Mr. Jamal Baksh of Topicus.com reports

CONSTELLATION SOFTWARE INC. AND TOPICUS.COM INC. ANNOUNCE RESULTS FOR TOPICUS.COM INC. FOR THE SECOND QUARTER ENDED JUNE 30, 2023

Topicus.com Inc., in a joint release with Constellation Software Inc., today released the financial results for Topicus.com for the second quarter ended June 30, 2023. Please note that all amounts referred to in this news release are in euros unless otherwise stated.

This news release should be read in conjunction with the company's unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2023, and the accompanying notes, the management's discussion and analysis for the three and six months ended June 30, 2023, and the annual consolidated financial statements of Topicus.com for the year ended Dec. 31, 2022, which were 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 Topicus.com's website. Additional information about Topicus.com is also available on SEDAR+.

Q2 2023 headlines:

• Revenue increased 23 per cent (6-per-cent organic growth) to 272.1 million euros, compared with 220.6 million euros in Q2 2022.
• Net income increased to 23.5 million euros (0.18 euro on a diluted per-share basis) from 20.1 million euros (0.16 euro on a diluted per-share basis).
• Acquisitions were completed for aggregate cash consideration of 63.4 million euros (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of 7.6 million euros, resulting in total consideration of 71.1 million euros.
• Cash flows from operations (CFO) increased 16.7 million euros to negative 15.4 million euros, compared with negative 32.0 million euros in Q2 2022, representing an increase of 52 per cent.
• Free cash flow available to shareholders (1) (FCFA2S) increased 13.7 million euros to negative 13.1 million euros, compared with negative 26.8 million euros in Q2 2022, representing an increase 51 per cent.

Total revenue for the quarter ended June 30, 2023, was 272.1 million euros, an increase of 23 per cent or 51.5 million euros compared with 220.6 million euros for the comparable period in 2022. For the first six months of 2023, total revenues were 536.5 million euros, an increase of 26 per cent or 112.1 million euros, compared with 424.4 million euros for the comparable period in 2022. The increase for both the three-month and six-month periods compared with the same periods in the prior year is primarily attributable to growth from acquisitions as the company experienced organic growth of 6 per cent and 7 per cent.

Organic growth is not a standardized financial measure and might not be comparable with measures disclosed by other issuers.

Net income for the quarter ended June 30, 2023, increased 3.4 million euros to 23.5 million euros, compared with 20.1 million euros for the same period in 2022. On a per-share basis, this translated into net income per basic and diluted share of 0.18 euro in the quarter ended June 30, 2023, compared with net income per basic and diluted share of 0.16 euro for the same period in 2022. For the six months ended June 30, 2023, net income increased 4.1 million euros to 44.6 million euros, compared with 40.5 million euros for the same period in 2022. On a per-share basis, this translated into net income per basic and diluted share of 0.35 euro in the six months ended June 30, 2023, compared with 0.30 euro for the same period in 2022.

For the quarter ended June 30, 2023, CFO was negative 15.4 million euros, compared with negative 32.0 million euros for the same period in 2022. Many of the businesses invoice customers for annual software maintenance fees in Q1 each year, resulting in a disproportionate amount of cash being received in the first quarter as compared with the remaining three quarters. For the six months ended June 30, 2023, CFO increased 14.6 million euros to 158.6 million euros, compared with 144.0 million euros for the same period in 2022, representing an increase of 10 per cent.

For the quarter ended June 30, 2023, FCFA2S was negative 13.1 million euros, compared with negative 26.8 million euros for the same period in 2022. For the six months ended June 30, 2023, FCFA2S increased 53.3 million euros to 88.0 million euros, compared with 34.7 million euros for the same period in 2022, representing an increase of 153 per cent. The increase for the six-month period is primarily as a result of the dividend paid to the preferred securityholders during the quarter ended March 31, 2022.

About Topicus.com Inc.

Topicus.com's subordinate voting shares are listed on the Toronto Venture Stock Exchange under the symbol TOI. Topicus.com acquires, manages and builds vertical market software businesses.

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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