CSG, the trusted partner to simplify the complexity of business transformation in the digital age, reported its results for the quarter ended March 31, 2021.
Total revenue registered $253.1 million and total non-GAAP adjusted revenue was $236.7 million. GAAP operating income was $31.4 million, or 12.4% of total revenue, while non-GAAP operating income registered $40.2 million, or 17.0% of non-GAAP adjusted revenue.
“CSG got off to a very good start in Q1 with revenue and adjusted revenue up 3.1% and 4.1% year-over-year, respectively, representing our best quarterly organic revenue growth results since Q3 2019,” said Brian Shepherd, president and chief executive officer of CSG.
“We believe these solid first quarter results show that we are building a strong CSG, one that puts customer success before our own ambitions. As a result, we are pleased to reconfirm our 2021 financial targets. Looking ahead, we remain well positioned to lengthen and strengthen our relationships with existing customers, accelerate our growth and diversify our revenue base.”
Results of operations
Total revenue for the first quarter of 2021 was $253.1 million, a 3.1% increase when compared to revenue of $245.6 million for the first quarter of 2020, and a 2.8% decrease when compared to revenue of $260.5 million for the fourth quarter of 2020. The sequential quarterly decrease can be mainly attributed to the higher level of revenue CSG typically experiences in the fourth quarter of the year from strong software and professional services revenue. The year-over-year increase in revenue can be mainly attributed to the continued growth of CSG’s revenue management solutions along with a strong quarter of professional services revenue.
GAAP operating income for the first quarter of 2021 was $31.4 million, or 12.4% of total revenue, compared to $33.2 million, or 13.5% of total revenue, for the first quarter of 2020, and $23.7 million, or 9.1% of total revenue, for the fourth quarter of 2020. GAAP operating income for the first quarter of 2020 benefited from a mark-to-market reduction in a compensation liability that resulted from the unexpected and steep decline in the stock market in that quarter, and fourth quarter of 2020 was negatively impacted by executive transition costs of $11.2 million.
GAAP EPS for the first quarter of 2021 was $0.61, as compared to $0.66 for the first quarter of 2020, and $0.41 for the fourth quarter of 2020, with the fourth quarter of 2020 GAAP EPS primarily due to lower operating income, discussed above.
Non-GAAP adjusted revenue for the first quarter of 2021 was $236.7 million, a 4.1% increase when compared to non-GAAP adjusted revenue of $227.3 million for the first quarter of 2020, and a 2.7% decrease when compared to $243.2 million for the fourth quarter of 2020. The fluctuations in non-GAAP adjusted revenue between periods are primarily due to the factors discussed above.