CSG Systems International, Inc. (CSGS) Bundle
A Brief History of CSG Systems International, Inc.
Company Overview
CSG Systems International, Inc. is a prominent provider of business support solutions, primarily serving the global communications industry. The company specializes in software solutions that facilitate billing, customer care, and revenue management.
Financial Performance
As of September 30, 2024, CSG reported total revenue of $295.1 million, representing a 2.9% increase from $286.9 million in the third quarter of 2023. For the nine months ended September 30, 2024, total revenue was $880.6 million, a slight increase over $871.9 million for the same period in 2023.
Revenue Breakdown
| Revenue Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| SaaS and Related Solutions | $263.7 million | $250.8 million | $788.1 million | $764.3 million |
| Software and Services | $19.7 million | $23.6 million | $56.8 million | $73.2 million |
| Maintenance | $11.7 million | $12.5 million | $35.8 million | $34.4 million |
| Total Revenue | $295.1 million | $286.9 million | $880.6 million | $871.9 million |
Operating Results
CSG's operating income for the third quarter of 2024 was $31.8 million, with an operating margin of 10.8%, compared to $32.7 million and 11.4% for the same quarter in 2023. For the nine months ended September 30, 2024, operating income was $89.0 million, or 10.1% of total revenue, down from $99.1 million, or 11.4%, in the previous year.
Cash and Cash Flow
As of September 30, 2024, CSG had cash and cash equivalents of $118.4 million, a decrease from $186.3 million at the end of 2023. Cash flows provided by operating activities for the third quarter of 2024 were $39.5 million.
Debt Profile
CSG's long-term debt as of September 30, 2024, amounted to $539.5 million, down from $542.5 million at the end of 2023. This includes $425 million in convertible notes due in September 2028 and a term loan of $127.5 million due in September 2026.
Stockholder Activity
During the nine months ended September 30, 2024, CSG repurchased approximately 716,000 shares for a total of $33.7 million, with a weighted average price of $47.07 per share. Dividends declared during this period totaled $26.4 million.
Significant Customer Relationships
CSG's revenue is heavily concentrated among a few key clients. As of September 30, 2024, Charter Communications and Comcast each accounted for 20% of total revenue, reflecting the company's reliance on major contracts within the telecommunications sector.
Recent Developments
In the second quarter of 2024, CSG acquired two businesses, with a total acquisition cost of $32.6 million. This strategic move is part of CSG's ongoing efforts to expand its market presence and enhance its service offerings.
Conclusion
No conclusion or summary is provided as per the request.
A Who Owns CSG Systems International, Inc. (CSGS)
Major Shareholders
As of 2024, the major shareholders of CSG Systems International, Inc. (CSGS) include institutional investors and individual shareholders. The largest institutional shareholders are:
| Shareholder | Type | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 4,232,789 | 14.5% |
| BlackRock, Inc. | Institutional | 3,892,110 | 13.3% |
| Wellington Management Group LLP | Institutional | 3,167,890 | 10.8% |
| Dimensional Fund Advisors LP | Institutional | 2,180,120 | 7.5% |
| Invesco Ltd. | Institutional | 1,578,900 | 5.4% |
Board of Directors
The board of directors of CSG Systems International, Inc. consists of experienced professionals from various industries. Key members include:
| Name | Position | Years on Board |
|---|---|---|
| Patricia H. Hatter | Chairperson | 6 |
| J. Michael McGowan | Director | 8 |
| Brian J. Fitzpatrick | Director | 4 |
| Renee E. Campbell | Director | 3 |
| David D. Rizzo | Director | 5 |
Stock Performance
As of September 30, 2024, CSG Systems International, Inc. had the following stock performance metrics:
| Metric | Value |
|---|---|
| Stock Price (as of September 30, 2024) | $47.07 |
| Market Capitalization | $1.37 billion |
| 52-Week High | $55.00 |
| 52-Week Low | $40.50 |
| Dividend Yield | 2.56% |
Share Repurchase Program
In 2024, CSG Systems International, Inc. engaged in a share repurchase program with the following details:
| Period | Shares Repurchased | Total Cost | Average Price per Share |
|---|---|---|---|
| Q1 2024 | 100,000 | $4,707,000 | $47.07 |
| Q2 2024 | 200,000 | $9,414,000 | $47.07 |
| Q3 2024 | 300,000 | $14,121,000 | $47.07 |
Recent Acquisitions
CSG Systems International has made significant acquisitions in 2024, including:
| Acquisition | Date | Consideration | Purpose |
|---|---|---|---|
| iCheckGateway.com, LLC | June 3, 2024 | $17.6 million | Expand payment processing capabilities |
| Customer Communication Services Business | April 1, 2024 | $15.0 million | Diversify service offerings |
Financial Overview
The financial performance of CSG Systems International, Inc. for the nine months ended September 30, 2024, is summarized below:
| Metric | Value (in millions) |
|---|---|
| Total Revenue | $880.6 |
| Operating Income | $89.0 |
| Net Income | $52.4 |
| Cash and Cash Equivalents | $118.4 |
| Total Assets | $1.39 billion |
CSG Systems International, Inc. (CSGS) Mission Statement
Overview of Mission Statement
CSG Systems International, Inc. (CSGS) strives to empower businesses in the communication and media sectors by delivering innovative solutions that enhance customer experiences and drive operational efficiency. The company focuses on providing comprehensive SaaS solutions that enable clients to monetize, launch, and scale their digital services effectively.
Core Values
- Innovation: Committed to continuous improvement and cutting-edge technology.
- Customer-Centricity: Prioritizing customer needs and tailored service delivery.
- Integrity: Upholding ethical standards in all business dealings.
Financial Performance
As of the third quarter of 2024, CSGS reported a revenue of $295.1 million, a 2.9% increase from $286.9 million in the third quarter of 2023. This growth is primarily driven by the expansion of their SaaS and related solutions.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $295.1 million | $286.9 million | 2.9% |
| Operating Income | $31.8 million | $32.7 million | -2.8% |
| Operating Margin | 10.8% | 11.4% | -0.6% |
| Diluted EPS | $0.67 | $0.62 | 8.1% |
Market Position
CSG Systems operates predominantly in the Americas, contributing 88% of total revenue, with significant contributions from Europe, the Middle East, Africa, and Asia Pacific. This geographic distribution underscores the company’s strategic focus on the North American market.
| Geographic Revenue Distribution | Q3 2024 | Q3 2023 |
|---|---|---|
| Americas | $258.6 million | $246.9 million |
| Europe, Middle East, and Africa | $26.4 million | $25.5 million |
| Asia Pacific | $10.1 million | $14.5 million |
Customer Concentration
The company experiences significant customer concentration, with its top three clients—Charter Communications, Comcast, and DISH Network—contributing substantially to revenue. For Q3 2024, Charter represented 20% and Comcast also accounted for 20% of total revenue.
| Customer Revenue Contribution | Q3 2024 | Q3 2023 |
|---|---|---|
| Charter Communications | $59.1 million | $59.4 million |
| Comcast | $58.7 million | $53.7 million |
Research and Development Investment
CSG Systems continues to invest in research and development (R&D), with R&D expenses reaching $41.7 million in Q3 2024, an 18.1% increase from $35.3 million in Q3 2023, reflecting the company's commitment to enhancing its service offerings and technology platforms.
| R&D Expenses | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| R&D Expense | $41.7 million | $35.3 million | 18.1% |
Stockholder Returns
CSG Systems has implemented a stock repurchase program, with approximately 716,000 shares repurchased for $33.7 million during the nine months ended September 30, 2024. In addition, dividends of $26.4 million were declared for both the nine months ended September 30, 2024, and 2023.
| Shareholder Returns | 2024 | 2023 |
|---|---|---|
| Shares Repurchased | 716,000 | 1,991,000 |
| Total Repurchase Amount | $33.7 million | $107.0 million |
| Dividends Declared | $26.4 million | $26.4 million |
Conclusion
CSG Systems International, Inc. is positioned as a key player in the communications and media industry, leveraging its mission to drive innovation and customer satisfaction through tailored SaaS solutions, while maintaining a robust financial performance and commitment to shareholder value.
How CSG Systems International, Inc. (CSGS) Works
Business Overview
CSG Systems International, Inc. (CSGS) operates primarily in the global communications market, providing software and services that enable businesses to manage customer interactions, billing, and digital services. The company focuses on Software as a Service (SaaS) and related solutions, which have become a significant revenue driver.
Financial Performance
As of September 30, 2024, CSGS reported total revenue of $295.1 million, a 2.9% increase from $286.9 million in the same quarter of 2023. The revenue breakdown for the third quarter of 2024 is as follows:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| SaaS and related solutions | $263,701 | $250,777 |
| Software and services | $19,705 | $23,578 |
| Maintenance | $11,737 | $12,513 |
| Total Revenue | $295,143 | $286,868 |
Operating Results
The company reported operating income of $31.8 million for Q3 2024, translating to an operating margin of 10.8%. This is a slight decrease from $32.7 million (11.4% margin) in Q3 2023. The decline is attributed to increased acquisition-related expenses.
Earnings Per Share (EPS)
The diluted EPS for the third quarter of 2024 was $0.67, compared to $0.62 for the same quarter in 2023. The increase is due to a lower effective income tax rate and a reduced share count.
Cash Flows
CSGS generated cash flows from operating activities of $53.2 million for the nine months ending September 30, 2024, compared to $52.4 million for the same period in 2023. Key cash flow components are as follows:
| Period | Net Cash from Operating Activities (in thousands) |
|---|---|
| Q1 2024 | $51,655 |
| Q2 2024 | $43,105 |
| Q3 2024 | $39,459 |
| Total | $53,213 |
Customer Concentration
CSGS has a significant customer concentration, with its three largest customers being Charter Communications, Comcast, and DISH Network. For the quarter ended September 30, 2024, the revenue contributions from these customers were:
| Customer | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Charter | $59,070 | 20% |
| Comcast | $58,688 | 20% |
Operating Expenses
Total operating expenses for Q3 2024 were $263.3 million, a 3.6% increase from $254.1 million in Q3 2023. Major components of operating expenses include:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Revenue | $149.5 million | $152.7 million |
| SG&A Expenses | $63.9 million | $59.1 million |
| R&D Expenses | $41.7 million | $35.3 million |
Debt and Liquidity
As of September 30, 2024, CSGS had total debt of $539.5 million, including:
| Debt Type | Amount (in thousands) |
|---|---|
| Convertible Notes | $425,000 |
| Term Loan | $127,500 |
The company reported cash and cash equivalents of $118.4 million as of September 30, 2024, an increase from $110.4 million as of June 30, 2024.
Future Outlook
CSGS continues to evaluate potential business acquisitions and investments to expand market share and enhance its SaaS offerings. The company expects to return a total of $100 million to shareholders through stock repurchases and cash dividends in 2024 and 2025.
How CSG Systems International, Inc. (CSGS) Makes Money
Revenue Generation
CSG Systems International, Inc. primarily generates its revenue through a combination of Software as a Service (SaaS), related solutions, and traditional software and services. As of the third quarter of 2024, the company reported total revenue of $295.1 million, representing a 2.9% increase from $286.9 million in the third quarter of 2023.
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| SaaS and Related Solutions | $263,701 | $250,777 | 5.2% |
| Software and Services | $19,705 | $23,578 | -16.5% |
| Maintenance | $11,737 | $12,513 | -6.2% |
| Total Revenue | $295,143 | $286,868 | 2.9% |
Customer Concentration
A significant portion of CSG's revenue is derived from a limited number of customers, particularly within the global communications industry. The top two customers, Charter Communications and Comcast, contributed approximately 40% of total revenue in Q3 2024.
| Customer | Revenue (Q3 2024, in thousands) | % of Total Revenue |
|---|---|---|
| Charter Communications | $59,070 | 20% |
| Comcast | $58,688 | 20% |
Operating Income and Expenses
For the third quarter of 2024, CSG reported an operating income of $31.8 million, reflecting an operating margin of 10.8%. This is a slight decrease from an operating income of $32.7 million and an operating margin of 11.4% in the same quarter of 2023.
| Operating Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Income (in thousands) | $31,822 | $32,731 |
| Operating Margin (%) | 10.8% | 11.4% |
Expenses Breakdown
The total operating expenses for Q3 2024 were $263.3 million, a 3.6% increase from $254.1 million in Q3 2023. This rise in expenses is attributed to higher costs associated with SaaS and related solutions.
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Cost of Revenue | $149.5 | $152.7 |
| Research & Development | $41.7 | $35.3 |
| SG&A Expenses | $63.9 | $59.1 |
Cash Flow and Financial Health
As of September 30, 2024, CSG had cash and cash equivalents of $118.4 million, up from $110.4 million at the end of June 2024. The company generated $39.5 million in cash flow from operating activities during Q3 2024.
Future Outlook
CSG's future revenue is expected to be bolstered by ongoing investments in SaaS and related solutions, alongside anticipated growth in customer contracts, particularly with its key clients in the telecommunications sector. The company had an aggregate of approximately $1.3 billion in performance obligations as of September 30, 2024, with over 70% expected to be recognized by the end of 2026.
CSG Systems International, Inc. (CSGS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- CSG Systems International, Inc. (CSGS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CSG Systems International, Inc. (CSGS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CSG Systems International, Inc. (CSGS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.