Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results 11.7.2024
Slide 2: Forward-Looking Statements and Risk Factors
Forward-Looking Statements and Risk Factors Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Industry, Market and Other Data Reform Act of 1995, particularly those regarding our 2024 Financial Guidance. Such forward-look
Slide 3: Business Overview
Business Overview cansensus
Slide 4: Operations and GTM Update Q3 2024 - Corporate Business
Operations and GTM Update Q3 2024 - Corporate Business Business Update • Q2 Corporate revenue up 5.3% $53.1M vs. $50.4M previous year (highest growth in 6 quarters) • Total Corporate Customer Count 58K vs. 54K previous year (record while keeping ARPA stable) • 3.0K+ e-commerce offering eFax Protect
Slide 5: Operations and GTM Update Q3 2024 - SOHO Business
Operations and GTM Update Q3 2024 - SOHO Business Business Update • Q3 SoHo revenue $34.7M vs. $40.1M previous year • Account base 768K vs. Q2’24 785K (slowest sequential decline in 10 quarters) • Q3’24 Churn 3.38% vs Q3’23 3.49% despite upward churn pressure from discounted first month offering GTM
Slide 6: Third Quarter 2024 Results
Third Quarter 2024 Results cansensus
Slide 7: Record Corporate Quarterly Revenue
Record Corporate Quarterly Revenue Corporate Revenue ($ in M) Quarter Ended Q3’23 Q3’24 YoY Accounts 5.3% $53.1M (000’s) 54 58 6.6% $50.4M YoY Growth ARPA(1) $312.45 $310.13 -0.7% Paid Adds 3 5 70.0% (000’s) ~40% Monthly Account Churn ~60% 1.49% 2.61% -112 bps Q3'23 Q3'24 Corporate Revenue Performs
Slide 8: SoHo Revenue – Performing Ahead of Expectations
SoHo Revenue – Performing Ahead of Expectations SoHo Revenue ($ in M) Quarter Ended Q3’23 Q3’24 YoY Accounts 859 768 -10.6% (000’s) -13.6% $40.1M YoY ARPA (1) $15.31 $14.88 -2.8% $34.7M Paid Adds 64 64 -1.2% (000’s) Monthly Account Churn ~60% 3.49% 3.38% +11 bps Q3'23 Q3'24 Flat Paid Adds YoY Amid >
Slide 9: Q3 2024 Results
Q3 2024 Results (in $M, except Adjusted EPS) Revenue Adj. EBITDA Adj. EPS(1) $90.6 $87.8 $1.51 -3.1% $47.5 $46.9 $1.31 -1.2% -13.2% 52.5% 53.5% Margin Margin Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 ● Q3’24 Reported Consolidated Revenue decline YoY, -$2.8M or -3.1% ● Adj. EBITDA down -$0.6M or -1.2% YoY,
Slide 10: Strong Cash Generation Supports Capital Allocation Strategy
Strong Cash Generation Supports Capital Allocation Strategy Bond and Equity Repurchases • Q3’24 bond repurchases of $31.1M face value for ~$30.6M cash • There were no share repurchases in Q3’24 Cash and Cash Equivalents • Q3’24 cash balance ~$55M • Q3’24 interest income on excess cash invested ~$0.7
Slide 11: Total Debt to Adj. EBITDA Leverage
Bond Repurchase Program To Date Approaches 3x Target: Total Debt to Adj. EBITDA Leverage Total Debt to Adj. EBITDA Leverage 4.3x 3.9x 3.6x 3.4x 3.2x 3.4x 3.5x 3.2x 3.1x 2.9x 2026 6.0%: $305M $279M $261M $259M $256M 2028 6.5%: $500M $455M $418M $390M $363M Total Debt(1): $805M $734M $679M $649M $618M
Slide 12: 2024 Financial Guidance
2024 Financial Guidance cansensus
Slide 13: FY'24 Guidance Range Narrowed on YTD Performance + Q4 Guidance Provided
FY’24 Guidance Range Narrowed on YTD Performance + Q4 Guidance Provided (1)Assumes ~19.5M shares and 19.5% to 21.5% ETR ©2024 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com 13
Slide 14: Appendix
Appendix cansensus
Slide 15: Consensus Metrics - Consolidated
Consensus Metrics - Consolidated 2023 2024 Consensus Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue by Type |------(in '000s)--------| Fixed Revenues 65,653 66,789 64,836 62,361 61,114 60,151 60,268 Variable Revenues 25,784 26,001 25,723 25,389 27,029 27,349 27,480 Fax Revenues 91,438 92,789 90,559 87,750 88,
Slide 16: Consensus Metrics – Corporate
Consensus Metrics – Corporate 2023 2024 Corporate Fax Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue by Type |------(in '000s)-----| Fixed Revenues 26,852 27,600 27,963 27,154 27,441 27,433 28,493 Variable Revenues 22,556 22,760 22,468 22,267 23,947 24,289 24,592 Total Revenues 49,407 50,361 50,431 49,421 51,
Slide 17: Consensus Metrics – SoHo
Consensus Metrics – SoHo 2023 2024 SOHO Fax Metrics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue by Type |------(in '000s)-----| Fixed Revenues 38,802 39,188 36,873 35,207 33,673 32,718 31,775 Variable Revenues 3,229 3,241 3,255 3,121 3,082 3,060 2,889 Total Revenues 42,031 42,429 40,129 38,329 36,755 35,778 34,663
Slide 18: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Adjusted EBITDA as calculated above represents earnings before interest expense, interest income, other income (expense), net, income tax expense, depreciation and amortization and the items used to reconcile GAAP to Adjusted non-GAAP financial measures,