CSG Systems ( (CSGS) ) has released its Q4 earnings. Here is a breakdown of the information CSG Systems presented to its investors.
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CSG Systems International, Inc. is a company that specializes in customer experience, billing, and payments solutions, primarily within the SaaS sector, helping businesses to optimize their service delivery and revenue management. In its latest earnings report, CSG Systems announced record quarterly revenue for the fourth quarter of 2024, reaching $317 million, a 7% year-over-year increase. The company also achieved or exceeded its profitability and cash flow guidance targets for the year, reflecting strong financial performance.
Key financial highlights include a total revenue of $1.20 billion for the year 2024, GAAP operating income of $131.3 million, and a non-GAAP EPS of $4.72, demonstrating robust growth in both revenue and earnings compared to the previous year. The company also reported significant gains in operating margins and cash flows, with non-GAAP adjusted free cash flow rising by 9% year-over-year. Additionally, CSG continued to reward its shareholders by increasing its dividend payout by 7% for 2025 and repurchasing shares worth $58 million throughout 2024.
The company’s strategic achievements included a contract expansion with Comcast and multiple wins in the Ascendon cloud space, contributing to its revenue diversification, with 30% now coming from high-growth industry verticals. This strategic focus is set to continue, as indicated by the 2025 financial guidance, which projects a revenue range of $1.21 to $1.25 billion and non-GAAP operating margins between 18.1% and 18.5%.
Looking ahead, CSG Systems anticipates continued growth and value creation for shareholders, with expectations of increased revenue and strong operational performance in 2025, supported by a disciplined approach to business agility and operational efficiency.
