Amdocs Reports Record Third Quarter Revenue for Fiscal 2024

Amdocs Limited (NASDAQ: DOX), a prominent provider of software and services to the communications and media sectors, announced its financial results for the third quarter of fiscal 2024, which ended June 30. The company posted record quarterly revenue of $1.25 billion, marking an increase of 1.1% year-over-year (YoY).

The backlog for the upcoming 12 months also achieved a record high of $4.25 billion, reflecting a 2.7% YoY increase. Amdocs' managed services revenue reached $741 million, constituting roughly 59% of the total revenue.

For the fiscal year 2024, Amdocs expects revenue growth of 1.9%-2.7% YoY as reported. The company reiterated its midpoint guidance for non-GAAP diluted EPS growth, tightening the range to 8.5%-9.5% YoY. GAAP diluted EPS grew by 7.4%-9.2% YoY, indicating ongoing operational efficiency and cost management.

Free cash flow for the third quarter stood at $175 million, driven by $191 million from operational activities and offset by $16 million in net capital expenditures and restructuring payments. The company repurchased $169 million of ordinary shares during this period.

CEO Shuky Sheffer highlighted strong customer demand for Amdocs' cloud solutions, citing significant contracts with AT&T, TELUS, and Vodafone Ziggo. A notable development includes a partnership with NVIDIA to integrate Amdocs' AI platform into a leading global operator's business operations.