7h • General discussion
Constellation Software (CNSWF) Earnings Call Quick Notes
- Growth: Rev +18% QoQ / +15% YoY. FCFA2S (Free Cash Flow) +16% YoY.
- AI Impact: Management says "Zero disruption" so far.
- The Moat: Fast coding is just "table stakes." What actually retains customers isn't code deployment speed, but deep understanding of customer workflows and data.
- The "1% Rule": Most VMS software is <1% of a client’s revenue. It's too small to be a target for cost-cutting. Replacing one software with AI doesn't save much—you’d have to overhaul the whole stack to see real savings.
- M&A Pipeline: Public market fear hasn't hit private sellers yet. They aren't seeing a rush of owners looking to sell cheap to Constellation.
Mohnish Pabrai just bought a significant amount of Constellation; it’s now almost 5% of his Wagons Fund.
Phil Town Currently holds 200 shares (added 50 this week). He’s looking for a better price to add his next tranches.
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Constellation Software (CNSWF) Earnings Call Quick Notes
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