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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.
CSG Systems
CSG Systems
CSG Systems Revenue by Segment
CSG Systems Revenue by Geographic Location
Revenue by Segment
Broadband/Cable/Satellite Revenue
CapyFin.comTelecommunications Revenue
CapyFin.comAll other Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope, Middle East and Africa Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com 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.
- CSG’s ability to deliver its solutions in a timely fashion within budget, particularly large and complex software implementations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income