Slide 1: Fiscal Q4 2023 Earnings Presentation
Exhibit 99.2 Amdocs Limited NASDAQ: DOX Fiscal Q4 2023 Earnings Presentation November 7, 2023 Shuky Sheffer President & CEO Tamar Rapaport-Dagim CFO & COO
Slide 2: Forward-looking statements disclaimer
The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Amdocs Limited securities or in any securities of its affiliates or subsidiaries. Thi
Slide 3: Today's Speakers
Today’s Speakers Shuky Tamar Sheffer Rapaport-Dagim President & Chief Financial Officer & Chief Executive Officer Chief Operating Officer Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 3
Slide 4: Earnings call agenda
Earnings call agenda 01 Strategy & Business Performance Update Shuky Sheffer, President & Chief Executive Officer Financial Review & Outlook 02 Tamar Rapaport-Dagim, Chief Financial Officer & Chief Operating Officer 03 Q&A Information Security Level 0 – Public. © 2022 – Proprietary & Confidential In
Slide 5: Strategy and Business Performance Update
President & Chief Executive Officer Strategy and Business Performance Update Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 5
Slide 6: Thanks to employees, including those in Israel
to our talented and diverse group of global employees for a successful 2023 to our employees in Israel, who have shown tremendous resilience, dedication and commitment following the horrific attack of October 7 United together across the globe, we continue to provide seamless 24/7 service and suppor
Slide 7: FY23: record annual revenue, continued profitable growth & margin improvement
FY23: record annual revenue, continued profitable growth & margin improvement Non-GAAP Non-GAAP 12-month (1) Revenue operating (2) EPS backlog (2) margin 17.8% $5.91 $4,888m $4.15B (1) (2) Up 7.7% YoY +20bps YoY Up 4.5% YoY Up 11.5% YoY Record total revenue Improved profitability as Record backlog W
Slide 8: Fiscal Q4 & 2023 Operational Highlights
Fiscal Q4 & 2023 Operational Highlights Strong market recognition in FY2023 Best-in-class execution and operations North America: High rate of successful project deployment Continued progress Canada FY23 revenue up 6.7% YoY Europe: UK UK Record year of strong double-digit growth Italy Rest of world:
Slide 9: Progress in strategic domains (1/5)
Progress in strategic domains (1/5) Simplify and accelerate adoption of generative AI across the telecom industry Infusing Products Creating a GenAI Leveraging with GenAI Foundation Strategic Partners Horizon 1 Enhancing industry Deep telecom industry Building on Microsoft Disruptor flagship CES pro
Slide 10: Progress in strategic domains (2/5)
Progress in strategic domains (2/5) Accelerate the multi-year journey to the cloud Selected projects Business value Operation support services for Amdocs Flexible and cost-efficient infrastructure; Mexico applications to the public cloud unlock new business models Real-time rating and metering progr
Slide 11: Progress in strategic domains (3/5)
Progress in strategic domains (3/5) Creating seamless digital experiences by transforming IT operations for consumer and B2B customers Selected projects Business value Simplified & accelerated sales journey for Optus agents; Cloud-native B2B portfolio reduced order cancellation/fallout Monetization
Slide 12: Progress in strategic domains (4/5)
Progress in strategic domains (4/5) Next-generation solutions to unlock future market potential from true 5G standalone networks Amdocs currently has more than 20 cloud-based charging projects in production across a range of public, private, and hybrid environments, including at leading CSPs in Nort
Slide 13: Progress in strategic domains (5/5)
Progress in strategic domains (5/5) Delivering dynamic connected experiences with real-time, automated networks FY23 selected projects Business value Exceeded FCC commitments, reaching 70% of US population Support for DISH’s 5G Open RAN network Empower Colt customers and employees around the world D
Slide 14: Summarizing a successful fiscal 2023
Summarizing a successful fiscal 2023 across multiple dimensions Maintained market-high win rate Accelerated customer and revenue momentum in cloud Established technology and industry leadership in Generative-AI Superb execution and seamless mission-critical operations support Information Security Le
Slide 15: Current environment entering FY 2024
Current environment entering FY 2024 Large service addressable market, the size of which has significantly expanded Strategy to deliver innovation to our customers, so they can advance with cloud-based 5G and fiber networks, Generative AI, and improved consumer and B2B experiences Relatively resilie
Slide 16: FY24 Outlook
FY24 Outlook A B 1.0%-5.0% earning-to-cash flow YoY growth Free cash (1) conversion Revenue Reflects ~3% YoY revenue headwind flow attributable to reduced investment in legacy Expect to return majority of free system enhancement, among other factors cash flow to shareholders in year ahead Double-dig
Slide 17: Financial Review & Outlook
Chief Financial Officer & Chief Operating Officer Financial Review & Outlook Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 17
Slide 18: Q4 2023 Results
Q4 2023 Results Q4 2023 Revenue vs. Guidance $ Millions Q4 Revenue Above guidance midpoint $1,243 million (1) +6.5% YoY, +6.3% constant currency $1,243 $1,240 Above guidance midpoint ($1,220M - $1,260M) (2) Q4 Non-GAAP Operating Margin Original Q4F23 Q4F23A Guidance (midpoint) 17.8%, +20bps YoY Unch
Slide 19: Revenue and EPS growth
Cloud grew double- Revenue Growth (2) digits, exceeding 20% Y/Y% growth constant currency of total revenue for (1) (2) FY2021 & FY2022 are pro forma constant currency the first time 10.3% Initial guidance 7.0% Record year in North midpoint 7.7% America & Europe ~8% YoY Growth in Southeast Asia FY202
Slide 20: 12-Month Backlog
12-Month Backlog Record Quarterly 12-Month Backlog in Q4F23 12-month backlog growth has accelerated $ Billions year-over-year over the past several quarters as of $4.15 $4.14 $4.11 (1) (1) September 30, 2023 $4.09 ~ +4.5% YoY (1) YoY $3.97 (1) Q4F22 Q1F23 Q2F23 Q3F23 Q4F23 Leading Indicator 12-month
Slide 21: Managed Services Revenue
Managed Services Revenue: Fiscal Year to Date $ Millions $2,857 $2,755 Managed services arrangements support Managed Services business model resiliency with highly recurring revenue ~ +3.7% streams, multi-year YoY engagements and high renewal rates, and may also include of total revenue in large-sca
Slide 22: FY 2023 Free cash flow bridge
(2) FY 2023 Free cash flow bridge DSO’s 69 days Includes $20M restructuring payments -5 days YoY and -10 days QoQ not assumed in $700M DSO’s may fluctuate from quarter to quarter guidance ~$823 ~$124 * Unbilled receivables was higher than $698 Guidance: deferred revenue by $86 million, $700M aggrega
Slide 23: Dividend Growth and cash returned to shareholders
Dividend Growth Q4 2023 Cash Returned to Shareholders $ Millions Board authorized new quarterly dividend payment: Dividends, $52 47.9 cents, +10% 11th consecutive annual dividend increase Share repurchases, $155 New payment subject to shareholder approval at Amdocs annual meeting in ~$1.1B of aggreg
Slide 24: Revenue Growth
Revenue Growth (2) YoY% Growth Constant Currency (1) (2) FY21 and FY22 revenue is pro forma constant currency 5.2% 10.3% Expect 3.2% midpoint of (2) 7.7% Revenue growth of in FY2024E, 7.0% 1.2%-5.2% roughly half of which is organic YoY outlook Revenue growth of as reported, 2.4% 1.2% including an un
Slide 25: Quarterly Non-GAAP Operating Margin: FY2018 – FY2024E
(1) (2) Quarterly Non-GAAP Operating Margin: FY2018 – FY2024E $ Millions (1) FY2024E Non-GAAP Operating margin target range: 18.1%-18.7%, +60bps vs prior range 18.7% 18.1% (1) Non-GAAP operating margins from FY2020 to 17.8% FY2023 17.8% 17.5% 17.6% Expects profitability 17.5% in FY2024E, led by 17.2
Slide 26: Total Shareholder Return
(3)(4) Total Shareholder Return (2) Non-GAAP Diluted EPS Growth YoY % + Dividend Yield th 4 consecutive year (1) FY21 and FY22 non-GAAP EPS growth is presented pro forma of double-digit expected total shareholder returns* 14.1% 13.6% 11.7% Targeting non-GAAP EPS growth of in 12.0% FY2024E, the of wh
Slide 27: Committed to ESG
Committed to ESG Published 2022 - 2023 Climate commitment Announced our path to carbon neutrality for Corporate Social scope 1 and 2 emissions by 2040 Responsibility & ESG report Held second annual ESG webinar for analysts and investors presenting our CSR report, focusing on employee centricity, pro
Slide 28: Q&A
Q&A | GRE
Slide 29: Q1 and Full Year Fiscal 2024 Outlook
Q1 Fiscal 2024 Outlook $1,225 - $1,265 million Revenue GAAP EPS $1.18 - $1.26 (1) Non-GAAP EPS $1.53 - $1.59 Share Count 118 million Within annual target Effective Tax Rate (1) Non-GAAP range of 13.0%-17.0% Full Year Fiscal 2024 Outlook Firmly positioned to deliver Revenue growth 1.0% - 5.0% double-
Slide 30: Appendix Reconciliation Tables
Appendix Reconciliation Tables
Slide 31: Free cash flow reconciliation notes
(a) The amounts under Purchase of property and equipment, net” include proceeds from sale of property and equipment of $442 and $521 for the Fiscal years ended September 30, 2023 and 2022, respectively (b) Since Q12023, the Normalized Free Cash Flow is no longer applicable. Information Security Leve
Slide 32: Security Level –
Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2023 – Proprietary & Confidential Information of Amdocs 32 32 Confidential Information of Amdocs
Slide 33: Security Level –
Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2023 – Proprietary & Confidential Information of Amdocs 33 33 Confidential Information of Amdocs
Slide 34: Thank you!
Let's . make it amazing Thank you! ©: amdocs