Slide 1: Amdocs Fiscal Q3 2023 Earnings Presentation
Amdocs Limited NASDAQ: DOX Fiscal Q3 2023 Earnings Presentation August 2, 2023 Tamar Rapaport-Dagim CFO & COO Shuky Sheffer President & CEO Exhibit 99.2
Slide 2: Disclaimer
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 subsid
Slide 3: Today's Speakers
Today’s Speakers Shuky Sheffer President & Chief Executive Officer Tamar Rapaport-Dagim Chief Financial Officer & Chief Operating Officer
Slide 4: Earnings call agenda
Earnings call agenda Strategy & Business Performance Update Shuky Sheffer, President & Chief Executive Officer 1 2 Financial Review & Outlook Tamar Rapaport-Dagim, Chief Financial Officer & Chief Operating Officer 3 Q&A
Slide 5: Strategy and Business Performance Update
Strategy and Business Performance Update President & Chief Executive Officer Shuky Sheffer
Slide 6: Solid Q3 financial performance
Solid Q3 financial performance Record revenue & ongoing margin expansion Revenue (1) Up ~7%(1) YoY Above guidance midpoint on reported basis Record Non-GAAP operating margin(2) +20bps YoY, as we continue to realize operational efficiencies benefits 17.8% Non-GAAP EPS(2) Above guidance range, mainly
Slide 7: Q3 operational highlights
Q3 operational highlights Positive sales momentum Superb execution Continue to deliver high number of project milestones Continued cloud-related sales momentum Bell XL? Supporting digital transformation journeys 80m+ subscribers now live on our flagship suite What VF, should not be no name? Brazil C
Slide 8: Generative AI is a company priority
Generative AI is a company priority AI-powered products Software development life- cycle Efficiency Services innovation Corporate/ support functions Amdocs AmAIz Framework Announced our cutting-edge Gen AI framework Industry’s first enterprise-grade generative AI framework Carrier-grade architecture
Slide 9: Progress in strategic domains (1/4)
Progress in strategic domains (1/4) Continued sales momentum as we enable our customers to drive growth, improve cost-efficiency and provide an amazing experience to consumers and enterprises B2B customers Cloud Accelerate the multi-year journey to the public cloud Selected projects Business value F
Slide 10: Progress in strategic domains (2/4)
Progress in strategic domains (2/4) Enable our customers to drive growth, improve cost-efficiency and provide an amazing experience to consumers and enterprises B2B customers Spain Digital transformation Creating seamless digital experiences by transforming IT operations for consumer and B2B custome
Slide 11: Progress in strategic domains (3/4)
Progress in strategic domains (3/4) Enable our customers to drive growth, improve cost-efficiency and provide an amazing experience to consumers and enterprises B2B customers Selected projects Business value Simplify internet and device management; automate customer support for its 5G home internet
Slide 12: Progress in strategic domains (4/4)
Progress in strategic domains (4/4) Enable our customers to drive growth, improve cost-efficiency and provide an amazing experience to consumers and enterprises B2B customers Selected projects Business value Successful rollout of a comprehensive 5G network that now reaches over 70% of US population
Slide 13: Improved midpoint, and the 2nd guidance raise this year
Improved midpoint, and the 2nd guidance raise this year May-23 9%−13% YoY growth Fiscal 2023 Outlook We are positioned to deliver double-digit expected total shareholder returns(3) for the third straight year in 2023, including our dividend yield Constant currency. Assumes exchange rates in the curr
Slide 14: Financial Update & Outlook
Financial Update & Outlook Chief Financial Officer & Chief Operating Officer Tamar Rapaport-Dagim
Slide 15: Q3 FY2023 Financial Highlights
Q3 Revenue $1,236 million +6.5% YoY, +6.9% constant currency(1) Above guidance midpoint ($1,215M - $1,255M) Q3 Non-GAAP(2) Operating Margin 17.8%, +20bps YoY Unchanged. QoQ and within annual target range of 17.5% - 18.1% Q3 GAAP Diluted EPS $1.32 Above guidance range ($1.16 - $1.26) Q3 Non-GAAP(2) D
Slide 16: Gradually Improving Profitability
Gradually Improving Profitability Quarterly Non-GAAP(1) Operating Margin: Q1F20 – Q3F23 $ Millions 16.5% 17.2% 17.5% 17.8% 18.1% Achieved higher profitability in FY2023 Further measures planned to optimize investment and resource allocation Q4F23 restructuring charge of ~$50M - $60M anticipated Sust
Slide 17: 12-Month Backlog
(1) (1) (1) 12-Month Backlog ~$4.14B Record-high as of June 30, 2023 ~ +5% YoY Leading Indicator Roughly 80% 12-month backlog typically covers ~80% of forward 12-month revenue 12-month backlog growth has accelerated year-over-year over the past several quarters (1) Record Quarterly 12-Month Backlog
Slide 18: Managed Services
Managed Services ~$720M Best-ever Quarter ~58% of total revenue Managed Services Revenue: Fiscal Year to Date $ Millions Managed services arrangements support business model resiliency with highly recurring revenue streams, multi-year engagements and high renewal rates, and may also include large-sc
Slide 19: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Liquidity: Cash + Credit Facility $1.25 billion DSO’s 79 days -3 days YoY and +5 days QoQ DSO’s may fluctuate from quarter to quarter Ample liquidity including available $500M revolving credit facility Baa2 Moody’s Remain committed to maintaining our Investment grade credit
Slide 20: Disciplined Capital Allocation
Disciplined Capital Allocation Q3 2023 Cash Returned to Shareholders $ Millions ~$1.1B additional share repurchase authorization approved by board of directors, with no expiration date Up to ~$156M of existing share repurchase capacity remaining as of June 30 ~$1.26B remaining share repurchase autho
Slide 21: FY2023 Outlook
FY2023 Outlook Pro forma metrics exclude the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021. Expected total shareholder return assumes Non-GAAP EPS growth plus dividend yield (based on fiscal year end closing share price); FY2023E assumed 11.5% midpoin
Slide 22: Committed to ESG
Committed to ESG Starting 2024, Amdocs Park will be powered by renewable energy sources Standing together for equality - LGBTQ+ Friendly Employer Award Marking World Environment Day, with local events, including ~5,000 hours of Volunteering Global campaign to celebrate Pride month with events and a
Slide 23: Q&A
Q&A ~ a maker,
Slide 24: Q4 & FY2023 Outlook
Non-GAAP. See reconciliation tables in appendix Constant currency. Assumes exchange rates in the current period were unchanged from the prior period Q4 Fiscal 2023 Outlook Category Revenue $1,220 - $1,260 million GAAP EPS $0.67 - $0.81 Non-GAAP(1) EPS $1.38 - $1.44 Share Count 120 million Non-GAAP(1
Slide 25: Appendix Reconciliation Tables
Appendix Reconciliation Tables
Slide 26: Reconciliation Tables
Reconciliation Tables The amounts under "Purchase of property and equipment, net” include proceeds from sale of property and equipment of $380 and $521 for the nine months ended June 30, 2023 and 2022, respectively. Since Q12023, the Normalized Free Cash Flow is no longer applicable.
Slide 27: Reconciliation Tables
Reconciliation Tables AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP is) Amortization scquitons otpurechased ‘elated int Ean bncd tates assesand compensation measured at Tax Gasp ‘iter vexpeme"Yairvalue __Oter_eflct__Now-GAAP. Operating expenses: Asean develope @.0
Slide 28: Reconciliation Tables
Reconciliation Tables
Slide 29: Let's make it amazing. Thank you!
Let's . make it amazing Thank you! © amdocs