Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results 8.8.2024
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 Q2 2024
Operations and GTM Update Q2 2024 Corporate SOHO ● Q2 Corporate revenue $51.7M vs. $50.4M previous year ● Q2 SoHo revenue $35.8M vs. $42.4M ● 2.7K+ e-commerce offering eFax Protect and Corporate previous year upsells ● Account base 785K vs. Q1’24 808K ● Advanced products 14% of new sales ● GTM Updat
Slide 5: Second Quarter 2024 Results
Second Quarter 2024 Results cansensus
Slide 6: Corporate Record Quarterly Revenue
Corporate Record Quarterly Revenue Corporate Revenue ($ in M) Quarter Ended Q2’23 Q2’24 YoY Accounts 54 56 5.4% 2.7% $51.7M (000’s) $50.4M YoY Growth ARPA(1) $316.55 $310.18 -2.0% Paid Adds 3 4 43.3% (000’s) ~40% Monthly Account Churn ~60% 1.26% 2.29% -103 bps Q2'23 Q2'24 Growth Trending Better Than
Slide 7: SoHo Revenue – Performing Ahead of Expectations
SoHo Revenue – Performing Ahead of Expectations SoHo Revenue ($ in M) Quarter Ended Q2’23 Q2’24 YoY Accounts 889 785 -11.6% (000’s) $42.4M -15.7% YoY $35.8M ARPA (1) $15.69 $14.97 -4.6% Paid Adds 74 61 -18.4% (000’s) Monthly Account Churn ~60% 3.57% 3.40% +17 bps Q2'23 Q2'24 Favorable Paid Adds vs E
Slide 8: Q2 2024 Results
Q2 2024 Results (in $M, except Adjusted EPS) Revenue Adj. EBITDA Adj. EPS(1) $92.8 $87.5 $47.7 $49.1 $1.45 -5.7% $1.36 2.9% 6.6% 51.4% 56.1% Margin Margin Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 ● Q2’24 Reported Consolidated Revenue decline YoY, -$5.3M or -5.7% ● Adj. EBITDA up $1.4M or 2.9% YoY, Adj. E
Slide 9: Strong Cash Generation Supports Capital Allocation Strategy
Strong Cash Generation Supports Capital Allocation Strategy Bond and Equity Repurchases • Q2’24 bond repurchases of ~$30M face value for ~$28M cash • There were no share repurchases in Q2’24 Cash and Cash Equivalents • Q2’24 cash balance $49M • Q2’24 interest income on excess cash invested $0.6M Fre
Slide 10: $300M Board Approved Bond Repurchase Program Approaches 3x Net Leverage
$300M Board Approved Bond Repurchase Program To Date Approaches 3x Net Leverage Total Debt to Adj. EBITDA Leverage 4.1x 4.0x 3.9x 3.9x 3.6x 3.8x 3.4x 3.7x 3.6x 3.5x 3.2x 3.1x 2026 6.0%: $305M $305M $305M $279M $261M $259M 2028 6.5%: $500M $500M $500M $455M $418M $390M Total Debt: $805M $805M $805M $
Slide 11: 2024 Financial Guidance
2024 Financial Guidance cansensus
Slide 12: Raising Full Year Adj. EPS Guidance, Reaffirming Revenue and Adj. EBITDA Guidance
Raising Full Year Adj. EPS Guidance, While Reaffirming Revenue and Adj. EBITDA Guidance with Q3 2024 Guidance Range FY2024(1) Guidance Range Q3’24(1) Guidance In Millions, except EPS Low Midpoint High Low Midpoint High GUIDANCE $ 338 $ 345 $ 353 $ 83.5 $ 85.5 $ 87.5 Revenue Adjusted EBITDA $ 182 $ 1
Slide 13: Appendix
Appendix cansensus
Slide 14: Consensus Metrics - Consolidated
Consensus Metrics - Consolidated 2023 2024 Consensus Metrics Q1 Q2 Q3 Q4 Q1 Q2 Revenue by Type |------(in '000s)--------| Fixed Revenues 65,653 66,789 64,836 62,361 61,114 60,151 Variable Revenues 25,784 26,001 25,723 25,389 27,029 27,349 Fax Revenues 91,438 92,789 90,559 87,750 88,144 87,500 Patent
Slide 15: Consensus Metrics – Corporate
Consensus Metrics – Corporate 2023 2024 Corporate Fax Metrics Q1 Q2 Q3 Q4 Q1 Q2 Revenue by Type |------(in '000s)----- Fixed Revenues 26,852 27,600 27,963 27,154 27,441 27,433 Variable Revenues 22,556 22,760 22,468 22,267 23,947 24,289 Total Corporate Revenues 49,407 50,361 50,431 49,421 51,388 51,7
Slide 16: Consensus Metrics – SoHo
Consensus Metrics – SoHo 2023 2024 SOHO Fax Metrics Q1 Q2 Q3 Q4 Q1 Q2 Revenue by Type |------(in '000s)----- Fixed Revenues 38,802 39,188 36,873 35,207 33,673 32,718 Variable Revenues 3,229 3,241 3,255 3,121 3,082 3,060 Total SOHO Revenues 42,031 42,429 40,129 38,329 36,755 35,778 Consensus Cloud Se
Slide 17: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation • The prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on Adjusted EBITDA. Adjusted EBITDA as calculated above represents earnings before interest expense, interest income,