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Sep 30, 2024

CSG Systems Q3 2024 Earnings Report

CSG Systems' Q3 2024 performance reflected good operating results, leading to increased profitability and non-GAAP EPS guidance for the second consecutive quarter, along with a commitment to return over $100 million to shareholders through dividends and buybacks.

Key Takeaways

CSG Systems International reported a 2.9% increase in revenue to $295.1 million for Q3 2024. GAAP EPS increased to $0.67, and non-GAAP EPS rose to $1.06. The company is raising its 2024 profitability and non-GAAP EPS guidance targets for a second consecutive quarter and plans to return $100+ million to shareholders via dividends and share repurchases in each of 2024 and 2025.

Total revenue was $295.1 million.

GAAP operating income was $31.8 million, with a margin of 10.8%.

GAAP earnings per diluted share (EPS) was $0.67, and non-GAAP EPS was $1.06.

Cash flows from operations were $39.5 million, with non-GAAP free cash flow of $32.0 million.

Total Revenue
$295M
Previous year: $287M
+2.9%
EPS
$1.06
Previous year: $0.92
+15.2%
Gross Profit
$146M
Previous year: $134M
+8.6%
Cash and Equivalents
$118M
Previous year: $147M
-19.3%
Free Cash Flow
$32M
Previous year: $18.1M
+76.8%
Total Assets
$1.39B
Previous year: $1.33B
+4.4%

CSG Systems

CSG Systems

CSG Systems Revenue by Geographic Location

Forward Guidance

CSG is revising its financial guidance for the full year 2024.

Positive Outlook

  • Revenue: No change, remains at $1,200 - $1,240 million
  • Adjusted Operating Margin Percentage: Revised to 17.7% - 18.1% (previous: 17.3% - 17.7%)
  • EPS: Revised to $4.25 - $4.55 (previous: $4.05 - $4.35)
  • Adjusted EBITDA: Revised to $251 - $261 million (previous: $247 - $257 million)
  • Free Cash Flow: No change, remains at $95 - $135 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income