CSG Systems International, Inc. reported a revenue increase for the third quarter and the first nine months of 2024, with total revenue reaching $295.1 million for Q3 2024, a 2.9% rise from $286.9 million in Q3 2023. For the nine months ended September 30, 2024, revenue was $880.6 million, up 1.0% from $871.9 million in the same period of 2023. The growth was primarily driven by an increase in revenue from SaaS and related solutions, which amounted to $263.7 million in Q3 2024, compared to $250.8 million in Q3 2023, and $788.1 million for the nine months, up from $764.3 million year-over-year.
Operating income for Q3 2024 was $31.8 million, reflecting a slight decrease from $32.7 million in Q3 2023, while the operating margin decreased from 11.4% to 10.8%. For the nine-month period, operating income fell to $89.0 million from $99.1 million in 2023. Net income for Q3 2024 was $19.1 million, a modest increase from $18.7 million in Q3 2023, while net income for the nine months decreased to $52.4 million from $53.6 million in the prior year. Earnings per share (EPS) for Q3 2024 rose to $0.67 from $0.62 in Q3 2023, influenced by a lower effective tax rate and a reduced share count.
Total operating expenses increased to $263.3 million in Q3 2024 from $254.1 million in Q3 2023, with research and development (R&D) expenses rising 18.1% to $41.7 million. The company also incurred restructuring and reorganization charges of $2.9 million in Q3 2024, up from $1.2 million in Q3 2023, and $12.0 million for the nine months, compared to $8.4 million in the same period last year. A global workforce reduction of approximately 300 employees was noted during the nine months ended September 30, 2024.
CSG Systems made several strategic acquisitions, including a customer communication services business for $15 million and iCheckGateway.com, LLC for $17.6 million, both completed in 2024. The company also repurchased approximately 716,000 shares for $33.7 million during the nine months, a significant decrease from 1.99 million shares repurchased for $107 million in the same period of 2023. Cash and cash equivalents as of September 30, 2024, totaled $118.4 million, down from $186.3 million at the end of 2023.
The company continues to focus on its SaaS platform offerings, primarily serving the global communications market, while also expanding into retail, financial services, healthcare, and government sectors.