Consensus Cloud Solutions, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a decline in revenue but an increase in net income compared to the previous fiscal period.

For Q3 2024, the company generated revenues of $87.8 million, a decrease of 3% from $90.6 million in Q3 2023. The nine-month revenue also fell by 4%, totaling $263.4 million compared to $274.8 million in the same period last year. The decline in revenue was primarily attributed to a 14% decrease in the Small Office Home Office (SoHo) segment, which was partially offset by a 5% increase in corporate business revenue.

Despite the revenue decline, Consensus Cloud Solutions reported a net income of $21.1 million for Q3 2024, down from $24.0 million in Q3 2023. However, for the nine months ended September 30, 2024, net income increased to $71.4 million from $60.5 million in the prior year. This increase in net income for the nine-month period was supported by a reduction in total operating expenses, which decreased from $111.4 million to $95.6 million.

The company’s total assets as of September 30, 2024, were $622.5 million, down from $647.3 million at the end of 2023. Cash and cash equivalents also saw a significant decline, falling to $54.6 million from $88.7 million. Total current liabilities increased to $85.3 million from $71.4 million, while long-term debt decreased to $603.1 million from $725.4 million, reflecting the company's ongoing debt repurchase program. During the nine months ended September 30, 2024, Consensus retired $124.2 million in principal of its senior notes, compared to no retirements in the same period of 2023.

The company’s effective tax rate for Q3 2024 was 22.5%, a decrease from 23.9% in Q3 2023, attributed to changes in the geographical mix of income. However, the effective tax rate for the nine-month period increased to 25.7% from 23.8% in the previous year.

In terms of strategic developments, Consensus Cloud Solutions has been actively managing its debt, with a debt repurchase program approved for up to $300 million, which is set to expire on November 9, 2026. The company has also maintained its common stock repurchase program, allowing for up to $100 million in repurchases through February 2025, although no shares were repurchased during Q3 2024.

Overall, while the company faced revenue challenges, it demonstrated improved profitability and continued efforts to manage its debt effectively.