CSG Systems International(US:CSGS)2022-02-02 03:54Financial Data and Key Metrics Changes - CSG Systems International achieved over $1 billion in annual revenue for the first time, ending 2021 with $1.046 billion, representing a 5.6% year-over-year growth [5][32] - Non-GAAP adjusted revenue for Q4 was $258 million, reflecting a 5.9% year-over-year increase, while full-year non-GAAP adjusted revenue grew approximately 6% [32][33] - Non-GAAP EPS for the full year was $3.35, a 7.4% increase from the previous year [36] Business Line Data and Key Metrics Changes - The revenue management product platforms drove significant growth, serving many of the largest communication service providers [33] - Revenue from new industry verticals, including retail, government, financial services, and healthcare, increased from $55 million (7% of total revenue) in 2017 to over $250 million (24% of total revenue) in 2021 [21] Market Data and Key Metrics Changes - CSG successfully migrated over 5 million subscribers for Charter Communications in 2021, with plans to migrate all remaining customers within the next 9 to 15 months [17] - The company signed new deals with global telecom operators, including Mobily in Saudi Arabia and TalkTalk in the UK, indicating strong growth in international markets [18][19] Company Strategy and Development Direction - CSG aims to double its long-term organic revenue growth rate to between 2% and 6%, with a target of reaching at least $1.5 billion in revenue by the end of 2025 [9][12] - The company plans to diversify revenue streams by expanding into faster-growing industry verticals and enhancing its SaaS offerings [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth and improving margins throughout 2022, with expectations for better performance in the second half of the year [44][41] - The leadership team emphasized a focus on creating shareholder value and maintaining a disciplined approach to acquisitions and investments [15][31] Other Important Information - CSG completed several acquisitions in 2021, including Tango Telecom and Kitewheel, to enhance its digital customer engagement capabilities [26][28] - The company declared $8 million in dividends and repurchased $16 million of common stock during Q4 2021 [39] Q&A Session Summary Question: What will margins look like in 2022? - Management expects margins to improve throughout the year, particularly in the second half as new business ramps up [44] Question: Can you provide insights on the sales pipeline? - The sales pipeline is at an all-time high, with significant opportunities across various solution areas, particularly in digital engagement and payments [46][48] Question: How will the company achieve its revenue goals? - CSG plans to achieve its revenue targets through a combination of organic growth and strategic acquisitions, focusing on high-growth areas [52][54] Question: What percentage of North American cable subscribers are on the BSS platform? - Management indicated that a significant majority, potentially 70-80%, of North American cable subscribers are on their BSS platform [64] Question: What is driving growth for Charter Communications? - Growth for Charter is attributed to broadband subscriber increases and the provision of additional services [70]