Amdocs Limited

Thank you for standing by and welcome to the MDoc's third quarter 2025 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 this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Matt Smith. Head of Investor Relations. Please go ahead, sir.

Thanks, 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 finished 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 Rapoport-DeGinn, 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 today's call. On today's agenda, Shuki will recap our business and financial achievements for the third quarter and full fiscal year 2025. And he'll also update you on our strategic progress, including our continued sales momentum in cloud and recent commercial developments in generated AI and data services. Shuki will finish by discussing our financial outlook for the full fiscal year 2025, after which tomorrow we'll provide additional details on our third quarter financial performance and forward guidance. As we've communicated previously, Shuki and Tamar will compare certain financial metrics on a pro forma basis, which adjusts prior fiscal year 2024 revenue by approximately $600 million to reflect the end of certain low margin non-core business activities, which were substantially already ceased in the first quarter of fiscal 2025. And with that, I'll turn it over to Shuki.

Thank you, Matt, and everyone joining us on the call today. Starting on slide six, Amdocs deliver solid financial results and achieve important business milestones in Q3 as our global team of amazing people continue to support the strategic business imperative of our customers with innovative cloud, digital, and AI-based solutions. Touching on the quarterly financial highlights. Revenue of $1.14 billion was up 3.5% from a year ago in a performer constant currency, exceeding the midpoint of our guidance with sequential growth in all regions and a record quarter in Europe. Profitability improved by 10 basis points sequentially, driven by internal efficiency improvements. Non-GAAP diluted earning per share was $1.73, a penny above the midpoint of our expectation, and we wrapped up the quarter with a healthy transfer backlog of $4.15 billion, up 3% from a year ago performer. Jumping to slide seven. Q3 featured several important wins, which showcased Amdoc's market and technology leadership and our proven ability to power the mission-critical needs of our telco customers. We have continued to see positive sales momentum in cloud, where we have recently won key modernization immigration deals, which expand our long-standing partnership with Alisa in Finland, Cloud Brazil, and a leading Eastern European operator, leveraging our end-to-end cloud offering and telco vertical expertise. In the emerging domain of generative AI and data services, I'm encouraged to say that our tech leadership and key partner collaboration with NVIDIA and Microsoft are bearing fruit as we start to convert previously discussed POCs into commercial success. Notably, we recently won strategic GenAI-related deal with three customers, including a leading U.S. service provider, Consumer Cellular, an EHUAE, And I believe this will provide a foundation to which we demonstrate mDocs' GenAI capabilities to further expand our customer activities over time. Turning to project execution, mDocs is engaged in complex mission critical transformation, closely working with our customer as a key partner. During CRUDE 3, we delivered a record number of deployments, achieving key outcome milestones at AT&T, Comcast, Vodafone Italy and Netherlands, PLDT in the Philippines, and others. Among the highlights, Bell Canada and AppDocs set a new benchmark by moving critical billing systems to the cloud, simplifying thousands of daily operations and interfaces in the process. We also supported the go-live of our B2B platform in Optus in Australia and completed BSS modernization supporting 25 million subscribers in Telecom South Africa. Rounding out my operational review, Q3 was another record quarter in managed services. Moreover, we have recently strengthened our managed services engagement with several key customers, including a leading service provider in the U.S., BT. in the UK, and Telstra in Australia. Turning to slide eight, I'd like to elaborate of our growth strategy, which is built to address our customer strategic business imperative and investment need to accelerate the journey to the cloud, simplify and accelerate the adoption of generative AI and data services, digitalize customer experience of consumer and B2B, and monetize next generation network investments and streamline and automate complex network ecosystem. The execution of our growth strategy is enabled by Amdoc's unique tech-led business model, which integrates cutting-edge technology across platform and solution, project deployment, and IP-based IT operation support. By continually investing in innovation to further extend our tech-led offering and capabilities, we are consistently able to bring value to our customers. We see every engagement as an opportunity to showcase our value position and gradually scale activities within our existing customer as well as new ones. A great example of our model at work is the way which we help our customer on their journey to the cloud. As we can see on slide nine, more customers are choosing Amdocs as their primary partner for public, private, and hybrid cloud migration. Using our comprehensive cloud solution, and telescope expertise. We are happy to announce the expansion of our partnership with ELISA in Finland to modernize the B2B platform using Amdoc CS Digital Suite deployed on Google Cloud GCP. This transformation will enable ELISA to accelerate time to market, streamline the lead-to-order journey, and deliver a unified experience across mobile and fixed services, all on a single converged digital platform. It marked a significant step forward, enhancing agility, improving customer engagement, and supporting ELISA long-term growth in the B2B space. We are also pleased to announce a new win with one of Eastern European leading service providers who will be leveraging our cloud-based customer experience platform, a solution designed to transform customer experience and operational agility. As part of this engagement, Amdocs will also work with the service provider to migrate newly acquired mobile customers to the platform, driving long-term efficiency and innovation. Among other notable awards, Amdocs has finalized an agreement with Claro Brazil to modernize their enterprise systems. I also want to highlight Amdocs' unique suite of SaaS-based cloud solutions, which are gaining market traction and contributing to growth. Our suite includes ConnectX, which is helping every nose and telcos to launch strong, powerful brands, create to target specific consumer groups with unique user experiences. ConnectX was recently adopted by Consumer Cellular and several other new logos, in addition to which we have deepened our collaboration with AT&T by extending our ConnectX platform agreement to accelerate its next-gen market offering. An example of a way in which ConnectUS is supporting our customer is Mobifone, a leading Vietnamese operator, which recently used platform to launch Saimi, its new digital brand, especially tailored to meet evolving needs of young, tech-savvy Gen Z subscribers. Supported by a strong sales momentum of the last several quarter, we expected to reach our double digital revenue growth target for cloud in fiscal 2025. Furthermore, we believe cloud will remain a primary ghost engine for Amdocs in the foreseeable future as most of our customers are only just getting started on their multi-year migration journeys. Turning to slide 10, we are intent to find our focus on generative AI and data services as a key ghost pillar for Amdocs. Let me take a moment to elaborate. First, a leading US service provider, assign an expanded multi-year agreement which extends managed services to transform its billing, commerce, catalog, and order management through Gen-AI power solution. This includes a Gen-AI-enabled AMAZE agent, bill presenter, to simplify billing inquiries and enhance customer experience. Second, AMDA is expanding multi-year agreement with consumer cellular as this wireless provider transition to an AI-powered MV&E. building on our recent deployment of ConnectX, this agreement leveraged Amdoc's AI and data platform, customer experience insight, and the main suite to transform telecom data into actionable insight and real-time predictive analytics for greater automation intelligence. Third, I am pleased to share that we expanded our collaboration with the UAE's largest service provider, EN UAE, through additional new Gen AI use cases. This development built on the successful implementation of our AMAZE platform and marks another step in the journey towards fully powering all of E and UAE's customer-facing channels with GenAI. Overall, I'm encouraged by this recent deal because they reflect MDoc's GenAI data service and leadership in the telco industry. and because they provide strategic foundation of which we can demonstrate value and gradually scale our customer activities in this emerging domain over time. Moving on, Q3 also includes notable customer development that was our additional key strategic pillars, as shown on slide 11. BT has awarded Amdocs a digital transformation project. starting date to be finalized, that will enhance the consumer customer experience as part of a multi-year managed services engagement. Comcast extended the multi-year commitment to leverage the Amdocs build presenter solution across all services. In network, we have extended an engagement with Australia's Telstra, and we are continuing multi-year OSS digitization, which will enable Telstra to benefit from our Gen-AI and network automation capabilities. Additionally, AT&T renewed its open-end policy management services engagement with Amdocs under an expanded low-term agreement. Claro Brazil expanded its policy platform agreement with Amdocs to better serve the evolving needs of its pre-paid and post-paid customers. And Globe Telecom in the Philippines selected Amdocs to deliver end-to-end RAN optimization services. This engagement covered the full spectrum of RAN services, including installation, commissioning, integration, testing, acceptance and optimization of its radio sites. Global service providers are also accelerating their fiber network expansion investment to enable converged value-added offerings which bundle broadband and mobile together. The trend is creating strong demand for fiber network design, deployment, orchestration, and digital infrastructure management solution which Amdoc is positioned to support with our next-gen fiber solution. For instance, we've significantly increased our fiber engineering services in support of AT&T's fiber expansion, serving them as their connectivity design partner across the majority of AT&T's markets. To further augment our capabilities and market position in fiber, We recently closed the deal to acquire the Telco Network Engineering business of Mobia, a privately owned company which will expand our fiber offering and fiber custom footprint in Canada. Finally, in next-gen network monetization, A1 Group in Europe has selected Amdoc's billing, charging, and product catalog solution to establish a converged cloud-ready monetization platform for its Macedonian affiliates. Turning now to the current operating environment on slide 12. We continue to see rich and encouraging pipeline of opportunities across our large market of nearly $60 billion. Our 12-month backlog position is healthy, and as I mentioned, we are on track to achieve our double-digit growth target in cloud this year. We are closely watching any impacts of the uncertain global macroeconomic environment on us and our customer spending behavior. Bringing it all together on slide 13, we now expect slightly better revenue growth of roughly 2.9% in pro forma constant currency at the midpoint of our fiscal 2025 outlook, equating to an improvement of about 20 basis points compared with our prior guidance. We are also on track to deliver double-digit expected total share of return for the fifth consecutive year, assuming the midpoint of our non-GAAP diluted earning per share outlook supported by significantly improved profitable and robust earning to cash conversion. With that, let me turn the call to Tamar for her remarks.