Constellation Software's Miller Estimates Over Half of Revenue in Verticalized Buckets

Constellation Software Inc. President and Chief Operating Officer Mark Miller estimated Monday, Nov. 9, that more than half of the company's revenue would fit into verticalized categories, a rough measure of its effort to focus its software businesses.

Miller cautioned that the boundaries between categories are subjective. He said the effort was mostly complete, though a few details remained. Its aim is to bring businesses into the same orbit for better focus while leaving them room to manage their operations.

Constellation is also testing AI across its business. Many of its more than 1,600 businesses are running experiments involving products, customer support and software development. Some already pay for themselves, Miller said, while many do not. AI spending was not material to the company's results, and Miller offered no forecast.

The comments followed Constellation's third-quarter results, released Friday, Nov. 6. Revenue increased 19% to $3.512 billion from $2.948 billion a year earlier, while organic growth was 2%. Acquisitions drove most of the increase.

Constellation buys, operates and develops software businesses serving specialized markets. It recorded $609 million in acquisition consideration during the quarter, including $484 million in cash consideration, which included acquired cash, and an estimated $125 million in deferred payments.

Constellation appointed Daan Dijkhuizen chief AI officer Oct. 21. His responsibilities include helping operating groups share AI practices and expanding VMS Ventures' role in investing in AI-native vertical market software businesses.