Mr. Jamal Baksh reports

CONSTELLATION SOFTWARE INC. ANNOUNCES RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2023 AND DECLARES QUARTERLY DIVIDEND

Constellation Software Inc. today released its financial results for the second quarter ended June 30, 2023, and declared a $1.00 per share dividend payable on Oct. 11, 2023, to all common shareholders of record at close of business on Sept. 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 United States 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 and six months ended June 30, 2023, and the accompanying notes, the company's management discussion and analysis for the three and six months ended June 30, 2023, and with its annual consolidated financial statements, prepared in accordance with international financial reporting standards (IFRS) and its 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+.

Q2 2023 and subsequent headlines:

• Revenue grew 26 per cent (4-per-cent organic growth, 5 per cent after adjusting for changes in foreign exchange rates) to $2,039-million compared with $1,618 million in Q2 2022.
• A $94-million expense related to the increase in fair value of redeemable preferred securities was incurred in the quarter, which is non-cash related. Fair value of the preferred securities is primarily dependent on the price movement of Lumine Group Inc.'s (TSX-V: LMN) subordinate voting shares.
• Net income attributable to common shareholders decreased 18 per cent to $103-million ($4.88 on a diluted per share basis) from $126-million ($5.94 on a diluted per share basis) in Q2 2022.
• A number of acquisitions were completed for aggregate cash consideration of $392-million (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of $114-million resulting in total consideration of $506-million.
• Cash flows from operations (CFO) were $123-million, an increase of 58 per cent, or $45-million, compared with $78-million for the comparable period in 2022.
• Free cash flow available to shareholders (FCFA2S) increased 22 per cent or $3-million to $14-million compared with $12-million for the same period in 2022.
• On July 17, 2023, the company announced that its Perseus operating group has entered into a binding commitment with Intercontinental Exchange Inc. and Black Knight Inc. to acquire Black Knight's Optimal Blue business for $700-million.
• On Aug. 3, 2023, the company announced a rights offering pursuant to which the company intends to distribute rights that will entitle holders of common shares of the company on the applicable record date to purchase up to $700-million (Canadian) aggregate principal amount of debentures of the company.

Total revenue for the quarter ended June 30, 2023, was $2,039-million, an increase of 26 per cent, or $421-million, compared with $1,618-million for the comparable period in 2022. For the first six months of 2023 total revenues were $3,958-million, an increase of 30 per cent, or $908-million, compared with $3,050-million for the comparable period in 2022. The increase for both the three- 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 4 per cent and 3 per cent respectively, 5 per cent for both periods after adjusting for the impact of changes in the valuation of the U.S. dollar against most major currencies in which the company transacts business. 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 June 30, 2023, was $103-million compared with net income of $126-million for the same period in 2022. On a per-share basis this translated into a net income per diluted share of $4.88 in the quarter ended June 30, 2023, compared with net income per diluted share of $5.94 for the same period in 2022. For the six months ended June 30, 2023, net income attributable to common shareholders of CSI was $198-million or $9.32 per diluted share compared with $224-million or $10.58 per diluted share for the same period in 2022.

For the quarter ended June 30, 2023, CFO increased $45-million to $123-million compared with $78-million for the same period in 2022 representing a increase of 58 per cent. For the first six months of 2023, CFO increased $179-million to $755-million compared with $576-million during the same period in 2022, representing a increase of 31 per cent.

For the quarter ended June 30, 2023, FCFA2S (free cash flow available to shareholders) increased $3-million to $14-million compared with $12-million for the same period in 2022 representing an increase of 22 per cent. For the six months ended June 30, 2023, FCFA2S increased $133-million to $467-million compared with $335-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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