Constellation Software Inc. (“Constellation” or the “Company”) announced its financial results for the second quarter ended June 30, 2024 and declared a $1.00 per share dividend payable on October 10, 2024 to all common shareholders of record at close of business on September 20, 2024. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). Please note that all dollar amounts referred to in this press release are in U.S. Dollars unless otherwise stated.
The following press release should be read in conjunction with the Company’s Unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2024 and the accompanying notes, our Management Discussion and Analysis for the three and six months ended June 30, 2024 and with our annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our annual Management’s Discussion and Analysis for the year ended December 31, 2023, which can be found on SEDAR+ at www.sedarplus.com and on the Company’s website www.csisoftware.com. Additional information about the Company is also available on SEDAR+ at www.sedarplus.com.
Q2 2024 and Subsequent Headlines:
- Revenue grew 21% (2% organic growth, 3% after adjusting for changes in foreign exchange rates) to $2,468 million compared to $2,039 million in Q2 2023.
- Net income attributable to common shareholders increased 71% to $177 million ($8.35 on a diluted per share basis) from $103 million ($4.88 on a diluted per share basis) in Q2 2023.
- A number of acquisitions were completed for aggregate cash consideration of $451 million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $173 million resulting in total consideration of $624 million.
- Cash flows from operations (“CFO”) were $265 million, an increase of 116%, or $143 million, compared to $123 million for the comparable period in 2023.
- Free cash flow available to shareholders1 (“FCFA2S”) increased $168 million to $182 million compared to $14 million for the same period in 2023.
Total revenue for the quarter ended June 30, 2024 was $2,468 million, an increase of 21%, or $430 million, compared to $2,039 million for the comparable period in 2023. For the first six months of 2024 total revenues were $4,822 million, an increase of 22%, or $864 million, compared to $3,958 million for the comparable period in 2023. The increase for both the three and six month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 2% and 3% respectively, 3% for both periods after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.
Net income attributable to common shareholders of CSI for the quarter ended June 30, 2024 was $177 million compared to $103 million for the same period in 2023. On a per share basis this translated into a net income per diluted share of $8.35 in the quarter ended June 30, 2024 compared to net income per diluted share of $4.88 for the same period in 2023. For the six months ended June 30, 2024, net income attributable to common shareholders of CSI was $282 million or $13.31 per diluted share compared to $198 million or $9.32 per diluted share for the same period in 2023.
For the quarter ended June 30, 2024, CFO increased $143 million to $265 million compared to $123 million for the same period in 2023 representing an increase of 116%. For the first six months of 2024, CFO increased $247 million to $1,002 million compared to $755 million during the same period in 2023, representing an increase of 33%.
For the quarter ended June 30, 2024, FCFA2S increased $168 million to $182 million compared to $14 million for the same period in 2023. For the six months ended June 30, 2024, FCFA2S increased $161 million to $628 million compared to $467 million for the same period in 2023 representing an increase of 34%.
