CSGS - Earnings call 3 2023 | CSG Systems International, Inc.

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Operator

Thank you for standing by. My name is Bailey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2023 CSG Systems International, Inc. Earnings Conference Call. [Operator Instructions]. turn Relations. over now Head John will Investor of I the to call Rea, And

John Rea

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

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

GAAP by our management non-GAAP in information accordance that is transparency investors information are GAAP. as of financial during in operational financial most conjunction discussion call, can well and financial financial comprehensive press we our will We recently our when addition factors to used with provide In filed these factors that website. decision-making. the noted available greater certain our our measures, which in discuss of measures, Investor to today's XX-Q, reviewed team as this all and the release with with risk a Relations more Also, be in our XX-K in prepared found believe section not

reconciliation and today's today website, Officer; the tables are furnished to me Brian. that, you Tran, the For With call financial Executive non-GAAP I'd phone X-K. Chief measures, refer Shepherd, also we Chief the be release Brian turn more Hai to Form information over earnings which regarding now on will Financial Officer. our like non-GAAP With to to on on use and of SEC our

Brian Shepherd

organic Hi, revenue joining we appreciate months X John. We on Thanks, results both of CSG We call QX X. you from growth and coming as delivered first the everyone. Team months begin year. through X the X% XXXX, growth. of in year-over-year first posted the the Slide fantastic all

months X we Our the through the in results X was posted best nearly first performance decades.

Our year-to-date through the operating ability and non-GAAP first execution. we disciplined leverage margin adjusted reported over our XX.X%, consistently the a was is expand of XXXX, XX.X% proving improvement months with to operating X CSG's our which commitment significant

more a place $XX.XX we balanced of of result a experience rate dilution as Plus, share will for debt. mix derivative shareholders our optimizing step freeing During interest debt, majority million debt In we the transaction in our sheet. took to the raise. lowering revolver quarter, giving put structure approximately equity the exceeds we successful and $XXX and M&A, until big capital of September, our simultaneously our balance had convertible a benefits, price completed up the on fixed our including in convert. many future X.XXX% our floating no rate This a with

million announced plan. repurchase On share buybacks, last a quarter $XXX the we

this we QX. is $XXX to program complete stock We have worth are announce excited repurchased CSG of million that during as

quarter quarterly since largest context, XXXX. share repurchase this was QX our of historical For

shareholder stock believe will year will target a compensation ongoing is all to pipeline market growth buy non-GAAP opportunity and Looking value. performance. are CSG's expectation for with to faster we industry-leading reiterate to sales growth create demand this and guidance large guidance for ranges back we repurchase is the offset strong through minimum the shares in opportunistically new of XXXX a we verticals. our faster than the shares financial raise more greater buy employee other SaaS healthy fiscal customers At XXXX. a EPS pleased end guidance perspective, when forward, the of products at by our industry win we as the variety fueled continue CSG's wow of good to big From and day, with sales end back and we it that revenue wide will

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

shared, one will revenue for we service and communication providers most the do from as verticals organic provider a growth. of revenue or range. above combination XXXX sales services, organic good industry so to financial than growth, to by Further, this of inorganic strive combined at to As by X% and growing with the CSG XXXX at competitors. like striving choice revenue by be retail, be the the the to of business revenue than big billion plan in operating X% more. That to range $X.X and faster our disciplined fast long-term revenue even to above I win providing midpoint just at easier we this This of guidance we're scale And year-end sitting growth X.X%. pleased finally, line growth growing come why our healthcare, technology bottom consistently we as technology is aspires top SaaS or to revenue midpoint government, see being to of range, approximately moves. faster expand our global platforms the end value-added top number diversify We in with and by scale more operating deliver leverage line aimed with

with X XXXX. first result Moving XXXX, years. best revenue months we against of through our first the to nearly months Slide in resulting year-to-date X, we objectives million in you growth, X-month strategic excellent XX can $XXX year-over-year see of results worth revenue of our delivered through the reported all X On X growth, that X%

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

on growth our long revenue or balance CSG and Over Board empty grow term, point, management the to and the growth. CSG meets shareholder non-GAAP Directors the Investors strong assured is exceeds a can to medium On and earning to that leverage I this aspire CSG's to operating creating revenue value faster, expand revenue. calorie we for laser-focused to principle sheet EPS not team. reinforce be profitable deliver right of that key Team last use want adding

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

we organic X% our historical and revenue our wanted has X% Team as X revenue over we our to X% highlight organic on X, years new through introduced over far are organic we've Slide with to to growth about delivered we guidance averaging XXXX year come range period to on revenue million take stating CSG $XX from X%. that XXXX, growth time. implied to proud to it X% our commitment, targets, this short Around year-end to organic From Moving CSG period accelerating revenue double to revenue ago, average how averaged XXXX And our by share in that that XXXX of revenue revenue a time organic growth. wanted X.X% we just growing to current growth, growth by organic respect targets. of year-over-year

million $XX of Focusing laser-focused revenue that while the to of in This organic our track to high to chart XXXX At see at years. Xx growth deliver see in high approximately X.X% XXXX, in end growth. end alone, XXXX is bar low the this X.X% on organic year end on revenue far historical maintaining of million organic the would on compared the in $XX the the guidance year-over-year our the momentum right, a CSG guidance our year-over-year approximately new achieving coming day, Team are XXXX revenue means we increase us growth on this would performance. almost the end us to current add

X, million communication service executing customers for the our platform months success be North from X are first with we the XX And to competitor's both year American our to strategic CSPs of of globally. and year, that well provider had Slide completed goal and continued against through choice we technology a proved Earlier providers of conversion good successes this Charter. the Turning at our number priority. one we Global this

and XXXX, a basis. Charter with contracts QX respectively. We per through reminder, a relationship as with on CSG's Comcast and year-end And both have XXXX Comcast Charter that long-term is customer run and

CSG their We deal modernize new one BSS leading business base new of over strength a QX. the losses the While we the highlights And stack. of but broadly and residential main providers past solutions we very with week, simplify was cable to XX the the SMB like MX, it business their importantly, headlines video replacing to gotten won broadband one. Comcast we leading our the market. subscriber is a continue of seem great to as mobile CSG to carriers stack wins, customer flat BSS This extended selected relationship are and transform wireless And a one with expanded Charter's plus-year stayed nuance, in logo digitally more a their competitor. this was solutions. with Singapore. our may selected telecom and important BXB processes cutting-edge win our minor in On have during in CSG U.S. of logo agile lot and

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financial non-GAAP EPS our and guidance all guidance targets. raising are year reiterating other We full

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clear. Our biggest and breakthroughs messages our still to employees, are best To of key X days are stakeholders our us. ahead CSG's

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Hai Tran

Thanks, Brian.

QX for XX, first $XXX the Starting then our year-over-year on Slide some XXXX, X growth, of of million X-month all X.X% with was we wrap which represents revenue and and generated year-to-date which through walk of months I'll Let's conclusions. results, financial up organic.

reported revenue we in Additionally, growth X.X% year-over-year QX. organic

in CX to Our volumes. CSG's the X months growth solutions, year-over-year revenue the CCSG revenue of strong first strong payment our increased increase in customer growth conversions including attributed Digital primarily was and of solutions, continued solutions, management accounts

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

headwinds. Lastly, revenue expense margin from was and XXXX by were period our higher identical offset increases EPS in operating result the prior non-GAAP an $X.XX, as and year-to-date year foreign currency interest

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

working favorable capital million employee compared the negative period primary performance cash XXXX. this balance for accrued better prior from convertible rate $XX cash deal fixed sheet of The X successful sheet, a X-month experience share million no and Further, very $XX free including quarter to the by Our approximately bringing $XX the operations we debt. deal. changes was floating our of a future giving period. revolver first of the to a Plus, mix lowering $XX.XX. as as driver non-GAAP XXXX balance equity same M&A, compensation was our and cash and compared of executed debt had year to benefits, flow in our rate, revenue. $XX shareholders months XXXX deferred price flow up in delivered flow multiple during dilution With in we million until in increased million will respect This reaches a equity our interest driven

revolvers. a $XXX paid debt on of our million we coupon, $XXX a As convertible raised X.XXX% we million reminder, with and

$XXX outstanding September net Moving on, with at X.Xx XXXX, with debt and $XXX third adjusted EBITDA. That, we debt in ratio of cash XX, results million our at quarter ended along the sits equivalents. and of net million our debt, cash of leverage

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

In the tied rate. repurchased shares delta convertible majority with repurchasing was QX, associated in stock million addition, debt $XXX the our to we during which of hedge

we'll on Turning touch the page, guidance.

mentioned, good share Brian $X.XX EPS raising range we QX as performance As a activity our of XXXX. result operating are $X.XX our in to and of to non-GAAP our repurchase

reward reiterating the the of continue including and We projects. in receivables include we $XX CSG how the how recurring revenue every to with our we facilitate a use strong million of target framework movements prioritize manage growth, expect question-and-answer accelerating are timing global telecommunications the stay remain timing a that, resources we These quarter disciplined other We diversifying With in operator million which cornerstones of to closing investment flow We due may the capital. will well an AI our base. capital original key are Innovation, of the the now with to guidance respect to $XXX transformative revenue and allocation disciplined session. business. across with come lower to will high-quality over financial working deployment positioned trade all shareholders approach, towards customer and to to is sales adherence to integrating collection of certain I'll pipeline guidance, movements. a of our our learning end around those include and to certain serve committed ranges. combined the for value-added free CSG consistent related the continuous CSG And and cash capital of make turn risk we this up, well. with acquisitions. our Wrapping it relentlessly to and certain believe including the of large end, distribution power leverage

Operator

line [Operator of Instructions] comes Thank the Blair. question Maggie Your you. William Nolan first from with

Margaret Nolan

of whether or the and your kinds is when the back factors congrats for commentary this results. you and for revenue determine you're and I'm for if level wondering on range. of at of about of on years looking growth be you of even growth about Thank the should growth those can distill really out Thinking high rate the to we some some still you nonrepeatable of us what this year drove of ahead. items, sort what the table next kind end

Brian Shepherd

joining call for believe and do lot to continue We accelerated on growth. question. a the we an execute organic I can Thanks the absolutely appreciate

couple X% do our sustainable. expect As a going growth We we've accelerated absolutely higher, fully is range. on. of said, is or be at to that's faster so we X% to a There's midpoint believe things the performance good that

in new Digital new CX, verticals. the diversification In the we're the big wins. AI-driven adding First, industry

is Our strong. pipeline

tough merchants, see number that platform, We deliver transaction SaaS volumes growth it on good space terms a growing. continue then can both Same of big this a we environment. deliver cost of of environment, to line model, And CX, their if know and payments. do undercut those even you in with improve thing as SaaS-driven in data are diversification savings, using in value. And in X contributors. we a

there's commoditization of both way broadband Telecom, that about space. data, solutions, need customized the resonating You American less slowing net world. for kind see business. adds to of BSS the in see and telecom agile, lower global is execute leverage more We the And the growth all questions the revenue of consistently win and all delivery the be into come the voice telecom we what the cost, sales love back come Global business, we if core product with model, deals to in cable side. and Then on back continue of global been we continue to business our big and management. around we

consolidating significant expand at in even And well. growth we look more some potential mass, win lot past to positioned We plot think do notwithstanding market, to to continue customers in have with homes play if areas see U.S. accelerating to current their maybe land doing we including a big in on who's them longer momentum we our X when the we X the customers. Opportunity continue what networks. a this new had. of short-term and they're invest cable of potential, First, term just to in the our take absolutely serve expect challenges, to we've opportunity big

Margaret Nolan

to there Thanks metrics. increased payments through And to different like Are to a like and and of then way, those outlined, business? offerings about this this arrangement? engagement a for Engage, is gave the different talked additive other and monetize the reduced different share that, customer you of margin that able example uncollected the you in profile solutions Forte And way Brian. gain were outcomes of and outcome-based the outcomes kind about you of you CSG or you a few achieve type think when

Brian Shepherd

and take strong potentially acquisitions organic the our Digital in product we outcome-based. to add you We and and maybe double-digit on in talk Payments to portfolio strength. and our growth able business about first gain our as I'll business value-creating do expect disciplined to can layer Hai, CX the be just

platform strengths enterprise. which the And to and but a our we merchants. efficient which SMB card do payment in of on be not ability is the is also percentage, more bigger side onboard launch quickly payment SaaS to able the one the transactions, or industry to have the just can One ACH, best at channel, is of we're our credit

of more kind are channel partners, sell they initiatives. or approach so direct of behalf our through as can sell who X on bigger merchants, our that can onboard where onboard And modular we and ISVs

might different model, I you model think you'll how the thoughts use As with using. see do on far approaches any have But in us we this Hai, as we're the more stick business space?

Hai Tran

pressures lot that. this of are I'll geographies speaking, environment industry. of economic take on Generally customers different Yes, a multiple in the financial there across our in type

much is Our something whereby hyper able some selling to very That differentiates and how us to it's approach to quantify. directly real It's customers really challenges able around ROI-based we on. outcomes-based, to that very can of be focused quantifiable. speak we're their be

Operator

Harrigan of next with from Your comes question Benchmark. the Matthew line

Matthew Harrigan

curious you. now results, on you're I in Congratulations could was on line, on you the Thank with seeing side particularly elaborate given and that really opportunities leverage Are market. your you're getting pricing trying SaaS that you Thank in saner is the you like do, sheet seeing top if clearly. particularly you. balance think that you to the you given glove $X.X latitude fit to a your M&A as have what billion AI? the with target what capacity

Brian Shepherd

deals demonstrated two, we get investors, the to M&A deploy you that XXXX? probably you we've Absolutely, with And Matt. the to our results are that do capital? with both. strategy. yes The we've discipline from is one, most get answer still on is hopefully by done billion going to questions of X $X.X the you're well. The of doing Hope Thanks, part can

like, in we companies zone. a who would Because the value like to our closer would as valuations how to whole see on unlock various do companies, say be culture that, been see strike the more or to think valuation value-creating of up the that divest added so sell second thing period with a will what do either we good there look assets we we you they with what continue able that And record. we do And then to can overpay, what good end on to do the valuation and think we coming deals done. the to and continues certain strategic time. might for integration track acquisitions, company, if come is to value way we First, we can we to actionable we the acquisitions people, acquisition customers. we product down And mess that be want we've to see as of that's good and good on capability bring best our we've

telco the we've coming that on deals Digital specifically thing into a AI-driven data-driven see space. the make Really areas, think the in it that Kitewheel, it discipline, the seen We Same and growth Telecom, on CPQ we Tango area sure our to order management. and strike did what strong seeing are double-digit platform we launch results DGIT, expect see dozens Now, organic The of and zone deal very capability our to profit from of with the a an comes one added CX. come in centerpiece in became looking constantly Exponent good looks In more we the and are I on global that. with where hopefully at contribution was We is performance. adding we in of valuations all and deal AI like. offer. being disciplined

a we're side we not is, have And space, players now of for the so the lot well might you're the lot Microsoft. what AI and highly in inside internal disciplined to any low our X referenced that We disciplined and valuations, have But the ruling that's like a our capabilities out but expanding we leveraging the right there's the partner-driven approach big think this. AI of a walls, end us improved customers. take If offering specifically, with just overinflated think don't there's stick that bring focus be approach A, smaller on strong shake seeing and we what strategic those M&A. we Again, we to out. as there's great, we're the we going consider and value a of of see more players efficiencies on at as partnership

Operator

from line the of with Oppenheimer. Your Timothy next comes question Horan

Timothy Horan

moving AI. on on so rapidly Congratulations

Just you data label mind. impact leverage have the can using? can you lot that do a don't your you And train more either Thanks. or will new you take products wanted what if revenue on think have models? new drive growth? to in you own color to it And Do expenses do reduce financials, AI? that mind a of to material And us long on focus give to you're little model how the a bit on

Brian Shepherd

thanks. and questions. questions Hey, Yes, really Tim, timely good

think leading First, think -- AI, we and we way we're the edge of terms don't in deploying but how it, do leading we're using. it describe we're we is

But of side some say I data our many where data data and some more and our at majority customers' actually they is directly. the are, and leverage that of that, specifically, us I in work on would data There be actually say the in is we needing have access solutions is would some opt to not businesses the the would ours. can of in looking On actually it and to of as be would opportunities. different with them bigger

in we more the and long-range kind serve what and extension inside balance already doing contributing just Specifically side. around our on to We that. others. works businesses the products been we learning of there's And to model more X do And it's bill around machine we've it. the an industries, of core launch whether lots us is between launches on expect that but doing and That's side, you capability of kind us being that think We're Bill to driver see X by opportunity a have global telecom, insurance, it's -- also data big of end address the be cable and on in other the our the utilities, on revenue other it consumer growth the upper end of be accelerating targets, huge above, excited and at -- Explainer.AI upper that really seen to walls. enterprise or in scientists and you've launch shot. is

some partners large that efficiency to talk want language side this. about of partners We smaller you models Hai, have will also some bigger that. targeted around of our the our and of maybe leverage

operate XX% do long-term shown XX%. margin about AI company range you can XX%. side, We'd the We've Our we get solidly is to to debt the How end. to on the upper the Hai? love in think

Hai Tran

Yes.

can increases it debt which think at of the pace I rate we the to our get target.

technology, immersing democratizing and full that trying of we're new take clearly the speak. organization to across are We advantage and as we the

organization, lot the As and opportunities. explore starting that's we in see unlock really to in I department that think model. shared, across the the of unique a efficiencies we're you the every can Brian chart interesting where now And

Timothy Horan

quarters. sounds do AI, there? maybe going has When It been Broadband it's of And to that X kind X again. products, now revenue take relatively has to been, some you then maybe questions. to last financial in like just X, going you the what's basically to stable it And that have related expect new accelerate? get

Brian Shepherd

Yes.

them absolutely and cable current X do to grow at to exactly. have our video and American ups bring to we out got company is of partners the It's the high serve Any IT use. core grow customers the American way don't more think vendors the hurt On could story more be best. the focus our we give any got also the tend couple are and have not of through value. that us we We've development. market share huge that that. and things. They of constantly growth. meaningful cable relationship. biggest challenges rate they we think those coming, a That's in a They we will cable core cable, North is customers, vendors. our when that or given they One, in North the say operational that on even may in-year general still maybe think have. big to the turn does displace usually to We of And what one do above company, CSG. side, There's I they best lot on of though that for customer pressure, vendor do expect misunderstood what of internal year big mean headroom today not on parts we growth. quarter can our some bigger and have think a I aspects about serving Because I we feel We've in there's

do Ours is, our headwinds even can and absolutely day. customers go any intermediate we that value or respect we with We try don't for even nicely of headwinds that every continue take short-term that some granted. earn We to think it to may face.

Operator

Gregory Your Sidoti Burns, & next question Company. comes from

Gregory Burns

Do projected the your quarter? to operating be quarter, growth historically, sequentially in potential Is profitability. certain you past driving obviously of see levels operated Why And you've the looking consistent are scale. upside steady, margins to that fourth fourth then you're driving organic beyond down from the there here? for margin at expand there to kind targets? know of points is at I in that margins higher --

Brian Shepherd

Thanks, Greg. Yes.

the in of the we First, year. that thought the of about guidance terms for remainder

it our so we the lower absolutely we've be to at growth. to quarter. quarter got know be end. chance QX month year. already that end, able got into the expectation from in. step not And we we've have is revenue down, into do to always got [currently] first, expecting We to the every any we believing a in but how and have -- see upper And drive But to left to QX, a the don't the comes we're in with We've some work let's execute expect well X and come months

to to specifically great the of up that, XX.X%. we side adjusted margin our to op Now on last quarter non-GAAP increased range was XX.XX% where it actually margin see

XX% to just like in XX%. shy X over the well It's And what business us better which now see than we within to we of quarters You our year. say like through XX.X%, is basis improvement XX%. XX% last at XXX points is

terms the at year. And next XX%, would lot step take yet solidly expect we We operating not talk about expect a we're just we a we're to performance better And that do our small for we've doing. at of don't Now operational -- that's giving redirect sales, Greg. what guidance customers back, the value more that's and growth. looking OpEx and And accelerated been for to we how rents, discipline. constantly better

faster lower there a We market. exciting be for leverage others, across finding division the but operating expand discipline like quarter our Bottom we a better line. do continually line to than that's little grows seeing thank to way some Year than top our global in-year expect the now. in that we're faster, business. We out, may or leaders a tough

Gregory Burns

is Okay. the quarter? do what I And where share in count be fourth guess expect you the count to share the now?

Hai Tran

the you quarter specific let Greg. In I'll to back on get get that, fourth a you -- me number. very

Gregory Burns

Thanks. great. Okay,

Brian Shepherd

where we big after the us Hai the it back QX now, said a $XXX allocation as do our we've pulling capital is said that what share just -- What bought of leg buyback stool. first million see we is, third the you'd stock, of up, little is worth on

on First hands is class dividend. off

Secondly, at a acquisitions. focus creating offset And third, value on have buybacks then minimum strategic share dilution.

along offsetting this lines the prior year approach. a big at stage, and of QX see, buybacks buybacks. least the after more the you'll on did at focused share think on dilution more I is we steady It big

Hai Tran

-- about And modest have Greg, you seen could some (inaudible).

Operator

Shlomo question next Rosenbaum comes Your Stifel. with from

Shlomo Rosenbaum

little that? and that's just bit focus little are on of X of revenue, just are more the a then bit off that area large a an and up in a gyrations. Maybe that a bit of I for with kind clients the just sequential then little compare about had step telecom And step question, I that. And follow-up. Brian. a rolling on they First down. in have of that color just you Maybe could and know like projects big you, talk This

Brian Shepherd

that momentum Yes. Telecom, say Global And win I thanks traction we in in business. come the while been about get. I we we're there's recurring telecom, lot the telecom, what I questions. then also maintenance, license, and wins talking we've big On for in would giant deploy revenue, there's of Shlomo, we've that mean is, great, had that other That's recurring so implementation much gaining a guess on. a in both given When fees recognized of would the a see growth some, we Caribbean. that The building with you'll about That's big Africa, the a in South the in implementation that Saudi on big in in Mobily, with that's second win We've South global then And including quarter. Pacific, Global the and in part customers the gets the Telecom. then And going just talked big deployments revenue middle, in Australia. largest. the evolve got in

its -- that growth of of seen some this would this an part In traction services. more to the business. in quite prior the recurring strong of in the of revenue. big lot was growth X. of X, and I say last it actually of a the The we years evolution in get majority quarter, combined big couple quarter as is flattish, strong over it our you've And Just

X% a You'll we quarter. get a overall couple message, of in in big that can given like in of in-quarter midpoint out. believe questions, higher, and cable the commented X% some absolutely around kind or that earlier we fluctuations our just our quarter some on at be But to grow do And the on range. deviation that can consistently the see some customers quarters you'll

Shlomo Rosenbaum

the milestones your end Okay. just of customers know Great. don't then things kind cash if free late is maybe extending just but the of And really lower just a to Or timing the kind point are Thank current the range, that? you. I I'd payment paying environment? seeing for guidance a like of in you it of various that terms, flow call implementations and

Hai Tran

Yes, it milestones. of is timing primarily

still been good I making payments. customers fairly have think their that our about

particularly issue, We AR the is materially that aged looked more Our has the of past. or growing. telco It larger transformative view different the some hasn't global as than it unbilled balance projects a in about timing on. going around

Operator

will question come with Knoblauch Fitzgerald. final Cantor from The Brett

Brett Knoblauch

margin. just quarter. gross the Maybe on on one Congrats

of year points or kind all we this kind What's that? what driving the gross basis hundred year-over-year, think should of I expect go-forward stepped margin And of the go-forward couple down declined. on on sequentially it's basis? a range

Hai Tran

a revenues margin in gross different our today. we on And very SaaS. of mix some The and of if revenue, profile. SaaS business, of on SaaS business, they're of we around that of totally will movement business at CX, look will a combination revenues, drive The payments obviously which said, in and any With business majority all particular license have our that. our have non-telco be mix services

to mix. the up, ramp going As that's those improve

drive our to greater other of the in the opportunities lines drive board we well. going margin gross that's efficiencies margin across on as for business, expansion side As

that mix turn kind to as wrench. Brian the Our I phrase, steady will continue of a Because towards have march expectation, a improvement the aside. of margin said, love

Brett Knoblauch

employees Perfect. the to more And Understood. to you you for potential guys be make you then internally talked headcount it AI could more on productive. this reduce think of using becomes in intertwined a organization? your a lot the about front, Do just this driver as

Brian Shepherd

improved but it efficiency we we're efficient think growth organic I the it like stage, something say having teams update and all To expect headcount are parts the Do more capabilities? think of to the Will revenue at. customer question more quarters. our our of lead that headcount more avoidance the in in of unleashing service, going though, already to amount of that's expect of there's overall. I do, Absolutely. cuts? Absolutely, in if on to a you we as be of headcount looking avoidance more that lot continue continue, can and is -- to across lead headcount this innovation companies sales I'd to things that because it's customer lot watch and a in And the future is accelerate G&A our more efficient? a and at we we drive growth of we're that What a efficient service, more just growth, to means continually seeing with specifically as over headcount opposed the the board, time. you potentially may see could specific R&D are that cut that some business.

Operator

the And Markets. question Capital Chokshi next Nehal with from comes Northland

Nehal Chokshi

quarter strong thank nice you, here. and Yes,

nice Given was guidance? that not it calendar raise a strong 'XX quarter, why

Brian Shepherd

do Like actually it's that No, the Yeah. the saw in year we We the can last giant lot Nehal, million We came said end in to said get QX. delivered would be year. -- color I we or the would QX, What momentum QX. think business, hope in maybe the a of QX to lot was have end expect a guidance. giant the perform top announced at $X decided QX same QX. question. about QX when focus building above going just I with the you -- love We said, well. QX and look look a ahead would shared some how and different We doing QX. like of like We we we this to we're seeing QX look was we talked guidance we to the performance, you're said just the a shaped QX. good fully and to keep on little a

we've we just strong decided last to wanted wanted and both what and I better repeat do have and results make rinse to our say and the But QX, what with that sure got have be would materially, predictions, had. we're to we than is Now beat QX just QX and we overachieving see. we we our

Operator

questions Brian remarks. this will time. further for I CEO, are Shepherd, no to hand it there And back closing at

Brian Shepherd

growth reason everywhere shouldn't look we fast line no grow faster and More CSG-er in the super continuing There's deliver for come for as we're to to bigger point in-quarter world is, results to bigger in I far what X this hopefully say to deliver. so guess quarter Great. like create we time. continues intend results, prove around more That and with better forward putting up the absolutely clockwork every we dream believe not to line grateful results. us that absolutely is We to mid-single-digit execute than Thanks, QX. that's just can to we everyone, year, to our joining. words. to organic disciplined just and top to we've and great bottom closing what will out would been things. main value or and Thanks execution, up against a with the continue

Operator

call. And this today's conference concludes

now may You disconnect.

CSG Systems International (CSGS) 1 Nov 232023 Q3 Earnings call transcript