•
Sep 30, 2022

CSG Systems Q3 2022 Earnings Report

Reported strong revenue growth and excellent profitability due to margin improvement plan.

Key Takeaways

CSG Systems International reported a 3.8% increase in total revenue compared to Q3 2021. GAAP EPS was $0.40 and non-GAAP EPS was $1.06. The company returned $91 million to shareholders via share repurchases and dividends year-to-date.

Total revenue was $273.3 million.

GAAP operating income was 7.3% of total revenue.

GAAP earnings per diluted share (EPS) was $0.40 and non-GAAP EPS was $1.06.

Cash flows from operations were $22.8 million, with a non-GAAP free cash flow of $10.9 million.

Total Revenue
$273M
Previous year: $263M
+3.8%
EPS
$1.06
Previous year: $0.88
+20.5%
Adjusted Operating Margin %
18.3%
Previous year: 16.8%
+8.9%
Gross Profit
$135M
Previous year: $129M
+4.9%
Cash and Equivalents
$147M
Previous year: $195M
-24.9%
Free Cash Flow
$10.9M
Previous year: $38.7M
-71.8%
Total Assets
$1.26B
Previous year: $1.36B
-7.7%

CSG Systems

CSG Systems

Forward Guidance

CSG is updating its financial guidance for the full year 2022.

Positive Outlook

  • Revenue: $1,070 - $1,110 million
  • Adjusted Revenue: $1,000 - $1,033 million
  • Adjusted Operating Margin Percentage: 16.2% - 16.7%
  • EPS: $3.44 - $3.68
  • Adjusted EBITDA: $220 - $230 million

Challenges Ahead

  • Free Cash Flow: $25 - $40 million