Q2 and 1H 2024 - Constellation Software & Its Spin-Out Companies
CSI standalone delivering solid growth on all key metrics
Last Friday, Constellation Software Inc. (CSI) published its Q2 report, and, as always, it’s worthwhile digging deeper into the performance of its spins (TOI and LMN), CSI on a standalone basis, cash flows, margins, M&A activity et al.
For a review of CSI’s Q1 performance, we’d like to direct you to the below article, although we’ll re-highlight a couple of elements.
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Q2 was quite strong for CSI standalone on multiple fronts. While Q1 was somewhat disappointing in terms of cash flow, as mentioned in the Topicus review, Q2 experienced a significant turnaround.
Significance of CSI Standalone
Remember that the numbers in the press release above are on a fully-consolidated basis. Given that roughly 90% of total NOPAT destined/attributable to CSI shareholders comes from CSI standalone (that is: CSI excl. the consolidated numbers of Lumine and Topicus), we believe a breakdown of its performance is necessary to gauge underlying momentum.