CSG Systems International(US:CSGS)2024-02-07 23:19Financial Performance & Growth - CSG achieved a record-setting year in 2023, with revenue growing by 7.3% year-over-year, the best full-year result in nearly 20 years[6, 7] - The company is targeting revenue to exceed $1.5 billion by FY2025, representing over 50% business growth from 2020 revenue of $1 billion[9, 10] - CSG's full-year 2023 revenue reached $1.169 billion, a 7% increase compared to $1.090 billion in FY22[40, 49] - The company's non-GAAP adjusted operating margin increased from 16.6% in FY22 to 17.2% in FY23[50] - Non-GAAP adjusted EBITDA increased to $243 million in FY23 from $226 million in FY22[51] - Non-GAAP EPS increased by 2% from $3.61 in FY22 to $3.69 in FY23[31] - Free cash flow increased significantly year-over-year, reaching $372 million in FY23 compared to $265 million in FY22[54] Strategic Priorities & Diversification - CSG is focused on strategic revenue acceleration and sustained long-term revenue growth[9] - The company is diversifying its revenue streams, with 28% coming from industry verticals outside of CSPs[7, 15] - CSG aims to consistently grow organic revenue by 2% to 6% year-over-year[23] Shareholder Returns & Capital Allocation - CSG increased its dividend by 7% to $1.20 per year, marking the 11th consecutive annual increase[7] - The company repurchased $117 million of shares during 2023[22] - CSG successfully completed a $425 million convertible debt offering in Q3, lowering the interest rate to 3.875%[32] 2024 Guidance - CSG has established 2024 financial guidance targets with mid-single-digit revenue growth and strong profitability[7] - The company anticipates revenue between $1.20 billion and $1.24 billion for 2024[59] - CSG projects an adjusted operating margin of 17.0% to 17.4%, EPS of $3.85 to $4.15, adjusted EBITDA of $245 million to $255 million, and free cash flow of $95 million to $135 million for 2024[59]