Constellation Software Inc. (TSX: CSU) (NASDAQ: CSU) has announced the release of its financial results for the third quarter ended September 30, 2020.
The company reported revenue of $1.25 billion, a growth of 8.2% compared to the same period last year. Adjusted EBITDA increased by 10.2% to $719.8 million, while net income was up 10.6% to $619.9 million.
The company’s recurring revenue grew by 8.2% to $1.17 billion, driven by strong organic growth of 4.9%. This was partially offset by a decline in acquisitions and foreign exchange.
Gross profit increased by 8.3% to $1.15 billion, while operating income rose 10.2% to $719.8 million. Net income also increased by 10.6% to $619.9 million.
The company’s cash flow from operations increased by 6.2% to $608.4 million, while free cash flow increased by 6.2% to $541.2 million.
Constellation Software has a strong balance sheet and ended the quarter with $1.3 billion in cash and short-term investments. The company’s total debt was $2.6 billion.
The company’s Board of Directors has declared a quarterly dividend of $0.50 per share, payable on December 15, 2020 to shareholders of record as of December 1, 2020.
Constellation Software Inc. is a global provider of software and services to businesses in the public and private sectors. The company operates through two segments: the Public Sector and the Private Sector.
The Public Sector segment provides software and services to government, healthcare, and education customers. This segment includes businesses such as Harris Computer Systems, Versaterm, and Cogsdale Corporation.
The Private Sector segment provides software and services to businesses in a variety of industries, including automotive, retail, construction, and manufacturing. This segment includes businesses such as Visual Retail Plus, Vision33, and Constellation Homebuilder Systems.
Constellation Software Inc. is a leader in its industry and is well-positioned for continued growth. The company has a strong balance sheet, a solid track record of organic growth, and a steady stream of acquisitions.
The company’s third quarter financial results demonstrate its ability to generate strong revenue and earnings growth. The company’s recurring revenue grew by 8.2%, while adjusted EBITDA and net income increased by 10.2% and 10.6%, respectively.
The company also has a strong balance sheet, with $1.3 billion in cash and short-term investments and total debt of $2.6 billion. The company’s Board of Directors has declared a quarterly dividend of $0.50 per share, payable on December 15, 2020 to shareholders of record as of December 1, 2020.
Constellation Software Inc. is a global provider of software and services to businesses in the public and private sectors. The company operates through two segments: the Public Sector and the Private Sector. The Public Sector segment provides software and services to government, healthcare, and education customers, while the Private Sector segment provides software and services to businesses in a variety of industries, including automotive, retail, construction, and manufacturing.
The company reported strong financial results for the third quarter of 2020, with revenue up 8.2%, adjusted EBITDA up 10.2%, and net income up 10.6%. The company’s recurring revenue grew by 8.2%, while its cash flow from operations and free cash flow both increased by 6.2%.
Constellation Software Inc. is well-positioned for continued growth, with a strong balance sheet, a solid track record of organic growth, and a steady stream of acquisitions. The company’s Board of Directors has declared a quarterly dividend of $0.50 per share, payable on December 15, 2020 to shareholders of record as of December 1, 2020. Investors should consider Constellation Software Inc. as a potential investment opportunity.