Amdocs (DOX) Stifel 2024 Cross Sector Insight Conference summary

Business overview and strategy

• Provides end-to-end platforms and systems for global telecom service providers, covering customer engagement, ordering, billing, and network orchestration.

• Operates a unique product-led services model, developing, implementing, and operating its own software for clients, ensuring accountability.

• Focuses exclusively on the telco sector, serving nearly 3 billion users daily across multiple regions.

• Maintains long-term partnerships with major clients, evolving offerings from billing to full suite solutions.

Key client relationships and contract evolution

• Maintains multi-decade partnerships with AT&T and T-Mobile, supporting them through mergers and technology upgrades.

• Recently extended all major agreements with AT&T through 2029, including a new 5-year mainframe-to-cloud migration project.

• Supports T-Mobile in post-merger integration and modernization, with new opportunities arising from T-Mobile's acquisition of UScellular.

• Managed services now account for about 60% of revenue, providing 80% annual visibility.

Cloud migration and modernization

• Less than 10% of client workloads have moved to the cloud, but migration is accelerating, with cloud now over 20% of business and growing double digits.

• Acquired Astadia to automate mainframe-to-cloud transitions, enabling large-scale legacy system modernization.

• Cloud projects expand managed services scope, as the company now manages both system and infrastructure operations.