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Mar 31, 2024
CSG Systems Q1 2024 Earnings Report
CSG Systems' first quarter performance in 2024 reflected a solid start with revenue diversification and consistent financial guidance.
Key Takeaways
CSG Systems reported a slight decrease in revenue compared to the previous year, but confirmed its 2024 financial guidance targets. The company saw a significant increase in revenue from industry verticals outside of CSPs, exceeding 30% for the first time. CSG also returned over $160 million to shareholders in the last twelve months, including $19 million in Q1.
Total revenue was $295.1 million, a 1.2% decrease year-over-year.
GAAP EPS was $0.68, consistent with the first quarter of 2023, while non-GAAP EPS was $1.01.
GAAP operating income was $31.8 million, with an operating margin of 10.8%.
Revenue from industry verticals outside of CSPs exceeded 30% for the first time, compared to 7% in 2017.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
CSG reaffirmed its financial guidance for the full year 2024.
Positive Outlook
- Revenue: $1,200 - $1,240 million
- Adjusted Operating Margin Percentage: 17.0% - 17.4%
- EPS: $3.85 - $4.15
- Adjusted EBITDA: $245 - $255 million
- Free Cash Flow: $95 - $135 million
Challenges Ahead
- Fluctuations in credit market conditions, general global economic and political conditions, and foreign currency exchange rates.
- CSG’s ability to maintain a reliable, secure computing environment.
- Continued market acceptance of CSG’s products and services.
- CSG’s ability to continuously develop and enhance products in a timely, cost-effective, technically advanced and competitive manner.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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