Slide 1: First Quarter 2024 Results
First Quarter 2024 Results 05.08.2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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-looking statements ar
Slide 3: Risk Factors
Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: • Our fax and healthcare interoperability solutions constitute substantially all of our revenue and operating income. • Re
Slide 4: Business Overview
Business Overview cansensus
Slide 5: Operations and GTM Update Q1 2024
Operations and GTM Update Q1 2024 Corporate GTM updates ● Q1 Corporate revenue $51.4M vs. $49.4M previous year ● 3 large shows: ViVE, HIMSS and ● Upsell from SoHo: ~1.5K accounts in Q1; 24% QoQ and 38% YoY Channel Partners ● Advanced products 21% of new sales up from Q4, driven by Clarity ● eFax.com
Slide 6: First Quarter 2024 Results
First Quarter 2024 Results cansensus
Slide 7: Corporate Revenue – Growth Driven By Increasing Base
Corporate Revenue – Growth Driven By Increasing Base Corporate Revenue ($ in M) Quarter Ended Q1’23 Q1’24 YoY Accounts 53 55 4.2% 4.0% (000’s) YoY $51.4M $49.4M Growth ARPA(1) $315.76 $316.02 0.1% Paid Adds 3 4 38.4% (000’s) ~40% Monthly Account Churn ~60% 1.37% 1.92% -55 bps Q1'23 Q1'24 Growth Bett
Slide 8: SoHo Revenue – Performing Ahead of Expectations
SoHo Revenue – Performing Ahead of Expectations SoHo Revenue ($ in M ) Quarter Ended Q1’23 Q1’24 YoY Accounts 914 808 -11.6% (000’s) $42.0M -12.6% YoY $36.8M ARPA (1) $15.10 $14.95 -1.0% Paid Adds 78 63 -19.2% (000’s) Monthly Account Churn ~60% 3.76% 3.42% +34 bps Q1'23 Q1'24 Planned Reduced Marketi
Slide 9: Q1 2024 Results
Q1 2024 Results (in $M, except Adjusted EPS) Revenue Non-GAAP Adj. EBITDA Non-GAAP Adj. EPS(1) $91.5 $1.55 $88.1 $48.1 -3.6% $44.2 $1.10 8.7% 40.9% 48.4% 54.5% Margin Margin Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 ● Q1 2024 Reported Consolidated Revenue decline YoY, -$3.3M or -3.6% ● Adjusted EBITDA up
Slide 10: Strong Cash Generation Supports Capital Allocation Strategy
Strong Cash Generation Supports Capital Allocation Strategy Bond and Equity Repurchases • Q1’24 bond repurchases of $63.5M face value for ~$59M cash (~33% / 67% of 6.0% / 6.5% notes, respectively) • Q1’24 share repurchases were $0.7M Cash and Cash Equivalents • Q1’24 cash balance ~$62M • Q1’24 inter
Slide 11: $300M Board Approved Bond Repurchase Program
$300M Board Approved Bond Repurchase Program Debt to EBITDA Leverage 4.1x 4.0x 3.9x 3.9x 3.6x 3.8x 3.7x 3.6x 3.5x 3.2x 2026 6.0%: $305M $305M $305M $279M $261M 2028 6.5%: $500M $500M $500M $455M $418M Total Debt: $805M $805M $805M $734M $679M (1) At Spin 2021YE 2022YE 2023YE 2024Q1 Gross Debt to EBI
Slide 12: 2024 Financial Guidance
2024 Financial Guidance cansensus
Slide 13: Reaffirming Full Year and Providing Q2 2024 Guidance Range
Reaffirming Full Year and Providing Q2 2024 Guidance Range FY2024(1) Guidance Range Q2’24(1) Guidance In Millions, except EPS Low Midpoint High Low Midpoint High GUIDANCE $ 338 $ 345 $ 353 $ 84.5 $ 86.5 $ 88.5 Revenue Adj. Non-GAAP EBITDA $ 182 $ 188 $ 194 $ 46.0 $ 47.5 $ 49.0 Adj. Non-GAAP EPS(1) $
Slide 14: Appendix
Appendix cansensus
Slide 15: Consensus Metrics - Consolidated
Consensus Metrics - Consolidated 2023 2024 Consensus Metrics Q1 Q2 Q3 Q4 Q1 Revenue by Type |------(in '000s)--------| Fixed Revenues 65,653 66,789 64,836 62,361 61,114 Variable Revenues 25,784 26,001 25,723 25,389 27,029 Fax Revenues 91,438 92,789 90,559 87,750 88,144 Patents 17 2 3 4 2 Total Reven
Slide 16: Consensus Metrics – Corporate
Consensus Metrics – Corporate 2023 2024 Corporate Fax Metrics Q1 Q2 Q3 Q4 Q1 Revenue by Type |-----(in '000s)-----| Fixed Revenues 26,852 27,600 27,963 27,154 27,441 Variable Revenues 22,556 22,760 22,468 22,267 23,947 Total Corporate Revenues 49,407 50,361 50,431 49,421 51,388 Consensus Cloud Servi
Slide 17: Consensus Metrics – SoHo
Consensus Metrics – SoHo 2023 2024 SOHO Fax Metrics Q1 Q2 Q3 Q4 Q1 Revenue by Type |-----(in '000s)-----| Fixed Revenues 38,802 39,188 36,873 35,207 33,673 Variable Revenues 3,229 3,241 3,255 3,121 3,082 Total SOHO Revenues 42,031 42,429 40,129 38,329 36,755 Consensus Cloud Services Customers (1) 91