Amdocs Limited (DOX) 6 Feb 242024 Q1 Earnings call transcript

Thank you for standing by, and welcome to the Amdocs Limited First Quarter 2021 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, Mr. Matt Smith, Head of Investor Relations. Please go ahead, sir.

John. Thanks,

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

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

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

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

agenda, growth and today's momentum we've the business and cloud. and XXXX, fiscal you recap Shuky generative including our also our sales for update of quarter against strategic executing the we'll continued first made on our financial progress continued framework, AI achievements will in On

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

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

go to many everyone solid and on fixed which to and to customer the needs cloud-based access around today. experiences power fiber BXB generative pleased digital a I'm afternoon consumer for the value start deliver amazing who good call world people and harness innovation to their to improved year, hard to networks, XG, fiscal of and AI. joining work us and wireless our journey our Matt, the on the Thanks, the report tanks

revenue accelerate guidance. of Record basis XX in initiative was Non-GAAP X% Slide increased financial midpoint appear healthy XX a share margin midpoint up was of million basis XX acceleration expectation. $X.XX months $XX ago quarter operating And the QX The first our of of consistent highlights from equationally our sequential results. $X.XX closed $X.XX, a Non-GAAP on and with profitability X. to points we of the earnings is year record X% a approximately our basis. fiscal and with year-over-year by billion, year billion per and ago line yield with on a backlog from up

activities months customers first our months our key as as backlog XX healthy with North Telecom strengthened the and Our and X. international momentum position in such quarter by large Slide XX Hungary reflects record AX AT&T deepened operators UAE. -- sales on Telekom such Germany, in expanding as Vodafone our EN American as highlighted Austria, T-Mobile footprint relationship Mige by Etisalat We and existing

a new in migration Additionally, in NTT and achieved Southeast operators Asia of awards Japan. project we and like in Netherlands momentum with Fiber at in the and in new sales strong logos added quarter cloud Delta networks another Canada, with [indiscernible] Spain

to to consistent supporting for foundation instrumental in offer BXB project completed future was large-scale and of consumer notable continue the business consumer world, Amdocs execution. also unparalleled T-Mobile's Amdocs successfully customer support thereby merger modernization around QX experiences an implementation for in the creating major and T-Mobile integration industry. expansion. several We the journey

conversion into Asia. subscribers our of seamless to XXX Elsewhere, operator XX latest and cloud-based omnichannel new to million Southeast a the around Amdocs of leading charger technology UK enabled a million customers migration for platform in

supporting completed, transformation maintenance digital XXXX, its subscribers. over stores. agreement with Brazil Rico, software for Puerto covering prepaid of was Claro Claro, and extended until offering XXX% Amdocs XX At full million Amdocs also

an Amdocs solution. migrated an Amdocs to on-premise secure a management Fotelsel cloud-based migrating campaign solution architecture Mexico AWS, with in existing

global revenue operational of To an forms long-term customers during remind the managed services signed Claro in support the under services business you, customers of our in bedrock as expanded Amdocs streams QX. our peak the high of engagement we in U.S. season. perspective, retail Puerto and managed recurring flawless and support such Black to with we which and holiday Chile in Friday Charter provide agreements the Rico From sales period

to reflecting offering at operational customer value the Amdocs long-term our Amdocs Congress innovation. version continue Customer commitment latest AI Suite newest Mobile World our and to this R&D market including technology month, highlights, innovation bring we'll to and and quarter, out to generative Rounding the cutting-edge introduce our M&A. of Experience Later fresh deliver this offering strategic service

expect We across experience network. leadership domains to customer technology all from demonstrate to the our

BXB, Now cloud, strategy, let experiences and from to need deliver simplify update innovation with the journey automated future market on me of the and adoption detail is the which on network and experiences seamless stand-alone solution, network. transforming unlock generative of XG next-generation delivering customer you journeys connected accelerated AI, with growth by customers our to consumer focused create market-leading industry true real-time dynamic accelerate potential

this of made providers reflected technology have Slide the We generative like we see Amdocs business the moves great AI are do AI X last quarter. on the generative in looking Generative X, gradually strategic the on groundwork deploy our to over a the across implementation strategy progress core priority carrier-grade the Beginning and stage. to to Amdocs. for to benefits. deliver AI the the Service pillars companies

Al and Amdocs CPQ therefore, benefit such products across First, powered latest Customers Amdocs Network Intelligent customer domains. will, flagship native suite generative assistance. embedded AI-powered suite our adopt our engagement by generative framework platform, OSS as from Pro, Amdocs or Amdocs Catalog AI from co-pilot network benefits now BSS, generative

generative The are factory that investor imperatives, generative our our new results industry cases the in AI which accelerate to in use continues of we Second, gave AI December. a case communication introduction key the promising. generative use AI addressed webinar of business test initial

up can average billing-related recommend products. almost customer and for rates to increasing XX% incited time to Inquire, XX%. alternative by and handling super inquiries solve care while coal Bill This reducing by agents traditional better agents instance, deflection With CSPs

Third, application partners of in with and scale Microsoft NVIDIA MAs the development and including AI and generative continue to services. industry leaders, strong collaboration we accelerate our evolve to web

cases to evidenced active To the path we industry in and adoption. position the future. including we by which of summarize, several accelerating several flagship for AI use collaboration providers established is renewing customer with believe the enabler, by power helping of engagement, dominant our already large close technology service of the Amdocs are role leading and our generative as simplifying the pilots Amdocs has capable of fully harness a important

measurable We on laser are delivering focused results. business

fiscal fully in migration momentum market Moving Slide XX. to provide accountable reflecting recognition cloud path. telco industry our to growing year strong QX into The cloud ability carried on end-to-end expertise of sales last and

deals, the won and service for the cloud of QX a cloud Asia. to move of X a new several in with Canada. During Southeast a including update start And program leading provider a migration legacy Tier platform the in of the operator large CSX

cloud, cloud a NTT operations management to deliver services NTT Group, will [Infoment], and secured Japan's subsidiary [Infoment] cloud which migrate managed NTT security the we under using platform. we and services and agreement of with IT Amdocs Additionally, transformation legacy a system cloud

digital including with new support BXB agreements, related offer to migration America's of North XX. mobile Altice allowing expanded consumer support services our Amdocs existing modernization multiyear Spectrum a to on leading its modernization through our them charging which and under Comcast, e-commerce At milestones are providers, include of trial businesses, relationship further the journey Charter customer -- sell customers and to solution. we customer multiyear we and we mediation working into service strengthen with sense We mobile, continued achieved channels. service sorry, automation. services, and Slide activities BXB exceptional communication And Moving T-Mobile point-of-sale to experience. expand their In solution, extend to managed major

triple first In selected services. and Our enable services. modernization project and as digital AX selected we digital are with the mobile of Europe enable Austria highly to resonating our services AI-based subscription rest Telekom fiber and also brand marketplace went FiNetwork where to Spain, play relevant. easy expertise onboarding of products Amdocs in suite a recently service partner Amdocs integration our world, and TV

agreement our life collaboration testing. staged the service BSS leading on in to a journey UAE, a We IT EN their user Etisalat the and entire acceptance embark provider and reached of by we modernization in with with accelerate to Central cycle across factory an modernize Europe. engagement enterprise And multiyear

to Slide XX. Turning

solutions opportunities as such We wireless service stand-alone revenue new access the XG deliver launch monetization flexible continue provider capture and to in to fixed area. needs

air to phase of in across program. successful broadband enable of is leveraging our AT&T now BSS and that is looking AIA, ESS AT&T's that of to country, Internet forward excited commercial are XX Amdocs we successful next launch the it the platform We are services locations the this available part cutting-edge

In XG Europe, reached to is modernization to charging Magenta Amdocs online upgrade Magal Amdocs and leading agreement Hunger service provider system in stand-alone we charging support Telecom policy an Telekom deploy Austria function, control in with to elected the journey.

and with our to cloud-native leading solution collaboration extended deliver provider with an user we XG their customers. Africa network policy their improved for Additionally, our experience enhance capabilities service North in

to for maintenance unlock the leading engine and network chosen for the a development was software provide in to also cable Amdocs by opportunities new engine, monetization ongoing for Netherlands, empowering growth. and monetization operator fiber, -- them data fiber support sales the

elements to the which in and automation. European Toco XG the new upgrade to already won service harness Service and other. major of is the and deployed acquisition year move We transmission, technologies network leading at X integrates Assurance Toco vitalization operators can and including streamline the solution an recently Service quarter, orchestration mobile announced to of to Koran cloud which also now customer X some power new domain end-to-end and first of The orchestration edge deals cloud, complex of on with Turning the expansion slicing services. system providers business, Amdocs solution, Western the customers. last

Turning to XX. Slide

few current state a me of operating environment. the Let the say about words

persists, overall our initial fiscal mostly macro of assumption compared start the while at industry uncertainty and as pressure environment First, remains year. the operating to the unchanged

Second, which long-term streams the support our system engagement, confident mission-critical generate highly we under we including remain from services. business resilient revenue model in of from managed resulting relative our recurring

to believe has as access continue gains, as we help efficiency customers the we positioned modernize their fixed experiences, accelerate Fourth, trusted Third, cloud-based and journeys enabling a on help and generative fiber for BXB productivity XG rich to consumer industry-leading believe digital wireless is and strongly customers enabler. pipeline to networks, AI, cost savings. future and relevant to position the partner long-term multiyear we our already improve opportunities of Amdocs our where see dominant Amdocs highly

XX. Wrapping everything Slide on together

to X.X% double-digit between We in which cloud reiterating of of X.X% are guidance revenue for activities. expected constant currency year growth healthy another fiscal our in XXXX, growth includes

Additionally, improvement ongoing efforts results to sophisticated profitability are AI and improve tools achieve we to this our year our of generative efficiency business. across capabilities implement pace expected automation, as yielding

midpoint fourth straight non-GAAP the Overall, per on our are track assuming year in the guidance we diluted share to earnings deliver XXXX. for double-digit growth of fiscal

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

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

solid performance with which our see of highlights pleased XX. I'm Slide the you the in on quarter, financial can first fiscal

from QX revenue Record a basis, quarter. a of an foreign at in QX, $X increased $X.XXX impact assumptions guidance approximately was year-over-year delivered currency a million. guidance record sequential all foreign our On regions which a of revenue X.X% America, included reported currency X delivered million impact operating movements basis, constant billion $X an was compared approximately of On including including year-over-year the of to in movements X% growth On revenue North midpoint geographic from currency. unfavorable unfavorable approximately and up basis,

down Moving the income statement.

with operating up up points driven margin XX sophisticated automation, quarter, artificial by ongoing intelligence ago of compared points the XX as year non-GAAP adoption was XX.X% other tools. of from a the basis and basis prior Our and

to other quarter. adverse currency quarter $X the foreign and roughly due Interest amounted million expenses in mainly to movements in first the

of a non-GAAP bottom diluted EPS non-GAAP midpoint range guidance to tax the rate and of XX.X%, annual of was our effective target the which included $X.XX was within On XX%. of at XX% line,

GAAP range Diluted quarter first was was to fiscal EPS $X.XX at the guidance the which $X.XX. $X.XX of the high of for end

sign sequential customers. backlog to On existing we by high healthy approximately a XX. up new months a Slide to logos in accelerated deals XX record Moving $XX million our QX of XX-month X%. amount a billion, $X.XX backlog with at as continue basis, was and

good XX traditionally leading a was of business. over indicator years of around a our As XX-month reminder, our roughly backlog averaged XX% and months forward-looking as revenue served has, the therefore,

$XXX record a was revenue services of total equivalent Managed million, XX. to Slide to Turning XX% revenue. about

such revenue engagement rates bedrock of recently our Charter, and referenced recurring services and which streams, earlier. agreement XXX% support of the the with provide multiyear Amdocs' managed engagements, Our the near resiliency Shuky renewal business as expanded

services Rico. And cloud Amdocs highlights transformation Chile. managed a other quarter, in VTL with services this services in charging Among new signed policy extended Claro Puerto for We agreement for its Amdocs managed managed and signed Fernet. a agreement at Claro NTT

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

activities. receivables deferred unbilled revenue As quarter-to-quarter, difference line business with in from fluctuates a the normal reminder, and net between

$XXX million. comprised first cash cash less and payments million $XX other. $XX adjusting flow restructuring of flow reported cash flow in $XXX reported $XXX free for net we operations for Note the the flow first quarter million have execution, cash in from capital would free which fiscal the of of strong that included reported expenditures quarter been million, Reflecting of free million,

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

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

financial final by in point, Moody's, at Amdocs' position BAAX notch strong reflected X to which investment-grade upgraded a by our November. S&P As also and is rating Amdocs

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

in $XXX QX. we payments excluding anticipated to XXXX, million approximately approximately million $XX ahead, the in continue incurred Looking which restructuring cash was expect majority of free flow of fiscal of

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

the of rate roughly Our to relative relative free and flow cash yield capitalization. to outlook healthy year Amdocs' conversion cash equates million income net of current free non-GAAP XXX% for approximately a a $XXX represents flow X% market of to

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

the continuing on revenue to the business current to turning operational monitor macroeconomic environment. Slide of begin, which outlook in Now business To closely elevated our geopolitical prevailing XX. and are we certainty level remains to and consider reflects have likely quarter full we XXXX on but Thus, cannot fiscal the financial most based possible the second predict guidance we today, information we year outcomes what scenarios. be the all

to are Beginning sign fiscal which year. execution to expect already is the to backlog, continue expected fiscal year convert on deals contribute XX deals with between and the in currency for our with guidance, reiterating organic. which our half this a based previous of new plan of year-over-year months plus we opportunities, second growth fiscal X.X% our in revenue half anticipate stronger the revenue to will X.X% the we top midpoint of Consistent a basis line, roughly X.X% we on constant to outlook XXXX,

cloud the year. to more on of year than which growth of deliver Additionally, we XX% fiscal already in you, double-digit to prior remind represented activities, another firmly revenue total remain in track

annual range includes fiscal to quarter $X.XXX a fluctuations with Our currency $X.XXX from QX. of and to outlook foreign impact assumes as revenue an second compared immaterial billion sequential billion

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

of margins are Moving operating XX. our on XX.X% to we on achieve target XX.X%, Slide income to down pace shown the range statement, within annual non-GAAP

gradual excellence. through ongoing year we our non-GAAP of and cumulative a fiscal anticipate operational Amdocs' improvement reflecting to margin XXXX, in quarter, continued to operating initiatives As we efforts cost said structure optimize last the benefits improve

This across which and additional sophisticated of efficiency tools added includes to gen resource the of improvements cost adoption expect and management, drive other automation business. we disciplined to AI our implementation

million operating other the of and non-GAAP a in on quarterly impact fluctuations net dollars line, cost expense and currency of that hedging will our several basis. Below anticipate lines range foreign the interest we

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

we together per fiscal year growth for including dividend in in straight outlook year the fourth XXXX, fiscal the reiterating of share of on near to to double-digit expect growth. share running full fourth shareholders' are about diluted outlook the which the growth mark total plus X% Moreover, return a XXXX, of XX, for earnings X%. everything Slide deliver non-GAAP our our for Bringing for earnings to yield of per double-digit non-GAAP year the midpoint range expected is XX% we

fifth back handing Jones that for prestigious sustainability to corporate the for in at ranked Amdocs to Sustainability the a the long-term percentile was for earning to consecutive Dow am America Shuky, its social the environmental S&P Amdocs surveyed BMI Before in on Index proud economic, say by was place top Global S&P commitment of based recognized the year. More companies XX% I responsibility recently and and the North specifically, XXrd criteria. of

an believe as sustainable steps our products to We journey standards. the held highest achievement while reliable ethical to our such in customers we the ensuring sustainability are reflects important and are operations taking our continue bring valuable, we

we In to by our emissions place and of the conserving line climate at set heart on on continues ourselves with centricity focus. the carbon the neutral people of Amdocs X our emphasis X Scope goal year, XXXX. long-term environment, last also becoming

to other globally important needy During around education, people communities QX, the and for disabilities, drive of leading diversity food serve many campaigns events STEM the initiatives. in we with gender and active support remained we and digital we inclusion, to held numerous awareness dozens company-wide worldwide,

to you, Shuky. that, With back

Thank you, Tamar.

we we to and note, remarks, my XXXX started earnings on As growth. of solid share have year a fiscal fourth consecutive are non-GAAP I on per said our achieving in opening track double-digit

questions. With that, take I'm your happy to Operator?

comes first from George And line Jefferies. Notter of from the our question

us I I hold headwind, in talking back on that hasn't guess on about guidance you you're could I the of I by to wanted maintenance-type larger asking customers? of looking quarters have couple of bigger transformation from lieu the last the to course, been for about full update But give projects what think trade-off you seeing year, terms start see changed. projects. the guys in of customers an

And said, this we don't in for big in first customer. you we trend. year. fourth the As the changes environment. quarter. change our is quarter Usually, is our is see I given not a mean, did This see our This end the of fiscal any

change far, we we significant the guidance. did -- change not we in discussed fiscal quarter the when So year to see any what gave previous

it's the part, most the For same.

Our customers old in for them, the program for and are invest we BXB. continue next-generation amortization to consumer both doing and

a see to Moving we continue mentioned double-digit agri last momentum in we domain. is we this the to strong and this our all very we -- see in of cloud, cloud-related quarter, activities, an and like growth predict

all as quarter legacy same the in was the We'll regarding I was we quarter. first This program But platform, it see year. last will mainly that customer. monetization on fourth I in -- said, the change. quarter The our this forward. reported said, go headwind our for As the This moving our is we of continues. did beginning what not

overall did environment. see the any in not changes we So

of happening [indiscernible] see said systems. the legacy here. of want of these the stack managed add clarification in that pressure and and a not where of do building enhancements in the just are is What maintenance new actually their that customers terms investing point We I seen we've modernizing And we services. that significantly to

both a services revenue in record our new rates high we're are you evidenced up renewal reporting managed customers as engagement. we're the well first quarter, fact, fiscal by see, signing as as managed as high seeing services that In can with

That's was the great. to And feedback other it. then product. on ask the early I Got Amaze on question wanted just

activity the customers are in guys CES know quarter you about, you a or see possibility you It's features product it guys are just in Any some iterations. for more putting would in products. there great. set on AI-driven with in you the be there a had with year? there Also, all outlook talk Is this you AI the so think new Can the now. customers? revenue not seeing could older I have I update

So Joe, significant a we in first see of acceleration all, engagement.

on remarks, different of offering, remind, have the offering. layers of to we prepared Just said as we pillar different

them of our are better products. Some to so

them are the top But AI. generative customers, our of our on Some Amdocs, meaning you're Amdocs to it, day, implement need AI, where way of calling exactly can generative we enable I at is all Microsoft this see when where they the of just end not product. want said, and the

the activity, data plumbing, There whatever it call hood under you is access. of can a lot in

So of cases, that grade, in would for I way, data use way, an a affordable that able every a in to need simple say, be implement way you carrier it's ton is question bring in or it. to to secure there a a operation

I this see and engagement overall, as during number -- said, we that the accelerated I tell So significantly can quarter. of you

Now far, now position concepts this did that believe I that a 'XX. year. of we many change doing hand, productivity right I of proof AI. see already regarding so are uptake generative not one revenue these think in will that revenue -- we happening from additional our not we regarding lot projects way In this gains, acceleration, some a do calculate on in Also, be we

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

the on up macro. following Just

February, the to real upgrades seen that or you haven't and of fourth trends Just confirm legacy January clear, spending referring to quarter? to you so in on be in just change the any were --

need really seeing these use you cloud are migrate acceleration your to secondly, then do more understand of Or cloud? aggressively that new AI an customers migration the to products? to to the And they the

and of moving the related platform our type I to and are of modernizing, cloud. of mean moving would of phases to say, the I of different all, different, customers are in And I agreements acceleration. most first the cloud. shape today Tim, see moving mentioned to before definitely, all that we the

we acceleration. definitely, So see

the last quarter... that we headwind Regarding discussed

we for we change when a headwind is the X% year, same That see we gave the original the don't discussed guidance there.

It's a...

So the on different guidance. it's everything view on We a based baked as of now. see we don't into have that

One month yes. into the year,

Any it. And last at it year mean, that be I or when sense great. Like for what could any historically, turn around? Got happened? sense yes, about another had look that when that X? might you would

As we the we certainly for gave the we specific this assumed the year, specific want guidance We a any more we level less original entered didn't changing. year. to take year, or the same for that is before that see different signs position

think too several now from soon as it's say but it an quarters we'll change we to definitely whether I So do update will early see as something. in right now, give

pipeline continue is, a importantly more renewals, continue we're to sign said, some XXX% we quite growing pipeline which some, of significant of can XX-month b, yet deals. as obviously see course, million which see, from think signed opportunities, of excited already, XX very see change Shuky new as I And to is logos. the and see backlog be the in you sequential to a, the to from we converted to

it how do on I examples kind now, services production of do now? have do be know was you just asked, it And to front, more right or of many able products customers expect you have you have And kind AI many then but like this you year? to -- the deploy of right in using

technology will Early, of are next to still of the showing experiencing say, results beyond the some we but in and the results are phase proof and other are we bullish would especially I I we opportunity. pin these -- gives imagination. see we we about in production, customers that couple is right concept, in areas of the care move working. this really huge quarters that the believe mean benefit are It already. in All now,

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

I have questions. X

First to the one, understand just guidance. EPS

Street. your I next your the for below guidance about in Street line right for $X.XX year is quarter guidance, when the guidance compare with So the it's but

you that by the that the that means So EPS second will in half recover expect year. $X.XX of

second you the So back kind question. EPS what first bring recovery half the drives $X.XX line-ish the in in of to guidance? That's to

conference to want I and to takes you question, of Last kind last just see for an on modernization legacy update. deals. more ask second said time to there immediate of said time budget that impact you cuts, And spending. you call are refer ramping you difference. But see That's a call, something just when back an it

comes coming? deals, get So update you timing they're seen versus new cuts see update? you expectations? Or projects. modernization what of to them when of to seen it just when timing have coming, them any to Have do about previous And you coming expect an on kind of versus

XX.X% Tal, see So gradual said as year. we we improvement question, go of for as have significantly that we the to a the margin we in operating part first through will the range also regarding year, the indicated XX.X% our and already the this elevated beginning of fiscal to year

basis continue So in the gradually improve. we to will XX have that expectation numbers, our already it now points we QX jumped and

the year. also second that the EPS half comes with And performance in of stronger the

and customer customer new decides enhancements, and to you're managed time. that's services takes a you're pretty pickup. start signing There's -- up modernization when slow pretty legacy a quickly. the enjoy second on of awarding revenue us let's revenue the say, the or of setup a the we if right. that ramp-up then project later a engagements, to for will the new phase, immediate, a the some on down At we pressure revenue explained Regarding same We time, part question, see

very the increase examples of other deals in modernization. these We the try our do of XX both a in well terms sequential of see million new We to terms XX momentum backlog. cloud give in sales, as a as nice of activities months the that lot support

our the You pillars, support in will aspect, transformation, that strategic the of we acceleration the it's cloud automation can see and whole the into visibility that our digital network half. across all XG, second expect the

also still the course, deals, sell to our We signings. we the finish need predict didn't additional as and more sign continued that pipeline we Of deals. to acceleration more part We need sales. of to conversion of

stock -- than And you analyst. longer Tamar, used the I've to have say I been covering been Great. as

you is visibility XXXX about visibility So used to had? What's ago entering many that many, XX%. the versus entering years the of say historical year visibility you kind

services as XX% customers Actually, about new entering like the year. focus are of converting logos. course, company has more managed as the revenue, we to with a to for enhance existing to percentage continue, fact the now, It on managed do years adding a some more and that we of services well roughly visibility talking as

roughly would looking XX%. I say into it We mathematically. shouldn't XXXX, So take

XX% So don't typically take into but speaking, looking future is of it helpful. exactly as a the And and and think that good X.X, indicator by backlog the backlog XX-month we indicator. take a that's the good roughly divide

[Operator next Power line comes William the Instructions] Baird. of from question Our from

Yes, the early tied shaping maybe pilots are if wondered kind to there curious first, how AI. you're include and pilots early circle want care it of And I that, a generative that's those one Okay. of to sounds any partnerships? Just customer you I guess I progress the I could, back just guess, the on already couple kind update Microsoft do kind to up. at. secondly, And of is questions. I know us of NVIDIA the of partnerships? of looking of like

customer be outside it'd generative of proof kind hear where -- with of kind of AI. or just looking you're I of concepts great other to at care pilots on thoughts

platform. POCs, open are in we with in that and engaging leveraging both some of NVIDIA, in think and cases I some most the NVIDIA cases, using Microsoft obviously definitely, our So

is almost engaging this happening we POC that pretty much So are right now. every in

cases We of one use bill, from same And that get different a so Regarding like try domains offer, are week, to based and many, customer try mainly I see like we information are bill than many the this. in better cases the is cetera. different generative from the use cases, lot offer do last right last at the -- are you next bill to use my why why best what offer to mean, the a of car, my high, time, AI. to they fruit low-hanging in et month that

we at a agent same of than of consumer and the with The see giving already is lot in to the many -- great something with call better chatbot of chatbot. said productivity in improving my results the both open the what eventually. I capabilities we great lot As care, remarks, really now a for prepared super tools. current much the or calls, And deflecting services idea time, to us a ability

generation, as many care other catalogs say, we said, we but are capabilities not are of So cases the we generative -- on in in side. that the I time, are we same are on implementing care, at fruit and involved lot have use additional, all them. the necessarily I say capabilities AI you mainly see and offer would the side that of, like would But a more low-hanging monetization

with lot are and NVIDIA. -- see a progress, we working of we both So very but and tight Microsoft

Maybe in Okay. slip I if more. could one

AI? know on on where share could other I you color you're anything generative where you that think some already. that in deep great. and else the the like AT&T it be relationships opportunities, But broadband both end of of in opportunities? any continued with T-Mobile share the seeing Is growth you biggest your the can wireless, it seeing sounds Maybe referenced prepared growth as X agile AT&T. you're customers is remarks, some I would

but are are Not tell monetization I that customers, can -- everything a can in we both level in we accelerating share -- you activities. the I high

we're we activities acceleration. activities of more So seeing certain more And in were them a last -- of both level year. now and

of in still customer this more cannot early are the see I acceleration, of in journey. we we very share them, modernization stages and modernization reminder, in pickup detail that. beyond the a As a both

Shirvaikar question Ashwin our Citigroup. line of the And from next from comes

Tamar. Shuky,

Okay.

margin terms direct it? Amdocs' benefit translate it more how But able with of to on you're -- to growth? does about it's And So and remarks because AI. pretty you were like gen efficiency translate in more prepared monetize better with that experience does that are based of AI. doing you're on yourself clients, you how your it side Obviously, things on for revenue your help comments wanted just demonstrating I to benefiting you're stuff ask guess and or side, for on your does you I made website, faster the put and the customers, guess I revenue you've you that. clear their other

it The AI answer working. want to it's to about generative expand color use more and that trying something, what domain. this eventually some mean case does let's then definitely a implement and I acceleration. contribute integration that simple care just see And will to our in to it do revenue the in say, is This not

of working customer if the of -- to you reps build at to it's CSR You the need by decides number all the day, XX%, need time. end reduce make because a the sure to mission-critical

-- around the it plumbing building huge. is it's So

point, XX to this are comes changed customer look going At own build last need want the the You open the maybe many, certain from was data X and AI. point, they At We customer. what customer to that a see to you need to invoices, information. to other, your history like to months data, the many when of catalog from plan at you infrastructure. the certain load are

So this the you need teach is a a model apply to in real that in way answer, time. can give short very aggregate taxonomy and which a correct it data, telco

relevant complex. an you carrier you which not and telco will grade, seconds answer. all XX it's So and efficient, that environment, until grade call see we can very wait or it's have be to this to correct get infrastructure Building data, secured highly what the is sit

know affordable also the all a done to lifting. this. very, we needs it's what -- very different built And to all this exactly we is in that it lot different information in right way. because real be from heavy what the affordable an do We data. cost to this platform way we have to This way. the access we exactly LLMs by of a that mean a can I could And be way, the said money is -- in sources we bring we enabler know do the made also

like simple perfectly located API, you a not is position that a this and do to just it's do So exactly this. where we said

this eventually this a to to relatively is going in this place. in technology. domain environment opportunities this of lot to Now we of that main believe we the be And projects be big enabler have put

Understood.

us the with of versus deceleration by is geography. question regards bit the in we revenues purely America. whether and of more is cyclical? with to that little a sort to of contracts? that kind Or reminding kind rate other EU was specific back look growth The higher kind and And of the because thing split going North -- that observe specific regards this the to is was mind at leading so of is there Do you of you

it, So the us for on region. an And including, intentional Europe -- call as well last our international focused into and as also managed of as East and the Europe Europe part classic to services. of terms with new of we part for the underpenetrated in several Europe, was in penetrating logos in European moving solidifying longer-term let's expansion, our many customers years our years past some of presence

It into there fact kind was to services. have building customers as European to managed they margin us to the also a which manage us European the social the there. help some focus on convince we aspects quite as move their customers move a historically of And formula for demographic well challenge that stronger giving cracked different

the established would managed say as And modernization in that a systems both the with most the projects fact it's of moving Remember, are drivers the we we that European significant have. of of to shift see the amount 'XXs. of we So market. in cloud, I doing are to customers wave well some existing their that European shift services that lot a with mobilization as the carriers

coming it's customer would say particular. broad-based. in I from not one So It's

countries. are We expanding into more

business example, we have any For several in almost didn't back, years Italy.

in carriers Now we are serving the X Italy. leading

projects Europe. new running Vodafone Germany. We're transformation expanding logos in East for into a large-scale We are

terms it's quite and a relationship broad-based in that. penetrating that Hutchison driving are Europe. with the Group of Amazing the expanding in So in customers success

We talked engagement. managed further the services last quarter about expanding there even

are We there. progress making on the modernization

So we growth Europe. a healthy story actually in very diversified see that and it's

Ashwin, with back go to your want question. to permission, your I first

that we to we it's have remember we're -- Amdocs to cloud. I in talking the for that think were do a the this. of the ago, are industry similar years to that some about And positioned the And that be time, the way we explain, taking cloud. installers to going best believe several we position

to We the the technology, the have do it. consulting, system

similar Everyone is it really you around in be where carrier-grade, we I the And think it's thing but systems cetera. are generative is It's if think your that we we several to when very is looking a perfectly heavy Amdocs' your similar to experiencing where use need that way, years -- mission-critical care, monetization, I early this our it's positioned what different the see the AI. to to to case, ago, do. industry Everyone in strength. talked to support are But right is days. et take cloud. we say to

So I in really customers. our technology to a to position think this right now enable actually are good we

translates it it. Understood. I get multiyear growth. to No,

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

this joining call Yes. everyone, the Thanks, for evening. John, and thanks,

out look here we soon. do great Have speaking any a reach group, us and the with just to questions, As to in have forward you always, if additional IR evening. you

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

now disconnect. You may Good day.