May 12, 10:20 PM

Constellation Software Q1 Revenue Up 13%, Net Income +10%, Acquisitions $110M; GigaCloud Technology Posts 8% Revenue Growth

Constellation Software Inc. reported its first-quarter 2025 financial results with revenue of $2.65 billion, representing a 13% year-over-year increase, though below the $2.76 billion consensus estimate. Net income rose by 10%, and free cash flow to shareholders increased by 14%, supported by a 12% growth in cash flows from operations. Organic growth was modest at 2%, with core CSI sales excluding Topicus and LMN up 11.8% year-over-year, the lowest since 2021. The Altera segment experienced a 13% decline in organic growth compared to a 5% decline in 2024. Margins remained strong, and the company spent $110 million on acquisitions during the quarter, including Topicus' $227 million deal with Asseco. However, standalone acquisitions were $69 million, the lowest since Q3 2020. The company expects a substantial acquisition activity in the second quarter, with $203 million deployed so far, implying a potential $435 million for the full quarter. Earnings per share came in at $5.44, missing the forecast of $9.29. A dividend of $1.00 per share is payable in July 2025. Analyst sentiment remains mixed but predominantly positive with most maintaining a buy rating despite the earnings miss. Separately, GigaCloud Technology Inc. reported first-quarter 2025 revenue of $271.9 million, up 8% year-over-year but below consensus by over 3%. EPS was $0.68, nearly 9% below analyst forecasts. Service revenue increased by 23%, driven by growth in Europe, alongside improved gross margins and strong liquidity.

#Topicus #LMN #Altera #Asseco #Europe

Written with ChatGPT (GPT-4).

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