Mr. Jamal Baksh reports

CONSTELLATION SOFTWARE INC. ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2023 AND DECLARES QUARTERLY DIVIDEND

Constellation Software Inc. today released its financial results for the first quarter ended March 31, 2023, and declared a $1.00 per share dividend payable on July 11, 2023, to all common shareholders of record at close of business on June 20, 2023. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). Please note that all dollar amounts referred to in this press release are in U.S. dollars unless otherwise stated.

This press release should be read in conjunction with the company's unaudited condensed consolidated interim financial statements for the three months ended March 31, 2023, and the accompanying notes, the company's management discussion and analysis for the three months ended March 31, 2023, and with its annual consolidated financial statements, prepared in accordance with international financial reporting standards (IFRS) and the company's annual management's discussion and analysis for the year ended Dec. 31, 2022, which can be found on SEDAR and on the company's website. Additional information about the company is also available on SEDAR.

Q1 2023 headlines:

• Revenue increased 34 per cent (2-per-cent organic growth, 5 per cent after adjusting for changes in foreign exchange rates) to $1,919-million compared with $1,431-million in Q1 2022.
• Net income attributable to common shareholders was $94-million for Q1 2023 ($4.44 on a diluted per share basis), compared with net income attributable to common shareholders of $98-million ($4.63 on a diluted per share basis) in Q1 2022.
• A number of acquisitions were completed for aggregate cash consideration of $452-million (which includes acquired cash). In conjunction with the acquisition of WideOrbit Inc., the company issued 10,204,294 special shares to the seller for an initial subscription price of $222. Deferred payments associated with these acquisitions have an estimated value of $44-million resulting in total consideration of $718-million.
• Cash flows from operations (CFO) were $632-million, an increase of 27 per cent, or $134-million, compared with $498-million for the comparable period in 2022.
• Free cash flow available to shareholders (FCFA2S) increased $129-million to $453-million compared with $324-million for the same period in 2022.

Total revenue for the quarter ended March 31, 2023, was $1,919-million, an increase of 34 per cent, or $488-million, compared with $1,431-million for the comparable period in 2022. The increase is primarily attributable to growth from acquisitions as the company experienced organic growth of 2 per cent in the quarter, 5 per cent after adjusting for the impact of changes in the valuation of the United States dollar against most major currencies in which the company transacts business. For acquired companies, organic growth is calculated as the difference between actual revenues achieved by each company in the financial period following acquisition compared with the estimated revenues they achieved in the corresponding financial period preceding the date of acquisition by Constellation. Organic growth is not a standardized financial measure and might not be comparable with measures disclosed by other issuers.

The net income attributable to common shareholders of CSI for the quarter ended March 31, 2023, was $94-million compared with net income of $98-million for the same period in 2022. On a per-share basis this translated into net income per basic and diluted share of $4.44 in the quarter ended March 31, 2023, compared with $4.63 for the same period in 2022. There was no change in the number of shares outstanding.

For the quarter ended March 31, 2023, CFO increased $134-million to $632-million compared with $498-million for the same period in 2022 representing an increase of 27 per cent.

For the quarter ended March 31, 2023, FCFA2S increased $129-million to $453-million compared with $324-million for the same period in 2022 representing an increase of 40 per cent.

About Constellation Software Inc.

Constellation's common shares are listed on the Toronto Stock Exchange under the symbol CSU. Constellation acquires, manages and builds vertical market software businesses.

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