Q1 2024 CSG Systems International Inc Earnings Call Transcript
Key Points
- CSG Systems International Inc achieved 30% of its revenue from industry verticals outside the communication service provider space, marking a significant milestone in revenue diversification.
- The company continues to reward shareholders through dividends and buybacks, with a 7% annual increase in dividends and $10 million in stock repurchases during the quarter.
- CSG Systems International Inc reported a strong sales pipeline and robust market demand for its SaaS products, contributing to confidence in meeting full-year 2024 guidance.
- The company successfully closed an acquisition expanding its customer base in the insurance sector, which is a high-priority vertical.
- CSG Systems International Inc is making significant progress in corporate responsibility, achieving a nearly 40% reduction in Scope 1 and 2 emissions since 2019, with a goal of reaching carbon neutrality by 2035.
- Q1 2024 revenue was slightly impacted negatively due to the absence of $10 million in high-margin one-time license revenue that was present in Q1 2023.
- Free cash flow for Q1 was softer than anticipated due to timing-related items, although these are not expected to affect the full-year free cash flow guidance.
- The company faces headwinds from subscriber losses at North American cable broadband customers, which could continue into the next quarters.
- The non-GAAP EPS decreased from $1.4 in Q1 2023 to $1.1 in Q1 2024, mainly due to lower operating income.
- There are ongoing challenges in the M&A landscape, with high asset pricing in previous years, although this is beginning to normalize.
Good morning. My name is Dee, and I will be your conference operator today. At this time, I would like to welcome everyone to the CSG first-quarter 2024 earnings call. (Operator Instructions)
Thank you. I would now like to turn the call over to John Rea, Treasurer and Head of Investor Relations. Please go ahead.
Thank you, operator, and thanks to everyone for joining us. Like last quarter, we will be working from a slide deck, which can be found on the Investor Relations section of our website. Please take a moment to locate these slides.
Today's discussion will contain a number of forward-looking statements. These include, but are not limited to statements regarding our projected financial results, our ability to meet our clients' needs through our products, services and performance, and our ability to successfully integrate and manage acquired businesses in order to achieve their expected strategic operating and financial goals.
While these risks reflect our best
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