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Investing.com -- CSG Systems International Inc. (NASDAQ:CSGS) reported better-than-expected first quarter results and raised its full-year guidance, sending shares up 2.9% in after-hours trading.
The customer engagement and payment solutions provider posted adjusted earnings per share of $1.14 for the quarter ended March 31, 2025, surpassing the analyst consensus of $1.02. Revenue came in at $299.5 million, beating estimates of $270.7 million and representing a 1.5% increase YoY.
CSG Systems raised its full-year 2025 outlook, now expecting adjusted EPS of $4.65-$4.90, up from its previous guidance of $4.55-$4.80 and above the consensus estimate of $4.67. The company maintained its revenue forecast of $1.21-1.25 billion, which remains above the analyst consensus of $1.136 billion.
"Team CSG’s strong first quarter results enabled us to raise our 2025 non-GAAP profitability and EPS guidance targets," said Brian Shepherd, President and CEO of CSG. "We grew revenue nicely at customers outside of communication service providers with a third of our revenue now coming from big, faster growing industry verticals providing a buffer against today’s macro-economic uncertainty."
The company reported a non-GAAP adjusted operating margin of 19.0% for Q1, up from 16.6% in the same quarter last year. CSG attributed the margin improvement to cost efficiency actions taken in 2024.
Cash flows from operations for the quarter were $11.5 million, with non-GAAP adjusted free cash flow of $7.1 million. The company declared a quarterly cash dividend of $0.32 per share and repurchased approximately 357,000 shares for $22 million during the quarter.
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