EX-99.1 2 d855028dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

 

Amdocs Limited Reports Third Quarter Fiscal 2024 Results

Record Quarterly Revenue of $1.25 Billion, up 1.1% YoY as Reported and 1.8% YoY in

Constant Currency(1)

Record 12-Month Backlog of $4.25 Billion, up 2.7% YoY

Updates Fiscal 2024 Outlook:

Expects Revenue Growth of 1.9%-2.7% YoY as Reported

Reiterates Midpoint of Revenue Growth Outlook in Constant Currency(1) while Tightening

Expected Range to 2.3%-3.1% YoY

On-track to Achieve Accelerated Profitability Targets in Fiscal 2024

Expects GAAP Diluted EPS Growth of 7.4%–9.2% YoY

Reiterates Midpoint of Non-GAAP Diluted EPS Growth Outlook while Tightening Expected

Range to 8.5%-9.5% YoY

Third Quarter Fiscal 2024 Highlights

(All comparisons are against the prior year)

 

  •  

Record revenue of $1,250 million, up 1.1% as reported and up 1.8% in constant currency(1); revenue was at the midpoint of the $1,235-$1,275 million guidance range, adjusting for a negative impact from foreign currency movements of approximately $5 million compared to our guidance assumptions

 

  •  

Record managed services revenue of $741 million, equivalent to approximately 59% of total revenue

 

  •  

GAAP diluted EPS of $1.21, including a restructuring charge of 11 cents per share, without which GAAP diluted EPS would have been at the high end of the guidance range of $1.24-$1.32

 

  •  

Non-GAAP diluted EPS of $1.62, at the higher end of the guidance range of $1.57-$1.63

 

(1)

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

(2)

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

(3)

Expected total shareholder return assumes Non-GAAP EPS growth plus dividend yield

  •  

GAAP operating income of $176 million; GAAP operating margin of 14.1%, up 160 basis points sequentially and down 70 basis points as compared to last year’s third fiscal quarter

 

  •  

Non-GAAP operating income of $232 million; non-GAAP operating margin of 18.6%, up 80 basis points as compared to last year’s third fiscal quarter and up 20 basis points sequentially, reflecting a continued focus on operational excellence

 

  •  

Free cash flow of $175 million, comprised of cash flow from operations of $191 million, less $16 million in net capital expenditures and other(2), including approximately $18 million of restructuring payments

 

  •  

Repurchased $169 million of ordinary shares during the third fiscal quarter

 

  •  

Record twelve-month backlog of $4.25 billion, up approximately 2.7% as compared to last year’s third fiscal quarter and up approximately $20 million sequentially

JERSEY CITY, NJ – August 7, 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 June 30, 2024.

“We delivered solid Q3 results, highlighted by accelerated profitability gains and record revenue, in line with the midpoint of our guidance after currency adjustments. Sales momentum was healthy as we focused on delivering value in our strategic domains of cloud, digital modernization, 5G and fiber monetization, network automation and Generative AI. Notably, customer demand for Amdocs’ cloud solutions remains especially strong, highlighted by the significant 5-year cloud deal we previously announced with AT&T, as well as newly signed agreements to support the cloud migration journeys of TELUS in Canada and Vodafone Ziggo in Netherlands. I am also happy to announce that a leading global operator has chosen to integrate Amdocs’ Gen AI, telco-specific amAIz platform in its business operations. I believe this important award in partnership with NVIDIA demonstrates our commitment to innovation and the unique role Amdocs can play as one of the leading Gen AI technology enablers in the telecommunications industry today,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

“The ongoing implementation of automation, AI and Gen AI, and other sophisticated tools continues to drive cost and efficiency benefits across our business, the cumulative effects of which translated to accelerated profitability gains in Q3. Our managed services offering is resonating in the market, highlighted by record quarterly revenue in Q3 and significant multi-year agreements to support the cloud migration journeys of AT&T, Telus and Vodafone Ziggo. Demonstrating our confidence in Amdocs’ unique business model, and the future success of the company, we also increased our pace of buyback activity in Q3, repurchasing approximately $169 million of Amdocs shares,” said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.

Sheffer concluded, “We continue to see a healthy pipeline of opportunities within our strategic growth domains, and our market win rate remains high as we leverage our pedigree for innovation and technology, market-leading portfolio, best-in-class execution and highly talented people. Nonetheless, we continue to operate in a challenging industry demand environment which is yet to improve. We are reiterating the midpoint of our constant currency(1) revenue growth expectations in fiscal 2024, which includes another year of double-digit growth in cloud. Moreover, our profitability gains are on-track with our targets, and we are positioned to deliver double-digit expected total shareholder returns(3) for the fourth year running.”

In Remembrance

Amdocs announces with great sadness that Mr. Richard T.C. LeFave, a member of our Board of Directors, passed away on July 27, 2024. Mr. LeFave served as a director of Amdocs since 2011 and was the Chairman of the Technology and Innovation Committee and a member of several board committees. Mr. LeFave made invaluable contributions to the success of Amdocs through his mentorship and guidance throughout the years. The Board of Directors and our employees extend their deepest condolences to Mr. LeFave’s family, friends, and colleagues.

Revenue

(All comparisons are against the prior year period)

 

     In millions
     Three months ended
     June 30, 2024
     Actual   Guidance

Revenue

    $1,250   $1,235 - $1,275 

Revenue Growth, as reported

    1.1%  

Revenue Growth, constant currency (1)

    1.8%  

 

  •  

Revenue for the third fiscal quarter of 2024 was at the midpoint of Amdocs’ guidance, adjusting for an unfavorable impact from foreign currency movements of approximately $5 million relative to our guidance assumptions

 

  •  

Revenue for the third fiscal quarter includes an unfavorable impact from foreign currency movements of approximately $4 million relative to the second quarter of fiscal 2024

Net Income and Earnings Per Share

 

     In thousands, except per share data  
     Three months ended  
     June 30,  
     2024      2023  

GAAP Measures

      

Net Income

    $ 140,998      $ 160,115  

Net Income attributable to Amdocs Limited

    $ 140,289      $ 159,428  

Diluted earnings per share

    $ 1.21      $ 1.32  

Non-GAAP Measures

      

Non-GAAP Net Income

    $ 187,807      $ 189,605  

Non-GAAP Net Income attributable to Amdocs Limited

    $ 187,098      $ 188,918  

Non-GAAP Diluted earnings per share

    $ 1.62      $ 1.57  

 

  •  

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 June 30, 2024, 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

 

  •  

Quarterly Cash Dividend Program: On August 7, 2024, the Board approved the Company’s next quarterly cash dividend payment of $0.479 per share, and set September 30, 2024 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on October 25, 2024

 

  •  

Share Repurchase Activity: Repurchased $169 million of ordinary shares during the third quarter of fiscal 2024

Twelve-month Backlog

Twelve-month backlog was a record $4.25 billion at the end of the third quarter of fiscal 2024, up approximately 2.7% as compared to last year’s third 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.

Fourth Quarter Fiscal 2024 Outlook

 

     In millions, except per
share data
     Q4 - 2024

Revenue

    $1,240-$1,280

GAAP Diluted earnings per share

    $1.34-$1.42

Non-GAAP Diluted earnings per share

    $1.67-$1.73

 

  •  

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

 

  •  

Fourth quarter non-GAAP diluted EPS guidance excludes equity-based compensation expense of approximately $0.18-$0.20 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.11 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 expected restructuring charges

Full Year Fiscal 2024 Outlook

 

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

Revenue Growth, as reported

    1.9%-2.7%   1.6%-3.6%

Revenue Growth, constant currency (1)

    2.3%-3.1%   1.7%-3.7%

GAAP Diluted earnings per share

    7.4%-9.2%   7.0%-13.0%

Non-GAAP Diluted earnings per share

    8.5%-9.5%   7.0%-11.0%

 

     FY 2024, in millions  
     Current guidance      Previous guidance  

Free Cash Flow (2)

    $ 700      $ 700  

 

  •  

Full year fiscal 2024 revenue guidance incorporates an expected unfavorable impact from foreign currency fluctuations of approximately 0.4% year-over-year, as compared with an unfavorable impact of about 0.1% year-over-year previously

 

  •  

Non-GAAP diluted earnings per share growth excludes equity-based compensation expense of approximately $0.72-$0.74 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.46 per share, restructuring charges of $0.35, 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 expected restructuring charges

 

  •  

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, 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 13% to 17% for the full year fiscal 2024

 

  •  

Free cash flow(2) 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 fourth 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, 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 August 7, 2024 at 5:00 p.m. Eastern Time to discuss the Company’s third 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(2), 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 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 and our Form 6-K furnished for the first quarter of fiscal 2024 on February 20, 2024 and for the second quarter of fiscal 2024 filed on May 20, 2024.

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
June 30,		     Nine months ended
June 30,		  
     2024     2023     2024     2023  

Revenue

    $ 1,250,059     $ 1,235,962     $ 3,741,107     $ 3,644,986  

Operating expenses:

         

Cost of revenue

      809,970       804,007       2,424,710       2,356,341  

Research and development

      90,368       92,162       270,729       277,162  

Selling, general and administrative

      144,027       143,777       434,140       430,327  

Amortization of purchased intangible assets and other

      15,111       13,302       47,719       41,555  

Restructuring charges

      14,715       —        47,875       24,536  
  

 

 

    

 

 

    

 

 

    

 

 

  
     1,074,191       1,053,248       3,225,173       3,129,921  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      175,868       182,714       515,934       515,065  

Interest and other expense, net

      (6,872 )      (4,421 )      (28,300 )      (12,322 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      168,996       178,293       487,634       502,743  

Income tax expense

      27,998       18,178       78,489       62,447  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 140,998     $ 160,115     $ 409,145     $ 440,296  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      709       687       2,389       1,598  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 140,289     $ 159,428     $ 406,756     $ 438,698  
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnings per share attributable to Amdocs Limited

    $ 1.22     $ 1.33     $ 3.50     $ 3.65  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings per share attributable to Amdocs Limited

    $ 1.21     $ 1.32     $ 3.48     $ 3.62  
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash dividends declared per ordinary share

    $ 0.479     $ 0.435     $ 1.393     $ 1.265  
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic weighted average number of shares outstanding

      114,973       119,520       116,075       120,230  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted weighted average number of shares outstanding

      115,548       120,351       116,738       121,070  
  

 

 

    

 

 

    

 

 

    

 

 

  

AMDOCS LIMITED

Selected Financial Metrics

(In thousands, except per share data)

 

     Three months ended
June 30,		      Nine months ended
June 30,		  
     2024      2023      2024      2023  

Revenue

    $ 1,250,059      $ 1,235,962      $ 3,741,107      $ 3,644,986  

Non-GAAP operating income

      232,390        220,222        687,065        647,497  

Non-GAAP net income

      187,807        189,605        555,260        545,445  

Non-GAAP net income attributable to Amdocs Limited

      187,098        188,918        552,871        543,847  

Non-GAAP diluted earnings per share

    $ 1.62      $ 1.57      $ 4.74      $ 4.49  

Diluted weighted average number of shares outstanding

      115,548        120,351        116,738        121,070  

Free Cash Flows

(In thousands)

 

     Three months ended
June 30,		     Nine months ended
June 30,		  
     2024     2023     2024     2023  

Net Cash Provided by Operating Activities

    $ 191,462     $ 172,557     $ 506,506     $ 550,259  

Purchases of property and equipment, net (a)

      (16,337 )      (28,983 )      (79,683 )      (97,805 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Free Cash Flow

    $ 175,125     $ 143,574     $ 426,823     $ 452,454  

 

 

(a)

The amounts under “Purchase of property and equipment, net”, include immaterial proceeds from sale of property and equipment for the nine months ended June 30, 2024 and 2023, respectively.

AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Three Months Ended June 30, 2024  
     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

    $ 809,970     $ —      $ (13,351 )    $ (584 )    $ —      $ —      $ 796,035  

Research and development

      90,368         (2,166 )            88,202  

Selling, general and administrative

      144,027         (10,595 )            133,432  

Amortization of purchased intangible assets and other

      15,111       (15,111 )              —   

Restructuring charges

      14,715             (14,715 )        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      1,074,191       (15,111 )      (26,112 )      (584 )      (14,715 )      —        1,017,669  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      175,868       15,111       26,112       584       14,715       —        232,390  

Interest and other expense, net

      (6,872 )                (6,872 ) 

Income taxes

      27,998               9,713       37,711  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      140,998       15,111       26,112       584       14,715       (9,713 )      187,807  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      709                 709  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 140,289     $ 15,111     $ 26,112     $ 584     $ 14,715     $ (9,713 )    $ 187,098  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     Three Months Ended June 30, 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

    $ 804,007     $ —      $ (11,852 )    $ (152 )    $ —       $ —      $ 792,003  

Research and development

      92,162         (2,037 )             90,125  

Selling, general and administrative

      143,777         (10,165 )             133,612  

Amortization of purchased intangible assets and other

      13,302       (13,302 )               —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total operating expenses

      1,053,248       (13,302 )      (24,054 )      (152 )         —        1,015,740  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Operating income

      182,714       13,302       24,054       152          —        220,222  

Interest and other expense, net

      (4,421 )            508          (3,913 ) 

Income tax expense

      18,178                8,526       26,704  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      160,115       13,302       24,054       152       508        (8,526 )      189,605  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      687                  687  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 159,428     $ 13,302     $ 24,054     $ 152     $ 508      $ (8,526 )    $ 188,918  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Nine Months Ended June 30, 2024  
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured at
fair value		     Restructuring
charges		     Other      Tax
effect		     Non-
GAAP		  

Operating expenses:

                  

Cost of revenue

    $ 2,424,710     $ —      $ (40,126 )    $ 3,000     $ —      $ —       $ —      $ 2,387,584  

Research and development

      270,729         (6,289 )               264,440  

Selling, general and administrative

      434,140         (32,122 )               402,018  

Amortization of purchased intangible assets and other

      47,719       (47,719 )                 —   

Restructuring charges

      47,875             (47,875 )           —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total operating expenses

      3,225,173       (47,719 )      (78,537 )      3,000       (47,875 )         —        3,054,042  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Operating income

      515,934       47,719       78,537       (3,000 )      47,875          —        687,065  

Interest and other expense, net

      (28,300 )              5,538          (22,762 ) 

Income tax expense

      78,489                  30,554       109,043  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      409,145       47,719       78,537       (3,000 )      47,875       5,538        (30,554 )      555,260  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      2,389                    2,389  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 406,756     $ 47,719     $ 78,537     $ (3,000 )    $ 47,875     $ 5,538      $ (30,554 )    $ 552,871  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

     Nine Months Ended June 30, 2023  
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured at
fair value		     Restructuring
charges		     Other      Tax
effect		     Non-
GAAP		  

Operating expenses:

                  

Cost of revenue

    $ 2,356,341     $ —      $ (30,568 )    $ (1,436 )    $ —      $ —       $ —      $ 2,324,337  

Research and development

      277,162         (5,224 )               271,938  

Selling, general and administrative

      430,327         (29,113 )               401,214  

Amortization of purchased intangible assets and other

      41,555       (41,555 )                 —   

Restructuring charges

      24,536             (24,536 )           —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total operating expenses

      3,129,921       (41,555 )      (64,905 )      (1,436 )      (24,536 )         —        2,997,489  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Operating income

      515,065       41,555       64,905       1,436       24,536          —        647,497  

Interest and other expense, net

      (12,322 )              508          (11,814 ) 

Income tax expense

      62,447                  27,791       90,238  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      440,296       41,555       64,905       1,436       24,536       508        (27,791 )      545,445  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      1,598                    1,598  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 438,698     $ 41,555     $ 64,905     $ 1,436     $ 24,536     $ 508      $ (27,791 )    $ 543,847  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     June 30,
2024		      September 30,
2023		  

ASSETS

      

Current assets:

      

Cash and cash equivalents

    $ 317,989      $ 520,080  

Short-term interest-bearing investments

      184,182        222,451  

Accounts receivable, net

      1,018,801        944,477  

Prepaid expenses and other current assets

      242,797        224,622  
  

 

 

     

 

 

  

Total current assets

      1,763,769        1,911,630  

Property and equipment, net

      758,435        790,923  

Lease assets

      162,573        160,938  

Goodwill and other intangible assets, net

      3,019,770        2,930,580  

Other noncurrent assets

      691,695        631,582  
  

 

 

     

 

 

  

Total assets

    $ 6,396,242      $ 6,425,653  
  

 

 

     

 

 

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities

      

Accounts payable, accruals and other

    $ 1,248,961      $ 1,142,781  

Lease liabilities

      40,077        39,960  

Deferred revenue

      133,236        170,634  
  

 

 

     

 

 

  

Total current liabilities

      1,422,274        1,353,375  

Lease liabilities

      112,732        121,654  

Long-term debt, net of unamortized debt issuance costs

      646,140        645,696  

Other noncurrent liabilities

      668,276        737,996  

Total Amdocs Limited Shareholders’ equity

      3,504,462        3,523,759  

Noncontrolling interests

      42,358        43,173  
  

 

 

     

 

 

  

Total equity

      3,546,820        3,566,932  
  

 

 

     

 

 

  

Total liabilities and equity

    $ 6,396,242      $ 6,425,653  
  

 

 

     

 

 

  

AMDOCS LIMITED

Consolidated Statements of Cash Flows

(In thousands)

 

     Nine months ended
June 30,		  
     2024     2023  

Cash Flow from Operating Activities:

     

Net income

    $ 409,145     $ 440,296  

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

     

Depreciation, amortization and impairment

      143,738       148,412  

Amortization of debt issuance cost

      445       432  

Equity-based compensation expense

      78,537       64,905  

Deferred income taxes

      (12,347 )      (45,906 ) 

Loss from short-term interest-bearing investments

      5,212       2,185  

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

     

Accounts receivable, net

      (88,805 )      (128,371 ) 

Prepaid expenses and other current assets

      (9,276 )      (34,353 ) 

Other noncurrent assets

      (21,207 )      3,410  

Lease assets and liabilities, net

      (10,440 )      (2,937 ) 

Accounts payable, accrued expenses and accrued personnel

      125,063       108,922  

Deferred revenue

      (41,927 )      1,207  

Income taxes payable, net

      (62,328 )      (42,744 ) 

Other noncurrent liabilities

      (9,304 )      34,801  
  

 

 

    

 

 

  

Net cash provided by operating activities

    $ 506,506     $ 550,259  
  

 

 

    

 

 

  

Cash Flow from Investing Activities:

     

Purchase of property and equipment, net (a)

      (79,683 )      (97,805 ) 

Proceeds from sale of short-term interest-bearing investments

      49,516       15,553  

Purchase of short-term interest-bearing investments

      (9,061 )      —   

Net cash paid for business acquisitions

      (86,824 )      (84,425 ) 

Other

      4,182       (2,438 ) 
  

 

 

    

 

 

  

Net cash used in investing activities

    $ (121,870 )    $ (169,115 ) 
  

 

 

    

 

 

  

Cash Flow from Financing Activities:

     

Repurchase of shares

      (443,316 )      (334,499 ) 

Proceeds from employee stock option exercises

      19,120       45,976  

Payments of dividends

      (157,264 )      (147,679 ) 

Distribution to noncontrolling interests

      (3,204 )      (209 ) 

Payment of contingent consideration from a business acquisition

      (2,063 )      (453 ) 
  

 

 

    

 

 

  

Net cash used in financing activities

    $ (586,727 )    $ (436,864 ) 
  

 

 

    

 

 

  

Net decrease in cash and cash equivalents

      (202,091 )      (55,720 ) 

Cash and cash equivalents at beginning of period

      520,080       573,377  
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 317,989     $ 517,657  
  

 

 

    

 

 

  

AMDOCS LIMITED

Supplementary Information

(In millions)

 

     Three months ended  
     June 30,      March 31,      December 31,      September 30,      June 30,  
     2024      2024      2023      2023      2023  

North America

    $ 828.8      $ 823.2      $ 838.1      $ 834.4      $ 830.9  

Europe

      175.9        184.8        181.4        175.5        187.3  

Rest of the World

      245.3        237.8        225.7        232.6        217.8  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Revenue

    $ 1,250.1      $ 1,245.8      $ 1,245.2      $ 1,242.6      $ 1,236.0  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     Three months ended  
     June 30,      March 31,      December 31,      September 30,      June 30,  
     2024      2024      2023      2023      2023  

Managed Services Revenue

    $ 740.8      $ 720.3      $ 722.5      $ 718.1      $ 719.8  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     as of  
     June 30,      March 31,      December 31,      September 30,      June 30,  
     2024      2024      2023      2023      2023  

12-Month Backlog

    $ 4,250      $ 4,230      $ 4,210      $ 4,150      $ 4,140  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

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