What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-03-31 compared with 2022-04-15 · 30 added, 35 removed, 135 unchanged (33% of the section changed)

Consensus Cloud Solutions, Inc., together with its subsidiaries (“Consensus Cloud Solutions” or “Consensus” , “our”, “us” or “we” ), is a provider of secure information delivery services with a scalable Software-as-a-Service (“SaaS”) platform.

Consensus serves more than one million customers of all sizes, from enterprises to individuals, across over 50 countries and multiple industry verticals including healthcare, financial services, law and education.

Consensus Cloud Solutions, Inc., together with its subsidiaries (“Consensus Cloud Solutions”, “Consensus” , the “Company”, “our”, “us” or “we” ), is a provider of secure information delivery services with a scalable Software-as-a-Service (“SaaS”) platform.

Consensus serves approximately 1 million customers of all sizes, from enterprises to individuals, across approximately 50 countries and multiple industry verticals including healthcare, government, financial services, law and education.

Beginning as an online fax company over two decades ago, Consensus has evolved into a leading global provider of enterprise secure communication solutions.

1 unchanged sentence

Our mission is to democratize secure information interchange across technologies and industries and solve the healthcare interoperability challenge.

All of Consensus’ revenue is recurring in nature and is generated either via fixed subscription plans or usage-based contracts.

Substantially all of Consensus’ revenue is recurring in nature and is generated either via fixed subscription plans or usage-based contracts.

Over the past decade, Consensus has progressively shifted focus towards larger commercial customers (“Corporate”).

As enterprise data communication shifted toward digitization and cloud-based solutions, Consensus entered industry verticals such as legal, compliance, insurance, and healthcare.

Our Corporate business has grown from $148 million of revenue in 2020 to approximately $170 million of revenue in 2021, representing a 9.7% compound annual growth rate.

As enterprise data communication shifted toward digitization and cloud-based solutions, Consensus entered industry verticals such as healthcare, government, financial services, law and education.

Our Corporate business has grown from $170 million of revenue in 2021 to approximately $192 million of revenue in 2022, representing a 13.2% annual growth rate.

We currently serve approximately 52,000 Corporate customers, generally small/medium businesses or large enterprises, to whom sales are made through direct interaction with a sales person and involve specific pricing, multiple line subscriptions, API connections and/or commercial grade security.

We currently serve over one million small office/home office (“SoHo”) online fax customers, generally consumers and SoHo users, who acquire a pre-defined subscription through an e-commerce website without direct interaction with a sales person.

Our SoHo brands include jSign®, eFax®, MyFax®, Sfax®, Metrofax®, and SRfax®.

We currently serve approximately 942,000 small office/home office (“SoHo”) online fax customers, generally consumers and SoHo users, who acquire a pre-defined subscription through an e-commerce website without direct interaction with a sales person.

Our SoHo brands include eFax®, jSign®, MyFax®, Sfax®, Metrofax®, and SRfax®.

In 2020, we launched the Consensus Unite healthcare interoperability platform, a comprehensive workflow collaboration and data exchange solutions suite.

Healthcare represents Consensus’ largest industry vertical and has information, secure communication, management and interoperability needs.

In early 2022, we acquired Summit Healthcare Services, Inc.

(“Summit”), a leading provider of digital Health Level Seven (“HL7”) and Fast Healthcare Interoperability Resources (“FHIR”) technology which are complementary to our existing product set for healthcare interoperability.

The sector is undergoing a large-scale digitization effort, with the objective to streamline workflows, increase efficiency for operators, and increase transparency for patients.

We believe our leadership in digital fax and our deep experience in the healthcare industry positions Consensus well to help healthcare providers accomplish their broader digitization and interoperability objectives.

We believe our leadership in digital cloud fax, HL7, FHIR and our deep domain knowledge and experience in the healthcare industry positions Consensus well to help healthcare providers accomplish their broader digitization and interoperability objectives.

Secure Information Communication

Our products and services are a component of the secure information transmission market, which is part of the broader public cloud services market, for which demand for cloud services is expected to accelerate in the future.

Fax remains one of the most ubiquitous ways to transmit documents securely.

Fax remains one of the most ubiquitous technologies to transmit documents securely.

The use of fax is particularly high in industries subject to data protection laws such as the Health Insurance Portability and Accountability Act (“HIPAA”), as fax offers safety of transmission and nearly universal legal acceptance.

2 unchanged sentences

• Digitization :

Key industry verticals such as healthcare, legal and financial services have been heavily investing in digitization of information and the online fax industry significantly benefited from the trend.

Key industry verticals such as healthcare, government, financial services and law have been heavily investing in digitization of information and the online fax industry has significantly benefited from the trend.

• Data security and data privacy awareness:

1 unchanged sentence

• Regulatory tailwinds:

Because of its security, fax meets regulatory requirements for data security and remains ubiquitous in highly regulated industries, such as healthcare, and sectors where large volumes of sensitive information is exchanged.

Because of its security, eFax® meets regulatory requirements for data security and remains ubiquitous in highly regulated industries, such as healthcare and sectors where large volumes of sensitive information is exchanged.

• Cost efficiency :

5 unchanged sentences

In the increasingly data-driven healthcare industry, interoperability is essential to ensuring quality care delivery and safeguarding patient information.

To address market demand for effective interoperability solutions, Consensus is concentrating its development efforts in tools capable of integrating with existing healthcare IT infrastructure to facilitate communication between providers and allow use of multiple transmission protocols within a single cloud-based platform.

To address market demand for effective interoperability solutions, Consensus is concentrating its development efforts in tools capable of integrating with existing healthcare IT infrastructure to facilitate timely and accurate communication between providers and allow use of multiple transmission protocols within a single cloud-based platform.

Our Products and Solutions

1 unchanged sentence

eFax Corporate®:

eFax Corporate® provides digital cloud-fax technology serving approximately 45,000 customers

eFax Corporate® provides digital cloud fax technology.

Unite is a single platform that allows the user to choose between several protocols to send and receive healthcare information in an environment that can integrate into an existing electronic health record (“EHR”) system or stand-alone if no EHR is present.

jSign® provides electronic signature and digital signature solutions to businesses, offering document markup and end-user signing services via mobile-aware web application and enterprise API.

Signal integrates with a hospital’s EHR system and uses rules-based triggering logic to automatically send Admit, Discharge or Transfer (“ADT”) notifications using both cloud fax and Direct Secure Messaging technology.

Conductor is a r obust interface engine and complete interoperability platform that provides seamless integration technology that supports all the latest standards for connectivity and data formats (API/FHIR, Web Service), addressing a wide range of interoperability challenges from the simple to the extremely complex.

Using Natural Language Processing and Artificial Intelligence (NLP/AI) Clarity’s valuable insightful information can transform unstructured documents into structured actionable data.

1 unchanged sentence

SoHo Fax Solutions

eFax® is a global online faxing service with over one million customers worldwide and serving customers in 50 countries.

eFax® is a global online faxing service with customers worldwide.

In addition to eFax®, we offer a variety of brands for subscription.

We have a diverse set of customers globally across 50 countries, using cloud fax, electronic signature and interoperability products.

We have a diverse set of customers globally, using cloud fax, electronic signature and interoperability products.

Our Strengths

12 unchanged sentences

Global and Diversified Customer Base.

Our more than one million customers are located in over 50 countries across six continents.

Our customers are located globally across six continents.

We believe that our product-line and geographic diversity, combined with our lack of customer concentration, will help us mitigate the effects of isolated downturns in various end markets.

8 unchanged sentences

• Solving healthcare interoperability challenges;

• Maintaining SoHo fax revenue;

• Optimize eCommerce (SoHo) revenue;

• Leveraging our technology to enter new markets (e.g.

• Positioning the business for sustained growth through continued focus on profitability and cash flow generation;

• Focused investments in our products and capabilities;

• Complementing organic growth investments with targeted acquisitions.

21 unchanged sentences

These include, among others, laws and regulations addressing privacy, data storage, retention and security, freedom of expression, content, taxation, numbers, advertising and intellectual property.

With respect to most of our business, we are not a regulated telecommunications provider in the U.S.

For information about the risks we face with respect to governmental regulation, please see Item 1A of this Annual Report on Form 10-K entitled Risk Factors.

For information about the regulations to which we are subject and the risks we face with respect to governmental regulation, please see Item 1A of this Annual Report on Form 10-K entitled Risk Factors.

General economic conditions have an impact on our business and financial results.

16 unchanged sentences

Our cloud fax users and employees are diverse – gender, race, ethnicity, age, orientation, geography, education, background, interests, and more.

We believe that for our business to succeed over the long term, maintaining and enhancing this diversity is crucial.

We recognize that each employee’s unique experiences, perspectives and viewpoints add value to our ability to create and deliver the most innovative work environment for our employees and the best possible service to our diverse customers.

To this effect, we created a Diversity, Equity and Inclusion (“DEI”) Council to promote thoughtful discussion, implement training and events to foster respectful awareness of diversity, equity, and inclusion in our workplace environment and create a community where each employee feels they belong and where they can contribute to the overall success of the Company.

We reinforce our culture and our values by seeking out diverse candidates, and looking for candidates that fit well with our organizational priorities, values, mission and vision.

5 unchanged sentences

Those benefits include comprehensive health insurance coverage and covering 84% of health insurance premiums for covered U.S.

employees and their families, an employee stock purchase program, flexible time off, up to 16 weeks of paid parental leave for birth parents, and 16 hours annually of fully paid Volunteer Time Off.

employees and their families, an employee stock purchase program, share based compensation, flexible time off, up to 16 weeks of paid parental leave for birth parents and 24 hours annually of fully paid Volunteer Time Off.

Health and Wellness

Creating a culture where all colleagues feel supported and valued is paramount to our corporate mission.

We expect to evolve our programs to meet our colleagues’ health and wellness needs, which we believe is essential to attract and retain employees of the highest caliber, and we offer a competitive benefits package focused on fostering work/life integration.

We expect to evolve our programs to meet our colleagues’ health and wellness needs, which we believe are essential to attract and retain employees of the highest caliber, and we offer a competitive benefits package focused on fostering work/life integration.

We face competition from, among others, online fax-providers, traditional fax machine or multifunction printer companies, electronic signature companies, healthcare interface companies, health information service providers and robotic process automation companies.

Our solutions related to online faxing compete primarily against traditional fax machine manufacturers, which are generally large and well-established companies, as well as publicly traded and privately-held providers of fax servers and related software and outsourced fax services.

Our solutions relate to online faxing and compete primarily against traditional fax machine manufacturers, which are generally large and well-established companies, as well as publicly traded and privately-held providers of fax servers and related software and outsourced fax services.

Some of these companies may have greater financial and other resources than we do.

15 unchanged sentences

On October 7, 2021, J2 Global, Inc.

(now known as "Ziff Davis” or “Former Parent”) completed its previously announced plans to separate into two leading publicly traded companies:

(now known as "Ziff Davis”, “Former Parent Company” or “Former Parent”) completed its previously announced plans to separate into two leading publicly traded companies:

one addressing healthcare interoperability and comprising the Cloud Fax business, which does business as Consensus Cloud Solutions, Inc., and one that will continue the Former Parent’s strategy of building a leading internet platform focused on key verticals, including technology & gaming, shopping, health, cybersecurity and martech, which will do business as Ziff Davis.

We refer to the transactions that resulted in the separation of Consensus and Ziff Davis into two separate publicly traded companies as the “separation and distribution.”).

Emerging Growth Company Status

We are an emerging growth company, as defined in Section 3(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), as amended by the Jumpstart Our Business Startups Act (the “JOBS Act”) enacted on April 5, 2012.

For as long as we are an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act of 2002, or the “Sarbanes-Oxley Act,” reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements and exemptions from the requirement of holding a nonbinding advisory vote on executive compensation.

and stockholder approval on golden parachute compensation not previously approved.

Under the JOBS Act, we will remain an emerging growth company until the earliest of:

• the last day of the fiscal year following the fifth anniversary of the date of the first sale of our common stock pursuant to an effective registration statement filed under the Securities Act;

• the last day of the fiscal year during which we have total annual gross revenues of $1.07 billion or more (as adjusted for inflation);

• the date on which we have, during the previous three-year period, issued more than $1 billion in non-convertible debt;

• the date on which we are deemed to be a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act.

We refer to the transactions that resulted in the separation of Consensus and Ziff Davis into two separate publicly traded companies as the “Spin-Off” or “separation and distribution.”).

Available Information

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business