[Part I - FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements show significant growth in net income and EPS for the quarter ended March 31, 2023 Condensed Consolidated Statements of Income (Q1 2023 vs Q1 2022) | Financial Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $298,739 | $264,400 | +13.0% | | **Operating Income** | $38,193 | $16,415 | +132.7% | | **Net Income** | $20,928 | $6,113 | +242.4% | | **Diluted EPS** | $0.68 | $0.19 | +257.9% | Condensed Consolidated Balance Sheets (Key Items) | Balance Sheet Item | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | Total cash, cash equivalents, and short-term investments | $167,681 | $150,436 | | Total Assets | $1,296,008 | $1,348,553 | | Total Debt (Current + Long-term) | $441,281 | $412,969 | | Total Liabilities | $927,785 | $993,304 | | Total Stockholders' Equity | $368,223 | $355,249 | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $15,397 | $(5,549) | | Net cash provided by (used in) investing activities | $(8,629) | $11,512 | | Net cash used in financing activities | $(51,132) | $(54,614) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Disclosures cover accounting policies, revenue breakdown, debt benchmark transition, and restructuring charges Revenue Breakdown (Q1 2023 vs Q1 2022) | Revenue by Type | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | SaaS and related solutions | $257,876 | $234,977 | | Software and services | $30,891 | $18,436 | | Maintenance | $9,972 | $10,987 | | **Total Revenue** | **$298,739** | **$264,400** | | Revenue by Geography | Q1 2023 (%) | Q1 2022 (%) | | :--- | :--- | :--- | | Americas | 84% | 84% | | Europe, Middle East, and Africa | 12% | 12% | | Asia Pacific | 4% | 4% | - In April 2023, the company amended its 2021 Credit Agreement to replace the **LIBOR interest rate benchmark with the Secured Overnight Financing Rate (SOFR)**[3](index=3&type=chunk) - The company recorded **restructuring and reorganization charges of $5.2 million** in Q1 2023, including a $1.2 million impairment from the dissolution of the Keydok business[36](index=36&type=chunk)[64](index=64&type=chunk) - As of March 31, 2023, **total debt, net of unamortized discounts, was $441.3 million**, up from $413.0 million at year-end 2022[61](index=61&type=chunk) - In Q1 2023, the company **repurchased approximately 166,000 shares for $9.3 million** for tax withholding on vested restricted stock, with no shares repurchased under the formal program[5](index=5&type=chunk)[70](index=70&type=chunk)[90](index=90&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis highlights a 13% revenue increase, improved operating income, and key business events [Company Overview](index=16&type=section&id=Company%20Overview) CSG provides SaaS solutions for revenue management and customer experience, primarily to the communications industry - The company positions itself as a purpose-driven SaaS platform company focused on **revenue management, digital monetization, customer experience, and payments solutions**[76](index=76&type=chunk) - R&D and acquisition investments are focused on expanding offerings using a **scalable, modular, and flexible solutions architecture**[77](index=77&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Q1 2023 saw a 13% revenue increase and a surge in operating income, driven by software and SaaS growth - **Revenue grew 13.0% YoY**, primarily due to a $12.5 million (67.6%) increase in software and services revenue and growth in SaaS solutions[208](index=208&type=chunk) - The company **completed the final conversions of Charter's customer accounts** onto its platforms, having converted over nine million accounts in the last twelve months[208](index=208&type=chunk)[217](index=217&type=chunk) - Operating expenses increased by 5.1% to $260.5 million, partially offset by a **$7.9 million decrease in restructuring and reorganization charges**[102](index=102&type=chunk)[122](index=122&type=chunk) - **Interest expense increased by $3.9 million** to $7.2 million due to rising interest rates and a higher average outstanding debt balance[105](index=105&type=chunk) [Significant Customer Relationships](index=18&type=section&id=Significant%20Customer%20Relationships) Revenue is concentrated with Charter and Comcast, with a renewed Charter agreement extending to March 2028 Revenue from Major Customers (% of Total Revenue) | Customer | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Charter | 21% | 20% | | Comcast | 18% | 20% | - In April 2023, the company entered into an **Amended and Restated Master Agreement with Charter, extending the term through March 31, 2028**[115](index=115&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash reserves, operating cash flows, and its credit facility - **Cash, cash equivalents, and short-term investments totaled $167.7 million** at March 31, 2023, with approximately 61% held in U.S. dollars in the U.S[138](index=138&type=chunk)[210](index=210&type=chunk) - The company has a **$450.0 million revolving loan facility**, with $305.0 million outstanding and $145.0 million available as of March 31, 2023[108](index=108&type=chunk)[139](index=139&type=chunk) - The Board approved a **quarterly cash dividend of $0.28 per share** in Q1 2023, totaling $8.8 million[91](index=91&type=chunk)[166](index=166&type=chunk) - The company believes **existing cash and credit facilities are sufficient** to meet anticipated capital needs for at least the next twelve months[189](index=189&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate and foreign currency risks, managed without speculative derivatives - The company is exposed to **interest rate risk** on its 2021 Credit Agreement, with the benchmark recently changed from LIBOR to SOFR[148](index=148&type=chunk) - **Foreign currency exchange risk** exists due to global operations, but its impact is not expected to be material as 86% of Q1 2023 revenue was in U.S. dollars[174](index=174&type=chunk)[151](index=151&type=chunk) - Market risk for cash equivalents and short-term investments is **considered minimal** due to short maturities and high credit quality[149](index=149&type=chunk)[192](index=192&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures with no material changes in the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by the report[176](index=176&type=chunk) - Management concluded that **no changes occurred during the quarter that have materially affected** the company's internal control over financial reporting[177](index=177&type=chunk) [Part II - OTHER INFORMATION](index=28&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - In the opinion of management, the company is **not presently a party to any material pending or threatened legal proceedings**[179](index=179&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors disclosed in the 2022 Form 10-K - **No material changes** were made to the risk factors disclosed in the 2022 Form 10-K during Q1 2023[180](index=180&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details stock repurchases made during Q1 2023 to satisfy employee tax withholding obligations Common Stock Purchases in Q1 2023 | Month (2023) | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January | 10,821 | $58.15 | | February | 64,179 | $60.54 | | March | 91,266 | $52.75 | | **Total** | **166,266** | **$56.11** | - The shares purchased were **not part of the formal Stock Repurchase Program** but were repurchased to cover tax withholding requirements from vested restricted stock[5](index=5&type=chunk)[181](index=181&type=chunk) [Exhibits](index=28&type=section&id=Item%206.%20Exhibits) Lists filed exhibits, including executive agreements and required Sarbanes-Oxley certifications - Filed exhibits include **executive severance plan participation agreements** for Brian A. Shepherd, Kenneth M. Kennedy, and Elizabeth A. Bauer[200](index=200&type=chunk) - **Certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act** are included as exhibits[200](index=200&type=chunk) [Signatures](index=30&type=section&id=Signatures) The report is duly signed by the company's principal executive and financial officers as of May 4, 2023 - The report was **signed on May 4, 2023**, by Brian A. Shepherd (CEO), Hai Tran (CFO), and David N. Schaaf (Chief Accounting Officer)[202](index=202&type=chunk)

Revenue Performance - Revenue for 2022 was $1,089.8 million, a 4.1% increase from $1,046.5 million in 2021, primarily driven by organic growth in revenue management solutions [27]. - The company reported total revenue of $1,089,752,000 for the year ended December 31, 2022, representing a 4.6% increase from $1,046,487,000 in 2021 [87]. - Total revenue for 2022 was $1,089,752 thousand, an increase from $1,046,487 thousand in 2021, representing a growth of approximately 4.0% [128]. - Revenue from SaaS and related solutions was $956,995 thousand in 2022, up from $926,290 thousand in 2021, indicating a growth of about 3.3% [128]. - The company generated approximately 88% of its revenue in U.S. dollars during the year ended December 31, 2022 [96]. Expenses and Costs - Cost of revenue for 2022 increased 4.0% to $565.2 million, maintaining a cost of revenue as a percentage of revenue at 51.9% for both 2022 and 2021 [35]. - SG&A expense for 2022 rose 10.9% to $238.0 million, with SG&A as a percentage of total revenue increasing to 21.8% from 20.5% in 2021 [36]. - Total operating expenses increased by 9.6% to $1,011.0 million in 2022, up from $922.3 million in 2021, primarily due to restructuring costs and inflationary pressures [215]. - Research and development expenses for 2022 were $137,913,000, up from $134,691,000 in 2021, highlighting continued investment in innovation [87]. - The company incurred asset impairment costs of $31,761 in 2022, significantly higher than $1,270 in 2021 [142]. Profitability and Income - Diluted EPS for 2022 was $1.41, down from $2.26 in 2021, mainly due to increased restructuring and reorganization charges [49]. - Net income for 2022 was $44,060,000, a decrease of 39.2% compared to $72,331,000 in 2021 [88]. - Operating income decreased to $78,747,000 in 2022 from $124,186,000 in 2021, indicating challenges in maintaining profitability [87]. - The company reported total comprehensive income of $23,584,000 for 2022, down from $65,116,000 in 2021, reflecting adverse foreign currency translation adjustments [88]. - Cash flows from operating activities provided $63,597 in 2022, down from $140,223 in 2021, representing a decline of 54.7% [142]. Cash and Liquidity - Cash and liquidity as of December 31, 2022, amounted to $150.4 million, a decrease from $233.7 million in 2021 [59]. - Total cash, cash equivalents, and restricted cash at the end of 2022 was $389,018, slightly down from $391,902 at the end of 2021 [142]. - The company had $1.0 million in restricted cash as of December 31, 2022, down from $1.4 million in 2021, representing a decrease of 28.6% [132]. - Total current assets increased to $765,955,000 in 2022 from $748,199,000 in 2021, primarily driven by an increase in trade accounts receivable [86]. - Total liabilities rose to $993,304,000 in 2022, compared to $946,905,000 in 2021, reflecting an increase in both current and non-current liabilities [86]. Shareholder Returns and Stock Activity - The company expects to pay cash dividends totaling $33.7 million in 2022, with future dividends subject to Board approval [68]. - The company repurchased common stock totaling $(96,604) thousand during the year ended December 31, 2022, compared to $(42,238) thousand in 2021, indicating an increase in repurchase activity [140]. - Stock-based compensation expense for the year ended December 31, 2022, was $27,243 thousand, an increase from $25,237 thousand in 2021, representing an increase of approximately 7.9% [140]. - The company’s stock-based compensation expense was $27,243 in 2022, an increase from $21,400 in 2021, reflecting a 27.3% rise [142]. Business Operations and Strategy - The company dissolved the MobileCard business in June 2022 due to unmet projected targets, impacting overall operating results [26]. - The company migrated approximately nine million customer accounts from a competitor's product onto its platforms in 2022, completing the consolidation of Charter's customer accounts [50]. - The company is continually evaluating potential business acquisitions and market share expansion strategies beyond the global communications market [69]. - The company generated 20% of its net billed accounts receivable from Charter and Comcast in both 2022 and 2021, indicating stable customer concentration [176]. - Revenue from Charter and Comcast represented 22% and 17% of total revenue, respectively, for 2022, down from 23% and 20% in 2021 [197]. Financial Reporting and Controls - The independent auditor, KPMG LLP, expressed an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2022 [106]. - The company assessed the effectiveness of its internal control over financial reporting as of December 31, 2022, using COSO criteria [102]. - The company adopted ASU No. 2020-06, resulting in a $9.8 million cumulative-effect adjustment to accumulated earnings as of January 1, 2022 [194]. Future Outlook - The company expects to continue generating a large percentage of its revenue in U.S. dollars in the foreseeable future [96]. - The company expects to continue generating a significant percentage of future revenue from major customers, highlighting the risks associated with customer concentration [196].

CSG Systems International, Inc. (NASDAQ:CSGS) Q4 2022 Earnings Conference Call February 1, 2023 5:00 PM ET Company Participants John Rea - Head of Investor Relations Brian Shepherd - Chief Executive Officer Hai Tran - Chief Financial Officer Conference Call Participants Greg Burns - Sidoti Maggie Nolan - William Blair Timothy Horan - Oppenheimer Matthew Harrigan - Benchmark Operator Good morning. My name is Devon, and I will be your conference operator today. At this time, I would like to welcome everyone t ...

Forward-Looking 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," "would," "may," "target," and similar expressions and variations or negatives of these words. These forward-looking statements may include, among other things, statements with respect to ou ...

CSG Systems International, Inc. (NASDAQ:CSGS) Q3 2022 Earnings Conference Call November 2, 2022 5:00 PM ET Company Participants John Rea - IR Brian Shepherd - CEO Hai Tran - CFO Conference Call Participants Matthew Stotler - William Blair Gregory Burns - Sidoti & Company Matthew Harrigan - The Benchmark Company Operator Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the CSG Systems International, Inc. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, Par Value $0.01 Per Share CSGS NASDAQ Stock Market LLC 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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...

Financial Data and Key Metrics Changes - In Q2 2022, the company reported revenue of $527 million, representing a year-over-year growth of 3.6% [39] - Non-GAAP adjusted operating margin decreased to 15.1% in Q2 from 16.8% in the prior year period [40] - Non-GAAP EPS for the first half of 2022 was $1.71, a 3.6% increase compared to $1.65 in the prior year [44] Business Line Data and Key Metrics Changes - Annual contract value (ACV) sales bookings grew more than 10% year-over-year in the first half of 2022 [5] - Revenue management solutions continued to drive growth, particularly in high-growth industry verticals such as healthcare, retail, and financial services [39] - Approximately 26% of Q2 revenue came from new industry verticals, up from 24% at the end of 2021 [25] Market Data and Key Metrics Changes - The company reported strong demand in both North American and global markets, with significant wins in Latin America and Sub-Saharan Africa [22][24] - The cable market remains a stronghold, with long-term contracts with major U.S. cable companies [22] - The company is expanding its presence in EMEA, with successful sales in South Africa and Saudi Arabia [56] Company Strategy and Development Direction - The company aims for long-term organic revenue growth of 2% to 6% and plans to reach at least $1.5 billion in revenue by 2025 [17] - A disciplined approach to M&A is emphasized, focusing on value-enhancing acquisitions to complement organic growth [18] - The company is committed to improving its ESG initiatives and has received recognition for its efforts in this area [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro inflationary challenges but remains confident in the company's ability to deliver strong results [5][35] - The company is implementing margin improvement initiatives to counteract inflationary pressures and expects to achieve operating margins at or above the mid to upper end of its guidance in Q3 and Q4 [6][12] - Management believes that the current economic environment benefits the company's high recurring revenue model and strong balance sheet [20] Other Important Information - The company returned $55 million to shareholders through dividends and stock buybacks in the first half of 2022 [48] - Adjusted EBITDA for the first half of 2022 was $106 million, or 21.7% of non-GAAP adjusted revenue [44] - The company is facing higher tax obligations due to changes in R&D spending amortization rules, impacting free cash flow guidance [13][49] Q&A Session Summary Question: How does the pipeline for new business look in terms of industry vertical? - The company continues to see a strong sales pipeline with significant growth in digital payment and customer engagement solutions, particularly in faster-growing verticals like financial services and healthcare [53][54] Question: Can you share information on expansion progress in EMEA? - The company has experienced good growth in EMEA, with notable wins in South Africa and Saudi Arabia, and plans to leverage channel partners for further expansion [56][57] Question: Is there a particular acquisition causing margin problems? - Margin pressure is attributed to a combination of factors, including acquisitions and increased hiring to support new sales wins, but these are viewed as temporary challenges [59] Question: Was there any area of weakness in revenue? - The company noted that Q2 is typically a softer quarter, and the slight revenue decline was attributed to timing rather than specific weaknesses in any business area [60] Question: Was the win in Latin America a net new logo? - Yes, the win in Latin America was a significant new contract across the company's suite of solutions, marking a major achievement in the telecom space [61] Question: How has the strategy in the telecom market evolved? - The company has shifted focus from merely converting existing customers to actively pursuing market share gains, emphasizing a product-based approach to improve agility and reduce costs [64][66]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, Par Value $0.01 Per Share CSGS NASDAQ Stock Market LLC 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 June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commiss ...

icsg CSG Q2 & H1 2022 Earnings Presentation CSG® is a registered trademark of CSG Systems International, Inc. CSG® is a registered trademark of CSG Systems International, Inc. © 2022 CSG Systems International, Inc. and/or its affiliates ("CSG"). All rights reserved. 2 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 ex ...

":csg CSG Q1 2022 Earnings Presentation CSG® is a registered trademark of CSG Systems International, Inc. CSG® is a registered trademark of CSG Systems International, Inc. © 2022 CSG Systems International, Inc. and/or its affiliates ("CSG"). All rights reserved. 2 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 expect ...