Amdocs Ltd at JPMorgan Global Technology, Media and Communications Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Yes. Shuky, you touched on it, mostly communications, telecom, but also pay TV. Do you want to just give us a rough split of where those customers come from, what industries and then a lot of times we talk about a breakdown between BSS or OSS, if you want to give a little overview there.

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Just in your introduction, you touched upon guiding for accelerating organic growth. Can you give us a sense for why that is here in 2020 -- or I'm sorry, 2021 versus 2020?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : All right. Just to verify that last point on the B2B opportunity. That's your AT&T, T-Mobile communications customers being able to offer specific B2B services to the likes of Texas? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 24, 2021 / 1:30PM, DOX.OQ - Amdocs Ltd at JPMorgan Global Technology, Media and Communications Conference (Virtual)

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Yes. Got it. I just wanted to clarify that. Now 2 of these are linked, right? The move to the cloud and 5G, we did a -- gosh, a few weeks ago, we hosted Anthony, your Chief Technology Officer, here with an investor event. And he said it really, in order to take advantage of the full capabilities of 5G, a carrier can't -- can't do it on-premise, they have to move to the cloud. Do you mind just sharing why those 2 technologies are so linked and why it's so important for a carrier to be in the cloud first before they actually start their 5G journey?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : If you were to maybe rank order those 4 things that you talked about, drivers of accelerating growth, are 5G and the movement to the cloud clearly ahead of kind of digital transformation B2B, are they the real drivers of this (inaudible)?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : And what about sustainability of the growth rate here? Is this just coming off of a difficult 2020 and we're having a little bit of an easier comparability and so that's kind of driving the growth rate? Or R&D, is this a new kind of sustainable growth rate where it's more like Amdocs can be a mid-single-digit organic grower as we look out the next, I don't know, 3, 5 years?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Yes. So if we can go just a little bit deeper on 5G. How does 5G compare -- strictly from an Amdocs perspective, from a monetization, business type of demand environment, how does it compare to the previous generation, right? We've had many other Gs in the past. And so how does this compare as you look back on your career and you say, "Wow, this is similar. This is different." Better or worse?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Now how does Amdocs actually capture the fact that there is more to be done? Is it -- will your take rate on a per user basis or a per subscriber basis be higher? Will there just be more projects for you to do? Like how does more money actually end up in Amdocs' pocket? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 24, 2021 / 1:30PM, DOX.OQ - Amdocs Ltd at JPMorgan Global Technology, Media and Communications Conference (Virtual)

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Can we talk a little bit about some recent acquisitions because they span both 5G and consultancy in the crowd -- or with the cloud with the most recent M&A. But Openet, TTS, Sourced Group, these are 3 acquisitions that absolutely align to these -- to the kind of next generation, I guess, of growth for Amdocs. So what did each of those bring that Amdocs maybe didn't have before?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Yes. Any, in particular, I don't know, favorite probably isn't the right word, but any cloud vendor that you really feel like that the acquisition plays well with, whether it's AWS or Azure. I mean is there any kind of preference for Amdocs?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Yes, this morning.

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Right. AT&T, so a really nice rebound in AT&T revenue in 2020 versus a year ago. So -- or the couple of years ago, I should say. One of the big areas of growth that, that deal that you signed with them, I think, in the fall of 2019 was, if my memory is correct, how did that expand the relationship? What's kind of the current lay of land with AT&T?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : And just mechanically, do you have the -- is that deal that you signed in 2019? Is that the like the overarching master agreement that you have with AT&T for managed services and other projects? Or do you have basically many different kind of contracts running at -- in parallel next to each other at all times?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Got you. And how about the recent headlines? Time Warner, Discovery? Is there any reason why we should expect any kind of change in behavior from AT&T due to -- again, we always see that the headwinds from '18 and '19 were acquisition-related. This is a little different, but still, should we expect any kind of an impact here?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Okay. Was there any -- is there an existing relationship between Ubiquity and Discovery at the moment or...

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Sure. Sure. All right. Moving on to another kind of marquee U.S. customer, T-Mobile and their acquisition of Sprint. So a number of announcements, I think it was a couple of earnings calls ago, but just a litany of things that -- of wins basically within T-Mobile. So how did things pan out -- once the dust settled with the acquisition, how did things pan out relative to what you are or Amdocs was expecting in terms of the T-Mobile-Sprint acquisition?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : And what does the agreement at -- what all does it cover? Is it prepaid BSS? Is it -- is there a postpaid? Is there a network?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Well, that was going to be my follow-up. I mean in terms of areas of opportunity to continue to penetrate now this much larger customer, where do you think you are? So first, what are they? What are kind of the biggest opportunities that you see within T-Mobile? And then secondly, if you're thinking about the wallet size, right, that they have, where do you think Amdocs is currently in terms of penetration into the potential wallet?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Great. Okay. So we have 5 minutes left, and we actually -- we have a question that came in online. (Operator Instructions) This one says, "Okay, Shuky, now that you're comfortable with the growth outlook, given your balance sheet, do you plan to be any more aggressive in making larger, maybe synergistic acquisitions compared to the more modest tuck-in acquisitions that we've seen here in the last couple of years."

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Okay. So this announcement somehow came in under the radar, but you mentioned a win at Verizon recently. So can we just have a very brief history lesson on Verizon's kind of stance to outsourcing technology? And then what does this agreement cover? And is this a change in your opinion in terms of -- for that customer going forward?

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : But again, this is a customer that traditionally not an outsourcer, right, that they were always looking to build in-house. Do you think that maybe could the pandemic have accelerated their move to be a little bit more open to the...

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Okay. Only a couple of minutes left, but I want to squeeze a couple. One, actually, on the financial side. We don't have tomorrow with us, but that's fine. We're butting -- we're pretty consistently butting up against the high end of that long-term target range for margins, 16.5 to 17.5. Any reason why the company shouldn't be able to continue to expand margin as we look out? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 24, 2021 / 1:30PM, DOX.OQ - Amdocs Ltd at JPMorgan Global Technology, Media and Communications Conference (Virtual)

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Yes. All right. Well...

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Yes. Yes. Okay. Shuky, this was fantastic. Thanks for doing this, this morning.

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : Yes. I mean we've got -- we started the conference off with a bang. Really appreciate it. Thanks, everybody, for taking (inaudible)...

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : We'll see you soon.

Question: Jackson Edmund Ader - JPMorgan Chase & Co, Research Division - Analyst : We'll talk to you. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 24, 2021 / 1:30PM, DOX.OQ - Amdocs Ltd at JPMorgan Global Technology, Media and Communications Conference (Virtual)