In This Article:
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Revenue: $295 million in Q3 2024, up from $287 million in Q3 2023.
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Non-GAAP Adjusted Operating Margin: 18.4% in Q3 2024, compared to 17.0% in Q3 2023.
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Non-GAAP Adjusted EBITDA: $64 million in Q3 2024, representing 23.4% of revenue.
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Non-GAAP EPS: $1.06 in Q3 2024, a 15% increase from $0.92 in Q3 2023.
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Free Cash Flow: $32 million in Q3 2024, compared to $18 million in Q3 2023.
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Net Debt: $434 million as of September 30, 2024, with a net debt leverage ratio of 1.8 times adjusted EBITDA.
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Shareholder Returns: $70 million returned through dividends and share repurchases in the first nine months of 2024.
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Guidance: Revenue expected at the low end of $1.2 billion to $1.24 billion range for 2024.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CSG Systems International Inc (NASDAQ:CSGS) announced a significant contract renewal with Comcast, extending their partnership through 2030, which is expected to unlock greater value for both companies.
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The company raised its profitability and EPS guidance targets for the second consecutive quarter, indicating strong financial performance.
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CSG Systems International Inc (NASDAQ:CSGS) reported an 18.4% non-GAAP adjusted operating margin in Q3, showcasing improved profitability.
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Free cash flow increased by 25% year-over-year, reaching $37 million in the first nine months of 2024.
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The company achieved strong sales wins and deal expansions across various sectors, including telecom, financial services, and healthcare, highlighting its diversified growth strategy.
Negative Points
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CSG Systems International Inc (NASDAQ:CSGS) expects to end the year at the low end of its revenue guidance range due to lower revenue expectations in its core business.
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The company is experiencing some headwinds in the North American broadband market, impacting revenue growth.
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There are timing-related headwinds in revenue recognition for some large global telecommunications projects, affecting short-term financial performance.
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CSG Systems International Inc (NASDAQ:CSGS) noted a general belt-tightening among customers, leading to a slower growth period in the near term.
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The company faced $18 million in restructuring costs impacting cash flow, which are expected to be a short-term headwind.
Q & A Highlights
Q: Can you provide more details on the Comcast renewal, particularly regarding the structure of the deal and any price concessions? A: Brian Shepherd, CEO: The Comcast renewal is a win-win contract with no hidden step-downs or price concessions. We continue to serve Comcast across their triple play and other business areas. While there was no day-one price increase, we agreed to annual price escalators starting in 2026. This structure incentivizes Comcast to do more business with us, reflecting the value we bring through our investments and services.