Consensus Cloud Solutions Inc (CCSI) stock plummeted by 5.64% intraday on Thursday, as the company reported lower-than-expected revenue growth and provided a tepid outlook for 2025.
In its Q4 2024 earnings release, CCSI announced a 3.4% year-over-year decline in full-year 2024 revenue to $350.4 million, primarily driven by a 13.3% drop in its SoHo business. While the corporate segment showed a 7.1% revenue increase in Q4, the company expects only modest corporate revenue growth of around 6.5% in 2025.
Furthermore, CCSI's plan to increase investments in go-to-market operations, such as expanding sales headcount and marketing efforts, is projected to temporarily impact its EBITDA margins by approximately 1 percentage point in 2025. The company's 2025 revenue guidance range of $343 million to $357 million and adjusted EBITDA guidance of $179 million to $190 million fell short of analysts' expectations, contributing to the stock's decline.