6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2022

Commission File Number 1-14840

 

 

AMDOCS LIMITED

 

 

Hirzel House, Smith Street,

St. Peter Port, Island of Guernsey, GY1 2NG

Amdocs, Inc.

625 Maryville Centre Drive, Suite 200, Saint Louis, Missouri 63141

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

FORM 20-F  ☒            FORM 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

YES  ☐            NO  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-             

On February 1, 2022, Amdocs Limited (“Amdocs”) issued a press release announcing financial results for the quarter ended December 31, 2021. A copy of the press release and the accompanying presentation are furnished as Exhibits 99.1 and 99.2 to this Report of Foreign Private Issuer on Form 6-K.

The information in this Form 6-K (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

AMDOCS LIMITED
By:   /s/ Matthew E. Smith
  Matthew E. Smith
  Secretary and Authorized Signatory

Date: February 1, 2022


EXHIBIT INDEX

 

EXHIBIT
NO.

  

DESCRIPTION

99.1    Amdocs Limited Press Release dated February 1, 2022.
99.2    Fiscal Q1 2022 Earnings Presentation
EX-99.1

Exhibit 99.1

 

LOGO         

 

 

Amdocs Limited Reports First Quarter Fiscal 2022 Results

Record Quarterly Revenue of $1.1 Billion, up 10.6% YoY(2)(3)

Strong Sales Momentum & Record 12-Month Backlog of $3.8 Billion, up 9.7% YoY

Tracking at Higher End of Fiscal 2022 Outlook Range for Expected Revenue and Diluted

Earnings Per Share Growth

Provides Outlook for Annual Revenue Growth of 6.0%-10.0% YoY(2)(3) for Three Years

Fiscal 2022-2024

First Quarter Fiscal 2022 Highlights

(All comparisons are against the prior year)

 

   

Record revenue of $1,105 million, up 10.6% on a pro forma(2) basis in constant currency(3) and up 1.7% as reported, including record revenue of $745 million in North America

 

   

GAAP diluted EPS of $1.07, above the $0.91-$0.99 guidance range, primarily due to a gain of $0.06 per share from final contingent performance-based consideration received in relation to last year’s divesture of OpenMarket

 

   

Non-GAAP diluted EPS of $1.20, at the higher end of the $1.15-$1.21 guidance range

 

   

GAAP operating income of $160 million; GAAP operating margin of 14.5%

 

   

Non-GAAP operating income of $194 million; non-GAAP operating margin of 17.5%, up 20 basis points while accelerating R&D investments

 

   

Free cash flow of $147 million, reflecting healthy cash collections, and comprised of cash flow from operations of $204 million, less $57 million in net capital expenditures and other(1)

 

   

Normalized free cash flow of $186 million(1)

 

(1)

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

(2)

Pro forma growth rate excludes the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021

(3)

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

(4)

Adjusted GAAP excludes the gain from the sale of OpenMarket, which was divested on December 31, 2020, from the current and comparable fiscal years


   

Repurchased $171 million of ordinary shares during the first fiscal quarter, up $31 million sequentially

 

   

Record twelve-month backlog of $3.83 billion, up approximately $140 million sequentially and up 9.7% as compared to last year’s first fiscal quarter

JERSEY CITY, NJ – February 1, 2022 – 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, 2021.

“We have made a great start to fiscal year 2022. Record revenue was up 10.6% on a pro forma(2) constant currency(3) basis from a year ago, driven by our best-ever quarter in North America. Our strategy to deliver market-leading innovation designed to meet the industry’s need for digital modernization, 5G monetization, journey to the cloud and network automation is continuously gaining traction. Strong first quarter sales momentum included notable awards with long-standing customers and several new logos which altogether translated to record twelve-month backlog of $3.83 billion, up 9.7% from a year ago. Additionally, we are pleased to announce the acquisition of DevOpsGroup, a boutique UK-based cloud company which complements the high-end expertise of Amdocs’ Sourced Group by bringing specialist engineering, consultancy and training services for enterprises implementing cloud and DevOps” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

“Amdocs is well-known for exceptional project delivery and we demonstrated this in Q1 with another record number of deployment milestones achieved for our customers. Quarterly invoicing levels and cash collections were healthy, which supported a robust level of free cash flow generation. Demonstrating our confidence in the future success of Amdocs, we also accelerated our buyback activity on a sequential basis in Q1,” said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.


Sheffer concluded, “Encouraged by our strong momentum, we believe revenue growth is tracking at the higher-end of our 6.0% to 10.0% guidance range for the full year fiscal 2022 on a pro forma(2), constant currency(3) basis, while delivering healthy operating profitability and strong cash flow generation. Furthermore, we are also projecting annual revenue growth of 6.0% to 10% constant currency(3) in fiscal years 2023 and 2024. Our confidence in this long-term outlook is founded on our market leading position and the durability of Amdocs’ unique business model. Moreover, we have growing visibility to a large and expanding pipeline of opportunities that we are strategically well positioned to monetize by bringing cutting edge technology and impeccable execution to address our customers’ needs.”

Revenue

(All comparisons are against the prior year period)

 

     In Millions  
     Three months ended  
     December 31, 2021  
     Actual     Previous
Guidance
 

Revenue

   $ 1,105     $ 1,080- $1,120  

Revenue growth, as reported(a)

     1.7  

Pro forma(2) revenue growth, constant currency(3)

     10.6  

 

   

Revenue for the first fiscal quarter of 2022 was above the midpoint of Amdocs’ guidance, despite an unfavorable impact from foreign currency movements of approximately $2 million compared to our guidance assumptions

 

   

Revenue for the first fiscal quarter of 2022 includes an unfavorable impact from foreign currency movements of approximately $4 million relative to the fourth quarter of fiscal 2021


Net Income and Earnings Per Share

 

     In thousands, except per share
data
 
     Three months ended  
     December 31,  
     2021(a)      2020  

GAAP Measures

     

Net income

   $ 133,602      $ 299,632  

Diluted earnings per share

   $ 1.07      $ 2.28  

Non-GAAP Measures

     

Net income

   $ 150,135      $ 152,972  

Diluted earnings per share

   $ 1.20      $ 1.16  

 

   

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, gain from divestiture of OpenMarket and other, net of related tax effects, in all the periods presented

 

   

In the first quarter of 2022 and 2021, the GAAP net income includes a gain from divestiture of OpenMarket, net of related tax effects, at the amount of $0.06 and $1.42 per share, respectively, which is excluded from the Non-GAAP net income

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 Investments & Returning Cash to Shareholders

 

   

M&A Activity: As previously announced, on October 1, 2021, Amdocs completed the acquisition of Roam Digital, a digital consultancy agency in Southeast Asia Pacific, for a net consideration of $28 million in cash; on November 15, 2021, Amdocs completed the acquisition of DevOps Group, a cloud consultancy agency in Europe, for a net consideration of $26 million

 

   

Quarterly Cash Dividend Program: On February 1, 2022, the Board approved the Company’s next quarterly cash dividend payment at the new increased rate of $0.395 per share, as approved at the January 2022 annual general meeting of shareholders and set March 31, 2022 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on April 29, 2022


   

Share Repurchase Activity: Repurchased $171 million of ordinary shares during the first quarter of fiscal 2022

Twelve-month Backlog

Twelve-month backlog was a record $3.83 billion at the end of the first quarter of fiscal 2022, up approximately 9.7% 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 2022 Outlook

 

     In millions, except per share data  
     Q2 2022  

Revenue

     $1,110-$1,150  

GAAP diluted EPS

     $0.96-$1.04  

Non-GAAP diluted EPS

     $1.22-$1.28  

 

   

Second quarter revenue guidance assumes approximately $2 million sequential unfavorable impact from foreign currency fluctuations as compared to the first quarter of fiscal 2022

 

   

Second quarter non-GAAP diluted EPS guidance excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, and approximately $0.11-$0.13 per share of equity-based compensation expense, net of related tax effects


Full Year Fiscal 2022 Outlook

 

     FY 2022, year-over-year growth
     Current Guidance    Previous Guidance

Revenue growth, as reported

   3.4%-7.4%    3.7%-7.7%

Pro forma(2) revenue growth, constant currency(3)

   6.0%-10.0%    6.0%-10.0%

GAAP diluted EPS growth

   (23.0)%-(17.5)%    (23.0)%-(17.5)%

Adjusted GAAP diluted EPS growth(4)

   6.0%-13.0%    6.0%-13.0%

Non-GAAP diluted EPS growth

   6.3%-10.3%    6.3%-10.3%

Pro forma(2) non-GAAP diluted EPS growth

   8.0%-12.0%    8.0%-12.0%
     FY 2022, in millions
     Current Guidance    Previous Guidance

Free cash flow(1)

   ~$500    ~$500

Normalized free cash flow(1)

   ~$650    ~$650

 

   

Full year fiscal 2022 revenue guidance incorporates an expected unfavorable impact from foreign currency fluctuations of approximately 0.6% year-over-year as compared with an unfavorable impact of about 0.3% year-over-year previously

 

   

Non-GAAP diluted earnings per share growth, and pro forma(2) non-GAAP diluted earnings per share growth, excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisitions related liabilities measured at fair value, approximately $0.46-$0.52 per share of equity-based compensation expense, gain from divestiture of OpenMarket and other, net of related tax effects. Adjusted GAAP diluted earnings per share growth, excludes gain from divestiture of OpenMarket, net of related tax effects

 

   

Free cash flow(1) is comprised of cash flow from operations, less net capital expenditures and other

 

   

Normalized free cash flow excludes expected capital expenditure of $131 million related to the new campus development in Israel, and other items

Three Year Fiscal 2022-2024 Outlook

 

   

In addition to our full year fiscal 2022 revenue guidance, we project revenue growth of 6.0% to 10% year-over-year on a constant currency(3) basis in each of fiscal years 2023 and 2024


   

Projecting revenue growth on an as reported basis in each of fiscal years 2023 and 2024 is not possible without unreasonable efforts given the uncertain impact of foreign exchange rates which cannot be reasonably predicted at this time

Our second fiscal quarter 2022 and full year fiscal 2022, 2023 and 2024 forward looking projections 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 the COVID-19 pandemic, including its novel strains, which has created, and continues 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 1, 2022 at 5:00 p.m. Eastern Time to discuss the Company’s first quarter of fiscal 2022 results. To participate, please dial +1 (844) 513-7152, or +1 (508) 637-5600 outside the United States, approximately 15 minutes before the call and enter passcode 1787597. 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 and normalized free cash flow, revenue on a constant currency(3) 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 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;

 

   

non-recurring and unusual charges or benefits (such as a gain from divestiture of OpenMarket);

 

   

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. Normalized free cash flow, a measure of our operating performance, is further adjusted to exclude net capital expenditures related to the new campus development, payments for non-recurring and unusual charges (such as capital gains tax in relation to the divestiture of OpenMarket), and payments of acquisition related liabilities. 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 and normalized free cash flow, 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 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, non-recurring 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 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 $4.3 billion in fiscal 2021.

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 economic conditions, the duration and severity of the COVID-19 pandemic, and its impact on the global economy, 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, 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, 2021 filed on December 9, 2021.


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,  
     2021(a)     2020  

Revenue

   $ 1,104,632     $ 1,086,343  

Operating expenses:

    

Cost of revenue

     716,718       728,716  

Research and development

     81,945       75,669  

Selling, general and administrative

     128,076       121,888  

Amortization of purchased intangible assets and other

     17,747       19,870  
  

 

 

   

 

 

 
     944,486       946,143  
  

 

 

   

 

 

 

Operating income

     160,146       140,200  

Interest and other expense, net

     (2,562     (6,490

Gain from sale of a business

     10,000       226,410  
  

 

 

   

 

 

 

Income before income taxes

     167,584       360,120  

Income taxes

     33,982       60,488  
  

 

 

   

 

 

 

Net income

   $ 133,602     $ 299,632  
  

 

 

   

 

 

 

Basic earnings per share

   $ 1.07     $ 2.29  
  

 

 

   

 

 

 

Diluted earnings per share

   $ 1.07     $ 2.28  
  

 

 

   

 

 

 

Basic weighted average number of shares outstanding

     124,502       131,125  
  

 

 

   

 

 

 

Diluted weighted average number of shares outstanding

     125,304       131,582  
  

 

 

   

 

 

 

Cash dividends declared per share

   $ 0.36     $ 0.3275  
  

 

 

   

 

 

 


AMDOCS LIMITED

Selected Financial Metrics

(In thousands, except per share data)

 

     Three months ended  
     December 31,  
     2021(a)      2020  

Revenue

   $ 1,104,632      $ 1,086,343  

Non-GAAP operating income

     193,607        187,981  

Non-GAAP net income

     150,135        152,972  

Non-GAAP diluted earnings per share

   $ 1.20      $ 1.16  

Diluted weighted average number of shares outstanding

     125,304        131,582  

Free Cash Flows and Normalized Free Cash Flow

(In thousands)

 

     Three months ended  
     December 31,  
     2021     2020  

Net Cash Provided by Operating Activities(a)

   $ 204,118     $ 416,485  

Purchase of property and equipment, net(b)

     (57,225     (50,065
  

 

 

   

 

 

 

Free Cash Flow

     146,893       366,420  

Net capital expenditures related to the new campus development

     29,307       18,334  

Payment of acquisition related liability

     9,479       —    
  

 

 

   

 

 

 

Normalized Free Cash Flow

   $ 185,679     $ 384,754  
  

 

 

   

 

 

 

 

(a)

Since January 1, 2021, OpenMarket results are not included in the Consolidated Statements of Income given its divestiture.

(b)

The amounts under “Purchase of property and equipment, net”, include proceeds from sale of property and equipment of $269 and $53 for the three months ended 31 December 2021 and 2020, respectively.


AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Three months ended December 31, 2021(a)  
           Reconciliation items         
     GAAP     Amortization
of

purchased
intangible
assets and
other
    Equity based
compensation
expense
    Changes in certain
acquisitions related
liabilities measured
at fair value
    Gain from
sale of a
business
    Other     Tax
effect
     Non-GAAP  

Operating expenses:

                 

Cost of revenue

   $ 716,718     $ —       $ (7,147   $ 1,027     $ —       $ —       $ —        $  710,598  

Research and development

     81,945       —         (1,223     —         —         —         —          80,722  

Selling, general and administrative

     128,076       —         (8,371     —         —         —         —          119,705  

Amortization of purchased intangible assets and other

     17,747       (17,747     —         —         —         —         —          —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     944,486       (17,747     (16,741     1,027       —         —         —          911,025  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating income

     160,146       17,747       16,741       (1,027     —         —         —          193,607  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Interest and other expense, net

     (2,562     —         —         —         —         (3,605     —          (6,167
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Gain from sale of a business

     10,000       —         —         —         (10,000     —         —          —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Income taxes

     33,982       —         —         —         —         —         3,323        37,305  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net income

   $ 133,602     $ 17,747     $ 16,741     $ (1,027   $  (10,000)     $  (3,605)     $  (3,323)      $ 150,135  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

     Three months ended December 31, 2020  
           Reconciliation items        
     GAAP     Amortization
of purchased
intangible
assets and
other
    Equity based
compensation
expense
    Changes in
certain
acquisitions
related
liabilities
measured
at fair
value
    Gain from
sale of a
business
    Other      Tax
effect
    Non-GAAP  

Operating expenses:

                 

Cost of revenue

   $ 728,716     $ —       $ (4,941   $ (15,334   $ —       $ —        $ —       $  708,441  

Research and development

     75,669       —         (832     —         —         —          —         74,837  

Selling, general and administrative

     121,888       —         (6,804     —         —         —          —         115,084  

Amortization of purchased intangible assets and other

     19,870       (19,870     —         —         —         —          —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     946,143       (19,870     (12,577     (15,334     —         —          —         898,362  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Operating income

     140,200       19,870       12,577       15,334       —         —          —         187,981  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Interest and other expense, net

     (6,490     —         —         —         —         1,199        —         (5,291
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Gain from sale of a business

     226,410       —         —         —         (226,410     —          —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income taxes

     60,488       —         —         —         —         —          (30,770     29,718  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income

   $ 299,632     $ 19,870     $ 12,577     $ 15,334     $  (226,410)     $  1,199      $ 30,770     $ 152,972  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 


AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     December 31,
2021
     September 30,
2021
 

ASSETS

     

Current assets

     

Cash and cash equivalents

   $ 586,490      $ 709,064  

Short-term interest-bearing investments

     282,347        256,527  

Accounts receivable, net, including unbilled of $146,994 and $162,278, respectively

     953,970        866,819  

Prepaid expenses and other current assets

     255,984        235,089  
  

 

 

    

 

 

 

Total current assets

     2,078,791        2,067,499  

Property and equipment, net

     708,834        698,768  

Lease assets

     228,960        233,162  

Goodwill and other intangible assets, net

     2,925,988        2,881,676  

Other noncurrent assets

     612,904        630,669  
  

 

 

    

 

 

 

Total assets

   $ 6,555,477      $ 6,511,774  
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities

     

Accounts payable, accruals and other

   $ 994,981      $ 1,007,777  

Lease liabilities

     59,333        58,714  

Deferred revenue

     334,687        237,374  
  

 

 

    

 

 

 

Total current liabilities

     1,389,001        1,303,865  

Lease liabilities

     175,093        177,906  

Long-term debt, net of unamortized debt issuance costs

     644,694        644,553  

Other noncurrent liabilities

     769,883        750,266  

Total Amdocs Limited Shareholders’ equity

     3,534,297        3,592,675  

Noncontrolling interests

     42,509        42,509  
  

 

 

    

 

 

 

Total equity

     3,576,806        3,635,184  
  

 

 

    

 

 

 

Total liabilities and equity

   $ 6,555,477      $ 6,511,774  
  

 

 

    

 

 

 


AMDOCS LIMITED

Consolidated Statements of Cash Flows

(In thousands)

 

     Three months ended
December 31,
 
     2021     2020  

Cash Flow from Operating Activities:

    

Net income(a)

   $ 133,602     $ 299,632  

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

    

Depreciation and amortization

     50,876       51,706  

Amortization of debt issuance costs

     141       137  

Equity-based compensation expense

     16,741       12,577  

Gain from sale of a business

     (10,000     (226,410

Deferred income taxes

     4,143       (25,892

Loss (Gain) from short-term interest-bearing investments

     647       (369

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

    

Accounts receivable, net

     (84,458     (140,817

Prepaid expenses and other current assets

     (15,696     911  

Other noncurrent assets

     (11,835     (13,984

Lease assets and liabilities, net

     2,030       11,225  

Accounts payable, accrued expenses and accrued personnel

     (3,053     155,891  

Deferred revenue

     86,049       219,057  

Income taxes payable, net

     16,802       61,318  

Other noncurrent liabilities

     18,129       11,503  
  

 

 

   

 

 

 

Net cash provided by operating activities

     204,118       416,485  
  

 

 

   

 

 

 

Cash Flow from Investing Activities:

    

Purchase of property and equipment, net(b)

     (57,225     (50,065

Proceeds from sale of short-term interest-bearing investments

     5,242       1,291  

Purchase of short-term interest-bearing investments

     (34,275     (176,234

Net cash paid for business and intangible assets acquisitions

     (23,885     (9,897

Net cash received from sale of a business

     —         290,789  

Other

     (548     1,407  
  

 

 

   

 

 

 

Net cash (used in) provided by investing activities

     (110,691     57,291  
  

 

 

   

 

 

 

Cash Flow from Financing Activities:

    

Repurchase of shares

     (170,904     (90,022

Proceeds from employee stock options exercises

     6,012       12,711  

Payments of dividends

     (44,956     (43,084

Payment of contingent consideration from a business acquisition

     (6,153     —    
  

 

 

   

 

 

 

Net cash used in financing activities

     (216,001     (120,395
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (122,574     353,381  

Cash and cash equivalents at beginning of period

     709,064       983,188  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 586,490     $ 1,336,569  
  

 

 

   

 

 

 


AMDOCS LIMITED

Supplementary Information

(In millions)

 

     Three months ended  
     December 31,
2021(a)
     September 30,
2021(a)
     June 30,
2021(a)
     March 31,
2021(a)
     December 31,
2020
 

North America

   $ 745.5      $ 722.8      $ 686.1      $ 679.1      $ 703.4  

Europe

     142.5        146.8        155.7        148.8        171.6  

Rest of the World

     216.6        217.7        224.5        220.8        211.3  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

   $  1,104.6      $  1,087.3      $  1,066.3      $  1,048.7      $  1,086.3  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three months ended  
     December 31,
2021
     September 30,
2021
     June 30,
2021
     March 31,
2021
     December 31,
2020
 

Managed Services Revenue

   $ 659.7      $ 637.5      $ 650.5      $ 634.6      $  623.7  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     As of  
     December 31,
2021(c)
     September 30,
2021(c)
     June 30,
2021(c)
     March 31,
2021(c)
     December 31,
2020(c)
 

12-Month Backlog

   $ 3,830      $ 3,690      $ 3,590      $ 3,540      $ 3,490  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(c)

Excludes OpenMarket, which we divested on December 31, 2020

# # #

EX-99.2

Exhibit 99.2

 

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Fiscal Q1 2022 Earnings Presentation February 1, 2022 Shuky Sheffer President & CEO Tamar Rapaport-Dagim CFO & COO


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The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Amdocs Limited securities or in any securities of its affiliates or subsidiaries. This presentation and the comments made by members of Amdocs management in conjunction with it include 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. 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 economic conditions, the duration and severity of the COVID-19 pandemic, and its impact on the global economy, 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, 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, 2021 filed on December 9, 2021. This presentation includes non-GAAP financial measures, including non-GAAP operating margin, free cash flow, normalized free cash flow, revenue on a constant currency basis, non-GAAP net income and non-GAAP earnings per share. Free cash flow equals cash generated by operating activities less net capital expenditures and other. Normalized free cash flow, a measure of our operating performance, is further adjusted to exclude net capital expenditures related to the new campus development, payments for non-recurring and unusual charges (such as capital gains tax to be paid in relation to the divestiture of OpenMarket), and payments of acquisition related liabilities. 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. Please refer to the appendix for a reconciliation of these metrics to the most comparable GAAP provision. This presentation also includes pro forma metrics which exclude the financial impact of OpenMarket (divested on December 31, 2020) from fiscal year 2021 and comparable fiscal year 2020. Please also review the information contained in Amdocs’ press release dated February 1, 2022 with respect to earnings for fiscal Q1 2022. The press release contains additional information regarding Amdocs’ outlook for fiscal years 2022, 2023 and 2024 and certain non-GAAP metrics and their reconciliations. 2 Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs


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Today’s Speakers Shuky Tamar Sheffer Rapaport-Dagim President & Chief Financial Officer & Chief Executive Officer Chief Operating Officer 3 Information Security Level 0 – Public. © 2022 2022 – Proprietary & Confidential Information of Amdocs


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Earnings call agenda Strategy & Business Performance Update 1 Shuky Sheffer, President & Chief Executive Officer Financial Review & Outlook 2 Tamar Rapaport-Dagim, Chief Financial Officer & Chief Operating Officer 3 Q&A 4 Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs


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President & Chief Executive Officer Strategy and business performance update 5 Information Security Level 0 – Public. © 2022 2022 – Proprietary & Confidential Information of Amdocs


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Strategy and business performance update 1 Q1 FY2022: business and financial achievements 2 Q1 FY2022 progress in strategic domains: executing against our key growth pillars 3 Financial outlook 6 Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs


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Great start to FY2022 Delivering accelerated revenue growth by bringing market-leading innovation designed to meet the industry’s megatrends Strong sales Execution M&A momentum Additional awards with many of Acquired our long-standing global customers Record number DevOpsGroup of customer milestones deliveries Boutique UK–based cloud Unrivalled reputation company of Industry experts delivering highly specialized for project delivery cloud services Won new logos and expanded Focuses on cloud strategy geographically Geographically complements FY2021 Sourced Group acquisition frica Completed previously announced acquisition of Ongoing commitment to R&D, Roam Digital innovation and extending technological leadership Q1 2020 Q1 2021 Q1 2022 Growing projekt202’s geographical presence, expanding its capabilities in APAC Confiden


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Enriching lives, progressing society Our ESG journey Recognized for our diversity & inclusion impact: Peru Mexico Israel Government Human Rights National recognition for Campaign best award Amdocs’s places to work for for diversity in commitment for LGBTQ+ business inclusion For a 3rd year in a row: Included in the Dow Jones Sustainability Index 2019, 2020 & 2021 – North America Promoting employability of diverse populations Hiring & upskilling women in India coming back from career breaks Cloud migration project that supports the expansion of London’s ultra-low emissions zone to improve the city’s air quality Tens of digital inclusion activities worldwide – promoting connectivity, accessibility and employability 8 Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs


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Committed to our people A warm welcome to all those who have recently joined the Amdocs family, and my sincere thanks to all our people for their dedication, resilience and commitment to ensuring a great start to our fiscal year to our 29,000 people worldwide 9 Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs


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Strong performance in Q1-FY2022 Revenue 1,2 12-month backlog 1 Non-GAAP EPS 3 $1,105M, accelerated Record of $3.83B $1.20 growth of 10.6% YoY Driven by North America, Above guidance +9.7% YoY with high activity levels midpoint +$140M QoQ across top customers ($1.15 $1.21) 1. Pro forma. excludes the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021. 2. Constant currency. Assumes exchange rates in the current period were unchanged from the prior period 2. Non-GAAP. See reconciliation tables in appendix 10 Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs


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Progress in Strategic Domains Market-leading innovation to support our customer’s critical business needs, and provide an amazing experience to consumer and enterprise customers CLOUD 5G NETWORK DIGITAL MEDIA AUTOMATION Journey to the cloud: 5G monetization: support Digital modernization: Network automation: Monetize partner accelerate cloud exciting new 5G use cases enhance customer deliver and automate ecosystem and retain adoption experience and transform dynamic, real-time customers’ end-users; support content delivery operations network-based services and monetization 5G charging Cloud BSS & OSS OSS Africa & policy migration uplift modernization solution Network IoT and Amdocs Media optimization 5G eSIM solution bundling services Cloud 5G-ready Tier 1 North OSS Quality American transformation CBRS solutions engineering modernization Turkey customer AMERICA ormation Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs


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Looking ahead: a new era of accelerated growth Providing three-year FY2022-2024 annual revenue growth outlook of 6%-10%(1)(2) A Highly recurring revenue, strong FY2022-2024 (1)(2) business visibility and durable multi 6.0%-10.0% Revenue year customer engagements Annual three-year revenue growth target Growth Outlook (Guidance does not depend on a material level of M&A activity) Early innings of customer’s multi-year investment cycle driven by industry megatrends B Tracking at higher end of guidance FY2022 range for both revenue and EPS: Revenue and Revenue growth 6.0%-10.0% Right strategy to monetize a large and Pro forma, constant currency 1,2 expanding funnel of opportunity EPS Guidance Non-GAAP 3 EPS growth 8.0%-12.0% Pro forma 1 1. Pro forma excludes the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021. 2. Constant currency. Assumes exchange rates in the current period were unchanged from the prior period 3. Pro forma non-GAAP diluted. See reconciliation tables in appendix 12 Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs


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Chief Financial Officer & Chief Operating Officer Financial Update & Outlook 13 Information Security Level 0 – Public. © 2022 2022 – Proprietary & Confidential Information of Amdocs


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Q1 2022 Results Q1 2022 Revenue vs. Guidance $ Millions Q1 Revenue $1,105 million +10.6% YoY (1)(2) Above guidance midpoint $1,105 ($1,080M $1,120M) $1,100 Q1 Non-GAAP(3) Operating Margin Record revenue in Q1 2022 Original Q1F22 Q1F22A 17.5%, +20 bps YoY Guidance (midpoint) Best-ever quarter in North America Consistent with midpoint of annual Non-GAAP operating margin +20 basis target range of 17.2% 17.8% points YoY, including accelerated R&D investments Q1 2022 Revenue by Region Q1 GAAP Diluted EPS $ Millions $1.07 Above guidance high-end Rest of World ($0.91 $0.99) $217 1. Pro forma metrics exclude the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021. North Q1 Non-GAAP(3) Diluted EPS 2. Constant currency. Assumes exchange rates in the current period were Europe America unchanged from the prior period $1.20 $143 $745 3. Non-GAAP. See reconciliation tables in appendix Above guidance midpoint ($1.15 $1.21) 14 Information Security Level 0– Public© 2022 – Proprietary & Confidential Information of Amdocs


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Record Quarterly 12-Month Backlog(1) in Q1F22 12-Month Backlog $ Billions 12-month backlog growth has accelerated year-over-year over the past several quarters $3.83 $3.69 $3.59 +9.7% $3.54 ( (1) record level as of $3.49 YoY December 31, 2021 +9.7% YoY, $140M QoQ Q1F21 Q2F21 Q3F21 (1) Q4F21 Q1F22 Record Managed Services Revenue in Q1F22 $ Millions 57% 60% Leading Indicator $660 million $660 $624 12-month backlog Managed services arrangements may typically covers ~80% include large-scale digital transformation projects, and support business model of forward 12-month resiliency with highly recurring revenue Q1F21 Q1F22 streams, multi-year engagements and high 1. Excludes OpenMarket, revenue renewal rates Revenue which was divested on December 31, 2020 Managed Services as % Total 15 Information Security Level 0– Public© 2022 – Proprietary & Confidential Information of Amdocs


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DSO’s Q1 2022 Free cash flow(2) bridge 79 days $ Millions +1 day YoY and +6 days QoQ DSO’s may fluctuate from quarter to quarter $204 $57 $29 $9 $186 $147 Deferred revenue > unbilled +$100 million Deferred revenue: +$86M QoQ Unbilled receivables: -$14M QoQ Items fluctuate from quarter to quarter in line with normal business activities. Cashflow Net capex Reported Israel Other Normalized from & other FCF campus FCF Operations We remain comfortable with our *Figures may not sum due to rounding balance sheet Liquidity: Cash + Credit Facility Cash, Credit Facility & Debt Position $1.4 billion $ Millions, as of December 31, 2021 Ample liquidity to support ongoing business needs while retaining the capacity to fund future strategic Credit Ample liquidity including available Facility $500 growth investments $500M revolving credit facility Baa2 BBB Cash $869 Moody’s $650 S&P 1. $650M senior note, maturing June 2030 2. Non-GAAP. See reconciliation tables in appendix Remain committed to maintaining our Investment grade credit rating Liquidity Debt $0 (1) 16 Information Security Level 0– Public© 2022 – Proprietary & Confidential Information of Amdocs


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Q1 2022 Cash Returned to Shareholders FY2022E Normalized FCF outlook(1) $ Millions $ Millions Dividends, $45 $131 $19 $650 $500 Share repurchases, $171 As of December 31, roughly $0.8B of share Reported Israel Other Normalized Reiterating normalized free cash repurchase authorization capacity remained FCF campus FCF flow (FCF) outlook of $650M in FY2022, equating to ~100% cash Normalized FCF(1): Three-year historical trend and FY2022E outlook conversion 140% 103% 100% % Normalized FCF(1)/ 88% 100% Non-GAAP Net Income(1) Expect a majority of normalized free 89% 100% 99% cash flow to be returned to % of Normalized FCF FY2022E guidance: shareholders by way of share Returned to Shareholders return repurchases and quarterly cash majority dividend payments in FY2022 $869 Normalized FCF(1) ($M) $613 $527 $650 FY2019 FY2020 FY2021 FY2022E 1. Non-GAAP. See reconciliation tables in appendix (Guidance) 17 Information Security Level 0– Public© 2022 – Proprietary & Confidential Information of Amdocs


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Revenue Growth YoY% Growth Constant Currency(4) FY21 and FY22E revenue is pro forma(1) constant currency(4) 10% Tracking at 7.0% higher end 4.1% of pro forma 2.3% 2.4% 6% guidance Tracking at higher end of pro forma(1) outlooks for revenue (4) (1)(4) (1)(4) FY2018 FY2019 FY2020 FY2021 FY2022E and diluted non-GAAP(2) EPS growth in FY2022E (3) Total Shareholder Return Non-GAAP(2) Diluted EPS Growth YoY % + Dividend Yield Positioned to deliver double FY21 and FY22E non-GAAP EPS growth is presented pro forma(1) digit total shareholder returns for the second year running 11.7% Tracking at 12% higher end 8.6% 7.6% of pro forma 1. Pro forma metrics exclude the financial impact of OpenMarket (which was 9.8% divested on December 31, 2020) from fiscal year 2021. 5.3% guidance 8.0% 6.9% 2. Non-GAAP. See reconciliation tables in appendix 6.1% 3.0% 3. Expected total shareholder return assumes Non-GAAP EPS growth plus dividend yield (based on fiscal year end closing share price); FY2022E 1.5% 1.7% 2.3% 1.9% 2.1% assumed midpoint of pro forma non-GAAP EPS outlook, and dividend yield based on proposed new quarterly rate of $0.395 as of share price on (1) (1) 11/2/21 FY2018 FY2019 FY2020 FY2021 FY2022E 4. Constant currency. Assumes exchange rates in the current period were unchanged from the prior period Non-GAAP Diluted EPS Growth Dividend Yield Total Shareholder Return 18 Information Security Level 0– Public© 2022 – Proprietary & Confidential Information of Amdocs


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Q&A 19


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Let’s make it amazing


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Appendix Reconciliation Tables 21


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Q2 Fiscal 2022E Outlook Revenue $1,110 $1,150 million GAAP EPS $0.96 $1.04 Non-GAAP(2) EPS $1.22 $1.28 Share Count 124 million Effective Tax Rate Above high-end of annual Tracking at higher end of Non-GAAP(2) target range of 13%-17% pro forma(1) outlooks for revenue (3) and diluted non Full Year Fiscal 2022 Outlook GAAP(2) EPS growth in Revenue growth Includes unfavorable foreign currency 3.4% 7.4% FY2022E As reported impact of 0.6% YoY versus 0.3% previously Revenue growth 6.0% 10.0% Pro forma(1), constant currency(3) Non-GAAP(2) EPS growth 6.3% 10.3% As reported 1. Pro forma metrics exclude the financial impact of OpenMarket (which was Non-GAAP(2) EPS growth divested on December 31, 2020) from fiscal year 2021. 8.0% 12.0% Pro forma(1) 2. Non-GAAP. See reconciliation tables in appendix Operating Margin 17.2%-17.8% Non-GAAP(2) 3. Constant currency. Assumes exchange rates in the current period were Effective Tax Rate unchanged from the prior period 13.0%-17.0% Non-GAAP(2) Free cash flow(2) $500 million Normalized free cash flow(2) $650 million 22 Information Security Level 0 – Public © 2022 – Proprietary & Confidential Information of Amdocs


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Q2 Fiscal 2022E Outlook Revenue $1,110 $1,150 million GAAP EPS $0.96 $1.04 Non-GAAP(2) EPS $1.22 $1.28 Share Count 124 million Effective Tax Rate Above high-end of annual Tracking at higher end of Non-GAAP(2) target range of 13%-17% pro forma(1) outlooks for revenue (3) and diluted non Full Year Fiscal 2022 Outlook GAAP(2) EPS growth in Revenue growth Includes unfavorable foreign currency 3.4% 7.4% FY2022E As reported impact of 0.6% YoY versus 0.3% previously Revenue growth 6.0% 10.0% Pro forma(1), constant currency(3) Non-GAAP(2) EPS growth 6.3% 10.3% As reported 1. Pro forma metrics exclude the financial impact of OpenMarket (which was Non-GAAP(2) EPS growth divested on December 31, 2020) from fiscal year 2021. 8.0% 12.0% Pro forma(1) 2. Non-GAAP. See reconciliation tables in appendix Operating Margin 17.2%-17.8% Non-GAAP(2) 3. Constant currency. Assumes exchange rates in the current period were Effective Tax Rate unchanged from the prior period 13.0%-17.0% Non-GAAP(2) Free cash flow(2) $500 million Normalized free cash flow(2) $650 million 22 Information Security Level 0 – Public © 2022 – Proprietary & Confidential Information of Amdocs


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AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (In thousands) Three months ended December 31, 2021(a) Reconciliation items GAAP Amortization Equity based Changes in certain Gain from Other Tax Non-GAAP of compensation acquisitions related sale of a effect purchased expense liabilities measured business intangible at fair value assets and other Operating expenses: Cost of revenue $ 716,718 $ $ (7,147) $ 1,027 $ $ $ $ 710,598 Research and development 81,945 (1,223) 80,722 Selling, general and administrative 128,076 (8,371) 119,705 Amortization of purchased intangible assets and other 17,747 (17,747) Total operating expenses 944,486 (17,747) (16,741) 1,027 911,025 Operating income 160,146 17,747 16,741 (1,027) 193,607 Interest and other expense, net (2,562) (3,605) (6,167) Gain from sale of a business 10,000 (10,000) a) Since January 1, 2021, OpenMarket results are not included in the Consolidated Statements of Income given its divestiture. Income taxes 33,982 3,323 37,305 b) The amounts under “Purchase of property and equipment, net”, include proceeds from sale of property and equipment of $269 and Net income $ 133,602 $ 17,747 $ 16,741 $ (1,027) $ (10,000) $ (3,605) $ (3,323) $ 150,135 $53 for the three months ended 31 December 2021 and 2020, respectively. 24 Information Security Level 0– Public© 2022 – Proprietary & Confidential Information of Amdocs


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AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (In thousands) Three months ended December 31, 2020 Reconciliation items GAAP Amortization Equity based Changes in certain Gain from Other Tax Non-GAAP of compensation acquisitions related sale of a effect purchased expense liabilities measured business intangible at fair value assets and other Operating expenses: Cost of revenue $ 728,716 $ $ (4,941) $ (15,334) $ $ $ $ 708,441 Research and development 75,669 (832) 74,837 Selling, general and administrative 121,888 (6,804) 115,084 Amortization of purchased intangible assets and other 19,870 (19,870) Total operating expenses 946,143 (19,870) (12,577) (15,334) 898,362 Operating income 140,200 19,870 12,577 15,334 187,981 Interest and other expense, net (6,490) 1,199 (5,291) a) Since January 1, 2021, OpenMarket results are not included in the Gain from sale of a Consolidated Statements of Income given its divestiture. business 226,410 (226,410) b) The amounts under “Purchase of property and equipment, net”, include proceeds from sale of property and equipment of $269 and Income taxes 60,488 (30,770) 29,718 $53 for the three months ended 31 December 2021 and 2020, respectively. Net income $ 299,632 $ 19,870 $ 12,577 $ 15,334 $ (226,410) $ 1,199 $ 30,770 $ 152,972 25 Information Security Level 0– Public© 2022 – Proprietary & Confidential Information of Amdocs