Financial Data and Key Metrics Changes - In Q1 2024, the company reported $295 million in revenue, a decrease from $299 million in Q1 2023, primarily due to the timing of approximately $10 million in high-margin licensing deals signed in Q1 2023 [52][33] - The non-GAAP adjusted operating margin for Q1 2024 was 16.6%, down from 19.3% in the prior year, while non-GAAP adjusted EBITDA was $58 million, or 21.5% of revenue, compared to $67 million, or 24.3% in Q1 2023 [79][80] - Non-GAAP EPS for Q1 2024 was $1.01, slightly down from $1.04 in the prior year, mainly due to lower operating income [80] Business Line Data and Key Metrics Changes - The company achieved a record-setting $1.169 billion in revenue for 2023, resulting in 7.3% year-over-year growth, marking the best full-year result in nearly 20 years [13] - For the first time, 30% of revenue in Q1 2024 came from industry verticals outside the communication service provider space, reflecting a successful diversification strategy [32][47] - The CX and payments business collectively grew at least double digits in Q1 2024, continuing from the previous year [94] Market Data and Key Metrics Changes - The company serves nearly 64 million combined subscribers at Comcast and Charter, with subscriber losses having a relatively small impact on overall revenue [40][41] - The company is experiencing small headwinds in the North American cable market, with tens of thousands of broadband subscribers lost, which is expected to continue into Q2 and Q3 [69][136] Company Strategy and Development Direction - The company aims to grow revenue to $1.5 billion by year-end 2025, with a focus on organic growth and disciplined acquisitions [27][36] - The company plans to diversify revenue further by winning in high-growth industry verticals such as retail, government, financial services, healthcare, and technology [28][32] - The recent acquisition of a small customer engagement company is expected to enhance the company's offerings in the insurance sector, which is a high-priority vertical [38][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaffirming 2024 guidance due to strong ongoing market demand for the company's SaaS products and a healthy sales pipeline [26][57] - The company anticipates that Q1 will be the low point for free cash flow performance, with expectations of improvement in the second half of the year [82][106] - Management acknowledged the economic pressures faced by the North American cable market but remains optimistic about growth in other business areas [18][136] Other Important Information - The company returned $9 million in dividends to shareholders in March and repurchased $10 million worth of stock during the quarter [25][83] - The company achieved a nearly 40% reduction in Scope 1 and 2 emissions since 2019, with a goal of reaching carbon neutrality by 2035 [34] Q&A Session Summary Question: Can you elaborate on the recent acquisition and its impact? - Management highlighted the acquisition's low multiple of EBITDA and its potential to add shareholder value, focusing on vertical expertise and customer base expansion [59][110] Question: What are the margin differences across industry verticals? - Management noted that margins depend more on the solutions offered rather than the industry verticals, with SaaS-like solutions having higher margins [61] Question: What headwinds are being faced in the North American cable market? - Management confirmed smallish headwinds due to subscriber losses, which are expected to continue into the next quarters [69][136] Question: How is the company addressing the growth in the CX and payments business? - Management indicated strong growth driven by existing customer penetration and new customer acquisition, with a focus on channel partnerships to accelerate growth [120][76] Question: What is the outlook for free cash flow for the year? - Management expressed confidence in achieving full-year targets, expecting Q1 to be a low point with improvements anticipated in subsequent quarters [106][82]

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Safe Harbor Use of Non-GAAP Financial Measures Non-GAAP financial measures are not measures of performance under GAAP, and therefore should not be considered in isolation or as a substitute for GAAP financial information. Limitations with the use of non-GAAP financial measures include the following items: non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles; the way in which CSG calculates non-GAAP financial measures may differ from the way in which other comp ...

FOR IMMEDIATE RELEASE PRESS RELEASE CSG SYSTEMS INTERNATIONAL REPORTS FIRST QUARTER 2024 RESULTS Confirming All 2024 Financial Guidance Targets Revenue Coming from Industry Verticals Outside of CSPs Exceeds 30% for the First Time Returned Over $160 Million to Shareholders in the Last Twelve Months, including $19 Million in Q1 Continued Strong Sales Performance with Many Key Wins in Q1, including MTN and Banglalink DENVER--(May 1, 2024) — CSG (NASDAQ: CSGS) today reported results for the quarter ended March ...

DENVER--(BUSINESS WIRE)--CSG® (NASDAQ: CSGS), a leading SaaS platform company helping brands make ordinary customer and employee experiences extraordinary, today released The 2024 State of the Customer Experience Report. Backed by industry research, internal data, expert testimonial and customer initiatives, the report identifies surprising twists in the traditional CX playbook and offers actionable strategies for brands to roll out the red carpet for their customers to win long-term loyalty. It shines the ...

DHAKA, Bangladesh--(BUSINESS WIRE)--The Bangladeshi telecommunications market is one of the most dynamic and rapidly growing in the world, driven by the popularity of digital services and increasing demand for reliable wireless connectivity. To manage its daily call detail records (CDRs), Banglalink, the country’s innovative digital operator, partnered with CSG® (NASDAQ: CSGS) for modular wholesale billing and settlement solutions to meet its anticipated CDR growth over the next five years. “ As a customer ...

After a solid 2023 and a great start to this year, volatility returned to Wall Street a couple of weeks ago as concerns grew over the Federal Reserve’s timing for the first rate cut. Investors were expecting that the Federal Reserve would soon announce the first rate cut, but hopes dimmed after data showed that inflation increased in January.The consumer price index (CPI) rose 0.3% month over month in January and 3.1% from a year ago, the Commerce Department reported. Also, core CPI, which excludes the vola ...

CSG Systems (CSGS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual investors o ...

DENVER--(BUSINESS WIRE)--CSG® (NASDAQ: CSGS) today announced that the company will present at Citizens JMP’s Technology Conference at The Ritz Carlton, 600 Stockton Street, San Francisco, CA. The presentation will be held at 2:00PM PST on March 4, 2024, and will feature John Rea, CSG’s Vice President & Head of Investor Relations, Treasury and ESG Reporting, who will be providing a high-level overview of the company. For those wishing to attend, please contact Citizens JMP’s Corporate Access team at MBloom@L ...

DENVER--(BUSINESS WIRE)--TSG (The Strawhecker Group) recognized CSG Forte, a leader in complete and customizable digital payments, as the payment gateway provider with the “Lowest Minute Outage” in North America. Based on credit card transaction data and merchants’ perspectives of performance at checkout, CSG Forte earned the top prize for payment gateway stability. TSG’s rigorous, always-on Global Experience Monitoring platform benchmarks gateway performance by conducting 24/7/365 pings to locations across ...