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Jun 30, 2020

CSG Systems Q2 2020 Earnings Report

CSG Systems International's second quarter performance in 2020 showed resilience amidst challenging times, with revenue and earnings per share reported.

Key Takeaways

CSG Systems International reported a solid second quarter in 2020, with total revenue of $240.3 million and GAAP EPS of $0.32. The company is maintaining its non-GAAP guidance despite the global pandemic.

Total revenue was $240.3 million.

GAAP operating income was $19.8 million, or 8.2% of total revenue.

GAAP earnings per diluted share (EPS) was $0.32 and non-GAAP EPS was $0.59.

Cash flows from operations were $57.7 million, with non-GAAP free cash flow of $48.2 million.

Total Revenue
$240M
Previous year: $246M
-2.3%
EPS
$0.59
Previous year: $0.85
-30.6%
Adjusted Operating Margin %
13.6%
Gross Profit
$102M
Previous year: $114M
-10.1%
Cash and Equivalents
$144M
Previous year: $114M
+26.6%
Free Cash Flow
$48.2M
Previous year: $6.03M
+698.8%
Total Assets
$1.27B
Previous year: $1.18B
+7.6%

CSG Systems

CSG Systems

CSG Systems Revenue by Geographic Location

Forward Guidance

CSG is updating its financial guidance for the full year 2020.

Positive Outlook

  • Revenue: No change $960 - $1,000 million
  • Cash Flows from Operating Activities: No change $110 - $135 million
  • Adjusted Revenue: No change $891 - $924 million
  • Adjusted Operating Margin Percentage: No change 16.0% - 16.5%
  • EPS: No change $2.87 - $3.10

Challenges Ahead

  • Operating Margin Percentage 11.1% - 11.7% (Previous 11.4% - 11.9%)
  • EPS $1.99 - $2.22 (Previous $2.04 - $2.27)
  • The company's business may be disrupted and its results of operations and cash flows adversely affected by the COVID-19 pandemic.
  • CSG derives approximately forty percent of its revenue from its two largest clients.
  • Fluctuations in credit market conditions, general global economic and political conditions, and foreign currency exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income