Amdocs Limited

Thank you for standing by, and welcome to the MDOT's limited first quarter 2022 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Matthew Smith, head of investor relations. Please go ahead, sir.

Thank you, John. Before we begin, I need to call your attention to our disclaimer statement on slide two of the presentation. It notes that some of our comments today may be forward-looking statements and are subject to risks and uncertainties, as described in Amdocs' SEC filings, and that we will discuss certain financial information that is not prepared in accordance with GAAP. For more information regarding our use of non-GAAP financial measures, including reconciliations of these measures, we refer you to today's earnings release, which will also be furnished with the SEC on Form 6-K. Participating on the call with me today are Shuki Sheffer, President and Chief Executive Officer of Andox Management Limited, and Tamar Rapoport-Gagin, Joint Chief Financial and Operating Officer. Consistent with last quarter, to support today's earnings call, we are providing a presentation which can be found on the investor relations section of our website, and as always, a copy of today's prepared remarks will also be posted immediately following the conclusion of this call. On today's agenda, Shuki will provide an update on our recent strategic progress and business performance, and tomorrow we'll review our financial results and outlook for fiscal year 2022. And with that, I'll turn it over to Shuki.

Thanks, Matt, and good afternoon to everyone joining us on the call today. I will start today's call by recapping our business and financial achievements for the first quarter of fiscal 2022. Second, I will habit you on the main pillars of our strategic growth framework and continue progress we've made in the past quarter. I will wrap up by discussing our financial outlook, including our expectation for continuous revenue growth in fiscal year 2023 and 2024, which we are providing today. Tamar will then provide additional details on our first quarter financial performance and guidance. As a reminder, our comments today will refer to certain financial metrics on a performer basis, where applicable, to provide you with a sense of the underlying business trends, excluding the financial impact of open market, which we divested on December 31st, 2020. So let's get going. Turning to slide seven, I'm proud to report a great start to fiscal year 2022. At our analyst and investor business update last November, we outlined our strategy to deliver accelerated revenue growth by bringing market-leading innovation designed to meet industry needs for digital modernization, 5G monetization, journey to the cloud and network automation, Based on our first quarter performance, I believe our strategy is continuously gaining traction in the market. Evidenced by another quarter of a strong sales momentum across long-standing global customers such as AT&T, T-Mobile, Vodafone, Globe Telecom, and others. Additionally, we penetrated several new logos that support our ongoing growth and regional expansion, including PPF Group in Europe and Vodacom in Africa. Our customer investment industry megatrends like 5G and cloud are gathering pace and translating to strong demand for our product and services. The relevancy of our offering to the market results from our past and ongoing commitment to R&D investment, which further extends our technological leadership and brings cutting-edge innovation to our customers. To add a further point, I believe our capacity to win new business is a function of our unrivaled reputation for project delivery as demonstrated yet by another record quarter for the number of deployment milestones achieved for our customers in Q1. M&A is another important tool we use strategically to accelerate our capabilities in key growth areas. Focusing on cloud strategy, I'm delighted to announce our acquisition of DevOps Group, a boutique UK-based cloud company specializing in engineering, consultancy, and training services for enterprises implementing cloud and DevOps. DevOps Group geographically complements the high-end expertise required with last year acquisition of Source Group and federal strengths of professional services organization to support all aspects of our customer cloud journey, including consulting, cloud native software, migration of mDocs and non-mDocs application, ongoing development, and cloud operations. Overall, I am proud of our progress in Q1, which we achieved while striving to improve the lives of people in our communities. Slide head highlights just some of many initiatives. Demonstrating our commitment to green environment, we recently completed a cloud migration project to support improving quality in London, by expanding the city's ultra-low emission zone. MDocs Mexico was recognized by NGO Human Rights Campaign as one of Mexico's best places to work for LGBTQ plus for 2021. And our deep commitment to diversity was recognized by the Peruvian government for promoting an inclusive society which people with disabilities achieve full development. Amdocs Israel also won the Diversity in the Business prestigious award for our work to promote employability of the Arab minority in the tech industry. As a mark of our commitment to sustainability and corporate responsibility, Amdocs was recently honored to be included in the prestigious S&P Dow Jones Sustainability Index for North America for the third consecutive year. Placing us among the top 15 companies in our industry, based on long-term economic, environmental, and social criteria. I believe such recognition is a testament to Amdoc's identity and reflects the value held by our 29,000 employees worldwide. I would like to take this opportunity to extend a warm welcome to all those who have recently joined the Amdocs family. And my sincere thanks to all our people for their dedication, resilience, and commitment to ensuring a great start to our fiscal year. Our great start to fiscal year is reflected in our Q1 financial performance. The key highlights of which are on slide 10. We delivered record revenue of $1.1 billion, up 10.6% on a performer constant currency basis, and led by our best-ever quarter in North America, where we continue to see high activities level across our top customers. Strong sales momentum was reflected in our record 12-month backlog of $3.8 billion, which was up $140 million sequentially, and 9.7% from a year ago. On the bottom line, we delivered a non-gap earning per share of $1.20, which was the higher end of our Q1 guidance rate. Now, let me update you on the recent progress we've made against our strategic imperative as presented on slide 11. To remind you, our goal strategy is intentional and focused. As industry leaders around the world look to derive growth and modernize 5G, they rely on our market-leading innovation to deliver unparalleled experiences to their consumers and enterprise customers. Our key innovation enablers include end-to-end cloud platform and services that ensure operational agility, scalability, and ultimately cloud at scale. Monetization of new 5G services like ultra-low latency connectivity, immersive entertainment, and connected industries, creating seamless digital experiences by transforming IT operations and reinventing user interactions, and delivering dynamic, connected experience with real-time automated networks. Beginning with cloud, I am proud to announce two key awards this quarter. First, we were selected by T-Mobile's partner to shift non-AMDOX applications to the public cloud. thereby expanding our activities in the support of T-Mobile's multi-year cloud journey. Additionally, we are excited to report a multi-year deal with T-Mobile to deploy and operate DataOne, our data intelligence platform. Second, we are thrilled to announce that PPF Group awarded us a digital cloud management transformation of its next-gen business support system across all lines of businesses. under which Amdocs will provide its wide set of cloud-native products to be operated on the public cloud as a part of a long-term multi-country agreement. This award demonstrates Amdocs' ability to expand internationally by penetrating new logos, and we look forward to supporting PPF's 18 million subscribers across Bulgaria, Hungary, Serbia, and others. In 5G monetization, Amdocs opened a 5G charging and policy solution was chosen by Vodacom, a new logo in Africa which we are supporting to enable the quicker launch of new products, services, and tariffs for its operation in Tanzania, Mozambique, and the Democratic Republic of Congo. In Malta, we extend our agreement with Malita Limited to provide a charging solution that will expand its range of IoT and 5G offering for consumer and business customers. Additionally, we announced cooperation with Samsung Electronics America to deliver end-to-end 4G and 5G private network solution to help U.S. enterprises across key industries to unlock next-generation use cases and to help close the digital divide in hard-to-reach locations. Turning to digital modernization, we are happy to announce two new North American logos in Q1, including Summit Broadband, a Florida-based service provider, which has selected Amdocs for a multi-year deal to uplift their BSS and OSS ecosystem, and Consumer Cellular, a possible mobile virtual network operator from Portland, Oregon, which selected Amdocs eSIM solution. Additionally, Vodafone Turkey selected Amdocs for a three-year deal to provide end-to-end quality engineering services that will quickly develop, test, and bring to market new product and services for the benefit of its customers. Moving to network automation, I'm excited to share the two tier one North American customer, including Lumen, have recently selected to modernize and upgrade on our cloud native next generation 5G network services orchestration platform. Additionally, we today announced a three-year deal with Globe Telecom in the Philippines to provide radio access network optimization services to accelerate the expansion of its 4G and 5G networks and the time-to-market launching of new services. Finally, let me quickly highlight Amdocs Media, which continues to expand outside North America. In Indonesia, To extend a multi-year agreement with Excel Axiata, we selected our SaaS-based Amdocs MarketOne platform to offer its customers seamless access to international, local, and regional content services. Additionally, Amdocs recently worked with Astro, a leading Southeast Asia media and entertainment company, to successfully launch new content and broadband bundles, including Netflix, to provide customers with premium, affordable entertainment in a streaming world. Now, turning to slide 12 and our financial outlook. Let me begin by addressing the revenue growth projections we are providing today for the three fiscal years 2022 through 2024. Last quarter, we guided to fiscal year 2022 revenue growth in the range of 6% to 10% on a performer constant currency basis. and we are now projecting annual revenue growth in the range of six to 10% constant currency in 2023 and 2024. Our conviction in this outlook founded on our technology leadership and the strengths of Amdoc's unique business model for which we derive highly recurring revenue stream, strong business visibility, and durable multi-year engagement supporting our customers' mission critical operation. Second, we are encouraged to see a large funnel of market opportunity in front of us, the size of which is continuously expanding. This dynamic is consistent with our view that global operators are still in the early innings of a multi-year investment cycle, driven by megatrends such as 5G and the cloud. Our strong sales momentum in recent quarters supports confidence that Amdocs is well positioned with the right strategy to monetize the market opportunity leveraging. Our innovative cutting-edge technology, which continues to support the future roadmap of our customers and constantly extends our competitive lead in the market. Our execution track record, which is the best in the industry. And our highly skilled and talented employee base, which is focused on delivering value to our customers worldwide. As a final point, our three-year revenue growth projection does not depend on a material level of M&A activity. To summarize our long-term view, we firmly believe that Amdox has entered a new era of accelerated growth as reflected into the three-year outlook we have provided to date. Turning attention to the current fiscal year 2022, we believe revenue growth is tracking at the higher end of our 6% to 10% guidance range on a performa constant currency basis, given our encouraging start of the year. On the bottom line, we are also on track to achieve performa diluted non-gap earnings per share growth at the higher end of our expected range in fiscal year 2022 outlook, putting us in a strong position to deliver double-digit expected total shareholder returns for the second year running, including our dividend yield. With that, let me turn the call over to Tamar for her remarks.