CSGS - Earnings call 4 2023 | CSG Systems International, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to CSG's Q4 and Full Year 2023 Earnings Call. [Operator Instructions] I would now like to turn the call over to John Ray, Treasurer and Head of Investor Relations. John, please go ahead.

John Rea

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

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

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

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

Brian Shepherd

a Hi, with on John. strong you in year-over-year quarter. appreciate coming growth. call fourth we record-setting growth organic from XXXX everyone. the as X.X% begin joining finished a revenue posted all XXXX, We Thanks, CSG X. Slide We

this performance X best decades. year annual Our was result nearly in the

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

the Another was our cash XXXX performance highlight year strong free flow especially during of QX.

generated including flow we year, the $XXX cash million cash our $XX in performance For on free over record. QX, free in flow, best quarterly million

day, ongoing large the is in our customers sales for revenue faster by industry variety performance industry-leading sales and we CSG's growth of new end and verticals. as all healthy pipeline wow products is fueled business. big the win of strong wide of good CSG's growth areas At SaaS faster across a our market and demand

important results. Another diverse can belief that first. better we our should high-integrity is topic companies better CSG, and people on and At good deliver and of perform believe I about care companies consistently touch sustainability, want finish to who

Scope needle as its and XX% ISS, peers X showcases which impact disclosures, by from in agency from rating of second April, consecutive commitment perspective. SASB the carbon initiatives to carbon an In annual we our ESG reports means that we rating Scope received disclosure. In we our are neutral ESG, it with comes software and quality top when our official December, In strive diversity, around especially in CSG TCFD to the moving ESG which inaugural is increased community report X XXXX, our In both and our issued announced inclusion our impact. be we XXXX. emissions global prime

XX% framework. of And CSA to publicly Additionally, the rated step-up BBB ESG and X ago. the peers we according to all rating software years we from a MSCI, S&P our received top from companies according of a we received top recently AA Sustainalytics rating XX% ranked

will As and differentiator first, us. we in value-adding solve continued and is CSG mission-critical to on first we inspired within and commitments business progress years forward a our as quarters SaaS look challenges the believe products. people in talented easier We we with for more sharing ahead, focus approach CSG enterprise A do ahead customers' then responsibility this competitors continue journey. to key on our business our look workforce, turn our makes important culture toughest we as our our to corporate

stock regards With during of to $XXX million repurchased XXXX. share we buybacks,

repurchase that This a that marks are we minimum, announce paid opportunistically underpins back see $X.XX to and continue our prove XXXX, it strong we buy back increase greater dividends, expectation with to business will consecutive enough will buy be And of and end by Looking value. we to should compensation On offset friendly year. with more guidance quarterly we stock in the forward, to increments. a employee when we to our believe this we shares through continuing XXth pleased momentum new our shareholder than the the dividend policy. the X% year CSG's create per shareholder at will will opportunity dedication XXXX that increasing return annual our to into shares

to midpoint to X% $X.X billion above growth revenue our the with $X.XX long-term billion to range year. this revenue of organic expect X% We of be

XX.X%. then team investors our on as with confident revenue but in cash by turning more growth into that the outlook, organic and leadership go Team profitability good our to full CSG's strong our is commitment accelerate that revenue year constantly range range, to foresee free will XX% dual good mid-single-digit strong a converting we into I into adjusted and operating expanding profitability while margin CSG be cash laser-focused growth free can XXXX both guidance flow. Further, This on flow remaining profitability of highlights continuously measured profitability details generation. percentage improving

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

to aim combination operating even with as revenue scale line more. from XXXX This year-end expand billion scale midpoint The growing implies range. the shared, and operating growth consistently top in deals midpoint We long-term to or rate M&A by deliver a to of revenue growth X.X% organic to our sales good our aspires to this As disciplined bottom than and growing I growth, add line revenue come disciplined CSG our organic moves. organic accelerating revenue year-over-year growth. range, we that by leverage of a of guidance XXXX X% will X% any above closed, inorganic growth $X.X with combined revenue striving be then at just the faster, faster with

helping health world. customers strategic retail, #X for provider industry make providing the faster the services, the money third be technology is and of our by in government, service finally, imperative to providers Our financial platforms more. we verticals digital value-added technology more choice SaaS we global by plan diversify to more communications growth revenue And like even and big in win care, as most

X, in billion growth, resulting that Moving XXXX. our our On we against objectives year best can $X.XXX to result nearly reported in delivered in growth, record revenue with X all excellent setting strategic X.X% XXXX, we a of see year-over-year years. Slide you revenue XX full results in

organic this deliver to us growth M&A aspire reinforce M&A the margins thesis put a on cash CSG's inherent point, creating and markets I recurring to the sheet the we synergies gain we growth. strategic believe generate expand to that billion in CSG and we On acquisition which with $X.X CSG the an have paying SaaS and our $XXX to generation long the that investment. million X, the growth XXXX. in right to and and value extracting that revenue, was we from and and of the profitable team. in strong over in or compete EPS ASG's our where sheet accelerating healthy premium to exceeds close. aspire Team key expected model that implies XXXX, principle business term, XXXX for greater medium non-GAAP want to added of will revenue operating attractive our scale shareholder revenue annual scale Slide revenue price the by high make we disciplined Board balance investment Directors meets right-hand By over CSG expanding management side last recurring leverage balance use operating each We On our strong for

our completed at from a Turning had in good technology to the choice for goal success of be million Charter. of In to of XXXX, XX Slide providers service the first platform globally. X. customers our conversion competitor's provider #X We communication half we

and several customers. in and not and but it's on been basis. existing customers, We have counts us. American long-term as Comcast a reiterating with that per combined results very at our and XXXX We related small distinction cable with and growth. subscribers we nearly like the big year-end XX reminder, This Comcast through weeks our million over cable there relationship subscriber XXXX, million run of last seem QX losses have Comcast CSG's on at and broadband North headlines to impact customer both XX of across have Charter nuance, business is broadband And It's subscriber all subscribers know so minor serve Charter may a respectively. Charter a changes worth over for a that a do contracts several meaningful

time grew revenue existing growth of verticals. parts our our X in X% XXXX. even around in sales It noted into customers, our should in diversification our improving than big revenue our and other be winning Charter continued at last our less revenue business, of faster with exciting to revenue X customers our many deals And is grew and world revenue of this all decades. nicely to Comcast new and dropped from the diversifying our total business year revenue also expansion CSG's a big, industry faster for concentration growth success combined as first the industry-leading that logo these the the CSG testament year-over-year largest at success and in customers in XX%

an our BSS broadband stack to their new the wins existing front, customers agile cutting-edge and with transform business to was simplify On solutions. CSG cable selected Team digitally processes

we of XX-plus part with and extended expanded customer. relationship win, year our this important this As

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

additional wireless is have we XX period, existing wins paying added years, In fact, an and and over sales our our business the our exciting Over last XX off extending strategy logo that customers. cable, time. of business X globally telecom expanded big with new

we Specifically, into expanded unified of Team platform. with XXXX, in BSS modern operators to was top X this in customer's Saudi Arabia. fragmented consolidate telecom CSG the solutions our engagement trusted legacy a

solution improve will new and efficiency reduce BSS enhance to complexity, time market this product of Our offers customer's their operations. business the with

in our operator quarter, the first relationship the a Latin we During telecom America leading and with also expanded Caribbean.

with now helping are engagement We business our needs. digital customer this

help is its CSG across will power expanding enterprise the customers with of Amazon their digital future This an cloud the its PLDT solution transform to bring operates. XXXX, latest fully countries its dozens and partnership of environment is a customer environment. unit. announced wireless Web business it for cloud-based And us experience this experience, into their this operator. of customer Our and embraces Services largest example choice. of in reduce X-decade Plus one wireless new PLDT, it serving in the we its the costs particularly deal standardize the the with Philippines' in which fantastic as QX integrated in

XXXX. customer delivering business, With growth. across to sustainable importantly, great project of wireless the experiences CSG's highlights mobile one new CSG this was within solution, in deal CSG the are million loyalty the Singapore. Airtel drives minimize leading business to to in primed Also position announce pipeline we a their completion subscribers market of and we logo processes XX won sales we management close logo And revenue money that in streamline transformation and Africa, telecom BSS mobile selected provider our July, countries in leading to across solutions And strong service telecommunications digital with that a strength carriers time our new global while and In main sales will CSG Africa. costs fall, a more we digital as Africa with the stack. competitor. modernize have unified market BXB is Airtel announced of to exciting in well its XXX replacing win the BSS shorten

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

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

During the management States. year, company with won expansion the is largest Marinas, a contract Harbor we Safe marina United in good the which

Specifically, how products digital Marinas including with their finding another example cases This Harbor experience verticals. is new of is go-to-market CSG is multiple suite of supporting operations, Team Safe use offerings. industry digital across our customer

supporting nation's X,XXX health of firms X Health, more NRC performance care with than was win nice improvement the organizations. Another largest

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

contract won the engagement support of in good This industry. significantly expands for private service X leading deal our business Further, utilities utility the world's experience footprint firms. We customer with our technology a customer various municipal expanded year, provider with bundled also we and the during a initiatives. to utility

in CSG's solutions are operates. of operating provide the AI-driven company brands, is SaaS in We how customer example CX channel their capabilities save excellent improved exciting this an digital self-service to and digital AI-powered experience country our platform CX This big where customer helps costs. voice deploying every

the retail, financial about and Ascendon new APAC we business one sold the customer What product large time management, insurance won funds operations marks And multiple fantastic ascended first truly with in of through our in and financial institution. across this business is we've the provides finally, of variety fourth banking, This including SaaS a institutional banks with services, brokerage a services. is largest monetization countries. deal quarter, phenomenal deal a it

will be decreased their pricing errors, digitally we Ascendon product. to platform. leakage, billing CSG's improve transforming and as fragmented mitigate transform and revenue into CSG with experience services billing help their we significantly Specifically, a new employee their unified and Ascendon will by powered and systems solution customer the time products BSS minimize market

growth growth We In record revenue with revenue in XXXX market, double-digit closed a the business with part our is a a payments merchants we strong at organic or payments award-winning growth, testament to partners, provide served which active payment of and from merchants solutions active XX,XXX the to now the industry-leading this our end we which platform. of integrated ISV increase XXX,XXX XXXX. represents XX,XXX XX% SaaS year-over-year

Our processing credit solutions verticals. are industry customers need a and recurring of critical to a card payment serving gateway capabilities range revenue who payment wide

we XXXX We growth we to big even to a have and chance accelerate see a our this beyond. for revenue in organic faster for continue runway believe and business growth good

up put, wrap I turning Simply XXXX. it will Slide on before in over to results delivered X Hai. record-setting CSG

fantastic customer in, win to quarter continue We new quarter logos out.

the solve some brands their are business pressing SaaS world challenges. most innovate AI-driven big buying continue solutions of around all to with that We industry-leading to

our of with our coming government. revenue tech care, to industry flow health to XX% consistently non-GAAP as diversify more efficiently run demonstrate and faster-growing verticals retail, from cash business free to financial business big our commitment like and we services, we margins And operating continue adjusted generation. improve We continue

ahead still are message breakthroughs key stakeholders CSG's days to our best and of our are biggest So clear: to X employees, us.

you. global dream demanding talent dreaming it for reality. to We from is customers, will on big as keep The whatever CSG turn even takes our and more into do collective we here giant

you've To to CSG's Board for industry We generation will easier and do trust getting governance of with with technology-related any revenue We hold But over cash started. turn you thank Hai. and business your growth, our operating our is your improved and CSG. recurring than more challenges. toughest of Faster from will continued focused that shareholders, are dedicated expected solving always transformation vertical management leverage, I just in being good ourselves and business it do while we high this will execution us. accountable with to flow competitors exciting free With diversification. to Directors that, it to the team and integrity,

Hai Tran

Thanks, Brian.

Let's our key conclusions. represents XXXX growth. and generated it walk $X.XXX which then we with Slide X.X% wrap year-over-year up XX, results, I'll financial through on billion of some Starting revenue.

and was year, revenue For CSG's of continued of CSG the growth primarily revenue solutions, experience management attributed in including our the increased volumes. the increase strong the growth customer conversion accounts year-over-year onto to solutions solution. digital in payments customer

some the of XXXX subscribers long-term of QX Charter. in moving deals XXXX earnings of to uplift off rate our of When of our organic items, And from a of on we XXXX. competitor QX mentioned license-oriented QX growth certain X% revenue recognized got revenue we our end been at growth the have would into call, to from in the towards excluding was QX growth of timing As top we these revenue converting the range certain both year-over-year X%. related

Our adjusted to XXXX as in operating prior compared or $XXX of income operating the XX.X% margin $XXX million or million, non-GAAP non-GAAP was XX.X% year.

The full non-GAAP percentage margin and year was period for and higher growth non-GAAP in adjusted income income operating profitability. driven revenue growth the improved by operating

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

in adverse was repurchases, the to and operating partially year-over-year mainly a our movements. prior higher rate non-GAAP due and expense increase in share foreign as EPS by interest to increase offset $X.XX, EPS income lesser Lastly, higher XXXX year. X.X% compared a $X.XX to is currency non-GAAP degree, The

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

flow Further, year. to we $XX XXXX free Our in million favorable $XXX of $XXX The the had compared primary driver of was non-GAAP million flow this generated operations flow flow from million was performance increased as XXXX. $XX capital compared cash in cash cash prior million free working XXXX of in cash as to changes.

million collection. in team up driving record. committed cash intensity performance on is want regarding improvement, to performance increased generated with strongest our rapidly The reiterate management free receivable to of them we free accounts performance. QX, primary our enhanced cash flow then opportunities I positive of which represents owning that capital this including and quarterly to management identifying for Specifically, items, of transparently this working $XX flow, driver

are As and leadership performance we those starting fruit cash the action address flow to that our bear CSG have specific XXXX our to implemented non-GAAP the was free we to not team previously challenges. up mentioned, in of the expectations,

expectations profitability half operating XXXX, strong again, our Similarly, when simply, our see initiatives of QX create our operating ways CSG financial needed shareholders XXXX was with in XX.X%. below our we implement margin operating first we the which improvement coming shareholder more nimbly at margin find in to aggressively when quickly enhance of benefit the management continues Put value. in implemented performance, order will our to in to and and XXXX,

Moving convertible to our our September. interest benefits, a rate, on, balance plus debt revolver price freeing approximately executed and successful debt including fixed giving equity $XX.X. multiple shareholders up deal with reaches of dilution sheet, respect floating and our lowering rate M&A in for very until experience future sheet mix balance equity deal delivered we share a better our who no our will This

of XX, XXXX, X.Xx $XXX million and million along and million and quarter debt debt with X.XXX% we As repaid net at of $XXX leverage debt $XXX net a with with million results EBITDA. cash reminder, in a adjusted at of our sits revolver. ratio equivalents. That, cash coupon the Further, our on fourth ended our we December debt $XXX raised convertible outstanding

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

our in under repurchase program. repurchased we million stock addition, In during XXXX $XXX stock

top of from our our fees XXXX Turning organic will expect Starting before guidance. from to impact $X.XX $XX billion million range I million. to the with to we the any $X.X and page, the billion $XXX range acquisition to out line, revenue transaction lay

revenue are of half we make second approximately expect half. our XX% year in our while full revenue XXXX generated to revenue. first XX% the We currently XX% forecasting up to our XX% of be to to

XXXX which few of of our As we profitability by generated highly customers. a onetime a enhanced QX profitable telecommunications revenue and from our licensing revenue, in was reminder, strong global

revenue expect we QX in comparisons As temporarily recur such, on and do quarter. year-over-year our the a not which revenue profitability will XXXX. basis this to for first distort of We

operating our to XX.X%, to from adjusted on also We adjusted to this XXXX percentage range non-GAAP expanding between XX% commitment guidance our operating consistently increase to guidance. from a expect We margin range which with margin Team XX.X% operating the non-GAAP profitability. improved XX% range demonstrates our original believe leverage represents meaningful CSG

On XX for on approximately of non-GAAP a the based next $X.XX $X.XX between million the and we EPS our approximately non-GAAP count range XX% to anticipate metric, a shares year. tax share to of rate

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

our pipeline business. to session. disciplined I'll and consistent CSG shareholders serve We capital capital. base. sales prioritize including our of include continuous expenditures With a over key strong cornerstones up, expect with facilitate to we across accelerating of relentlessly well. we use a issue adherence We allocation to growth, operator framework power the the continue to positioned risk a work customer with and combined our revenue is and the we Additionally, to to we the and the the Wrapping come of will and leverage and of $XX how innovation, how manage distribution recurring integrating are learning to AI acquisitions. value-adding in $XX capital stay and diversifying believe in million disciplined closing will between it this remain make resources every CSG the question-and-answer which well million. investment approach, may turn transformative revenue committed with that, high-quality the

Operator

of looks Blair. Nolan the from [Operator like comes Instructions] question Maggie William It line our with first

Margaret Nolan

ability you is part goals? basis the really vertical or in you base think your diversification highlighted further on achieve to further your the organic over the as the to a well, have Or in diversification case medium-term X and significant last important about of are you acquisitions as that What you've an so. past diversify here? confidence able So years been from

Brian Shepherd

I love question. the

bank even in other and could point, that that on you and continue And we're solution game growth. seeing. as acquisitions other think strong And grow both in parts continue can are wins business, to should see double-digit payments for space growth, top CX everything will continuing quote revenue nicely your coming verticals AI-driven report to strong The that the from we good digital revenue we for the bookings, do our confident to that we also just Ascendon organic the consistent business and digital that contribute monetization and there attractive we and business. should into verticals. we quarters to XX% to continue new provider, announced organically. leaders order I that our which and mean we the cloud-based of price we the a still see diversify of sales financial disciplined, both will We payment that coming CX see in be organic also logo strong do these our growth the highly growth layer the the in continue one of the faster American in grow the APAC, with additional years Digital with the changer North new on accretive service win large the a be the grow first They'll to to nicely. our that is business is platform the the faster-growing

Margaret Nolan

of of quarter that would on some factors kind basis look the like can. get the end, comments, year, for mentioned the high gave And helpful. what think low what of operating margin on would range about of end as you in company the you talk you puts frame you to it's in then Hai the margin the you the That's takes gave it context of and the particularly your remarks can versus a that if in really the year, the and maybe your the about quarterly range some for revenue through nonrecurring first

Hai Tran

in progress over Maggie. well Sure, gave, margins as towards delivering our committed both give We're we the it revenue expanding to those hopefully, think guidance Yes. that our on confidence as our One, I shows growing we continuing numbers. time.

I going has mix. It's think our versus think, profile. pretty to that that is less the terms something though, at creating bit expenses drive a our disciplined of a to growth. to mix a to spoken It's when do and in is going we've effectively low of past. quite got to the intentional with a of that to about that lot operating commitment die the in we I've revenue than leverage, grow margin and are that around But rate plan ensure the

Brian Shepherd

Maybe only spread. the quarterly thing a about little add, bit I mentioned you would

Hai's profitability the a a with half. bit the we higher you above you'll like QX half traditional historical and profitability sometimes will in quarters. a but more XX%, for with stronger, revenue what QX might spread, have even second little you mix, seen see, with XX% see You the CSG in remarks, a little X in growth, strong Therefore, all see as more more is expect to spread, you heard little in XX% XX% Maggie, a the first and then

Operator

And with Matthew next comes Harrigan Benchmark. question our from

Matthew Harrigan

front-loaded comparison. But the initiatives. the margin. more internationally dampen that QX how really Thanks should revenues you QX, might licensing the how all information on very we anomaly precisely for mundane, and on sort you encouraging -- how I year-over-year of, outlook the on strategic Can year's talked of being that last difficult quantify much and has guess, about comparisons, and

Hai Tran

question. for Yes, the Matt, thanks

But been the have and of impact, So in roughly last we throughout revenue. last QX QX, we did as about a impact hence, And we mid-XX had couple excluded if would that year, we've they highlighted benefit nonrecurring a year. effective licenses last so. the in the year, from year, nature of are our were strong very $XX margin licensing of if those the margin think or QX in XX.X% about million you deals

Operator

comes next & Sidoti with of line question Our Greg the Burns from Company.

Gregory Burns

right as concern was it's there know But think net growing, with the even CSG. penetration. story, you subs though are wireless least now. core that is at when for Fixed really cable understood so broadband about cutting, you I as I said that's that a of and the not operators growing far think So I big was good

subscribers the I'm revenue competitive traditional why a maybe American broadband businesses their continue threat where So diversify can understand are to And to if don't you is areas grow consider beyond solutions risk? you your cable just to trying maybe anymore. there market to within are even as management revenue not there a North growing

Brian Shepherd

saw revenue. be were in a couple on we growth overall maybe this. a give the points there's there our in and growth the headwinds is we there news is overreaction our the from one. saw even tiered big throughout X% of some the might is believe remember me pricing Data At some X why to fairly broadband a headwinds point data corporate first grow level, very as would XXXX, part year-over-year, on point throughout X with we one, there number that and of some those that XXXX of in the been customers good of just even to Let market. Point some significant

subs North if why much subscribers incremental million people that ask, impact those top anticipated modeled So lot tends on a million we XX million be is some at point, as serve might are why American see by smaller than XX and the of Comcast we are those XX even price customer, is didn't when across Therefore, some on or Charter. Charter, we more players. almost at priced at -- talked, subscribers a to which converted lower there we you pickup broadband, of be even some it

all one can response tend greater underestimate several others. there to maybe nice bring fourth, of done leaders big these We're a face to cable years. value the grow telecom. them of our global customers. to a not picked We've players. in some point industry just a we've mission-critical. like land our they mass, We just other then areas the if decades. trying and coming Charter all last competitive We sizable footprint done consistently served pretty areas believe these is fifth And is win and up Comcast, of over fastest-growing seen North for lot And relentlessly American like headwinds in well just of tend we we in quarters, we've we've even the X-plus in to the to customers, continue of Third, job is and of

So multiple in America serve the world. we players and around North also

that mean guidance is of we those doesn't it like XXXX X.X% So of the headwinds there's midpoint growth. in storm not XXXX, it saw you grew well at X.X%. some us extremely our even through clouds. in And in But

day. every take go and granted. don't earn it we So it We for out

Operator

the our from with question And Notter of comes line next George Jefferies.

George Notter

AI guys going guess I that's was the there Obviously, and are anything curious about products just of I lots thinking is with tell about us making you explainer about product. with bit Bill I you're progress was into in marketplace. you across a Bill Explainer. the the new last new And seeing What again, or X months? can different the then, progress products,

Brian Shepherd

we on only not and mission-critical we be -- have software, just in got constantly flawless mean, I invest execution. enterprise keep lights our try the got to We've innovation. in to we

meaningful cable and early is investment that in and good won a in power AI. explainer.ai. see value small, but both areas matter already bring how This most We've deployed quickly. a important traction business. have in solution launched announced can relatively still, shows made deals, can a actually be weeks. of a of it in of the so we sold couple you The our We global digital Bill telco. a And we CX

applicability also cable even so telecom. economies more and other outside verticals, And see of in we subscription industry

payments business. the fraud things our really we speed like in we're Fraud and biggest in reduce to most of we're going is merchants super excited merchants still of also the in that a that on about in space. X one lot leveraging we the would but where say of early days We're AI building that of digital focus risk in pipeline. invest CX help. It's new onboarding So what's and profile, the the terms is. on. I sales areas

our to cable roll-off, customers make in and you just customers promotion easier monetization what cross-sell, our back predict we to doing core to calls want it the leverage that to the merchants they media nano deal and to able the service, downgrade reduce the have. to telecom way to is that lot part value with then like opportunities bring. And be help working data it their around that micro with of want when we're they expand possession to with sites upgrade, center data call the explainer, to Bill come kind make if the the So new BSS all and a sites of solutions easier business, payments some collect great

innovation. R&D. revenue of we're seeing So little our spend We love on over what a the on XX%

big So and market a testing that part model. customers is the innovation and our of business with co-creating in

Operator

And Rosenbaum the of our question Shlomo with next line Stifel. comes from

Unknown Analyst

an in on you're This Shlomo. there. what Could for front? M&A consider attractive is what provide -- more seeing the And with line general assets you valuations you're you now? commentary on on just coming seeing update Adam with

Brian Shepherd

degree I We line looking what core companies is you flow. spinouts market smaller in that better can half it's be be deals We yes, much back improve company of XXXX, what founders, we think But always much What the our that are And in at them. think, in maybe There's the going just -- than than more with are work work working constantly We the to maybe with that. some we've assets, separation, we found, partners. kind deal work to we of you've done. of in not be that on to would of with and we though, got larger size, seeing with be XXXX. definitely sellers. buyers saw saw between there general,

do telecom, portfolio from how deal run for expand cable we even payments, So recurring scale the looking monetization our CX, of revenue constantly gamut we mid financial small, kind and with capability around size at larger services. and or

in post So actually cost do acquisition. can laser-focused pay a to attractive revenue pretty and price we synergies an pre-synergy basis of how even on terms be tend better and on we

announcing we're be And we might seeing. what tuned what on Stay like so we in quarters.

Operator

[Operator the line of Chokshi Markets. Instructions] It looks like our next Capital Nehal with question from Northland comes

Nehal Chokshi

on Nice by free cash the is results, guidance? 'XX free that chance -- impacting calendar any flow flow especially your cash

Hai Tran

guidance the midpoint of strong, guidance No. I very for our million. with XXXX increased our $XXX right? saw We remains you in mean as we

highlighted And just in opportunities So got my just done it's after go prepared has we similar how to a time. to well, got performance I after improve over after nice team to continue remarks, the progress. our profitability we sequential particularly as and we'll

Nehal Chokshi

And here $X.X the as it M&A, organically? to my hit of other goal you question do billion see potentially is that potential outside plausible quick

Brian Shepherd

to question. think alone be not would XXXX, love the in love have that talked of this we've the reality put The stage, case. I That's I CSG incremental a period we stock would most a to We're That's they ago, tracked not few executive revenue, built the our organic have that our time. It's organic what maybe seen committed love of shy just $XX million about, up at I this though. longer over years have into compensation. growth. what is, of you've from year it. seen CSG

would said, better we thing where money standpoint, organic, would digit where plan or smart, disciplined on mid-single thing, are acquisitions on. $X.X our do we, marrying get our That's to planning billion So no. that going and this to -- to a we this from is grow consistently mouth

Operator

line And comes Cantor of from our question next Brett Fitzgerald. with Knoblauch the

Brett Knoblauch

Maybe Or start, from Is standpoint you X you on nicely grew what guide what quarter. year. the that your on from growth something expect largest that year them? your to to for for very current the They are from this Congrats full continue? customers expecting based XXXX. is a in

Brian Shepherd

of we at on performance higher better, or -- across say X% X.X%. out that, -- midpoint year, be committed we would our to of That's we're other than don't is midpoint break full least at the X% expect or we're a in business the Yes. saying to X% of segments record to to good in terms

CX growth as the talk and there portfolio could to be and the in growth. our big But beyond that's double-digit exciting where we'll also of we think our of We constant payments Yes, strong don't industry then growth we why one drive said, of and there there that's diversification that about we effect where break think we in revenue that. But that's be the out We We all so could X. much be That be. customers. and expect teams. of could react our diversification we think our story. business do parts plan,

it Let's out. plays see how

Brett Knoblauch

double segments? Perfect. a give maybe any Is more becoming smaller digits. out continuously you segments. on And there to segue Charter of my bit the and grow us continue question growth a good that's total on on percentage plan payments color breaking second guys With higher the a and Comcast for to

Hai Tran

constantly. that Yes. of I it's we something mean think kind evaluate I

We're is break in it makes scale, future, it us something a is to yet, think quite point certain get there out as segments. really that to the that them for when explore evaluate. we I opportunity constantly at separate some those businesses sense but not to it

Operator

next Michael our line And Fargo. Berg question comes of with from the Wells

Michael Berg

guess the driving there? Comcast cable we segment subscriber think earlier QX. outcomes at what back numbers in on the declined time. math down slightly like looks percentage script, I and in broadband QX as to it just the then flat to should about the specifically, And correct, X X% more said X my looking X% go QX. my the to after was given I are call question in in and you assuming what about wanted year-over-year

Brian Shepherd

Yes, I a there's think things. of couple

Let's just check the data points.

combined revenue from our year-over-year. If some the come grew would A you subscriber that about it big X of from that we X% did. conversions look the of at majority have

you that a have So Charter Comcast you seen, give you bit. take. neutralize up like would out, flattish, or kind said, of little

subscriber a into of would of we counts. impacts would building combination the be we do, some additional some that so the of are the saw that services And already

there's CSG. if that think I and additional headroom kind win face we're on more been with to it the would some to on of competitive that, challenges, our do even have how they how do is, their on respond nicely. offers. to they Any main we're those to and our them a of able great in market. respond continue think grow to other we and digital outsized CX, we'll perform They've they a, We've that is focused be could there's monetization, grow some in impact facing. lot thing through some headwinds, doesn't So clarification what B, of that customers. with They've land the payments highlighting we helpful. these help help the passed. to them and of better we be may great mass challenges dynamics our got homes see an some And And got

Hai Tran

I highlight what you think only is I'd the said, Yes, thing Brian.

to some fluctuations If do you ancillary. be there's at going look do because always quarter-to-quarter, some we

and you're and Comcast seeing. do drive we ancillary provide what's the both that's services that to to Charter, So fluctuations some going

Operator

Our line of question Benchmark. Harrigan from the with comes today final Matt

Matthew Harrigan

broad seeing, of a consumer has prism AI. also by planning, enhanced the consumer. What how see economic are probably have there? only obviously global the conditions it's about in [indiscernible] especially corporate all the AI, on you particularly that's sensitivity, genre any moderated? activity with in Your but U.S. and good the right now is Europe, you're the affecting thoughts Or geopolitical the you it And you just Or on the economic that uncertainty, has do with do same?

Hai Tran

back that that of mean, concerns gone was think and We some keeps forth, there I it's still pipeline terms yet. seeing, But right? has the bit obviously coming in building. really down I broad very Yes. recession little side. slowed the in horizon, see on a strong It it economic that our a hasn't on about we're his think to around I'll that back some has gone Brian anxiety thoughts or trends opportunities I cycles. AI the comment ask and come a and

the everybody by those through of is is how through global on focus some them focused industry see of economy, do ourselves on given dynamics a the fact, to I play that out things experience This many that trend organization. our year. however, the In and to like something and is that on consistent differentiate priority the a across pipeline And itself hyper is robust verticals those help that is from of on a as we will, within very is said, partners we message ourselves for think really base, competition focusing regardless do for customer opportunities the our us. the dimension the engaging a customer that need think, X building CX. With the continue of

Brian Shepherd

worse. I Yes. get throughout would I Maybe some seen I've haven't that seen I that better. that, think is companies the necessarily to XXXX. I most thing nervousness seen Matt, that saw only haven't add get --

I landing? think Is global with there go is looking companies are a the economic a higher landing? there situation. political softer at, things bump just Do

I of our what's in in faster, kind way. one talked if both and we're X customers most X, that and us Hai going can help over we keep revenue think what investment we things companies around us solutions sides. the on we that's have So you term sales pleased talked pipeline And you us with X, And the help solutions again, drive about to revenue our in cash hearing we make What and near an to growth that or we've see as our One, cost are CX ring over savings that preparing quarters. digital of for register, important. about, lower-cost the a the either been bring in before. efficiency business, better X, can serve

this accelerated above the keep long them fueling we out able we we're revenue, staying on of because improve doing or that's that, growth. cut line experience business. to either we're costs far, as a So help their as And customer of take think lot revenue

that's have kind not on but sure I'm So the what seeing. best your we're question, crystal we of ball

Operator

over thank you Matt. like all questions to remarks. call to turn is back right. for that closing Brian, floor Shepherd Brian had for yours. And I the would today. All the now Thanks,

Brian Shepherd

about We're mirror, XXXX but everyone. in results joining record-setting for the rearview the Thanks is excited over.

got team that, to to put into got out. it. guidance is going team against fully deliver do. this work is year. upper end We month this do the laser-focused. expect the to We're after get midpoint Now we've we We And to already of X just but to

business all. the and the in going doing So thanks Thank for continue right the way We're momentum CSG. of joining. you commitment to

CSG Systems International (CSGS) 7 Feb 242023 Q4 Earnings call transcript