Earnings call transcript Q2 2023

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Operator

Good afternoon, ladies and gentlemen. Welcome to the CSG Systems Q2 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. And please be advised that this call is being recorded. After the speakers' prepared remarks, there will be a question-and-answer session. Instructions]. [Operator

this Rea, to Head at to things I'd John Mr. of time, now turn like over And Investor Relations.

John Rea

and our are our businesses not successfully we results, limited these discussion performance, statements. projected number from These website. expected regarding our Please operator, through financial Like manage in ability slides. the statements needs and Investor can include, Today's you, their achieve products, strategic thanks meet a to of acquired for but to on forward-looking everyone integrate of Thank our and to our section joining and be to, last found operating quarter, a goals. slide and order moment will will our clients' ability services a financial working take contain Relations be deck, which to us. to locate

best risks these risks could uncertainties that reflect these events. subject materially. opinions are date note in While actual differ obligation any of no and undertake to our our publicly we judgment, and statements or to reflect or Please our current revise to to the cause as they results forward-looking new future of these forward-looking revision of light this statements call, only release that

not factors Also, all which with our of information we section well during as XX-Q, most in the In risk addition our website. in is and to more press in certain of a are as release will noted filed Investor financial factors this our GAAP. found accordance comprehensive discussion call, that today's can be available recently discuss Relations prepared XX-K

decision-making. information conjunction to financial GAAP measures, believe investors measures by in and management our We with team the our with operational financial financial greater our these when reviewed provide non-GAAP in transparency used that

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

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

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

Brian Shepherd

everyone. John. and as in XXXX, posted a XXXX, We call from first XX.X% the results both revenue X.X% double-digit the QX fantastic half. growth and begin for Hi, Slide joining CSG year-over-year of Thanks, We the coming second on appreciate had start in to the with XXX% a first half X. you excellent both organic we quarter revenue growth. growth

best posted Our performance decades. over were nearly have in the first-half two two we quarters results

operating bottom-line first from EPS in non-GAAP to as half to margin first we discipline QX CSG which to so up QX which costs Our per we XX.X% and the higher XXXX. CSG margin operating a X.X% share, and reinforces our it represents XXXX, interest over good $X.XX QX, expanding of in operating had maintain step operating non-GAAP offset non-GAAP XXXX. reported far adjusted also grew leverage EPS Combining delivered the our nice time. in the year-over-year QX half growth, in Team was XX.X%, even much adjusted XX.X% commitment means

half, first our raise pleased we strong our XXXX are guidance. on Based to full-year

year-over-year guidance range guidance revenue our by organic of end the million. top by bottom revenue. new $XX to $X.XXX and means revenue in reflects end from raised now midpoint to a the which growth We The are raising billion, guidance our the of $X.XX million we've billion $X X.X%

details share adjusted XX.XX% revised our to up XXXX percentage full-year range. Hai guidance range momentarily. on XX.X% to non-GAAP will the margin more prior raising operating our all to XX% XX.X%, are from We from

demand faster-growth wins was CSG's will and in share a wow and run customer a the minutes. our the program ongoing I sales several In exciting a big fueled variety sales addition few end XXXX. which good repurchase new end revenue $XXX fantastic customers details new CSG's guidance, market QX to year of of share growth on faster XXXX we're full-year announcing reporting industry-leading through is in our At for day, verticals. products by and raising growth wide million strong in as large SaaS win we industry pipeline performance. will healthy more also

risk I from in we often of half economic year. higher get question whether rates any investors softening and slowdown market given the interest or first demand XXXX later One is in see globally global next the of

CSG in next I for signals X almost preparing globally, see at would we today, that scenarios we be what to customer Based range over rainy X the quarters. we buying share this believe to the consistent quarters of and to customers higher midpoint years. long-term are on see X% most X% continue our continue While with in to as revenue, good all to or demand strive the our possible behavior we can organic grow day range

we're conditions we U.S. than now XXXX, So our the QX as regardless to shout our fantastic for are giant both years. CSG's take outside sustained or posted and in revenue disciplined to employees CSG X,XXX out global like results nearly steps QX economic coming which over live a continues global to single-digit and unfold the to give on growth of keep how of QX and of organic healthy to XX% margin like I work would faster timely growing higher, focus mid continuing also in operating revenue delivering

of not the our clear one Board crystal announced Executive Having XXXX, next our in was CEO Directors majority outside CSG's a of the as team. residing and our When coincidence. to thing QX was employees is to I Leadership U.S.

and CSG more to rich, globally more profitable, a talent into elevate a become needed diverse SaaS more company. diversified For leader, technology us growth relevant more to faster

all innovation the The we publicly results talent CSG XXX global work momentum India how XXXX CSGers is executing on around to in success in one the our being to is India and June. first A this example team seeing of half in fantastic attributable are we're and dedication the for which Companies of top announced in named of globe. Best XXX% the and

continue as size meaningful and We excellent our people, products and we the discipline. our grow scale to our in revenue had with investing while will faster we operating our customers years operating ahead simultaneously expand in margins

Turning the to help I our followers to create shareholder X, story CSG and will that of more our reiterate objectives allow will X progress. value track Slide strategic

As end this to at guidance I is of this shared approximately so range range, That CSG midpoint organic just our X% of X% aspires long-term above growth X.X%. in revised the at to the be XXXX deliver the we're of midpoint the top sitting range. to why pleased see above to consistently revenue revenue striving or

from expand growing combination billion by and as scale top XXXX year by faster to line revenue growth of We a than aimed with line with at and organic leverage revenue operating operating $X.X will end disciplined combined moves. scale bottom growing good This sales or our inorganic growth. come fast

number financial choice do providers, strive for retail, service plan global one diversify like most to technology verticals and providing the finally, And business to and our as healthcare government, SaaS services, communication we competitors. with more platforms revenue be provider more. value growth industry the easier big and by win faster technology being than to we adding of Further, by we even

delivered revenue resulting the in for half Moving of growth. against to we slide in four XXXX. first XX.X% XXXX, first all of strategic our excellent million the half can On we growth, a reported start you see, of objectives year-over-year with revenue X, $XXX

in half first nearly best years. Our XX results

On our investment. side SaaS we make CSG's we added we to where and the markets will and aspire XXXX, right-hand compete X, of us have in sheet, revenue attractive the in XXXX implies profitable that high healthy business XXXX. scale revenue which believe By Slide from gain in $X.X recurring generate $X.X balance recurring model annual strong to over billion revenue, that CSG an billion

aspire or use long-term, our we to operating balance to medium that strong CSG's to revenue and growth deliver the exceeds meets non-GAAP expand Over sheet EPS leverage growth.

CSG reinforce continually and will empty of earning to value not right that key Directors I can a on Investors revenue grow Board faster, laser-focused the calories. profitable point, and is last the shareholder adding this team assured principle team. be CSG revenue management creating for On

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

we strategic American approximately North largest is and to this global to communication against on providers that technology we had see continued in year priority. XXXX. two CSPs for by to service grew success good in successes CSG the QX first executing goal choice are of X, It well with cable proved the of that customers our provider X% And one half year-over-year our great at Turning American revenue broadband globally. number our be Slide both the North

with areas of by from we two good was important system over but we subscribers help This their business billing a charter migration competitor's most objectives. saw solve at of result many months, last coming customers growth largest XX in them business the expansion from other also partially driven as the our

we continue and automate data And to to with changing CSG modernize business to great This resources recently needs. a With services. new more leading the will and and infrastructure performance enable a their respect and better Team we to announced business win ATN mediation logo new with settlement real-time deal communication to products. to telecom workflows settlement wholesale ATN networks market. of wireless mediation align will provider and more digital roaming our International, wins, access react quickly

CSG unified minimizes PLDT solution the of solution. future large integrated the announced to one enables unit. embraces this it as the in Enterprise This environment the Plus, with its an of deal and operator. and the its across of with management serving their market. shortens cloud we this particularly time a choice, its streamline experience, During processes with billing PLDT, PLDT cloud-based quarter, and transform Web cloud-based is for its Services the a segments, fully management new business its transformation, example Amazon empowers to and latest and revenue into partnership us expanding business BSS fantastic wireless Philippines bring is scale customer two-decade revenue customers enterprise cost our largest power wireless that

digital service in CSG's Airtel project With to its experiences to wireless Africa. subscribers revenue completion delivering telecommunications Also drive solution, a to while Airtel unified million weeks streamline BSS digital management customer with processes cost and across prime is Africa. business market provider sustainable almost money minimize loyalty shorten with few and and our XX Africa growth. A time leading announced business $XXX we transformation the countries across ago, of mobile

XXXX X. coming XXXX of accomplishment Slide XXXX, our time. first CSG half to XX% short revenue from of verticals amount in Turning to from of have fantastic revenue diversified relatively industry we exciting Since new A X% a revenue. total our

organic double-digit of them during their continued partner integrated payment cutting-edge customer changers growth And delivered XXXX, big of brands experience game our revenue help first with solutions. verticals customers. for for growth and provide will choice digitize a both CSG customers and half solutions in we good are industry We be where and modernize to higher our and the

During performance the experience nation's organizations. our X,XXX the one healthcare expanded more supporting NRC second business firms, improvement quarter, with than customer we Health, of largest

We execute are digital enabling NRC communication streamlined, to in strategy effective a and scalable manner. multi-channel a

technology expansion leading win QX with nice of firms. was Another world's the one a contract

exciting limit digital We and of transfers example are how of customer SaaS customers call of channel. contact experience deploying These the contacts. excellent big will This costs. number customer operating the the save CSG's AI-powered is in capabilities brands AI-driven and how the number digital of self-service to reduce number center voice our center CX provide CX agent-to-agent solutions an phone repeat platforms, improved help their solutions lower calls,

bundled landed we municipal in is of initiatives. QX, products support a expands use provider of customer footprint engagement is our industry utility various verticals. suite Also experience a finding how the and industry This private good to and our service another cases contract with example multiple customer utilities across deal in for utility

is XXX,XXX revenue to approximately payments recurring solutions partners, platform. wide the processing In payment and verticals. ACH, active revenue SaaS growth continued range market, integrated We a payment and now ISV double-digit merchants gateway our capabilities of industry-leading who provide need our industry award-winning payments payment testament card, credit a to serving

Best of by the payment the set recognized Award in group, hacker showcase. their were we Breed July, Annual API having as strong In best

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

to I basis. before organic X a We off will grew on first is wrap half turning a up year on double over fantastic digits to it revenue Hai. start. Slide year-over-year Fiscal XXXX

fantastic win quarter logos, nicely to in largest two out addition growing revenue new continue our We customers. at in quarter to customer

first in from to coming financial continue over like our to industry with big tech diversify services, revenue half We commitment and to run margins growing verticals with the retail, of range. operating adjusted business demonstrate And business our efficiently government. non-GAAP XX% high our we faster more healthcare, continue XX%

three our to stakeholders clear. So key message our are

biggest of are still CSG's ahead and us. employees, breakthroughs our To days best

as from our collective dreaming keep whatever reality. global demanding we will big dreams We even turn talent do our into it and giant to takes more

customers, our here CSG you. for is To

to while your are our continued solving do than business you for technology-related We and your of competitors dedicated to being with trust thank toughest easier CSG. challenges. in business any We

CSG's but and integrity, of shareholders, and is you've team ourselves what CSG. governance Faster getting improved do good revenue will always we with that diversification operating transformation expect our And To hold growth, Board a to started. leverage to. vertical our accountable exciting and Directors from industry management come recurring will this high just focused execution it

for targets QX over first to I our half turn will and to With it on that, as detail well as guidance Hai our revised results XXXX. more provide

Hai Tran

Brian. you, Thank

and then wrap up conclusions. walk QX results some and I'll Let's our with financial XXXX first-half through

generated million organic. in CSG increase XX.X% all of the accounts we of revenue other attributed solution, was and growth the the management XX, solution first CSG's payment onto primarily year revenue increased Slide strong first growth including represents the conversion services which was volume. of ancillary on customer revenue $XXX of which to of year-over-year Starting half half The continued

half QX our Even revenue last in of we QX revenue QX of call, timing XXXX. And oriented still XXXX of when on to rate of charter than of of the the long-term items, growth mentioned related the our growth been first have a millions range XX at get in of growth higher uplift X% these to was from the of license off converting recognized our over from moving we subscribers deal some earnings As QX XXXX top organic into end both certain we revenue excluding competitor months. the X%. of was

XX.X% half leverage margin to operating non-GAAP and the non-GAAP we The can income faster. to $XX prior operating adjusted income percentage $XX in million attributed compared operating as income XXXX Our and or increases revenue XX.X% in adjusted higher grow non-GAAP mainly be was operating get as or of operating we the year. first million margin improved non-GAAP

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

represents of in non-GAAP EPS due Lastly, our the by as first half $X.XX growth. prior higher year, non-GAAP X.X% increase first was year-over-year the to expense XXXX the the compared quarter, The mainly half to EPS $X.XX income higher offset in and which in headwinds. operating is interest foreign currency

Slide to XX, go I'll through sheet. Turning balance the

and shareholder Our generation cash flow returns.

negative increased favorable capital half $XX The by the and revenue. XXXX first free first of million was XXXX primary of flow half accrued half operations in working in compared million as the changes first $XX a $XX Our employee this year. the to million was first flow Further, compensation driver to flow of performance driven from in had as cash deferred prior million compared of $XX negative we non-GAAP of XXXX. half the cash cash a

XXXX of our to the free to as working second $XX we million continue the cash from benefits to operating and capital flow anticipate range performance strong in year. $XXX full-year anticipate We half

at Moving on, X.Xx ratio million debt second million and That results net along we XX, at EBITDA. $XXX and leverage outstanding in our with XXXX sits ended short-term net $XXX debt debt of quarter adjusted the our cash with of June investment. of

XXX% to As explore ways a floating exposure rate reminder, balance is and optimize continue rate, capital to potential volatility. interest structure to currently our but our we

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

any we But excited a are XXXX, in will yearend that repurchase program. repurchase new of to run program a as share did half million $XXX not comments, mentioned first under the his announce stock Brian through XXXX. repurchase we During

by year-over-year guidance of by top Turning our guidance million. the X.X% now of the end to midpoint revenue. billion in bottom we revenue the organic guidance raised are financial highlights raising we growth reflects which page, the raise making The new from we on I'll are million provide key The means and billion, are: $X.XXX my XXXX $X.XX guidance the revenue one, $X $XX insights to target. end our a

full-year Secondly, up XX.X%, still and tightening to EPS $X.XX margin EPS XX% we results at are range. same also percentage to XX.XX% prior staying $X.XX the in range the our non-GAAP midpoint $X.XX, before. non-GAAP XX.X% operating adjusted raising XXXX the And we to from to which of non-GAAP our were guidance as

make of manage Wrapping and with continuous use prioritize allocation up. in risk the and we CSG stay resources learning how relentlessly reward of every cornerstones will continue investment to we the an capital. of Innovation are the framework key to adherence and a business. disciplined

well positioned high a and quality customer Our is strong business pipeline sales a with base.

also our existing customer on cross heavily base. are sell focused We opportunities within

of revenue value-added from committed customer revenue Today, approximately serve through and take to our or experience payment believe growth, with consistent our digital We disciplined solutions closing either fame acquisitions. our capital will shareholders half us. this top We accelerating XX remain approach, integrating and customers distribution, well. combined our as diversifying which

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

Operator

Mr. our Instructions]. first you, We'll afternoon [Operator Blair. this take of from question Maggie Tran. William Thank Nolan

Maggie Nolan

thank talked offering. results. Hi, payments ask great quarter performance very growth wanted last about strong the the that I a was about and payments potentially on from Congrats you Last accelerating to quarter. you.

you give can us So momentum? on an update the

Brian Shepherd

business. new similar customers, continue a for Thanks joining volume our and the terms well. hope Maggie. growth platform. organic increased double-digit of Hi, to I And doing combination win see more would coming in existing onto Yes. really continuing to it's merchants from you're the same say strong we of from

unit as business continue direct we well. of have Hai execute. just you to of that oversight So kind

to want answer question? additional You color to Maggie's some give

Hai Tran

Yes, terms is a that additional of what And we're with the that, lot energy And and time the we've looking invested the go-to-market collaboration Thanks in thanks our we upon customers results. Brian build within as a are enhancing is Brian pursuing. some playbook and Hi, we I to organization, approach, a kind payments investments that move that focused more for much and little and building joining. side. the in for in terms of color additional it's And go-to-market of then early on effectively as forward, upon think the the the question. positive side yielding terms Yes. target rinse Maggie. repeat of said, of on

Maggie Nolan

then you. growth as your Great, dynamics you And accounts growth two us some XXXX obviously customers. of following some thank what think there's or with Can to in your expansion give be changing going in the for you the XXXX, of some drivers we of about an customer with are think the largest for opportunities idea year? largest

Brian Shepherd

do think both lot about what we a Maggie. to because get day asked that, about environment, way The rainy and we this in others. about scenarios Happy it

customers, First, that our going including do with in anything see can that drives actually be all two, we what drive customers, result, help our revenue improved growth gets faster business their top of them on or to funding. anything for easier

tend and growth can operating help we CSG, we leverage help drive side. and their that drive with revenue so in improved And to critical, experience cases be mission we drive customer some on good

of good big revenue that's we all of That's almost two? That's sustained serve. of just true every across part of true customer kind of our growth what's business. our driving And

the through of see our them kind from And storm in customers. face year-over-year see to wireless kind work broadband homes they proud mean U.S. competition on the some big continuing passed. of in in see weathering their that. We fixed them We X% the QX were top our showing we two, Specifically, two in market. of we I of or decline increased

and our just on better help have help constantly could core them drives And So more faster with to more business passed, relationships the CSG. out having they trying how businesses, grow perform homes or for them enterprise up figure all-around applications. consumer them they the of pick obviously more just we are multi-decade could that work we then their subscribers, to as broadband side how

big to And two we it's them. and we value their like growth we from and a both the combination can additional bring the both see of what

us. obviously, that's focus a So big for

Maggie Nolan

for Great. update. the Thanks

Brian Shepherd

much, Thanks so Maggie.

Operator

Thank you. Northland next We Chokshi Markets. Nehal to now at go Capital

Nehal Chokshi

was. represent for second expectations? my full-year you outperformance results the Yes, in taking saw thank consensus I.e. the sell above guidance revenue you Hi, second own quarter that raise the achieved view side above the And therefore, the questions. in where quarter? your does was merely the

Brian Shepherd

We ourselves, Yes. so potential Nehal. for to against be and be Thanks much overachieved had in nice what us. thought and liked a lot joining shape we really we We what up to the QX. a we QX. was for Hi, going saw expectations had high

of would terms deliver see the at full-year think reflect we that can So say at we on this stage, this tried I what what in we've most likely to outlook point both business, guidance based the the continued reflects and we've what sales the in which the in QX. in strong QX time business, to have QX. see reflects momentum for we in It the and we

of would combination into performance can going kind of the I account think and it So both deliver we what forward. in a strong say QX we takes

with We QX It's focus And now QX into this about minutes now and in that's all for execution really days said, us. we QX two XX for stage. at we're about month is QX. and that one the and celebrated see our

Nehal Chokshi

to operating is X the in - cite operating shifting of of versus context you about bit. expect Great. business? terms Slide talk perhaps a in leverage, the business portions drive portions the business what of And your leverage. growth thinking your cash high growth about that you gears the count little of then driver you Could the

Brian Shepherd

have point. I'll Hai color add I'll Yes, vantage start, of kind his and some from more then

a we leverage operating in see of couple different First, dimensions.

our the what can bring coming growth every better four spend of the customer top-line months do even that acceleration years actually and faster deliver we can a big if value world. faster we bottom. more dollar to we've revenue should walls continually growth investments customers drive First, deliver the on return, and the ongoing will towards several deliver what efficient all both into revenue in we over tried And or redirect do that or a last is around XX inside and do that and put more get

that's Secondly, create we bottom to and operating leverage investments we've means non-GAAP SG&A. have and revenue growth, than grow both in margin the EBITDA whether across operating and a commitment got line, EPS to where faster R&D we we make want which point to about this scale a billion of operating to of we whole talk drive just getting so $X.X lot can third, do And us also and is that across more as drive add we Board. leverage we the kind size helps that

So there is you dimensions both that a organic to side more sure make delivering. strong Hai, on those provide focus across the to we're that? all But inorganic want the on and do color any

Hai Tran

I right, Brian. mean, that's Yes, think I

are going expenses Brian through are of Where mantra to think our going I CSG. something internal the thinking do feel month those spend a time our that spend impact. every in we more going every lens the of than itself, growing commitment as week, revenue, every largest about right? that that the prioritization about resources, also at that's day, growth to is is business a here investments think In slowly make we And to where order the business, on yield we to said. our we impact to yet allocate and lot or those the

we talk think a is something do quite that bit quite bit in So about turn. and about a we that

Nehal Chokshi

you. Okay, thank

Hai Tran

Thanks, Nehal.

Operator

We now Stifel. next go you. Rosenbaum to Thank Shlomo at

Shlomo Rosenbaum

guys starting Is EPS really this seem if Brian, tell EBITDA it very range the for it, what of just be strong you just that questions. revenue due you Hi, is the had is you to and year tightening the for the higher you hit to is last thank quarter? really And expense stride to last interest you was versus it, to and a for expense raising over us that my interest much opposed embedded are here. can taking operationally have what then quarter? versus very quarter

Brian Shepherd

good constantly question. in we appreciate but will XXX% full-year we for look two at though floating for we'd year, year, provide in thanks million growth Shlomo. of north the of even the area, the better is interest on more and that. debt EPS really Hai in joining the the little but the could like drag Yes, I things EPS that's rate with last first One Hai specifics the costs coming half on will we from interest a how a couple $XX provide do higher to the saw is is really over improve. the XXXX. detail,

second the foreign as dollar a And kind also exchange the the one is hit. of U.S. created

So overall take about interest share that per headwinds. expense could combined, we from of we're create that an does we EPS EPS, $X.XX, on seeing some hit between and $X.XX a could Forex

is getting a you $XX we've we've grow I to just got color? on So little profitability, provide more what put then to now. be actually operating shy the interest to out is, of got the approaching obviously do top-line. continue But cost work million what down, We've almost to got want to faster and on strong which Hai think would

Hai Tran

that's I right. No, mean

Specifically, year current expense million. our the expectations interest is for that about is $XX.X

XX earnings of that the release You Page see can on slide.

Shlomo Rosenbaum

historically, talk a I a the free you is business. lot there cash cash back times flow back about Okay. And then seasonality could flow look If weighted of year. of the end the of

it that But seems to move certainly You around. year. saw last

now? you free flow change a to, from let's million more right us of little of million $XX million you tend about to and Sometimes milestones terms to more going Just talk working say, projects? year the that cash clients pay capital? of in year? the have it $XXX bridge give going of like change a half basically in $XX even. the bit Could second specific to half there the Are there Are what's to certain second like, of the in what's

Brian Shepherd

those the Telco midst the announced global Yes, and a last robust of. hit do a to provide in on couple of opportunities are I garner projects off projects interim, for things. as business are is tailwind And large cash are nail in and couple that will quarters, there we've are many those as projects getting milestones year. It of years But that begin to to our this the to the to tied we're flow, of some healthy very in the second half fantastic that think Shlomo, the have, long-term you milestones those ground, come. the us we those the hit customers We strategic in head. for

top and some associated timing some around And then with on capital. that, just CapEx working of timing

free see better weighting half year this cash our back see was in cash so much our terms And it year, of a but obviously, is we last similar we on dynamic position flows. than a

ShlomoRosenbaum

Okay, great. Thank you.

Brian Shepherd

Thanks, Shlomo.

Operator

Benchmark With Company. Harrigan that now Matthew at to

Matthew Harrigan

of adaptability about you of financial services are like you. and about attribution this industry verticals? the accelerating consumer through nicely go I you really talk year, well as decisions across retention the the so process, earlier the activity better of in outside and decisions and kind space incorporation which assessing AI, concert the you as think Xponent Thank many some purchasing of in white you talked Can including within consultancies? feels behavior getting you're as of the really It product at paper a

Brian Shepherd

and operating for NPS customer overall doing a their it helps verticals, onboarding and next harness our real which just today. scores. joining of core really can deflecting data customers drive cross at Thanks, its across a customers, calls our has really revenue customer engine takes that lot the sell, is give core Appreciate time applicability Xponent, has decisioning I hope you capability and great. offset the Yes, costs both action us industry you're so best that to Matt. CSG of in upsell, improve them that new engagement

what does. of core the that's it So

it so And economic more is for easier that get bumpy wrapped kind itself a good environment. I'd in such it faster vertical say use cases by that and It around has vertical that return implement and targeted pays just of a makes ROI, even then to quickly.

to of trying we wrapped we're targeted analytics what that So to and that constantly is do decisioning engine cases. with use improve capability more the our provide customers,

see So of and financial that different digitizing notifications. payments types loans and with in services we

routing customer of retailers improved we notifications, experience kind center we're some lot how and can or notify take prescription areas see costs pharmacy the more retail, improving get that really the the In abandonment on their like around we're big about that a they solved helping prescription in talking tech, of where customers the of really you're that driving contact business quickly. issue out of on win,

decisioning case. and use very at So value core a it's is driven platform that AI AI targeted on the providing

a the So sell bunch lot have to they even and great additional out get could more relationships in and of do those because is and often what in actually the specific have expand what services. and more capabilities do a verticals we also use there's be trying wrap sell platform cases but us channel it sales we're partners our the that SaaS of because the can they pull with we with decisioning direct

part So our and to that that business. a big we've continually turbocharge focus of just got is

Matthew Harrigan

given get did you worse would a given that business, and of little expect have billing So dented the mild where in the to predictability if and resilience recession in Europe? we the a maybe U.S.

Brian Shepherd

talk become that is about we to balance and they Yes, it's predict, no far see CSG we about different tried where mean earnings than the it every solution. their one to or revenue that's costs revenue out take on helps has call, their they growth. I terms up If left can But business. kind asking to in held part costs of or do how so of accelerate questions out our in as looking the this what is, better, try hard exactly those customer cut the I mean of then with we accelerated of their get them own operating floor aren't OpEx cutting improvements business, their what well make they squeeze of while CSG spend costs because customers

it don't says but far, stay on of that those some one see the we've where we the and been side -- to we business pullback, think ledger verticals could continue any improve so I I win risks Therefore, actually programs. their we in and those of create results. solve So, these help challenges

don't or think the there's So I that industry one world. region vertical of actually one

ROI, think ROI to the we that I we've business case to it's proven and got the continue something value sell can drive. that just the

we're what Hai do, is we're sure than constantly That so continue grow talked that our make good and OpEx growing earlier. think also as we trying slower our you'll if our get that to forecasting we revenue to And growth. organic said, about disciplined we I see wrong don't

Matthew Harrigan

Congrats for the Thanks. number.

Brian Shepherd

of share you business, how on see of to about I else would growth appreciate think and in anything quarters, balance respond? part we a then just Matt. we coming the else Hai, the of it, that did how if kind get slowdown we would

Hai Tran

I think covered it, Brian. you

that looking enables have is that flex think at and helps data the cost a I to to are two the things. One, for business. we those the bit very canary both be non-financial respond rapidly as financial corner, trends able us develop data possible, more visibility that trying where and in then of rapidly capabilities the so us, us mentioned it's battle, ongoing a driven to an and identify to in that we're coal where around peer do always risks have in that Brian we but base right mine tools our to

Matthew Harrigan

in that So you as a house economic you your view decent just telling clients off get what you? data just have it's are the well

Hai Tran

we Yes, I do. mean

like particularly payments access lots data. access imagine, to can have business, the right. of to have CX in You we lot we In business, a of data, the

So to interesting some perform that analyses. data set enables us large

metrics Now it's one which the question sophisticated, out trying of more in more getting are nature. those to predictive figure around

Matthew Harrigan

great. That's Hai. Thanks,

Operator

now from And Knoblauch we'll Fitzgerald. take next our at Brett question Cantor

Brett Knoblauch

another or you $X.X way guys as reach are as taking on your program. we billion. for thanks this maybe think soon over your it? strategy over and more near-term, to call guys, XXXX we is being it does Hi there I favorable Should to How the goal think about to question. share guess this M&A acquisition near-term first my share of the new repurchase a change buybacks approaching

Brian Shepherd

No, Thanks at hope hey call. doesn't joining question. it you're the well. all. No, Brett, Great for change doing

for try We're to glass be a Aristocrat, dividend. that. decade Our to hands going three X% provider. on pretty raised an we dividend every continue that priorities main off as We've historically much interaction. pretty over on an like and call consistent now Clockwork One

great with scale dilution Secondly leverage a value at buyback offset adding on And third, operating in acquisitions business. side. to minimum base and create the our comp executive share scale

undervalued see buyback capital just and is deploy had big we where like way, bunch we we we if XXXX. a that can stock opportunity think in our will of And we share an

And And that see we so across that of kind to doesn't change opportunities the of execute continue board. that. any

Brett Knoblauch

it. kind cash guidance just unchanged. Understood. the Should but EPS it guidance, and on then left maybe guidance, Got margin of the free And the across EPS by midpoint as being you costs? is maybe improvement interest flow guys the call we of revenue led raised, EPS any raising midpoint maybe higher have anything there else to that not just is there? think board, that Or offset on about going would maybe

Brian Shepherd

that? want you Hai, question. Good

Hai Tran

Yes, that's correct.

facing as We are interest the seeing as business, currency are improvements costs performance higher benefits. both of away underlying some the taking fluctuations, of but those improved in headwinds well those

earlier, year As about it's a headwind this Brian $X.XX for us. mentioned

Brett Knoblauch

Perfect, of and parse payments XX% X%, year the to understood. a revenue between squeeze of the X.X%, the And in half if of seems and second the it I just could still contributing closer break and to the one first differences there. then second this on could implied last maybe half what I guess maybe half growth we growth half guess I But maybe what's such that? that's is robust. quite dispersion kind you as between driving side, payment first help one like out, growing

Brian Shepherd

a maybe break help we Yes, I little can bit, Brett. don't out the specifics, but

organic double-digit it a our contributors little bit, first growth, at look to there's that you that kind took just level. of XX% If half two over really year-over-year

about you and combined, those neutralize $XX the we Charter X%. you then if the big one-time million did take competitors, of one subs conversions bigger of kind license. and off two Those If converting our about we talked at of the even things out, are

still around maybe you a out, core still you we're kind but slightly gives that kind X% above above. two that, the is the X% says of just growing of those business to says but it that in So take range it X%,

growth. what so that seen all are contributing is our units And we've business good in to of the

as North So organic enterprise side global businesses, we we space consistently more potential fully to CX expect American and digital be the on telecom both and growth cable see and our wireless really we big definitely good growth the in deals. win payments consumer strong in double-digit

in in obviously, as grow CX growth acquisitions through we nicely size scale and to payments even growing digital and the core and bigger cable add of smart So what that units can continue value, to those we get do both the try then faster is telecom. and also

Brett Knoblauch

right, All Understood. appreciate it. thanks, guys. Really

Brian Shepherd

Brett. Thanks,

Operator

Dan to at Oppenheimer. now next McDermott go we'll And

Dan McDermott

around combined. business extremely don't on broadband I Comcast currently subs is Charter's for you one bills, customers it getting currently adding my you growing consolidate the Horan. mobile Their Wouldn't question. and onto Dan everyone. X quarter two video their Tim platform? Hi, for this and and believe Charter make taking mobile obviously Thank million business. fast, for Thank services for one Comcast Are sense you. other mobile? to for and support

Brian Shepherd

at for the with serve love to is both that our and platforms, we Yes, great. the Yes, thanks not that BSS joining. raise doing hey Thanks the we the the customers Dan, We execs something do use lot of you're question. to try wireless try of customers we same good we Hope question. that for Comcast sense to We time, them and that. their business. And vendors give make love a at why it. often it respect different don't respect We to for parts will reasons And and our cases today. could consolidate. different business the Charter,

So That's so one separate as today we There's of that And deliver we respect their today. it the XXX% although those, one platforms. far, with Comcast competitors a work is time, Charter, sense converged bill, great not where still to and they think one we felt customers. the to not experience make our try of it Denver. that. could I I.e. for Quad Play of decision live in given for but makes sense over customer of does

they if just completely they at with some them give us us And time. we to try expand they choice. could serve consider in wanted give It's what their to them with well and reasons to point how

Dan McDermott

Thank you much. it. Got so

Brian Shepherd

Dan. Thanks,

Operator

Thank And in back closing you. anyone to it currently Shepherd like I else to I'd queue. for don't comments. see turn Mr.

Brian Shepherd

a into now earlier, for and extremely we're call. the like two joining of But we us, for QX. about month QX. everyone talked Thanks proud We're days

as think that value shareholder can in can we interest we the on expense, as do better better. still better we do capital on So QX our we can good way with add more good We was, acquisitions. do deploy EPS, can

of So we're the elevating work results. do to talking look to to Thanks but proud we've what lot got of forward the next quarter. and keep we're doing, you a time for to

Operator

all wish We'd you, you Goodbye. conclude Systems much all for That the CSG conference joining earnings great like XXXX Thank us to will and and call. your a thank of ladies you day. gentlemen. QX remainder so

CSG Systems International (CSGS) 2 Aug 232023 Q2 Earnings call transcript