CCSI - Earnings call transcript Q1 2022 | Consensus Cloud Solutions, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to Consensus Q1 2022 Earnings Call. My name is Paul and I will be the Operator assisting you today. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] On this call from Consensus will be Scott Turicchi, CEO, John Nebergall, COO, Jim Malone, CFO, and Adam Varon, Senior Vice President of Finance. the Finance to at turn Vice Varon, now of President Consensus. will call Adam over Senior I Thank you.

You may begin.

Adam Varon

and results, Good afternoon discuss key guidance. financial to Investor Consensus our information, other and welcome our to QX the reaffirmation XXXX of Call XXXX,

Scott will John today John CEO, 'XX update a since operational will remarks, the CFO. give are Jim with Scott our Nebergall, QX will and progress year-end At the guidance. Jim question. asking results Call, then prepared earnings an and procedures time, call Joining our begin After discuss a and XXXX on we QX XXXX financial Operator providing Malone, instruct that we Turicchi, me Q&A COO, The you finish for will opening conduct Investor will and session. remarks, on

allow Before harbor safe on to begin prepared we our to direct you the me Slide X. language remarks,

will may would As results results. the this statements. from the webcast and that uncertainties forward-looking and anticipated statements you call cause differ risks materially include Such to know, actual involve

of as well the well include, we our not SEC risk as to forward-looking the included that disclosed summary a Slide harbor but those outlined we statements. and XX-K factors refer risk those you discussions as risks uncertainties for as slide part on have the of show Some limited factors in to X We filing, are that and safe webcast. of as those documents language, regarding have

over Now, to turn let Scott. me the call

Scott Turicchi

which of the Those financial was the more will which XX% greater by you, which quarter balance the for record grew was for of than were and the Jim business organic. the versus Adam. by the performance provide XX-year in driven a the of the of QX XX.X% this corporate of quarter I'm XXXX, company. our company quarter, history continued strong results revenue performance accomplishments on Thank positioning the details for of proud year.

seventh time the It's of for is revenue first In consecutive the quarter addition, quarter surpassed Consensus. growth, leading channel seven corporate as growth. this straight the corporate ARPA SoHo for of and revenue

the remains more in jSign With channel revenue growth, certain additional of and led well-positioned corporate of QX healthcare the a of technology, for coming in summit majority the of sector. by late launch integration the than from incremental features Clarity

in effect. which Our headwind $XXX,XXX, provided SoHo are its actions versus believe despite throughout channel and year of incremental We about continue held XXXX. quarter, headwinds own a FX looking X% of headwinds at mitigate their QX will the to these the

ECFax of We're authority to progress by and system the VA. operate the We to Cognosante for September. working track continue the on the make with on end are to meet

for we addition, this stages In initial in roll the later with the early of engaging were the VA year. out

Despite and talented from more call, As to our government team that have separation other We'll out share interest consistently to over the organic in future as we've agencies. the XXX discussed Davis, the on building the execute to the we've company committed employees remain labor see on Summit. from from our to on beginning market, we outlined the finish the make excellent I'd we contributions higher challenging of various XX previously into the this initiatives and like congratulate able continuing been they year. employees in Ziff remainder to the we're integrate people last federal quarters.

on over final John, call economic comment the one to Before handing the environment.

line having We of company increasing a there later credit. balances all fears highly $XX or As size, our we also for year million cash liquid, you're significant remain and this aware, of have recession of are next. unused

for the maps XXXX. call in on I'll healthcare to our model, confident necessity the space. hand and the the high now business to business, guidance changing of John quarter. due fixed operations financial component reaffirm to details that economic the subscription We of over nature conditions business for the percentage revenue for our business prospects our We of our and to more services, our our our are the increasing remain during well-positioned

John Nebergall

exciting Thank an you, quarter. Scott. was It

The first one areas. traction of made full and key quarter where standalone we several in performance positive very

of mix. XX% from nearly QX and pure of for the accounted an sequentially. in from the and recording more XX% $X.X million revenue I'll than Unite delivered than products quarter, growth. total The On In it's million first increased sales increased growth XX% both our growth our well the respectively. growth, basis, advanced an that; addition and Total to that fax, The repeat up had XX% corporate contribution, represent organic in growth Summit QX those our of advanced including contract up corporate strong are Consensus our products, organic quarter for bookings. and volumes sequentially. interoperability its 'XX X% of sales and impressive were seven suite team and of not sales for with of quarter and of sales sequentially. increasing suite, value, interoperability the $XX of XX% sales bookings. proportion more the XX% nearly million were overall, was numbers XX% X% straight by very to QX growth quarter annual year-over-year QX ever interoperability marking continues overall $X.X XX% revenue XXXX, as Unite of expectations. by quarters XX% Sales revenue, notched organic the our impressive a as was a

care's health and Solving the problem is our businesses opportunity, largest biggest we're answering call.

to employees this is on improved slight we within the marketing the and performance to with able of contribute that Summit leadership both working to into integrate and road product and and QX Health an of our were view, team to the to return services the within with advance quickly the this The solidly expect expertise spirit is added our performing attractive initiatives professional The results. existing our the the anticipated on SoHo likewise balance product the expected team aspect continues continue extremely able as blended of that rate. by overall as to targets a has as retention delivering excited The pipeline. the year's was were result combined subscriptions. capabilities anticipate we We we this own staff acquisition. have merged around key even makes And of the development historic in stronger their We the our Churn with quarter our itself. culture are technical QX including base meaningful ours, of a of acquisition expectations. technology expected map have we overall the work work results our will care, decrease And incorporated range team timing opportunities has well for of new for was in operations From and team impressive the overall within transaction strength a the range. to from set year, a staff, into we the XXXX to QX Consensus deal levels, the and company.

central FedRAMP frame passed EHR. our assessing of the is sweeping we and in our tests the of As flying resiliency last further technology with executed rigorous demonstration VA of network certification a conference, an for and a ECFax into provides cloud filed in hurdle workflow of redundancy, project series capability release demonstrated completion disaster meets At to fully certification was been news, live that meet product. the has fax our which was achieving reliability. the time from past selected on of report, March. recent and recover structured a announced support reviews HIMSS activity requirements series involves most including a review progress process. of Clarity, of in modernization A which have the a message information this Consensus And we ensure a the product that target converted an official at colors. initiatives, a development into CCDA variety process integrated audits and you'll recall scenarios, to and that expected this the in from epic for and The This system are security of to our we

you demands secured workflow for delivering both and clinical customer the to capability environment. This sales Clarity of the direct market that pursuing applying invite first Access, in that By and go transformations exchange epic check Summit with it to and combining fax installation will market. the is to our specific environment. as posted release the to all automatically technologies, of have our product in and efficiency Incidentally, All speed digital fax and product implementation which cloud cloud jSign send million It's and at website Clarity Summit section, our demonstration messages, enhanced of really as to on speed meet created cloud enhancing incorporates architecture Clarity, we acquisition. well to system, demonstrates our the further our our I $X please in we're us technology our and and integrated we fax's the in allows with website digital triggers a with also the pipeline We're currently all Fax, aimed bring was Our product event for set opportunities. capability flexibility technology in direct soon messages, acquired bring to phase, first to to roughly out. Summit

There is a some customers. to from number market or to single completing our integrated hard full that include here product. a about These is customer product integration an combined needs the of Consensus the competitors, we decidedly our Unite, to as but large for pipeline enterprise is a as as work, Finally, eFax jSign been There have jSign component meet has of have Unite, different also at ability envelope. compete in been approach space. into others our documents as the both multiple standalone questions requested to well measurable of well, the enhancements positioned with how jSign

that or first team in revenue, focus that, Overall, expectations with workflows Jim. document quarter full quarter significantly integrated turn the over clinical of I'll enhancements for for engineering. from has and product or meticulous the operation. the it to our exceeded existing operational we're on area execution each pleased our in security Jim Our very are from space others and CFO, contract sales, types. their With Malone, e-commerce The to administrative focus on or management differentiated healthcare both met

James Malone

Company's for a exciting start call the always all It's of off comment permission, Thank the healthcare the joined the quickly company eFax on your I products, and she we in domain underlying consultant. evolved business. a us technology share to pleasure let on at leadership appreciate continued product. of consultant a with in similar you, experience, those script arrived of John me not observation, relaying A Thank from year a a With the an years deep Consensus. position in when going recent did these noted serve. January interest your the calls, markets technology, and the complexity to that by many this and performance and gives be you, the knowledge in by we

discussed, the operating and on favorable I Scott in share some QX results. will our now As color results expectations. our line additional were with

revenue, was consistent Consensus. with $XX.X business. Our increase million, X% our QX XXXX a of record million. QX of Compared sell-side with had QX an million, result or $XX.X $X.X was we for This

X.X%. However, primarily our QX business. Euro increase have impact Japanese delivered on rates, in and the is constant would revenue the basis approximately to related dollar QX $XXX,XXX This by SoHo and of increased results XXXX would've XXXX Yen with an FX

$XX.X This due with million surpassed compared primarily $XXX of of the as guidance in to revenue is of trajectory. line Corporate million, On to corporate calls. anticipated accounts Annual $XX.X revenue Moving growth previous XX.X% Corporate a XXXX to basis, revenue per the earnings prior XX% An in with revenue the $X.X increased increased corporate grew usage. total $X,XXX. quarter customer corporate million XX% account at stream. for SoHo. QX sequential or million. delivered increase

one-time Primarily However, decrease ads a to of of completed. X,XXX planned $X,XXX. has This in of approximately corporate the year-over-year there and which migration a was related decrease paid $X,XXX. addition been a included accounts turn MyFax

in slightly with compared or SoHo a of Let's FX a $X have delivered million our down and million adjusted SoHo. negative or line usage performance, lowering ads range delivering X.X%. $XX.X The to per XX,XXX. the and QX on Churn on were decrease $XXX,XXX performance, a sequentially in-line been expectations points. smaller increases. increased of by with was the year-over-year increased with four prior call, basis year X.X%. move revenue Annual last sequentially the the would improved we SoHo presented Results revenue paid on quarter-over-quarter $XX.X revenue account quarter's million, of base,

decrease The spend. XX.X was or QX QX primarily additional is compensation Merit to XXXX marketing increases compared service, new for increase X.X% outside in EBITDA adjusted lower and for attributable For XXXX. planned to hires.

All of $XX guidance. cash with the operating $XX.X million, investing Cash-flow, $X.X activities from was activities budget used a balance in and Cash Cash were million. finished were was the XXXX we in contemplated activities used flow $XX.X which of quarter million. in cash million. and financing

Scott in guidance are As we reaffirming of mentioned presentation, our the adjusted adjusted for EBITDA, the beginning revenues, non-GAAP EPS. and full-year

to the non-GAAP section $XXX between we formal the million $XXX podium now Operator EBITDA concludes be non-GAAP the the will As and of between between Thank $XXX to million million million revenues This expect and and adjusted a return you. and reminder, I Q&A my $XXX adjusted EPS $XXX. remarks and call. $XXX for

Operator

Thank you.

moment, to limit a while conducting question today your Jon One line question. question-and-answer In CJS live. Jon, is now time the begin. is Securities. first Instructions] we session. coming Tanwanteng from your And yourself will please ask We interest please [Operator of we you that one from be

Jonathan Tanwanteng

you taking the wondering you as good afternoon, I of What my business this view tend could this expectations questions them. we if macro SoHo especially you expect nice macro similar downturns the to Hi, year, everyone. and bit -- Thank for do as about business during high-level for that quarter. a through do a take go and year? you little was does talk

Scott Turicchi

Yes. Sure., John.

either couple a well the or with of One on is aware, SoHo less Consensus, that the for affect business. and those headwinds that. are think as the So you're most FX, familiar of things I tailwinds

in the that relative to believe $X notably those We mentioned XXX,XXX of the quarter, and year. of the affected balance opening will the expect QX be on my of in through the of I Japanese for of is to $XXX,XXX the of we the total And based first FX pound, about there Jim headwinds, as headwinds euro those SoHo million rates in that XXXX, current business. to As currencies. close QX mentioned yen. remarks, persist spot

So expect part things as the some quarter. while that, range allow give X we has that will And incremental quarter fact and the business than that of said to that I'll guidance. headwinds gave our close see another the some SoHo that that percentage we of we some pass. and of does are mitigate the come range within to to gave last actions to of second you point. we turn hopefully in operate perform Having to opportunities we probably over to it do you taking FX It lower at the if some within better think you end us John range last I the of to the

'XX in to data, could recession a a is the going in late through a some there the obviously you because how roughly to which about major asked you was give recession. secondary late 'XX. can I'm What last of a Now, question, caveats, behave tell you business you was give time but going to I'm lot mid

very in recession, as and clearly now and people recession severe, era. time that unanticipated. known frame was the that time were this the what a was great was And quite long So business expecting different ago, unlike

data, you take So interesting you've and if I into the said of go and company you is got you SoHo to rates think business. apples-to-apples not the primarily at and SMB on Having the I smaller calculated the was that an pull tell some basis. What the all effect. note, the actually elements that, are cancel time to back will

was one had the the other other they're were not while you the the going delta and numbers, two business, method fax is So The through being because that substantially non-comparable in the of there the cloud for businesses to number crept absolute reasons. that give business changes, Cloud calculation I'm metrics.

that So preliminary Lehman September information in bankrupt that recall XXth went background with of 'XX. of QX as all Brothers 'XX, you'll

vis the QX the So tail impact there vis QX. in it discernible QX. really prior - two meaning was cancel and the of QX was rate no quarters, end almost In -a

three otherwise However, was rate In about XX of of by QX. for quarters. recession of timeframe cancel of a it points. its 'XX. base it for come then months over into a increase the basis correlative per that this basis the have of data 'XX, there came reason notice cancels point at X. base. in time And basis is still the the longer QX it would month stronger historical beginning worst I QX in this to decline XX That will anticipatory QX of think 'XX, in and How another that back What be the have that that rate that further It's two been of pre came The that the And XX out was beyond. cancel yet I determined of QX continued is by was you of X. accelerated. a to example. recessionary XX, would in to points, because, way give I more that to levels. Part such recession in be

think the less than evolved that the that us to tethered importantly channel to channels recession, should mentioned time corporate of probably most has which viewed our increasing revenues, are I the as SoHo healthcare, about substantially it's we're XX%, buffer. about a one think the overtaken most XX% be is probably talking from business which be draconian probably recession. the that customers natural in fragile. 'XX but gives we Certainly, I Obviously has

term intermediate the I things impact more in other and mitigating is see, it is. though. deep That duration recession, we'll are And as say, near of but in then how terms it's well of what the so these and of to the all have

part the and opening some now. year. the pursuing are flat to John in As of it's mitigate we the There expand for FX headwinds SoHo for actions wont bring dive in some to you terms that I are upon mentioned some of back and closer John, to in it will channel, those. revenue in balance of remarks, my of

John Nebergall

that. Scott. you, appreciate Thank I

We number of about balance this programs we're have the we a of at as year. that look excited

interest deal make market up be that point, some is optimize affiliate First, that of jSign with prospects jSign, to product good the anticipation. have be couple And this a of from we month. At development marketplace. SoHo items that product for will those into Those had marketplace to the we look a needed clean had affiliates brought we and by that that great finished end we of will our an part the at overall affiliate of as set, channel. through and

been been have we've partnership identify with in working optimization our the we to good in these data be appear to a we really information areas to do take some strengthen have that able the that engine looking in we to acquisition program. at Google Second, at looking search specific steps improvement, and to of intend by path specifically our have taking And steps. and

month intend that implement saw get next that some I'd general say in were we also and things this in those base, we to So month, this the lift particularly those. few quarter a to out and SoHo of start encouraging.

that And were four what in we we about QX stabilized, Our frankly in we of just likewise are QX paid 'XX ads year 'XX. this in in better were basis more QX even able of with we of about 'XX. in QX ad overall in saw of of than points QX accounts acquisition, as to by acquire paid churn here we were That sequentially year. than -- improved were last terms XX,XXX

accounts and helping have with the largely stabilized revenue of driven a acquisition commitment usage think see And that And So is the rate to deal we're engaging shows product. to I the strong subscribers actually usage. average great continuing by per us things improved. has our

revenue. look FX will we have a that is But for as like balance of what forecast our for Scott Scott As the have said, affecting said, we year. a the that

Jonathan Tanwanteng

great some Got it. That's input. you. Thank

Operator

line Sidoti from & Burns is live. [Operator next you. Company. Instructions]. The Greg, is Thank your question coming from Greg

GregoryBurns

like typical standalone adding existing you. be of the what like In that that terms was sold is -- or an or as Thank and is from upgrade account? can Clarity, then effects ARPU sold deployments, to Clarity that Unite only uplift a is something into an

Scott Turicchi

Excellent question. work with Clarity to optimized is eFax.

it processing way to as So modern and that turn technology natural language set the is AI take by packs data is database. and really to into typically structured unstructured a that that use in data a consumable created

overall Clarity also may And out. how eFax. an uplift, with That's I number it you to dependencies to which are It customer that is that the kind of fields the individual Unite. require protocol doesn't want us work as Our we're to extraction render have in optimized And program, want said, us. that of with of on extract. customer there rolling terms

a and definitely can on if per a depend vary dollar upon from it basis going to that of from a page us again, up they're what anywhere to So will, is something exactly each extract from you quarter asking into. to

Gregory Burns

Okay.

of volume a product more than So based it's a subscription? subscription? affects It

Scott Turicchi

Yes.

John Nebergall

Yeah, a with and exceed to of products, it when there's all a starts then limits. then subscription as transaction it with our you component

Gregory Burns

Thank you. Great. Okay.

Operator

questions other at call hand Scott no were now there to And like closing remarks. you. time. some Turicchi this would I to for in the the Thank back queue

Scott Turicchi

over then the we about earnings we've the our three Thank months But very call. day sometime the in that likely in probably will us the of be Paul. mid-July, Xth. a that a you XXXX and to announcing coming We We'll exact participating appreciate of much, for also today is week various the to put two out QX having be Great. August conferences QX call. release conference release, you joining

of put as for of both information via any out next release Thank well you. the months. over will press couple standby other So those of that as import that is releases,

Operator

conference. today's Thank ladies This and conclude gentlemen. you, does

time for lines day. your Thank a have wonderful your may you participation. You at and disconnect this

Consensus Cloud Solutions (CCSI) 16 May 222022 Q1 Earnings call transcript