Amdocs Ltd at Morgan Stanley Technology, Media & Telecom Conference Summary

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

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : <_ALACRA_META_ABSTRACT>For investors that might be a little less familiar with the Amdocs story, can you just kind of describe the company and your competitive positioning in the market?

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Great. So I mean, how does that business or your growth drivers change with AI? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 05, 2025 / 9:50PM, DOX.OQ - Amdocs Ltd at Morgan Stanley Technology, Media & Telecom Conference

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Okay. Sticking at a higher level, you've noted roughly doubling your TAM from $30 billion to $60 billion as you expanded kind of domains and products. Just how were you so successful in kind of expanding that portfolio and how did you adapt kind of the product and software stack for that larger opportunity?

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : When you think about a new TAM, is it often one customer has asked you to do something in this market and then you go offer it to other customers or how do you kind of figure out what new markets kind of makes sense for you.

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Got it. Okay, maybe double clicking into your AI stack or just Gen AI capabilities, what is the kind of specific opportunity in this domain and maybe what are some of the examples of customers that you've started to acquire in this area?

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : I mean, maybe that's kind of one of the concerns that investors have sometimes it's just you're using Gen-AI to reduce costs both for your customers and for yourself and kind of providing those services and so, is it -- there's a question of, is it, one, they're more likely to kind of this is finally the trigger to use you guys more for services. But two, how do you get the margin upside from that versus having to pass it on to customers.

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Yeah. Okay, that's a helpful answer. Maybe back to kind of how you can help your customers with kind of monetization of their own businesses, just where do you see service provider customers on their journey to kind of monetize either 5G or fixed wireless access or fiber? Just what has been kind of the gating items and how does Amdocs kind of accelerate that monetization?

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Okay. I mean, maybe just more specifically on 5G, just how do you view the investment cycle and where they are on either kind of continuing to invest or going developing some of these monetization efforts.

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Fiber deployment specifically should be a kind of a key tailwind for Amdocs as you kind of mentioned. Just how are you seeing deployments change as fiber continues to increasingly maybe re-accelerating some of that propagation. And then what inorganic investments have you made to kind of better position you to take advantage of that opportunity?

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Okay, that's helpful. Maybe moving to more near term dynamics. Last quarter you saw some 12-month backlog acceleration and pipeline pick up with a few kinds of large mature deals you're working on closing, but still kind of called out a challenging and mostly unchanged operating environment versus the last few quarters. Can you just outline how you're seeing kind of the demand trend in the near term and kind of how you expect it to develop across the year?

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Okay. Just talked about encouraging trends that you're seeing. Just, do those vary by kind of geography?

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Okay, that's helpful. Again, the kind of fiscal '25 guidance, you have a relatively wide range of 1% to 4.5% growth. So what are the levers that we should be thinking of kind of what causes you to come in at the lower versus higher end of that spectrum.

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Okay. On the profitability side of the equation, always a highlight for you guys, you exited the Q4 having some kind of efficiency gains getting into the early 300 basis points increase in operating margins across fiscal '26, can you just kind of give a context around the strategic decisions you've made and kind of where you see the most opportunity for leverage in the model.

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : I think I've saved myself. All right, so you've had some partnerships most recently with Microsoft around CRM. Just how do you view partnerships as a part of the go to market or kind of growth opportunity and just what's the latest on that Microsoft partnership?

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : Okay, that's great. Maybe last question for you. We have kind of been asking this to everybody of just how you're using Gen-AI internally? And I know you're you guys are more at the forefront of using it just in terms of kind of the services that you're offering but just anywhere within the organization that you're kind of using it more.

Question: Meta Marshall - Morgan Stanley & Co. LLC - Analyst : All right. Perfect. Well, thanks so much for being here today and sharing the Amdoc story with us. Thank you.