Mr. Jamal Baksh reports

CONSTELLATION SOFTWARE INC. AND TOPICUS.COM INC. ANNOUNCE RESULTS FOR TOPICUS.COM INC. FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2023

Topicus.com Inc., in a joint release with Constellation Software Inc., today released its financial results for Topicus.com for the fourth quarter and year ended Dec. 31, 2023. Please note that all amounts referred to in this press release are in euros unless otherwise stated.

This press release should be read in conjunction with the annual consolidated financial statements of Topicus.com for the year ended Dec. 31, 2023, which the company 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, 2023, which can be found on SEDAR+ and on Topicus.com's website. Additional information about Topicus.com is also available on SEDAR+.

Q4 2023 headlines:

• Revenue increased 17 per cent (7-per-cent organic growth) to 309.7 million euros compared with 263.7 million euros in Q4 2022.
• Net income increased to 42.5 million euros (31 euro cents on a diluted per-share basis) from 28.7 million euros (21 euro cents on a diluted per-share basis).
• Acquisitions were completed for aggregate cash consideration of 18.6 million euros (which includes acquired cash). Deferred payments associated with these acquisitions have an estimated value of 9.9 million euros resulting in total consideration of 28.5 million euros.
• Cash flows from operations (CFO) increased 14.3 million euros to 62.4 million euros compared with 48.1 million euros in Q4 2022 representing an increase of 30 per cent.
• Free cash flow available to shareholders (FCFA2S) increased 10.1 million euros to 28.9 million euros compared with 18.8 in Q4 2022 representing an increase of 54 per cent.

2023 headlines:

• Revenue increased 23 per cent (7-per-cent organic growth) to 1,125 million euros compared with 916.7 million euros in 2022.
• Net income was 115.4 million euros (88 euro cents on a diluted per-share basis) compared with net income of 87.6 million euros (66 euro cents on a diluted per-share basis) in 2022.
• A number of acquisitions were completed for total consideration of 132 million euros including holdbacks and contingent consideration.
• Cash flows from operations (CFO) increased 43.5 million euros to 246.6 million euros compared with 203 million euros in 2022 representing an increase of 21 per cent.
• Free cash flow available to shareholders (FCFA2S) increased 68.8 million euros to 123.4 million euros compared with 54.5 million euros in 2022 representing an increase of 126 per cent.

Total revenue for the quarter ended Dec. 31, 2023, was 309.7 million euros, an increase of 17 per cent, or 45.9 million euros, compared with 263.7 million euros for the comparable period in 2022. For the 12 months ended Dec. 31, 2023, total revenues were 1,125.0 million euros, an increase of 23 per cent, or 208.3 million euros, compared with 916.7 million euros for the comparable period in 2022. The increase for both the three- and 12-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 7 per cent for both periods.

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 Dec. 31, 2023, increased 13.8 million euros to 42.5 million euros compared with 28.7 million euros for the same period in 2022. On a per-share basis, this translated into net income per basic and diluted share of 31 euro cents in the quarter ended Dec. 31, 2023, compared with net income per basic and diluted share of 21 euro cents for the same period in 2022. For the 12 months ended Dec. 31, 2023, net income was 115.4 million euros or 88 euro cents per basic and diluted share compared with net income of 87.6 million euros or 66 euro cents per basic and diluted share for the same period in 2022.

For the quarter ended Dec. 31, 2023, CFO increased 14.3 million euros to 62.4 million euros compared with 48.1 million euros for the same period in 2022 representing an increase of 30 per cent. For the 12 months ended Dec. 31, 2023, CFO increased 43.5 million euros to 246.6 million euros compared with 203 million euros for the same period in 2022 representing an increase of 21 per cent.

For the quarter ended Dec. 31, 2023, FCFA2S increased 10.1 million euros to 28.9 million euros compared with 18.8 million euros for the same period in 2022 representing an increase of 54 per cent. For the 12 months ended Dec. 31, 2023, FCFA2S increased 68.8 million euros to 123.4 million euros compared with 54.5 million euros for the same period in 2022 representing an increase of 126 per cent. The increase for the 12 months ended is primarily as a result of the dividend paid to the preferred securities holders during the quarter ended March 31, 2022. Excluding the dividend, FCFA2S increased 28.4 million euros or 30 per cent for the 12 months ended Dec. 31, 2023.

The attached table FCFA2S to net cash flows from operating activities.

About Topicus.com Inc.

Topicus's subordinate voting shares are listed on the TSX Venture Exchange under the symbol TOI. Topicus 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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