DOX - Earnings call transcript Q1 2025

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Operator

Thank you for standing by. Welcome to the First Quarter 2025 Amdocs Earnings Conference Call. [Operator Instructions] 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.

Matthew Smith

Jonathan. you, Thank

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

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

Rapaport-Dagim, immediately the a Relations also a of presentation, call Executive Operating Officer. today's Chief President with Investor the prepared call, are as this today To section and of support hosted on the today's Officer found Shuky are can will Management always, be Chief website. Amdocs And earnings providing call. Sheffer, Tamar Financial copy following Participating of which we remarks and me conclusion and of Limited; on our be

fiscal framework, first was phaseout to by after On And and today's noncore XXXX including fiscal of basis 'XX. also Shuky. on which recap agenda, $XXX made will we've as our revenue our will will over first financial fiscal previously, business our cloud. continued and and discussing growth to communicated executing and the you GenAI Tamar the substantially on a with progress which of in compare Tamar quarter year certain prior financial full and year performance finish which approximately guidance. update XXXX our on low-margin million ceased year quarter first I'll that, the it against certain 'XX in Shuky fiscal And achievements metrics continued for reflect additional our by turn the already adjusts will activities we've for financial Shuky and sales momentum strategic full financial outlook will provide forward pro quarter details our forma business the Shuky

Joshua Sheffer

us Thanks, cloud solution the needs millions and GenAI-based Matt, as Thanks dedication a to to the fiscal solid agentic revenue, customer on world, enterprises provider in drive XXXX call deliver and around efficiency grow immersive digital today. off and everyone of service got to on that business day. we employees the start the of consumer joining to the experiences Amdocs for continue every area and improve commitment next-generation

on highlights Slide Reviewing X. the financial

above derive $X.XX, a efficiency months was earnings sequentially billion XX points of phaseout midpoint the a healthy adjusting basis to anticipated. the a initiatives closed guidance, was quarter by and currency an exceeding the slightly X.X% of on guidance ago low-margin gains. from backlog per jumped ongoing XXX of billion, of million $X.XX forma year activities roughly noncore more certain foreign and midpoint Non-GAAP we year-over-year acceleration $XX for are our approximately First business an of revenue sequentially. pro points increase and XXX we $X.XX basis. with negative which and share basis movements, Profitability QX of than Reflecting

support data In key position for activities months North quarter, several highlighted backlog XX others, Slide intelligence on we and wins and in AT&T this among with Cricket. as Our reflects, AT&T our X. expanded America, increased

consolidation system collaborating leading the began billing at Canada DreamWorks recently also and Bell Automation. are We with

with BSS globally. the with Italy front, we in including we at migration office the supporting Vodafone last migration cloud cloud modernization a projects, execution, new largest We Adding some From Vodafone a announced large of City we On at deal and Deutsche cloud. transformation award and momentum subsidiary. quarter. Montenegro number modernization X-year sales are of international customer the Telekom recently the continued of agreement and saw Ziggo to Netherlands secured the in standpoint

like of MX Bell, our in Rogers, Optus progressing in transformation Singapore continue and QX Comcast, AT&T, for T-Mobile, major Telefonica successful we Australia. deployment best-in-class and capabilities, supported launches Demonstrating platform customers Chile during

Along I of business deliver the of customer these supports a extended volume Chile high as and which managed our flawless remarks. Friday operation, with in customer Xfinity reference renewal managed Comcast of have close Amdocs, you, recently the Tamar season. XXX% over over proud multiyear for and reflecting recurring revenue level service mission-critical rate am also for holiday streams remind our service lines, and Comcast engagements, will combination managed To Black agreement periods of to retail support the the Claro we a Mobile, business peak of services visibility time.

X. Slide to Moving

streamlining continues drive ability recent recognize some connected future the simplify adoption regarding market with cloud, of by which BXB digitally growth and complex deliver they automation, the potential provide transform support customer provide complex momentum Slide and the to innovation to as is multi-pillar to the and AI. cloud accelerate designed me strategy technology customer Let Cloud networks experiences to X. to example sales Amdocs' Generative market-leading the journeys. to systems our accelerate multiyear the need on next-generation experience and dynamic unique Beginning monetize for our strong and consumer of network increasingly journey the market

FinOps announced the of in demonization we For the services operations are migration extension year. cloud cloud last and the instance, to an project in as Netherlands, Vodafone providing Ziggo we

the cloud fully we evaluation by and journey. the important are double-digit position, in and many of cloud end-to-end track cloud migrate existing for most as to market Telekom its growth still to offering of future Amdocs to adopt stage opportunities. has in engine by the rich ordering more cloud the Deutsche foreseeable Amdocs selected upgrade growth remain providers the City and in service CRM our believe subsidiary We the system. Overall, deliver yet again and of supported Montenegro charging are will year, and are to end this on strong pipeline unique also been cloud in

by modernization marketplace more monetization. responsive in with OTT capabilities One customer customer a public AT&T expanding suite. mobile, digital engage customer growth one way agreement resell support enterprise our for Market the of the agile enhancing of is experience and recent as offering self-service important and experience Mobility engine demonstrating with providers XX, closely will extended awards. Amdocs the modernization remains enhance to one the of Canada, of continued requirements of of Slide demonstrated a TELUS digital its experiences and include In working telecommunication Amdocs Australia's largest Amdocs to drive accelerate Optus, platform through customers new that to brands to as ability Amdocs application. their an trust many to Moving deployment supporting Amdocs for Mexico

also workflows on its pleased with hundreds Animation I'm complexities, that platform to pipeline. demand streamline of production meet is DreamWorks thousands Amdocs the of digital announce manage better enabling of efficiency we is advanced DreamWorks production assets, to the collaborating Animation an

Digital delighted Winity connectX in remain to in this by in in by Melon rapid its connectX, by as MVNO such recently was Systegra, we MVNE solution Riz AT&T Africa. telco-in-the-box South and Additionally, the customers a our powered Brazil enable digital services, adds Wireless connectX U.S., cloud-based and deal Nigerian of provider, and the adoption existing chosen experiences AWS. To service

wireless technology is have pleased stand-alone is to billing I delivering a into Slide access providers to fiber. Amdocs that network cutting-edge Amdocs including Bell collaborating wireless am single next-generation Canada, unify monetize to system cohesive service and investment, report Turning monetization to fixed with XX, In on their platform. for

their and BXC introduce including end into SFR our system system long-term previously will agreement, fully leading a fixed provider. to extended transform charging cloud-based solution, line transform and of one our to new billing awards also of telecom modernization announced and of Amdocs We providers. collaboration services with this Altice's mobile users. our deal Netherlands' enabling charging of lead customer X-year to users the of innovative largest rapidly to add Odido, one These Under France's existing Odido telecom this converged projects,

Moving strengthen to next-generation and expertise of acquired globally in and U.S. capabilities our complex chosen alike. to quarter, optic effectively our existing supporting rollouts. fiber fiber relationships Slide streamline Amdocs is fiber network and consulting with build Consulting manage grow This investment have includes emerging the said fiber we and we has on provider with and of offering. design Amdocs fiber network Internet U.S. the the out other to automation and ProCom in XX. a leading Last customers services

market, a growing the recognition provider, As broadband resource manager Brightspeed, in fiber inventory, U.S.-based Amdocs of its operate improving their network example selected telecom our to processes.

to an lab highlight, compute successfully completed vRAN Rapids during capacity of As Verizon increase enabling reduce and power Sapphire rollout. Amdocs the consumption for certification additional

our and level capabilities XX. care AI generative to our capabilities quarterly platform, agentic in latest to service helping on scales Jane. unveiled GenAI next transformative for Amdocs sales commerce recently is the amAIz enhanced Slide to and releases. customer start, an engagement Turning offering potential featuring laser unlock focused capabilities support AI and expand of introduced To additional domain. copilot agents Amdocs To position growing generative data address data acquisition capabilities, PROFINET, This the and engineering science beyond. and helping AI in the in for recently to BXB also We've across the CS in Czech customer provider our demand we our important AI, company a rapidly us is and data, intelligence practically building and services a as further Republic. and and leader block acquisition GenAI in data telecom in of completed services based GenAI

a are for to is to continue customer sales our them provided AI improve their As our Globe in cases in customer, we generative and customer flagship deploy Telecom we and and work Amdocs amAIz leveraging partner in management including data better Philippines. historically has to Similarly, knowledge supporting care, UAE long-standing use customer a of experiences create the our them in support the the capabilities of is to including many to progress, billing AT&T, customers, with care. more. services as and and improved platform, T-Mobile to the expand our Etisalat to

proof spending a AI has readiness use data for cases of services bespoke The adoption concept. of AI to new demand Gen to data-related development wave created of generative

deal more thereby generative pipeline a global quarter, we to successfully This than XX adding expanding our provider, exited of opportunities.

AI have generative our Dallas, showcase showcase host NVIDIA our us experience center for what's facility our will allow can to to customer businesses. the and with capabilities possible and in reimagine the global launched customers. that Finally, leading and transform Microsoft and together we This

Turning to Slide XX.

which a highly relative environment over words unchanged services, me streams visibility managed has and operating business multiyear last of begin, we the remained say in engagements. our about few model, which level customer mostly under To support extremely confident the business revenue a and several remain recurring challenging quarters. including Let relatively strong

to This retain pipeline billion am and I size. us. deal ability within operation and execution, by are and formal also our consolidation addressable efficiency and excited of market we opportunities, pedigree to we GenAI in Additionally, telco-specific working the mission which to accelerate of improve $XX encouraging track includes to expertise hard industry room an long-term large solution unrivaled a critical convert partner. an in believe by innovation, awards record leveraging our IT revenue reach large our growth we business several and front ample pipeline support mature nearly of as standard customer growth, strategies consistent our

Wrapping Slide XX. everything together on

reiterating double-digit of We and currency growth XXXX which on another X% between year the forma our cloud. basis, constant pro the mid to of of included are a fiscal revenue X.X% guidance in growth

year deliver double-digit expected on for return in total the also fiscal are XXXX. fifth track to shareholder We running

With the X.X% of outlook turn that, yield. of the to share per between our non-GAAP midpoint her our diluted dividend me let to Tamar earnings for remarks. call XX.X% plus Assuming

Tamar Dagim

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

seized reflect comments, begin basis, year on prior XXXX metrics of revenue in I which and adjusts were phase-out $XXX company I To the million quarter of this the it certain roughly to by of Before revenue regional to low-margin will the financial in substantially modeling, which fiscal million approximately was assist noncore already certain $XXX contributed activities business forma the XXXX. compare fiscal per first today's quarter. similar your mix pro further a overall

the phaseout up was fiscal end midpoint from declined including was pro quarter currency and approximately with PROFINET On revenue of Revenue PROFINET of America business XX. financial a first of and of quarter higher year-over-year of completed immaterial our of detailed year-over-year for differences $X.XX mainly projects forma ago. recently year XX.X% after as guidance the completed Rest revenue certain our forma echoing solid the World results from at million December. by new North sentiments, roll-off in $X than basis, negative Now on Europe awards. pro ramp-up this the I'm was Shuky's to acquisitions, delivered Slide basis. the X.X% constant approximately closed currency the as gradual movements and our reported in constant a growth of compared dealer was for a QX reflecting natural billion currency between foreign Reflecting activities, guidance pleased slightly timing regional of adjusting assumptions. weaker,

expect to quarter. next back we So to go growth Europe

activities benefit the we Shifting ongoing our to amounted mainly an reflecting movements. Non-GAAP adverse quarter. $X.X a down initiatives. by was this report investment, profitability of low-margin and of other proud and primarily business points of points the the Interest improvement offset income a of million XX.X% sale currency in quarter gain in roughly equity up basis XXX operating expenses first to on are statement, end basis And the operating and the jump significant reflecting year-over-year sequentially. margin XXX foreign

generation protect profitability long is to hedge. designed program flow As and it effective as a cost is reminder, cash hedging our as foreign to free currency our

diluted the quarter, tax XX%. as fiscal midpoint $X.XX guidance. range included $X.XX bottom above effective to the our rate $X.XX. which, quarter for of line, On guidance was EPS It the above this first of was non-GAAP %X.X range GAAP non-GAAP of our we was XX.X% expected, EPS $X.XX XX% Diluted to annual of target a above of

million to of ago. business level year managed in from total and Slide XX. the $XXX thus improving QX, a Managed business Reflecting Turning increased Revenue revenue of phase-out X.X% up resilience. first our quarter, of certain was to fiscal Services from XX% roughly visibility in services the activities,

Ops Cloud Vodafone in managed services with Ziggo agreements, continued referenced close we of which historical QX, earlier, our including multiyear maintaining sign managed with the also the while Netherlands, renewal deal During XXX% Shuky rate services new to to customers. existing

Comcast managed and engagement As an Comcast example, Amdocs Xfinity in development renewed services across the Business. Mobile

We Chile. extended Claro with managed also recently our services in engagement

X flow increase in X of sequentially, balances. Slide fluctuations balance by unbilled reflecting XX, days receivables, days days of sequential net aggregating activity. increased Turning sheet in revenue DSO and short-term and highlights to long-term both cash in on was million $XX business normal deferred XX year-over-year The QX, and

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

cash May. cash Including million, million cash $XXX million. This to liquidity a free payments capacity was to of ramp-up strong quarter's deal attributable future payments the while ended before ongoing flow aggregate AT&T, execution, fund Reflecting million we needs $XXX restructuring retaining mainframe providing our million in Overall, to our execution $XXX restructuring announced to primarily $XX increase is free and cloud of with QX reported healthy strategic balance of our the and we growth. flow ample support $XX last QX. the was roughly which approximately business of borrowings in

on to of repurchases the share Slide $XXX on million total $XX dividends and $XXX allocation We shares first our capital million. to in QX. shareholders of we paid million cash a dividends returned Turning XX. repurchased in of Overall, quarter and

million between our before Looking our $XXX program. and are reiterating is free current of payments target fiscal million ahead, to which under XXXX, restructuring $XXX in flow cash we

more to free current rate annual relative conversion translates to healthy relative expected of net X% cash free XX% a Our cash flow income than capitalization. Amdocs flow equates to non-GAAP roughly outlook yield a market to of and

due is of remind to bonus the fiscal we flow annual payments. in the second lower free you quarter Additionally, typically that cash timing

year our our XXXX, flow allocations expect capital we the shareholders. majority fiscal return Regarding cash to free in of to

forma of given months foreign provide and QX, the year currency on additional growth QX. significant up XX, a an $XX forma a basis. acceleration Slide ago impacting pro was you quarter, revenue ago data X.X% X.X% year in XX an currency from supporting backlog for backlog a up million pro a basis forma from currency this constant on $X.XX with at To of the billion point to months was end sequentially Moving expectation constant on XX movements basis year-over-year pro our acceleration quarterly from

leading certain underscoring our this business. of backlog XX indicator of of as roughly the forward-looking expect months the further we Following to XX% represent phaseout of importance metric a activities, revenue, business

revenue Slide Now turning to our XX. outlook on

X.X% for have We That's line, to and current to fiscal of business we the pro but geopolitical on cannot a XXXX. remains the the and double-digit elevated year revenue the monitor between are certainty, cloud. possible business X% with guidance we predict environment. today, Beginning XXXX including growth what fiscal reflects reiterating the quarter our second likely financial operational of scenarios. be guidance continuing prevailing all basis another the in level top most are we full and macroeconomic, which closely in for forma full year outcomes we on year constant based consider currency of the growth information

despite million healthy This of annual prevailing fiscal the to of completed the reminder, As a $X fluctuations assumes acceleration revenue After with guidance in this our at XXXX currency year, the compared an quarter, negative equates first quarter deal billion, assumed billion as of December some on of foreign sequential contribution expect roughly a $X.XXX inorganic activity which midpoint from roughly $XX fiscal we from QX. is already of rates end already of $X.XXX between to revenue sequentially. XX. which second impact our million the we

down the income statement. Moving

XX.X% gradual on line, which equates operational on foreign midpoint focus The track XXX XXX roughly and with improvement Below produce assumes expected activities resulting dollars interest roughly basis points of a of of margins increase impact basis. excellence, our from substantial non-GAAP net prior fluctuations XX midpoint automation XX another year. and the are by business points costs We currency operating outlook to other to our in of a The are million to margin basis to of and points within fiscal operating full expense AI. hedging XXXX. roughly compared several to non-GAAP fiscal the of guidance our and as XX.X% range year generative quarterly on continued implementation from phaseout the basis of

annual XX% tax to We an within QX, specifically year this our of annual for fiscal range. for and XXXX range XX% be to for full non-GAAP within expect effective rate target fiscal the XXXX

on everything total earnings deliver double-digit the are year which more expected per XX.X% Slide consecutive return dividend to XX, of in XXXX, a when fiscal fifth X.X% to share midpoint yield of X%. the of we than diluted positioned together supports shareholders' growth Bringing of non-GAAP including

back turning continual Index this I'm been announce to reviewed achievement ESG has that principles in Jones and throughout year to proud Amdocs globally, our and on efforts believe integration our underscores row. Sustainability we S&P XXXX the Shuky, the America a Before sustainability it sixth X,XXX of organization. included in companies With over Dow the of for focus North

dedicated the back to our each communities our proud among myself, best-in-class are We employees the our to support thank and they And industry. With and we'd day. to stand customers for Shuky. our of you, behalf Shuky in like on way that,

Joshua Sheffer

Thanks, are they and XX-month healthy year we of off to our backlog our guidance an position start, Tamar. a full reiterating reach XXXX on opportunities us. ahead solid revenue fiscal based pipeline With the of encouraging

of shareholder to questions. on With ongoing margin for deliver your total We conversion to we return. our supporting year take expected double-digit commitment robust cash and earnings to are deliver to further happy that, also are another track improvement

Operator

Jefferies. Notter from Certainly, of for from first George our the comes today question and line

George Notter

the details talking you or to projects And great. points Any there. the think were customers wanted that there that's seeing? of the are at could on that I about, something driving that would pipeline genre talk monologue, I types projects in significant marketplace in be are about your of out you're you Shuky, that pipeline? Is that more changing ask, of different

Joshua Sheffer

think are market, this a we we geography the a to domain there in but putting the the ramp now engine sure -- and the fact reality very operating. that is the not across year but deals are declare all not deals different them we are by into the the effort way do I'm of now recognize areas a change that is revenue that is it's and we close and we that encouraged start and of lot mature translate it's Amdocs. this and growth is all deal, geographies And pipeline can I in that pipeline this that up across can limited close we but X to to and rich,

George Notter

fall, there's and like was I sounds tell driving I'm more that the in the I been bit to guys, close the it wondering getting projects back commit and think what that's Or changed back get it Like I'm us indeed that talking were a not moving, you is that something guess here. about improvement? can with go I customers talking what's in a just change there? just get you If deals hard environment. pushing how you to is to case?

Joshua Sheffer

can think very this better pipeline I quarter. the we in I definitely, But next encouraging. -- the is answer question

Operator

line our of question And next Horan from Oppenheimer. Tim comes the from

Timothy Horan

Just kind more back kind in legacy improvement accelerating? down had it on is that's the that cloud pipeline question. the spending Are you lot projects the of last Yes. of where Or seeing year? some side a on of on an slowed

Joshua Sheffer

more it's new the stuff. sales modernization. projects, cloud, It's transformation, BSS or No, on digital

stuff. It's So new on the on the it's much not more legacy.

Timothy Horan

to Do you in point might new some pretty or committed the everyone's think stuff? kick at the is back legacy

Tamar Dagim

talked time, we of gen that in us. in of existing when same you to with the that are customers remind said investing next we the and legacy building enhancements systems the the at transformation about Just level

the future always So while we current that, that in invest of the prefer with system start said right? are not future accelerating We in counting us. their will they fact investment building on system, we that they're the they record, and

the additional into investing selling is This where we want when this on that the see is where R&D new and deals. and with table focus is our have of we to innovation stuff, we offerings the we have to to focus the the conversion the is, pipeline all bringing our dialogue and the bringing this So are great customers.

Joshua Sheffer

all the your to is But for far pipeline new stuff. the by question,

Timothy Horan

update of you could proof Can expenses maybe to their I AI projects you what Shuky personally kind more concept and and what's think mentioned, give carriers, quality XX lower guess I drive do a the improve and for it? it maybe And do time new can implement take some revenues for of little think, it materially AI. you over

Joshua Sheffer

discussed now we before you is acceleration more what you we in the So and to order and foundation, of with the this in AI we to it see make right shared have that in need place. the data right as best meaning, generative technology use sure make

domain So for we upsell. a mean, we use care I in more the cases, see different, all related activities in this large commerce, customer, to generative see preparing data it's all the cases. Generative to use

new So we in see our are hope said next are a customers. with trying we of I we quarters. And the more -- closure we'll trialing deals

Operator

And our America. Liani question comes the from Bank from of line of next Tal

Tal Liani

about that to momentum like-to-like company higher kind be -- it X.X% such on contributed midpoint numbers, average. what question the eye I try the change a growth the what of I customers even change this more you're Can is general tried view low to happened on customers? to level? of growth, break to like so understand, to the future, of bird's basis question break if When is, good, could not components of and future. today are the this look Because is on X.X% all, is service working about providers, kind down cloud growth. my a breaking down okay, average better things take and growth a we what are In down understand just your I what future question specifics happened it the growth that would that kind to sustainable the not it's and can the smaller I and could the that with a what link of have versus the could It's trajectory? big that you the we at And the first And of see. is company... it X% about the it's at your but I

Tamar Dagim

we point. indicating QX, And in leading a X.X%, it's think constant about if through great pro growth the currency already different Tal, but So you was indicators. forma specifically, are

But backlog, color leading why the this For is for growth fact being backlog XX-month impact, the can $XX And on you or if the the it XX-month close at currency to with guiding the important up million example, I'm growth. it's adding $XX up. was because million X.X% the real to we're back if we more this to is look give the and like of indeed of million us for $XX sequentially that start and acceleration midpoint seeing the up.

you the percent. of beginning X-point-something an growth that acceleration to So see definitely can of

year -- won to that in overall look the the we right You're seeing as year, continue to are course, new But half and how X.X%. things. pickup of year, new deals. of and we the should more expectation the midpoint well this it, you pickup. And see for the of is acceleration more deals we that coming as The if these on in trend seeing see we during the are through the that starting from growth ramp-up quarter close is second the

converting know exactly it's how presents, a matter revenue. it's hand, And executing XX% with them that that, yes, of deals the of we already happen. to going on the in have lot visibility and a recognizing So backlog we

some And continue them. with feel will We Cloud executing of conversion very that to ability double-digit very additional pipeline strong nicely. in deals perform to and cloud. from come about good continues from new growth the into the on

in activities. we And all some they that's pickup So number will start great, XXXX to great with from that as think some going and to early we G&A believe said don't huge start revenue I momentum to growth seeing say, there. is I'd see those a POCs that customers, before, we deals be well. but as contributing definitely, also starting

Tal Liani

Great.

The I to large second about just customer understand have is your question exposure.

you spoke that customers AT&T. big the XX% kind any projects the customers, So revenues. service in that about the of And you you can you or trends about trends about you Can are group you projects talk ending if had your as within providers? as to provide I number. any much starting wanted, concentration What are numbers remember focus kind the that that past? deal implementation that are the of group, -- the of represent big can used It be on of that have current don't and within giant I you

Tamar Dagim

we across X different just definitely the not buying monolithic I First of want drives centers. see It's contract customers, to our that. large remind business. that all,

We in are stuff in consumer around building their modernizing AT&T capabilities doing for multiple AT&T active, activities, Mexico. new across stack, example, Cricket, next-generation

those list the in zones. So

So But it's is activities add that means building whom seeing centers transformations name. with activity. more want with there. and for buying we the big top I many diversified of course, AT&T than beyond our are decision-makers just to us, a new customers a eventually it X different name, significant different

We to a push in country a win a new with for forward which geographies, mentioned big quarter, a example, new Japan. are it's it's market. NTT new into very last We we moving continuing new It's are for names. our new But a building on significant business. in That's us, market.

expanding North look continuing we're America, how to geographically. beyond we're So

in the that are names, customer. the we for be and mentioned of see America. Bell with relationship very Bell grow we Now is the platforms. we beyond Canada large a are back continue to North there big and activities project proud opportunity new within for We the Canada. America, And X consolidating continuing that charter that North a penetrate is ones them, are other example, customers, to remarks meaningful the we fact prepared the momentum feel to with have different to of significant expand consolidation we to billing

have that work list the that type of the with very, very goes the customers. we to X we business in beyond names definitely, So largest just with nicely continue expanding

to to completing XXX% terms nearly our having cloud ops, in which with expanded value providing both Managed Services, And moving expanding you, is operations. this proposition, we IT accountability also into to deploying into that innovation successful and another services into we for now expand with only continue managed not then to the Amdocs look think how push we full cloud customers Vodafone us more more while of example are it, good portfolio Netherlands, into cloud, really continuing customers the offering the example, them an adding providing in of because remind brings ways is supporting services new important serve renewal them in of I after which ops. managed existing we but forward a transformation and in ongoing under edge of and and

years to give flavor those back names, their you well we some with are and them large large logos base Japan. continue see new more to entity for support many customers X to in such expanding moving forward Just customer how as our new yes, of thinking been But to existing about we needs. with have as opportunities X working as in

Operator

Stifel. And of comes from question line our Shlomo Rosenbaum from next the

Shlomo Rosenbaum

about anything it? think want to you unusual is the And we're great in seems business, exiting the kind about give million? something more seasonality of up have ask backlog Shuky, leading stripping more out I it you stepping the you're Is that growth of some that way about it step exited can of is we drove up into again that moving should think contracts backlog? a I this then $XX in of backlog, there the pronounced to we any particular in there a is of And backlog, there Or types backlog. of up just any some and the the growth just believe. just any sequentially, this there business? in after growth the kind were but backlog, The the that color some it's indicator

Tamar Dagim

don't Thanks, regular the basis try Shlomo, a backlog. question. to have give color the We seasonality on I'll in typically there. additional for some

Specifically, the apples-to-apples. comparing this $XX it's sequentially of First million quarter, all,

phase is the this activity. after basis a on forma out pro of both So

and numbers. it to a some of it's full enjoying XX before terms apples that AT&T deals lower coming of backlog we than that comparing several from now year sets was just on contribution ramping the we execution that composition When to of dimension months. of we XX-month that the fact increase the we of in the already deal to the So apples have to recent cloud And fact the combination profile, full of a backlog, up in the acquisition. are backlog, in it's on the are of look new

see which into the that there. I'm backlog, say, of in broad-based would composition taking to we all I in And to consideration, happy that with is that very the always the have. So contributed of geographies great also terms

Joshua Sheffer

And have the luckily, we -- not $XX million does headwinds. some

Tamar Dagim

currencies. we a $XX why headwind currency is X.X% that after constant is That's pro forma from million the currency than absorbing are saying unfortunately the impact. X.X% number is rather that

being compare of a higher to midpoint X.X% on acceleration. revenue, obviously So if of the sign is you growth to want

Shlomo Rosenbaum

be And that factor not both so looking kind to organic that backlog, just little as business, guidance a acquisition, to on going acquisition, we're the And the the the in growth can bit if an of midpoint acquisition? the of would how apples-to-apples we the and the things you if Okay. down is at acquisition currency have in the look the much on PROFINET PROFINET revenue adding at you basis? did

Tamar Dagim

regi we year, of the part as the and into this promise. So year, that kind is we of said for some the factored the in of guidance beginning fulfilling acquisition, initial on

rest just of of to don't it less, the say, coming impact in was backlog, a I it. part the I name not the part emphasize, thought the probably and terms putting to M&A of it's the think the half a I plant. it's than year. contribution So of contribution would less in is organic. is such the big to incremental from It's of And the the to what we actually now beginning want

Shlomo Rosenbaum

more. Okay. And X if I in then can squeeze

given Is return offered? operate. proving a deal? changing the of with they it big ways a readiness POCs Is AI what's landing getting risk some there's out factor bit more Is it the that side, terms that. you little side? the about it lot just on kind on the enough comfortable gating of client and do a on their in Just investment, the think Can is to talk of you the what

Joshua Sheffer

I this that By way, This domain. in PROFINET the said, acceleration the we data depends. because a of of support lot general way as work. in acquisition of data the cases. preparing see use the can mean, a is It some all, of I first was the also rationale

there in we mentioned adoption, activities as simple was a AT&T other in of -- the and lot it you a that put of start works lot maturity of that care when that sometimes works to hands it, here, you or XXX% to this It to mean, very do we large customers. I are starting progress, center, customer I the it's precise. see accurate center call call it's So a get of know a lot in The level some it think you can we tool not and of so like that because -- it effective. the to representatives sure make put it's unionized

so The So some they we to start will some we believe deals -- and feel that -- already see and we expanding. acceleration signing becomes we it we see that are signed, maturity, in deals.

example, of started we much use a becomes For it broader Etisalat, that. with we a mentioned deal couple cases, more than

we So well. working are a see it's deal, acceleration. we whenever lending see some there, and we

Operator

the for of I'd the today's conclude any like to hand session program to program. Matt does Smith question-and-answer remarks. This further back

Matthew Smith

everyone, for Thanks, evening. this joining us Jonathan, and thanks,

us out have you with in additional If that, just IR Thanks And a great to do the any night. a have reach group. here lot. questions,

Operator

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

disconnect. may day. You Good now

Amdocs Limited (DOX) 4 Feb 252025 Q1 Earnings call transcript