Amdocs(DOX) - 2025 Q1 - Quarterly Report

Revenue Performance - Revenue for Q1 Fiscal 2025 was $1.11 billion, down 10.9% YoY as reported, but up 1.7% YoY in pro forma constant currency[2] - Amdocs reported revenue of $1.11 billion for the three months ended December 31, 2024, a decrease of 10.8% compared to $1.25 billion in the same period of 2023[32] - Total revenue for the three months ended December 31, 2024, was $1,110.1 million, down from $1,263.9 million in the previous quarter, representing a decrease of 12.1%[44] Managed Services - Managed services revenue accounted for approximately 66% of total revenue, totaling $729 million, reflecting a 0.9% increase compared to the previous year[3] - Managed Services Revenue for the same period was $728.9 million, slightly up from $721.4 million in the previous quarter, indicating a growth of 2.1%[44] Earnings and EPS - GAAP diluted EPS was $1.33, exceeding the guidance range of $1.20-$1.29, while non-GAAP diluted EPS was $1.66, at the higher end of the guidance range of $1.61-$1.67[3] - Non-GAAP diluted earnings per share increased to $1.66, up from $1.56 in the prior year, reflecting a growth of 6.4%[34] - Net income attributable to Amdocs Limited was $151.13 million, slightly up from $147.97 million, marking a year-over-year increase of 2.3%[32] - Net income for the three months ended December 31, 2024, was $151.852 million, an increase from $148.722 million in the same period of 2023, reflecting a growth of 1.5%[42] Cash Flow and Dividends - Free cash flow for Q1 was $78 million, with a full-year outlook of $710 million to $730 million, excluding restructuring payments[3] - Free cash flow for the quarter was $78.20 million, down from $138.64 million in the same quarter of 2023, indicating a decline of 43.5%[36] - A quarterly cash dividend of $0.527 per share was approved, with a record date of March 31, 2025[15] - The company declared cash dividends of $0.479 per ordinary share, an increase from $0.435 in the previous year[32] Backlog and Future Outlook - The twelve-month backlog increased to $4.14 billion, up $80 million sequentially and 2.7% YoY on a pro forma basis[2] - The 12-month backlog as of December 31, 2024, was $4,140 million, an increase from $4,060 million in the previous quarter, showing a growth of 2%[44] - The company expects Fiscal 2025 revenue growth of (11.6)% to (8.5)% YoY as reported, and 1% to 4.5% YoY in pro forma constant currency[2] - Amdocs reiterated its target for double-digit total shareholder returns for Fiscal 2025[2] Acquisitions and Strategic Focus - Amdocs completed the acquisition of Profinit for approximately $34 million, with additional performance-based considerations[15] - Amdocs continues to focus on integrating artificial intelligence and Generative AI into its offerings and operations as part of its growth strategy[29] Financial Position - Total assets decreased to $6.29 billion as of December 31, 2024, down from $6.39 billion at the end of September 2024[40] - Current liabilities decreased to $1.38 billion from $1.47 billion, showing a reduction of 6.1%[40] - Amdocs' cash and cash equivalents were reported at $213.83 million, down from $346.09 million, a decline of 38.2%[40] - Cash and cash equivalents at the end of the period were $213.833 million, down from $382.885 million at the end of the same period in 2023, reflecting a decrease of 44.2%[42] Operating Income and Expenses - Operating income for the same period was $198.83 million, representing an increase of 7.5% from $184.33 million year-over-year[32] - Net cash provided by operating activities for the three months ended December 31, 2024, was $105.555 million, a significant decrease from $182.387 million in the same period of 2023, down by 42.2%[42] - Net cash used in investing activities was $(34.729) million, compared to $(111.610) million in the same period of 2023, indicating an improvement of 68.9%[42] - Net cash used in financing activities for the three months ended December 31, 2024, was $(203.078) million, a slight decrease from $(207.972) million in the same period of 2023, down by 2.1%[42] - The company reported a loss from short-term interest-bearing investments of $662 thousand, compared to a loss of $548 thousand in the same period of 2023[42] - The company’s accounts payable and accrued expenses decreased significantly by $50.837 million, compared to an increase of $95.787 million in the same period of 2023[42]