Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1,130,000,000, an increase of 4% year-over-year in pro forma constant currency, exceeding the midpoint of guidance [5][22] - Non-GAAP earnings per share (EPS) was $1.78, above the guidance range, primarily due to a lower than expected non-GAAP effective tax rate [6][24] - The twelve-month backlog increased by 3.5% year-over-year to $4,170,000,000, indicating strong demand and a healthy pipeline [6][29] Business Line Data and Key Metrics Changes - Revenue from managed services reached a record $747,000,000, up 3.7% from the previous year, accounting for 66% of total revenue [24] - The company reported a non-GAAP operating margin of 21.3%, which improved by 10 basis points sequentially and by 290 basis points year-over-year [23][24] Market Data and Key Metrics Changes - North America showed slight sequential growth and a 1.4% increase year-over-year in pro forma constant currency [22] - Europe rebounded from previous weaknesses, benefiting from new deal activities and contributions from acquisitions [22] - Southeast Asia experienced healthy customer activity, while Latin America showed mixed trends, leading to a sequential decline in the Rest of the World [22] Company Strategy and Development Direction - The company is focused on accelerating the adoption of GenAI in the telecom industry, collaborating with NVIDIA to enhance AI capabilities [16][17] - Amdocs aims to deliver double-digit growth in cloud-related revenue for fiscal 2025, supported by strong sales momentum and strategic partnerships [10][30] - The multi-pillar growth strategy emphasizes innovation in cloud, digital transformation, and network automation to meet customer needs [9][12] Management's Comments on Operating Environment and Future Outlook - Management noted rising global macroeconomic uncertainty but believes Amdocs is well-positioned to navigate the environment due to its unique business model [18][19] - The company reiterated a revenue growth outlook of 2.7% for fiscal 2025, with a tightened range of 1.7% to 3.7% [19][30] - Amdocs expects to achieve double-digit total shareholder returns for the fifth consecutive year, supported by improved profitability and cash conversion [31] Other Important Information - The company repurchased $135,000,000 of its own shares and authorized a new share repurchase plan of $1,000,000,000 [27][28] - Free cash flow for Q2 was $181,000,000, with a target of $710,000,000 to $730,000,000 for fiscal 2025 [28] Q&A Session Summary Question: Focus on AI contributions to revenue growth - Management indicated that GenAI activities are closely linked to data, with positive signs of proof of concepts maturing into real deals [34][36] Question: Customer spending behavior - Management reported no significant changes in customer spending behavior despite rising macroeconomic concerns [46][47] Question: Fluctuations in accounts receivable - Management explained that fluctuations in accounts receivable are normal due to the nature of project milestones and invoicing cycles [48][50] Question: Progress on AI offerings and contracting - Management noted good progress in data-related activities supporting GenAI, with several customers making significant strides [53][54]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1,130,000,000, an increase of 4% year-over-year in pro forma constant currency, exceeding the midpoint of guidance [5][21] - Non-GAAP earnings per share (EPS) was $1.78, above the guidance range, primarily due to a lower than expected non-GAAP effective tax rate [6][24] - The twelve-month backlog increased by 3.5% year-over-year to $4,170,000,000, supported by a strong pipeline [6][29] Business Line Data and Key Metrics Changes - Revenue from managed services reached a record $747,000,000, up 3.7% from a year ago, accounting for 66% of total revenue [24] - The company reported a non-GAAP operating margin of 21.3%, improving by 10 basis points sequentially and by 290 basis points year-over-year [23] Market Data and Key Metrics Changes - North America saw a slight sequential increase and a 1.4% year-over-year increase in pro forma constant currency [22] - Europe rebounded from previous weaknesses, benefiting from new deal activities and contributions from acquisitions [22] Company Strategy and Development Direction - The company is focused on accelerating the telco industry's adoption of GenAI and enhancing cloud services, with expectations of double-digit growth in cloud-related revenue for fiscal 2025 [16][30] - Amdocs is collaborating with Microsoft for cloud migrations and has secured significant projects in various regions, including the Philippines and Japan [7][10] Management's Comments on Operating Environment and Future Outlook - Management noted rising global macroeconomic uncertainty but believes the company is well-positioned due to its unique business model [18] - The company reiterated a revenue growth outlook of 2.7% for fiscal 2025, with a tightened range of 1.7% to 3.7% [19][30] Other Important Information - The company repurchased $135,000,000 of its own shares and authorized a new share repurchase plan of $1,000,000,000 [27][28] - Free cash flow before restructuring payments was $181,000,000, with a target of $710,000,000 to $730,000,000 for fiscal 2025 [28] Q&A Session Summary Question: Focus on AI contributions to revenue growth and collaboration with NVIDIA - Management indicated that GenAI activities are closely linked to data, with ongoing progress in AI-related projects contributing to revenue growth [34][35] Question: Customer spending behavior changes - Management reported no significant changes in customer spending behavior despite rising macroeconomic concerns [45][46] Question: Fluctuations in accounts receivable and unbilled balances - Management explained that fluctuations are normal due to the nature of various projects and milestones, and they do not guide for these balances due to their unpredictability [47][49] Question: Progress on AI offerings and contracting - Management noted good progress in data-related activities supporting GenAI, with several customers making significant strides, although specific names could not be disclosed [52][54]

Financial Data and Key Metrics Changes - The company reported total ARR of $1.704 billion, growing 4.1% year over year, exceeding guidance by $18.6 million [27] - Cloud subscription ARR reached $848 million, representing a 30% year-over-year growth, also above guidance [27][12] - Total revenue was $400 million, an increase of 3.9% year over year, exceeding guidance by approximately $14 million [31] - Non-GAAP operating income grew 11% year over year to $122 million, exceeding guidance [36] Business Line Data and Key Metrics Changes - Cloud subscription ARR now constitutes nearly 50% of total ARR, up from 40% a year ago [28] - Self-managed subscription ARR declined to $422 million, down 16% year over year [29] - Maintenance ARR was $433 million, down 9.5% year over year [29] Market Data and Key Metrics Changes - U.S. revenue grew 6% year over year to approximately $256 million, representing 63% of total revenues [35] - International revenue grew 1% year over year to $148 million, representing 37% of total revenue [35] Company Strategy and Development Direction - The company is in the final phase of its transformation to a cloud-only business model, with a focus on cloud modernization and new customer acquisition [5][10] - The company aims to reach a billion-dollar business in cloud subscription ARR [10] - The partnership with Databricks is expected to enhance enterprise modernization efforts and leverage AI capabilities [16][70] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about customer buying behavior and the health of the cloud pipeline despite a fluid macro environment [7] - The company has not seen a noticeable change in customer buying behavior through April [7] - Management reaffirmed full-year guidance, indicating confidence in achieving targets despite external challenges [40] Other Important Information - The company has implemented operational changes to improve cloud renewals, which have shown positive results [9][68] - The company is recognized as a leader in the 2025 Gartner Magic Quadrant for Augmented Data Quality Solutions [19] Q&A Session Summary Question: Clarification on full-year guidance and FX impact - Management clarified that the revised guidance is not a reflection of deteriorating business trends but a decision not to adjust for FX tailwinds [50][51] Question: Concerns about maintenance and self-managed ARR decline - Management indicated that the decline is expected and consistent with prior guidance, driven by natural churn and modernization efforts [52][54] Question: Cloud renewals performance - Management stated that cloud renewal rates were consistent with expectations and showed sequential improvement [57][58] Question: Net new ARR dynamics - Management explained that Q1 is typically smaller and the results were in line with expectations, with a larger Q2 anticipated [61] Question: Competitive landscape and partnerships - Management noted that the competitive dynamics remain stable, and partnerships, particularly with Databricks, are yielding positive results [70] Question: Impact of new data governance vendor acquisitions - Management downplayed the competitive threat from smaller vendors, emphasizing the fragmented nature of the market [82][84]

Earnings Call Supplemental Slides First Quarter 2025 John Sabino, Chief Executive Officer John Collins, Chief Financial Officer and Chief Operating Officer May 7, 2025 Disclaimer This presentation as well as the associated earnings release and earnings call contain and will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. You can generally identify forward-looking statements by o ...

Financial Performance - In 2024, revenue increased by 14%, and the adjusted operating margin expanded by 310 basis points to 49% [12] - The company returned $4.4 billion to shareholders in 2024 through dividends and share repurchases [13] - In the first quarter of 2025, over $900 million was returned to shareholders through dividends and repurchases [14] Business Lines and Key Metrics - The energy transition and sustainability revenue grew to $359 million in 2024, indicating strong demand in this area [22] - The company is focusing on five key areas for investment: benchmarks, private markets, enterprise data, GenAI, and energy transition [15] Market Data and Key Metrics - The company acknowledges broad market factors such as trade conflicts and supply chain risks that may impact future performance [14] - There is a growing need for trusted benchmarks across debt, equity, and commodity markets due to geopolitical and macroeconomic risks [16] Company Strategy and Industry Competition - The company plans to separate its mobility division into a standalone public company, indicating a strategic shift [14] - The focus on GenAI is expected to enhance productivity and improve customer workflows, positioning the company favorably in a competitive landscape [21] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate multiple scenarios and support clients amid changing market conditions [15] - The CEO emphasized the importance of fostering a culture of empowerment and innovation within the company [23] Other Important Information - The board approved a 5.5% increase in the company's regular dividend, continuing a 52-year history of dividend increases [13] - The company has established an enterprise data organization to better connect its vast datasets for enhanced client value [20] Q&A Session Summary - No shareholder questions were submitted during the Q&A session [53][54]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $77.9 million, up 1% year-over-year, with revenues before reimbursements at $76.2 million, also up 1% [15][22] - Adjusted earnings per share were $0.41, at the high end of quarterly guidance, compared to $0.39 in the prior year [6][22] - GAAP net income for Q1 2025 was $3.1 million or diluted earnings per share of $0.11, down from $8.7 million or $0.32 in the previous year [20][22] - Adjusted gross margin improved to 43.4% from 41.4% year-over-year, driven by higher margin GenAI consulting and implementation revenue [19] Business Line Data and Key Metrics Changes - Global SMBT segment revenues were $43.4 million, with revenues before reimbursements at $42.6 million, a 6% increase year-over-year [15][16] - Oracle Solutions segment revenues were $21.1 million, with revenues before reimbursements down 3% year-over-year [16] - SAP Solutions segment revenues were $13.4 million, with revenues before reimbursements down 8% year-over-year, but expected to improve due to increased software sales [17] Market Data and Key Metrics Changes - Approximately 23% of total revenues before reimbursements were recurring, multi-year, and subscription-based revenues [18] - Days sales outstanding (DSO) increased to 73 days from 66 days in the previous quarter, attributed to extended terms on large client engagements [22] Company Strategy and Development Direction - The company is focusing on GenAI enabled transformations, viewing it as a generational opportunity that will change consulting services delivery [7][26] - The acquisition of Leeway Hertz and the development of the ZBrain platform are strategic moves to enhance GenAI capabilities [28][29] - The company plans to leverage its AI Explorer platform to integrate GenAI capabilities across all offerings, enhancing its competitive position [31][32] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand for digital transformation remains strong, economic uncertainties and tariff negotiations could impact client decision-making [25][48] - The company expects IT budgets to increase, particularly for GenAI initiatives, with a shift from awareness to budgeted projects [25][26] - Management anticipates continued growth in GenAI revenue, with licensing revenues expected to start in July 2025 [51] Other Important Information - The company repurchased 379,000 shares at an average price of $30.93, totaling approximately $11.7 million [23] - A second-quarter dividend of $0.12 per share was declared, payable on July 7, 2025 [23] Q&A Session Summary Question: Can you elaborate on client interactions with AI Explorer and the pipeline for implementation projects? - Management highlighted unique capabilities in ideation and evaluation, leading to favorable client reactions and new engagements [38][39] Question: What is the current capacity for AI implementation and plans for scaling? - Management indicated a 60% to 70% increase in capacity since acquisitions, with ongoing hiring to expand resources [42][43] Question: What is the progress of the joint venture with ZBrain? - Management confirmed the addition of licensed clients to the ZBrain platform and expected to finalize the JV agreement soon [44] Question: How does economic disruption impact the business? - Management acknowledged the potential for clients to pause decisions due to economic concerns but noted strong engagement in GenAI capabilities [48][49] Question: What is the expected impact of GenAI on 2025 results? - Management expects meaningful growth in ARR and licensing revenues, with a focus on channel partnerships to enhance distribution [50][53] Question: What portion of AI revenue was implementation revenue in the quarter? - Management estimated a 50-50 split between implementation and ideation revenue, with expectations for implementation to grow significantly [61] Question: How is the pipeline looking for Oracle? - Management indicated that Oracle's activity is expected to be down, while SAP's momentum is improving [64]

Financial Data and Key Metrics Changes - The company reported total revenue of $77.9 million, up 1% year-over-year, with revenues before reimbursements at $76.2 million, also up 1% [13] - Adjusted earnings per share were $0.41, at the high end of quarterly guidance, compared to $0.39 in the prior year [19] - GAAP net income for the quarter was $3.1 million, or diluted earnings per share of $0.11, down from $8.7 million or $0.32 in the previous year [18] - Adjusted gross margin improved to 43.4% from 41.4% in the prior year, driven by higher margin GenAI consulting and implementation revenue [17] Business Line Data and Key Metrics Changes - The Global SMBT segment revenues were $43.4 million, with revenues before reimbursements at $42.6 million, a 6% increase year-over-year [13] - The Oracle Solutions segment saw revenues of $21.1 million, down 3% year-over-year, primarily due to the wind down of a large engagement [14] - The SAP Solutions segment reported revenues of $13.4 million, down 8% year-over-year, but expected to see strong demand due to increased software sales [15] Market Data and Key Metrics Changes - Approximately 23% of total revenues before reimbursements consist of recurring, multi-year, and subscription-based revenues [16] - Days Sales Outstanding (DSO) increased to 73 days from 66 days in the previous quarter, attributed to extended terms on large client engagements [20] Company Strategy and Development Direction - The company is focusing on GenAI enabled transformations, viewing it as a generational opportunity that will change consulting services delivery [6][24] - The acquisition of Leeway Hertz and the integration of ZBrain are expected to enhance the company's capabilities in GenAI solutions [25][27] - The company plans to leverage its AI Explorer platform to integrate GenAI capabilities across all offerings, enhancing its market position [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand for digital transformation remains strong, economic concerns and tariff negotiations may impact client decision-making [23] - The company expects IT budgets to increase, with a focus on GenAI initiatives in high feasibility areas [24] - Management anticipates continued growth in GenAI revenue, with licensing expected to start in July [49] Other Important Information - The company repurchased 379,000 shares at an average price of $30.93, totaling approximately $11.7 million [21] - A second quarter dividend of $0.12 per share was declared, payable on July 7, 2025 [21] Q&A Session Summary Question: Can you elaborate on client interactions with AI Explorer and the pipeline for implementation projects? - Management highlighted unique capabilities in ideation and evaluation, leading to favorable client reactions and new engagements [35][36] Question: What is the current capacity for AI implementation and plans for scaling further? - Management indicated a 60% to 70% increase in capacity since acquisitions, with ongoing hiring to expand resources [39] Question: Update on the joint venture with ZBrain and any ARR contracts? - Management confirmed the addition of licensed clients to the ZBrain platform and expected to finalize the JV agreement soon [40] Question: How does economic disruption impact the business model? - Management acknowledged the need to address strategic cost reduction and efficiency in light of economic disruptions [44] Question: What is the expected impact of GenAI on 2025 results? - Management expects meaningful growth in GenAI revenue and licensing, with potential for accelerated growth through the JV [47][49] Question: What portion of AI revenue was implementation revenue in the quarter? - Management estimated a 50-50 split between implementation and discovery ideation revenue, with expectations for implementation to grow significantly [59] Question: Are you seeing cross-selling from GenAI consulting clients into other services? - Management confirmed cross-selling opportunities, integrating GenAI solutions into traditional digital transformation engagements [60]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $60.4 million, a 0.5% increase from $60.1 million in Q1 2024 [8] - GAAP gross margin for the quarter was 64.8%, up from 64.4% in Q1 2024 [10] - Net income for the quarter was $4 million or $0.13 per diluted share, compared to $2.1 million or $0.07 per diluted share in Q1 2024 [10] - Non-GAAP operating income for Q1 was $5.4 million or 8.9% of revenues, down from $6.3 million or 10.5% in Q1 2024 [11] Business Line Data and Key Metrics Changes - Services revenues for the quarter were $32.6 million, up 3.4% year-over-year, accounting for 54% of total revenues [9] - The Enterprise UC and CX business accounted for 90% of revenues, with a 7% year-over-year growth in the Microsoft business [17] - The Conversational AI business grew over 10% year-over-year, with a strong pipeline of new wins and bookings [18] Market Data and Key Metrics Changes - Revenues by geographical region were: North America 8%, EMEA 30%, Asia Pacific 14%, and Central and Latin America 4% [9] - The top 15 customers represented 52% of total revenues, with 36% attributed to the nine largest distributors [9] Company Strategy and Development Direction - The company is focusing on two key strategic initiatives: growing the connectivity business and investing in conversational AI initiatives [16] - The goal for the conversational AI sector is to achieve 50% growth for the full year as opportunities mature [17] - The company is transitioning towards AI-powered voice services, with a strong emphasis on integrating advanced GenAI technologies [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while tariffs have introduced uncertainty, they have not observed significant changes in customer buying patterns [21] - The company plans to withdraw previously provided annual guidance until tariff rates are finalized [23] - Management expressed confidence in navigating potential market challenges due to a strong balance sheet and a dominant connectivity franchise [42] Other Important Information - The company acquired 500,000 ordinary shares for approximately $5.2 million and declared a cash dividend of $0.18 per share [12] - The estimated tariff-related cost impact for 2025 is between $3 million to $4 million, with proactive steps taken to move manufacturing out of China [13][22] Q&A Session Summary Question: Tariff impact and proactive steps for manufacturing - Management confirmed plans to move manufacturing out of China to mitigate tariff impacts, expecting a reduced burden of $3 million to $4 million [47][48] Question: Trends in Microsoft ecosystem regarding Operator Connect vs Direct Routing - Management indicated a transition towards Operator Connect as the preferred method for connecting SBCs, with mild growth expected [50] Question: Strategy for Cisco opportunity and managing go-to-market dynamics - Management highlighted their long-standing relationships in the service provider space and ongoing projects, positioning them favorably against smaller competitors [52][53]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $60.4 million, an increase of 0.5% compared to $60.1 million in Q1 2024 [7] - GAAP gross margin for the quarter was 64.8%, up from 64.4% in Q1 2024 [9] - Net income for the quarter was $4 million or $0.13 per diluted share, compared to $2.1 million or $0.07 per diluted share in Q1 2024 [9] - Non-GAAP net income for Q1 2025 was $4.7 million or $0.15 per diluted share, down from $5.2 million or $0.17 per diluted share in Q1 2024 [10] - Cash, cash equivalents, and marketable securities totaled $95.7 million as of March 2025 [10] Business Line Data and Key Metrics Changes - Services revenues for the quarter were $32.6 million, up 3.4% year over year, accounting for 54% of total revenues [8] - The Enterprise UC and CX business accounted for 90% of revenues, with a 7% year-over-year growth in the Microsoft business [16] - The CX connectivity business increased by 2% year over year [17] - The Conversational AI business grew above 10% year over year, with a strong pipeline of new opportunities [17] Market Data and Key Metrics Changes - Revenues by geographical region were split as follows: North America 8%, EMEA 30%, Asia Pacific 14%, and Central and Latin America 4% [8] - The top 15 customers represented 52% of total revenues, with 36% attributed to the nine largest distributors [8] Company Strategy and Development Direction - The company is focused on two key strategic initiatives: growing the connectivity business and investing in conversational AI initiatives [15] - The goal for the conversational AI sector is to achieve 50% growth for the full year as opportunities mature [16] - The company is transitioning towards AI-powered voice services, with a strong emphasis on integrating advanced GenAI technologies [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while gross margin and profitability were lower than planned due to tariffs and increased R&D investments, the company is operating from a position of strength [41] - The company has withdrawn its previously provided annual guidance due to the fluidity of the tariff situation and plans to resume providing an outlook once rates are determined [12][21] - Management expressed confidence in achieving growth and profitability in the coming years, supported by a strong balance sheet and a dominant connectivity franchise [42] Other Important Information - The company acquired 500,000 ordinary shares for approximately $5.2 million and declared a cash dividend of $0.18 per share [11] - The estimated tariff-related cost impact for 2025 is approximately $3 million to $4 million, down from an initial potential impact of $10 million to $12 million [47] Q&A Session Summary Question: Plans regarding tariff impact and manufacturing relocation - The company plans to proactively move manufacturing out of China to mitigate tariff impacts, with steps already taken to shift production to other countries [46] Question: Trends in Microsoft ecosystem regarding Operator Connect vs Direct Routing - The market is transitioning towards Operator Connect, which is expected to become the preferred method for connecting SBCs [48] Question: Strategy for Cisco opportunity and managing go-to-market dynamics - The company has a long-standing presence in the service provider space and is confident in gaining market share due to its established relationships and competitive advantages [50][52]

Financial Data and Key Metrics Changes - In Q1 2025, Fubo's North American streaming business had 1,470,000 paid subscribers, down 2.7% year over year, but exceeding the guidance of 1,460,000 [6][7] - Total revenue in North America was $407.9 million, up 3.5% year over year [7] - Net income from continuing operations was $188 million or $0.55 per diluted share, compared to a net loss of $56.3 million and a loss per share of $0.19 in the prior year [12] - Adjusted EBITDA was negative $1.4 million, a $37 million improvement year over year [12] - Free cash flow improved by $9 million year over year to negative $62 million [13] Business Line Data and Key Metrics Changes - Advertising revenue for the quarter was $22.5 million, down 17% year over year, largely due to the discontinuation of Warner Bros. Discovery and TelevisaUnivision Networks [11] - The company is focused on providing multiple and flexible packaging options, including skinny bundles [9][10] Market Data and Key Metrics Changes - For Q2 2025, North America guidance projects subscribers of 1,225,000 to 1,255,000, reflecting a 14% year over year decline at the midpoint [13] - For the Rest of World segment, Q2 guidance projects subscribers of 325,000 to 335,000, down 17% year over year [14] Company Strategy and Development Direction - The company is committed to achieving profitability in 2025 and is focused on optimizing its aggregated content platform [11][15] - Fubo is working on a combination with Hulu plus Live TV, which is expected to enhance competition and consumer choice in the pay TV space [8][10] - The company aims to launch a new skinny bundle service for the fall sports season, featuring content from both Disney and non-Disney programmers [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the subscriber growth opportunities with the introduction of skinny bundles and the ongoing negotiations for content [21][22] - The company noted that the impact of losing certain content providers would continue into the second quarter but expected the impact on subscriber base to be more modest over time [20] - Management highlighted that profitability remains the focus, even amidst challenges in the media landscape [11][15] Other Important Information - The company has improved its global profitability metrics by more than $100 million for the trailing twelve months [8] - The company is seeing solid interest in its Latino package after lowering its price [19] Q&A Session Summary Question: Update on content discussions with Televisa Univision - Management stated there are no new updates but remains open to discussions under acceptable terms [18] Question: Impact of macroeconomic conditions on subscriber growth and advertising - Management indicated that churn for the English package is slightly better year over year, and reactivations were better than expected in April [27] Question: Concerns about the Rest of World segment and its future - Management emphasized the importance of profitability over growth and is focused on building a unified platform for international expansion [32][34] Question: Explanation for the decline in advertising revenue - Management clarified that the loss of ad-insertable hours from certain networks directly impacted ad revenue, but normalized figures would show slight growth [36] Question: Performance of gamified ads and advertiser interest - Management reported a 30% year-over-year increase in interactive ads and noted strong interest from advertisers despite tightening budgets [40][42]