CSG Q4 & Full Year 2024 Earnings Presentation Brian Shepherd CEO & President Hai Tran CFO Safe Harbor Forward-Looking Statements + Disclaimers This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will ...

Financial Data and Key Metrics Changes - In Q4, the company achieved a record quarterly revenue of $317 million, representing a 7% year-over-year growth and a 5% organic revenue growth [7][35] - Non-GAAP adjusted operating income increased by 32% year-over-year to $58 million, with a non-GAAP adjusted operating margin of 20.1% [36] - Non-GAAP adjusted EBITDA grew 21% year-over-year to $72 million, achieving a margin of 24.8% [36] - Non-GAAP EPS saw a significant increase of 79% year-over-year, reaching $1.65 [38] - Non-GAAP adjusted free cash flow improved by 9% year-over-year to $113 million [39] Business Line Data and Key Metrics Changes - The growth in revenue was attributed to the SaaS and related solutions, alongside approximately $6 million from acquired businesses [35] - The top two customers, Comcast and Charter, reported a 3% year-over-year revenue increase in Q4 [35] Market Data and Key Metrics Changes - The company is diversifying its revenue streams, targeting new industry verticals to exceed 35% of total revenue by 2026 [11] - The company has expanded its presence in various sectors, including media, financial services, healthcare, and retail, indicating a broadening market reach [15][70] Company Strategy and Development Direction - The company aims to achieve 2% to 6% organic revenue growth and expand its non-GAAP operating margin to a long-term range of 18% to 20% [12][27] - The strategy includes becoming more asset-light to enhance free cash flow growth in 2025 and 2026, with a target of $110 million to $150 million in adjusted free cash flow for 2025 [13][28] - The company is committed to returning over $100 million to shareholders through share repurchases and dividends in 2025 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to expand profitability and operating leverage, with expectations for continued improvement in profitability metrics [37][46] - Despite a tough market environment, management noted a healthier sales pipeline entering 2025 compared to the previous year [54][112] - The company anticipates organic revenue growth of 2% to 4% for 2025, with potential for higher performance if the year starts strong [58][114] Other Important Information - The company completed two smaller, highly accretive acquisitions in 2024, contributing to recurring revenue [30] - The company is leveraging AI to enhance customer engagement and operational efficiency, focusing on practical applications rather than hype [79][84] Q&A Session Summary Question: Can you talk about the pipeline entering 2025 compared to a year ago? - Management indicated that the pipeline has grown and is healthier, with opportunities distributed across various prospects [54][50] Question: Any notable dynamics in the quarter regarding deals or budget flush? - Management noted nothing out of the ordinary, with typical delays in large, complex opportunities [56] Question: How do you see operating margin expansion in 2025 compared to 2026? - Management expects modest expansion in 2025, with further improvements anticipated in 2026 due to operational efficiencies and revenue mix [61][66] Question: What is the outlook for CXM payments and growth in those segments? - Management reported robust growth in both segments, with expectations for double-digit organic growth [92][93] Question: How is the company leveraging AI for growth and efficiency? - Management emphasized a pragmatic approach to AI, focusing on specific use cases that drive customer engagement and operational efficiency [79][84] Question: Concerns regarding governmental business and FX volatility? - Management stated minimal exposure to governmental contracts and no concerns regarding revenue guidance for 2025 [88][89]

CSG Systems (CSGS) came out with quarterly earnings of $1.65 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 36.36%. A quarter ago, it was expected that this provider of support services for the communications industry would post earnings of $1.08 per share when it actually produced earnings of $1.06, delivering a surprise of ...

Financial Data and Key Metrics Changes - CSG reported record quarterly revenue of $317 million in Q4 2024, representing a 7% year-over-year growth and a 5% organic revenue growth [7][8] - Non-GAAP adjusted operating income increased by 32% year-over-year to $58 million, with a non-GAAP adjusted operating margin of 20.1% [9][26] - Non-GAAP adjusted EBITDA grew 21% year-over-year to $72 million, achieving a margin of 24.8% [9][26] - Non-GAAP EPS reached $1.65, marking a 79% year-over-year increase [9][28] - Free cash flow for 2024 was $113 million, reflecting a 9% year-over-year growth [9][29] Business Line Data and Key Metrics Changes - The growth in revenue was attributed to the SaaS and related solutions, alongside $6 million from acquired businesses [26] - Revenue from top customers, Comcast and Charter, saw a 3% year-over-year increase in Q4 [26] Market Data and Key Metrics Changes - CSG is diversifying its revenue streams, targeting greater than 35% from new industry verticals by 2026 [10][12] - The company is expanding beyond traditional telecom and cable broadband into sectors like media, financial services, healthcare, and retail [12] Company Strategy and Development Direction - CSG aims for 2% to 6% organic revenue growth and plans to become more asset-light to enhance free cash flow growth in 2025 and 2026 [10][11] - The company is committed to returning over $100 million to shareholders through buybacks and dividends in 2025 [21][22] - CSG is focused on integrating acquired businesses to achieve strategic and financial goals [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to expand profitability and operating leverage, with expectations for non-GAAP adjusted operating margins to reach 18% to 20% in the coming years [20][21] - The management acknowledged a tough market environment but noted a healthier sales pipeline entering 2025 compared to the previous year [40][41] Other Important Information - CSG has made two small, highly accretive acquisitions in 2024, which are expected to contribute to recurring revenue [22][23] - The company is leveraging AI to enhance customer engagement and operational efficiency [61][63] Q&A Session Summary Question: Can you discuss the pipeline entering 2025 compared to last year? - Management noted a healthy and growing pipeline, with a focus on quick deployment solutions that provide rapid returns for customers [35][36][38] Question: What are the dynamics of the quarter regarding deals and budget flush? - Management indicated no unusual dynamics, with typical delays in complex deals, but a higher backlog entering 2025 compared to 2024 [39][40] Question: Can you explain the modest operating margin expansion expected in 2025? - Management highlighted that gross margin expansion is driven by a mix of business and ongoing efficiency improvements [45][46][48] Question: How is the revenue diversification progressing towards the 35% target? - Management emphasized a broad portfolio of wins across various verticals, with a focus on targeted business problems that drive revenue uplift [51][52][54] Question: What is the outlook for the CXM and Payments segments? - Both segments are expected to grow at double-digit rates, with some fluctuations in quarterly performance [72][73] Question: How is AI impacting CSG's operations and revenue? - Management discussed leveraging AI for specific use cases to enhance customer engagement and operational efficiency, viewing it as essential for future growth [61][63]

FOR IMMEDIATE RELEASE PRESS RELEASE CSG SYSTEMS INTERNATIONAL REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS Reported Record Quarterly Revenue of $317 Million in Q4 2024, up 7% YoY Achieved or Exceeded All Profitability and Cash Flow Guidance Targets in 2024 2024 Operating Cash Flow of $136 Million; $113 Million of Non-GAAP Adjusted Free Cash Flow, up 9% YoY Dividend Payout Increased 7% in 2025; Marks 12th Consecutive Year of Increased Payout $100+ Million Shareholder Remuneration Target via Dividends an ...

Core Insights - The article emphasizes the importance of the Zacks Rank system and Style Scores in identifying strong stocks, particularly for value investors [1][2] Company Overview: CSG Systems International (CSGS) - CSGS currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [3] - The stock is trading at a P/E ratio of 12.50, significantly lower than the industry average of 20.29, suggesting it may be undervalued [3] - CSGS's Forward P/E has fluctuated between 9.56 and 14.67 over the past year, with a median of 11.14 [3] Valuation Metrics - CSGS has a PEG ratio of 1.25, which is below the industry average of 1.90, indicating favorable growth expectations relative to its price [4] - The P/S ratio for CSGS is 1.37, compared to the industry's average of 1.62, further supporting the notion of undervaluation [5] - The P/CF ratio stands at 11.66, which is lower than the industry average of 15.02, highlighting the company's strong cash flow outlook [6] Investment Potential - The combination of these metrics suggests that CSGS is likely undervalued and presents an attractive investment opportunity for value investors [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-27512 | --- | --- | |------------------------------------------------------------------------------------------------------|-- ...

CSG Systems International, Inc. (NASDAQ:CSGS) Q3 2024 Earnings Conference Call November 6, 2024 5:00 PM ET Company Participants John Rea - Head of Investor Relations and Treasurer Brian Shepherd - Chief Executive Officer and President Hai Tran - Executive Vice President and Chief Financial Officer Conference Call Participants Gregory Burns - Sidoti & Company Dan Bergstrom - RBC Capital Markets Shlomo Rosenbaum - Stifel Thomas Shinske - Cantor Fitzgerald George Notter - Jefferies Matthew Harrigan - Benchmark ...

CSG Systems (CSGS) came out with quarterly earnings of $1.06 per share, missing the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.85%. A quarter ago, it was expected that this provider of support services for the communications industry would post earnings of $0.91 per share when it actually produced earnings of $1.02, delivering a surprise of ...

FOR IMMEDIATE RELEASE PRESS RELEASE CSG SYSTEMS INTERNATIONAL REPORTS THIRD QUARTER 2024 RESULTS DENVER--(November 6, 2024) — CSG (NASDAQ: CSGS) today reported results for the quarter ended September 30, 2024. Announced Watershed Contract Renewal with Comcast through Year-End 2030 Raising 2024 Profitability and Non-GAAP EPS Guidance Targets for Second Consecutive Quarter Commitment to Return $100+ Million to Shareholders via Dividends and Buybacks in 2024 and 2025 Financial Results: Third quarter 2024 finan ...