Q2 2024 CSG Systems International Inc Earnings Call Transcript
Key Points
- CSG Systems International Inc (CSGS) raised its profitability and non-GAAP EPS guidance targets for 2024 due to strong Q2 performance.
- The company has secured exciting new logo sales wins and deal expansions, contributing to confidence in continued organic revenue growth.
- CSG Systems International Inc (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.
- The Board of Directors authorized an additional $100 million share buyback program, demonstrating a commitment to returning capital to shareholders.
- CSG Systems International Inc (CSGS) has shown significant improvement in non-GAAP adjusted operating margin, growing from 16.6% in 2022 to 17.3% in Q2 2024.
- CSG Systems International Inc (CSGS) expects to end 2024 towards the low end of its 2% to 6% organic revenue growth range due to small headwinds.
- The company is experiencing some belt-tightening with current and prospective customers, impacting revenue expectations.
- There are small headwinds in the North American broadband market affecting revenue growth.
- CSG Systems International Inc (CSGS) faces timing-related headwinds in services-based revenue recognition for large global telecommunication deployments.
- The company anticipates some short-term impacts to cash flows in 2024 due to restructuring expenses related to cost reduction initiatives.
Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the CSG's second quarter 2024 earnings call. (Operator Instructions)
Again, thank you for now I'd like to turn the call over to John Rea, Head of Investor Relations and Treasury. 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
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