NASDAQ$CSGS

CSG Systems International Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

CSG Systems International's second quarter performance in 2020 showed resilience amidst challenging times, with revenue and earnings per share reported.

CSG Systems International reported a solid second quarter in 2020, with total revenue of $240.3 million and GAAP EPS of $0.32. The company is maintaining its non-GAAP guidance despite the global pandemic.

  • Total revenue was $240.3 million.
  • GAAP operating income was $19.8 million, or 8.2% of total revenue.
  • GAAP earnings per diluted share (EPS) was $0.32 and non-GAAP EPS was $0.59.
  • Cash flows from operations were $57.7 million, with non-GAAP free cash flow of $48.2 million.

Headline financials

Total Revenue

$240M

Previous: $246M-2.3%
EPS (adj)

$0.59

Previous: $0.85-30.6%
Adjusted Operating Margin Percentage

13.6%

No prior period
Capital Expenditures

-$14.3M

Previous: -$17.9M+19.7%
Free Cash Flow

-$3.97M

Previous: $1.52M-360.9%
Net Income

$10.4M

Previous: $19.4M-46.5%
Operating Income

$19.8M

Previous: $30.3M-34.8%
Gross Profit

$102M

Previous: $114M-10.1%
Cash & Equivalents

$144M

Previous: $114M+26.6%
Total Assets

$1.27B

Previous: $1.18B+7.6%
Stock-Based Comp

$5.26M

Previous: $4.81M+9.3%

Revenue & EPS history

CSG Systems · Revenue · Quarterly

$240M

Q2 2020-2.3%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

CSG Systems · $240M total across 3 segments · Q2 2020

  • Broadband/Cable/Satellite
    $144M+1.0%
  • All other
    $52.9M-6.5%
  • Telecommunications
    $43.3M-7.3%

Forward guidance

CSG is updating its financial guidance for the full year 2020.

Tailwinds

  • Revenue: No change $960 - $1,000 million
  • Cash Flows from Operating Activities: No change $110 - $135 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

Headwinds

  • Operating Margin Percentage 11.1% - 11.7% (Previous 11.4% - 11.9%)
  • EPS $1.99 - $2.22 (Previous $2.04 - $2.27)
  • The company's business may be disrupted and its results of operations and cash flows adversely affected by the COVID-19 pandemic.
  • CSG derives approximately forty percent of its revenue from its two largest clients.
  • Fluctuations in credit market conditions, general global economic and political conditions, and foreign currency exchange rates.

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 Q2 2020

Historical avgQ2 2020

+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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