Amdocs Limited (DOX) 3 Nov 212021 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q4 2021 Amdocs Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to hand the conference over to your host, Mr. Investor Amdocs. of Head Smith, Relations for Matthew Mr. Smith, now begin. you may

Thank operator. you,

in is to such a isolating I items enables particular significant discuss business that Accordingly, that of information meaningful accordance in begin, order disproportionate that uses prior a we other analysis may to exclude company’s point that GAAP. certain of have prepared The with the would comparison have information its will management critical Before and results this we the like out effect management periods. investors acquisitions the in and effect effects the components events a management call, during believes company’s analyze financial of in to to period. consistently internal not and and to this of operations

regarding reconciliations including constitutes Also, today’s be information Form SEC financial more you of forward-looking release, on these our finished which use non-GAAP to information we that will call also includes refer the earnings of measures, statements. For with this measures, X-K.

and and our general those risks earnings release on These impact other of material. any risks duration in from based conditions, our will economic not the cause will believe are Commission, XXXX on on forward-looking and and furnished December fiscal be quarter COVID-XX its in the first these effects statements to in of filings risks quarter economy anticipated. update our the with the for for can pandemic X-K Annual XX, XX, reasonable or the results assurance assumptions, in ended and differ of fiscal severity XX, we XX-F forward-looking on obtained the uncertainties for the XX, September that August limited Securities length for filed such that discussed the and elect to include, including XXXX point Exchange greater XXXX but and we XXXX, February Form expectations give at be XXXX, May expectations involve and year XXXX fiscal may reflected not second no on third today the company’s Although statements our quarter Such future to on of Report XXXX XX, upon Amdocs are XXXX. as such future. and statements the the Form that some deviations global may at of fiscal in

and outlook to Time. that, a November progress Tamar business event for results also in on the Limited; and will a over fiscal XXXX. I’ll we Officer our XXXX fiscal the review do of which and Sheffer, X:XX Relations remarks webcast Update, will at we today on copy However, website. with the recent more specifically earnings of Tamar on today for Management X can me of To immediately be so. an Shuky Shuky the virtual invite company this update Relations On the support Joint following the of to a Analyst website Investor you be Shuky. are today’s Amdocs Business Chief information. future, process Rapaport-Dagim, our agenda, Executive posted call and live our turn our us on our Eastern presentation, finally, performance. for obligation Investor with providing it will Chief which to conclusion Friday, and strategic year of prepared Investor And And visit And will disclaims are call join – our Officer. section Please Financial section any always, Participating President financial And found as provide call. be and today’s Operating

to and afternoon the on good everyone call us today. Matt, joining Thanks,

are the providing helpful for full presentation will financial in as we are we opportunity. fiscal today’s today, hope alongside find going additional remarks. start We our growing company today an by As and investment our you year call information achievements business mentioned, XXXX. earnings Matt understanding our – I forward, this and recapping

will pillar of main it add past strategic progress the the to items quarter. with and you on key growth made I Second, from the significant framework we’ve

XX-month wrap capital our on well Finally, XXXX. up our will I outlook deployment. as will performance overall of expectation which, by the in as year on for another the growth financial detail Tamar After and fiscal backlog summarizing environment in accelerated perspective provide

the Slide excluding open you market, X. reminder, of XX, XXXX. a today our metrics impact on forma divested which refer will a I’m business applicable certain comments a on with financial provide trends, we on the to financial As where to underlying sense pro the basis of December

we people culture support our our and a And me the requirements and experienced of continuous communities highly our strategy talented begin the to work. the year such is of meet not of well customers. a pandemic, which it to learning achievement corporate leadership global XXXX. purpose for could prouder in was and and so values, I’m as our also to and by upside. growth execute live in belongs our saying results found year employees to be credit of we This in mission-critical while base global of began Let constantly that demonstrate proud amid which fiscal by this exceptionally providing accelerated ways team. see to model we pivotal the embracing Operating much our revenue drive

technology and from more digital last they’ve webinars commitment career to acknowledge we And needs skill ran thousands in of in the experience together is few take just and an to indication among to students than of for the the over communities, example, like I even many hundreds and and achieve I’m the and all Philippines, serve people partners, confident to the values working included the commitment more to would story peripheral customers, and access have this and – communities recently one inspiring one the in year. As talent, improve to our a which tailor-made another the our This future. opportunity XX conductivity schools. develop shown volunteering vendors. project to upskilling to hours take employees the we planning, of

Slide Moving to X.

me it’s fiscal growth Amdocs operational year factors, key have the us financial taking point quickly revenue believe inflation point. led worth this and for XXXX. of of I accelerated an in Let the a address highlights and some exciting moment recap to which to

XXXX modernization including to First, journey best our and industry in as to development in customer position with certain we XX% support technology more relevant by us and cloud investment year have the offering further XG. market fiscal in the investments the leader than most to and digital mega trends, research

noncore – market a on and XXXX and divested capabilities we further our that technology March and in XG Second, in further August Openet strategic in asset XXXX continue and cloud. accelerate to Group open services execute acquisition the of Sourced

forma and industry-leading modernization their start transformation build win partner established next-gen service example our managed platforms, advantage bigger by the growth wins with highlights customer healthy project of XUK, year Europe we financial ourselves North position, on all, XXXX in to we and at across operation, and multiple pro revenue in X% hybrid competitive in can as the of a activity multiyear greater fiscal the America, strong AT&T, for of constant delivered T-Mobile next-gen business accelerating excellent under All from include in at the recent you and Slide see world. the transformation reach XXXX, we the Finally, X. awards driven rest currency We are cloud a agreement. finished year

XXXX, We $X.X backlog collections shareholder fourth flow up $XXX generation and full of dividend on points the Moreover, nearly achieved for cash sales earnings with Our free we’re record double-digit cash target billion, up per forma growth non-GAAP normalized report in record by a of which delivered non-GAAP million and momentum quarter, forma XX% return we including milestone, XX-month ever margin plus our continued number total customer record basis. year pro to share for XX ago third our pro our a highest yield. of on operation through ended our year. of XX.X% from fiscal converting the which basis a

XX. Slide to turning Now

recent against address our imperatives. on me the you Let strategic progress

As a in; cloud experience our to modernization accelerate to journey needs one, base; digital across enterprises cases; and provide two, platforms to our leader and enhance monetization and network-based customer XG an of adoption to to XG critical strategy operation; a customer innovation three, and use to all four, automate real-time clear experience bring support services. the simple cloud reminder, transform consumer to and support growth amazing new market-leading we the exciting to dynamic have customer to business automation network

a technology experience each evolution, on its the cloud, pillars. cost made these and has thrilled increasing program business for under certification next-gen QX, are of long-term improve progress system efficiency us During customer BSSe that we we and agreement. long-term is significant speed-to-market, BSSe, AT&T cloud operations of across selected support focused modernization In effectiveness.

agreement. and Microsoft broadband in starting project consumer will long-term agreement, will of cloud-native mobility, a on of IoT. And cloud this and Moreover which basis Under Azure new operation process previously the new provide its consumer run BSSe As the activity. expands under modernizing deep AT&T’s is already a products announced, be its the Amdocs AT&T mobility Amdocs set next-gen with units award domain. includes

share pleased signed consumer service AT&T’s the managed XXXX the extended to domain. Additionally, with I’m in for XXXX agreement

industry working new providers at XG and of service monetization. Moving the remains exciting add XG to experiences. Amdocs the forefront with to leading

Amdocs Korea networks Korea multiple LGU+ Orange to around by small expertise business receive of are Telecom in to system Stand and growing by globe, first XXXX, curating Alone XUK, provide capabilities, new France. benefit network, Stand expect engage the the XG number new providers Amdocs for for QX, XG potential A unique XG of projects, AT&T, service In Operations, of unlocking operational we across largely a were launched support and opportunities. During game-changing customers, Alone and selected of Verizon, monetization T-Mobile in model experimental business July XG the others. including we new cloud modernization and countries dozens

modernization. digital to Turning

our collaboration We strategic in catalog VM to We customers. customers see our wins fixed digital Globe expanded business improve Suite its under with Amdocs continue and mobile line services Philippines a to to and with Telecom several Commerce relationship expanded experience its new quarter. digital provide seven-year the to and for new the this up Kazakhstan agreement. Uzbekistan ramp We momentum strong in with for

and innovation delivery hybrid assurance satellite-based by offering also cloud our the provide the two has industry-leading automation build the orchestration Amdocs service collaboration customer world’s solution. SES to network successfully support Finally, been this solution service SES, the service quarter, providing continue for end-to-end to operator companies, we agility for satellite that of satellite leading SES network. and an engaged In by the its open global momentum of between with growth enable expansion, network the to

believe, Suite Automation and Network fiscal partnership We are XG have strategic to backdrop, customers to automation and our network With quickly Slide across to include, a We amazing multiyear outlook. innings rich cloud-driven with of XX a see enterprises. to Amdocs to the and power journeys communications our investment and Globes easily. in cycle. turn the Telecom to early consumers cloud industry We XXXX extended for our and enable we of opportunities me Globe and Service create experiences that year let digital transformation pipeline and

opportunities extends market. We laser-focused and in our these our converting quarters, the the further future the which to backlog coming are technology, cutting-edge lead growth roadmap leveraging: in of supports our competitive on customers

on in share dividend to including: forma to of our X% call for diluted highly running Annual midpoint deliver rate the to share, fiscal of midpoint year XXXX, Our growth earnings approval the turn proposed world. delivering currency Meeting are base, our which deliver execution our the on quarterly a for forma the remarks. we range, track customers non-GAAP let expected customer-centric our for $X.XXX shareholder the guidance yield and per Tying me of positioned total With returns second expect around record the shareholder that, constant based in XX% assuming new fiscal per pro value talent the of double-digit Moreover, guidance to a X% together, at everything her January. of assuming basis upcoming accelerated Tamar roughly pro of revenue skilled, we growth XXXX. our and in

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

financial on we market, certain XX, excludes As pro a forma basis, to divested of financial impact which on reminder, refer open a my comments today XXXX. December which will the metrics

quarter and Shuky’s Turning are proud financial for XXXX. to echo very of to comments like Slide performance that I fourth year XX. our we the would fiscal

was best-ever quarter Record above unfavorable America. currency with the $X.XX pro me quarter was $X Let revenue of XX.X% to QX fluctuations constant despite relative guidance. North Revenue in million year-over-year was from by currency of guidance start our our billion fiscal performance. led an on up midpoint basis fourth and forma foreign impact a of

statement. the income down Moving

improved XX.X% was basis operating Our XX our QX target line of points long-term a end margin with the non-GAAP year of in and ago. by range high from

As offset focus a than R&D more excellence markets. were on and accelerated divestiture of a by investments operational open

non-GAAP with consistent was On EPS in the range. our guidance midpoint which $X.XX of line, diluted bottom the was QX,

past, rate range fluctuate year. of fourth expectations. of our we have with our may the consistent of fiscal throughout non-GAAP high As quarter, above the but said effective in to XX%, In was XX.X%, rate XX% the target annual the tax course fiscal effective non-GAAP tax our the end our

pro of fiscal to the for as within we acquisitions an guidance rate our $X.XX on original year of target delivered we Clearbridge, of revenue executed outperformance Summarizing to For primarily year. basis, effective the above the year as growth EPS which was the This $X.XX was year. from ADT a fourth midpoint accelerated a a GAAP for well contribution our fiscal currency XXXX, annual our which due small $X.XX. Sourced, during in was X% fiscal reported of Diluted the XX.X%, constant of full range. we which forma ahead core tax quarter and stronger-than-expected range of business the was the performance XXXX, guidance

benefit and margin share On line, a revenue of by operating to the non-GAAP share pro activity XXXX, and non-GAAP faster fiscal basis the our per forma in growth year the year. during earnings X.X% bottom on the repurchase pace growth driven of diluted improved accelerated

by X.X% revenue compared the a Slide XX. serves QX to months roughly as momentum leading revenue. record of a in from grew of years. ago year a XX to June quarters healthy a up XX. of sales also was million XX Managed from as our of QX, backlog Moving has ago, over resulting business, year XX% traditionally Services, months forward-looking good a XX several strong revenue of XX% $X.XX continued rose last The which sequential to forma consistently months a around XX-month having basis, in on backlog basis. high indicator backlog equating billion, averaged for pro On $XXX total quarter the where was

including expanded next-gen Our recurring the managed rates resiliency of existing with multiyear streams, our operations. engagements with cloud renewal activities services business and revenue customers, underpin high into

BT for deal and for Shuky a For instance, that in addition BT’s to EE renewed to maintain, has the its AT&T years further Amdocs relationship quarter, enhance discussed, three with this Group platform develop the brand. BSS

and cash Turning sheet the to flow. balance

XX, collections. DSO that progress our milestones are of As you can which in on see to is Slide pleased days, is invoicing to strong for This translating we in reflected achieving fourth Altogether, healthy say and $XXX quarter. cash fiscal in decreased and customers year-over-year project revenue XX decreased six our fiscal QX. the fourth by normalized days two the deferred Moreover, in sequentially flow quarter. in days remained a by our of cash million we for position free great generated

$XXX flow ratio above roughly $XXX of to our than balance our was with borrowings XXX%, free million, roughly significantly strong XXX%. and equated relative prior net approximately including ended a cash a year of For guidance million. full non-GAAP aggregate cash we fiscal long-term conversion the of year, million to income of our the of average normalized $XXX well Overall, better

liquidity, to a and be opportunities ample the with needs support our sheet growth is the arise. in and we fund retaining as when Our business position capacity good while investments strategic to right strong future to continue balance expect ongoing to our

committed to our maintaining investment-grade Additionally, remain we rating. credit

allocation capital XX. on to Slide Turning

to returned cash annual the For dividend XXXX, million million $XXX shareholders, including payments. in we $XXX fiscal

the towards received QX net deployed included we buyback accelerated profits year, repurchasing $XXX and from the open divestiture which million in the For share during of we repurchases, $XXX and also market, the our program quarter. million

Looking expect we cash $XXX ahead XXXX, million. normalized of to approximately fiscal flow free

$XXX CapEx million assumes new the excludes Our outlook of Israel our anticipated complete roughly of capital. about rate and income net conversion of a XXX% as development we non-GAAP

This are of Meeting for majority our dividends, approval Regarding fiscal dividend XX% expect includes we normalized new announce XXXX, cash a rate proposed roughly to we capital the allocation in increase $X.XXX Annual shareholder to per in share, quarterly which in to return a flow of shareholders. our of at subject free January. year to pleased our the to

elevated. Slide be our The turning the including the XX. on year and what consider business operational full we first of presenting outlook to all novel said, of Now and guidance quarter magnitude The to but to reflects the expected of basis. on acceleration the possible to today, the surrounding of likely remains level duration strains revenue pandemic, that scenarios. its XXXX revenue macroeconomic with the constant we fiscal uncertainty predict approximately midpoint pro year a based by fiscal have year-over-year of will business most outcomes in X% XX% cannot last continue we on currency believe forma XXXX information we grow With COVID-XX

We generate regions. key also of all geographical three growth expect to across our

of revenue outlook the On approximately of to the reported year Our basis in X.X% foreign full year-over-year. growth $X.XX to anticipates unfavorable billion revenue fiscal impact currency expect $X.XX XX a includes annual quarter an we range year-over-year, range X.X% first within of billion. points which basis,

basis. currency and to line, focus non-GAAP the excellence. in we on operating XX.X%. range a income achieving to the pace interest new in with This of quarterly that operating line midpoint to line our to our Below range anticipate quarterly operational of statement, dollars R&D outlook in continues of margins net with the customers, strategy, few our annual we foreign an expense a continue fluctuations track of Moving down roughly on constant target other support investment assume impact balanced with the our anticipate a XX.X% non-GAAP million accelerated will to

growth non-GAAP within GAAP X% everything XX% XX% the of diluted fiscal together, to for our XX% above annual that will share growth that per fiscal target deliver year-over-year. second year expect in the QX. shareholders’ high forma unchanged XXXX. to Overall, range for XXXX, total of XX% non-GAAP the non-GAAP range double-digit for expect per earnings for cash pro dividend the share returns but to our basis of $X.XXX expect of diluted to year the forma of remain With rate of to On running on effective range year a the pro basis, X.X% proposed share. expect year fiscal – XXXX, We a deliver plus an tax we EPS reported of per Bringing to that, payment Shuky. we roughly a based we full growth the newly full in quarterly earnings on guidance, you, non-GAAP full diluted year midpoint end of full including XX.X% X% back yield

you, Thank Tamar.

have to this of Amdocs success questions. discussing we years a analysts continued Amdocs the world. and we into investors excited past over say and for which strategy an that to us future. forward let go to and built moment are join accelerated me to update Before coming virtual that, several Q&A, take an We look With provide growth all competitive continued with the have the the and digital you we in happy are Operator? positioned will advantage your that to increasingly for take foundation hosting we our unique strong support the success to business Friday, to I’m invite appreciation

Ader from Jackson first Your of [Operator the JPM. comes question Instructions] of line

line Your is open.

Great. taking questions guys. my for Thanks

Hi, Jackson.

adjusted flow would the on the the provide on cash strength can you with comments revenue kind just in or maybe be additional reported double-clicking flow? any And great? one, that performance cash either combined First of given

Sure.

that year. raised the started then a we’ve there in be to if first is story year, signing that started the of earnings, did then twice. payments to as customers And upfront of earnings par. first during the all, many on And monetization signed year convert T-Mobile the multiyear with we we deployments, bank. business this you we number part strong we we see high and terms part to year, numbers where a ability definitely year for and the some course, and was invoices It always a the of roughly to contributed invoicing generate turn, translates deal for our from all achieving expect continue healthy cash model that record also very of in over achieve to as as of recall, we starting strategic stronger this a the quarter-to-quarter turning time, of in milestones said, have and, into robust deal. but the quarter So, that then in its into of collection the with And

of do do That to that years say our on deal I’m to we very have the deliverables we of with has that a execution So, and cash. a a result it’s we company things focus although call lot many to many customers. pleased to cycle and strong as

large America maybe, Okay. the as think maybe How telecom. of look have, those Great. little largest like the customers just of are XXXX some about rest growth or North And bit customers in that the world of very fiscal kind the then you in smaller? right, that carriers Shuky, a to expect maybe very customers and should we from your – we should specifically either relative

quarter similar we the AT&T, we investment XUK, the which customer see backlog across momentum, but more, if the these we signed said, also the or great very As and another not remarks, and be America, we in definitely Vodafone is across megatrends size prepared deals that you guys in the which T-Mobile I numbers but in the mentioned think and of pleased we we’ve I geographies. on the as strong mids journey world, are to other reflected increase the backlog. are Europe in world are far, in the the of before, the that is of utilization can are, see beginning discussed, large growth in to all here operators others in very North see cycle, some cloud, of Obviously, pretty said in XG the that are the

North the probably of the definitely, we in the which are The bigger, world. lot world. around are think but see size biggest I the in the of big projects because of a America, projects operator So,

in to America you just see between if and of split XX add the in with within – line it’s backlog QX, improvement color, we months in million Maybe revenue sequential pretty $XXX much look internationally. on the North

So happy over place see not to it’s one broad-based. all very that healthy. the It’s just and Naturally, Shuky concentrated said, as in region.

Yes.

Make great. you Thank Okay, sense. very much.

Thank you.

next Tom the comes Stifel. line question of Your Roderick from of

Your line open. is

Hi the getting it’s Max the bit in [indiscernible] guide full Can guess, you just cash start, on how I a on year just the little for Tom. to back want thinking for about year? given about of flow, I been for going by more next strong forward forecast XXXX? steep they the talk kind decline have

the repeat just you Could last sentence?

going, decline projected for million? the So $XXX the yes

unfortunately, have cash convert I found us not seriously, to yet that over And convert over than time, time, So you earnings. patent the par, should more expect meaning I think to XXX%. at

rate. we about XX% with conversion very a happy strong year Now, that very and had

said always it’s sustainable. not We

it’s not but say we performance. in to always sustainable be Yes, that

projecting we XXXX, to deliver protect growth rate earnings while I can per a for rate, being remember continuing while while think conversion decade, that share margins, growth. double-digit XXX% highest over are for I the continuing to at

the of while et I to acceleration. I growth to package mentioned balanced growth. very in cetera, see and a, investment protecting how obviously a to invest we: continuing R&D, continue that think is terms in margins this continuing

than more cash really this exceptional prospect. was from convert But not we the I to And agree this earnings. with year magic Tamar, an did find

in talking XG the growth, strategic digital pillars and then domain and and speaking that Shuky, like cetera. about of And those do et and the see of current cloud, get those goal? Do to you it. reach movement that environment Got of carriers enough revenue carriers board on need kind more to are to X.X% Or year? of next for X.X% generate that the growth embracing embrace these growth to

to think be that is to order has era, I be to go in the new Amdocs to about some these discretion. this successful has of in transition world digital to Every megatrends think cloud. do and that don’t the to have type customer of what’s nice in XG, I to there

true the and critical see are that not is and budgets by APAC And deployment future. is U.S. the comparing – key XG their by factors is So these just to customers this that to of little in is are a it’s because the following U.S. is ahead domains the this is broadly. This we for – way, way, funneled bit the actually our following they all close lot very we this megatrends the are to able is a but complete journey the time definitely, world. will to be which convert second, see until XG, industry These for aggressive a so, it a one-off take year. followers really, utilization years the really of not will move And is across to say this because at and cloud, the the like several used to beginning. success

it. Got Thanks.

Thank you.

[Operator Instructions] Your next question comes from Tal BofA. Liani of

line open. is Your

question. the for Thanks guys. Hi,

Tal. Hi,

starting hold done who projects and on a just understand companies discuss sustainability was this can are carriers growth longevity, long-term during we’re have – deployed cloud sell you long-term little growth the whether you color growth? projects and give of growth I want things to growth is delayed Can are COVID seeing on these to maybe across and anything were meaning acceleration and the The who versus bit year, into now seeing acceleration the you being we’re that on cycle the us translate this acceleration? or that acceleration, Thanks.

the Hi, of stay a been take – transform as time have years. megatrends it it in the developed are we T-Mobile, new and lot will takes are these And several projects the I until by for mean to companies speak. AT&T, going of Vodafone, years. size all And are like to multiyear Tal. projects. these a Definitely, here XG way, opportunities all to use cases

long-term time to just that answer question, year I if deploy before, as stay are that your project these time. doesn’t very not project to them. are for is starting. will these project. projects takes a short some They’re we And the matter several a megatrends take years. or It these to So one mentioned And telco big it’s medium-sized

investment cycle the is really So early – the said innings that we – early so it’s not today. in

lot these your participation seeing in you equipment we And announcing Got projects other spending last since cloud. telecom seen and plans. how there about participate it. quarter, you seen a and we’ve talking talk the your then, big, whether network remarks, Shuky, do about So, that big seeing? names the that the investment in Can the on in telecom you spoke big cloud we’re in cloud names, investments? are companies meantime, And about cloud and we’ve big

aspects. are participating in what We in this, cloud different we journey call

deal this first that is ground the And as being deployments all monetization. stack for transformational on our a all on cloud. as was one greatest a which we new cloud up mentioned, CSXX, cloud built the latest and native do, from is consumer The and for it’s I the our done platform native AT&T, building this

of them some of them are are Some on [indiscernible], Azure. on

So, we cloud partners. are working with all the

the is the first to angle cloud. this So

we be involved the or several and and could Amdocs in cloud. Secondly, into non-Amdocs legacy in shift are It of activity lift taking application. customers application application

is do, time. all growing is this which the that So we activity another

cloud to re-platform The not modernization, and activity So in moving and is them sales taking application, the it’s on cloud. this but off. the case, full cloud the leave them

cloud doing works, next-generation what happened and environment. quarter, quarter, the in our this we announced is if we pillar a XG. the consumer which of domain we we old won initially, think on doing for cloud so third this to in awarded As you announced, operation do AT&T, suite And

So, we for domains. the that of tailwind. leader, the we nice journey And – have us three I these very that market all by in way, cloud think represents I to the think a the are lot a

Great, thank you.

Ashwin Shirvaikar Citi. Your next comes of from question

Your line is open.

are you there. Hi How guys?

Hi Ashwin.

technology, many of commentary you about IT an being cast? a companies than is talent, services services supply. great. supply that wider high-end guys short you to with would talent companies. Any Many have the been regards thoughts obviously, been IT companies from somehow because question talking my you about you is have even be net have broader to protected, affecting Hey particularly talking there guys Any

Ashwin. Thanks,

directions. it are at we naturally, yes, we what of see people And several that very So looking center focused a as in on talent. the the do, we our company from

we opportunities an risk itself into company cetera, last operate or replatforming into scaling definitely our people et them them for career of we that both of the On niches course, how do Et the to learning awards kind is effectively native we top it. IT sits to as there cloud And capabilities. in around do an relative How certain companies we fact purpose customers, in the the certain things our only to model products, by unique the in lot of industry the employees existing we global multiple on sense that that into and how invested as years over enjoy see to of the development cetera, office onboard how new comes re-choose society the our physically in of for opportunities whether employees to so, important. regular and create say the all, scaling and continuing make would the And then the impact do to that in went employees, do our gets develop couple business employees that virtually onboard Amdocs. a important of into provide opportunity employees. continuously are major to and effectively How risk of do and the obviously because depots, of that, we of deploy on every work, do to creating of products platforms? into of we to Put course, or way, that not think the where to cetera. First employees. a have that all career new top the on I ability scale, that, make so very won art we our company? come that And are of addition things sensors impact their the that. that, day world, that’s in just an connectivity et are attract on are make unique environment we’ve that top that of our to

So have we delivery in. you, very a topic model. are yes, we a well remind it’s To that global engaged

markets how all activities, the access called company efforts to being and we continuously have of or capabilities new technology no-touch on are world, tools on focus the to that, the have capability focusing automation we’re of talent top leveraging being to innovation on built. as course. by We to And and over into a and that all create well, and are what’s automated the whatever flows new people that people’s move not does done of be

your way Got multiyear I cycle. is talk question it. as Thank you think you of about for XG sort that cloud-based transformation of and the of The through it is that. And of innings going other kind managed then And early that to project-driven and work, have does is on then? the financial services is comes that project-driven impact model versus affect mix? an overall mainly

their of for AT&T this selecting technology products announced are to new a now So, what these same the same form today where call of you that an project. in are deploying through deployment new product the environment. example ops But just and and consumer this of us time adopting us customer customers us for to cycle and all stack we very see the next-gen time, applications at on cloud selected happy selected the it run cycle many we Amdocs our their building on the mobility at the

future are we that fast like a and can model and Ashwin, what we So, it. so with new entering are then recurring model to accountability to what project much of with the seeing it believe stream case continuously Amdocs products, many it to enable Amdocs like, best see services us our the XXX% on on rely cutting-edge the continue building course And to in would bring we run technology to choose to them existing services. very engagement. time, customers the for to their they can same for of we about, I the close moving we adding and high managed you We continue that Amdocs, pull-through on of call The of managed see renewal that comes will rate that a that revenue we investments both. services. cycle also so of them having do proud at

predict the that’s ratio as and great. question. revenue exactly to hard to project see managed it’s and What’s our specific predict ratio engagement, both growing to we the services how financial So between

you. Okay, Thank understood.

Thanks, Ashwin.

showing I like now Mr. to [Operator time. the would I this turn Smith. further Instructions] to no questions at conference am back

proceed. may You

and you forward Thank that, evening, for Thanks. for to have our With this Analyst days, conclude you in you interest event and We great the Friday. very evening much hearing joining coming and look Amdocs. from the in we’ll at on a your call. us of seeing course,

for wonderful have concludes and you participation, your conference call. a This today’s day. Thank

disconnect. now may You