CSG Systems International Inc at Oppenheimer Technology, Internet & Communications Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : Great. And Brian, maybe you can talk about your background a little bit and why you took this huge responsibility on.

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : And obviously that's -- and how are you going to do that basically? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2021 / 7:45PM, CSGS.OQ - CSG Systems International Inc at Oppenheimer Technology, Internet & Communications Conference (Virtual)

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : Brian, you know --

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : And then I also cover Amdocs, which a lot of people think is your closest competitor. I guess from your perspective, can you describe the key differences between yourself and Amdocs both from, I guess, a customer perspective, a product perspective, and maybe more importantly just the core competency and cultural perspective? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2021 / 7:45PM, CSGS.OQ - CSG Systems International Inc at Oppenheimer Technology, Internet & Communications Conference (Virtual)

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : Yes. Actually, that's some really good color. So longer-term, you are really creating more of a technology platform. It seems like that should be a little easy to drive innovation and a little -- and frankly, a little bit higher margin return on invested capital over time. But yes, I just -- I guess a little color around driving the innovation and the longer-term margins versus then or just standalone.

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : But, Brian, Charter has done phenomenally well with improving operations. They are like the poster child, I think, of the right strategy and the right operational focus. Really good customer care, simplified pricing, simplified products, a lot of customer self-provisioning. How important of a partner

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : And is there much more opportunity even within Charter's cable business to sell them more products and services? And I guess related to that, are you helping them out with their wireless business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2021 / 7:45PM, CSGS.OQ - CSG Systems International Inc at Oppenheimer Technology, Internet & Communications Conference (Virtual)

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : But, Brian, what percentage of your revenue now comes from the telco world versus the cable world and other, the newer enterprise focus? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2021 / 7:45PM, CSGS.OQ - CSG Systems International Inc at Oppenheimer Technology, Internet & Communications Conference (Virtual)

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : Brian, with your platform strategy, we're starting to see a lot of new PaaS business models. And they are really leveraging infrastructure as a service, the cloud guys, and you are seeing more SaaS guys tie into these new PaaS. It sounds like you are going to be PaaS combined with SaaS a little bit, but where are you with building out this platform that -- do you have open APIs for the SaaS providers to tie into? Will you work on multi-clouds? Just a little bit more on the infrastructure side and the strategic focus of building this out.

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : So I have a bunch of questions here on the webcast. I will try to simplify them a little bit. But we know you have a relationship with Microsoft. Do you work with Azure and AWS, if need be? Do you work with those two different cloud providers for your infrastructure?

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : And then just a little bit more on the current revenue concentration. An investor has maybe some concerns that MSOs are shedding RGUs. Obviously video subs are down. Do you get impacted by that from a revenue perspective? And then related to that, what's your typical price escalators with your customers?

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : Great answer. One more here. Actually, a couple of really good questions here. What are the next few big contract opportunities out there? Yes. Are there big new customers you can win or new verticals that you can go after that are lumpy that you feel confident about, other than the Charter One that you talked about? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2021 / 7:45PM, CSGS.OQ - CSG Systems International Inc at Oppenheimer Technology, Internet & Communications Conference (Virtual)

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : So just on that, on the telco front, are you kind of -- are you mostly just getting telcos that are starting to outsource for the first time or are you displacing other people?

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : And those verticals, are you largely -- it's a question from an investor. Are you largely creating new products also that are innovative or new to these companies, or are you displacing existing companies?

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : And so, Brian, just to wrap up, I think we are getting close to time, although I will double-check. We started out talking about doubling the revenue, and obviously you are growing 6% now. Through acquisitions and investments, how long will it take you to double the revenue, do you think? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2021 / 7:45PM, CSGS.OQ - CSG Systems International Inc at Oppenheimer Technology, Internet & Communications Conference (Virtual)

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : Well, that's 14% revenue growth per year. I know it's somewhat organic, somewhat inorganic, which is great. And then the very last question you have here, I guess an investor thinks your stock is very inexpensive. You are at a 10% free cash flow yield. And to be honest, it's one of the least expensive in my universe at this point with your leverage. And we have other companies that are highly levered. That's separate issues, but that's a very attractive valuation frankly for the kinds of growth and the opportunity out there that we are talking about. I guess the question is what does it take to get the stock price moving?

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : And actually, Brian, we have five more minutes, and I will turn it over to Ed to ask a few more questions. I apologize losing track of time here at the end of the day.

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : We deal with this every day. We have some stocks that are undervalued and some that are overvalued. If we didn't have this, we wouldn't be in business.

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : Well, I'm glad I don't work in your corporate development team. Holy cow. They're putting in a lot of all-nighters and a lot of weekends.

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : Wow.

Question: Tim Horan - Oppenheimer & Co. Inc. - Analyst : Well, Brian, we couldn't be more excited about your business. We know you have a competitor out there, but I think there's a lot of room for --- well, you have many competitors, a lot of room for both of you to grow. We think this migration of the networks to the cloud, the migration to 5G, the convergence of wireless, wireline networks just creating a lot of turmoil in the industry. And clearly, the whole world needs a lot more broadband. They need much lower latency, better security, all the stuff that you can help carriers provide. And we think it's going to be a very exciting five years. And it sounds like you have a huge amount of energy and work ethic, and -- as we would expect somebody from McKinsey and other places that you've been so successful at to have. And we wish you all the luck in the world, and we hope to keep working together here.