, with a midpoint of $89.0 million. Adjusted EBITDA is expected to range between $46.3 million and $48.2 million, and adjusted non-GAAP earnings per diluted share are forecasted to be between $1.15 and $1.19.

The company also announced a $300 million debt repurchase program, authorizing the reduction of its 2026 and 2028 Senior Notes through various methods, including open market purchases and tender offers. The program is set to expire on November 9, 2026.