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Jun 30, 2021

CSG Systems Q2 2021 Earnings Report

Reported strong revenue and adjusted revenue growth with each up 6.2% year-over-year and raised all 2021 financial guidance targets due to strong H1 2021 results.

Key Takeaways

CSG Systems International reported a 6.2% year-over-year increase in both revenue and adjusted revenue for Q2 2021. The company is raising all 2021 financial guidance targets, including revenue, adjusted operating margin and EPS.

Total revenue was $255.1 million and total non-GAAP adjusted revenue was $238.5 million.

GAAP operating income was $32.2 million, or 12.6% of total revenue, and non-GAAP operating income was $39.8 million, or 16.7% of non-GAAP adjusted revenue.

GAAP earnings per diluted share (EPS) was $0.60 and non-GAAP EPS was $0.82.

Cash flows used in operations were $44.5 million, with a non-GAAP free cash flow of $37.5 million.

Total Revenue
$255M
Previous year: $240M
+6.2%
EPS
$0.82
Previous year: $0.59
+39.0%
Adjusted Operating Margin %
16.7%
Previous year: 13.6%
+22.8%
Gross Profit
$122M
Previous year: $102M
+19.6%
Cash and Equivalents
$164M
Previous year: $144M
+13.7%
Free Cash Flow
$37.5M
Previous year: $48.2M
-22.1%
Total Assets
$1.29B
Previous year: $1.27B
+1.8%

CSG Systems

CSG Systems

CSG Systems Revenue by Segment

CSG Systems Revenue by Geographic Location

Forward Guidance

CSG is updating its financial guidance for the full year 2021.

Positive Outlook

  • Revenue between $1,015 and $1,045 million.
  • Operating Margin Percentage between 12.3% and 12.7%.
  • EPS between $2.35 and $2.53.
  • Cash Flows from Operating Activities between $140 and $160 million.
  • Adjusted Revenue between $946 and $964 million.

Challenges Ahead

  • Adjusted Operating Margin Percentage between 16.5% and 17.0%.
  • EPS between $3.16 and $3.34.
  • Adjusted EBITDA between $217 and $225 million.
  • Free Cash Flow between $115 and $125 million.
  • Less: Transaction fees (69,000 ) (81,000 )

Revenue & Expenses

Visualization of income flow from segment revenue to net income