Amdocs Limited

Thank you for standing by and welcome to Amdoc's first quarter 2023 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 1-1 on your telephone. To remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mr. 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, including 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 6-K. Participating on the call with me today are Shuki Sheffer, President and Chief Executive Officer of Amdox Management Limited, and Tamar Rapoport de Gim, 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 first quarter fiscal 2023, and we'll update you on the continued progress we've made executing against our strategic growth framework. Shuki will finish by commenting on our financial outlook for the full fiscal year 2023, after which tomorrow we'll provide additional details on our first quarter financial performance and forward guidance. With that, I'll turn it over to Shuki.

Thanks, Matt, and good afternoon to everyone joining us on the call today. Starting on slide six, I am pleased to report strong first quarter results. Sincere thanks for which go to our incredible people around the world who every day work to support our customer multi-year journey towards digital modernization, 5G monetization, cloud migration, network automation. Q1 revenue was a record $1.19 billion, up 9.5% year-over-year in constant currency and above the midpoint of our guidance. 12 months backlog of $4.09 billion was also a record high, up approximately 7% from a year ago on continued sales momentum, and we delivered a non-GAAP diluted earning per share of $1.45, which was above the guidance range primarily due to a better profitability on a higher revenue base and a lower than expected non-GAAP effective tax rate. Overall, our financial year is off to a strong start. positioning AMLOs to deliver consistent and profitable growth in fiscal 2023 within a global macroeconomic backdrop that remains challenging and uncertain. To provide context to our financial performance, let me review our quarterly operating achievements as shown on slide eight. To begin, we continue sales momentum and further cultivate strong value-driven partnership with new and existing customers during Q1. Notably, We deepen our long-standing relationship with customer-like AT&T, T-Mobile, Verizon, Comcast, Dish, and Claude Bazille in the Americas, Vodafone Entry Group in Europe, Globe in the Philippines, and a T1 operator in Malaysia. Additionally, we federally diversified Amdoc's customer base by winning several new logos, including Cold Technology Services in the UK, and Telefonica Mobile El Salvador in Latin America, where Andor's online charging system will replace the existing vendor. Andor's ubiquity has also continued to execute well on its strategy of servicing leading studios and direct-to-consumer platforms, winning several new projects and extension over the past year, including Disney, Warner Brothers, Discovery, MGM, and Paramount. Turning to execution, Q1 was another great quarter which include major project milestone deliveries at AT&T, T-Mobile, Verizon, Belcanada, Excel, and many others. At Claro Brazil, we expanded our policy platform to allow for new use cases such as voice-over-all-TE in 5G standalone. In addition to which, I'm happy to share that nearly all the Brazilian Post-Bit customers Claro acquired from OI have already been successfully migrated to our monetization platform. I believe Amdoc's high rate successful project execution is a direct outcome of our highly skilled workforce, unique global delivery model, methodologies, tool and automation, and original site strategy, which is constantly refined as we optimize our global talented pool. I also would like to highlight the competency of our managed services business. which this quarter delivered flawless execution for customer over the peak retail volume periods of Black Friday and the holiday season. In addition to sales and execution, we maintain a high level of R&D investment during Q1 and further extended our technology and product leadership. The most advanced version of the MDocs customer experience suite and services offering will be presented at the fast-approaching Mobile World Congress in Barcelona, where we are planning a significant presence and meetings with many customer and partners. We'll also be showcasing innovative solutions and exciting use cases, including those resulting from our collaboration with service providers, enterprises, and partners at our Dallas 5G experience lab. To complement our goals pillars, Amdocs remain committed to discipline M&As and when opportunities arise. Amdos is constantly evaluating a broader pipeline of exciting M&A opportunities, and while the previously announced acquisition of MyComOSI did not move forward this plan, we continue to look for suitable deals that can accelerate our growth strategies. Before moving on, I want to proudly recognize our recent achievement in the ESG domain, as shown on slide nine. As previously announced, Amdocs included in the S&P Dow Jones Sustainability Index for North America for the fourth consecutive year. Additionally, we are today pleased to announce that Amdocs has been included as a member of the 2022 Bloomberg Gender Equity Index, which we believe is a testament to Amdocs' progress towards achieving diverse diversity goals to which we are committed. Our commitment to sustainability and corporate responsibility has also earned several other recognition this quarter. MDocs India was recognized as one of the most preferred workplaces in IT and information technology-enabled services for 2022-2023. We improved our environment disclosure rating at CDP from B to A-, and our new State of the Art campus in Israel has a LEED Gold certified for its sustainable design and operation. Precise CESG recognition, such as these, reflect MDoc's desire to make positive impact on the environment and the communities in which we operate, and I'd like to thank our global base of talented and committed employees for their essential part in making achievements like this possible. Now let me provide a progress update in respect to our multi-pillar growth strategy The aim of which is to bring market-leading innovation to help survey providers to accelerate migration to the cloud, create seamless digital experiences by transformation IT operation, launch and monetize new 5G services, and deliver dynamic connected experience with real-time automated network. Starting with slide 10, we see growing number of service providers embarking on a multi-year cloud migration journey that Amdocs is supporting with our end-to-end suite of cloud platform and services. I'm happy to report that T-Mobile selected Amdocs' cloud-hosted intelligent networking suite and next-generation platform to enable provisioning of advanced 5G services, and World of Ireland recently chose Amdocs to modernize and migrate its Amdocs data and application workloads from on-premise to the cloud to enable greater flexibility and capacity and improved customer experience and rapid adoption of latest 5G innovations. Additionally, a leading tier one operator in Southeast Asia has selected Amdocs to smartly migrate its existing Amdocs BSS suite to a modern cloud transformation at two large regional affiliates, thereby enabling improved security and operability while defining the long-term journey towards the full cloud native environment. Moving to triggers of transformation on slide 11, most service providers are recognizing the power of data to drive personalized customer experiences. Amdocs is working with Comcast on several new projects, including updating the new Amdocs data hub for mobile B2B on the cloud. Under a multi-year managed services engagement, 3UK selected Amdocs to migrate to a modern cloud-based data architecture to serve its customers timely recommendations based on data-driven decision-making. Finally, Andros is providing AI-driven data insights to Globe Telecom, a leading operator in the Philippines, with nearly 88 million mobile subscribers. Implemented on the public cloud and delivered under a multi-year managed services agreement, the service will empower Globe to derive business growth, time-to-market agility, and operational efficiency. Turning to slide 12, and 5G monetization, fixed wireless access is rapidly emerging as one of 5G's first meaningful success stories, and Amdocs is already playing an important part. For instance, a leading tier one operator in North America recently selected Amdocs home operating system, which utilize AI technology to simplify internet and device management, automate customer support, and introduce enhanced security features for fixed wireless broadband customers. More broadly, Amdocs is helping service providers to modernize and build agility in the 5G era by enabling the rapid launch of monetization of new 5G products. Amdocs was recently commissioned by CTM, a leading telecom operator in Macau, to modify its online charging and building infrastructure to support 5G standards. We recently extended our managed services relationship with Vodafone Romania, which selected Amdocs to modernize its revenue management system with a modular platform, enabling it to launch and monetize new product and services at speed. Additionally, Globe Telecom recently selected Amdocs' next generation charging platform to enable the monetization of new standalone 5G services to consumer and businesses while reducing operation costs, and KTE, Corporation in South Korea signed a three year extension for ongoing support services and fast rate development for Amdocs turbocharging and catalog platforms, which extend Amdocs and KT Corporation until 2025. Turning to network automation on slide 13, global service providers are considering investment in cloud native, fully digitalized processes to better manage massive scale and complexity across services across service ordering, activation, and provisioning for consumer and enterprise customers. Amdocs recently completed an operational support system modernization project for a leading Australian operator, providing it with fully cloud-native services, design and orchestration capabilities, and running on a public cloud infrastructure to enable increased performance, business agility, and cost saving. Along similar lines, in the UK, Colt Technology Services has signed a letter of agreement for Amdocs to deliver the Amdocs Resource Manager. The solution will be cornerstone in Colt's continuous modernization journey focused on delivering digital infrastructure services which empower its customers and employees around the world. We are also bringing value and respect to network deployment and optimization. Amdocs is providing system integration services for VRAN in Verizon, To derive mass scale of automation and deployment efficiency, S5G rolls out nationwide. Additionally, Telefonica Germany has chosen Amdoc's cloud-native network optimization suite, enabling the operator to maximize network performance and accessibility and to benefit from greater flexibility, scalability, and automation. out my strategic review, let me quickly comment on an interesting project that we recently implemented for Bank of Poalim. It's one of Israel's largest financial services institutions. Bank of Poalim is using MDoc's leading catalog management software to rapidly create and deploy customer-centric offers, product and services such as digital lending, to vastly improve time-to-market agility. Moving to our fiscal year 2023 outlook as presented on slide 14 and 15. To begin, let me remind you that Amdocs and our global customer are not immune to economic cycles, and we are continuing to closely monitor the current period of global macro uncertainty. Amdocs is well situated at the heart of the multi-year 5G network automation digital and cloud-driven investment cycle with our market-leading software and services, and a strong reputation for successfully delivering mission-critical system transformation. From our vantage point as a trusted partner and key technology enabler, we continue to see an attractive pipeline of opportunity and healthy level of customer engagement as we collaborate in respect to their next-generation software application and services requirements. In the current environment, Amdocs is also very well-placed to help service providers improve customer experience, accelerate cost reduction, and increase efficiency as demonstrated by the many customer activities highlighted today. We are confident in our unique business model, which is more resilient due to the highly recurring revenue streams and strong business visibility resulting from our support of mission-critical systems under multi-year engagements. Wrapping everything together on slide 15, we are reiterating our guidance for full-year revenue growth of between 6% to 10% on a constant currency basis in fiscal 2023, with all three operating regions contributing positively over the full year. On the bottom line, we are raising the midpoint of our outlook for non-GAAP diluted earnings per share growth by 100 basis points to a new range of roughly 9% to 13% in fiscal 2023. The outlets reflect our strong Q1 financial performance and our commitment to further improve profitability by accelerating automation, driving efficiency, and tightly managing costs. Additionally, we are on track to achieve our free cash flow guidance of approximately $700 million in fiscal 2023, the majority of which we plan to return to short orders. With that, let me turn the call over to Tamar for a remark.