Consensus Cloud Solutions, Inc. Q2 FY2025 earnings call

• Scott Turicchi noted a strong Q2 with total revenue growth, adjusted EBITDA margin of 54.8% exceeding expectations, and discussed goals like acquiring healthcare customers, managing cost structure, retiring notes, and optimizing SoHo cash flow. - Johnny Hecker highlighted corporate channel growth, health care vertical contribution, VA rollout progress, FedRAMP high certification benefits, and SoHo channel optimization efforts. - Jim Malone provided financial details including consolidated revenue increase, adjusted EBITDA, free cash flow, equity and bond repurchases, and guidance updates.

Corporate Segment: In Q2 2025, corporate revenue reached $55.3 million, a 6.9% increase from Q2 2024. The trailing 12-month revenue retention rate climbed to 102%, and the corporate customer base grew to approximately 63,000 at the close of Q2. SoHo Segment: Q2 2025 revenue was $32.4 million, a 9.4% decrease from Q2 2024. SoHo ARPA was $15.62, and the SoHo cancel rate was 3.84%.

• Full year 2025 guidance: Revenue between $343 million and $357 million, adjusted EBITDA between $179 million and $190 million, adjusted EPS between $5.25 and $5.65. - Q3 2025 guidance: Revenue between $85.9 million and $89.9 million, adjusted EBITDA between $44.4 million and $47.4 million, adjusted EPS between $1.33 and $1.42.

• Risks related to regulatory changes such as Medicaid and Medicare cuts from the One Big Beautiful Bill Act. - Market volatility and potential impact on provider spending affecting demand for services.

Q: Thoughts on demand and pipeline with hospitals?

A: Johnny Hecker stated that they're not experiencing slowdown from hospitals, serving a broad spectrum of healthcare customers across sub-verticals, and their services offer clear ROI.

Q: Drivers of revenue retention rate?

A: Johnny Hecker mentioned large accounts, EC Fax offering, go-to-market realignment, and SMB programs as drivers.

Q: Public sector sales cycle and Accenture partnership?

A: Johnny Hecker discussed varied sales cycles in public sector (from a few months to multiple years) and positive partnership with Accenture, including cloud service provider ship transfer and close collaboration on deals.