In This Article:
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Revenue: $290 million in Q2 2024, up from $286 million in Q2 2023.
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Non-GAAP Operating Income: $46 million in Q2 2024, with a margin of 17.3%, compared to $43 million and 16.2% in Q2 2023.
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Non-GAAP Adjusted EBITDA: $60 million in Q2 2024, or 22.6% of revenue, compared to $57 million or 21.4% in Q2 2023.
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Non-GAAP EPS: $1.20 in Q2 2024, up from $0.80 in Q2 2023.
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Non-GAAP Free Cash Flow: $39 million in Q2 2024, compared to $5 million in Q2 2023.
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Cash and Cash Equivalents: $110 million at the end of Q2 2024.
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Net Debt: $444 million with a net debt leverage ratio of 1.9 times adjusted EBITDA.
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Shareholder Returns: $46 million returned in dividends and share repurchases in the first half of 2024.
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Share Buyback Authorization: New $100 million share repurchase program authorized.
Release Date: August 07, 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) raised its profitability and non-GAAP EPS guidance targets for 2024 due to strong Q2 performance.
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The company has secured exciting new logo sales wins and deal expansions, contributing to confidence in continued organic revenue growth.
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CSG Systems International Inc (NASDAQ:CSGS) has expanded its non-GAAP operating margin target to a new long-term range of 18% to 20%, with free cash flow expected to grow faster than revenue.
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The Board of Directors authorized an additional $100 million share buyback program, demonstrating a commitment to returning capital to shareholders.
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CSG Systems International Inc (NASDAQ:CSGS) has shown significant improvement in non-GAAP adjusted operating margin, growing from 16.6% in 2022 to 17.3% in Q2 2024.
Negative Points
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CSG Systems International Inc (NASDAQ:CSGS) expects to end 2024 towards the low end of its 2% to 6% organic revenue growth range due to small headwinds.
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The company is experiencing some belt-tightening with current and prospective customers, impacting revenue expectations.
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There are small headwinds in the North American broadband market affecting revenue growth.
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CSG Systems International Inc (NASDAQ:CSGS) faces timing-related headwinds in services-based revenue recognition for large global telecommunication deployments.
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The company anticipates some short-term impacts to cash flows in 2024 due to restructuring expenses related to cost reduction initiatives.
Q & A Highlights
Q: Have the near-term headwinds on top client accounts worsened since last quarter, and how long do you expect these headwinds to persist? A: Brian Shepherd, CEO: The headwinds have not worsened compared to last quarter. In fact, the broadband numbers from the North American cable space were better than anticipated. We expect Q3 and Q4 to be strong, with sales booking wins giving us confidence. We aim to return to 5% or higher growth, as delivered in previous years.