Amdocs Limited

Thank you for standing by. Welcome to the first quarter 2025 Amdocs 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. If your question has been answered and you'd like 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, Nat Smith, Head of Investor Relations. Please go ahead, sir.

Thank you, Jonathan. 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 6K. Participating on the call with me today are Shuki Sheffer, President and Chief Executive Officer of Amdocs Management Limited, and Tamar Rappaport-Dighiem, 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 hosted immediately following the conclusion of this call. On today's agenda, Shuki will recap our business and financial achievements for the first quarter and full fiscal year 2025. And we'll update you on the continued progress we've made executing against our strategic growth framework, including GenAI and our continued sales momentum in cloud. Shuki will finish by discussing our financial outlook for the full year fiscal 25. After which, Tamar will provide additional details on our first quarter financial performance and our forward guidance. And as we've communicated previously, Shuki and Tamar will also compare certain financial metrics on a pro forma basis, which adjusts prior fiscal year 2024 revenue by approximately 600 million to reflect the phase out of certain low margin non-core business activities, which were substantially already ceased in the first quarter of fiscal 25. And with that, I'll turn it over to Shuki.

Thanks, Matt, and everyone. on joining us on the call today. Thanks to the commitment and dedication of Amdocs employees around the world, Fiscal 2025 got off to a solid start as we continue to deliver the cloud, digital and gen AI-based solution that service provider needs to grow revenue, improve efficiency, and drive immersive next-generation customer experiences in the agentic area for millions of consumer and business enterprise every day. Reviewing the financial highlights on slide six. First quarter revenue was 1.11 billion, slightly above the midpoint of guidance, adjusting for negative foreign currency movements, which were more than we anticipated. Profitability jumped by 310 basis points year over year, and 250 basis points sequentially. Reflecting the phase out of certain non-core low margin business activities, now ongoing initiatives to derive efficiency gains. Non-GAAP earning per share was $1.66, exceeding the midpoint of guidance, and we closed Q1 with a healthy 12-month backlog of $4.14 billion, an acceleration of roughly $80 million sequentially, and an increase of approximately 2.7% from a year ago on a performer basis. Our benchmark backlog position reflects, among others, several key wins this quarter, as highlighted on slide seven. In North America, we expanded our activities with AT&T in data and intelligence and increased support for AT&T Cricket. We are also leading the billing system consolidation at Bell Canada and recently began collaborating with DreamWorks Automation. On the international front, we saw continued sales momentum in clouds. Adding to the five-year modernization and BSS migration deal we announced with Vodafone Italy last quarter, we recently secured a new cloud office agreement with Vodafone Zego in the Netherlands and a modernization and cloud migration award at CT Montenegro, a Deutsche Telekom subsidiary. From the standpoint of execution, we are supporting a large number of customer projects, including some of the largest transformations globally. Demonstrating our best-in-class deployment capabilities, we continue progressing major transformation of customers like AT&T to mobile Bell, Rogers, Comcast, PDT, Telefonica Chile during Q1, and supported successful platform launches for M1 in Singapore and Optus in Australia. I'm also proud of our managed service operation, which delivers flawless mission-critical support for customers over the peak retail volume periods of Black Friday and the holiday season. To remind you, managed services support a high level of business visibility for MDocs, reflecting the combination of multi-year customer engagement, recurring revenue streams, and renewal rates of close to 100% over time. Along these lines, we have recently extended our managed service agreements with Comcast Xfinity Mobile, Comcast Business, and Claro Chile, as Tamar will reference in her remarks. Moving to slide eight, let me provide some recent examples regarding our multi-pillar growth strategy, which is designed to provide our customer with the market-leading innovation and technology they need to accelerate the journey to the cloud, digitally transform the customer experience for consumer and B2B, monetize the future market potential of next generation networks, and deliver dynamic, connected experiences by streamlining automation, complex network systems, and to simplify and accelerate the adoption of generative AI. Beginning on slide nine. Cloud continues to drive strong sales momentum as the market increasingly recognizes Amdoc's unique ability to support complex multi-year cloud journeys. For instance, at Waterfront Zygo in the Netherlands, we are providing cloud operations services and spin-offs as an extension to the demonstration of the cloud migration project we announced last year. Amdocs has also been selected by City Montenegro, a Deutsche Telekom subsidiary, to upgrade and migrate to the cloud in its existing Amdocs charging, ordering, and CRM system. We believe cloud will remain an important growth engine for Amdocs in the foreseeable future, as most service providers are yet to fully adopt the cloud, and many more are still in the evaluation stage of the journey. Overall, we are on track to deliver double-digit growth in cloud again this year, supported by our marketing position, strong end-to-end cloud offering, and a rich pipeline of opportunities. Moving to slide 10, supporting the digital modernization requirements of our customer remains an important growth engine for Amdocs, as demonstrated in many recent awards. In Canada, Amdocs is working closely with Public Mobile, one of TELUS' mobility brands, to enhance the digital experience of their self-service application. Optus, one of Australia's largest communication providers, has enhanced its enterprise customer experiences by offering a more agile and responsive way to engage and support customers through the deployment of Amdoc's customer experience suite. AT&T Mexico extended its agreement with Amdoc for the MarketOne platform, expanding capabilities to include a new marketplace that will accelerate OTT resell, demonstrate continued trust in Amdoc's ability to derive modernization and monetization. I'm also pleased to announce that DreamWorks Animation is collaborating with Amdocs on an advanced platform that will streamline production workflows, ease complexities, efficiently manage hundreds of thousands of digital assets, enabling DreamWorks Animation to better meet the demand of its production pipeline. Additionally, we remain delighted by the rapid adoption of ConnectX, our cloud-based telco-in-the-box solution powered by AWS. To enable digital experiences in its MV&E and MV&O services, ConnectX was recently chosen by Systegra, a Nigerian service provider. This deal adds to ConnectX existing customers such as AT&T and RIS Wireless in the US, Winiti in Brazil, and Mellon Digital in South Africa. Turning to monetization of Flight 11, ANUS is delivering cutting-edge technology to have several providers monetize next-generation network investment, including wireless for G-standalone, fixed wireless access, and fiber. In Canada, I am pleased to report that Andros is collaborating with Bell to unify their billing system into a single, cohesive platform. We also extended our collaboration with Odido, one of the Netherlands' largest telecom providers. Under this long-term agreement, Ambers will transform this customer charging system into a fully converged and cloud-based charging solution, enabling Odido to rapidly introduce new and innovative services to their users and users. These awards add to our existing list of modernization projects, including our previously announced five-year deal to transform the mobile and fixed line of B2C billing system of Altice SFR, one of France's leading telecom provider. Moving to network automation on slide 12. Andos is supporting the design and build of fiber networks investment in the U.S. and globally with our next generation fiber offering. This includes ProCom consulting and other expertise we have acquired to grow our capabilities and strengthen the relationship with existing and emerging fiber customers alike. Last quarter, we said a leading provider of fiber optic internet services in the U.S. has chosen Amdocs to effectively manage and streamline complex fiber rollouts. As a further example of our growing recognition in the market, BrightSpeed, a U.S.-based fiber broadband and telecom provider, has selected Amdocs Resource Manager to operate its network inventory, improving their processes. As an additional highlight, Amdocs has successfully completed the lab certification of Safar Rapids for vRun, enabling Verizon to increase capacity and reduce compute power consumption during rollouts. Turning to slide 13, Amdocs is laser focused on helping service providers to unlock the transformative potential of generative AI. To start, Androx recently introduced additional co-pilot capabilities for B2B, customer care, and commerce in our latest CS quarterly releases. We've also unveiled enhanced generative AI capabilities in the Amaze platform, featuring GenAI agents to support next-level customer engagement and agentic capabilities across scales and sales domains. To further extend our position, As a leader in data, AI, and generative AI, we recently completed acquisition of Profinet, a data science, engineering, and intelligence company based in Czech Republic. This acquisition is an important building block in our offering, but practically our data and general AI services capabilities helping us to address the rapidly growing demand for data and AI and general AI services in telecom and beyond. As to our sales progress, Etisalat in the UAE is a flagship customer of our Amaze platform, and we continue to work with them to expand their use cases and deploy them to better support the customer, including in billing care, knowledge management, and more. Similarly, AT&T, we are supporting as a long-standing partner to create improved experiences for the customer is leveraging our generative AI capabilities to improve customer care. Amdocs has historically provided data and AI services to many of our customers, including T-Mobile and Globe Telecom in the Philippines. The adoption of generative AI has created a new wave of demand for data-related services spending data readiness to bespoke Gen-AI use cases development to proof of concept. This quarter we successfully executed more than 10 generative AI POCs at global provider, thereby adding or expanding pipeline of deal opportunities. Finally, we have launched our generative AI experience center in Dallas together with Nvidia and Microsoft to showcase and reimagine what's possible for our customer. This fertility will allow us to host and our global customer and showcase the leading capabilities that can transform the businesses. Turning to slide 14, let me say a few words about the operating environment which has remained challenging and mostly unchanged over the last several quarters. To begin, we remain extremely confident in our relatively business model. including managed services which support highly recurring revenue streams and strong level of business visibility under multi-year customer engagements. Additionally, we believe we retain an ample room to improve our long-term revenue growth within our large addressable market of nearly $60 billion in size. I am also excited by the rich and encouraging deal pipeline in front of us. This pipeline includes several large and mature business opportunities, which we are working hard to accelerate and convert to formal awards by leveraging our pedigree of innovation, telco-specific Gen-AI solution, consistent track record execution, mission-critical operation expertise, and an unrivaled ability to support our customer growth, efficiency, and industry consolidation strategies as a strategy partner. We're wrapping everything together on slide 15. We are reiterating the mid-profile fiscal 2025 revenue growth guidance of between 1% to 4.5% on a performer constant currency basis, which includes another year of double-digit growth in the cloud. We are also on track to deliver double-digit expected total shareholder return for the fifth year running in fiscal 2025. assuming the midpoints of our non-GAAP diluted earnings per share outlook of between 6.5% to 10.5% plus our dividend yield. With that, let me turn the call to Tamar for remarks.