Amdocs(US:DOX)2022-02-02 04:36Financial Data and Key Metrics Changes - The company reported record revenue of $1.1 billion for Q1 2022, representing a 10.6% increase on a pro forma constant currency basis [12][22] - Non-GAAP earnings per share (EPS) was $1.20, at the higher end of the guidance range [13][23] - The 12-month backlog reached a record $3.83 billion, up 9.7% year-over-year and $140 million sequentially [12][24] Business Line Data and Key Metrics Changes - Managed services revenue grew approximately 6% year-over-year, accounting for about 60% of total revenue [24] - The company achieved a record number of deployment milestones in Q1, indicating strong sales momentum across various business lines [8] Market Data and Key Metrics Changes - North America experienced the best-ever quarter, driving significant revenue growth [12] - The company expanded its footprint in Europe and Africa, securing new customers such as PPF Group and Vodacom [8][15] Company Strategy and Development Direction - The company focuses on digital modernization, 5G monetization, and cloud services as key growth areas [8][18] - A strategic acquisition of DevOps Group was announced to enhance cloud capabilities and professional services [9] - The company aims for continuous revenue growth in fiscal years 2023 and 2024, projecting annual growth of 6% to 10% [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on mega trends like 5G and cloud investments [35][36] - The backlog and sales momentum indicate a strong pipeline of opportunities, supporting the growth outlook [45][46] Other Important Information - The company was recognized for its commitment to sustainability and diversity, being included in the S&P Dow Jones Sustainability Index for North America [11] - A strong cash balance of approximately $869 million was reported, with a commitment to maintaining an investment-grade credit rating [25] Q&A Session Summary Question: What drives the company's growth? - Management highlighted alignment between products and market needs, with strong sales momentum across all regions and a growing funnel of opportunities [35][36] Question: Is the business impacted by supply constraints in the hardware market? - Management confirmed that the company operates in the cloud and has not faced headwinds related to supply chain issues [38] Question: What accounts for the difference in reported revenue growth versus constant currency growth? - The primary reason was the divestiture of open markets, which impacted year-over-year comparisons [40] Question: How is the backlog trending? - Management indicated that fluctuations in backlog are normal, with strong visibility from recent awards driving confidence [45] Question: What is the company's position regarding 5G use cases? - The company is involved in various fixed wireless initiatives and supports customers in monetizing their 5G investments [47] Question: How has the Verizon account progressed? - Management reported positive progress with Verizon, indicating that it is included in the three-year revenue guidance [58] Question: What is the outlook for operating margins? - Management sees the current margin range as applicable but emphasizes the need for flexibility based on investment decisions [59][60]