Constellation Software says Q3 profit fell 12% to US$107M despite higher revenues

TORONTO – Constellation Software Inc. is reporting that its net income attributable to shareholders fell to US$107 million in its latest quarter despite a 30 per cent growth in revenue.

The Toronto-based technology firm, which reports in U.S. dollars, says the profit equalled US$5.07 per diluted share, compared with US$5.76 per share or US$122 million a year earlier.

Revenue for the three months ended Sept. 30 was US$1.3 billion, up from US$1 billion in the third quarter of 2020.

Cash flows from operations increased 25 per cent to US$292 million, while free cash flow available to shareholders increased to US$226 million from US$181 million a year ago.

John Billowits, a former CEO of Constellation’s Vela operating group and a current director, has been appointed chairman to replace Mark Leonard, who will remain president.

Constellation, which acquires, manages and builds vertical market software businesses, says it would pay a dividend of US$1 per share on Jan. 11 to all shareholders as of Dec. 20.

This report by The Canadian Press was first published Nov. 4, 2021.

Companies in this story: (TSX:CSU)