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Consensus Cloud Solutions (CCSI)
NASDAQ:CCSI
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Consensus Cloud Solutions
(NASDAQ:CCSI)
62Neutral
Positive Factors
Business Outlook
The momentum in Corporate continues while SoHo stabilizes, suggesting a positive outlook for CCSI's business segments.
Revenue Growth
Corporate revenue growth increased +5.6% y/y, the highest growth rate in 2 years, driven by new account wins and 101% revenue retention.
Negative Factors
Profitability Outlook
CCSI provided 2025 EBITDA guidance below previous estimates, reflecting a potentially challenging outlook for profitability.
SoHo Performance
SoHo revenue of ~$32.8M declined by -11% y/y, and the number of SoHo customers declined by approximately -10% y/y.
Consensus Cloud Solutions (CCSI) vs. S&P 500 (SPY)
Market Cap
$448.86M
Dividend YieldN/A
Average Volume (3M)151.71K
Price to Earnings (P/E)5.4
Beta (1Y)1.07
Revenue Growth-2.75%
EPS Growth-4.13%
CountryUS
Employees518
SectorTechnology
Sector Strength77
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.37
Shares Outstanding19,540,937
10 Day Avg. Volume174,430
30 Day Avg. Volume151,712
Financial Highlights & Ratios
PEG Ratio3.71
Price to Book (P/B)-5.49
Price to Sales (P/S)0.00
P/FCF Ratio4.98
Enterprise Value/Market Cap2.26
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda1.46
Forecast
1Y Price Target
$33.67Price Target Upside45.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Consensus Cloud Solutions Business Overview & Revenue Model
Company DescriptionConsensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. Its products and solutions include eFax, an online faxing solution, as well as MyFax, MetroFax, Sfax, SRfax, and other brands; eFax Corporate, a digital cloud-fax technology; jsign, which provides electronic and digital signature solutions; Unite, a single platform that allows the user to choose between several protocols to send and receive healthcare information in an environment that can integrate into an existing electronic health record (EHR) system or stand-alone if no EHR is present; Signal, a solution that integrates with a hospital's EHR system and uses rules-based triggering logic to automatically send admit, discharge, and transfer notifications using cloud fax and direct secure messaging technology; and Clarity that transforms unstructured documents into structured actionable data. It serves healthcare, education, law, and financial services industries. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.
How the Company Makes MoneyConsensus Cloud Solutions makes money through a subscription-based revenue model, where customers pay recurring fees for access to its cloud fax and document exchange services. These services primarily cater to healthcare, legal, and financial industries that require secure and compliant information exchange. Additionally, CCSI generates revenue by offering customized solutions and consulting services tailored to the specific needs of its clients. Key revenue streams include monthly or annual subscription fees, usage-based charges, and professional services fees. Significant partnerships with healthcare providers, legal firms, and other enterprise clients also contribute to its earnings by expanding its market reach and driving customer acquisition.
Consensus Cloud Solutions Key Performance Indicators (KPIs)
Any
Corporate Customer Accounts
Counts the number of corporate clients, indicating the company's penetration and strength in the business market sector.
Counts the number of corporate clients, indicating the company's penetration and strength in the business market sector.
Data provided by:
Main Street Data
Main Street DataConsensus Cloud Solutions Financial Statement Overview
Summary
Consensus Cloud Solutions shows strong cash flow generation and improved profitability margins. However, the declining revenue and negative shareholders' equity are significant concerns. The company's debt reduction is positive but overall financial stability needs improvement.Income Statement
Consensus Cloud Solutions has shown a decline in total revenue from $362.56 million to $350.38 million, a decrease of 3.36% year-over-year. The gross profit margin remained strong at 80.10%, indicating efficient cost management. However, the net profit margin was 25.52%, which is an improvement over the previous year's 21.30%, showing progress in profitability despite declining revenues.62
Positive
Balance Sheet
The company has a negative stockholders' equity of $47.94 million, which indicates financial instability. The total liabilities exceed total assets, resulting in a negative equity ratio. Despite this, the company managed to drastically reduce its debt level to zero, showing a significant reduction from the previous year's total debt of $749.23 million.38
Negative
Cash Flow
Operating cash flow increased to $121.75 million, indicating robust cash generation capabilities. The free cash flow also rose significantly by 13.71% to $88.31 million, suggesting improved financial flexibility. However, the high financing cash outflow of $138.62 million could be a concern for future financing needs.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 350.38M | 362.56M | 362.42M | 617.89M | 678.46M | Gross Profit |
| 280.69M | 294.24M | 300.47M | 487.19M | 524.21M | EBIT |
| 149.40M | 147.23M | 151.92M | 162.29M | 236.73M | EBITDA |
| 176.74M | 165.95M | 166.97M | 188.94M | 241.28M | Net Income Common Stockholders |
| 89.43M | 77.24M | 72.71M | 109.00M | 152.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 33.55M | 88.72M | 94.16M | 67.19M | 128.19M | Total Assets |
| 602.20M | 647.25M | 636.74M | 559.59M | 1.49B | Total Debt |
| 607.15M | 749.23M | 810.53M | 808.57M | 59.12M | Net Debt |
| 573.61M | 660.51M | 716.37M | 741.38M | -69.07M | Total Liabilities |
| 681.66M | 823.38M | 891.52M | 893.39M | 368.88M | Stockholders Equity |
| -79.46M | -176.12M | -254.78M | -333.80M | 1.12B |
| Cash Flow | Free Cash Flow | |||
| 88.31M | 77.65M | 52.28M | 215.64M | 203.22M | Operating Cash Flow |
| 121.75M | 114.11M | 83.32M | 250.22M | 238.79M | Investing Cash Flow |
| -33.44M | -40.46M | -43.27M | -42.54M | -60.92M | Financing Cash Flow |
| -138.62M | -81.66M | -10.62M | -880.00K | -179.09M |
Consensus Cloud Solutions Technical Analysis
Positive
23.22
Price Trends
21.80
Positive
23.94
Negative
23.35
Negative
Market Momentum
0.61
Negative
62.43
Neutral
81.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCSI, the sentiment is Positive. The current price of 23.22 is above the 20-day moving average (MA) of 21.55, above the 50-day MA of 21.80, and below the 200-day MA of 23.35, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCSI.
Consensus Cloud Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $334.89M | ― | -89.29% | ― | 2.40% | 54.99% | |
66 Neutral | $422.34M | ― | -0.32% | ― | 18.51% | 97.57% | |
62 Neutral | $448.86M | 5.37 | -94.58% | ― | -2.75% | -4.13% | |
60 Neutral | $11.59B | 10.34 | -7.15% | 2.94% | 7.49% | -10.88% | |
59 Neutral | $56.61M | ― | -9.96% | ― | 7.31% | 88.98% | |
52 Neutral | $340.95M | ― | 24.92% | ― | ― | ― | |
44 Neutral | $294.36M | ― | 81.52% | ― | -6.14% | 67.53% |
* Technology Sector Average
Performance Comparison
CCSI
Consensus Cloud Solutions
23.22
2.99
14.78%
BAND
Bandwidth
14.22
-7.19
-33.58%
JG
Aurora Mobile
10.00
6.89
221.54%
RXT
Rackspace Technology
1.20
-0.92
-43.40%
KLTR
Kaltura
2.15
0.96
80.67%
GRRR
Gorilla Technology Group Inc.
15.85
10.26
183.54%
Consensus Cloud Solutions Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 4.08%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. The corporate segment showed strong growth and improved metrics, while the SoHo segment continued to decline as part of a strategic plan. Overall, the highlights and lowlights are relatively balanced.Q1-2025 Updates
Positive Updates
Record Corporate Revenue Growth
Corporate revenue reached a record high of $54.3 million, representing a 5.6% increase compared to Q1 2024. This was the best growth year-over-year in eight quarters on a normalized basis.
Strong EBITDA Margin
The company delivered an adjusted EBITDA margin of 54.2%, which was 100 basis points ahead of Q1 expectations.
Increased Revenue Retention
Revenue retention rate increased by 55 basis points since last quarter to 101%, significantly higher than the 97.9% in Q1 of last year.
Customer Base Growth
The corporate customer base grew to approximately 60,000, up 9% year-over-year, driven by new customer acquisition and strong adoption of advanced solutions like eFax Protect.
Negative Updates
Decline in SoHo Revenue
SoHo revenue decreased by 10.6% compared to Q1 2024, reflecting the company's strategic focus on optimizing profitability and reducing advertising spend.
Decrease in ARPA for SoHo
SoHo ARPA saw a decrease to $14.83 in Q1 2025 from $14.99 in Q4 2024, impacted by the residual effects of 2024 holiday promotions.
Overall Revenue Decline
Consolidated revenue of $87.1 million represents a decrease of $1 million or 1.1% versus Q1 2024, mainly due to the decline in SoHo revenue.
Company Guidance
During the Consensus Q1 2025 earnings call, the company provided detailed guidance for both the full year 2025 and Q2 2025. For the full year, Consensus expects revenue to range between $343 million and $357 million, with an adjusted EBITDA between $179 million and $190 million, and adjusted EPS from $5.03 to $5.42. For Q2 2025, the guidance includes revenue between $85 million and $89 million, adjusted EBITDA from $45 million to $48 million, and adjusted EPS of $1.31 to $1.42. Despite challenges such as declining SoHo revenue, the company remains optimistic about growth in the corporate channel, driven by new customer acquisitions and retention strategies, with a strong focus on the health care sector and government contracts like the VA. The company reported a Q1 2025 free cash flow of $33.7 million, down slightly from the previous year, and maintained a strong adjusted EBITDA margin of 54.2%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.