NASDAQ$CSGS

CSG Systems International Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

CSG Systems' first quarter performance in 2024 reflected a solid start with revenue diversification and consistent financial guidance.

CSG Systems reported a slight decrease in revenue compared to the previous year, but confirmed its 2024 financial guidance targets. The company saw a significant increase in revenue from industry verticals outside of CSPs, exceeding 30% for the first time. CSG also returned over $160 million to shareholders in the last twelve months, including $19 million in Q1.

  • Total revenue was $295.1 million, a 1.2% decrease year-over-year.
  • GAAP EPS was $0.68, consistent with the first quarter of 2023, while non-GAAP EPS was $1.01.
  • GAAP operating income was $31.8 million, with an operating margin of 10.8%.
  • Revenue from industry verticals outside of CSPs exceeded 30% for the first time, compared to 7% in 2017.

Headline financials

Total Revenue

$295M

Previous: $299M-1.2%
EPS (adj)

$1.01

Previous: $1.04-2.9%
Capital Expenditures

-$4.77M

Previous: -$8.7M+45.1%
Free Cash Flow

$14.7M

Previous: $12.2M+20.2%
Net Income

$19.5M

Previous: $20.9M-7.0%
Operating Income

$31.8M

Previous: $38.2M-16.7%
Gross Profit

$137M

Previous: $144M-4.5%
Cash & Equivalents

$121M

Previous: $168M-28.0%
Total Assets

$1.29B

Previous: $1.3B-0.2%
R&D Expense

$36.1M

No prior period
Stock-Based Comp

$7.74M

Previous: $6.41M+20.6%

Revenue & EPS history

CSG Systems · Revenue · Quarterly

$295M

Q1 2024-1.2%vs Q1 2023
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

CSG Systems · $262M total across 3 segments · Q2 2022

  • Broadband/Cable/Satellite
    $144M-2.6%
  • All other
    $68.2M+11.3%
  • Telecommunications
    $49.8M+8.5%

Forward guidance

CSG reaffirmed its financial guidance for the full year 2024.

Tailwinds

  • Revenue: $1,200 - $1,240 million
  • Adjusted Operating Margin Percentage: 17.0% - 17.4%
  • EPS: $3.85 - $4.15
  • Adjusted EBITDA: $245 - $255 million
  • Free Cash Flow: $95 - $135 million

Headwinds

  • Fluctuations in credit market conditions, general global economic and political conditions, and foreign currency exchange rates.
  • CSG’s ability to maintain a reliable, secure computing environment.
  • Continued market acceptance of CSG’s products and services.
  • CSG’s ability to continuously develop and enhance products in a timely, cost-effective, technically advanced and competitive manner.
  • CSG’s ability to deliver its solutions in a timely fashion within budget, particularly large and complex software implementations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.6%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+2.2%

Avg return

30 days after

58%

38 / 66 earnings

Positive

+15.6%

Q2 2023

Best reaction

-19.0%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.4%
Q4 2025+0.5%+0.3%+0.5%
Q3 2025-0.2%+0.2%-1.6%
Q2 2025+1.2%-1.3%+3.4%
Q1 2025+6.5%+6.9%+5.0%
Q4 2024+5.5%+2.3%+4.0%
Q3 2024+14.3%+14.9%+10.9%
Q2 2024+7.6%+6.4%+7.0%
Q1 2024-11.0%-9.2%-8.7%
Q4 2023+14.9%+17.8%+14.3%
Q3 2023+3.4%+7.4%+12.6%
Q2 2023+15.6%+5.9%+6.2%
Q1 2023-3.1%-5.0%-0.9%
Q4 2022+3.8%+1.9%-4.3%
Q3 2022-8.4%-7.0%-2.9%
Q2 2022-13.6%-13.3%-12.4%
Q1 2022-2.5%-4.4%+2.1%
Q4 2021+2.7%+1.0%+10.2%
Q3 2021+5.1%+6.8%+5.2%
Q2 2021+2.4%+1.8%+7.8%
Q1 2021-1.3%-0.9%-6.7%
Q4 2020-0.0%+1.2%+4.0%
Q3 2020+1.6%+6.6%+10.8%
Q2 2020-0.8%+1.5%-5.8%
Q1 2020-3.1%-3.2%+2.8%
Q4 2019-0.1%+0.6%-15.4%
Q3 2019+10.5%+9.6%+9.6%
Q2 2019+4.4%+2.7%+10.0%
Q1 2019+7.4%+6.0%+0.4%
Q4 2018+11.6%+11.7%+12.3%
Q3 2018+2.4%+4.0%-8.4%
Q2 2018-4.8%-5.3%-8.2%
Q1 2018-7.8%-10.4%-4.9%
Q4 2017+2.0%+1.6%+6.9%
Q3 2017+6.0%+4.2%+6.6%
Q2 2017-4.3%-7.2%-7.5%
Q1 2017+5.6%+3.9%+8.8%
Q4 2016-19.0%-18.8%-19.4%
Q3 2016+12.1%+6.3%+18.9%
Q2 2016+3.6%+1.6%+11.1%
Q1 2016-6.8%
Q4 2015+10.5%
Q3 2015+11.4%
Q2 2015+6.8%
Q1 2015+3.3%
Q4 2014+14.5%
Q3 2014-3.2%
Q2 2014+1.3%
Q1 2014-4.0%
Q4 2013-6.6%
Q3 2013+3.0%
Q2 2013+4.5%
Q1 2013-5.1%
Q4 2012+6.1%
Q3 2012-2.6%
Q2 2012+11.0%
Q1 2011+1.5%
Q1 2012+2.9%
Q4 2009-1.1%
Q4 2011-1.1%
Q3 2011-2.4%
Q3 2010-2.4%
Q2 2010-2.7%
Q4 2010-2.7%
Q2 2011-2.7%
Q1 2010+2.4%

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