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Sep 30, 2020

CSG Systems Q3 2020 Earnings Report

CSG Systems reported strong results in a challenging environment, driven by its resilient business model and broad portfolio of solutions.

Key Takeaways

CSG Systems International reported a revenue of $244.1 million and GAAP EPS of $0.42 for the third quarter of 2020. The company's performance reflects its ability to help clients solve complex problems and its strong positioning for the future.

Total revenue was $244.1 million; non-GAAP adjusted revenue was $227.7 million.

GAAP operating income was $28.9 million, or 11.9% of total revenue; non-GAAP operating income was $39.1 million, or 17.2% of non-GAAP adjusted revenue.

GAAP earnings per diluted share (EPS) was $0.42 and non-GAAP EPS was $0.76.

Cash flows from operations were $65.2 million, with non-GAAP free cash flow of $55.3 million.

Total Revenue
$244M
Previous year: $251M
-2.9%
EPS
$0.76
Previous year: $0.88
-13.6%
Operating Margin %
11.9%
Adjusted Operating Margin %
17.2%
Gross Profit
$113M
Previous year: $119M
-5.3%
Cash and Equivalents
$174M
Previous year: $161M
+8.6%
Free Cash Flow
$55.3M
Previous year: $69.3M
-20.1%
Total Assets
$1.27B
Previous year: $1.21B
+5.4%

CSG Systems

CSG Systems

CSG Systems Revenue by Geographic Location

Forward Guidance

CSG updated its financial guidance for the full year 2020.

Positive Outlook

  • Revenue: No change $960 - $1,000 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: 9.7% - 10.4% Previous 11.1% - 11.7%
  • EPS: $1.58 - $1.81 Previous $1.99 - $2.22
  • Cash Flows from Operating Activities: $125 - $145 million Previous $110 - $135 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income