Earnings call transcript Q1 2023

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Operator

Thank you for standing by and welcome to Amdocs First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd to introduce your host for today's program Mr. Investor of Head Smith, Relations. Matthew sir. Please go ahead

Matthew Smith

Thank you, John.

today GAAP. call we that will in two our with to to that I risks our of are information including discuss statements to Amdocs' begin, need your not SEC comments of accordance certain disclaimer some described presentation. and notes financial attention be subject we prepared It forward-looking and Before the that may as statement in uncertainties on is slide and filings

For our measures, measures refer furnished release, regarding on more reconciliations you including also SEC will earnings financial information Form non-GAAP of use X-K. today's of be we these the which with to

today Participating Rapaport-Dagim, and President Shuky Tamar Sheffer, Executive Financial Management on me and Operating and Limited; the Chief call Officer. are Officer with Chief of Amdocs

call, also immediately earnings of Relations Investor are copy of remarks we on call. presentation, today's as a providing conclusion section found be which always, posted today's prepared support following be To the can of the this our And website. a will

strategic will agenda, we XXXX fiscal framework. achievements financial the for you today's business against and recap quarter On we'll executing our made the continued first update have on progress and our growth Shuky

financial our our fiscal provide for additional forward Shuky first and guidance. by commenting details quarter which Tamar will finish on the year on after full outlook XXXX, will financial performance

over it I'll Shuky. that, to with turn And

Shuky Sheffer

modernization, Starting cloud on everyday which our people network results, I monetization, incredible good and quarter to go world on six, to call everyone toward slide multi-year Matt the journey who our afternoon and today. pleased us around to Thanks for digital customers’ strong support to XG joining am thanks automation. migration, sincere first work report the

in a above XX-month X% of high, $X.XX billion, was per higher approximately diluted momentum, was on which of constant up record guidance. due the billion from to above a year-over-year better rate. lower-than-expected revenue midpoint primarily ago a effective we $X.XX backlog was profitability share delivered $X.XX, QX the tax a sales of our currency and base also X.X% up guidance non-GAAP and non-GAAP continued record a and earnings range, on revenue year

financial our profitable fiscal a XXXX and that deliver remains in Amdocs to to global year a Overall, is uncertain. and strong growth macroeconomic positioning within consistent start, backdrop off challenging

To me to on provide shown our and begin, QX. operating slide we value-driven as new with context during performance, saw strong eight. To our momentum sales financial let existing review continued further customers achievements, cultivated partnerships and quarterly

like and and T-Mobile, Notably, the Claro X we in and Malaysia. Americas; Tier Dish, in in Europe, in the customers AT&T, deepened Verizon, with Philippines; Comcast, our operator Brazil relationships Vodafone long-standing Three Group Globe

including in Additionally, where will we UK system base further America Technology Services several the replace Móviles the new Latin Colt customer Telefónica by charging winning diversified El Amdocs’ Salvador logos, vendor. online Amdocs’ existing and in

Amdocs Discovery, Paramount. past Vubiquity new studios servicing Warner strategy Disney, and has Brothers, also the including direct-to-consumer several year over leading continued to of winning and extensions MGM, execute well projects on and platforms, its

migrated from share and happy over all which Oi am Brazil, AT&T, XG acquired At use T-Mobile, platform. our our customers in that addition QX which Bell cases postpaid I XL, execution, to standalone, Claro project others. Verizon, already to LTE Brazilian have quarter, Voice many to another deliveries as at new Turning major to to for the we was platforms successfully monetization Canada, such included allow nearly Claro great and milestone policy expanded been

as pool. highly is outcome global project constantly our unique of delivery I believe optimize model, regional is tools skilled our execution our which site high direct rate we Amdocs’ methodologies, talent a and of and refined workforce, global successful automation, strategy

of Black over to which also this execution customers delivered the volume quarter season. and business, the for services I'd managed Friday flawless periods holiday like of our competency peak highlight the retail

In product during and investment our QX addition execution, further technology and to a and extended R&D maintained leadership. of we level high sales

advanced most and version Congress meetings are Customer the Experience Barcelona, planning and where a in the many at Amdocs significant Mobile partners. The we will Suite with customers of fast-approaching World service and be presented offering presence

We will also Lab. from with be Dallas and resulting partners providers, our including cases, showcasing those use collaborations XG innovative Experience solutions service our and enterprises, exciting at

and look pillars, growth evaluating and as To disciplined for Amdocs a forward Amdocs exciting constantly broad move M&A complement M&A previously our strategies. can to acquisition pipeline that deals did not announced of suitable is as opportunities our accelerate we continue Mycom arise. opportunities, growth to remains while when the of OSI committed planned,

recent want moving X. I domain, Before slide ESG the shown on, achievements to our proudly as in on recognize

the As previously America Amdocs for Jones the year. fourth Dow included S&P for in North Index was Sustainability announced, consecutive

various committed. are are which of has towards today believe we pleased announce that XXXX member Gender-Equality included Index, we Additionally, been diversity which a to a goals the Bloomberg to Amdocs the we testament to progress as achieving Amdocs’ is

sustainability sustainable earned improved for A-, disclosure was B Our responsibility has and rating environmental CDP several at and from our has the India operations in Information LEED Preferred new in as of certified this Workplaces for campus to Gold our XXXX-XXXX. Amdocs been and design Israel IT its Enabled recognitions commitment Technology state-of-the-art We quarter. to other Most also and one corporate recognized Services

the Amdocs’ we global committed our reflect and make Prestigious achievements their positive base of and desire like I'd environment making these essential to a in and these operate, impact on thank employees for as communities talented ESG in such possible. the part like recognitions which to

of IT strategy, help to and accelerate migration market-leading providers innovation to XG automated me operations, digital experiences our to by let growth the update create to experiences bring deliver seamless the networks. with cloud, in Now, transforming monetize connected service and provide a to new respect aim dynamic real-time, which is launch progress services, multi-pillar

of number cloud services. providers suite embarking slide end-to-end platforms that on a supporting on growing see with migration we multi-year journeys service and Starting our XX, of is Amdocs cloud

data a that T-Mobile to customer its am experience cloud-hosted to on-premises Networking advanced and I modernize provisioning capacity, greater innovations. workloads generation from Amdocs latest the the to platform adoption XG of to enable Suite, recently application and rapid chose flexibility improved of Ireland and Intelligent Vodafone an enable happy cloud XG and report services, and Amdocs’ next selected to migrate Amdocs

long-term X security two a full operator Asia a in leading Southeast Additionally, towards to BSS enabling cloud while selected thereby smartly improved regional and native has defining cloud Tier Amdocs environment. to at affiliates, Amdocs’ a existing its transformation suite migrate operability, the journey modern large

new of the Hub new slide Moving experiences. cloud. drive and for is on BXB including Amdocs personalized to on to on Amdocs customer with Comcast projects, XX, Mobile upgrading more Data Digital providers Transformation power the several are data recognizing service the working

cloud-based Three multi-year services data a migrate Under engagement, timely data-driven architecture managed selected to customers based to its serve decision-making. on a Amdocs modern, recommendations to UK

subscribers. in agreement, Finally, leading nearly under the growth, mobile Amdocs agility, data is Philippines XX drive to Telecom, Globe time-to-market providing empower million operator the Globe on efficiencies. public and AI-driven with managed delivered cloud, a insights service and the will business Implemented to services multi-year a operational

fixed Amdocs XG’s success important to as Turning an wireless XX already monetization, and is slide one and of access part. is playing stories first meaningful emerging rapidly XG

America internet features for North enhanced customers. which technology a operator support, utilizes instance, device wireless in simplify Home and management, For fixed broadband AI and Tier security selected customer Operating recently to X leading Amdocs’ automate System, introduce

charging providers the helping Macau, billing era monetization Amdocs agility new infrastructure service is and broadly, rapid enabling telecom launch to by commissioned online XG XG was in modernize of CTM, modify a the its More standards and to products. leading recently support in XG build and to Amdocs by operator

and which Amdocs a at with We recently extended products to enabling modular selected launch systems our monetize Romania, speed. revenue and services managed management it new its modernize Vodafone relationship to platform, services with

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extension signed for Amdocs’s Corporation development extends KT and Catalog support Amdocs Corporation charging ongoing KT fast-track in Turbo until South for XXXX. And which services Korea platforms, three-year and and a

XX. and and and cloud-native, better processes to ordering, consumer provisioning are in customers. fully providers across massive investment services activation Global considering Turning Slide on enterprise automation for complexity scale digitalized service to manage network

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has Manager. empower delivering world. The Resource in lines, Colt Letter a Colt’s UK, cornerstone focused solution to and Amdocs around on similar Along which the Services of employees on continuous Technology signed will in infrastructure journey, Agreement the services, customers its the be for deliver Amdocs modernization digital

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on review, Running let interesting we implemented an project Bank comment out that my Hapoalim. recently strategic quickly me for

financial Bank and such institutions, largest Hapoalim offers, Israel’s leading using and of as services products, one is rapidly Management lending, time-to-market to agility. customer-centric digital Catalog vastly software services, deploy create improved through As Amdocs'

a and macro to of are market-leading for our multi-year that with investment XX. the remind heart economic cloud-driven global we as outlook, immune delivering and digital you continuing well-situated Amdocs let and Slides systems network current year fiscal transformation. customers to reputation To moving cycles, not begin, of XXXX on uncertainty. Now, is software closely and presented the global monitor are to XG period cycle automation, XX at Amdocs me the our mission-critical our successfully and strong services, and

and partner, we well point and cost next-generation demonstrated see as environment, vantage of today. very reduction services opportunity accelerate an and customer Amdocs key activities increase highlighted continue healthy attractive service the in respect a we current customer customer enabler, trusted many In level of to as pipeline and help our their requirements. efficiency, to also providers to experience, application engagement by From software improve collaborate is the as placed technology

from highly model, our more resilient business in to resulting our recurring strong under multi-year streams confident are revenue systems We and due of visibility unique engagements. the which mission-critical business support is

on together Wrapping everything XX. Slide

fiscal year XX% of three contributing positively basis operating the between our year. X% reiterating We a regions full with guidance full revenue all are on growth over currency constant to for in XXXX,

On The managing financial our raising XX% accelerating by of points of outlook automation, to XXX roughly the for X% efficiency range XXXX. performance to our new to bottom tightly QX earnings costs. growth commitment the our by strong driving we a profitability further basis improve fiscal line, midpoint are reflects outlet and and in diluted per share non-GAAP

of we to XXXX, to cash our are approximately which of free return track guidance in fiscal to plan shareholders. achieve million we $XXX Additionally, majority flow on the

With to Tamar remarks. me turn let that, call a for the over

Tamar Rapaport-Dagim

and joining you Shuky, everyone. you, for hello, us. Thank Thank

billion, report strong XXXX. of at the on kicking fiscal results financial XX. financial quarter first a up Record highlights Turning year-over-year $X.XXX to year of our QX was off revenue X.X% range Slide to solid end in happy guidance higher I'm constant approximately our to start currency.

roughly and if On a guidance increased the above we currency X.X% of compared million the revenue reported to foreign guidance exclude even our movement of $X assumptions. favorable was basis, midpoint

we America our of a behalf on up. customer year. track ramping On quarter, we North grow a but are record the the basis, for full first customers. currency Rest during normal basis full beginning World year regions Europe on to operating delivered anticipated all activity, XXXX quarter, is at of growth fiscal continue declined constant as regional on fluctuations year the to execute as expect and reflecting the in three accelerated we new for another awards projects the Altogether as of

statement. income the down Moving

and year while sequentially as investment. other Our non-GAAP R&D automation to up of margin tools XX a maintaining of basis the leverage level high points XX basis benefits began operating and sophisticated QX in improvements, and we XX.X% points a was ago efficiency up from

diluted of from of resulting lower-than-anticipated a was certain improved due tax line, On changes which internal rate range, on effective higher EPS non-GAAP revenue and bottom guidance non-GAAP in from structural our the profitability jurisdictions base in primarily above operate. $X.XX to we a XX.X%,

quarter was EPS GAAP first $X.XX of our the for was toward end fiscal which Diluted the high

restructuring by million lower around was model. tax GAAP to a hybrid as global of quarterly workforce rate of partially related site than the the $X.XX. This work effective anticipated guidance range due well our primarily to charges of guidance alignment in to strategy optimization of the as our $XX offset $X our

was our revenue Moving our XX growth consistent ago sales continued backlog XX. a months of high midpoint year backlog sequential with of the to billion, On X% a $XXX million, basis, range. a was by momentum. record XX from and guidance Slide reported our months at $X.XX reflecting up

revenue leading XX Our months served a averaged months has over XX business, backlog forward-looking of having our traditionally as around XX% indicator years. good the consistently of

XX. Slide to Turning

$XXX of for revenue. accounted year of revenue was First XX% X.X% and quarter managed million services ago up from total a about

new Romania quarter, happy TV already to to Globe mentioned DISH improved managed services expanded experience DISH billing services customers. this a report UK, and Vodafone agreement Shuky deals Telecom and that of an Three offer will for Amdocs managed addition the In I'm signed which commercial

our include remind relationship XXX% and To our further. our resiliency modernization the projects, underpin recurring under expanded renewal multi-year rates business you, and near managed with may sometimes of revenue even services engagements streams, activities deepen which engagements

of to turning while sheet sequentially. highlights Now in sequentially DSO on receivables increased and of revenue $XX the balance flow XX unbilled by deferred cash by the days net slide days and difference XX. QX, declined XX million

Free timing were capital but from in was operations flow the million payments approximately $XX and holiday We the QX. flow $XX received subsequentially were cash and in flow the which of expenditures. less $XXX net around of for impacted of cash million by collections, million, DSO due generated of free roughly in $XX period, January. This cash in comprised which cash quarter were million

We taking with are flow in XXXX, line free expectations, the reiterating tracking our seasonal consideration free payments annual cash of quarter. into our $XXX normal flow cash the half timing full of in outlook first fiscal in million, of year with second the bonus roughly

QX growth. and of $X.X of billion, balance ample business sheet to capacity support we we with needs, a to our cash the Overall, strong liquidity fund strategic ongoing healthy approximately including balance borrowings roughly retaining Moreover, aggregate million. while $XXX have ended a

shares We and cash of shares million of our XX. repurchased our $XX paid the $XXX quarter first allocation $XXX to Turning -- the of in on in slide first million million. capital quarter dividends

of X.X% current cash of Amdocs mentioned, full million for I $XXX flow year, market free to equates which we healthy yield As flow about just a the track cash remain free generate on to to relative approximately capitalization. fiscal

a of roughly conversion assumes non-GAAP income. XXX% to rate outlook Our net relative

our our to the to return our expect allocation program. shareholders Regarding repurchases XXXX, of dividend capital we of way in and by flow fiscal cash majority share year quarterly payment free

slide on outlook our to XX. turning Now

full scenarios. guidance As we in we we quarter the remains have are certainty, consider which level business Thus, predict what be the today, Shuky second current most the business based all we and of year the the likely indicated earlier, macroeconomic to elevated and but cannot information fiscal environment. financial prevailing reflects operational closely outcomes monitoring on XXXX possible

line range by to Visibility basis in of track pipeline on and are We XX in to this XX% year-over-year backlog it. midpoint to solid the record of deliver on guidance supported is we our revenue constant strong long-term X% growth QX performance, with a the currency a our XXXX. in see outlook months fiscal

an year year-over-year within Our X% of billion. $X.XX within On annual to X% range reported outlook of a revenue growth billion a we fiscal second compared year-over-year to revenue quarter with includes full expect basis, X% to previously. improved $X.X X% range as

an year-over-year previously. year-over-year unfavorable approximately with compared outlook new foreign of an and impact currency The of impact anticipates unfavorable X% X%

to income around of Moving few target line, of net fluctuations impact our XX.X%. non-GAAP to quarterly range and will midpoint anticipate quarterly margins foreign interest of operating of and the dollars that range anticipate currency the the statement, our Below to hedge operating basis. in fluctuate continue we million the lines, a on XX.X% expense cost other a we non-GAAP annual down

will annual year the remain range for within rate XX% non-GAAP target XXXX. to XX%, of tax We expect fiscal our that effective an unchanged full

non-GAAP fiscal XXX well to together, running third an to are the of of earnings return per the outlook X% our which track about XXXX, full on raising of we shareholders' year fiscal basis of a XX% with midpoint for Overall, for points share and about double-digit total our dividend for everything prior to new growth improvement deliver Bringing year plus represents are our for outlook the compared X%. a diluted growth, including share in XXXX, non-GAAP per guidance. yield we earnings range

you, to back Shuky. that, With

Shuky Sheffer

Tamar. Thanks,

steady profitable from with deliver tell we strong fiscal have putting start we As very us our a you are year in growth. to can XXXX, great of to remarks and probably another made today, position the pleased

to that, With happy we're take questions.

Operator

from Instructions] [Operator of first from question And comes Certainly. the Citi. Shirvaikar Ashwin line our

please. question Your

Ashwin Shirvaikar

and Hi. good Thank on the you, congratulations quarter here.

Tamar Rapaport-Dagim

much. you Thank so

Ashwin Shirvaikar

Yeah.

bookings to sales the want and I start So commentary. with

think but And incremental terms added backlog. I in history of sound top your the of you there. commentary dollars also a is like positive, Amdocs your do in to quarter comments had type immune not

of new decision-making, regards let How with ask terms to of things? in your -- in client terms terms me investor contracts, of your speed So what of projects, those you're it sales? is evolving size types in conversations of seeing of

Shuky Sheffer

are as of highly not for very our that's see growth we so our strategic we yes, company, The not I around are on demand ourselves Hi that like Amdocs, we are lot everything strong a we we but a overall, to immune that customers. I area immune. we us. for think are Ashwin, going mentioned, But today mean, to services. of

network wants they Everyone use in deploy cases, XG to fixed cloud. successful automation. wireless, wants the -- when to move Everyone be to

So while we can the important see pipeline rich with project I customers. These see that a tell ahead are some very and them we our us. for that there of we is uncertainty, continue highly

Ashwin Shirvaikar

mean, quarter, part? be the forward-looking towards the during there? And charge upper then, not financial what benefits still should – you more now are And of why seeing the the there, range. But understand. of from There's I have they are are midpoint know obviously incorporated? did I margin you the layoffs. I it

Tamar Rapaport-Dagim

now a elevated where look an think of the range sure range. you XXXX on of margin raised we for are fiscal and we expansion, recall, the So margin I'm the the when midpoint as for operating we in beginning year, I guiding general, for opportunity

in tools of done our well efficient and the deliver way. think, of terms of as how automation do to more kind bring impact heart we things. unique and a as customers of we opportunity And the how we value I continue at and many in investments see this is, methodologies So to doing is the things have definitely in of to

like element structure, that considerations very And that and are managing when as time, terms global Another in around cost play. to strategic our in our a speed world, are et and thinking are think, a important the that locations things access deliver we think and cetera. locations, that we on from the about what labor global with to as geographical to execution cetera, our way time world we how looking as see to many also delivery in change do has around skills, to we smart There of well about leveraging with et has et to I sites proximity major, is customers, something managing cetera. that may do demand differentiator

to course, with make about the of in career in in that investing in we And actually that how can company. retention way and we company that the and they their as as sure it's how people developing a their benefit well rates in talent skills investing are they the are our them are managing are high moving

So Ashwin, we are very levers. focused on all of these

how either in are things, site our not And time, that whole But company yes, profile. at customers. and think I to some scheme moving do adjustments same have structure away it's needle shift our it's of a we margin it's right deliver is have something that to we we grand to the that we how looking we healthy done to mentioned. from strategy But the the the adjust on the thing of workforce that felt in the

Ashwin Shirvaikar

Understood.

to nimble respond. being about more quicker and So

Tamar Rapaport-Dagim

Yes.

Shuky Sheffer

Yes. Definitely.

Ashwin Shirvaikar

you. Thank it. Got

Operator

question. Horan next Thank Timothy the comes you. our our next One from from Oppenheimer. of And question line for moment

question, Your please.

Timothy Horan

of Kind question. guys. Thanks, a qualitative

more recognize you bit revenue? them and at you're And services of more this you cloud-based platform, customers do Can hyper did more helping kind more? drive think have little cloud you the automate help Can you point? help more? them at a your As a customers this

Shuky Sheffer

the about Was moving the question to cloud?

Timothy Horan

Yes.

it more the your customers for cloud. mean how an much I of as move is you you improvement As to

Shuky Sheffer

basic mentioned the have that peak for moving always there in mean an and are the question. holiday, like you service value with Tim good I we you, a to customer. is Thank amazing remarks very get many and some the elasticity, value retail just environment. like and prepared we our There to season many, Black cloud Friday

normal. buy So today, environment, much you which hardware Black is than the to to need in Friday, the on-premise bigger the support

much you So when think elasticity, of but get operational -- then better to many get cloud, it's the some cases, tools. I modernization part you environment, environment, much agile a main the in you And move secure

can the do faster cheaper So and helped said, also I and elasticity. much as it's you be and more with things competitive,

and giving today. that So benefits I look And many it, more all are at market unique think you much cloud. security faster, very to our to much if to changing offer everyone agility, move many, secure there customer things seeing this the the environment, do trust

many So which all it's holistic all, of value very I a comprise in proposition, areas. many, think many,

Timothy Horan

add And for Are that, -- pretty and engagement your your important for be way a with just to your customer a breakthrough. use time artificial to becoming to to there? and seems big pretty to customers systems? And for maybe there ChatGPT is you ChatGPT investments you intelligence now is increasing

Shuky Sheffer

data we today, to in consumer or way a are consumer our a their customers that's about what we developed as Obviously, have of be what serve I speaking, use the Amdocs definitely, are our artificial a system, right is lot cloud intelligence. I think how generally helping offer. And their mentioned customers But customers. So understanding, and demand talk environment about the will better evaluating this. we we in we that

them. So growing to this more and of customers deploy our know consumer better on and what their based serve this to they or think, is type something businesses more which solution about is, we I

we can it much think now. we mature integrate believe can to have probably evaluation platform. how we call place to some right obviously, it. our more are some looking or quarter of another a thing are in I as in be ChatGPT, And it we We application, will this in that that -- speak, our Regarding looking center two

Tamar Rapaport-Dagim

the think of on a Just I to it our customers. important to context for automating, are things the how it's also in about we as do think we topic, how AI add

we when a zero-touch So self-filling and processes, and... that think into like about of rules decision AI-driven lot operations going things

Shuky Sheffer

is the from This operational perspective…

Tamar Rapaport-Dagim

this more innovative we much enhancing be can to our value in technology-led is feel operation how customers. We and deliver to our

Timothy Horan

guys. Thanks

Operator

moment And next question the question. line comes Tal from from America. One our our you. next of Bank Liani of for Thank

Your question please.

Unidentified Analyst

Hi. It Matalan Brookston for today. of Tal, is Bank [ph] America

Just from two questions me.

have in of given at I was to commentary growth bps -- be that happening announced I revenue looking around First, that's growth, I understand growth of going just guide. wanted the breakout the organic guide to to not there's year the of last to your and given just on XQ, the factored without anymore, that deal XX deal. if that was wanted know organic as any was

Tamar Rapaport-Dagim

are from and not going be year. that the growth though points coming the for through, are fact we of can deal, our basis growth additional the reiterating come of XX expectations deal even that revenue, whatever the line is to this given was incremental the therefore, coming you guidance organic So, understand to on we this supposed and from hold

that much, pretty the growth. organic say based you growing So on year can is revenue

the organic There year, last but impact deals not small of but is we we've to milestone happening. are definitely in pleased would year full marginal, our an is performance despite see I improvement done say, fact that's some,

Unidentified Analyst

Got it.

Okay.

Tamar Rapaport-Dagim

to have. announced be we is the business counting that and the known not Just are based we been on make future numbers. assets This clear, the not has current M&A on to any that

Unidentified Analyst

That was to going one Perfect. Okay. be follow-up.

the other So follow-up. I'll then to pivot

have quarter Just deceleration concern any spending to you there's change see And if progressed? wanted in noticed providers? the with incremental first service any as

Tamar Rapaport-Dagim

signings done the strong Look, on sales QX. momentum we've in of deal the looking and

outcome strength and $XXX of million the backlog the versus the the record to You reporting backlog fact clearly sequential of quarter. number in a see strong we're of increase prior and very the can that a

We about both to solid pipeline. an lot a as to cost enable capabilities are We're focusing accelerate structure. them how create efficiencies people naturally, that of as and tools Yes, are a generation, bringing immediate them impact, well impact. a seeing deal with revenue and shorter-term sometimes

be spot help services like or the accountability digital what same modernize the our predefined for KPIs ready with can full sweet the services customers our cost the for their that. call We multiyear we a agreement, example, is together world. committed at systems, take to suite, the managed a For move XG provide managed and product transformational and model And and both. of time, we them of cloud, under our the structure,

So, we or it coming their on are how either some go model and with appetite to this want depends it. we about of

Unidentified Analyst

Got much. it. Thanks, so

Tamar Rapaport-Dagim

you. Thank

Shuky Sheffer

you. Thank

Operator

Thank next from Will the from question moment comes our question. next you. And our of One for Power line Baird.

Your question, please.

Will Power

of just revenue I'm year-over-year. weaker was It results. Thanks. the this I Great. but Rest that on is I flip course, looked grow. the expect like there first World level. the guess nice really still year-over-year of North you strength, curious couple on of there's just drove understand a on durability trying But to higher that question to of on color strong, I'm mean, what America, I European guess, I side, geographies. know the if any growth. other

level the drivers and that trying growing confidence the of rest world business So, to I'm year-over-year? understand of just

Tamar Rapaport-Dagim

Yes. Sure.

pleased basis, currency strong. very a be on headwind. And fact is currency performance now quarters look a are remind we unfortunately, didn't the to with Europe, yes, America continues the So Europe was because the to talking North but constant the as number, specifically, growing that you, of for big much I've reported in about been some

you the of a have we was not where the can when currency now Europe quarter see clearly Finally, reported growing. number a headwind,

growth. not only it's just reported So a constant a currency also it's on growth, level

our some seeing in been Europe activities for we is, fact very a the momentum And of strong and have new business. now, wins quarters fueling

time recognize So very in it revenue, of starting usually between nice continue signings. signing and a we takes to see deals, bit to

already a the using have that it's that in gone past So the into not backlog. are we way just deals

We are to deals. see new continuing

other pipeline the organization and in and are Three with of that could we and called and well seen name for many Vodafone You've example, as examples with not expansion Europe, specifically. that we the UK, as logos relationship new talked about, there

happy and we are momentum the we continue. So, will it are feel seeing, we about

beginning rest specific rest as project and like sometimes of live the project our the is also depends the the then go timing a regarding and of new activities quarter the And and on in they business world naturally we certain there of activity world, in and of a mature where project the matter QX does had awards. -- the just of

when will and softness, hand, see the QX the growth recovery we So in region. some see for with confidence have, the we fast that's on the that a we year one but full

Will Power

Okay. the I kind in continued operating for one forward? you expansion comments could key is on have the And know I the has drivers what any wonder then, margin gross on Tamar, focus, of outlook more. you of up gross slip and margin the of tick more kind I think, that if but margins, to if I all going

Tamar Rapaport-Dagim

are say, have such in versus investment usually the we and accelerated as so the elements R&D, gross the in investing So as on are we focused we R&D. margin operating underneath we than more R&D, margin and the

the standalone significant se draw But necessarily do conclusions And and you investment automation some that. better gross execution goes that this it's of on should a into not our basis per and from take helps us margin that more efficiently.

the SG&A necessarily expected items On that hand, for the Again, see into can specific in example, there that a next bit higher quarter. consistent other some the not you go that, quarter. are this was

of that other range a or bottom will company. margin continued on on to elevated points margin, able operating of the new we the around we direction, basis the our maybe we the the midpoint of activity line operating few will feel very be think direction. be why one focused execute of consistency on tens that's give this We take and are that So the

Will Power

Okay. Understood. you. Thank

Tamar Rapaport-Dagim

Thanks.

Operator

the program. [Operator hand to session question-and-answer conclude Instructions] back does like remarks. the Smith And further this to any today's of program I'd for Matthew

Matthew Smith

in Thanks. out Yeah. reach Thanks, do additional and you and from interest John, joining your to any IR hearing if We us questions. group please today's do forward with you Amdocs. everyone, And to great have ongoing soon. have look that, call a here thanks, evening. And the for for in

Operator

This conference. today's for your and Thank does in program. conclude gentlemen, you, the ladies participation

disconnect. You day. may now Good

Amdocs Limited (DOX) 31 Jan 232023 Q1 Earnings call transcript