Slide 1: Fiscal Q1 2024 Earnings Presentation
Amdocs Limited NASDAQ: DOX Fiscal Q1 2024 Earnings Presentation February 6, 2024 Shuky Sheffer President & CEO Tamar Rapaport-Dagim CFO & COO 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 Tamar Rapaport-Dagim Chief Financial Officer & Chief Operating Officer Shuky Sheffer President & Chief Executive Officer
Slide 4: Earnings call agenda
Earnings call agenda Strategy & business performance update 1 2 3 Shuky Sheffer, President & Chief Executive Officer Financial review & outlook Tamar Rapaport-Dagim, Chief Financial Officer & Chief Operating Officer Q&A
Slide 5: Strategy and business performance update
Strategy and business performance update President & Chief Executive Officer Shuky Sheffer
Slide 6: Solid start to fiscal year 2024
5G Cloud Network B2B Digital Thanks to our amazing people around the world creating innovation and value to support our customers’ journeys Generative AI Solid start to fiscal year 2024
Slide 7: Solid Q1 financial performance
Solid Q1 financial performance Record revenue and accelerated margin improvement Revenue was up 5.0% YoY as reported and up 4.8% YoY in constant currency in Q124 Non-GAAP. See reconciliation tables in appendix +40bps YoY +30bps QoQ as initiatives to accelerate profitability yield results At guidance
Slide 8: Q1 operational highlights
Q1 operational highlights Continued to bring cutting-edge technology Consistent project execution Healthy first quarter sales momentum Deepened relationships with key NA customers Strengthened International footprint Added new logos Strong cloud sales momentum Austria Hungary Spain Germany UAE Japan
Slide 9: Progress in strategic domains - GenAI
Progress in strategic domains - GenAI Generative AI Strategy Acceleration Leading role as a dominant industry technology enabler, capable of helping service providers to fully harness the power of Gen AI Amdocs’ flagship CES24 suite now benefits from generative AI end-to-end across all domains from
Slide 10: Progress in strategic domains - cloud
Progress in strategic domains - cloud Cloud Accelerate our customers’ multi-year journey to the cloud Selected projects Business value Upgrade and move legacy CES platform to the cloud Cloud migration program Cloud transformation and managed services agreement Integrating Astadia, acquired last Nove
Slide 11: Progress in strategic domains – digital transformation
Progress in strategic domains – digital transformation Selected projects Digital transformation Creating seamless digital experiences by transforming IT operations for consumer and B2B customers Continued modernization journey Charging and mediation, managed services expansion Mobile sales solution
Slide 12: Progress in strategic domains - 5G, FWA and fiber
Selected projects Business value 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 Hungary Accelerate market launch of innovative new 5G services Multi
Slide 13: Progress in strategic domains - network automation
Progress in strategic domains - network automation Delivering dynamic connected experiences with real-time, automated networks Network automation Partially deployed at key customers Won 2 deals with leading Western European operators Efficient service orchestration and innovative monetization Enhanc
Slide 14: Current operating environment
Current operating environment While macro uncertainty and industry pressure persist, the overall operating environment remains mostly unchanged We remain confident in our relatively resilient business model of highly recurring revenue streams as we support mission-critical systems under long-term en
Slide 15: Reiterating our FY24 outlook
Reiterating our FY24 outlook A 1.2%-5.2% YoY growth 8%-12% YoY growth 18.1% - 18.7% % margin D ~100% earning-to-cash flow conversion Expected double-digit cloud revenue growth Expect to return majority of free cash flow to shareholders in year ahead C Revenue(1) Free cash flow Non-GAAP EBIT (2) Non-
Slide 16: Financial review & outlook
Financial review & outlook Chief Financial Officer & Chief Operating Officer Tamar Rapaport-Dagim
Slide 17: Q1 FY2024 Financial Highlights
Q1 FY2024 Financial Highlights Constant currency. Assumes exchange rates in the current period were unchanged from the prior period Non-GAAP. See reconciliation tables in appendix Record revenue, +5% YoY as reported and +4.8% YoY constant currency(1) Record revenue of $838 million in North America,
Slide 18: Leading Indicators & Business Model Visibility: 12-Month Backlog
Leading Indicators & Business Model Visibility 12-Month Backlog ~$4.21B Record-high as of December 31, 2023 ~ +3% YoY, +$60M QoQ Leading Indicator Roughly 80% 12-month backlog roughly averages ~80% of forward 12-month revenue Record Quarterly 12-Month Backlog in Q1F24 $ Billions (1) (1) (1) 12-month
Slide 19: Leading Indicators & Business Model Visibility: Managed Services
Leading Indicators & Business Model Visibility Managed Services ~$722M ~58% of total revenue in Q1 F2024 Managed Services Revenue: Fiscal Year to Date $ Billions 100 Close to managed services contract renewals Managed services arrangements support business model resiliency with highly recurring reve
Slide 20: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Non-GAAP. See reconciliation tables in appendix $650M senior note, maturing June 2030 Reported free cash flow(1) of $139 million in Q12024, including $16 million of restructuring payments Ample liquidity to support ongoing business needs while retaining the capacity to fund
Slide 21: Disciplined Capital Allocation and Free Cash Flow Outlook
Non-GAAP. See appendix tables for reconciliation of FCF Yield = expected reported free cash flow of $750M in FY2024 as a percentage of Amdocs’ market capitalization as of February 6, 2024 FCF in FY2020, FY2021 and FY2022 is presented on a normalized basis, which mainly excludes net capital expenditu
Slide 22: FY2024 Revenue Growth Outlook
FY2024 Revenue Growth Outlook Pro forma metrics exclude the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021. Constant currency. Assumes exchange rates in the current period were unchanged from the prior period Reiterating FY2024 revenue growth of 1.2%-5
Slide 23: Profitability Improvement On-Track
Profitability Improvement On-Track Non-GAAP. See reconciliation tables in appendix Refer to https://investors.amdocs.com/ and earnings reports issued on 11/8/2018, 11/12/19, 11/10/20, 11/2/2021 and 11/8/2022 for reconciliation of non-GAAP operating margin in FY2018, FY2019, FY2020, FY2021 and FY2022
Slide 24: Reiterating FY2024 Non-GAAP EPS Outlook
Reiterating FY2024 Non-GAAP EPS Outlook Pro forma metrics exclude the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021. Non-GAAP. See reconciliation tables in appendix Expected total shareholder return assumes Non-GAAP EPS growth plus dividend yield (bas
Slide 25: Committed to ESG
Committed to ESG Proud to be recognized for our achievements Included for the 5th consecutive year in the Amdocs was ranked in the 93rd percentile of the top 20% of the surveyed S&P Global BMI based on long-term economic, environmental and social criteria Protecting the Environment Set ourselves a l
Slide 26: Q&A
Body text Q&A
Slide 27: Outlook & Reconciliation Tables
Outlook & Reconciliation Tables Appendix
Slide 28: Q2 & FY2024 Outlook
Q2 Fiscal 2024 Outlook Category Revenue $1,225 - $1,265 million GAAP EPS $1.21 - $1.29 Non-GAAP(1) EPS $1.53 - $1.59 Share Count 118 million Effective Tax Rate Non-GAAP(1) Within annual target range of 13.0%-17.0% Full Year Fiscal 2024 Outlook Updated Previous Revenue growth As reported 1.1% - 5.1%
Slide 29: Reconciliation Tables
Reconciliation Tables The amounts under "Purchase of property and equipment, net”, include immaterial proceeds from sale of property and equipment for the three months ended December 31, 2023, and no proceeds for the three months ended December 31, 2022.
Slide 30: Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP
Reconciliation Tables ‘AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP {in thousands) December 1,205 ange in Dorchased | Equitybased abies facincble sets compensation measured at ee ane ble a Amortization of lated Purchased Equity based intangible sets compensation
Slide 31: Thank you!
i, 4 | Thank you! ——— make. it ©: amdocs | amazing