And gentlemen, thank you for standing by, and welcome to the Q1 2021 Amdocs Earnings Conference Call. At this time, all participants telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matthew will be Smith, Head of Investor Relations. Please go ahead.
Thank you, operator. Before we begin, I would like point out that during this call, we will discuss certain financial information that is not prepared in accordance with GAAP. The company's management uses this financial information in its internal analysis in order to exclude the effects of acquisitions and other significant items that may have a disproportionate effect in a particular period. Accordingly. Management believes that isolating the effects of such events enables management and investors to consistently analyze the critical components and results of operations of the company's business and to have a meaningful comparison to prior periods.
For more information regarding our use of non GAAP financial measures, including reconciliations of these measures, we refer you to in today's earnings release, which will also be furnished with the SEC on Form 6 ks. Also, this call includes information that constitutes forward looking statements. Although we believe the expectations reflected in such forward looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, the duration and severity of the COVID-nineteen pandemic and its impacts on the global economy and such other risks as discussed in our earnings release today and at greater length in the company's filings with the Securities and Exchange Commission, including in our annual report on Form 20 F for the fiscal year ended September 30, 2020, filed on December 14, 2020.
Amdocs may elect to update these forward looking statements at some point in the future. However, the company specifically disclaims any obligation to do so. Participating on the call with me today are Shuky Sheffer, President and Chief Executive Officer of Amdocs Management Limited and Tamar Rapaport Dagim, Joint are in the same period. And finally, a copy of today's prepared remarks will be posted on the Investor Relations section of Amdocs' website following the conclusion of this call. And with that, I'll turn it over to Shuky.
Thank you, Matt, and good afternoon to everyone joining us on today's call. I would like to preface today's remarks by referring to the previously announced divestiture of OpenMarket, which we successfully completed on December 31. My comments on this call will therefore refer to certain financial metrics on a pro form a basis where applicable in order to provide you with a sense of the underlying business trends, excluding the financial impacts of open market. I am pleased to report a strong quarter To start our fiscal year 2021, among the highlights, we delivered a record high revenue, which was up 4.3% year over year as reported and above the midpoint of our guidance even without the benefit of foreign currency movements, With our best ever quarter in North America and Europe, we maintain a high win rate, including significant new multiyear strategic partnership agreement with T Mobile USA, and we generate a robust normalized free cash flow of $385,000,000 for the quarter. During Q1, we focused on accelerating our growth by monetizing And as we've built to meet our customer requirements for digital modernization, 5 gs, the journey to the cloud and next generation OSS platform is accelerating over 85 gs network service in the cloud era.
I'm happy to report that we are seeing some encouraging signs of market traction as we execute on our strategy. Our Q1 sales momentum was strong as reflected in our pro form a 12 months backlog, which grew by a record amount of approximately $150,000,000 sequentially and 5.6% year over year. The mix of the new awards was also well balanced across our product portfolio and include also several new wins for OpenEdge 5D Charging and Policy Now let me provide you some color regarding our regional performance during Q1. Beginning with North America. We delivered a record quarter as ramp up customer activities to support their strategic investment in net generation 5 gs Customer Experience Solution.
Will deliver on the cloud. At AT and T, for instance, we are accelerating a program to modernize the consumer mobility domain by including the deployment of 5 gs monetization solution, leveraging OpenEdge capabilities as we announced last quarter. As I mentioned in your opening remarks, we are today delighted to announce that Amdocs has been selected to modernize and accelerate the T Mobile begin the transformation and journey to the cloud by signing a new multiyear agreement, which further strengthens our long term strategic partnership. At start of the engagement, Timo will implement the Amdocs 1 product portfolio to support next generation communication and media services for its consumer and business customer. Additionally, Amdocs will provide extended next generation hybrid cloud operation in the form of a multiyear managed services engagement for T Mobile's digital platform covering automation and operation and continued support for T Mobile as it navigates through a complex integration process.
A milestone after the Q1 highlights, Charter selected Amdocs for a multiyear managed services agreement in support of its Spectrum mobile business. Additionally, a pay TV provider is showing our cloud based monetization platform to support enterprise and wholesale services in its next generation 5 gs network. To summarize North America, we are pleased with our Q1 sales momentum, which we believe reflect the strength of our next generation 5 gs Customer Experience solution and our ability to accelerate our customer journey to the cloud. Moving to Europe. We delivered a 2nd straight quarter of record revenue.
During Q1, we continued to win new logos such as WingTray, one of the largest mobile operators in Italy, which has chosen to deploy Amdocs Optima to the public cloud to provide a more than 5 gs ready monetization platform for its prospect, consumer and ex enterprise customer across all lines of business. An emerging theme in the communication industry is achieved from physical to software based SIM cards. This trend has been accelerated by the global pandemic and is translating to growing demand for the Amdocs cloud based eSIM platform, which has already been deployed adopted by Telefonica in Brazil and Chile and which is recently chosen by Cellcom Israel to be deployed on Microsoft Azure for its commercial launch of eSIM enabled devices like smartwatches, cellular phone, We are also delighted to be growing our presence in Russia. Where Project 02, our Digital Experience Group has been selected by MPS as a consultancy partner in its plans to take its customer will be able to access the ecosystem and retail experience to the next level and to help identify new business revenue stream and opportunities. Amdocs media offering also continuing to get traction.
In Eastern Europe, Ubiquiti strengthened its footprint A1 Telekomotra Group, by renewing its multiyear partnership with A1 or WADC to provide transaction based offerings for premium studio content as well as end to end content management, which includes marketing localization and processing services. Regarding the outlook of Europe, we are focused on our project execution and remaining new business opportunities that will further expand our regional customer footprint for the longer term. Turning to the rest of the world. Q1 revenue improved on a sequential basis. Among the highlights of the quarter, we We continue to strengthen our relationship with long standing strategic customer across the region.
A good example is the Telefonica Group, where we recently expanded our existing multiyear services agreement with Movistar Peru and to modernize and accelerate its wireline corporate enterprise transformation. Additionally, we signed a multi year extension and expansion of our managed services agreement with Telefonica Movistar Chile to include the launch of our cloud based digital eSIM solution, which I mentioned before. To add out my original comments, I am pleased with our first quarter call. Excluding open market, we are on track to deliver a full year growth on a pro form a basis in each of the 3 geographical regions in which we operate in fiscal 2021. Although, we remind you that sequential trends may fluctuate across regions due to foreign currency movement in sizing and timing of the project activities and other factors.
Our confidence in the outlook is supported by recent sales momentum and our ability to monetize the strategic Engines of growth we have built to support our customer needs for: digital modernization to enhance customer experience 5 gs The journey to the cloud and the next generation OSX platform is accelerating innovative 5 gs network services in the cloud era. We are seeing strong interest in OpenEdge 5 gs charging and policy solution, which naturally complements The multiplay capabilities of our charging platform and 5 gs monetization and order handling offerings. The integration of these technologies has strengthened our market offering and helped us to win new awards with AT and T and several other service provider in the past months. These awards include 1 of America's largest prepaid no contact wireless provider, Which has recently selected Amdocs' OpenEdge 5 gs policy management system running on AWS Cloud to enable Management and control of 5 gs and all other wireless services. Over in Europe, we've expanded our partnership with Day 1 Telecom Austria Group was a multiyear deal to provide digital monetization using OpEx 5 gs charging and policy products and services.
And In Globe Telecom, in the Philippines, we have successfully implemented the Amdocs OpenEdge solution on AWS Cloud will support GOMO Global's fully digital telecom brand. Overall, we are pleased with OpNet's recent progress and its proven ability to support the future charging and policy needs of the world service provider and the accelerate of the 5 gs investments. To wrap up, I'm pleased with the strong start we've made to the fiscal year, especially amid the great uncertainty regarding the spread and severity of the COVID-nineteen pandemic, which continues to adversely affect the global economic outlook. We remain on track to deliver accelerated growth in fiscal 2021 on a pro form a basis consistent with our present guidance, and we continue to expect a Stronger second half as we execute on our strategy and ramp up recent customer awards. Our Conferences in the outlook is supported by the visibility of our backlog, our proven ability to execute, the accountability we provide to our customer in our focused strategy, which we believe is aligned with the needs of the market.
With our commitment to profitability and disciplined use of cash, will remain well placed to deliver total shareholder return of almost 10% in fiscal 2021, including a slightly improved outlook for pro form a non GAAP earnings per share growth of 7.5% at the midpoint of our new guidance range plus our dividend yield. Finally, I would like to take a moment to thank our employees for supporting our social responsibilities and related activities, including our mission to the right connectivity and digital inclusion in the many communities in which we operate worldwide. So at the global pandemic, people's ability to interact, access services, learning work has been essential. Our focus on enabling digital inclusion runs across our offerings, But also extend to our communities, forming Internet connectivity and accessibility to digital literacy and advanced skill training. For example, We are connecting 4 schools in Kenya to the Internet, giving the opportunity to more than 7,000 children to use this window to the world's collaboration with in addition to donating thousands of computers to underrepresented population, Many of our employees are also teaching different population how to access the Internet, providing tailor made digital skills training And helping future generation to become more employable in the tech sector.
We are committed to the journey towards digital inclusion. You will continue to save societies where they need us the most. With that, let me turn the call to Tamara for her remarks.
Thank you, Shuky. Since we completed the divestiture of open market on December 31, 2020, our reported numbers for the income statement and cash flows in the first In order to provide you with a sense of underlying business trends, my comments today will refer to certain financial metrics on a pro form a basis, which exclude the financial impact of open market from the current fiscal year and comparable fiscal year periods. 1st fiscal quarter revenue of $1,086,000,000 was above the midpoint of our guidance range of $1,055,000,000 to 1,95,000,000 are approximately $5,000,000 relative to the 4th fiscal quarter of 2020 $6,000,000 relative to guidance. On a year over year basis, our first quarter revenue grew by 4.3% as reported and 3.7% on constant currency. Our first fiscal quarter non GAAP operating margin was 17.3%, above the midpoint of our long term target range of 16.5 are 70.5% and slightly better on a sequential and year ago basis.
NANDIAF operating margin was consistent with our guidance will protect profitability despite the COVID-nineteen related challenges. Below the operating line, non GAAP net interest and other expense was $5,300,000 in Q1, the mix of which includes interest expense related to our short term borrowings and 10 year bond And the impact of foreign currency fluctuations. For forward looking purposes, we expect that foreign currency fluctuations will continue to impact our non GAAP net interest and other expense line in the range of a few $1,000,000 on a quarterly basis. Diluted non GAAP EPS was $1.16 in Q1, above the high end of our guidance range of $1.09 to $1.15 Our non GAAP effective Tax rate was 16.3% in the 1st fiscal quarter, consistent with our annual target range of 13% to 17 present. Diluted GAAP EPS was $2.28 for the 1st fiscal quarter, are well above the high end of our guidance range of $0.85 to $0.93 due to a net gain of 1.42 Thanks for the diluted share, reliance on the divestiture of open market, which was not included in the original guidance for the quarter.
Free cash flow was and included the benefit of the new multiyear strategic agreement we signed with T Mobile during the 1st fiscal quarter. Normalized free cash flow was $385,000,000 in the 1st fiscal quarter. Please refer to the reconciliation table provided in our in the Q1 earnings release for an explanation of the difference between normalized and reported free cash flow in the quarter and for past periods. DSO of 78 days decreased by 10 days year over year and increased by 3 days as compared to prior fiscal quarter. Remind you that DSOs may fluctuate from quarter to quarter.
As of December 31, Total deferred revenue exceeded total unbilled receivables by $140,000,000 This reflects A substantial increase in the total deferred revenue of $224,000,000 as compared to the 4th fiscal quarter of 2020, Slightly offset by an increase in total unbilled receivables of $10,000,000 The increase in total deferred revenue is primarily related to the New T Mobile agreement as well as many other new activities signed during Q1. Changes in our bill receivable and total deferred revenue are primarily due to the timing of contract specific are in the range of 2.5 times. Moving forward, you should expect these items to fluctuate from quarter to quarter in line with normal business activities. Moving on, our 12 months backlog was $3,000,000,000 at the end of 1st fiscal quarter reflect already the exclusion of open markets following its divestitures as of December 31. On a pro form a basis, excluding the financial impact of open market, our 12 months backlog had a record increase of approximately $150,000,000 sequentially
from the
end of the prior quarter and was up roughly 5.6% year over year. As a reminder, we believe our 12 month backlog continues to serve as a will be the indicator of our forward looking revenue. I am pleased to report another record quarter for managed services agreements, which comprise roughly 57% of total revenue. This performance reflects high renewal rates, the adoption of our managed transformation and continued expansion of activities within existing customers. To clarify, open market business was not classified as managed services and therefore exit will not impact moving forward our revenue from managed services.
Our cash balance at the end of the 1st fiscal quarter was $300,000,000 realized from the divestiture of open market. Given our plans to use the majority of open market consideration for accelerated share buyback in the next several months, we expect our cash balance to be lower at the end of fiscal Q2. Will remain comfortable with our balance sheet and believe that we have ample liquidity to support our ongoing business needs while returning the capacity will fund strategic growth investments as and when the right opportunities arise. Additionally, we are committed to maintaining our investment grade rating. Now turning to the outlook, the prevailing level of macroeconomic and business uncertainty surrounding the magnitude and duration of COVID-nineteen pandemic remains are being recorded.
The midpoint of our revenue guidance reflects what we consider to be the most likely outcome based on the information we have today, but we cannot predict We expect revenue for the 2nd fiscal quarter of 2021 to be within a range of are $1,015,000,000 to $1,055,000,000 Our Q2 revenue guidance anticipates a positive in the quarter are in a sequential impact of approximately $4,000,000 from foreign currency fluctuations. Regarding the full fiscal year 2021, We expect pro form a revenue growth of approximately 3.5% to 7.5% year over year on a constant currency basis, Adjusting for open market. This output is in line with our previous guidance for expected pro form a revenue growth on a constant currency basis. On a recorded basis, we are adjusting our full year fiscal 2021 revenue outlook to reflect the divestitures of OpenMarket as of December 31, meaning that open market is included in the 1st fiscal quarter numbers only. We therefore expect reported full year revenue growth in the range of negative 0.3 percent to plus 3.7% year over year as compared with our previous range of 4% to 8% year over year.
The adjusted revenue outlook on a reported basis anticipated positive impact from foreign currency fluctuations of approximately 1.2% year over year as compared to a positive impact of 0.5% previously. As a reminder, our initial outlook at the beginning of fiscal 2021 have anticipated revenue growth of 3.5% to 7.5% on constant currency basis, including a full year contribution from open market. Additionally, we expect the ramp up of customer activity to contribute an acceleration in the rate of year over year revenue growth on a pro form a basis in the fiscal second half. Moreover, we expect all three geographical regions to deliver pro form a revenue growth in the full year fiscal 2021. As a final point to further help in our modeling, we remind you that we originally planned for open market fiscal 2021 annual revenues in the range of are approximately $300,000,000 which represented more or less the same growth year over year to the rest of the company.
Open market generated roughly 75% of its revenues from North America with dual accounting for the balance. Regarding profitability, we now anticipate quarterly non GAAP operating margins to track roughly in line with high end of the annual target range of are 16.5% to 17.5%. This improvement relative to the levels of the past several quarters reflects the benefit have ongoing cost and efficiency improvements and the divestiture of open market for which operating margins were below the corporate average, tracking in the low double digits. We remain focused on protecting will be participating in the future growth strategy. We expect the 2nd fiscal quarter diluted non GAAP EPS to be in the range of $1.09 to $1.15 Our 2nd fiscal quarter non GAAP EPS guidance incorporates an expected average diluted share count of roughly 132,000,000 shares.
We excluded the impact of incremental future share buyback activity during the 2nd fiscal quarter as the level of activity will depend on market conditions. Regarding the full year fiscal 2021 outlook, we expect non GAAP diluted earnings per share growth of 5.5 percent to 9.5 represent on a pro form a basis, which is slightly better than the original pro form a guidance of 5% to 9% we provided for the year. On a reported basis, we expect to deliver full year diluted non GAAP EPS growth of 4% to 8% year over year. This outlook includes the impact of open market for the Q1 only and compares with our previous outlook of 5% to 9% year over year, will still include the open market for the full year of fiscal 2021. We expect our non GAAP effective tax are going to be within our annual target range of 13% to 17% for the full fiscal year 2021.
I am pleased to report we are are raising our outlook for normalized free cash flow for the year 2021 to approximately $800,000,000 compared to $620,000,000 previously. The new outlook is equivalent to approximately 8% of our Amdocs current market capitalization and represents a conversion rate of roughly 130 represent relative to expectations for non GAAP net income. As a reminder, we expect free cash flow to convert at a rate more are on par with our expected non GAAP net income over the long term. Along similar lines, we are raising our outlook for reported free are in line with our expectations for fiscal year 2021 to approximately $600,000,000 as compared to roughly $470,000,000 previously. Our reported free cash flow outlook anticipates expenditures of roughly $140,000,000 in relation to the development of our new campus in Israel, $40,000,000 of capital gains tax to be paid in relation to the divestiture of open market and other items.
As previously stated, we expect fiscal 2021 to be the peak year of capital expenditure for the new campus. Additionally, the gap between expected free cash flow on normalized and reported basis has widened primarily due to the tax will be paid on the capital gains of open market. Additionally, we remind you that free cash flow in the second purchase $90,000,000 of our ordinary shares under our current authorization. Regarding our capital allocation plan As for the rest of fiscal 2021, we expect to return cash to shareholders in the form of our regular quarterly dividend and share repurchases are at levels roughly similar to that of fiscal Q1, subject to factors such as the status of COVID-nineteen pandemic, out of our M and A, Financial markets and preventing industry conditions. In addition to our regular quarterly share repurchases, we also plan to return the majority of the net proceeds from open market to shareholders by way of our share repurchase program over the course of the next several months.
As of December 31, We had roughly $588,000,000 of authorized capacity for share repurchases with no stated expiration date, which we will execute on the company's discretion going forward. Overall, we are on track to deliver accelerated pro form a revenue growth, improve profitability and better than expected free cash flow in fiscal 2021. The combination of which supports an outlook for total shareholders' return of nearly 10%, including the 7.5% midpoint of our pro form a non GAAP earnings per share growth guidance, plus our dividend yield. As a final comment, I'm proud to say that Amdocs has been recognized once again for its commitment to sustainability and corporate responsibility by earning a place on the introduced S and P Dow Jones Sustainability Index for North America for the 2nd consecutive year. I would like to join Shuky in acknowledging our employees for their dedication, commitment to best practices and ability to work together with our partners and customers, without which these achievements would not have been possible.
With that, we can turn it back to the operator and we're happy to take your questions.
Please limit yourself to one question and one follow-up. Please stand by and we'll compile the Q and A roster. Our first question comes from Ashwin Mr. Vakir with Citi, you may proceed with your question.
Hi Shuky. Hi Tamar. Good quarter. Congratulations.
Thank you.
I
want to start off maybe with a question on T Mobile. First, it's great that we stepped beyond any contractual uncertainty that might have existed there due to the merger. But does the new contract supersede the separate contracts that you had before, is it basically incremental functionality? Is there a move to eventually convert The full relationship to managed services deal just like on the Sprint side. Any thoughts on the evolution of this relationship?
Hi, Ashwin. The contract covers many activities. As you mentioned and rightfully so, we had many services In spring, we have MediTelgene Metro under T Mobile and we had other MediTelgene's activities also on the Magento bread. But the overall contract or Agreement is comprised for transformation to the new Amdocs platform, both consumer and business. It also includes Medit Services in the new form of cloud operation and a lot of activities that should support The complex integration that T Mobile and Sprint are going to execute.
So overall, I believe As you can see, some pickup in the activity during the probably in the next couple of years. And we believe that there is a lot of activities for us to support T Mobile In many activities they do. So overall, we are very positive of this agreement, and we believe it definitely can protect our activity And actually enhance our activity with the strategic relationship that we formed, which is translated to this new agreement.
Got it. Got it. And then the other question, actually a couple of clarifications. You had good cash flow in the quarter. I did not fully understand why there should be a benefit from the T Mobile contract signing.
Did they prepay you for services? If so, can you size that impact? And then the clarification is on the net proceeds from open market for buyback. I know you don't normally put buyback in your forward expectation, but since you explicitly said in this case That you'll use it for buyback, are you putting that in your EPS?
So as you know, on the first point, The collection this quarter has been very strong in general. And the T Mobile agreements also contributed By the fact that there was some payment related already to this new agreement, given Some initial milestone in this multiyear agreement. But I have to say, I was pleased with collections in general, not just related to T Mobile. As to the second question on the buyback, you're absolutely right that we are expecting to take the majority of the net consideration from the open market sale and put it into play in the next several months in buyback. We just I don't want to get into technicality of including this already in the Q2 EPS guidance, but within the overall year guidance So fairing per
share, it is expected.
And actually, just given how it works and the fact that any buyback is impacting EPS to weighted average share Anyway, most of the impact of this activity will be in play in the second fiscal half of the year.
Understood. Thank you. Congratulations again.
Thanks, Alex. Thank you.
Thank you. Our next question comes from Tom Roderick with Stifel. You may proceed with your question.
There we go. Let's try that again. So hi Shuky, hi Tamara. Thanks for taking my question. Congratulations on a nice start to the year.
So I'd love to kind of go a little step further, just on not just on T Mobile, but more broadly on what you're seeing with 5 gs adoption of net new services and how carriers are thinking about that. So you have a little bit of visibility into it in the North American market and what your customers are thinking talking about. How is that translating into demand for Amdocs, demand for net new services? And then Shuky, can you kind of give a little bit of an offset in terms of how that impacts the historical NFC vision? I would love to hear If that's eating into that at all or if it's purely complementary.
Thanks.
Okay. So, NFV, actually, it's an older term. I mean, it is evolved today to next generation networks Actually, in which we have a lot of activity and they're pretty much aligned with our next generation OSS offering. But back to your 5 gs question. All our customers in North America are now building the next generation 5 gs platform, Both for consumer and both for business, B2B.
Our offering actually addresses the whole Variety of systems that need to support this, from obviously, from the ordering system, from catalog, From charging and rating and all the monetization activity and also in the network domain. So I think that and everything basically is on the cloud. So I think that if you look at our strategy, which actually to support the 5 5 gs offering on the cloud is very much aligned with ongoing North America, which is leading the world in 5 gs adoption. So I think that we are with the right time, with the right offering and every one of our customer right now in North America are investing in 5 gs.
Let me just add another point on that is that in the other market, in the other side of the world, which is Korea definitely leading the way and 5 gs as well. We've also been very successful both with Korea Telecom and the more recent win with LG U plus Gaining a lot of experience and good references from these wins as well. Yes.
And back to your energy comment. So now we see a lot of demand for our network offering. It's as I said today, it's called next generation OSS. It's orchestration, service design creation, Everything cloud native, and I think that now that the 5 gs network offers so much capabilities For monetization, the integration between our BSS and OSS system is very relevant.
Wonderful, really helpful. And Tamara, this is probably still a little bit early in influx given the world is changing so much right now. But as you put together, as you complete a new campus, a beautiful new campus and in the middle of all that, the world is changing with respect to where employees can sit in the advancements of virtual and work from home environment. Does any of What we've seen in the last year change the way you think about the long term margin structure and where your employees sit? Or do you expect that everyone will sort of be Back in the office by the end of this year whenever the time is right.
So in general, we believe that working from the office provides a lot of advantages that are missing when everybody is at home. But naturally, we believe And felt the same before COVID, that some kind of flexibility of a hybrid environment It is advisable and good for employees in creating the good balance. To remind you, in January of 2020, before we all New COVID is coming up. We actually moved to work one day away from home globally. And now with all the learnings and experiences, of course, with this recent year, in force on us with the pandemic, we realized that there is An opportunity to build a hybrid model where we give flexibilities to employees to work some days from But naturally, I want them to come back to the office.
Now relative to timing, that depends in each country and each region, sometimes even specifically Stacy, what's the overall situation? Because, of course, we are keeping the first priority the health and safety of our employees. So I cannot commit relative to Timing when we are going back to this new normal situation, connecting it back to your point about the campus, We've built a lot of flexibilities in the design and thinking in this campus in terms of seating layout, in terms of how much we can sublease To others, because naturally, we build a campus that is there to stay for decades, not just for the next year or 2. So So we talked about all those things and given the different learnings in the last year, we've added, of course, different points of consideration to how we are thinking about and things like that, but I think the fact that we're actually going to own the campus gives us much more flexibility will decide how much space we use versus sublease visavis the current situation where we are telling ourselves.
Thank you. Our next question comes from Shaul Eyal with Oppenheimer. You may proceed with your question.
Thank you. Good afternoon, Shuky, Tamar and Matt. Congrats on the ongoing healthy execution. My first question is, is actually also on T Mobile, on that expansion. When you look at the number of Fibers that you've addressed several years ago and you compare that, maybe even contrast that with a recent expansion.
Is there a significant number of subscribers addition under the currently expanded engagement.
I don't think that the The thing here is the number of subscribers, it's more the depth of the adoption of our next gen product portfolio And the fact that we are going to support a wider footprint in cloudoft and managed services Rather than counting subscribers, and the agreement is taking us to the next level, both in terms of this footprint as well as positioning us for further growth given the strategic relationship that is now in force with this agreement.
Got it. Got it. This is fair enough. And I have an additional question. So Now that open market is fully divested, can you talk to us about the open market contribution that that you've had during fiscal 2020,
I
know you might have alluded to being about one time revenue give or take, but wanted to see if you could provide us with slightly more color about it now that you have the mirror mirror.
Yes. So as we said, we were expecting roughly $300,000,000 which is 1x of the consideration that we received in 2020 And it was going more or less like the rest of the company. So if you take it back to 2020 number, roughly 280. So when we look now on carving it up, I think it's very, of course, kind of natural that we try to get more color What the pro form a numbers look like, so people can understand the underlying business direction, which is very positive. And every quarter during 2021, since the reported numbers will be apples and oranges, We will continue to give pro form a color and for people to understand the real trend that is going on.
So I hope that's going to be helpful.
Got it. Got it. Awesome. Thank you so much. Congrats again.
Thank you. Thanks, Joe.
Thank you. Our next question comes from Jackson Ader with JPMorgan. You may proceed with your question.
Excellent. Thanks for taking my questions, guys. The first one is on OpenNet. A few charging 5 gs wins announced in the last couple of quarters. And I'm just curious, were these deals in the OpenNet pipeline prior to the acquisition announcement are being closed or are these actually brand new deals that Amdocs has kind of sourced alongside OpenNet.
I think it's pretty much almost half and half. Half of the deals were actually started the sales cycle started when Opiant Steel was a standalone company, But many deals were added when they will join Amdocs, and we're able to take them to a lot of customer worldwide. I can tell you that now that actually, the pickup that we see already this quarter and for the rest of the year is coming From a new pipeline, it does not exist in the open and standalone pipeline.
Okay. And then Just another follow-up on the T Mobile announcement. You guys have talked a lot in the past about kind of the idea that Amdocs and the AmdocsONE platform and different things that you can do being layered on top of maybe some legacy systems and then ripping and replacing those legacy systems is kind of on the come in the next quarters or years down the pike. Is that a similar way that we should be thinking about this particular partnership?
No. This is more like the idea is to take the full AmdocsONE platform, build it And then slowly migrate all the consumer and the B2B customer of T Mobile to this new will.
Okay. I like it. Thank you.
Thank you. Our next question comes from Will Powell with Baird. You may proceed with your question.
Okay, great. Thanks. Yes, Congratulations on the results. I guess first question pertains principally to AT and T, I guess Maybe to a degree to T Mobile, but we just had a very big spectrum auction in the U. S.
And I'd love to get kind of your perspective how you would assess any potential risks from slower spending as that comes together and the carriers, particularly AT and T figures out how and when to deploy that spectrum versus the medium and longer term opportunities for you all around network planning with that spectrum, 5 gs opportunities, etcetera. Any kind of early thoughts as to how that could impact the AT and T opportunity?
Actually, I think it is the opposite. It means that our customer, all of them are fully focused on 5 gs deployment. In order to deploy 5 gs, definitely need spectrum to build a network, but they must upgrade all their BSS system, their charging and policy So I think it's another evidence that all the North America carriers are committed to the 5 gs journey. And I think it's actually good news for us Because it means that while they are others in the network, they must also update the IT system, the BSS systems, policy will be charging and everything that touches 5 gs.
Okay. Yes, that makes sense. All right. And I just I also just wanted to ask, Tamar, really nice growth in backlog. Any other color you're able to share that?
How much of that perhaps was related to T Mobile versus, I don't know, other factors you might call out.
So T Mobile was a significant number, but definitely, if you Just even the wins we could announce, not to mention many others that we were not able to mention by name. It was a very strong signing quarter. So I'm very pleased with many First of all, new logos, we mentioned, for example, WinTray, one of the largest operators in Italy. We've been speaking for a while about the success in Italy, A country just several years ago, we didn't have any business in and then we signed Vodafone Italy and then Telecom Italia And then Sky Italy and now in Trent. So we are very happy about the momentum.
North America, we gave a couple of examples. Charter, We gave an indication that we signed another important deal in North America with the pay TV Players that is moving into 5 gs. We signed another prepaid customer with 5 gs policy. So Really, it's been a great quarter. Yes, T Mobile contributed definitely, but there are many other deals.
Okay. Thank you.
Thanks.
Thank you. Telephone. Our next question comes from Tavy Rosner with Barclays. You may proceed with your question.
Hi. This is Chris Reimer on for Tavy. Thank you for taking my question. Just looking at managed services And last year being a record year and the strong performance this quarter, What would you say were the driving forces behind customers who choose the managed services?
I think the driving force is that actually, managed services is evolving. The new name is a cloud operation or cloud based services operation. That in all the new deals, and T Mobile is a good example, It's the deal have many aspects and many pillars. One of them is the deployment of a new transformation to our new Amazon platform, But to operate the new cloud environment in the cloud managed services operation. So I think that the Same value that we are able to prove in the managed services, which was on premise, we can even be have a bigger value in the cloud operation.
And I think given the full accountability that we have that always was the main frontier for us in the embedded We see the same phenomena, the same differentiation in the cloud mandatory operation, and this is why we expect this to continue to grow.
Okay. And can you talk about the traction you're seeing for Amdocs Media and some of the content services you provide.
When we look on the media space, To remind you, when we enter this adjacent market, we saw a 3 pronged strategy. 1 was to take the media business we acquired Broadly, it's internationally. The beachhead there at the time in our acquisition strategy was Vubiquity, mainly focused back then in North America. And we've had the major success in taking into many new logos in Europe, in Latin America, in APAC, etcetera. The second layer was the convergence that is happening between connectivity and entertainment.
We've seen many Location service providers adding entertainment services, whether through M and A or launching over the top brands, And we've seen the success there. And the 3rd layer, which is the slower to evolve from our point of view, is to penetrate the large So media companies as they go directly to consumers. We are seeing this phenomena today. It's happening with the big guys, but we're also targeting midsized media companies as they are moving forward and providing direct customer experience As they're launching their brand to consumers, and we are hoping to see that part evolving as well from our point of view. Now COVID has put obviously some challenges on everyone producing content these days, given There is more difficulty in launching new productions and new content into the market.
But we believe that this will be Thank you.
Thank you. And I'm not showing any further questions at this time, I would now like to turn the call back over to Matthew Smith for any further remarks.
Yes. Thank you very much, Thank you, everyone, for joining our call this evening and for your interest in Amdocs. We look forward to hearing from you in the coming days. If you do have any additional questions, please call us in the Investor Relations group. And with that, have a great evening, and we'll finish the call.
Thanks.
Are in the line.
Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.