EX-99.2 3 d300756dex992.htm EX-99.2

Exhibit 99.2

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Q&A 19

Let’s make it amazing

Appendix Reconciliation Tables 21

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

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

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

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