Amdocs Limited (NASDAQ:DOX) Q4 2023 Earnings Call Transcript

Shuky Sheffer: We did not see any slowdown in modernization because remember, when talking about monetization, this is moving — the value for our customers is moving to the cloud much more edge in environment. As we mentioned already, all the new implementation of use cases on Generative AI capabilities are targeted to new platform and not to the legacy platform. So if you want to grade in these capabilities to be able to successfully compete in the market with a very strong platform on the cloud, a very fast time to market and many, many other things, you need to modernize. We do not see any slowdown in modernization. If any, some customers show acceleration.

Tamar Rapaport-Dagim : Just added on that, drawing from past down scenarios, whether it is the financial crisis or even in the midst of the COVID, we did not see any modernization project slowdown. So just to back up what we are seeing right now is not surprising. And in terms of the…

Shuky Sheffer: If you get my point as I just mentioned is that when you sometimes employ legacy revenue, sometimes it takes some time to catch up.

Tal Liani : I fully understand it. Now I understand it. Absolutely.

Tamar Rapaport-Dagim : Regarding the currency and then our hedging, in general, we are looking forward for hedging on an ongoing basis. So we are not waiting for a certain market opportunity as we want to protect the bottom line, which means practically in the near term, when we look, for example, on Q1 2024 or even on fiscal ’24 as a whole, we are already coming into the year with pretty high coverage of our hedging. Yes, taking advantage of weakness of currency, as we’ve seen now in the Israeli shekel means we can improve the effective rate of our hedging for the latter part of ’24 and mainly for 2025, which, of course, we are doing as we speak.

Operator: [Operator Instructions] I’m showing no further questions at this time. I’d like to turn the call back over to Matt Smith for any closing remarks.

Matthew Smith : Thank you, operator, and thanks, everyone, for joining the call this evening. We do look forward to hearing from you very soon. And as always, if you have any additional questions, just reach out to us here in the IR Group. With that, have a great evening.

Operator: Thank you. Ladies and gentlemen, this does conclude today’s conference. Thank you all for participating. You may now disconnect. Have a great day.