Amdocs Limited (DOX) Bundle
A Brief History of Amdocs Limited
Amdocs Limited, a leading provider of software and services for communications and media companies, has seen significant growth and transformation over the years. As of 2024, the company continues to expand its footprint in the global market, focusing on cloud migration, 5G monetization, and digital modernization.
Financial Performance Overview
For the second fiscal quarter of 2024, Amdocs reported record revenue of $1.25 billion, reflecting a year-over-year increase of 1.8% as reported and 2.0% in constant currency. This revenue slightly exceeded the company's guidance range of $1.225 billion to $1.265 billion .
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Revenue | $1,245.8 million | $1,223.3 million | 1.8% |
| Net Income | $119.4 million | $150.3 million | -20.5% |
| GAAP Diluted EPS | $1.01 | $1.23 | -18.0% |
| Non-GAAP Diluted EPS | $1.56 | $1.47 | 6.1% |
Operational Highlights
Amdocs has achieved a record twelve-month backlog of $4.23 billion, which is approximately 3% higher compared to the previous year. This backlog reflects anticipated revenue from contracts and ongoing support activities .
In terms of operational efficiency, Amdocs reported a non-GAAP operating income of $229 million, yielding a non-GAAP operating margin of 18.4%, which is an increase of 60 basis points year-over-year .
Capital Allocation and Shareholder Returns
In the second quarter of fiscal 2024, Amdocs repurchased $115 million of its ordinary shares and declared a quarterly cash dividend of $0.479 per share .
| Type | Amount ($ million) |
|---|---|
| Share Repurchase | 115 |
| Quarterly Dividend per Share | 0.479 |
Future Outlook
Amdocs has updated its fiscal year 2024 outlook, projecting revenue growth between 1.6% and 3.6%, with GAAP diluted EPS growth estimated at 7.0% to 13.0% .
This strategic positioning and robust financial performance underscore Amdocs' commitment to delivering innovative solutions and enhancing shareholder value in the competitive telecommunications industry.
A Who Owns Amdocs Limited (DOX)
Major Shareholders
As of 2024, Amdocs Limited (DOX) has a diverse shareholder base consisting of institutional investors, individual shareholders, and company executives. The following table outlines the major shareholders as of the latest available data:
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| The Vanguard Group | Institutional | 12,150,000 | 10.4% |
| BlackRock, Inc. | Institutional | 11,800,000 | 10.0% |
| State Street Corporation | Institutional | 9,500,000 | 8.0% |
| Invesco Ltd. | Institutional | 5,200,000 | 4.5% |
| Company Executives | Insider | 3,000,000 | 2.5% |
| Other Institutional Investors | Institutional | 25,000,000 | 21.0% |
| Public Float | Public | 45,000,000 | 38.6% |
Institutional Ownership
Institutional investors hold a significant portion of Amdocs' shares. The combined ownership of the top institutional shareholders is approximately 44.9% of the total outstanding shares. This indicates a strong institutional interest in the company, reflecting confidence in its business model and financial performance.
Recent Shareholder Activities
In the fiscal year 2024, Amdocs has engaged in share repurchase activities, repurchasing approximately $115 million worth of shares during the second quarter. This move is aimed at returning value to shareholders and is indicative of the company's strong cash flow position and commitment to shareholder returns.
Executive Ownership
Company executives also hold a notable stake in Amdocs, which aligns their interests with those of shareholders. The following table summarizes the ownership details of key executives:
| Executive | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Shuky Sheffer | CEO | 1,000,000 | 0.85% |
| Tamar Rapaport-Dagim | CFO | 800,000 | 0.67% |
| Other Executives | Various | 1,200,000 | 1.0% |
Market Capitalization
As of March 31, 2024, Amdocs Limited has a market capitalization of approximately $14.6 billion, reflecting its position as a leading provider of software and services to communications and media companies. The company reported revenue of $1.25 billion for the second quarter of fiscal 2024, marking a year-over-year increase of 1.8%.
Dividend Policy
Amdocs has a consistent dividend policy, declaring a quarterly cash dividend of $0.479 per share on May 8, 2024, with a record date set for June 28, 2024. This reflects the company's commitment to returning capital to shareholders while maintaining sufficient reinvestment for growth.
Amdocs Limited (DOX) Mission Statement
Mission Statement Overview
Amdocs Limited aims to be a leading provider of software and services to communications and media companies, focusing on innovation that drives digital transformation and enhances customer experiences.
Financial Performance Indicators
In the second quarter of fiscal 2024, Amdocs reported a record revenue of $1.25 billion, representing a year-over-year increase of 1.8% as reported, and 2.0% in constant currency terms. The company's twelve-month backlog stood at a record $4.23 billion, up approximately 3% compared to the prior year period.
| Metric | Value (Q2 FY2024) |
|---|---|
| Revenue | $1,245.8 million |
| Net Income | $119.4 million |
| GAAP Diluted EPS | $1.01 |
| Non-GAAP Diluted EPS | $1.56 |
| Free Cash Flow | $113 million |
| Twelve-Month Backlog | $4.23 billion |
Market Dynamics and Strategic Focus
Amdocs has focused on enhancing its operational excellence through the adoption of automation and artificial intelligence. The company has reported strong sales momentum, particularly in North America, with significant contracts signed with major operators including AT&T and Rogers.
Guidance and Outlook
For fiscal year 2024, Amdocs expects revenue growth of 1.6% to 3.6% as reported, and 1.7% to 3.7% in constant currency. The anticipated GAAP diluted EPS growth is projected at 7.0% to 13.0%, while non-GAAP diluted EPS growth is expected to be 7.0% to 11.0%.
| Fiscal Year 2024 Guidance | GAAP | Non-GAAP |
|---|---|---|
| Revenue Growth | 1.6% - 3.6% | 1.7% - 3.7% |
| Diluted EPS Growth | 7.0% - 13.0% | 7.0% - 11.0% |
Cash Allocation and Shareholder Returns
Amdocs declared a quarterly cash dividend of $0.479 per share, payable on July 26, 2024. The company repurchased $115 million of ordinary shares during the second quarter of fiscal 2024.
| Cash Allocation Metric | Value |
|---|---|
| Quarterly Dividend per Share | $0.479 |
| Share Repurchase Amount | $115 million |
Conclusion
Amdocs Limited is positioned to continue its growth trajectory, leveraging its expertise in software and services while maintaining a strong commitment to shareholder returns.
How Amdocs Limited (DOX) Works
Business Overview
Amdocs Limited (NASDAQ: DOX) provides software and services to communications and media companies. As of 2024, Amdocs is focused on cloud migration, 5G monetization, digital modernization, and network automation.
Financial Performance
For the second fiscal quarter of 2024, Amdocs reported:
- Revenue: $1,246 million, up 1.8% year-over-year.
- GAAP Operating Income: $156 million; GAAP Operating Margin: 12.5%.
- Non-GAAP Operating Income: $229 million; Non-GAAP Operating Margin: 18.4%.
- Net Income: $119 million; Net Income Attributable to Amdocs Limited: $118 million.
- Free Cash Flow: $113 million.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $1,246 million | $1,223 million |
| GAAP Operating Income | $156 million | $182 million |
| Non-GAAP Operating Income | $229 million | $218 million |
| Net Income | $119 million | $150 million |
| Free Cash Flow | $113 million | $259 million |
Revenue Breakdown
Managed services revenue accounted for approximately 58% of total revenue, totaling $720 million.
Operating Expenses
Operating expenses for the second quarter included:
- Cost of Revenue: $802 million.
- Research and Development: $91 million.
- Selling, General and Administrative: $148 million.
- Restructuring Charges: $33 million.
| Expense Type | Q2 2024 | Q2 2023 |
|---|---|---|
| Cost of Revenue | $802 million | $795 million |
| Research and Development | $91 million | $89 million |
| Selling, General and Administrative | $148 million | $143 million |
| Restructuring Charges | $33 million | $0 |
Shareholder Returns
Amdocs announced a quarterly cash dividend of $0.479 per share, payable on July 26, 2024. The company repurchased $115 million of ordinary shares during the second fiscal quarter.
Market Position and Backlog
Amdocs has a record twelve-month backlog of $4.23 billion, which is a 3% increase compared to the previous year. This backlog includes anticipated revenue from contracts, managed services, maintenance, and ongoing support activities.
Future Outlook
For fiscal 2024, Amdocs expects revenue growth between 1.6% and 3.6%. The guidance includes:
- GAAP Diluted EPS Growth: 7.0%–13.0%.
- Non-GAAP Diluted EPS Growth: 7.0%–11.0%.
- Free Cash Flow Guidance: $700 million.
| Metric | Fiscal 2024 Guidance |
|---|---|
| Revenue Growth | 1.6% - 3.6% |
| GAAP Diluted EPS Growth | 7.0% - 13.0% |
| Non-GAAP Diluted EPS Growth | 7.0% - 11.0% |
| Free Cash Flow | $700 million |
How Amdocs Limited (DOX) Makes Money
Revenue Streams
Amdocs Limited generates revenue primarily through its software and services tailored for communications and media companies. The main categories of revenue include:
- Managed Services: $720 million, which represents approximately 58% of total revenue.
- Software Solutions: The remainder of revenue is derived from software licenses and related services.
Financial Performance
For the second quarter of fiscal 2024, Amdocs reported:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $1,246 million | $1,223 million |
| Net Income | $119 million | $150 million |
| GAAP Diluted EPS | $1.01 | $1.23 |
| Non-GAAP Diluted EPS | $1.56 | $1.47 |
| Operating Income | $156 million | $182 million |
Cost Structure
The operating expenses for Amdocs in Q2 2024 were as follows:
| Expense Category | Q2 2024 | Q2 2023 |
|---|---|---|
| Cost of Revenue | $802 million | $795 million |
| Research and Development | $91 million | $89 million |
| Selling, General and Administrative | $148 million | $143 million |
| Restructuring Charges | $33 million | $0 |
Market Position and Growth
Amdocs has a record twelve-month backlog of $4.23 billion, which is up approximately 3% year-over-year. This backlog indicates strong future revenue potential as it includes anticipated revenue from existing contracts and services. The company expects fiscal 2024 revenue growth of 1.6% to 3.6% year-over-year.
Capital Allocation
Amdocs is actively managing its capital through:
- Free Cash Flow: $113 million for the second quarter, with cash flow from operations of $133 million.
- Share Repurchase: $115 million of ordinary shares repurchased during the second fiscal quarter.
- Dividends: A cash dividend of $0.479 per share declared, payable on July 26, 2024.
Future Outlook
The company anticipates continued revenue growth and operational improvements, with non-GAAP diluted EPS growth projected between 7.0% and 11.0% for fiscal 2024.
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