Bronin (for Michael Berg)'s questions to CSG Systems International Inc (CSGS) leadership • Q4 2024
Question
Bronin, on for Michael Berg, asked about the dynamics of CSG's revenue diversification journey and when to expect an acceleration in the percentage of revenue from other verticals. He also inquired about any structural weakness or changes in end-customer dynamics.
Answer
CEO Brian Shepherd emphasized that diversification is a result of a focused strategy to help brands simplify customer engagement, not a goal in itself. CFO Hai Tran added that while the trend is for other verticals to grow as a percentage of revenue, the growth can be 'choppy' because the core cable and telecom businesses are also growing. Shepherd concluded that he sees no structural weakness, noting that customers are focused on investments with clear, quick paybacks, which aligns with CSG's sales strategy.