Csg Systems International, Inc. · NASDAQ:CSGS
Csg Systems International — Q2 2024 Earnings Presentation
13 slides from Csg Systems International's earnings presentation, Aug 7, 2024
Slide 1: CSG Q2 2024 Earnings Presentation
CSG Q2 2024 Earnings Presentation Brian Shepherd CEO & President, CSG Hai Tran CFO & President of Global Telecommunications, CSG
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Use of Non-GAAP Statements + Disclaimers Financial Measures This presentation contains forward-looking statements within the To supplement our condensed consolidated financial statements presented in accordance with generally meaning of the Private Securities Litigation R
Slide 3: Business Results
Business Results 3
Slide 4: CSG Value Creation Priorities Over Next Two Years
CSG Value Creation Priorities Over Next Two Years 1 Grow annual organic revenue 2% - 6% while aspiring to exceed 35% revenue diversification from big new industry verticals 2 Expand non-GAAP adjusted operating margin to 18% - 20% with good free cash flow without impeding sales growth 3 Authorize new
Slide 5: CSG Value Proposition and Where We Compete
CSG Value Proposition and Where We Compete 1 Provide mission critical Purchase Power global brands in enterprise SaaS 2 targeted industry verticals solutions focused on Onboard/ with recurring subscription Educate and consumption-based Evaluate/ Learn business models Engage/ Use 3 Integrated “post-
Slide 6: Accelerating Growth & Revenue Diversification
1 Accelerating Growth & Revenue Diversification Much Faster Organic Growth Big Revenue Diversification Success 7.3% Cable / Pay TV Telco Other Verticals 5.1% 7% 3.8% 31% 3.2% 23% FY 2017 Q2 2024 53% 1.8% 70% 16% -1.1% Period Average Period Period Average Period Low High Low High 2016 – 2020 2021 – 2
Slide 7: Continued Global Sales Success in Q2
1 Continued Global Sales Success in Q2 Digital Monetization Data-Driven CX Payments Denmark Leading Regional Bank Sudan 7
Slide 8: Expanding CSG Profitability & Free Cash Flow Growth
2 Expanding CSG Profitability & Free Cash Flow Growth Committed to expanding Non-GAAP Operating Aspire to expand profitability to 18% - 20% Margin >150 basis points since 2022 without impeding sales growth 18.0%+ Continue to invest in new data-driven, 17.5% AI-based CX, SaaS monetization, & richer 1
Slide 9: Commitment to Shareholder Returns + Accretive M&A
3 Commitment to Shareholder Returns + Accretive M&A Commitment to Shareholder Returns Disciplined & Accretive M&A Shareholder Remuneration (2020 – 2024) $ in millions $161 1 Strategic Fit Brings strategic value to win more in the market Dividends Paid Share Repurchases $130 $34 $33 2 Financial Fit A
Slide 10: Financial Results
Financial Results 10
Slide 11: Q2 2024 Financial Summary
Q2 2024 Financial Summary Revenue Non-GAAP Adjusted Operating Income Highlights: $USD million $USD million & as a % revenue less transaction fees Raising 2024 non-GAAP $286 $290 17.3% adjusted operating 16.2% income margin, non- $46 GAAP adjusted EBITDA $43 and non-GAAP EPS; reiterating all other fu
Slide 12: Strong Balance Sheet & Good Shareholder Returns
Strong Balance Sheet & Good Shareholder Returns Non-GAAP Adjusted Free Q2 2024 Liquidity Highlights: Cash Flow Profile $USD million $USD million Strong balance sheet with significant flexibility $110 Cash and optionality $39 Significant year-over- YTD ‘23 Total H1 ‘21 Q1 ‘22 $558 year increase in Q2
Slide 13: Conclusions and 2024 Guidance
Conclusions 2024 Guidance GAAP MEASURES February 2024 August 2024 Raising several 2024 full-year 1 financial guidance targets Revenue $1.20B – $1.24B $1.20B – $1.24B Transaction Fees $98M – $103M $98M – $103M Strong sales pipeline fueling good 2 revenue visibility & organic growth Share Count ~29 mi
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