Slide 1: Fiscal Q2 2024 Earnings Presentation
Amdocs Limited NASDAQ: DOX Fiscal Q2 2024 Earnings Presentation May 8, 2024 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 President & Chief Executive Officer Chief Financial Officer & Chief Operating Officer 3 Information Security Level 0 – Public. © 2024 – Proprietary & Confidential Information of Amdocs
Slide 4: Earnings call agenda
Earnings call agenda 1 Strategy & business performance update Shuky Sheffer, President & Chief Executive Officer 2 Financial review &outlook Tamar Rapaport-Dagim, Chief Financial Officer & Chief Operating Officer 3 Q&A
Slide 5: Strategy and business performance update
President & Chief Executive Officer Strategy and business performance update
Slide 6: Supporting our customers' journeys
Thanks to our amazing people around the world, we support our customers’ journeys Close to 100% Products/ Managed services Platforms contract renewals Implementation services Unique Accountability Over Model 95% successful transformations Operations 6 Information Security Level 0 – Public. © 2024 –
Slide 7: Q2/24 record revenue, continued profitable growth and margin improvement
Q2/24—record revenue, continued profitable growth & margin improvement (1) Non-GAAP Revenue Non-GAAP EPS(3) 12-month backlog operating margin(3) $1.25B 18.4% $1.56 $4.23B Up ~2% YoY(2) +60bps YoY At guidance midpoint Up ~3% YoY +30bps QoQ driven by our ongoing initiatives to accelerate profitability
Slide 8: Second quarter key highlights
Second quarter key highlights Healthy second quarter sales momentum Unparalleled project execution Healthy momentum in North America: CatalogONE major upgrade Significant 5-year deal expanding activities in a new cloud Unified BSS and OSS platform Leading service domain; extends consumer domain enga
Slide 9: Strategic growth framework
Strategic growth framework Cloud Digital 5G, FWA Network B2B and fiber Generative AI 9 Information Security Level 0 – Public. © 2024 – Proprietary & Confidential Information of Amdocs
Slide 10: Progress in strategic domains – Generative AI
Progress in strategic domains – Generative AI Simplify and accelerate adoption of GenAI across the telecom industry Infusing Amdocs Leveraging strategic Gen AI app factory CES with GenAI partners Amdocs’ flagship CES24 telco-native, Introducing new GenAI use cases that Extending the capabilities of
Slide 11: Progress in strategic domains – cloud
Progress in strategic domains—cloud Accelerate our customers’ journey to the cloud Continued strong sales momentum, on-track for double-digit revenue growth in FY2024 Selected examples Business value Upgrade and migration of Flexibilty and capacity growth, reduced Amdocs CES to Oracle operational co
Slide 12: Progress in strategic domains – digital modernization
Progress in strategic domains – digital modernization Creating seamless digital experiences by transforming technology and IT operations for consumer and B2B customers Selected examples Business value Operational efficiencies, elevate customer experiences, Digital transformation Japan and unlock new
Slide 13: Progress in strategic domains – 5G, FWA and fiber
Progress in strategic domains—5G, FWA and fiber Next-generation solutions to unlock new revenue monetization opportunities, such as fixed wireless access, fiber and 5G standalone Selected example Business value OSS Inventory consolidation and Enable seamless integration and merger services enhanced
Slide 14: Progress in strategic domains – network automation
Progress in strategic domains—network automation Delivering dynamic connected experiences with real-time, automated networks Selected examples Business value Helix Service Assurance suite, follows Transforming fault and performance Amdocs’ acquisition of TEOCO’s management, and driving streamlined S
Slide 15: Current operating environment
Current operating environment Continued challenging environment of macro uncertainty and industry pressure Healthy market demand and high win rate for Amdocs’ innovative products and services; expect another year of double-digit cloud revenue growth Strong progress in GenAI use cases, supported by c
Slide 16: Updating our FY24 outlook
Updating our FY24 outlook A 1.7%-3.7% B YoY growth Free cash Revenue(1) Expected double-digit cloud flow(3) revenue growth; expect sequential Represents a revenue growth acceleration in fiscal H2, albeit more moderately than initially expected due to slower pipeline conversion C 18.1%—18.7% D 7%-11%
Slide 17: Financial review & outlook
Chief Financial Officer & Chief Operating Officer Financial review & outlook
Slide 18: Q2 2024 Results
Q2 FY2024 Q2 2024 Results Q2 2024 Revenue vs. Guidance $ Millions Q2 Revenue Slightly above Financial $1,246 million guidance midpoint Highligh +1.8% YoY, +2.0% constant currency(1) $1,245 $1,246 Slightly above guidance midpoint ($1,225M—$1,265M) Record revenue, +1.8% YoY as reported (1) Original Q2
Slide 19: Leading Indicators: Record Quarterly 12-Month Backlog
Leading Indicators Record Quarterly 12-Month Backlog in Q2F24 $ Billions & Business Model 12-month backlog growth has accelerated Visibility year-over-year over the past several quarters $4.23 $4.21 (1) 12-Month Backlog $4.14 $4.15 (1) $4.11 (1 Record-high as of March 31, 2024 ~ +3% YoY, +$20M QoQ Q
Slide 20: Leading Indicators: Managed Services Revenue
Leading Indicators Managed Services Revenue: Fiscal Year to Date & Business Model $ Billions 718.9 720.3 Managed services arrangements support Visibility business model resiliency with highly 58% of recurring revenue streams, multi-year revenue engagements and high renewal rates, Managed Services an
Slide 21: Balance Sheet & Cash Flow
Balance Sheet DSO’s Q2 2024 Free cash flow(1) bridge 76 days FCF includes ~$7M +2 days YoY and +1 days QoQ restructuring payments & Cash Flow DSO’s may fluctuate from quarter to quarter ~$133 The sequential quarter change in unbilled ~$20 $113 * receivables net of deferred revenue was $70 million in
Slide 22: Disciplined Capital Allocation
Q2 2024 Cash Returned to Shareholders Disciplined Capital $ Millions Board authorized quarterly dividend payment: Allocation 47.9 cents Dividends, Payable on July 26, 2024, to shareholders on $51 record date of June 28, 2024 Expects free cash flow(1) (FCF) of $700M(6) in FY2024, equating to more Ret
Slide 23: FY2024 Revenue Growth
FY2024 Revenue Growth Revenue YoY% Growth Constant Currency(2) Growth Outlook Expects FY2024 revenue growth of 10.3% 1.7%-3.7% YoY constant Expects 2.7% 7.7% 3.7% currency(2) 7.0% midpoint of 1.7%-3.7% YoY Expects revenue growth of 1.6%-3.6% outlook 1.7% 2.4% YoY as reported, incorporating an unfavo
Slide 24: Profitability Improvement
Profitability Quarterly Non-GAAP(1) Operating Margin: FY2018 – FY2024E(2) $ Millions Improvement FY2024E Non-GAAP(1) Operating margin target range: 18.1%-18.7% On-Track 18.7% On pace to achieve accelerated profitability improvement in FY2024 18.1% 17.8% 17.8% Non-GAAP operating margin 17.5% 17.6% wi
Slide 25: FY2024 Total Shareholder Return
FY2024 Total Shareholder Return(3)(4) Non-GAAP(2) Diluted EPS Growth YoY % + Dividend Yield Non-GAAP EPS FY21 and FY22 non-GAAP EPS growth is presented pro forma(1) Outlook 4th consecutive year of double-digit expected total Expects midpoint of non-GAAP(2) EPS 14.1% shareholder returns* in FY2024 13
Slide 26: Committed to ESG
Committed to ESG TM Forum Moonshot Catalyst Hosted ‘Elevating Women in Included in the S&P Global winner for our AI-based Gen AI,’ at MWC, a Sustainability Yearbook Carbon Footprint Catalog, roundtable with visionary 2024 developed with Vodafone women leaders discussing Germany, AWS, Carbon the gend
Slide 27: Q&A
Q&A
Slide 28: Appendix: Outlook & Reconciliation Tables
Appendix Outlook & Reconciliation Tables
Slide 29: Q3 & FY2024 Outlook
Q3 & FY2024 Q3 Fiscal 2024 Outlook Outlook Revenue $1,235—$1,275 million GAAP EPS $1.24—$1.32 Non-GAAP(1) EPS $1.57—$1.63 Share Count 116 million Positioned to deliver double- Effective Tax Rate High-end of annual target range of 13.0%—17.0% digit expected total Non-GAAP(1) shareholder returns for t
Slide 30: Selected Financial Metrics
AMDOCS LIMITED Selected Financial Metrics (In thousands, except per share data) Three months ended Six mouths ended _March 31,_ _March 31,_ 2024 2023 2024 2023 Revenue S 1,245,849 S 1,223,304 S 2,491,0+8 S 2,409,024 Non-GAAP operating income 229,434 217,737 454,675 427,275 Non-GAAP net income 183,62
Slide 31: Reconciliation Tables
Reconciliation Tables AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP {Iri thousands] Three Months Ended March 31,2054 Changes in certain acquisitions Amortization related of purchased liabilities intangible- Equity based measured assets and compensation at fair Res
Slide 32: Reconciliation Tables
Reconciliation Tables o/-j Information Security Level 2—Sensith^ © 2024—Proprietary & 32 Confidential Information of1 Amdocs AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (In thousands| jjji Mouths Ended March 31,20M Changes in certain acquisitions Atnortiza tio n
Slide 33: Thank you!
Thank you!