Latest news with #ShukySheffer
Yahoo
08-05-2025
- Business
- Yahoo
Amdocs (NASDAQ:DOX) Reports Q1 In Line With Expectations
Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ:DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations. "Q2 was a good quarter for Amdocs as we executed our strategy to deliver the cloud, digital, and AI-based solutions our customers need to ensure amazing experiences and seamless connectivity for billions of people each day. Revenue of $1.13 billion was up 4% from a year ago in pro forma(1) constant currency(2), and deal conversion was strong, led by continued sales momentum in cloud. Amdocs has won a deal to facilitate the migration of both Amdocs and non-Amdocs applications to Microsoft Azure for a Tier-1 European service provider, and we were also selected for the next phase of PLDT's cloud modernization journey in Philippines. Consumer Cellular, a new US client for Amdocs, has chosen our SaaS-based connectX solution to expedite the launch of new digital brands. We also extended our collaboration with NVIDIA and other GenAI partners to further evolve Amdocs' amAIz platform and to support the data and GenAI requirements of our customers," said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited. Revenue Guidance for Q2 CY2025 is $1.13 billion at the midpoint, roughly in line with what analysts were expecting Is now the time to buy Amdocs? Find out in our full research report . Telecom software provider Amdocs (NASDAQ:DOX) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 9.4% year on year to $1.13 billion. The company expects next quarter's revenue to be around $1.13 billion, close to analysts' estimates. Its non-GAAP profit of $1.78 per share was 4.5% above analysts' consensus estimates. Story Continues With $4.75 billion in revenue over the past 12 months, Amdocs is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it's challenging to maintain high growth rates when you've already captured a large portion of the addressable market. To expand meaningfully, Amdocs likely needs to tweak its prices, innovate with new offerings, or enter new markets. As you can see below, Amdocs's sales grew at a sluggish 2.8% compounded annual growth rate over the last five years. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. Amdocs Quarterly Revenue Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Amdocs's recent performance shows its demand has slowed as its revenue was flat over the last two years. Amdocs Year-On-Year Revenue Growth We can better understand the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Amdocs's backlog reached $4.17 billion in the latest quarter and averaged 1.6% year-on-year growth over the last two years. Because this number is in line with its revenue growth, we can see the company effectively balanced its new order intake and fulfillment processes. Amdocs Backlog This quarter, Amdocs reported a rather uninspiring 9.4% year-on-year revenue decline to $1.13 billion of revenue, in line with Wall Street's estimates. Company management is currently guiding for a 9.6% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 3.4% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Amdocs has been an efficient company over the last five years. It was one of the more profitable businesses in the business services sector, boasting an average operating margin of 14%. Analyzing the trend in its profitability, Amdocs's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Amdocs Trailing 12-Month Operating Margin (GAAP) In Q1, Amdocs generated an operating profit margin of 17.5%, up 5 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Amdocs's EPS grew at a decent 8.9% compounded annual growth rate over the last five years, higher than its 2.8% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't expand. Amdocs Trailing 12-Month EPS (Non-GAAP) Diving into Amdocs's quality of earnings can give us a better understanding of its performance. A five-year view shows that Amdocs has repurchased its stock, shrinking its share count by 16.7%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Amdocs Diluted Shares Outstanding In Q1, Amdocs reported EPS at $1.78, up from $1.56 in the same quarter last year. This print beat analysts' estimates by 4.5%. Over the next 12 months, Wall Street expects Amdocs's full-year EPS of $6.76 to grow 7.8%. Key Takeaways from Amdocs's Q1 Results We were impressed by how significantly Amdocs blew past analysts' full-year EPS guidance expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, EBITDA missed and its EPS guidance for next quarter missed. Overall, this print was mixed. The areas below expectations seem to be driving the move, and the stock traded down 3.5% to $86.26 immediately after reporting. Is Amdocs an attractive investment opportunity at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
05-02-2025
- Business
- Yahoo
Amdocs Ltd (DOX) Q1 2025 Earnings Call Highlights: Strong Profitability and Cloud Momentum ...
Revenue: $1.11 billion for Q1, up 1.7% year over year on a pro forma constant currency basis. Profitability: Increased by 310 basis points year over year and 250 basis points sequentially. Non-GAAP Earnings Per Share: $1.66, exceeding the midpoint of guidance. 12 Months Backlog: $4.14 billion, an increase of approximately 2.7% year over year on a pro forma basis. Managed Services Revenue: $729 million in Q1, representing 66% of total revenue. Free Cash Flow: $101 million before restructuring payments; $78 million after restructuring payments. Cash Balance: Approximately $349 million at the end of Q1. Shareholder Returns: $198 million returned through share repurchases and dividends in Q1. Operating Margin: Non-GAAP operating margin of 21.2% for Q1. Full-Year Revenue Growth Guidance: 1% to 4.5% on a pro forma constant currency basis. Non-GAAP Diluted EPS Growth Guidance: 6.5% to 10.5% for fiscal 2025. Warning! GuruFocus has detected 4 Warning Signs with EA. Release Date: February 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Amdocs Ltd (NASDAQ:DOX) reported first-quarter revenue of $1.11 billion, slightly above the midpoint of guidance, despite negative foreign currency impacts. Profitability improved significantly, with a 310 basis point year-over-year increase in non-GAAP operating margin, driven by the phaseout of low-margin business activities. The company achieved a healthy 12-month backlog of $4.14 billion, reflecting an $80 million sequential increase and a 2.7% year-over-year growth on a pro forma basis. Amdocs Ltd (NASDAQ:DOX) continues to see strong sales momentum in cloud services, with double-digit growth expected in this segment for the year. The company has expanded its managed services agreements, maintaining a near 100% renewal rate, which supports recurring revenue streams and business visibility. Reported revenue declined by 10.9% from a year ago due to the phaseout of certain business activities. Europe showed weaker performance, mainly due to timing differences between project roll-offs and new deal ramp-ups, though growth is expected to resume next quarter. The company faces ongoing macroeconomic, geopolitical, and operational uncertainties, which could impact future performance. Despite a strong pipeline, there is uncertainty about the timing of deal closures and revenue recognition, particularly in the AI and cloud segments. The company's growth rate of 1.7% in pro forma constant currency is considered low, with expectations for acceleration in future quarters. Q: Is there something changing in the marketplace that's driving the pipeline of significant projects? A: Shuky Sheffer, President & CEO, noted that while there isn't a definitive change in the market, the pipeline is rich with mature deals across all geographies and growth domains. Amdocs is focusing on closing these deals to start recognizing revenue this year. Q: Are you seeing an improvement in spending on legacy projects, or is the focus more on cloud and new projects? A: Shuky Sheffer, President & CEO, stated that the focus is more on new projects such as cloud, BSS transformation, and digital modernization, rather than legacy systems. Q: Can you break down the 1.7% growth in pro forma constant currency for Q1, and what could change to increase growth sustainably? A: Tamar Rapaport-Dagim, CFO & COO, explained that the growth is expected to accelerate, with a 12-month backlog showing a 3.5% increase. The growth will come from ramping up new deals and converting a strong pipeline into additional deals, with cloud continuing to perform well. Q: What are the trends within your large customer group, especially with big service providers? A: Tamar Rapaport-Dagim, CFO & COO, highlighted that Amdocs is active across multiple activities with large customers like AT&T, and is expanding into new geographies and with new customers. The focus is on diversifying activities and expanding Managed Services. Q: Regarding AI, what are the challenges in landing big deals, and what is the potential impact on carriers? A: Shuky Sheffer, President & CEO, mentioned that the focus is on preparing data for generative AI use cases. Challenges include ensuring data readiness and proving ROI. Amdocs is seeing progress in data domain activities and expects acceleration in signing deals. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Associated Press
04-02-2025
- Business
- Associated Press
Amdocs Limited Reports First Quarter Fiscal 2025 Results
Revenue of $1.11 Billion, down 10.9% YoY as Reported and up 1.7% YoY in Pro Forma(1) Constant Currency(2) Delivers Substantial Profitability Improvement, Reflecting Phase Out of Certain Non-Core, Low Margin Business Activities & Operational Efficiencies 12-Month Backlog of $4.14 Billion, Accelerating by $80 Million QoQ and up 2.7% YoY on a Pro Forma(1) Basis Expects Fiscal 2025 Revenue Outlook of (11.6)%-(8.5)% YoY as Reported Reiterates Fiscal 2025 Revenue Growth Outlook of 1%-4.5% YoY in Pro Forma(1) Constant Currency(2) Reiterates Fiscal 2025 Target for Double-Digit Total Shareholder Returns(3) First Quarter Fiscal 2025 Highlights (All comparisons are against the prior year) (1) For comparison purposes, pro forma adjusts first quarter fiscal year 2024 revenue by approximately $150 million and fiscal 2024 revenue by approximately $600 million to reflect the end of certain low margin, non-core business activities; these activities substantially already ceased in the first quarter fiscal 2025 and are not included in the full year fiscal 2025 revenue outlook (2) Revenue on a constant currency basis assumes exchange rates in the current period were unchanged from the prior period (3) Expected total shareholder return assumes midpoint of fiscal year 2025 non-GAAP EPS growth outlook, plus dividend yield (4) Please refer to the Selected Financial Metrics tables below (figures may not sum because of rounding) JERSEY CITY, NJ / ACCESS Newswire / February 4, 2025 / Amdocs Limited (NASDAQ:DOX), a leading provider of software and services to communications and media companies, today reported operating results for the three months ended December 31, 2024. 'Fiscal 2025 is off to a solid start. First quarter revenue of $1.11 billion was slightly above the midpoint of guidance adjusting for currency, and 12-month backlog accelerated by $80 million sequentially. Among several key wins this quarter Amdocs is leading a billing systems consolidation for a large Tier 1 operator in North America. We also saw the continuation of strong sales momentum in cloud where we signed a new cloud operations services agreement with a large Western European provider. From an execution standpoint, we successfully delivered many project deployments for our customers, including the launch of new charging platform for a European operator and M1 in Singapore. Additionally, we remain laser-focused on delivering world-class innovation in cloud, digital and Gen AI-based solutions that service providers need to grow revenue, improve efficiency and deliver exceptional customer experiences,' said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited. 'Profitability rose significantly in Q1, driven by the previously announced phase-out of low-margin activities, and our focus on operational excellence, automation, and AI to drive ongoing efficiency gains. Further supporting our high level of business visibility, managed services accounted for roughly 66% of total revenue, a material improvement from a year ago. Additionally, we expanded the scope of existing managed services engagements with several customers, maintaining our impressive renewal rate which has trended close to 100% over time,' said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited. Sheffer concluded, 'As a market leader, we are proud of Amdocs' innovative, Gen AI-based solutions and our execution and mission critical operations expertise. We also have a pivotal role in supporting our customers growth, efficiency and industry consolidation strategies. Across our large addressable market, we see a rich and encouraging sales pipeline which we are working hard to monetize while navigating the continuously challenging demand environment. As to our fiscal 2025 outlook, we are reiterating our guidance for revenue growth of between 1% to 4.5% in pro forma(1) constant currency(2), as well as another year of double-digit growth in cloud. Moreover, we are on-track to deliver double-digit expected total shareholder returns(3) for the fifth consecutive year, underpinned by our ongoing margin expansion initiatives and robust earnings to cash conversion.' (All comparisons are against the prior year period) Revenue for the first fiscal quarter of 2025 was slightly above the midpoint of Amdocs' guidance, adjusting for negative impact from foreign currency movements of approximately $6 million relative to our guidance assumptions Revenue for the first fiscal quarter includes a negative impact from foreign currency movements of approximately $4 million relative to the fourth quarter of fiscal 2024 Net Income and Earnings Per Share In thousands, except per share data Three months ended December 31, 2024 2023 GAAP Measures Net Income $151,852 $148,722 Net Income attributable to Amdocs Limited $151,133 $147,965 Diluted earnings per share $1.33 $1.26 Non-GAAP Measures Non-GAAP Net Income $188,877 $183,833 Non-GAAP Net Income attributable to Amdocs Limited $188,158 $183,076 Non-GAAP Diluted earnings per share $1.66 $1.56 Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition related liabilities measured at fair value, equity-based compensation expenses, restructuring charges, and other, net of related tax effects. For further details of the reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below. Capital Allocation M&A Activity: On December 31, 2024, Amdocs completed the acquisition of Profinit, a data science and engineering company, for a net consideration of approximately $34 million with additional consideration to be paid later based on the achievement of certain performance objectives, as well as two smaller acquisitions Quarterly Cash Dividend Program: On February 4, 2025, the Board approved the Company's next quarterly cash dividend payment at the new increased rate of $0.527 per share, as approved at the January 2025 annual general meeting of shareholders and set March 31, 2025 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on April 25, 2025 Share Repurchase Activity: Repurchased $144 million of ordinary shares during the first quarter of fiscal 2025 Twelve-month Backlog Twelve-month backlog was $4.14 billion at the end of the first quarter of fiscal 2025. On a pro forma(1) basis, adjusting the comparable period for the phase out of certain business activities, twelve-month backlog was up approximately 2.7% as compared to last year's first fiscal quarter. Twelve-month backlog includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities. Second Quarter Fiscal 2025 Outlook Second quarter revenue guidance assumes a negative $3 million sequential impact from foreign currency fluctuations as compared to foreign currency rates prevailing at the end of the first quarter of fiscal 2025 Second quarter non-GAAP diluted EPS guidance excludes primarily equity-based compensation expense of approximately $0.20-$0.22 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.12 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects GAAP diluted EPS guidance does not include the impact of future restructuring charges Full Year Fiscal 2025 Outlook FY 2025 - Year-over -Year growth Current guidance Previous guidance Revenue Growth, as reported (11.6)%-(8.4)% (10.9)%-(7.7)% Revenue Growth, Pro-forma (1) constant currency (2) 1%-4.5% 1%-4.5% GAAP Diluted earnings per share 27.0%-34.0% 25.0%-33.0% Non-GAAP Diluted earnings per share 6.5%-10.5% 6.5%-10.5% FY 2025, in millions Current guidance Previous guidance Free Cash Flow (4) $ 710-$730 $ 710-$730 Revenue growth on a pro forma(1), constant currency(2) basis adjusts fiscal 2024 revenue by approximately $600 million to reflect the end of several low-margin, non-core business activities, including certain low-margin software and hardware partner activities, Vubiquity's transactional video on demand business and non-core subscription services; these activities substantially already ceased in the first quarter of fiscal 2025 and are not included in the full year fiscal 2025 revenue outlook Full year fiscal 2025 revenue guidance incorporates an expected negative impact from foreign currency fluctuations of approximately 0.6% year-over-year, as compared with a positive impact of approximately 0.2% year-over-year previously, and includes some inorganic contribution Non-GAAP diluted earnings per share growth excludes primarily equity-based compensation expense of approximately $0.84-$0.90 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.48 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects The impact of the acquisitions on Amdocs' non-GAAP diluted earnings per share is expected to be immaterial in the full fiscal year 2025 GAAP diluted EPS guidance does not include the impact of future restructuring charges Non-GAAP operating margin is anticipated to be within a range of 21.1% to 21.7% for the full year fiscal 2025 Non-GAAP operating margin is comprised of GAAP operating margin, excluding amortization on purchased intangible assets and other, equity-based compensation expense, restructuring charges, and changes in certain acquisitions related liabilities measured at fair value Non-GAAP effective tax rate is anticipated to be within a range of 15% to 17% for the full year fiscal 2025 Free cash flow(4) is comprised of cash flow from operations, less net capital expenditures, and excludes payments related to restructuring charges The forward-looking statements regarding our second fiscal quarter 2025 and full year fiscal 2025 guidance take into consideration the Company's current expectations regarding macro and industry specific risks and various uncertainties and certain assumptions that we will discuss on our earnings conference call. However, we note that market dynamics continue to shift rapidly and we cannot predict all possible outcomes, including those resulting from certain geopolitical events, the current inflationary environment, global or regional events, and the prevailing level of macro-economic, business and operational uncertainty, which have created, and continue to create, a significant amount of uncertainty, or from current and potential customer consolidation or their other strategic corporate activities. Conference Call and Earnings Webcast Presentation Details Amdocs will host a conference call and earnings webcast presentation on February 4, 2025 at 5:00 p.m. Eastern Time to discuss the Company's first quarter of fiscal 2025 results. To participate in the call, please register here to receive the dial-in numbers and unique access PIN. The conference call and webcast will also be carried live on the Internet and may be accessed via the Amdocs website at Presentation slides will be available shortly before the webcast. Non-GAAP Financial Measures This release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow, revenue on a constant currency(2) basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income, non-GAAP net income attributable to Amdocs Limited and non-GAAP diluted earnings per share growth. These other non-GAAP measures exclude the following items: Free cash flow equals cash generated by operating activities less net capital expenditures. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs' results of operations in conjunction with the corresponding GAAP measures. Amdocs believes that the presentation of non-GAAP diluted earnings per share and other financial measures, including free cash flow(4), revenue on a constant currency(2) basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income, non-GAAP net income attributable to Amdocs Limited and non-GAAP diluted earnings per share growth when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations, as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business. For its internal budgeting process and in monitoring the results of the business, Amdocs' management uses financial statements that do not include amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition-related liabilities measured at fair value, restructuring and unusual charges or benefits, equity-based compensation expense, other and related tax effects. Amdocs' management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these items in reviewing its results and those of its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the items. Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of revenue, research and development, selling, general and administrative, operating income, interest and other expenses, net, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments. Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below. Supporting Resources About Amdocs Amdocs helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers' innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end user and large enterprise customers. Our employees around the globe are here to accelerate service providers' migration to the cloud, enable them to differentiate in the 5G era, and digitalize and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $5.00 billion in fiscal 2024. For more information, visit Amdocs at This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macroeconomic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other regional events or pandemics, as well as the current inflationary environment, and the effects of these conditions on the Company's customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the Company's customers. Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, security incidents, including breaches and cyberattacks to our systems and networks and those of our partners or customers, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the Company's offerings and operations, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2024 filed on December 17, 2024. Contact: Head of Investor Relations Amdocs 314-212-8328 AMDOCS LIMITED Consolidated Statements of Income (In thousands, except per share data) Three months ended December 31, 2024 2023 Revenue $ 1,110,055 $ 1,245,199 Operating expenses: Cost of revenue 682,259 812,744 Research and development 84,333 89,207 Selling, general and administrative 122,087 142,504 Amortization of purchased intangible assets and other 15,759 16,410 Restructuring charges 6,783 - 911,221 1,060,865 Operating income 198,834 184,334 Interest and other expense, net (6,409 ) (9,778 ) Income before income taxes 192,425 174,556 Income tax expense 40,573 25,834 Net income $ 151,852 $ 148,722 Net income attributable to noncontrolling interests 719 757 Net income attributable to Amdocs Limited $ 151,133 $ 147,965 Basic earnings per share attributable to Amdocs Limited $ 1.34 $ 1.27 Diluted earnings per share attributable to Amdocs Limited $ 1.33 $ 1.26 Cash dividends declared per ordinary share $ 0.479 $ 0.435 Basic weighted average number of shares outstanding 112,745 116,841 Diluted weighted average number of shares outstanding 113,439 117,536 AMDOCS LIMITED Selected Financial Metrics (In thousands, except per share data) Free Cash Flows (In thousands) Three months ended December 31, 2024 2023 Net Cash Provided by Operating Activities $ 105,555 $ 182,387 Purchase of property and equipment, net (a) (27,355 ) (43,743 ) Free Cash Flow $ 78,200 $ 138,644 (a) The amounts under 'Purchase of property and equipment, net', include immaterial proceeds from sale of property and equipment for the three months ended December 31, 2024 and 2023, respectively. AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (In thousands) Three Months Ended December 31, 2023 GAAP Amortization of purchased intangible assets and other Equity based compensation expense Changes in certain acquisitions related liabilities measured at fair value Other Tax effect Non-GAAP Operating expenses: Cost of revenue $ 812,744 $ - $ (13,527 ) $ 1,583 $ - $ - $ 800,800 Research and development 89,207 (1,867 ) 87,340 Selling, general and administrative 142,504 (10,686 ) 131,818 Amortization of purchased intangible assets and other 16,410 (16,410 ) - Total operating expenses 1,060,865 (16,410 ) (26,080 ) 1,583 - - 1,019,958 Operating income 184,334 16,410 26,080 (1,583 ) - - 225,241 Interest and other expense, net (9,778 ) 1,534 (8,244 ) Income tax expense 25,834 7,330 33,164 Net income 148,722 16,410 26,080 (1,583 ) 1,534 (7,330 ) 183,833 Net income attributable to noncontrolling interests 757 757 Net income attributable to Amdocs Limited $ 147,965 $ 16,410 $ 26,080 $ (1,583 ) $ 1,534 $ (7,330 ) $ 183,076 AMDOCS LIMITED Condensed Consolidated Balance Sheets (In thousands) As of December 31, 2024 September 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 213,833 $ 346,085 Short-term interest-bearing investments 135,175 168,242 Accounts receivable, net, including unbilled 990,859 1,028,357 Prepaid expenses and other current assets 266,861 228,498 Total current assets 1,606,728 1,771,182 Property and equipment, net 734,400 755,601 Lease assets 155,485 149,254 Goodwill and other intangible assets, net 3,066,911 3,005,637 Other noncurrent assets 730,217 704,468 Total assets $ 6,293,741 $ 6,386,142 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable, accruals and other $ 1,230,093 $ 1,315,679 Lease liabilities 38,625 39,983 Deferred revenue 116,114 115,247 Total current liabilities 1,384,832 1,470,909 Lease liabilities 108,722 103,462 Long-term debt, net of unamortized debt issuance costs 646,444 646,291 Other noncurrent liabilities 647,883 666,303 Total Amdocs Limited Shareholders' equity 3,464,263 3,456,976 Noncontrolling interests 41,597 42,201 Total equity 3,505,860 3,499,177 Total liabilities and equity $ 6,293,741 $ 6,386,142 AMDOCS LIMITED Consolidated Statements of Cash Flows (In thousands) Three months ended December 31, 2024 2023 Cash Flow from Operating Activities: Net income $ 151,852 $ 148,722 Reconciliation of net income to net cash provided by operating activities: Depreciation, amortization and impairment 46,415 45,861 Amortization of debt issuance cost 151 149 Equity-based compensation expense 26,520 26,080 Deferred income taxes 1,651 (6,683 ) Loss from short-term interest-bearing investments 662 548 Net changes in operating assets and liabilities, net of amounts acquired: Accounts receivable, net 2,417 (66,657 ) Prepaid expenses and other current assets (14,787 ) 4,452 Other noncurrent assets (7,925 ) (10,538 ) Lease assets and liabilities, net (2,329 ) (5,340 ) Accounts payable, accrued expenses and accrued personnel (50,837 ) 95,787 Deferred revenue 867 (25,930 ) Income taxes payable, net (5,129 ) (18,066 ) Other noncurrent liabilities (43,973 ) (5,998 ) Net cash provided by operating activities 105,555 182,387 Cash Flow from Investing Activities: Purchase of property and equipment, net (a) (27,355 ) (43,743 ) Proceeds from sale of short-term interest-bearing investments 33,362 8,534 Net cash paid for business acquisitions (57,083 ) (77,329 ) Net Cash from equity investments and other 16,347 928 Net cash used in investing activities (34,729 ) (111,610 ) Cash Flow from Financing Activities: Repurchase of shares (144,483 ) (158,525 ) Proceeds from employee stock option exercises 4,408 4,428 Payments of dividends (54,081 ) (51,053 ) Distribution to noncontrolling interests (1,323 ) (1,322 ) Payment of contingent consideration and deferred payment of business acquisitions (7,599 ) (1,500 ) Net cash used in financing activities (203,078 ) (207,972 ) Net decrease in cash and cash equivalents (132,252 ) (137,195 ) Cash and cash equivalents at beginning of period 346,085 520,080 Cash and cash equivalents at end of period $ 213,833 $ 382,885 AMDOCS LIMITED Supplementary Information (In millions) Three months ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 North America $ 737.4 $ 835.8 $ 828.8 $ 823.2 $ 838.1 Europe 155.2 184.1 175.9 184.8 181.4 Rest of the World 217.4 244.0 245.3 237.8 225.7 Total Revenue $ 1,110.1 $ 1,263.9 $ 1,250.1 $ 1,245.8 $ 1,245.2 Three months ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Managed Services Revenue $ 728.9 $ 721.4 $ 740.8 $ 720.3 $ 722.5 as of December 31, September 30, June 30, March 31, December 31, 2024 2024 (*) 2024 2024 2023 12-Month Backlog $ 4,140 $ 4,060 $ 4,250 $ 4,230 $ 4,210 (*) Reflects the phase out of certain business activities from the fourth fiscal quarter of 2024 onwards. SOURCE: Amdocs - IR
