Csg Systems International, Inc. · NASDAQ:CSGS
Csg Systems International — Q3 2023 Earnings Presentation
15 slides from Csg Systems International's earnings presentation, Nov 1, 2023
Slide 1: CSG Q3 & YTD 2023 Earnings Presentation
November 1, 2023 CSG Q3 & YTD 2023 Earnings Presentation
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: Q3 & YTD 2023 Business Highlights
Q3 & YTD 2023 Business Highlights Excellent Organic Good Customer Wins Raising Non-GAAP EPS Revenue Growth with in All Business Guidance + Reiterating Good Sales Pipeline Solutions All Other Targets ▪ Grew YTD revenue 9.0% ▪ Fully completed Charter ▪ Raising 2023 non-GAAP YoY (all organic), our subs
Slide 5: CSG's Key Strategic Priorities
CSG’s Key Strategic Priorities 1 2 3 4 Grow Organic Add Strategic Become #1 SaaS Diversify revenue Revenue Faster Operating Scale Provider for Global faster in exciting (50% bigger) Telecom & Cable big new verticals Consistently grow Grow CSG to >$1.5B Be easier to do business Consistently achieve o
Slide 6: Accelerating Growth & Operating Scale
Accelerating Growth & Operating Scale 1 Strategic 2 >50% Business Growth by FY2025 Revenue Acceleration BASE CASE GOAL HOW DO WE GET THERE? ▪ YTD 2023 revenue up 9.0% ▪ Grow organic revenue YoY (all organic) faster ▪ Good market demand ▪ Integrate highly ▪ Sustained long-term disciplined, strategic,
Slide 7: Look How Far CSG Has Come Since 2021
Look How Far CSG Has Come Since 2021 Organic Revenue Growth in USD & % Year-over-Year Growth Per Period $85M(1) 7.8% $49M $60M (2) 5.5% 4.9% $33M 3.2% $14M 1.8% 2016-2020 Average 2021 2022 2023 Guidance (1) High end of 2023 revenue guidance (2) Low end of 2023 revenue guidance 7
Slide 8: Continuing to Win Big with Global CSPs
Continuing to Win Big with Global CSPs 3 Become #1 SaaS Provider for Global Telecom & Cable Continued Growth Growing our North Expanding Wireless BSS with Charter & Comcast American Cable Business Business in Asia Pacific ▪ Fully completed migration ▪ Extended our 10+ year ▪ Won new B2B modernizatio
Slide 9: Winning Big in Large, Faster Growing Industries
Winning Big in Large, Faster Growing Industries 4 Diversifying Industry Vertical Revenue Targeting New Industry Verticals 7% Other 20% 27% Telco Financial Services Technology Other 23% Telco FY 2017 Q3 2023 Pharmacy Retail 70% 53% Cable/PayTV Cable/PayTV Government Insurance 9
Slide 10: AI is at the Forefront of CSG's Strategy
AI is at the Forefront of CSG’s Strategy CSG’s AI initiatives are contributing to greater customer value & internal efficiency Foundations of AI at CSG CSG AI Offerings Add Market Value in 3 Areas BSS CX Payments Establish Focus AI Use intelligent Train CSG AI CSG AI CSG AI responsible strategy on a
Slide 11: CSG is Laser Focused on Creating Greater Value
CSG is Laser Focused on Creating Greater Value To CSG’s Employees To CSG’s Customers To CSG’s Shareholders We will have the best We will continue to be We strive to deliver culture, best talent, & easier to do business faster recurring revenue a diverse global team with as we deliver more growth, im
Slide 12: Financial Results
▪Financial Results 12
Slide 13: YTD 2023 Financial Summary
YTD 2023 Financial Summary Revenue Non-GAAP Adjusted Operating Income $USD million $USD million & as a % revenue less transaction fees Highlights: 9.0% 17.5% Strong 9.0% YoY YTD 16.6% $872 2023 revenue growth; best Q3 YTD organic $800 $142 revenue growth in nearly $124 two decades Robust Q3 revenue
Slide 14: Strong Balance Sheet & Good Shareholder Returns
Strong Balance Sheet & Good Shareholder Returns Cash Flow from Ops Free Cash Flow Q3 2023 Liquidity $USD million $USD million $USD million Highlights: $52 Strong balance sheet Q2 ‘22 $29 $435 with significant flexibility Undrawn $147 Cash Revolving and optionality Credit ($22) YTD ‘23 Facility Total
Slide 15: YTD 2023 Conclusions and 2023 Revised Guidance
YTD 2023 Conclusions 2023 Revised Guidance GAAP MEASURES August 2023 November 2023 Best Q3 YTD organic revenue 1 growth in nearly two decades Revenue $1.15B – $1.175B $1.15B – $1.175B Transaction Fees $82M – $87M $82M – $87M Strong sales pipeline fueling good 2 revenue visibility & faster growth Sha
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