CCSI Earnings Prediction
The chart below shows how CCSI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CCSI sees a +1.37% change in stock price 10 days leading up to the earnings, and a -0.76% change 10 days following the report. On the earnings day itself, the stock moves by -0.74%. This data can give you a slight idea of what to expect for the next quarter's release.
CCSI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
86.98M
-0.88%
-0.88%
Gross Margin
79.47%
-1.84%
-0.51%
Operating Margin
38.43%
-4.95%
-12.24%
Net Margin
20.78%
8.74%
-13.67%
EPS
0.92
5.75%
-15.60%
No Data Available
CCSI Earnings Analysis
Consensus Cloud Solutions Inc Corporation (CCSI.O) Earnings Conference Call
Positive
Corporate Channel Revenue Growth: Q4 2024 saw an improving revenue growth rate in the corporate channel, reaching the high end of quarterly revenue guidance.
EBITDA Margin Stability: EBITDA margin in Q4 was successfully maintained at 51%, aligning with expectations despite increased marketing spend.
Corporate Revenue Surpasses Forecast: Consensus exceeded expectations for corporate revenue growth, achieving nearly 5% for the year against a forecast of 3.1%.
SoHo Channel Revenue Decline: The SoHo channel's revenue decline was better than anticipated, with a 13.3% decline versus an expected 14.5%.
Record Free Cash Flow: The company achieved a record $88 million in free cash flow for the year, allowing for significant debt repurchases totaling $144 million.
Corporate Customer Acquisition Growth: Customer acquisition in the corporate channel was strong, with over 3,000 new customers added in Q4, contributing to a record high corporate customer count of approximately 59,000.
Revenue Retention Improvement: Revenue retention rate improved to 100.5% for fiscal year 2024, up from 98.8% the previous year, indicating strong customer loyalty and satisfaction.
ECFax Revenue Growth: The ECFax solution for the VA showed promising growth, with revenue exceeding $2.6 million in 2024 and potential for further growth in 2025.
Corporate Channel Revenue Projection: The corporate channel is projected to achieve revenue of $222 million in 2025, reflecting a growth rate of 6% to 6.5% compared to 2024, indicating a positive outlook for the future.
Revenue Stability and Future Growth: The company plans to maintain a flat revenue year at $350 million for 2025, with expectations for growth in subsequent years, showcasing a strategic approach to stability and future expansion.
Negative
SoHo Channel Revenue Decline: SoHo channel revenue declined by 11.1% in Q4 2024, down from $38.3 million to $34.1 million, indicating ongoing challenges in this segment.
SoHo Revenue Decline: Full year 2024 SoHo revenue decreased by 13.3% to $141.3 million from $162.9 million in 2023, reflecting a significant downturn in this business area.
Revenue Stagnation Analysis: The overall consolidated revenue for Q4 2024 was $87 million, a decrease of 0.9% compared to Q4 2023, suggesting stagnation in growth despite some positive indicators.
ARPA Decline Analysis: The corporate ARPA (Average Revenue Per Account) decreased slightly from $316 in 2023 to $311 in 2024, indicating potential pricing pressures or a shift in customer demographics.
Flat Revenue Projection: The company anticipates a flat revenue year for 2025, projecting total revenues at $350 million, which is a concern given the previous year's decline of 3.4%.
Advertising Spend Reduction Impact: The planned reduction in advertising spend by approximately 50% in 2024 compared to 2023 has negatively impacted customer acquisition and retention efforts, particularly in the SoHo channel.
Customer Churn Stability: Despite achieving a record high corporate customer count, the overall customer churn rate for SoHo remained stable at 3.38%, which could indicate underlying issues with customer satisfaction or service quality.
CCSI FAQs
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CCSI Earning Call Sentiment
Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) Q4 2024 Earnings Call Transcript
CCSI.O
-2.57%Positive
The earnings call presents a mixed outlook. Financial performance shows growth in corporate revenue and strong free cash flow, but SoHo revenue declines and supply chain challenges persist. The debt reduction strategy is positive, but competitive pressures and economic uncertainties pose risks. Q&A insights reveal cautious optimism with some unclear management responses. Overall, the positive aspects are balanced by negative factors, leading to a neutral sentiment.
