DOX - Earnings call transcript Q3 2024

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Operator

Good day, and thank you for standing by. Welcome to the Amdocs Third Quarter 2024 Earnings Call. [Operator Instructions] Please be advised today's call is being recorded. I would now like to hand the conference over to your speaker today, Matthew Smith, please go ahead. .

Matthew Smith

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

Rapaport-Dagim, non-GAAP today's financial we For Financial release, Chief measures, me reconciliations the President use more Executive of Sheffer, Chief information be measures, to regarding call and Shuky of SEC X-K. Officer also and refer will Amdocs of you the on earnings Tamar Officer. our which these Operating with with Limited; . Participating Management are Chief including furnished today Form on and

growth the today's presentation, are prepared and earnings found the will call. On a copy we can of momentum be of be And Shuky immediately cloud. we've this the always, XXXX, including agenda, remarks Investor fiscal also call, section quarter you recap we'll for our and AI sales financial update third support against as providing strategic Relations the today's which posted executing generative To and a continued our will made our of conclusion on website. our following progress continued achievements business framework, today's in on

XXXX, after I'll guidance to to financial will commitment by our quarter it and with the Tamar discussing year financial which . finish And that, continued will fiscal additional for ESG. our Shuky forward Shuky. our over details outlook provide our performance, third turn on full

Joshua Sheffer

us report like results commitment end to good third users day. quarter and for solid pleased today. seamless each would help experience employees and I'm connectivity all billions amazing afternoon their on Thanks, and provide to for customers our to user of our our fiscal everyone thank globally to joining Matt, to

Slide and constant on our adjusting from was record be the of in quarter of with a for nearly highlights line the financial X. key $X.XX foreign currency QX billion, in can after found unfavorable ago currency movements. The X% year guidance midpoint up revenue a

expectation, margin operating was rising share XX.X% ended per as year-over-year QX ongoing with benefit Non-GAAP highest basis from year points earnings XX XX consistent XX and a approximately we years, in a from by margin sequentially basis expansion many backlog points higher and continue up non-GAAP record with our Notably, the of $X.XX of ago. end the was to $X.XX, months billion, was our initiatives. setting X% we

confidence in and also of Demonstrating repurchasing unique Amdocs model of our in business the QX buyback pace we our of million activity Amdocs shares. $XXX success the approximately future increased company,

operational highlighted Vodafone significant QX agreements the to solution cloud TELUS announced at we to the migration and highlights in AT&T recently with Ziggo journeys Demand Amdocs deal on by Netherlands. especially support for long-term cloud in Slide Turning strong, the newly remains X. Canada and X-year signed partnership cloud

reflected as and in also automation U.S. in was digital Philippines. and in Charter significant in domain by and of Customer Globe across demand the strategic deal PLDT monetization healthy and AT&T modernization, broader Telecom XG fiber at Austria new awards our AX network the

business with GenAI consistent we telco-specific generative announce Amdocs a happy perspective, platform operational delivered From SCS Vodafone Germany major to substantial Cellular, and important which integrate MACE Vodafone to milestone number of Australia. and with and to and an such communication achievements operations. a deployments, is As Optus provider, AT&T in in satellite Philippines Italy, I'm award execution its global AI, chosen European an project the as customers and U.S. including leading operator in

type of Amdocs Managed QX dependable the Among Cloud to reputation Infrastructure, was high million demonstrating about projects manage for a and underpins customer in ongoing where Oracle capability subscribers, infrastructure Brazil, multiyear pull support native customers, on-premise partner. large-scale a quarter XX the the that through as like engagement charging. the newly rate successfully we is record of catalog expanded we a highlights, latest market long-standing to creating Services, transitioned as ramp-up new our reflecting also Claro win cloud such mission-critical Rogers and efficiently logos activities and a enterprise and our offering

access and let Now color to customers the need is AI. moving which some complex potential network wireless to the the the streaming experience and you, in simplify growth XG market-leading to ecosystems customer fiber, add market consumer future dynamic remind the networks transform Slide leader adoption cloud, experience to accelerate stand-alone and generative to strategy, me and journey of innovation around BXB, the the technology fixed by provide connectivity automation and X, monetize the and accelerate designed our

technology cloud Starting in with Slide With as Market strong. the partner systems providers the support solutions remains list interest alike. a service and Amdocs on Cloud momentum primary and cloud choosing us XX. migration to sales for of surround a growing

For multiyear cloud their thereof cloud many a simplify is phases, designed under fully model. and to the an journey providers, cloud migration end-to-end service products and services is delivered complex strategy that the help still unique to is a early Amdocs suite accountable accelerate of in by operational cloud providers owning journey service

CES Google rocks non-Amdocs The and support begin Amdocs to deployment, planning services to we mainframe, which, managed expertise, with cloud journey or intimate cloud-enabled of or product the The of benefits application, migration also consulting including with in classic cloud Amdocs Amdocs typically suite and AWS partnership latest including our cloud Cloud. addition and version. Azure,

the to a services announced industry of last stadia, M&A additional journey provide cloud, new strategic cloud activities, our are which new at is of to enhance of the accelerate migration domain -- AT&T. cloud and November our maintenance to in combination now acquisition high expansion contributed domain which previously that a sophisticated supporting prime the capabilities cloud to from example beachhead continually the portfolio investment organic with we Furthermore, this

to to Amdocs the cloud, public Ziggo with modernize to operations monetization its monetization Amdocs Vodafone migrate non-Amdocs And Netherlands TELUS application. multiyear signed and choose cloud. Amdocs recently including Canada a signed deals, in both engines services the migrate its to in managed and agreement Amdocs

digital cloud-native to to powered list data reflecting to for AT&T's Slide it Mellon in digital segments, use customer large has market connected enhance the Vinit launch quickly operations data in this services. modernization in sources real-time win of and Moving different platform chosen new Google SaaS customer from in demand, Globe platform by deploy to customers, Cloud growing healthy services AWS, AI business hub. Philippines the personal to will enabling brands ConnectX Brazil Africa. optimize and platform for includes on its which a South hosted adds access and and The Globe various experience, to data information enable Amdocs chosen it system and on XX.

agents our than sales and to CPQ platform Optus configure and journey Australia, for with ever. to accelerate BXB enterprise offer Australia, business In deployed SMB empowering Amdocs while together simplify support them the Amdocs innovative wholesale catalog customer price to faster business, in its enterprise, solutions

time and Turning on consolidate, Slide Telekom and and Austria to fiber market, charging upgrade, to a its XG across recently support efficiencies, improved customer XG, project XX. and including advanced billing, the monetization and all products for other modernize IoT to solution, selected revenue experience. multiyear services customer also and operational and faster new catalog Amdocs launch will segments, key services. of new growth, project This

telcos newly to providing relevant fiber are that the the also are -- accelerate and also U.S. offerings relevant fiber monetization proving generation emerging next rollout networks operators and internationally. Amdocs of to in investing

journey, well fiber support support Our customer planning aspects offering as OSS automation capabilities including network fiber activation, range itself. and the customer ordering as to of full of of all billing include fiber a rollout the BSS the service creation, and and

the provider selected Amdocs year. our Moving that delighted service business key end-to-end to Slide name strengthened that Toco our PLDT Southeast service Asian service acquisition to orchestration recently XX. assurance the last offering Philippines was I'm of by in as solution,

and As the Amdocs component modernization program, and cloud. inventory, service and public an orchestration of important operating business OSS capabilities automation unified network on PTs and deliver process network will cloud

case also in AI platform brief in we out Microsoft. solution as component customer review, XX. the the with built on exciting illustrated customer advancements of includes on partnership Amdocs negation my service Slide which to like is would Notably, agreement some the a I Generative for you strategic management, Rounding

aware, been As Amdocs. priority top AI are for a you Generative has

strategy our customers have address leveraging that our our forging most imperatives platform by progressed MACE as Gen AI AWS. strong such to directly pressing industry and super Microsoft agents leaders We business and with AI deliver Generative collaboration NVIDIA,

fully platform to opportunities, MACE in providers in -- share leading news operator our to and with revenue drive experience. NVIDIA, value reshape new highlights help AI real-world and a to and enablers industry Amdocs' important service as to award of innovation happy customer and data to the the unique chosen therefore commitment the I'm our demonstrate partnership the Gen create leading technology role that with the This global telecommunication today's potential of power X in savings. deliver harness efficiencies

solution For care a the we with technology inquiry times XX% service is in for average helping XXX% experience, and customer handling American in heart as call to provider Gen trial remarkable remanaging bill call resulted successful in the instance, Amdocs a in AI North our disruption production recent achieving in accelerate XX-plus operation to decrease center that of percent almost accuracy. and showed a their

of to GenAI our large progress and use many important including engagement agent active with capabilities continue cases to future. the running We smart our globally, customers pilots flagship enable

Now quarter discussing Slide like fourth comment operating XX, moving our on before to I current outlook. to and our would position market

improve. continue pipeline leveraging areas high operate to condition and pedigree healthy of and and to we yet positioned a industry talented to are focus, to maintain Nonetheless, First, innovation win opportunities market-leading which best-in-class across by for the technology, execution highly environment, are rate market people. we continue our challenging we strategic see portfolio, our demand of of in a

and cloud-related I'm revenue especially in is total growth our which fiscal XX% on XXXX. year for pleased double-digit with which a of activities, exceed last track

shift is accelerated targets ongoing excellence fruit, initiative gains XXXX. Wrapping for in Gen as we bearing the customer strategy Our begin XX. operational gaining momentum to commitment fiscal achieve to from is Slide awards make pilots production to profitability to us our together also everything and commercial efficiency position on and AI our

achieve We guidance track to are the XXXX. in on fiscal revenue growth of our constant for midpoint currency

tightened of to is of coupled the in for to double-digit non-GAAP shareholder we the earnings for the deliver reiterating range with of more X% XXXX, fourth X.X% our positioned roughly X.X%, fiscal X%, in of yield which we than our within share total guidance expected row. year Additionally, growth are are diluted return midpoint dividend per a

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

Tamar Dagim

a compared approximately as to Europe basis. of revenue from grew North our growth of projects gradual and year our record With XX. for QX guidance a with joining was from the on million of us. constant compared natural deal up a of ago, with X.X% between and fiscal Shuky, in foreign mainly timing you, ago. hello, reported a guidance, everyone. solid assumptions. third of slightly a on of sequential record $X you World year impact for completed basis, currency. delivered revenue nearly midpoint I'm with pleased Rest the the financial revenue XX% $X.XX weaker, declined X.X% ramp-up reflecting year geographical and adjusting Slide detailed year-over-year roll-off results . From was negative a with ago consistent differences quarter awards. billion, a Thank movements but a another of On America Thank for new increased from as approximately currency perspective, the quarter

to margin the disciplined and across margin improved excellence Shifting our leveraging down XX basis many including board. reflecting income operational XX.X% through for quarter, year drive Non-GAAP Generative from points improve savings operating years. for tools, a resource XX management, sequentially, sophisticated more higher efficiencies the basis operating non-GAAP and in points cost AI by automation, to AI, and push our the the continuous statement, highest ago was third

quarter. Interest expenses and third roughly in million to and $X currency amounted reflected movements other in adverse foreign quarter the the

would of our GAAP On the tax third $XXX to the for was guidance XX.X%, at Diluted $X.XX EPS This the diluted million. EPS guidance of rate GAAP charge line, restructuring been of with range effective includes the included share, which bottom end non-GAAP $XX have which and million or the annual of of XX%. to was higher target a of was XX% $X.XX range high of non-GAAP $XXX higher fiscal quarter. a consistent million end the per approximately EPS without $X.XX end of diluted

the restructuring around financial provide more our context later. We'll discuss when I charge outlook

XX, Moving months million approximately $XX XX to $X.XX from a billion, was backlog Slide year a million sequentially. ago $X.X record and up

existing with project as indicator our of of and XX mix positive have managed expansions Our backlog services served new renewals, and new business. a traditionally customers months and awards, reflects a leading logos

from that full under XX of new point, phased execution. year the additional of includes recently a deal activities AT&T, less signed than ramp-up significant current an impact we reflecting months backlog with note As expected plan the the

XX. Managed of services a customers, such year new a and record million roughly from and was we logos ongoing long-standing like Slide services as X% to revenue. equivalent services Turning an with was into that included by to mission extended nearly critical support data Broader ramp with last $XXX XX% engagement of activities new multiyear quarter, and in total revenue ago up more. testing the QX, driven Managed mainly and announced expansion revenue domains

and TELUS Netherlands in our domain customers' our extending to domain announced the our and our new the Services by AT&T is through which XXXX. X-year recently Ziggo with deal signed cloud our previously Vodafone proven while consumer cloud, supported Managed in agreements at Canada existing in expanded activities also migration engagements growth by

I'm with operational a for hosting under mobile extension innovative and systems, multiyear business, Spectrum will with to its its which enhanced for services to As announce Amdocs rapid support the further Mobile cable with provide of to continue expansion along agreement enabling offerings hosting highlight, growth billing managed mobile and Spectrum's of and Charter customers. services support pleased and their the our

QX. long-term the of Slide year-over-year and sequential receivables was of XX. net revenue sequentially and aggregating $XX flow short-term days days deferred QX unbilled the to balance X turning Now in by change balances. highlights by decreased in X sheet days XX in DSO and on million cash The

well a net North with in multiyear on unbilled receivables our line As deferred as and we significant running reminder, between the fluctuates currently as progress quarter-to-quarter, America. programs transformation business from difference in revenue activities, normal are

payments million, QX free flow reported operations approximately cash been $XXX cash net third $XXX $XXX million would have generated the $XX cash expenditures, million flow in of of of of We adjusting $XX less restructuring million, from flow capital in comprised approximately for in million free quarter.

a balance million. of a QX strong healthy sheet, an we approximately ended with roughly of borrowing million, $XXX balance including Overall, $XXX aggregate cash

We capacity our our future retaining fund while liquidity growth. have needs ongoing support the business to strategic ample to

future XX. business Turning to Amdocs pace success We QX, the model roughly and capital to Slide increased buyback of million the $XXX allocation our on in company. unique of in reflecting activity confidence the

million XXX% we on for total of to year-to-date, a $XX payments $XXX have more XXXX. through we already in Additionally, free dividends restructuring Overall, repurchases to paid cash of shareholders track returned dividends million fiscal shareholders the quarter. flow cash than in and of before the share us to putting return

approximately net yield full reiterating Amdocs target healthy fiscal XXXX, of payments capitalization. the to relative $XXX flow restructuring equating For and million to year free this are than non-GAAP current roughly more expected our X% year we of income cash flow market cash XX% before free a of

turning Now our outlook Slide XX. revenue on to

geopolitical, fiscal macroeconomic, quarter remains based in which be prevailing the outcomes continuing full and consider guidance fourth XXXX we but of are today, monitor what level that reflects scenarios. current and business elevated environment, to the possible the predict most cannot have closely all on the the likely information we year business We we to financial uncertainty, operational

X.X% X.X% to as constant range tightened fiscal revenue X.X% the outlook, X.X% are a to which our to XXXX growth of reiterating have previously. currency X.X% On compared midpoint basis, a to we we of year-over-year

as $X.XX annual currency QX. range assumed compared Our revenue foreign fiscal within outlook quarter impact billion a from immaterial $X.XX an sequential to of includes fourth billion, we to fluctuations

reported outlook compared an to assumes X.X% expect X.X% previously. approximately X.X% to as foreign year-over-year unfavorable XX from basis points growth basis basis, of with as of the fluctuations currency This now we revenue points year-over-year year in previously. impact a to X.X% On full range XX compared

our the gradual income down midpoint Moving of to around profitability The X sequential fiscal in margins range XXXX. the to target of annual statement in our puts XX. XX.X% on quarters on last deliver operating over improvement the non-GAAP XX.X% us Slide track

and model, last in innovation committed by presenting for excellence, to to evaluating are products, sustained As XXXX, implementing portfolio of operational infrastructure capabilities, rebalancing our services, unique business investment wave our technology we and on proactively fiscal strategy productivity improving workspace. future and growth. of lines new of such to achieve focused the optimizing strategic and cost business profitable leveraging company's technology, remain site our our long-term goal priorities and relation our With GenAI quarter, meet I discussed the workforce and technology, needs and to as we structure a resources

during took in our that plan employee -- resulted On mainly which and comprised restructuring $XX we of these charge severance look lines, was the mentioned additional QX, million arrangements. actions we latest under previously of benefit

we updates the along. carry current incur in restructuring will over move out quarters, we respect to as plan as charges several which expect our Looking next we out to additional further we provide

compared of a for to XX% the together growth are year everything full to full unchanged Slide This have tightened with X.X% guidance midpoint of non-GAAP of share a as outlook year outlook, previous per we non-GAAP Bringing to our X.X% assumes X% target range fiscal the tax which fiscal on rate annual earnings XXXX effective diluted XXXX. within XX% we range XX, XX%. to X% reiterating our our of year-over-year

higher Although that this is we in end range of know expected the be QX. the range to towards

for expected of growth non-GAAP Overall, of our share deliver are total earnings in the shareholder year we fourth per sum XXXX, the to fiscal yield our return plus approximately X%. running outlook double-digit on track assuming diluted dividend

listed which X reduction especially have fiscal COX in our pleased of back Amdocs the Scope Before environmental emissions, resulted commitments. today, ESG this a exceeding science-based in I'm 'XX/'XX. report since XX% in and Scope efforts, CSI far XXXX, Amdocs X year's published significant to our achievements Shuky, and highlight proud it I'm that report, we to many handing Among target for

of over Additionally, XXXX. in energy up Amdocs global just approached way XX% consumption in XXXX, from renewable XX%

was of of Time more as than companies XXXX, Our the of recently ranking out in X,XXX named recognized inclusions only as X initially progress us by X Amdocs world's large most Magazine, which sustainable companies assessed. XXX

refer regarding available on to report, ESG inclusion, is back digital With that, our Shuky. download and For additional website. and commitments initiatives achievements, our equity please which our now including for Amdocs diversity, information recent you, to to

Joshua Sheffer

Thank you, Tamar.

results. to a quarter pipeline monetize to continue our talented earlier, solid I opportunities other pleased we leading environment, portfolio, in while across I'm well domains market healthy said we demand a AI leveraging As remain positioned by cloud, third our with our And of in and people. challenging generative highly execution, operate best-in-class strategic

take With questions. that, to your we are happy

Operator

[Operator Timothy Oppenheimer. comes first Horan Instructions] Our with question from

Timothy Horan

them I contract large think AI it can center. And wanted AI, contact from guess amazing And give talk was, Have out with to can places? focus you think like contract you the around separate can about I sounded relatively roll just . it you expensive more was I a pretty some the the the any Or other was. you on able trial And did been the how X how that do contact results. you on trial that be quickly? win. color those center, in you to great. maybe the replicate would

Joshua Sheffer

enhance to opco X then initial super it to many Amdocs a other then Max first use that to more called or and and in the is consisted more actually cases we deal this So of significant continue This to to us initial setting call deal the have specific platform implement up these. what the prospect and this of this opcos. infrastructure, with agents opcos. global it's is the our The regarding award, operators very

NVIDIA. mentioned, it we are with the we doing with As partnership

how using of we of especially like By say, similar, the extremely are large call are other is the operator concept regarding world. we the in North by actually, productivity what center for would operators this increases with doing build accurate. that agent we example America, our able agents, this of the call super center, I way, a in the proof technology, tens to percent, good the we And call

is highly operation The mission-critical. call center

in our another become that system the like want make We tools as this to to consistently the these that this part implement So and type center. start will sure call call accurate is they centers. of across customers of working mission-critical assume

working means disrupt young This and you new and X that in immediately is operation, X, call center, it the to years can center call relatively going completely working to in call the bringing experience, or a someone take because center. relatively capabilities is CSR,

not So all consumer centers the that -- we satisfaction, it's the just believe going going time, all our and take increase this the center, quality customers. cost the savings, believe our it customer of quality we to also of but disrupt call customer call to use technology is to obviously

Timothy Horan

And are other partners Microsoft you doing or that in still partnership with any there?

Joshua Sheffer

I domain. this several this many Microsoft specific are with others. doing have time, and We proof we are But And X NVIDIA. the with of partners in think running same at we concepts

So are we perspective. very . diverse from this

Operator

Our question from Notter with comes Jefferies. next George

George Notter

a I spending about versus the running transformation on focusing been back just to traditional quarters, ask customers the guess I projects. wanted projects there's overall narrative last environment. few I if go

I opportunity different you slowing there business think talk maybe get about those an And slower decision-making about seeing? situations. guys if picture better. just the the Can conditions to see what is of talked to you're kind here, bigger deals reaccelerate down, . M&A type close you

Tamar Dagim

the So on to is for what hand, ways looking X seeing transform. we're customers

some them, this. them the fact we the of for the given our take enabled. European many take modernize, them are cloud, given the looking more new, whether are take some going the ways want we place, is And our and legacy cater we stack to existing want and approach to new for very And to in modernization are in journey path, to different and cloud fact classic portfolio bigger and they put the large or kind make out North well to the allowing actually of applications of modular, said they whether past, putting to in gradual something decided the American is the which taking example, with as customers customers, of

Having the pace see that, migration that. activities of We cloud tougher a terms in have said decision-making. are being see more other scrutiny those around to can and taken. the which do do the we in many in decisions We environment

win very in remains in high. a continues relevancy industry benefiting the for a provide the thing situation from The is to looking consolidate, terms their different proposition to typically customers. strong. would good value when rate Our overall, consolidation us. offering in We've be consolidations, of of is been I the And carriers very say, our historically to market they're the

the We are coming situation, with that short term, the a like very strong of experience a we when in is which supporting But the the provide them in sometimes is need. there and that's customer doing systems that they a cellular, example investment, are into in see waiting kind phenomena time America, long-term to so North regulator will put a they acquisition of of by ours of we time. money approve to from not for the lot naturally, do T-Mobile, they this

Vodafone transformations happening X Sprint, big them would example, to back running for are helping that activities our that of along are been build we're different between merger now I and say, acquiring is But generally line of assets the business. years, and activities to T-Mobile the on merger X stack speaking, Germany, we support right looking has

consolidation some delays short may need are term, we the generalize, typically in industry, create in investments. if though sometimes the some even to So enjoying in I it

George Notter

but... business Is guess, of environment? any then I I the these a M&A maybe insights question of Is it of And Got certainly, the it. come question off? it effects when just mean part, might some of sort elections? a into

Tamar Dagim

scrutiny talking about globally. I business I'm environment a I'm the this I've U.S. phenomenon. this think talking about the as just that seeing not We've been whole. it's mentioned

in business are as of whole that we pickup and pace of So I the for. environment the a think it's the about terms looking investments

be there of should situation. unfolding the see move But that specific specifics again, of some could examples along. think business demand a we it's and in as overall how more carrier some we a So about I

Operator

comes from Liani Tal next America. with [Operator Instructions] Our Bank question of

Tal Liani

a I'm in space, public whispering.

is the question million the is entire backlog, you more is the that bus contract the $XX have and quarter? X in X spoke questions. I me. here much to Number it And related last second philosophical. about increase You AT&T hearing

at that years, where when to there XX you X% quarters what but So the high always or more -- you're X.X% changed, never quarters in carriers never they X quarter, I were the priority, or look versus do more I X% years growth if now look last growth in the kind XX we've changes, the look were quarters . And few over the in the averages years grew at providing year-over-year, you grew are last XX ago, quarters at X% which to a year guiding line and line or you you're or more but the at what year. need X many when last needs seen X X.X% rate a years. were I your changed, quarters, story the is in it's growth, the with of of with

X%? is, projects what said want are Can philosophical, So it to years? you it's the as to what the environment have drives to then And doing, X to case, drives ago. support again, I accelerate question XX%, I of growth understand next can can X% but years the it, the over that than and higher if X% growth support growth is the what that's few the the carriers and

Joshua Sheffer

Considering the a you question. a in relatively public space, it's are long fact that

one. So let try second the me with

compare if working Not us think engines, today, we or X. have you and the X I and have them I the the think same of think are growth time, we previously, pace. at all difference, I at that maybe X that

higher again, in addressable what years that are I comparing to expanded we our single-digit normal demand maybe not so now, operating revenue to XX today think what is the For growing which example, journey ago. a back is when is we we to is the cloud, we environment, believe highlight we that others, go had we current situation the are But in growth. saying can -- we and to right double that than and market XX% the digit. the again And of cloud more engine much that the obviously, total

pressure, In some also by the that this there others are current customers free rates and industry maybe the macroeconomic and because cash this industry, current CapEx more for like but from environment you will way, some pressures, like and the it other, condition, we pressure, is focusing cutting to things other through call you on be demand going the given some what of and area. interest flow are mentioned historically, back X% can with will It single-digit demand more macro the be the some close in get us. support that middle we in range believe to improved difficult

part backlog Tamar. it, of maybe the Regarding

Tamar Dagim

I many during backlog look, quarter would the new say, by revenue we sign always deals. and naturally, recognizing in the

it's part it. definitely So of

as I take make planned interesting months is of XX not talking time, to current deal to do months not And does the learn of operation we of that takes We reflect capacities. comment XX that this need backlog. we year it think need point effective reason the full that made IT environment. the certain transition. up and as we We backlog expected, set are the control to about because I immediately, that environment to here need the the the

but reporting see to XXXX. middle yet XX, of rate you of can So of according number the definitely run well, we probably XX in not is as full assure months that everything June deal and calendar that we're I we do in going reflected full have the will plan, the of

Joshua Sheffer

under demand mid-single-digit tougher I growth environment, can pressure, first level of question, close historical think and we the of said revenue will be back with growth. back more now right I it think And rate, you'd I everyone is and industry the get to . to normal the expect your

Operator

Baird. Our from with William comes Power question next

Unknown Analyst

Will. for Jan on It's Simoas

Just some making generally. market a environment the spending in about up second follow to the you comments were the ago on of

what any when look So growth we're thinking in should would are environment sounds color this at like be that expect guideposts fiscal like Any in would to I about you might fiscal 'XX, directional it other improved we reacceleration? or similar near-term expecting Or guess, growth great. drivers, be an spending than 'XX? lead point, some there

Tamar Dagim

Yes.

how on some environment. see we were trying give not We are but yet for XXXX, the color to we guiding more

around So literally, now, backlog year. take leading I our you if typically, I'm X.X%, as for indicator. backlog growth to But the XX-month an these environment think we Don't the what it you're to acceleration. . the across. more are okay, seeing in is we right grew a trying example, now, that's That's telling XX-month and hovering levels get demand change see us is good next message need

Unknown Analyst

then continued front? cash Any become expect next we of accelerated do use should that That's you expect year? more outlook to And buybacks? Or significant on M&A helpful.

Tamar Dagim

that trying deals always same the something and Yes.I I actively don't M&A the the closing. both. it's it's speaking, to the versus would always pace are to mature At we specific are we generally evaluating, predict and the say, pipeline we're at. other. think to do There's we believe one a time, looking harder I have capacity will always is but that

So our buyback. we've been very with consistent

allocation think is probably out back and ourselves, At do there vehicle. believing and M&A, of will strategic we and also You've important time, to we are M&A same definitely shareholders to for domain. of going that cash seen the now buyback in more the story us look definitely the we an always Amdocs, through course, in

I count the X So think of really simple And should both. I that think other don't the necessarily. answer,

Operator

I'd over And Matt questions . turn remarks. at closing I'm further the call showing not like to this any any to time. back for

Matthew Smith

thanks, Kevin, joining everyone, today. for Thanks, and

. forward night. any do you group, out have soon. please to you reach us with IR here questions, speaking the If to great Have and we in additional look a

Operator

today's this does presentation. gentlemen, and Ladies conclude

disconnect, and have a day. now may You wonderful

Amdocs Limited (DOX) 7 Aug 242024 Q3 Earnings call transcript