Amdocs Limited

good day and thank you for standing by welcome to the q2 2022 amdocs earnings conference call at this time all participants are in a listen only mode after the speaker's presentation there will be a question and answer session to ask a question during the session you will need to press star 1 on your telephone please be advised that today's conference is being recorded if you require any further assistance please press star 0. i would now like to hand the conference over to your first speaker today Matthew Smith, Head of Investor Relations. Sir, you may begin.

Thank you, Operator. 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 Amdox's 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 6K. Participating on the call with me today are Shuki Sheffer, President and Chief Executive Officer of Amdox Management Limited, and Tamara Rappaport de Guim, Joint Chief Financial and Operating Officer. 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 recap our business and financial achievements for the second quarter fiscal 2022. And we'll update you on the continued progress we have made executing against our strategic growth framework. Shiki will finish by commenting on our financial outlook, after which tomorrow we'll provide additional details on our second quarter financial performance and guidance. As a reminder, our comments today will refer to certain financial metrics on a pro forma 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. With that, I'll turn it over to Shiki. Thanks, Matt.

And good afternoon to everyone joining us on the call today. I'd like to begin on slide six with a huge thank you to our thousands of employees worldwide. Following a great Q1, our second quarter was also very strong, and I could not be more pleased with our operational and financial execution for the fiscal year to date. Last quarter, we provided the guidance for the annual constant currency revenue goals of between 6% to 10% over the next three fiscal years. On the strength of our recent performance, I can already say that we are tracking at the high end of this range on a performer basis for the current fiscal year to date. I believe such great performance is a testament to our market leadership and the successful education of our highly relevant growth strategy, the credit of which belongs to our global and diverse base of incredibly talented employees across all dimensions of our business. I could not be prouder of Ambrose people and I'm highly confident that we are well positioned for future success. Now, moving to slide seven, let me address our second quarter operational highlights. To begin, overall business activity was very strong as we continue to enable our customer strategy to provide a superior customer experience by supporting the highly necessary investment in 5G and product monetization, cloud adoption, digital modernization, and network automation. Activity was particularly high in North America, where Amdocs is in the heart of the major strategic long-term investment occurring at our large and long-standing customers. For instance, we continue to support the multi-year modernization of AT&T consumer domain, which is a core to its strategic focus on 5G and firmware connectivity. We are also glad to be core part of T-Mobile's modernization journey where we are implementing our next generation product and cloud services that will support T-Mobile's long-term competitive position and the realization of the synergies related to the sprint integration. We also maintain robot sales momentum in Q2. We extended our long-standing managed services relationship with Bell Canada for another five years as we continue to support its cloud transformation. We want a digital information project with Vodafone Ziggo in Netherlands and a new 5G policy deal with a tier one European operator which expand our existing footprint at this customer. Additionally, we strength our partnership with PLDT in the Philippines with a three year extension of our existing service agreement in addition to future projects to support PLDT's cloud journey. I was especially pleased we have superb execution in Q2. as we set another record for number of project milestones deployed. Among our achievements, we completed a major digital transformation program for three UK's enterprise customer segments, where we moved from scoping to building the cloud infrastructure and go live in just 15 months. Such accomplishments reinforce our unrevealed reputation for project delivery and strengthen our ability to maintain a high win rate in the market. As a final highlight, we further accelerated our R&D investment this quarter, underscoring our commitment to continuously bring cutting-edge technology and world-class product and platforms to market. At Mobile World Congress in Barcelona this quarter, we launched CES22, our latest open and modular cloud-native 5G suite. After the three-year pandemic, it was exciting to experience the positive customer energy at this year's show. And I was highly encouraged by the strong feedback we received in respect to our offering and strategic direction throughout a dozen of C11 executive meetings we hosted during the week. Great operational performance translated to very strong second quarter results. The highlight of which can be seen on slide eight. Record revenue of 1.15 billion marked a third straight quarter in which performer growth was exceeding 10% year-over-year on a constant currency basis. We also achieved record 12-month backlog of $3.89 billion, up 10% from a year ago, and driven by the robust sales momentum I highlighted earlier. On the bottom line, we delivered a non-gap earnings per share of $1.54, which was above the high end of guidance, mainly due to a lower than anticipated non-GAAP effective tax rate for the quarter. Turning to slide nine, let me say a few words about Amdoc's exposure to Russia and Ukraine and our response to the humanitarian crisis unfolding. From business perspective, Amdoc's exposure to Russia and Ukraine is immaterial and roughly 1% of revenue, and its impact is already reflected in our guidance. Furthermore, we believe we have taken all necessary steps to ensure we are fully compliant with the applicable sanctions and export control, and we have stopped all new sales of our product and services in Russia. We have also taken steps to ensure the well-being of the employees and contractors we have in the region, and to support those who wanted to live with their families. Additionally, we are actively providing humanitarian aid in Ukraine and neighboring countries. Among our many initiatives, Amdocs is part of a donation campaign to provide essential services via UNICEF to vulnerable children and affected families. We are also offering financial support to Amdocs employees who are hosting refugee families. Let's take a closer look at our recent progress executing against our four-pillar growth strategy of cloud, 5G, digital, and network automation as shown on slides 10 and 11. Beginning with cloud services, T-Mobile has recently implemented Amdoc's business assurance solution on AWS. Leveraging cloud and artificial intelligence, this implementation will help to drive mergers and synergies with Sprint by accelerating the migration to combined customer base and is part of the larger digital transformation and extended hybrid cloud operation we are supporting for T-Mobile under the multi-year managed services agreement we announced last year. Additionally, we are proud to say that we recently extended our long-term standing relationship with Bell Canada as part of a new five-year managed service engagement to enrich its business platform with a real-time agile and cloud-ready ecosystem as part of its continued cloud transformation. Switching to 5G monetization, we are excited to announce a five-year deal with a Tier 1 European operator, which will implement Amdoc's policy and control solution on cloud infrastructure to support its new 5G standalone network. 5G standalone network will be central to unleashing the full potential of 5G And Amdoc's policy control solution is a key element that will enable this customer to launch cutting-edge 5G services and business model for its residential and business customer while reducing operational costs. Within digital, we expanded our long-term standing relationship with Vodafone Zego in the Netherlands, which has selected Amdoc's product and services for a wide-ranging digital transformation project. Amdocs will migrate fixed-line customers to a platform previously built by Amdocs for Vodafone Zegos mobile customers, thereby resulting in a unified customer journey, shorter average handling times, reduced time to market, and cost-saving linked to the retirement of its old fixed-line IT stack. Q2 was also a productive quarter in network automation among the customer highlights, We are delighted to announce that we have continued to expand our relationship with Comcast, which has selected Amdocs for a multi-year network automation testing deal. In Europe, we signed a first-ever agreement with Vodafone Albania, which expanded previously announced deal to provide inventory and next-generation OSS capabilities for Vodafone's mobile, fixed, and cable offering in Germany, Romania, and Czech Republic. We also successfully completed a network inventory modernization project with FastWeb, which will enable the Italian service provider to improve time to market with innovative new services in the 5G and cloud area. As a final comment, let me mention M-Docs Media, which has been selected to deploy our M-Docs Market 1 SaaS platform on the public cloud for Virgin Media O2. MarketOne will give consumers the ability to add entertainment subscription to their monthly bill or enjoy them as part of a bigger bundle with their existing broadband, mobile, and cable packages. Additionally, Virgin MediaO2 will be able to easily expand its growing portfolio on new OTT partners as it looks to further improve customer loyalty Overall, this exciting project provides another sign of positive customer attraction for Market One, which has already been selected by T-Mobile, NTT Mexico, and others. Now, turning to our financial outlook on slide 12. As I said at the beginning of my remarks, I could not be more pleased with our Q2 performance. Our sales momentum is strong, and we see a large expanding pilot of opportunities ahead of us, which we expected to monetize by leveraging our innovative marketing technology, our unrivaled track record of execution, and our highly skilled and talented employee base, which is focused on delivering value to our customers worldwide. Wrapping everything together, we are confident that Amdos can deliver annual revenue growth within the range of 6% to 10% on a constant calorie basis over the three fiscal years, 2022 to 2024. And as a company, we have entered a new area of accelerated growth. Regarding fiscal year 2022 specifically, we are now tracking at the high end of our revenue growth guidance range of eight to 10% on a performer constant currency basis. Similarly, We are also tracking at the high end of our diluted non-GAAP earnings per share growth guidance range of 9% to 12% on a performer basis in fiscal year 2022, which firmly position us to deliver double-digit expected total share return for the second year running, including our dividend yield of roughly 2%. With that, let me turn the call to Tamar for her remarks.