Amdocs Limited Reports Third Quarter Fiscal 2024 Financial Results

Amdocs Limited Reports Third Quarter Fiscal 2024 Financial Results

Amdocs Limited (NASDAQ: DOX), a leading provider of software and services to communications and media companies, reported its financial results for the third quarter of fiscal 2024 ended June 30, 2024.

Key Financial Metrics

Amdocs achieved record quarterly revenue of $1.25 billion, marking a 1.1% year-over-year (YoY) increase. The non-GAAP diluted EPS was $1.62, surpassing the consensus estimate of $1.60 and indicating robust financial performance.

Revenue by Segment

Managed services revenue, which accounted for approximately 59% of total revenue, contributed significantly to the overall financial performance. The total revenue was at the midpoint of the provided guidance range, achieving a record level despite foreign currency impacts.

Operational Data

Amdocs recorded free cash flow of $175 million and a twelve-month backlog of $4.25 billion, up 2.7% YoY, indicating strong operational efficiency and future revenue visibility.

Management Commentary

Shuky Sheffer, President and CEO, highlighted the company's solid Q3 results, noting the strong sales momentum in strategic domains such as cloud solutions, digital modernization, 5G, fiber monetization, network automation, and Generative AI. Recent multi-year agreements with major players like AT&T, TELUS, and Vodafone Ziggo underscore customer demand and confidence in Amdocs’ offerings.

Tamar Rapaport-Dagim, CFO & COO, emphasized the company's accelerated profitability gains and the increased pace of share buyback activity in Q3, with $169 million worth of shares repurchased.

Dividends and Share Repurchase

The Board approved a quarterly cash dividend of $0.479 per share, payable on October 25, 2024, to shareholders of record as of September 30, 2024. Additionally, Amdocs repurchased $169 million in ordinary shares during the third quarter.

Forward Guidance

Amdocs reiterated its midpoint expectations for revenue growth in constant currency for fiscal 2024 while tightening the range. The company projects: - Revenue growth of 1.9% to 2.7% YoY as reported. - Non-GAAP diluted EPS growth of 8.5% to 9.5% YoY. - GAAP diluted EPS growth of 7.4% to 9.2% YoY.

Stock Price Movement

Following the earnings release, Amdocs' stock experienced a minor decline of 0.84%.

In summary, Amdocs Limited has demonstrated strong financial and operational performance in the third quarter of fiscal 2024, marked by record revenue, solid earnings, and strategic customer engagements in high-growth areas like cloud and Generative AI. The company remains well-positioned for continued growth and shareholder value creation.