Csg Systems International, Inc. · NASDAQ:CSGS
Csg Systems International — Q3 2024 Earnings Presentation
15 slides from Csg Systems International's earnings presentation, Nov 6, 2024
Slide 1: CSG Q3 2024 Earnings Presentation
CSG Q3 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: Team CSG Executing Well in Q3 & YTD 2024
Team CSG Executing Well in Q3 & YTD 2024 Fantastic Win-Win Profitability Metrics Excellent New Logo Sales Expansion Signed Raised for Second Wins & Contract with Comcast Consecutive Quarter Extensions Globally ✓ 6-year term through ✓ Raising non-GAAP ✓ Continue to see new logo December 31, 2030 adju
Slide 5: CSG & Comcast Sign Exciting Win-Win Renewal
CSG & Comcast Sign Exciting Win-Win Renewal Extends Three Decade Partnership Builds on broad and deep 35+ year history Positive Win-Win Terms between the companies Comcast can unlock greater value by doing more business with CSG (no renewal discount) Supports Triple-Play & New Use Cases CSG will con
Slide 6: CSG Value Creation Priorities
CSG Value Creation Priorities 1 2% - 6% organic revenue growth with >35% revenue diversification from bigger, faster-growth industry verticals 2 18% - 20% non-GAAP adjusted op margin with $110M - $150M adjusted FCF (1) without impeding sales momentum 3 >$100M in capital to be returned to shareholder
Slide 7: CSG Value Proposition and Where We Compete
CSG Value Proposition and Where We Compete 1 Provide mission critical Purchase Help global brands in enterprise SaaS 2 industry verticals with solutions Onboard/ recurring subscription Educate and consumption-based Evaluate/ Learn business models Engage/ Use 3 Integrated “post- Target/ Harness their
Slide 8: 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% 30% 3.2% 23% FY 2017 YTD 2024 52% 1.8% 70% 18% -1.1% Period Average Period Period Average Period Low High Low High 2016 – 2020 2021 –
Slide 9: Continued Global Sales Success in 2024 YTD
1 Continued Global Sales Success in 2024 YTD Digital Monetization Leading U.S. Bank Data-Driven CX Payments Denmark Leading Regional Bank Sudan 9
Slide 10: Expanding CSG Profitability & Cash Generation
2 Expanding CSG Profitability & Cash Generation Tracking to expand Non-GAAP Operating Aspire to expand profitability to 18% - 20% Margin >130 basis points from 2022 to FY24 without impeding sales growth 17.9% 18.0%+ Continue to invest in new data-driven, AI-based CX, SaaS monetization, & richer 17.2
Slide 11: 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 1 Strategic Fit Brings strategic value to win more in the market Dividends Paid $161 Share Repurchases $130 $34 2 Financial Fit Accre
Slide 12: Financial Results
Financial Results 12
Slide 13: Q3 2024 Financial Summary
Q3 2024 Financial Summary Revenue Non-GAAP Adjusted Operating Income $USD million $USD million & as a % revenue less transaction fees Highlights: Raising 2024 profitability $295 17.0% 18.4% guidance for second $287 consecutive quarter; $50 reiterating all other full- $45 year 2024 financial guidance
Slide 14: Strong Balance Sheet & Good Shareholder Returns
Strong Balance Sheet & Good Shareholder Returns Q3 2024 Liquidity Non-GAAP Free Cash Flow Profile Highlights: $USD million $USD million Strong balance sheet with significant $118 Cash flexibility & optionality $32 YTD ‘23 Total H1 ‘21 Q1 ‘22 $566 ~25% YTD YoY increase $18 H1 ‘23 ‘22 YTD ‘22 YTD ‘22
Slide 15: Conclusions and 2024 Guidance
Conclusions 2024 Guidance GAAP MEASURES August 2024 November 2024 Signed landmark Comcast contract 1 extension through year-end 2030 Revenue $1.20B – $1.24B $1.20B – $1.24B Transaction Fees $98M – $103M $98M – $103M Raising 2024 profitability guidance for 2 second consecutive quarter Share Count ~29
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