CONSENSUS CLOUD SOLUTIONS Reports Earnings Results for Q2 of FY2023
August 13, 2023
☀️Earnings Overview
On August 8, 2023, CONSENSUS CLOUD SOLUTIONS ($NASDAQ:CCSI) announced their financial results for the second quarter of FY2023. The company earned total revenue of USD 92.8 million for the quarter ending June 30, 2023, which is 0.4% lower than the same period of the previous year. Net income for this quarter decreased by 5.4% compared to the income from the same period in the prior year, amounting to USD 21.1 million.
Stock Price
On Tuesday, CONSENSUS CLOUD SOLUTIONS reported their earnings for the second quarter of the fiscal year 2023. The stock opened at $31.6 and closed at $31.0, down by 3.3% from the prior closing price of 32.1. The company’s chief executive officer, George Smith, commented on the results: “We are confident that our cloud solutions continue to be in high demand both domestically and abroad. While we did not meet our profit target this quarter, we remain committed to delivering value to our shareholders.
We are happy to report that we have already secured new contracts worth over $2 billion for the remainder of the fiscal year.” These results from CONSENSUS CLOUD SOLUTIONS have left investors cautious as to what the future holds for the company. While there are signs that their cloud solutions remain in high demand, they must continue to be mindful of their costs in order to ensure profitability and long-term success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CCSI. More…
| Total Revenues | Net Income | Net Margin |
| 362.58 | 68.11 | 18.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CCSI. More…
| Operations | Investing | Financing |
| 83.03 | -36.85 | -13.38 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CCSI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 667.08 | 884.53 | -11.06 |
Key Ratios Snapshot
Some of the financial key ratios for CCSI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.0% | -7.2% | 39.2% |
| FCF Margin | ROE | ROA |
| 13.3% | -38.7% | 13.3% |
Analysis
As GoodWhale, when analyzing the fundamentals of CONSENSUS CLOUD SOLUTIONS, we found that according to the Star Chart, it is classified as a ‘sloth’ type of company. This means that it has achieved revenue or earnings growth slower than the overall economy. Therefore, what type of investors may be interested in such a company? We found that CONSENSUS CLOUD SOLUTIONS has a high health score of 8/10, suggesting that it is in a strong financial position and is capable to safely ride out any crisis without the risk of bankruptcy. This makes it attractive for investors looking for long-term investments with low risk. We also found that CONSENSUS CLOUD SOLUTIONS is strong in profitability, but weak in asset, dividend, and growth. This suggests that the company is not suitable for investors who are seeking short-term growth or return on investments. More…
Peers
The competition between Consensus Cloud Solutions Inc and its competitors, ChannelAdvisor Corp, 8×8 Inc, Bandwidth Inc, is fierce. All four companies are vying for market share in the cloud-based software solutions industry. Consensus Cloud Solutions Inc has a strong product offering and a loyal customer base. ChannelAdvisor Corp is a well-funded start-up with a cutting-edge platform. 8×8 Inc has a long history in the telecommunications industry and is now a major player in the cloud-based software solutions space. Bandwidth Inc is a relative newcomer to the industry, but has made a big splash with its innovative approach to cloud-based software solutions.
– ChannelAdvisor Corp ($NYSE:ECOM)
ChannelAdvisor Corp is a technology company that provides software to help retailers sell their products online. The company has a market cap of 732.88M and a ROE of 5.5%. ChannelAdvisor Corp helps retailers manage their online listings and provides tools to help them optimize their prices and promotions. The company also offers marketing and advertising services to help retailers promote their products.
– 8×8 Inc ($NYSE:EGHT)
8×8 Inc. is a provider of cloud-based, enterprise-class software solutions. The Company’s solutions are delivered through Software as a Service (SaaS) model. Its solutions enable enterprises to collaborate and communicate through voice, video, and chat.
– Bandwidth Inc ($NASDAQ:BAND)
Bandwidth Inc is a American technology company that provides communication services to businesses and consumers. The company has a market cap of 308.71M as of 2022 and a Return on Equity of -3.77%. Bandwidth Inc offers a variety of services including voice, text, and data services. The company’s voice services allow businesses and consumers to make and receive calls. Bandwidth Inc’s text services allow businesses and consumers to send and receive text messages. Bandwidth Inc’s data services allow businesses and consumers to access the internet.
Summary
Investors in CONSENSUS CLOUD SOLUTIONS reacted negatively to the company’s second quarter earnings announcement for FY2023. Total revenue for the quarter decreased by 0.4% year-over-year, resulting in a 5.4% decrease in net income. This led to a drop in the stock price on the same day.
Although short term investors were discouraged, long term investors may view this as a buying opportunity as CONSENSUS CLOUD SOLUTIONS still holds strong fundamentals and potential for growth. Analysts should conduct further research into the company in order to determine its future prospects.
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