Earnings call transcript Q4 2022

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Operator

Good morning. My name is Devon, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q4 2022 CSG Systems International Inc. Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After for [Operator you patience. Instructions] Thank your

Relations, Rea, Mr. the Investor of Head John conference. you begin may

John Rea

Like our which slides. can Thank for found locate on be thanks these and Relations be take from last section a Investor us. to of working deck, you, will Please quarter, slide to a the we website. operator, joining everyone moment

financial forward-looking projected statements. to, Today's results, These to but and acquired number discussion order achieve manage goals. will meet limited our contain our businesses and are through services to to statements ability their of regarding needs our financial and a our not ability clients' strategic, and expected integrate in include, our successfully products, performance, operating

reflect they risks judgment, risks these differ are cause actual current best uncertainties and results our to materially. our to could that subject While

that Please release statements this of statements as of opinions our date or in to note or the obligation we these of events. these future forward-looking forward-looking no new revision to revise and only call, light reflect undertake any publicly

noted recently factors XX-Q, are to press can section Relations all as more in website. today's call, our found this our and risk addition In factors comprehensive discussion be as well Investor the release filed in a XX-K most of during available which of our

in reviewed and financial provide to when our not decision accordance measures, team our with in greater measures, transparency that conjunction GAAP. GAAP prepared will that operational used we the is financial believe these certain financial by with making. Also, non-GAAP information discuss with management investors We information financial in our

X-K. website, we on use to of more and earnings will to on be you For refer furnished our also non-GAAP Form SEC today's reconciliation the regarding non-GAAP financial release our measures, tables which information

the Financial Tran, are Brian With and on me Officer. Chief Executive Chief Officer; today Shepherd, phone Hai

that, now to Brian. I'd over turn to call With like the

Brian Shepherd

started get joining the on appreciate we call Thanks, today as everyone. you We Slide John. Hi, X.

business macroeconomic delivered CSG choppy year-over-year showcased in especially growth, backdrop, headwinds strengths top our revenue a in customers model. customer in revenue customer factoring a two two from We as renewals flat environment a top result, CSG's XXXX. XXXX been has the the revenue X.X% when fantastic signed that discount the of With late renewal, recurring down our and Historically, let we to year three coming long-term renewals. of following a from three alone

which on we After led inflationary Team our proved with QX our we CSG QX. action profitability run resilient some also agile in took improvement continue facing timely margin plan the and QX, both in pressures business. and to good that manner will cost to

a adjusted result, margin finished from XX.X% of HX we operating with in XXXX XXXX. up XX.X%, As

a we of result and EPS, increase. foreign X.X% $X.XX of year-over-year increased currency a this share delivered as addition, movements profitability, In repurchases, increased favorable non-GAAP

we XXXX. said to many have times, As accomplished we growing the that in aim what have top-line to bottom-line is or medium fast over the faster exactly and we long our than run, as

industry-leading our SaaS At success and impressive exciting demand CSG's products revenue market by of fueled the growth ongoing end our for day, results. sales is the

revenue bode new sales value win QX growth annual grew year-over-year full in bookings CSG wins a wide variety double-digit growth and XXXX. for both customers verticals. well XXXX. big CSG's Team faster into continue year to We of wow contract sales These in strong industry a and continued

remaining a expecting but by midpoint we billion X.X%. momentum that revenue this X%, will measured a growth strong margin our above are X% see we represents Further, we into guidance I business profitability, details growth of range on differently, new our of revenue continuing Put XXXX our XXXX range XX%. the XX.X% should of to percentage, long-term year. guidance year. guidance, the into prove organic foresee midpoint more Our to between go approximately the with organic our as of at $X.XX this year-over-year strong adjusted $X.XX billion operating and revenue

raising And by dividend announce our with also XXXX to tied of X% per this year quarterly a that of tenth to success payout We're $X.XX and be are announce we share. are outlook, payout. our consecutive our proud XXXX pleased to dividend will increasing we

company's the taking are their history. of we rich of success a delivering you, CSG Team CSG, Thank our in At customers CSGers for globe to for innovation, fantastic on basis. XXXX CSG. all the heights heart and and for are Because is over what dedication unseen doing daily our results our XX-year

our all around people, in grow wow our world. to faster customer We and continue to will the products, and our brands investing leading

this, we every and and years dollar will is we expand will return more accelerate also profitable our do leverage on a to enable come. combination This higher CSG disciplined As revenue operating invest. to we growth what the demand in our

During the sizable leading Charter on QX, UK's a Globally, Asia new successfully stories. CSG and XXXX Pacific moments. retirement engagement in and extension customer Life, won Standard November contract relationship these provider connectivity first a billing on our we had competitor's UK several deals more long-term customer substantially we our with few migrated wins all exciting we with landed I'll system. subscribers expanded we our front, a and large Africa. off largest with Xponent And the color global customer By business. the provide and had and wins telecom West in won success providers in we renewal year-end, savings

aspires our in that I reiterate shareholder Turning long-term by to this to by progress. range, striving deliver X% to to our strategic the with want or inorganic will operating of and to value CSG range accretive combined We leverage Slide to top disciplined consistently operating objectives our and in growing and and above year-end add our billion XXXX. X% highly midpoint at help be CSG revenue to bottom-line the $X.X allow followers of more create growth. revenue growth strategic expand aim scale to four X, organic story track

choice to competitors. technology for with strive provider value-adding by providing We number communication providers service business most SaaS to easier being and the by be global the platforms than of one do our

big, revenue with more diversify healthcare we as faster and more expand partner more. verticals in And plan channel success technology, even services, financial industry finally, and to government, direct sales growth retail, in we

Moving to Slide X.

great resulting in billion see was that objectives. all during growth, delivering against $X.XX the can On XXXX revenue year a XXXX, of reported growth. four You strategic year-over-year full revenue year in X.X% we

business Slide safe uncertainty. our of X, believe right-hand us CSG's and macroeconomic attractive high revenue the model On healthy we recurring balance midst strong SaaS sheet the a make side in of harbor that

gain than $X.X which and greater billion that by the we XXXX, $XXX in aspire annual CSG revenue, scale in compete By profitable to where add in implies over markets revenue will XXXX. recurring we generate million

expand CSG's with did leverage strong to the year. pressure faced in to our non-GAAP Over and even of use growth meets we aspire we exactly long medium XXXX the deliver as balance revenue operating exceeds to growth EPS the we the sheet term, or in that half margin first

key On value not be I for adding team. continually and of reinforce shareholder them Directors Board is revenue, empires CSG Team on growing a the point, the nor creating principle last laser-focused CSG and can assured profitable will management building that calories. Investors

range strategic return high on wide value. a invested create more a to capital we moves We will disciplined maintain of mindset explore as and

And success choice goal Turning be to both on following continued customers for executing technology that well broadband to two X. providers against had we North of globally. this QX in service the strategic largest We cable the success X% long-term provider global number and grew communication our American our that Slide good in late despite priority. to in our CSPs with one combined in CSG North are proved see discount approximate XXXX. American at our It's renewal Charter great revenue headwinds year-over-year XXXX XXXX

subscribers to complete successfully as to in pool system the of migrations platform we of a Charter from competitor's billing are November. Charter, our With migrated customers another respect largely

six a closed in new cable streamline the providers during to And States largest operations. the quarter, their with of and them one United help modernize the deal we

management our portfolio. deploying as of well customer components we tools certain Specifically, field are service engagement as our

market. more the And we telecom also won global business in

collections, UK to management, into connectivity single connectivity their new transform enable significantly will time catalog the provider During solution. reduce market QX, to our solution their digitally with competitiveness CRM, CSG-hosted BSS UK a and will market. their in billing The relationship and The stack. a consolidating stack payments we managed expanded and them increase CSG by simplify architecture product leading to

six We also digitize operator to signed leading telecommunications with Pacific a revenue the monetization in new efforts. deal a digital Pacific Asia customer with nations approximately million subscribers. Island operations in has region and This new management X the

BSS platform. that provide enhance resilience bring this were help gain to customer into business their to services will we and insights Specifically, fully market provide new a through supported able improved quickly, customer base to solutions better satisfaction customer

Africa And to converged improve that significant and with an new to finally, more deal service Malitel, its we leading to to Malitel market are won CSG Africa. operator Mali, pleased with West and modern-tooled application. provide in we the time has announce easier-to-use offerings a selected Moov

new partner and has XX% digitize X. in in X% customer of for and higher our to CSG from help changer verticals, revenue game we exciting continues engagement Turning CSG to industry brands growth customers. to Slide a XXXX XXXX, Since verticals their integrated revenue big Being for from a where modernize be them industry and CSG for total grown of XXXX. choice payments

and brings over that leads better XXX mean insights CSG and or and points, customer return Last a in across sciences. loyalty XX turbocharge results powerful reports this for of and journey launch to service engagement quantifiably unforgettable turning and data customer Xponent less, business fall, connectors, brand's will Low What conversion, life communication with customer verticals? services, SaaS launched providers, brands digital days which pre-packaged wide for we leading outcomes faster templates, rapid investment. This Ignite, into on healthcare does channels. improved range the retail, entry financial platform experience industry

and Team our contextual America, personalized Life, deal It was largest UK's retirement outside of and use all our Xponent more CSG journey dynamic, tool customer see to will Standard savings first Standard to North fantastic channels. customer operate the long-term Life CSG across orchestration business. experiences win

Xponent This we largest US. with of will the customer government states of they enrollees in use notifications, for that Medicaid Also, the and signed their communications digitize contractors. with so one deal the leading can our world's one smart CSG Xponent a simplify

CSG range platform. provides SaaS payments testament to payment revenue and payment a In the wide and is approximately capabilities, active platforms our our payments industry-leading industry gateway need payment serving market, XX,XXX ACH, award-winning who recurring ISV Forte partners a processing of growth credit, integrated merchants to verticals.

As signing partners in processing, in like management. scale ISV fast-growing continue we to ACH industry property leader verticals by add a

business growth in revenue we've organic beyond. strong in sales an Looking double-digit pipeline that ahead, XXXX our built we payments exciting will and continue believe

a of and expected X.X% growth. Put year. year-over-year range the with an by Before closing X.X% provide few we organic anticipated fiscal CSG simply, translates some to has guidance Hai, added expect me built color into at our X.X%, as growth year-over-year long-term I let acquisitions the XXX% acceleration turn meaningful growth rate. growth our it on over growth midpoint X% a $X.XX our we XXXX range revenue into billion. growth X% revenue of XXXX, to any new is range the This revenue the $X.XX or to thoughts. to range high-level organic evidenced with to billion above In being do revenue revenue midpoint XXXX revenue to year equating in heading of This strong

provide XX.X% operating to performance with We our of details range non-GAAP on more good all guidance. adjusted expect will in margin XX%. of Hai XXXX XXXX a

wrap you see our can on excited outlook. why I Team CSG by X, To is Slide hope up

our tomorrow's expect We business momentum continue to that meaningful our building long-term elevating is into turn fully growth results. will business transformation. see same breakthrough and today's We we things do every analyze when fuel you hope challenges the continued our aspect we we of CSG and business.

and attracting, in industry. most the talent diverse developing and We best retaining are the

healthcare, transform financial We be are the retail industries government CSPs, serve, helping global or whether that we services, customers.

sales market to more offer. what CSG Our wants very has of win rate the that proves strong

challenging in just intensity underperforms margin kick into then we part growth-oriented And operating our XXXX, high half any see even gear and exciting into expectations, of XX.X% adjusted we like disappointing our as into turned we growth lofty an built you XXXX. heading did momentum full-year result mid-year faster business XX.X% a when our solid revenue and first CSG's of operating

guidance targets. Hai With detail QX, results XXXX will to full on that, provide it over business more XXXX turn year I and to

Hai Tran

Thanks, Brian.

Let's walk with And conclusions. results. I'll through it our XXXX then, key up financial some wrap

Starting We revenue, on Slide $X.XX year-over-year of XX. X.X% which generated growth. billion represents

of our two This of in continued For X% attributed growth largest face to of our the in the three the was organic discount solution, year, X% growth. majority the as growth increase increase headwinds was mainly for customers. revenue to of to the was revenue management the attributed

non-GAAP XX.X% as non-GAAP the we to The operating XXXX or QX and initiatives income prior $XXX margin in XX.X%, operating to million in the can along operating of improvement in $XXX Our compared percentage attributed and the year. income operating non-GAAP income operating adjusted margin was beginning margin revenue increase with non-GAAP higher million or of timely be QX. mainly adjusted took

seen the margin space currencies. strengthening have decision our in continued dollar footprint, of and we our a interest most office of Specifically, from American streamlining and rationalization the business, to a controlling hiring benefits global Latin headcount our dissolve to practices, of the US our

transaction XX.X% as excluding EBITDA non-GAAP our or million $XXX in adjusted year. $XXX revenue, on, the for Moving or of to compared million XXXX, prior was fees, XX.X%

as EPS compared due year. in The and non-GAAP EPS movements debt the non-GAAP a in foreign nature XXXX. in share increase repurchase interest $X.XX, our as XX to Favorable increase activity over expense income in $X.XX the rates, in is increasing higher our point due rate and X.X% prior is mainly Lastly, XXXX rate offset year-over-year currency time. primarily this months, interest in increase higher floating was operating by at to the tax to last

the to shareholder cash returns. generation, our through Turning and XX, sheet, I'll balance Slide go flow

XXXX XXXX. non-GAAP to Our in compared million $XXX $XX free of as we of in cash operations operations generated XXXX flow million free flow from was prior million cash to million in cash $XX as from year. Further, flow flow of compared had the $XXX cash

are Jobs our the XXXX The of from the lower which from higher working the cash year; XXXX. which flow was the obligation deals the employee main previous decrease in Section Act are resulting tax XXXX accrual negative unfavorable beginning which annual XXX free in Tax include: and drivers amortization of year-over-year changes in of of impact the and than spending significantly primarily bonuses, primarily timing-related, of with capital, primary Cuts R&D

flow previously the previously this, result to forward. repealed, we now we generation. the five-year legislation repealed. anticipated the be amount to tax of a going higher not tax But to investment As we We because cash would XXXX. R&D this in legislation get anticipate free cash a change our had related expected be not will Over will believe taxes deduction neutral this period, benefit our of

as initiated higher global increase. our negative locations, signed experienced recently operating profit from to long-term in mix that in our our taxation improvement tax continued our impact and to hires. result elongated our new caused that of from continue Further, wins of competitors. to streamlining we restructuring increased enhanced reductions charges, QX telecom The gain footprint, in we profitable margin market of we revenue included office a our headcount regarding cash which space large couple rate cycle new related Slightly scrutiny plan that share some good logo marginally of global cash will conversion

was XXXX. generated million $XXX before working million changes to operations XXXX compared Cash capital in in in $XXX flow from

XXXX aforementioned we slightly result capital free of absent Section slight before would Importantly, the million than changes we was on And during million. QX year-over-year in basis. last XXX, on cash in from call, a shown have flow in from as XXXX growth XXXX impact $XX our better $XX communicated flow cash working our earnings our operations of

and at a short-term net Moving investments. along on, $XXX times. December of results we leverage our quarter outstanding debt $XXX and million debt million the ratio with That, in X.X XXXX, fourth XX, with our ended of net sits at debt, cash

million slide, XXXX. during the bottom the to $XX we right in dividends Moving declared of

common of to $XXX total, our returned addition, we repurchased million In shareholders under stock program. we repurchase stock million XXXX. our in In $XX

layout Turning the page, me guidance. let top-line. the our XXXX Starting with

$X.XX We $XX expect billion to fees -- from transaction $XX revenue range to million range to to range our billion from and million. $X.XX

we we relatively QX. which be timing anticipate currently be to opportunities in and the a equal. first of due anticipate split the moved to to few the second out Further, year and strongest of QX are We forecasting half close to XXXX that revenue of QX revenue our

Similar range we our Further, our to an in low margin. XX.X% operating trend to impact. year within XX%. strongest to as be we increases on of our range our adjusted above, quarter merit to terms QX also percentage adjusted well expect XXXX, begin non-GAAP XX% QX we annual with Consistent also operating being margin expect this to target revenue XX.X%, the the have between of non-GAAP of metric to the anticipate point our long-term

below XXXX non-GAAP result share to and approximately is borrowing million tax rate, our range anticipate non-GAAP rates. our a On incurred the of XXXX cost performance the EPS interest of full-year a for versus metric, midpoint of between due higher The rate to $X.XX $X.XX the a we shares of to in higher range we XX.X% of effective increase on tax non-GAAP of EPS projected XX year. in next the based primarily our of the count as XXXX, our impact $X.XX, in debt what and

As structure, to predominantly ways floating a but efficiency. our continue maximize rate a balance have currently capital reminder, explore sheet we to potential

finally, to $XX to million. adjusted is non-GAAP cash with on million. to we $XX expect come $XXX of between million And flow to between to in range $XXX range a capital $XX free be million EBITDA between expenditures Moving expected million expected million $XXX to

to environment managing relentlessly are a our Innovation two We learning means discipline devoted disciplined forward, current with must in remain approach business. prioritize inflationary a to allocation continuous of adherence Going our be cornerstones and run the we of and investment resources. every the to we we challenging how make capital. framework risk-reward

a remain value-adding of revenue. robust expected visibility base is closing, strong disciplined XXXX We a well-positioned diversifying which into growth, include revenue to accelerating committed and may sales our our high-quality acquisitions. integrating sales customer business momentum, closing and pipeline, with our bookings In and XX%-plus

of margin we'll in distribution, we stewards this of XXXX, We continue approach, and our Additionally, are initiatives to improvement will combined believe this results capital our with shareholders pleased the very uncertain capital, consistent especially careful serve our environment. operating with be our well. in

will question-and-answer over facilitate With that, the the to operator to turn session. I it

Operator

first [Operator Sidoti. Greg question comes with from Burns Instructions] Our

Greg Burns

Good afternoon.

Brian Shepherd

Hi, Greg.

Greg Burns

Just tax next a what's year? good off, to rate for start

Hai Tran

we the XX.X%. -- guided what to think is I roughly

Greg Burns

perfect. Okay,

the when are acceleration. at we And holding back then, for won't still solid leverage? growth? areas operating inflationary margin year? expand just Or growth external it But operating environment? Like guide, or look certain the aren't we see obviously, you spending in bit Is why what's next -- kind Okay. the of why going little to a revenue

Hai Tran

on Yes, pressures head. in feel I inflationary going be performance XXXX. you of of [indiscernible] think I the And think the that conservative, road actually, how There terms for the XXXX. expectations are middle costs we'll our nail hit still we'll into fairly those of

Brian Shepherd

Hope doing we on only and side. a Greg. is is, the hey, The laser-focused and on the well. strong year first profitability I top-line think year. saw QX a having I last would team This -- you're add QX growth that weaker to of thing half

from we but strong see of start some progress chain a and see year the still others, So, how wage, we to those and there. have pressures then around want we to supply

Greg Burns

you generating that world as America? your your from American I are the as be And of for look you how revenue North the Okay. in don't in win And of And those the if those rest big broader what's then, opportunities UK, like the pipeline? North Xponent this customer stream? the what's the engagement or -- pipeline much services? solutions global information, you revenue how Can gave but know Xponent announced

Brian Shepherd

It's Greg. a question, great

industry is, customer, level. to excites A, What being that's enterprise the terms that. journey line these of of for the a personalized of whether an value in bring us this thanks about verticals consumer much experiences all product individual can just we applicability around So, so an or

large business And last of individual range comes a use of for deploy we be or actually big we tens quarter, lines announced hundreds the that the case quarter, in of other But other low-single and revenue of we add retailers that U.S. can digit previous the get. could vertical. the other can revenue one have that. -- side lot into also could of that see a millions is win of pharmacy in of with we in from go they millions, an value, thousands cross-sell We

gamut SaaS modular and in expand can terms we really So, proved. it it of really does well and have because as this size, run solution, land we the

it number. if customer we're need point that's revenue lower So, much that market. a could kind price get seeing speeds the in sales, and what has bigger a larger a across of could enterprise, entire also their We annual with in the be

we to in market, American we resources we Specifically headroom in the partner to on big a in be All prove see this your to but we huge wanted We North North and both around huge country, up industry channel than efficient of has growth. opportunity our with direct revenue out have world, effective of as our expectation. but almost North question bigger every in we'll drive think we And the around that have has America. sales, this applicability every and scale could have to geography, globally, in sales tons think terms America business. or be vertical. Obviously,

Greg Burns

by obviously, then, 'XX, some billion target to Great. the acquisitions require that's to get going lastly, $X.X And there.

for? acquisitions? what's So, market right the broader are for technology like looking maybe now? it Is what some looking scale or And acquisitions you

Brian Shepherd

at We're earn it's the to grow mean, drives That's our upper I your really with talking combination growth. this that the first on expansion, that level operating Yes. good and margin perform to smart acquisitions. then, hard organic we've pushing to just about. question, leverage and layering of operating been what right

a acquisition, the highly of choice think winning to have one provider which accretiveness number in terms strategic it's favor we turning same telecom in do quite sheet, the be stay of deal, strong big can balance market selective is in from we price strategic and the for and as and do, the with focus; the of paying look our an globally. So, means deals fit, technology what but financial we much disciplined our we really pretty the we with don't right

bring So, opportunities we're our rounding did -- in that again We our customers. couple more launch going American our global or bring out like turbo CX. to We're all quarters we North to acquired digital value can our to look Xponent world. when then look around portfolio broadband CSG for at we cable scale and a of that. charge announced did we the we after Kitewheel, brands value and It telecom really the

us see financial something on in really is profile. deals. risk could fit, do You the pricing payment potential is return space. But the we strategic these where some read And right like it coming fit, of

did As discipline good be or didn't wanted and a the because do right but all you year deal we that before, last it know, opportunity, stay We year, price. could we and paying the we disciplined. it's to think four a around three

Greg Burns

right. All Perfect. Thank you.

Brian Shepherd

Thanks, Greg.

Operator

next [Operator William One Nolan moment. comes Instructions] Our Blair. question with from Maggie

Maggie Nolan

Congrats growth. you. the thank Hi, on

the that? in goals expecting you telecom, around growth Are or How those expansion. in you verticals? global and you some of other about on heavier thinking to global cable question Another weight be are for equal

Brian Shepherd

would that to hope back, and are, I in you we hit. I that terms then, announce I I I in doing good of also one first announced APAC, a one Africa, mean really, this and world; Hi, UK. telecom in strong the wins the And would the deal that's, the say continue say, we in had three moved just in into Maggie. in deals of different quarter global would we regions QX. foremost, global telecom, one Glad well. near-term, really the part where hear early we in to you're of

to telecom think drive going continue just in the space. growth nice So, to we that's

about geographies, to was talked the digital we win question, it's We to opportunities. direct in like a lot lot rolling got verticals. and and get (ph), brand The the out on build around secondary CX, can to as bit be of approach. Greg's It those it'll heavily and we UK efficient of we pull-through sales ball proven the also focused think time partners that. with And is of leverage take get think see a little other partnerships. the Life think reason those [rolodex] we channel a a Standard build answer different we're to their And channel both recognition the the in as market though, on marketing we great their in

So, that'll the probably we focus, say, we what that, in will I think to with take EMEA out build their start. from to like initially market come time would but

Maggie Nolan

Got it. on the in Thank you. about impact detail thinking some how the on for been With give the recap, And Charter of can then, now. migration the and of time wrapped, talking about kind fully year-over-year the this maybe that you us we've that XXXX, impact then comparisons? you're

Brian Shepherd

a and hit of the I'll provide let Yes, I'll just the then Hai first part few financials.

do a that at the need mean just Charter at million value of lot strong So, and That customer way business in the good of in brought that I just biggest colleagues to and our a a convert XX a fantastic by subscribers effort team fit to also with timeframe. our work Charter.

of on of on after colleagues worked off That converting subscribers with Amdocs million heels So, grateful side our the to us the came Comcast. on XX that. at that Charter

from our now platforms and all all triple run standpoint, at play a the have business So, both the we Charter. Comcast subscribers and

you Hai, financial that? to want of provide perspectives the on some

Hai Tran

of XX%-plus is we that gives have in guidance Yes. our have and to of to think year one in real other result, we impact we highlighted. it towards tailwinds right? those full migrations. I visibility addition higher visibility it So, good growth ability long-term a generate But our as we business benefit that the guidance that the us I the contributes our is mean, the into strong to that of and benefited range over of terms end good organic confidence from

Maggie Nolan

for Thank helpful. That's all That's you. me.

Brian Shepherd

Maggie. Thanks,

Operator

comes Our with from question Horan next Timothy Oppenheimer.

Timothy Horan

like of going upgrades technology -- lot Do and United looks Thanks, maybe here kind with thing? a wireline you and the around they an this fit The during is through it's this think Or of a and some world, converging And you process? network aggressive do as more. cable the you the upgrades? -- gain do do how you guys. industry kind fairly these wireless into in think whole States, just opportunity market share it's

Brian Shepherd

at the you're for doing at Comcast. over slightly to a served of investment the period broadband longer we're see adds X% on question, XXX,XXX for the to decades, to expand love and love year time. homes it past a having look see back it hearing going added We'd quarter-to-quarter. players the X% infrastructure at quarter. great. We the Obviously, this Hope to big Tim. three Thanks getting Charter We these changes tend in some to both Charter

Comcast, added out think they X,XXX. about normalize I the you hurricane, if

But is going and be this. disruption technology around yes, there evolution to

And stay that's why expanding some why value, them critical don't do reasons of just at of and have we're to we business can then more with give focused we to look be to providers. easier try the what how with, parts mission they're so the of portfolio doing, some they bring other those on might

America of to customers, some to fixed wireless the and We'd wins and in we the more and take America. revenue that's of do competitor going the some on us local. some in focus right it's broadband North thing time if from The of adds North two see to in to U.S., are actually those some telecom their when loss want announce big that wins terms have not see the could earn XX% over comes outside other market them success continue in to our on are continue we having to and a we net the on, of of in love customers

to but continue of think as to that going more try in where it's Because I know you taken might that equation. may market. a going serve play, different to quite really We of longer-term and bring and approaches technology report providers different evolve, around the sides investment you on that there's is that Obviously, convergence. And different around both is to segments large being could R&D be they our service by a how win bit,

Timothy Horan

you about bit general. in suite of products? how for your been integrate going kind bit you Can has your And you leverage ChatGPT And the AI news here a talk you and into quite ChatGPT forward? do sure. little and can That's product OpenAI think lately, can in AI with a

Brian Shepherd

last our way. solutions mountains Yes, can right we experiences huge couple data and and and up cost-effective we work around solutions and processing areas AI large it's language have to the and natural do personalized that can experience for actually CX brands of to of a those where that. or leg the these three digital individual language help see processing we several years, have help biggest the with then our would and large improved we a drive the in midsize a AI we lot two say, where get some customers, natural of now, more partners with I and innovative Around more they giving for take journeys targeted, just do

detect combined the what on And also but both activity some around interconnect on where our I And just network use might think aspect. detection with or to telecom we're in the of started. kind we others side, an getting XG, technology roaming fraudulent we of be fraud things see it

I of bit think are to what's on it's today, and quarters looked to integrations quite change fascinating what coming active -- be they're cases evolve that, it based and I in any fun kind a some hard it's experiment. of likely almost We coming have of some out. fathom the coming to but at. don't with out is that's that's use the that -- going to -- watch. and we've started to ChatGPT, We mean, doing and live it's

Timothy Horan

there's going losers, of you? a positive is and opportunity I be ChatGPT, this do winners but you and have you a to lot obviously, for to think execute, guess, Well,

Brian Shepherd

enterprise. in last -- the AI it five just And easier could seven that pick brands won't to them for did over of lot or a over predict efficiency won't years. I we think consumer how choice AI for a today. customers, of is automation how I or probably cloud it's But and and channels general, get to that evolved winner make of of time like driving six, I in do terms likely that, give in cornerstone work change their the terms

language doesn't yet. both in displacement some that and It ChatGPT with direction are natural processors create some hard there. threaten imagine their haven't moved going won't. that Again, and and existing it's I think So, mean isn't AI to the opportunities out potentially of challenge we that we to

So, core But digital AI customer cost-effective digital award-winning experience a as analyzing we're to still and doing. essential is our mind. in

Timothy Horan

Well put. your interest expense guidance? then interest year lastly, what And EPS rate or you are with assuming next

Hai Tran

LIBOR. -- north gone LIBOR It's generally based in our mid of rate X.X% right? is think months. XX floating X% about has up on about debt you If

mid-X%. now, we're projecting right So,

Timothy Horan

you. Thank

Brian Shepherd

Thanks, Tim.

Operator

Matthew Our last with question from Benchmark. comes Harrigan

Matthew Harrigan

you. I one two have and Thank follow-up. questions

much than the current But environment? side, is economic allusion payment that in that touch on the didn't M&A discussion. particularly in getting on the business affected You other how ACH

you Xponent really much corporate sure is (ph), ROI. the just side looking?" on the range off of a and you [saying] mean, very pretty getting you broad how economy? your marketing pretty coherent look, Ignite then, have from there. high Or are that, you sorts do on what like you've clients selling resistance strategy And And ROIs I'm all "I this are got a feel

Brian Shepherd

Yes. Matt. one. doing Hope first I'll well. No, take the you're thanks,

the payment on XXXX. in state transaction we meaningful strong growth kind of saw couple growth mid-stages charging of On charges expect of we governments return we hit we of in including good fees some credit going stopped back which kind ago even about double-digit grew others. where took XX% ACH and taxes we COVID, a And saw as that side, kind some to early- card And that when talked we property the of double our the of the X% of get years we volume, of credit down, digit is the flat. to stayed as business. and lost for We recurring turned about through a the

signals we're and demand the board the on side. the like We seeing our ACH credit both across payments business, the in on

if now and just to back think And to growth, part going it's of there's you kind what's XXXX with business. the excited front to We're margin we in in expansion so, business. windshield that storm, will, that And XXXX. that back of the weathered -- around pretty and the we that come in scale

of around second was more On sure... the make side -- question let part your -- second the me

Matthew Harrigan

your ROI them or that, Xponent on see can And more Ignite? to efficient? be customers economy bit pushing little of think is hindering you actually sort the is a Just it

Brian Shepherd

I a a At could this stage, with sure, we want to guess, ROI. change. it it being hard level I make board But stage, at see this decision

So, in the it in Usually, is now payback payback where can really within And so deployed in than immediate forms. what payback. reason comes terms we're three get to traction XX the in There XX be days. much can XX less right there's market and there's of the is. an seeing a months it

reduce you channel often And way, a from to take itself. steps efficient a to if channel so costs. better actually journey reduction orchestrating moving more cost the by out for One, is digital pay a physical can going in it's can that a is

of by we Two, what billion that reduce the we're appointments, promotion churn in notifications alone over or again, that's during and these revenue large around up-sell customers for or healthcare of talk cable can a with the paying customer, off help another and about missed there's if a of lost and self. example them we promotion-ending $XXX in dollars appointment some driving period some a cross-sell, seeing where areas on industry the like roll telecom

the and change, ease we take and for deals. hard respond, just we faster, what just And push in more, make in world. what let's new granted. business rolling the get. a fantastic We actually we don't love that in the know of existing wins and then, digital new sell got sell market doing cross-sell loyalty and keep And take we to up-sell benefit just that we're it we're advantage but that the comes also retention it seeing, and logo of we third, improved so can seeing momentum sure from is an That's

Matthew Harrigan

if likely wherever Europe? And range, bottom selling Or the wide, macro function affected toward or and think isn't guidance which do the of be opportunities and likely end more the be more U.S. to tip to in of do think the upper innovation? more that you having it's it's you a you both revenue really end the by goes all

Brian Shepherd

give even on that year it. then high I'll I'll and level is and a in I is level, we're a Hai seeing organic are big growth driving let mean, add we and market which this of bigger demand, hot growth little he seeing and a might think -- have I XXXX. insights last

of both where North global is in business love digital we and market in So, American in payments. in the terms the telecom in our CX demand signals

trying we some spending. seen But every mean is company I shave have discretionary -- to

core the So, we throughout over felt quarters. or six seven that last actually the

So, of is gives not through it -- is We it's will lot pressure grew optimism not like that the in us there. cost terms which it, a of upside.

will squeeze to The They answer yes. try continue is to continue to brands Will that. have They do costs? been.

win growth of end definitely upper is the be digit at and and having. spending conversions discretionary that end, as to our some do win what strong that deployments even is to the upper of the strong have So, we the at that to just will successful sales continue offset double us solutions we've to rate, that got grow continue help

at it's need see again, I think market. would a things still lot happen. of lower a be to tough the But to you end,

we give to that start why want that And do. we that's we So really QX that strong in and range see QX.

and But, color Hai, from comments you. other

Hai Tran

Brian I meaningful only solutions they're mean, driving as would is you question them of for to highlighting ROI, do our that around side, delaying The of right? I highlighted consistent value, need I financial what I urgency echo the add with thing good Because is some we really think what cost a the opportunity really in driving Yes, decision, job particularly about the said. terms might of value the some making in our for customers. customers CX do

we'll able the to we be that light even and plays that extent to it timing current and economic for the the affect can bring to urgency, environment. into so, And drive them actually

Matthew Harrigan

Thanks, Hai. Brian. Thanks,

Hai Tran

Thank you.

Brian Shepherd

Matt. much, so Thanks

Operator

-- back no the CEO, are this to I'd call over turn time. further There questions at Brian now Shepherd. over

Brian Shepherd

Now, thanks We're everyone CSG the the on joining. put of Team XXXX the proud for board.

to to laser-focused XXXX to you We're be doing forward bigger even that we talking next on that. Look need quarter. going an have to deliver. We

Operator

you today's concludes That attending. Thank presentation. for

now may disconnect. You

CSG Systems International (CSGS) 1 Feb 232022 Q4 Earnings call transcript