EX-99.1 2 d42259dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Amdocs Limited Reports First Quarter Fiscal 2024 Results

Record Quarterly Revenue of $1.25 Billion, up Roughly 5% YoY as Reported and in Constant Currency(1)

Record 12-Month Backlog of $4.21 Billion, up Roughly 3% YoY and $60 Million QoQ

Reiterates Fiscal 2024 Revenue Growth of Roughly 1%-5% YoY(2) as Reported and in Constant Currency(1)

Reiterates Double-digit Diluted Earnings Per Share Growth in Fiscal 2024, Supported by Accelerated Profitability

First Quarter Fiscal 2024 Highlights

(All comparisons are against the prior year)

 

  •  

Record revenue of $1,245 million, up 5.0% as reported and up 4.8% in constant currency(1); revenue was at the midpoint of $1,225-$1,265 million guidance range and includes an unfavorable impact from foreign currency movements of approximately $5 million relative to the fourth quarter of fiscal 2023

 

  •  

Revenue growth across all regions, including record revenue of $838 million in North America, up 3.1%

 

  •  

Record managed services revenue of $722 million, equivalent to approximately 58% of total revenue

 

  •  

GAAP diluted EPS of $1.26, at the high end of the guidance range of $1.18-$1.26

 

  •  

Non-GAAP diluted EPS of $1.56, at the midpoint of the guidance range of $1.53-$1.59

 

  •  

GAAP operating income of $184 million; GAAP operating margin of 14.8%, up 210 basis points as compared to last year’s first fiscal quarter and up 360 basis points sequentially, primarily reflecting restructuring charges of $25 million recorded in last year’s first fiscal quarter and $46 million sequentially

 

(1)

Revenue on a constant currency basis assumes exchange rates in the current period were unchanged from the prior period

(2)

Expected revenue growth for the full year fiscal 2024 of 1.1%-5.1% as reported and 1.2%-5.2% on a constant currency basis

(3)

Please refer to the Selected Financial Metrics tables below (figures may not sum because of rounding)

  •  

Non-GAAP operating income of $225 million; non-GAAP operating margin of 18.1%, up 40 basis points as compared to last year’s first fiscal quarter and up 30 basis points sequentially, reflecting a continued focus on operational excellence

 

  •  

Free cash flow of $139 million, comprised of cash flow from operations of $182 million, less $44 million in net capital expenditures and other(3), including $16 million of restructuring payments; reiterates full year fiscal 2024 free cash outlook of $750 million, excluding restructuring payments

 

  •  

Repurchased $159 million of ordinary shares during the first fiscal quarter

 

  •  

Record twelve-month backlog of $4.21 billion, up approximately $60 million sequentially and up approximately 3% as compared to last year’s first fiscal quarter

JERSEY CITY, NJ – February 6, 2024 – 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, 2023.

“Fiscal 2024 is off to a solid start as we leveraged our innovative product and service offering, and unique business model, to meet the strategic investment priorities of our customers. First quarter revenue was a record $1.25 billion, consistent with the midpoint of guidance and driven by year-over-year growth across all three of our operating regions. Twelve-month backlog of $4.21 billion was a record-high, accelerating by $60 million sequentially in Q1. We secured additional customer awards in support of multi-year modernization programs in North America, and strengthened our international presence with several key deals, including new logo wins such as Finetwork in Spain which selected Amdocs’ Digital Brands Suite as a Service. In cloud, strong sales momentum continued with numerous wins, including a cloud transformation and managed services award with NTT Infranet in Japan. Additionally, we accelerated our leading position as a Generative AI industry enabler, leveraging investments in Amdocs’ amAIz Gen AI framework and our strategic partnerships with Microsoft and NVIDIA to advance use cases with a growing list of flagship customers,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

“Improved operating profitability was a notable highlight in Q1, driven by the ongoing adoption of automation, artificial intelligence, and other sophisticated tools. We also reinforced our reputation for execution, supporting a high number of project deployments which included major successful implementations at several large-scale customers worldwide that create the foundation for future business expansion. From an operational perspective, I am pleased to report a record quarter in managed services, primarily driven by cloud transformations and the ramp-up of activities under long-term agreements with new and existing customers,” said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.

Sheffer concluded, “Looking ahead, we continue to see a rich pipeline of opportunities to help our customers modernize for cloud-based 5G, fixed wireless access and fiber networks, improved digital consumer and B2B experiences. Additionally, we are making significant progress in Generative AI, where we believe Amdocs is already established as the industry’s most dominant technology enabler. Overall, and while macro uncertainty and industry pressure remain mostly unchanged, we are reiterating our guidance for constant currency(1) revenue growth of between 1.2% to 5.2% in fiscal 2024, which includes another year of expected strong double-digit growth in cloud. Moreover, our initiatives to accelerate profitability are on-track, positioning us to deliver a fourth straight year of double-digit earnings per share growth in fiscal 2024, based on the midpoint of our guidance range.”

Revenue

(All comparisons are against the prior year period)

 

     In millions  
     Three months ended  
     December 31, 2023  
     Actual   Guidance  

Revenue

    $1,245     $1,225 - $1,265   

Revenue Growth, as reported

    5.0%  

Revenue Growth, constant currency(1)

    4.8%  

  •  

Revenue for the first fiscal quarter of 2024 was at the midpoint of Amdocs’ guidance, and includes unfavorable impact from foreign currency movement of approximately $1 million compared to our guidance assumptions

 

  •  

Revenue for the first fiscal quarter includes an unfavorable impact from foreign currency movements of approximately $5 million relative to the fourth quarter of fiscal 2023

Net Income and Earnings Per Share

 

`    In thousands, expect per share data  
     Three months ended  
     December 31,  
     2023      2022  

GAAP Measures

      

Net Income

    $ 148,722      $ 129,872  

Net Income attributable to Amdocs Limited

    $ 147,965      $ 129,667  

Diluted earnings per share

    $ 1.26      $ 1.07  

Non-GAAP Measures

      

Non-GAAP Net Income

    $ 183,833      $ 176,542  

Non-GAAP Net Income attributable to Amdocs Limited

    $ 183,076      $ 176,337  

Non-GAAP Diluted earnings per share

    $ 1.56      $ 1.45  

 

  •  

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, and other, net of related tax effects, in all the periods presented, and in the three months ended December 31, 2022, also excludes restructuring charges 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 November 2, 2023, Amdocs completed the previously announced acquisition of Astadia for a net consideration of approximately $75 million in cash, with additional consideration to be paid later based on the achievement of certain performance metrics

 

  •  

Quarterly Cash Dividend Program: On February 6, 2024, the Board approved the Company’s next quarterly cash dividend payment at the new increased rate of $0.479 per share, as approved at the February 2024 annual general meeting of shareholders and set March 29, 2024 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on April 26, 2024

 

  •  

Share Repurchase Activity: Repurchased $159 million of ordinary shares during the first quarter of fiscal 2024

Twelve-month Backlog

Twelve-month backlog was a record $4.21 billion at the end of the first quarter of fiscal 2024, up approximately 3% 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 2024 Outlook

 

     In millions, expect
per share data
     Q2 - 2024

Revenue

    $1,225-$1,265

GAAP Diluted earnings per share

    $1.21-$1.29

Non-GAAP Diluted earnings per share

    $1.53-$1.59

 

  •  

Second quarter revenue guidance assumes immaterial sequential impact from foreign currency fluctuations as compared to the first quarter of fiscal 2024

 

  •  

Second quarter non-GAAP diluted EPS guidance excludes equity-based compensation expense of approximately $0.17-$0.19 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

Full Year Fiscal 2024 Outlook

 

     FY 2024 - Year-over -Year growth
     Current guidance   Previous guidance

Revenue Growth, as reported

    1.1%-5.1%   1.0%-5.0%

Revenue Growth, constant currency (1)

    1.2%-5.2%   1.2%-5.2%

GAAP Diluted earnings per share

    13.0%-19.5%   11.0%-18.0%

Non-GAAP Diluted earnings per share

    8.0%-12.0%   8.0%-12.0%

 

     FY 2024, in millions  
     Current guidance      Previous guidance  

Free Cash Flow (3)

    $ 750      $ 750  

 

  •  

Full year fiscal 2024 revenue guidance incorporates an expected unfavorable impact from foreign currency fluctuations of approximately 0.1% year-over-year, as compared with an unfavorable impact of approximately 0.2% year-over-year previously

 

  •  

Non-GAAP diluted earnings per share growth excludes equity-based compensation expense of approximately $0.72-$0.78 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

 

  •  

Non-GAAP operating margin is anticipated to be within a range of 18.1% to 18.7% for the full year fiscal 2024

 

  •  

Non-GAAP operating margin is comprised of GAAP operating margin, excluding amortization on purchased intangible assets and other, equity-based compensation expense, and changes in certain acquisitions related liabilities measured at fair value

 

  •  

Non-GAAP effective tax rate is anticipated to be within a range of 13% to 17% for the full year fiscal 2024

 

  •  

Free cash flow(3) is comprised of cash flow from operations, less net capital expenditures and other, and excludes payments related to restructuring charges

The forward looking statements regarding our second fiscal quarter 2024 and full year fiscal 2024 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 (including the recent attacks in Israel and evolving conflict), the current inflationary environment, global or regional events, such as the COVID-19 pandemic 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 6, 2024 at 5:00 p.m. Eastern Time to discuss the Company’s first quarter of fiscal 2024 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 https://investors.amdocs.com. 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(1) 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:  

 

  •  

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

 

  •  

tax effects related to the above.

Free cash flow equals cash generated by operating activities less net capital expenditures and other. 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(3), revenue on a constant currency(1) 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

 

  •  

Keep up with Amdocs news by visiting the Company’s website

 

  •  

Subscribe to Amdocs’ RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

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 approximately 29,000 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 $4.89 billion in fiscal 2023.

For more information, visit Amdocs at www.amdocs.com.

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 global or regional events such as the recent attacks in Israel and evolving conflict and the COVID-19 pandemic, 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, 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, 2023 filed on December 13, 2023.

Contact:

Matthew Smith

Head of Investor Relations

Amdocs

314-212-8328

E-mail: dox_info@amdocs.com

AMDOCS LIMITED

Consolidated Statements of Income

(In thousands, except per share data)

 

     Three months ended
December 31,		  
     2023     2022  

Revenue

    $ 1,245,199     $ 1,185,720  

Operating expenses:

     

Cost of revenue

      812,744       756,849  

Research and development

      89,207       95,726  

Selling, general and administrative

      142,504       143,222  

Amortization of purchased intangible assets and other

      16,410       15,313  

Restructuring charges

      —        24,536  
  

 

 

    

 

 

  
     1,060,865       1,035,646  
  

 

 

    

 

 

  

Operating income

      184,334       150,074  

Interest and other expense, net

      (9,778 )      (4,963 ) 
  

 

 

    

 

 

  

Income before income taxes

      174,556       145,111  
  

 

 

    

 

 

  

Income tax expense

      25,834       15,239  
  

 

 

    

 

 

  

Net income

    $ 148,722     $ 129,872  
  

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      757       205  
  

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 147,965     $ 129,667  
  

 

 

    

 

 

  

Basic earnings per share attributable to Amdocs Limited

    $ 1.27     $ 1.07  
  

 

 

    

 

 

  

Diluted earnings per share attributable to Amdocs Limited

    $ 1.26     $ 1.07  
  

 

 

    

 

 

  

Cash dividends declared per ordinary share

    $ 0.435     $ 0.395  
  

 

 

    

 

 

  

Basic weighted average number of shares outstanding

      116,841       120,652  
  

 

 

    

 

 

  

Diluted weighted average number of shares outstanding

      117,536       121,500  
  

 

 

    

 

 

  

AMDOCS LIMITED

Selected Financial Metrics

(In thousands, except per share data)

 

     Three months ended
December 31,		  
     2023      2022  

Revenue

    $ 1,245,199      $ 1,185,720  

Non-GAAP operating income

      225,241        209,538  

Non-GAAP net income

      183,833        176,542  

Non-GAAP net income attributable to Amdocs Limited

      183,076        176,337  

Non-GAAP diluted earnings per share

    $ 1.56      $ 1.45  

Diluted weighted average number of shares outstanding

      117,536        121,500  

Free Cash Flows

(In thousands)

 

     Three months ended
December 31,		  
     2023     2022  

Net Cash Provided by Operating Activities

    $ 182,387     $ 83,226  

Purchases of property and equipment, net (a)

      (43,743 )      (33,703 ) 
  

 

 

    

 

 

  

Free Cash Flow

    $ 138,644     $ 49,523  

 

(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, 2023, and no proceeds for the three months ended December 31, 2022.

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  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

     Three Months Ended December 31, 2022  
     GAAP     Amortization of
purchased
intangible assets
and other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured
at fair
value		     Restructuring
charges		     Tax
effect		     Non-GAAP  

Operating expenses:

               

Cost of revenue

    $ 756,849     $ —      $ (8,655 )    $ (125 )    $ —      $ —      $ 748,069  

Research and development

      95,726         (1,484 )            94,242  

Selling, general and administrative

      143,222         (9,351 )            133,871  

Amortization of purchased intangible assets and other

      15,313       (15,313 )              —   

Restructuring charges

      24,536             (24,536 )        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      1,035,646       (15,313 )      (19,490 )      (125 )      (24,536 )      —        976,182  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      150,074       15,313       19,490       125       24,536       —        209,538  

Interest and other expense, net

      (4,963 )                (4,963 ) 

Income tax expense

      15,239               12,794       28,033  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      129,872       15,313       19,490       125       24,536       (12,794 )      176,542  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      205                 205  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 129,667     $ 15,313     $ 19,490     $ 125     $ 24,536     $ (12,794 )    $ 176,337  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     December 31,
2023		      September 30,
2023		  

ASSETS

      

Current assets:

      

Cash and cash equivalents

    $ 382,885      $ 520,080  

Short-term interest-bearing investments

      218,043        222,451  

Accounts receivable, net, including unbilled of $281,873 and $211,498, respectively

      1,029,294        944,477  

Prepaid expenses and other current assets

      215,914        224,622  
  

 

 

     

 

 

  

Total current assets

      1,846,136        1,911,630  

Property and equipment, net

      776,629        790,923  

Lease assets

      163,181        160,938  

Goodwill and other intangible assets, net

      3,040,592        2,930,580  

Other noncurrent assets

      645,128        631,582  
  

 

 

     

 

 

  

Total assets

    $ 6,471,666      $ 6,425,653  
  

 

 

     

 

 

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities

      

Accounts payable, accruals and other

    $ 1,244,546      $ 1,142,781  

Lease liabilities

      41,361        39,960  

Deferred revenue

      149,826        170,634  
  

 

 

     

 

 

  

Total current liabilities

      1,435,733        1,353,375  

Lease liabilities

      117,155        121,654  

Long-term debt, net of unamortized debt issuance costs

      645,844        645,696  

Other noncurrent liabilities

      670,581        737,996  

Total Amdocs Limited Shareholders’ equity

      3,559,745        3,523,759  

Noncontrolling interests

      42,608        43,173  
  

 

 

     

 

 

  

Total equity

      3,602,353        3,566,932  
  

 

 

     

 

 

  

Total liabilities and equity

    $ 6,471,666      $ 6,425,653  
  

 

 

     

 

 

  

AMDOCS LIMITED

Consolidated Statements of Cash Flows

(In thousands)

 

     Three months ended
December 31,		  
     2023     2022  

Cash Flow from Operating Activities:

     

Net income

    $ 148,722     $ 129,872  

Reconciliation of net income to net cash provided by operating activities:

     

Depreciation, amortization and impairment

      45,861       61,071  

Amortization of debt issuance cost

      149       145  

Equity-based compensation expense

      26,080       19,490  

Deferred income taxes

      (6,683 )      (16,973 ) 

Loss from short-term interest-bearing investments

      548       639  

Net changes in operating assets and liabilities, net of amounts acquired:

     

Accounts receivable, net

      (66,657 )      (197,381 ) 

Prepaid expenses and other current assets

      4,452       16,069  

Other noncurrent assets

      (10,538 )      (848 ) 

Lease assets and liabilities, net

      (5,340 )      (1,251 ) 

Accounts payable, accrued expenses and accrued personnel

      95,787       82,136  

Deferred revenue

      (25,930 )      (6,194 ) 

Income taxes payable, net

      (18,066 )      (11,242 ) 

Other noncurrent liabilities

      (5,998 )      7,693  
  

 

 

    

 

 

  

Net cash provided by operating activities

      182,387       83,226  
  

 

 

    

 

 

  

Cash Flow from Investing Activities:

     

Purchase of property and equipment, net (a)

      (43,743 )      (33,703 ) 

Proceeds from sale of short-term interest-bearing investments

      8,534       3,734  

Net cash paid for business acquisitions

      (77,329 )      —   

Other

      928       (835 ) 
  

 

 

    

 

 

  

Net cash used in investing activities

      (111,610 )      (30,804 ) 
  

 

 

    

 

 

  

Cash Flow from Financing Activities:

     

Repurchase of shares

      (158,525 )      (100,021 ) 

Proceeds from employee stock option exercises

      4,428       14,589  

Payments of dividends

      (51,053 )      (47,735 ) 

Distribution to noncontrolling interests

      (1,322 )      —   

Payment of contingent consideration from a business acquisition

      (1,500 )      (453 ) 
  

 

 

    

 

 

  

Net cash used in financing activities

      (207,972 )      (133,620 ) 
  

 

 

    

 

 

  

Net decrease in cash and cash equivalents

      (137,195 )      (81,198 ) 

Cash and cash equivalents at beginning of period

      520,080       573,377  
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 382,885     $ 492,179  
  

 

 

    

 

 

  

AMDOCS LIMITED

Supplementary Information

(In millions)

 

     Three months ended  
     December 31,      September 30,      June 30,      March 31,      December 31,  
     2023      2023      2023      2023      2022  

North America

    $ 838.1      $ 834.4      $ 830.9      $ 829.0      $ 812.7  

Europe

      181.4        175.5        187.3        171.7        168.7  

Rest of the World

      225.7        232.6        217.8        222.6        204.3  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Revenue

    $ 1,245.2      $ 1,242.6      $ 1,236.0      $ 1,223.3      $ 1,185.7  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     Three months ended  
     December 31,      September 30,      June 30,      March 31,      December 31,  
     2023      2023      2023      2023      2022  

Managed Services Revenue

    $ 722.5      $ 718.1      $ 719.8      $ 718.9      $ 699.8  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     as of  
     December 31,      September 30,      June 30,      March 31,      December 31,  
     2023      2023      2023      2023      2022  

12-Month Backlog

    $ 4,210      $ 4,150      $ 4,140      $ 4,110      $ 4,090  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

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