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| Statement |
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| CSG was selected to modernize their B2B BSS stack and importantly, this deal highlights the strength of CSG solutions as we are replacing our main competitor |
| Team CSG finished a record-setting 2023 with a strong fourth quarter |
| We expect CX and payments to be strong double-digit growth |
| And the team has done particularly well, as I highlighted in my prepared remarks, we just got after just similar to how we got after profitability and we’ll continue to go after opportunities to improve our performance over time |
| Our full year non-GAAP adjusted operating margin was 17.2%, which is a significant improvement over the 16.6% we reported in 2022 proving our ability and our commitment to consistently expand CSG’s operating leverage with disciplined execution |
| Another highlight of the year was our strong 2023 free cash flow performance, especially during Q4 |
| I mean as you saw in our guidance for 2024 remains very strong, right? We increased our guidance with the midpoint of $115 million |
| At the end of the day, our faster revenue growth is fueled by strong ongoing market demand for CSG’s industry-leading SaaS products and good sales performance across all areas of our business |
| CSG’s sales pipeline is large and healthy as we win and wow big new customers in a wide variety of faster growth industry verticals |
| But in general, yes, much more in line than what we saw in the back half of 2022, definitely much better than what we saw in 2023 |
| At CSG, we believe that good people and high-integrity companies can and should finish first |
| And then if you come all the way back to kind of our core monetization BSS part of the business, working with our telecom media cable customers to leverage the data that is in their possession to be able to make it easier to predict what customers want and when they want upgrade, downgrade service, cross-sell, deal with promotion roll-off, reduce calls to the call center like the Bill Explainer, great opportunities to just expand the value that we bring |
| We still see a very strong pipeline building, in fact, a very robust pipeline that is building for us |
| We see good traction both in cable, global telco |
| Third, we’ve done a nice job of just trying to relentlessly bring greater value to all of our big North American cable customers |
| Data point number one, even as there has been some headwinds with some of our customers on the broadband growth throughout 2023, we saw very good growth from overall revenue |
| But I think the story, at least as far as I understood with the cable operators was that even though there was core cutting, broadband is growing and net subs are growing, so that’s good for CSG |
| This marks our 11th consecutive annual increase and underpins our dedication to a friendly shareholder return policy |
| And our 2024 guidance should prove that we see CSG’s strong business momentum continuing into the new year |
| And that’s one of the things that we’ve been pleased about with our sales pipeline and the solutions we have |
| Further, we foresee profitability as measured by our adjusted operating margin percentage remaining strong with a range of 17% to 17.4% |
| This highlights team CSG’s dual commitment to both accelerate organic revenue growth in the mid-single-digit range, while continuously expanding our profitability and free cash flow generation |
| I will go into more details on our full year 2024 guidance outlook, but investors can be confident that CSG leadership team is laser-focused on turning good revenue growth into strong profitability and then converting that good profitability into constantly improving free cash flow |
| As we talked before, so far, we’re staying above the cut line, because we’re either able to help them on revenue, improve customer experience or take costs out of their business |
| As I just shared, CSG aspires to deliver long-term organic revenue growth in the 2% to 6% range, striving to consistently be at or above the midpoint of this range |
| One, I think we, the guidance we gave, hopefully it shows our confidence in continuing that progress towards growing both our revenue as well as expanding our margins over time |
| We aim to add operating scale and expand our operating leverage by growing revenue to $1.5 billion by year-end 2025, with bottom line growing as faster, faster than top line growth |
| This scale will come from a combination of good organic revenue and sales growth, combined with disciplined inorganic moves |
| The win that we announced with a large financial service provider, one of the leaders in APAC, which is the first for our cloud-based Ascendon platform to be the digital monetization and the order price quote solution for that bank is also a game changer and will also contribute nicely to the organic growth |
| I mean we continue to report the strong double-digit revenue growth, the strong sales bookings, the good consistent new logo wins coming from both our AI-driven digital CX business and our North American payments business, and we see that continuing with everything that we see in the business |
| Statement |
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| We know there have been headlines over the last several weeks related to subscriber losses at several of our existing cable broadband customers |
| I think that there was obviously some concerns or some anxiety around a recession on the horizon that has come and it’s gone and it keeps coming back in cycles |
| Maybe the only thing I would add to that, Matt, is I think most companies saw some nervousness throughout 2023 |
| Looking at my numbers and assuming my percentages and math are correct, it looks like the broadband cable segment declined 4% year-over-year after about flat 1% in Q3 and then Comcast specifically was flat in Q3 and slightly down in Q4 |
| Yes, I mean, we try – we have mission-critical enterprise software, not only we got to keep the lights on and just be flawless in our execution |
| But sort of, I guess, mundane, on Q1, you talked about the difficult comparisons, licensing internationally and how that really has the anomaly of being very front-loaded on last year’s revenues and margin |
| As we have previously mentioned, our non-GAAP free cash flow performance in 2022 was not up to our expectations and we are starting to bear the fruit of the specific action that the CSG leadership team implemented to address those challenges |
| At the corporate level, we even saw our big two grow 5% year-over-year, and some of those headwinds were there in the first part and throughout 2023, would be point one |
| It hasn’t really slowed down our opportunities yet |
| So when you think about fixed wireless penetration, I know you said it’s not really that big of a concern right now |
| I haven’t seen that get worse |
| So it doesn’t mean that there is not some of those headwinds in storm clouds |
| While these risks reflect our best current judgment, they are subject to risks and uncertainties that could cause our actual results to differ materially |
| The reality is, I think at this stage, you’ve seen this year alone in 2023, CSG put up just shy of $80 million of organic incremental revenue, most that have tracked our stock over a longer period of time |
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