Amdocs Limited

Good day and thank you for standing by. Welcome to the 2023 Amdex 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 the question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Smith, Head of Investor Relations for Amdocs. Please go ahead.

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, including 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 6K. Participating on the call with me today are Shuki Sherpa, President and Chief Executive Officer of Andox Management Limited, and Tamar Rapoport-DeGim, 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 to financial achievements for the second quarter fiscal 2023. And we'll also update you on the continued progress we have made executing against our strategic growth framework. Shuki will finish by commenting on our financial outlook for the full fiscal year 2023. After which, Tamar will provide additional details on our second quarter financial performance and forward guidance. And with that, I'll turn it over to Shuki.

Thanks, Matt, and good afternoon to everyone joining us on the call today. I'm pleased with our second fiscal quarter performance as we progress on our strategy to deliver the next generation cloud-based software and services that global communication service providers need to unlock the potential 5G and broadband networks data-driven intelligence, and improved customer experience for the consumer and B2B. This quarter, we deepened our relationship and expanded our footprint with existing customers, added four new customer logos, sustained a high rate of successful project deployment, delivered a record quarter in managed services, expanded our strategic partnership with Microsoft, sign an M&A agreement to enhance the execution of our network strategy, and launch CS23, our most advanced customer experience suite yet, bringing fresh innovation across BSS, OSS, and network while sharpening our focus on the B2B domain. This achievement will not be possible without the amazing passion, agility, and collaborative spirit of all our talent employees, people to whom I would like to say thanks, for the consistent quarterly execution while also demonstrating the strategic vision necessary to drive Amdos forward over the long term. Reviewing the financial highlights of slide 7. Record revenue of $1.22 billion was above the midpoint of our guidance and up 8.2% year-over-year in constant currency. On the bottom line, non-gap diluted earnings per share of $1.47 was consistent with the midpoint of guidance as we delivered ongoing margin improvements and strong free cash flow generation in the quarter. Transplant backlog was record high of $1.4.11 billion, up roughly 7% for an year ago in constant currency. Turning to the operational highlights of slide 8, We delivered continued sales momentum in Q2, which included a significant new digital modernization award at T-Mobile USA. Deal activity was strong in Europe, which, as we have said before, is a region of significant growth potential for Amdos. Our multi-year investments to diversify and increase market share in Europe are bearing fruits. as reflected by record revenue in the world of several significant deals, including digital modernization programs and two new logos this quarter. Similarly, the rest of the world continues to present attractive opportunities for Antox, such as the new cloud engagement announced today with P&T in the Philippines. Meta services also had a great second quarter. which includes record revenue and newly expanded agreements with Globe, also in the Philippines, and a major operator in Western Europe. In media, Amnesty for Equity demonstrated continued growth as a trusted provider to the world's leading streaming services, signing a new agreement which expanded its decade-long relationship with Virgin Media UK. Additionally, his facade, a Spanish satellite communication operator, a new logo, choose Ubiquiti to bring digital content to its good customers in Argentina and the Western Latin America, while Juice, which is part of Ubiquiti, was selected as a preferred fulfillment vendor under Amazon Prime Video's fulfillment vendor program. From an execution perspective, we maintain a high rate of successful project deployment in Q2, achieving major milestones at many of the world's largest service providers. For instance, EMDA played an important role in the recent launch of AT&T's fixed wireless access offering Internet Air in selected markets, which is running on the new cloud-native digital platform we are delivering under the BCC technology modernization and simplification program we discussed earlier. This quarter, we also took several strategic steps to strengthen our market-leading position and long-term growth profile. First, we expanded our strategic partnership with Microsoft to bring a new AI-powered customer engagement platform, which combined MDoc's market-leading commoner, CareSuite, with Microsoft's cloud portfolio to create what we believe is the most compelling telco-specific offering in the market. MDoc and Microsoft already began to execute a joint go-to-market strategy to bring this platform to service providers worldwide, and we can already report encouraging signs of customer interest and expanding pipeline of opportunity in both consumer and B2B. Second, we sharpen our focus on the world's potential of B2B with the launch of CS23, which includes enhanced capabilities specifically developed to help service providers meet an increasingly complex demand of their B2B customers. Third, we are today delighted to announce our intention to acquire the service assurance business of Tioco for approximately $90 million in cash. Antox and Tioco already partnered on some opportunities, and we expect this move to enhance the execution of our network automation strategy by providing service providers with a unique end-to-end service orchestration offering, ensuring the quality of service, and enabling the delivery of next-generation customer experience. Now, let me update you on the strategic progress. Our strategic progress is to continue delivering market-leading innovation designed to help service providers, accelerated the journey to the cloud, create seamless digital experience by transforming IT operations for consumer and B2B, launch and monetize new 5G services, and deliver dynamic, connected experiences with real-time automated networks. Starting with cloud on slide nine, Service providers are still in the early stages of maximizing the value of potential of the cloud, and for the most, it will be a gradual journey over several years before they fully realize expected benefits, such as improved service agility, scalability, innovation, security, and customer experience. I'm happy to share that more and more Amdocs new deals are cloud-related, and a growing number of operators see Amdocs as the primary technology partner to support their core system cloud strategies. The value of Amdocs sliders in product suite is already proven in the cloud, and we have the capacity to support the optionality of hybrid environments for customers. Amdocs also removes complexity for operators by delivering end-to-end fully accountable migration paths, which begin with strategic planning and stretches to cloud-native product deployment and cloud-managed services, while leveraging our intimate partnership with Azure, AWS, and Google Cloud. I'm delighted to report that PLDT in the Philippines and its wireless subsidiary, Smart, are developing a multi-use strategic partnership with Amazon, to accelerate the cloud journey. By bringing our comprehensive suite of cloud services, Amdocs will leverage cloud infrastructure to efficiently migrate business-critical systems and applications to the cloud, while also integrating cloud-based applications with the rest of the built-in smart hybrid IT infrastructure. Among the recent cloud wins, Amdocs was selected by a Tier 1 central European operator to support and enable its journey to the cloud for critical DSS applications for affiliates in multiple countries, and we expanded our managed services relationship with a major Western European provider to migrate and operate non-ANDOX applications on the cloud. We believe such deal momentum reflects the market's growing recognition of our unique cloud domain expertise, and we look forward to supporting this and other customers as they continue their multi-year cloud journey in respect to their core systems. Moving to slide 10, service providers continue down the path of digital modernization to grow revenue, reduce costs, and improve experience for consumer and B2B customers. I'm delighted to report that we expanded our role in digital transformation at T-Mobile, where Amdorf's commerce and care suite, together with Amdorf's monetization suite, will empower insightful and transparent experience across all channels for T-Mobile consumers and B2B subscribers. Amdocs was also selected by a major Eastern European operator to create and deploy new customer engagement platform designed to derive customer loyalty and retention and bolster its social media presence. While the second Eastern European service provider chose Amdocs to modernize its IT infrastructure in a strategic, wide-ranging digital transformation project that will enable a harmonized, patient-less customer experience that calls multiple channels a dashboard. We are also collaborating with YES Network, the exclusive regional television home of the New York Yankees and Brooklyn Nets, to provide a premium customer experience for YES direct-to-consumer streaming platforms. The shift from physical to software-based SIM card is another digital theme creating opportunities for Android. Our cloud-based MDocs eSIM orchestration platform was recently ranked as number one in the market by independent analyst field Counterpoint Research, recognized our growing list of eSIM customers for introducing a world with Eastern Norway and Great Australia. Turning to slide 11, global service providers continue to invest in 5G monetization, including next-generation charging policy solutions to unlock future market potential of 5G standalone networks. One of North American leading service providers recently deployed Andoc's network policy solution on AWS to support millions of prepaid customers. Another example is Wintrae, a large Italian mobile operator for which Amdocs just completed a monetization project to provide a future-proof, 5G-ready monetization stack deployed on the cloud. This quarter also was selected by Myger Telecom in Hungary to provide the policy control function in the operator 5G standalone program. And we successfully completed legal transformation project with Melita Limited that enabled the Malta-based operator to federally monetize innovative new 5G and IoT-based services for both consumer and enterprise customers. Turning to network automation on slide 12, Amdocs is helping operators to prioritize 5G network slicing, which is needed to enable the rapid introduction of differentiated mobile services tailored for individual consumer or B2B customers. Amdocs recently helped Bail Canada to successfully deploy its first use case with an automated 5G network slicing solution. Andox also is bringing fresh innovation to a service provider rethink the way in which they manage and maintain network towers, which is also reducing their carbon footprint. Working with our partner, V-Hive, Andox has developed a solution which powers autonomous drone flight to automatically create a digital tree between of network towers much more quickly and safely than deploying trucks with tower climbing teams when they need to survey a site. Demonstrating early market demand, we are excited to announce today that Verizon has selected our solution to inspect its wireless network infrastructure output. Now, moving to our fiscal 13 outlook as presented on slide 13. As we repeatedly said over the last few quarters, Amdocs and our customers globally are not immune to economic uncertainty, and we are closely monitoring the overall operating environment during the current period of rapidly shifting market dynamics. As a key technology enabler and a trusted partner for the global communication industry, we believe Amdocs is positioned at the heart of a multi-year technology-driven investment cycle centered around the major long-term trends of 5G, network automation, digital modernization, and cloud. We also believe in our unique business model, which produces a visible, highly recurring revenue stream from the mission-critical systems we support under long-term customer engagement. Taking everything into consideration, we are reiterating our full-year fiscal 2023 revenue growth outlook within a tighter range of 7% to 9% in quantum currency, the midpoint of which is unchanged as compared with our previous outlook. On the bottom line, we are reiterating our outlook for non-GAF diluted earnings per share growth of roughly 9% to 13% in fiscal 2023, which, as you may recall, we already raised in the prior quarter from our initial fully gross target of 8% to 12%. Accordingly, we are well on track to deliver double-digit expected total share return for the third year running, including our dividend yield. With that, let me turn the call over to Tamar for her remarks.