Accenture Reports Fourth-Quarter and Strong Full-Year Fiscal 2023 Results
- Q4 revenues increased by 4% in both USD and local currency. Adjusted operating margin expanded by 20 basis points. Adjusted EPS increased by 4%. Full-year revenues increased by 4% in USD and 8% in local currency. Adjusted operating margin expanded by 20 basis points. Adjusted EPS increased by 9%. New bookings increased by 1% in USD and 5% in local currency over fiscal 2022. Accenture expects revenue growth of 2% to 5% in local currency for fiscal year 2024.
- None.
-- For the fourth quarter, revenues are
-- For full fiscal year, revenues are
-- For the fourth quarter, GAAP EPS are
-- Free cash flow is
-- New bookings are
--
-- For fiscal year 2024, Accenture expects revenue growth of
4QFY23 Earnings Infographic (Graphic: Business Wire)
For the fourth quarter, revenues were
For the full fiscal year, revenues were
1Adjusted financial measures presented in this release are non-GAAP financial measures that exclude business optimization costs and a gain related to our investment in Duck Creek Technologies, as further described in this release. |
Julie Sweet, chair and CEO, Accenture, said, “I am extremely proud that we have achieved another strong year of financial performance in fiscal year 2023. Our ability to remain laser-focused on meeting the needs of our clients is reflected in new bookings of
Financial Review
Fourth Quarter Fiscal 2023
Revenues for the fourth quarter of fiscal 2023 were
-
Consulting revenues were
$8.20 billion 2% in bothU.S. dollars and local currency compared with the fourth quarter of fiscal 2022. -
Managed Services revenues were
$7.79 billion 10% in bothU.S. dollars and local currency compared with the fourth quarter of fiscal 2022.
GAAP diluted EPS for the quarter were
-
a
$0.14 -
a
$0.08 -
a
$0.01
partially offset by
-
a
$0.11 -
a
$0.01
Gross margin (gross profit as a percentage of revenues) for the fourth quarter was
GAAP operating income for the quarter decreased
The company's GAAP effective tax rate for the quarter was
GAAP net income for the quarter was
Operating cash flow for the quarter was
Days services outstanding, or DSOs, were 42 days at August 31, 2023, compared with 43 days at August 31, 2022.
Accenture’s total cash balance at August 31, 2023 was
New Bookings
New bookings for the fourth quarter of fiscal 2023 were
-
Consulting new bookings were
$8.5 billion 51% of total new bookings. -
Managed Services new bookings were
$8.2 billion 49% of total new bookings.
Revenues by Geographic Market
Revenues by geographic market were as follows:
-
North America :$7.55 billion U.S. dollars and an increase of1% in local currency compared with the fourth quarter of fiscal 2022. -
Europe :$5.30 billion 10% inU.S. dollars and7% in local currency compared with the fourth quarter of fiscal 2022. -
Growth Markets:
$3.13 billion 1% inU.S. dollars and6% in local currency compared with the fourth quarter of fiscal 2022.
Revenues by Industry Group
Revenues by industry group were as follows:
-
Communications, Media & Technology:
$2.71 billion 12% in bothU.S. dollars and local currency compared with the fourth quarter of fiscal 2022. -
Financial Services:
$3.03 billion 3% in bothU.S. dollars and local currency compared with the fourth quarter of fiscal 2022. -
Health & Public Service:
$3.27 billion 13% in bothU.S. dollars and local currency compared with the fourth quarter of fiscal 2022. -
Products:
$4.75 billion 6% inU.S. dollars and5% in local currency compared with the fourth quarter of fiscal 2022. -
Resources:
$2.23 billion 10% in bothU.S. dollars and local currency compared with the fourth quarter of fiscal 2022.
Full Year Fiscal 2023
Revenues for fiscal 2023 were
-
Consulting revenues were
$33.61 billion 1% inU.S. dollars and an increase of3% in local currency compared with fiscal 2022. -
Managed Services revenues were
$30.50 billion 11% inU.S. dollars and14% in local currency compared with fiscal 2022.
GAAP diluted EPS for fiscal 2023 were
-
a
$0.60 -
a
$0.18 -
a
$0.15 Russia recorded in fiscal 2022; and -
a
$0.08
partially offset by
-
a
$0.03 -
a
$0.02
Gross margin (gross profit as a percentage of revenues) for fiscal 2023 was
GAAP Operating income for fiscal 2023 decreased
The company's GAAP annual effective tax rate for fiscal 2023 was
GAAP net income for the full fiscal year was
For fiscal 2023, operating cash flow was
New Bookings
New bookings for fiscal 2023 were
-
Consulting new bookings were
$36.2 billion 50% of total new bookings. -
Managed Services new bookings were
$36.0 billion 50% of total new bookings.
Revenues by Geographic Market
Revenues by geographic market for fiscal 2023 were as follows:
-
North America :$30.30 billion 4% in bothU.S. dollars and local currency compared with fiscal 2022. -
Europe :$21.29 billion 5% inU.S. dollars and11% in local currency compared with fiscal 2022. -
Growth Markets:
$12.53 billion 3% inU.S. dollars and12% in local currency compared with fiscal 2022.
Revenues by Industry Group
Revenues by industry group for fiscal 2023 were as follows:
-
Communications, Media & Technology:
$11.45 billion 6% inU.S. dollars and3% in local currency compared with fiscal 2022. -
Financial Services:
$12.13 billion 3% inU.S. dollars and7% in local currency compared with fiscal 2022. -
Health & Public Service:
$12.56 billion 12% inU.S. dollars and14% in local currency compared with fiscal 2022. -
Products:
$19.10 billion 5% inU.S. dollars and9% in local currency compared with fiscal 2022. -
Resources:
$8.86 billion 10% inU.S. dollars and15% in local currency compared with fiscal 2022.
Returning Cash to Shareholders
Accenture continues to return cash to shareholders through cash dividends and share repurchases. In fiscal 2023, the company returned
Dividend
On August 15, 2023, a quarterly cash dividend of
Accenture plc has declared a quarterly cash dividend of
Share Repurchase Activity
During the fourth quarter of fiscal 2023, Accenture repurchased or redeemed 3.2 million shares, including 3.1 million shares repurchased in the open market, for a total of
The company’s Board of Directors has approved
At August 31, 2023, Accenture had approximately 629 million total shares outstanding.
Business Outlook
First Quarter Fiscal 2024
Accenture expects revenues for the first quarter of fiscal 2024 to be in the range of
Fiscal Year 2024
Accenture’s business outlook for the full 2024 fiscal year assumes that the foreign-exchange impact on its results in
The company expects both its GAAP and adjusted annual effective tax rate, which excludes the tax impacts of business optimization costs, to be in the range of
The company expects GAAP diluted EPS to be in the range of
For fiscal 2024, the company expects operating cash flow to be in the range of
The company expects to return at least
360° Value Reporting
Accenture’s goal is to create 360° value for our clients, people, shareholders, partners, and communities. To enhance transparency and provide a comprehensive view for all stakeholders, we have combined our financial and environmental, social and governance (ESG) reporting into a digital-first experience. To access our goals, progress and performance, please visit the Accenture 360° Value Reporting Experience (www.accenture.com/reportingexperience).
Conference Call and Webcast Details
Accenture will host a conference call at 8:00 a.m. EDT today to discuss its fourth-quarter and fiscal 2023 financial results. To participate, please dial +1 (877) 692-8955 [+1 (234) 720-6979 outside
A replay of the conference call will be available at www.accenture.com beginning at 11:00 a.m. EDT today, September 28, and continuing through Monday, December 18, 2023. The replay will also be available via telephone by dialing +1 (866) 207-1041 [+1 (402) 970-0847 outside
About Accenture
Accenture is a leading global professional services company that helps the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale. We are a talent and innovation led company with 733,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world’s leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology with unmatched industry experience, functional expertise and global delivery capability. We are uniquely able to deliver tangible outcomes because of our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Accenture Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients succeed and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our shareholders, partners and communities. Visit us at www.accenture.com.
Non-GAAP Financial Information
This news release includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to Accenture’s financial statements as prepared under generally accepted accounting principles (GAAP) are included in this press release. Financial results “in local currency” are calculated by restating current-period activity into
Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target,” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, risks that: Accenture’s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; Accenture’s environmental, social and governance (ESG) commitments and disclosures may expose it to reputational risks and legal liability; if Accenture does not successfully manage and develop its relationships with key ecosystem partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; as a result of Accenture’s geographically diverse operations and strategy to continue to grow in key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture may be subject to criticism and negative publicity related to its incorporation in
Accenture plc Consolidated Income Statements
(In thousands of (Unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||
|
|
August 31,
|
|
% of
|
|
August 31,
|
|
% of
|
|
August 31,
|
|
% of
|
|
August 31,
|
|
% of
|
||||||||||||
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues |
|
$ |
15,985,200 |
|
|
100.0 |
% |
|
$ |
15,423,656 |
|
|
100.0 |
% |
|
$ |
64,111,745 |
|
|
100.0 |
% |
|
$ |
61,594,305 |
|
|
100.0 |
% |
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of services |
|
|
10,803,571 |
|
|
67.6 |
% |
|
|
10,477,599 |
|
|
67.9 |
% |
|
|
43,380,138 |
|
|
67.7 |
% |
|
|
41,892,766 |
|
|
68.0 |
% |
Sales and marketing |
|
|
1,730,422 |
|
|
10.8 |
% |
|
|
1,578,243 |
|
|
10.2 |
% |
|
|
6,582,629 |
|
|
10.3 |
% |
|
|
6,108,401 |
|
|
9.9 |
% |
General and administrative costs |
|
|
1,066,404 |
|
|
6.7 |
% |
|
|
1,099,625 |
|
|
7.1 |
% |
|
|
4,275,943 |
|
|
6.7 |
% |
|
|
4,225,957 |
|
|
6.9 |
% |
Business optimization costs |
|
|
471,883 |
|
|
3.0 |
% |
|
|
— |
|
|
— |
% |
|
|
1,063,146 |
|
|
1.7 |
% |
|
|
— |
|
|
— |
% |
Total operating expenses |
|
|
14,072,280 |
|
|
|
|
|
13,155,467 |
|
|
|
|
|
55,301,856 |
|
|
|
|
|
52,227,124 |
|
|
|
||||
OPERATING INCOME |
|
|
1,912,920 |
|
|
12.0 |
% |
|
|
2,268,189 |
|
|
14.7 |
% |
|
|
8,809,889 |
|
|
13.7 |
% |
|
|
9,367,181 |
|
|
15.2 |
% |
Interest income |
|
|
103,627 |
|
|
|
|
|
23,087 |
|
|
|
|
|
280,409 |
|
|
|
|
|
45,133 |
|
|
|
||||
Interest expense |
|
|
(17,403 |
) |
|
|
|
|
(12,871 |
) |
|
|
|
|
(47,525 |
) |
|
|
|
|
(47,320 |
) |
|
|
||||
Other (expense) income, net |
|
|
(40,017 |
) |
|
|
|
|
(33,444 |
) |
|
|
|
|
96,559 |
|
|
|
|
|
(72,533 |
) |
|
|
||||
Loss on disposition of |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(96,294 |
) |
|
|
||||
INCOME BEFORE INCOME TAXES |
|
|
1,959,127 |
|
|
12.3 |
% |
|
|
2,244,961 |
|
|
14.6 |
% |
|
|
9,139,332 |
|
|
14.3 |
% |
|
|
9,196,167 |
|
|
14.9 |
% |
Income tax expense |
|
|
550,915 |
|
|
|
|
|
552,576 |
|
|
|
|
|
2,135,802 |
|
|
|
|
|
2,207,207 |
|
|
|
||||
NET INCOME |
|
|
1,408,212 |
|
|
8.8 |
% |
|
|
1,692,385 |
|
|
11.0 |
% |
|
|
7,003,530 |
|
|
10.9 |
% |
|
|
6,988,960 |
|
|
11.3 |
% |
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. |
|
|
(1,414 |
) |
|
|
|
|
(1,770 |
) |
|
|
|
|
(7,204 |
) |
|
|
|
|
(7,348 |
) |
|
|
||||
Net income attributable to noncontrolling interests – other (1) |
|
|
(33,835 |
) |
|
|
|
|
(25,487 |
) |
|
|
|
|
(124,769 |
) |
|
|
|
|
(104,443 |
) |
|
|
||||
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC |
|
$ |
1,372,963 |
|
|
8.6 |
% |
|
$ |
1,665,128 |
|
|
10.8 |
% |
|
$ |
6,871,557 |
|
|
10.7 |
% |
|
$ |
6,877,169 |
|
|
11.2 |
% |
CALCULATION OF EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income attributable to Accenture plc |
|
$ |
1,372,963 |
|
|
|
|
$ |
1,665,128 |
|
|
|
|
$ |
6,871,557 |
|
|
|
|
$ |
6,877,169 |
|
|
|
||||
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (2) |
|
|
1,414 |
|
|
|
|
|
1,770 |
|
|
|
|
|
7,204 |
|
|
|
|
|
7,348 |
|
|
|
||||
Net income for diluted earnings per share calculation |
|
$ |
1,374,377 |
|
|
|
|
$ |
1,666,898 |
|
|
|
|
$ |
6,878,761 |
|
|
|
|
$ |
6,884,517 |
|
|
|
||||
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
$ |
2.18 |
|
|
|
|
$ |
2.63 |
|
|
|
|
$ |
10.90 |
|
|
|
|
$ |
10.87 |
|
|
|
||||
Diluted |
|
$ |
2.15 |
|
|
|
|
$ |
2.60 |
|
|
|
|
$ |
10.77 |
|
|
|
|
$ |
10.71 |
|
|
|
||||
WEIGHTED AVERAGE SHARES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
|
629,922,331 |
|
|
|
|
|
632,095,422 |
|
|
|
|
|
630,608,186 |
|
|
|
|
|
632,762,710 |
|
|
|
||||
Diluted |
|
|
639,249,070 |
|
|
|
|
|
640,914,760 |
|
|
|
|
|
638,591,616 |
|
|
|
|
|
642,839,181 |
|
|
|
||||
Cash dividends per share |
|
$ |
1.12 |
|
|
|
|
$ |
0.97 |
|
|
|
|
$ |
4.48 |
|
|
|
|
$ |
3.88 |
|
|
|
||||
(1) |
Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of Avanade, Inc. |
|
(2) |
Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. The income effect does not take into account “Net income attributable to noncontrolling interests — other,” since those shares are not redeemable or exchangeable for Accenture plc Class A ordinary shares. |
|
Accenture plc Summary of Revenues
(In thousands of (Unaudited) |
||||||||||
|
|
Three Months Ended |
|
Percent
|
|
Percent
|
||||
|
|
August 31, 2023 |
|
August 31, 2022 |
|
|
||||
GEOGRAPHIC MARKETS |
|
|
|
|
|
|
|
|
||
|
|
$ |
7,553,990 |
|
$ |
7,523,505 |
|
—% |
|
|
|
|
|
5,297,437 |
|
|
4,803,237 |
|
10 |
|
7 |
Growth Markets |
|
|
3,133,773 |
|
|
3,096,914 |
|
1 |
|
6 |
Total Revenues |
|
$ |
15,985,200 |
|
$ |
15,423,656 |
|
|
|
|
INDUSTRY GROUPS |
|
|
|
|
|
|
|
|
||
Communications, Media & Technology |
|
$ |
2,707,722 |
|
$ |
3,081,007 |
|
(12)% |
|
(12)% |
Financial Services |
|
|
3,027,087 |
|
|
2,941,286 |
|
3 |
|
3 |
Health & Public Service |
|
|
3,270,497 |
|
|
2,892,549 |
|
13 |
|
13 |
Products |
|
|
4,751,133 |
|
|
4,478,375 |
|
6 |
|
5 |
Resources |
|
|
2,228,761 |
|
|
2,030,439 |
|
10 |
|
10 |
Total Revenues |
|
$ |
15,985,200 |
|
$ |
15,423,656 |
|
|
|
|
TYPE OF WORK |
|
|
|
|
|
|
|
|
||
Consulting |
|
$ |
8,196,848 |
|
$ |
8,328,761 |
|
(2)% |
|
(2)% |
Managed Services (1) |
|
|
7,788,352 |
|
|
7,094,895 |
|
10 |
|
10 |
Total Revenues |
|
$ |
15,985,200 |
|
$ |
15,423,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Year Ended |
|
Percent
|
|
Percent
|
||||
|
|
August 31, 2023 |
|
August 31, 2022 |
|
|
||||
GEOGRAPHIC MARKETS |
|
|
|
|
|
|
|
|
||
|
|
$ |
30,295,587 |
|
$ |
29,121,385 |
|
|
|
|
|
|
|
21,285,122 |
|
|
20,263,550 |
|
5 |
|
11 |
Growth Markets |
|
|
12,531,036 |
|
|
12,209,370 |
|
3 |
|
12 |
Total Revenues |
|
$ |
64,111,745 |
|
$ |
61,594,305 |
|
|
|
|
INDUSTRY GROUPS |
|
|
|
|
|
|
|
|
||
Communications, Media & Technology |
|
$ |
11,452,914 |
|
$ |
12,199,797 |
|
(6)% |
|
(3)% |
Financial Services |
|
|
12,131,531 |
|
|
11,810,582 |
|
3 |
|
7 |
Health & Public Service |
|
|
12,560,458 |
|
|
11,226,464 |
|
12 |
|
14 |
Products |
|
|
19,103,892 |
|
|
18,275,419 |
|
5 |
|
9 |
Resources |
|
|
8,862,950 |
|
|
8,082,043 |
|
10 |
|
15 |
Total Revenues |
|
$ |
64,111,745 |
|
$ |
61,594,305 |
|
|
|
|
TYPE OF WORK |
|
|
|
|
|
|
|
|
||
Consulting |
|
$ |
33,613,008 |
|
$ |
34,075,856 |
|
(1)% |
|
|
Managed Services (1) |
|
|
30,498,737 |
|
|
27,518,449 |
|
11 |
|
14 |
Total Revenues |
|
$ |
64,111,745 |
|
$ |
61,594,305 |
|
|
|
|
(1) |
Previously referred to as our outsourcing business. |
|
Accenture plc Operating Income by Geographic Market
(In thousands of (Unaudited) |
||||||||||||||||
|
Three Months Ended |
|
|
|||||||||||||
|
August 31, 2023 |
|
August 31, 2022 |
|
|
|||||||||||
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Increase
|
|||||||
|
$ |
1,098,715 |
|
15 |
% |
|
$ |
1,261,735 |
|
17 |
% |
|
$ |
(163,020 |
) |
|
|
|
437,498 |
|
8 |
|
|
|
467,316 |
|
10 |
|
|
|
(29,818 |
) |
|
Growth Markets |
|
376,707 |
|
12 |
|
|
|
539,138 |
|
17 |
|
|
|
(162,431 |
) |
|
Total Operating Income |
$ |
1,912,920 |
|
12.0 |
% |
|
$ |
2,268,189 |
|
14.7 |
% |
|
$ |
(355,269 |
) |
|
|
Year Ended |
|
|
|||||||||||||
|
August 31, 2023 |
|
August 31, 2022 |
|
|
|||||||||||
|
Operating
|
|
Operating
|
|
Operating
|
|
Operating
|
|
Increase
|
|||||||
|
$ |
4,473,701 |
|
15 |
% |
|
$ |
4,976,890 |
|
17 |
% |
|
$ |
(503,189 |
) |
|
|
|
2,332,678 |
|
11 |
|
|
|
2,437,313 |
|
12 |
|
|
|
(104,635 |
) |
|
Growth Markets |
|
2,003,510 |
|
16 |
|
|
|
1,952,978 |
|
16 |
|
|
|
50,532 |
|
|
Total Operating Income |
$ |
8,809,889 |
|
13.7 |
% |
|
$ |
9,367,181 |
|
15.2 |
% |
|
$ |
(557,292 |
) |
|
Accenture plc Reconciliation of Operating Income (GAAP) to Operating Income As Adjusted (Non-GAAP)
(In thousands of (Unaudited) |
||||||||||||||||||||||
|
Three Months Ended |
|
|
|||||||||||||||||||
|
August 31, 2023 |
|
August 31, 2022 |
|
|
|||||||||||||||||
|
As Reported
|
|
Business
|
|
Adjusted
|
|
Operating
|
|
As Reported
|
|
Operating
|
|
Increase
|
|||||||||
|
$ |
1,098,715 |
|
$ |
191,550 |
|
$ |
1,290,265 |
|
17 |
% |
|
$ |
1,261,735 |
|
17 |
% |
|
$ |
28,530 |
|
|
|
|
437,498 |
|
|
226,013 |
|
|
663,511 |
|
13 |
|
|
|
467,316 |
|
10 |
|
|
|
196,195 |
|
|
Growth Markets |
|
376,707 |
|
|
54,320 |
|
|
431,027 |
|
14 |
|
|
|
539,138 |
|
17 |
|
|
|
(108,111 |
) |
|
Total Operating Income |
$ |
1,912,920 |
|
$ |
471,883 |
|
$ |
2,384,803 |
|
14.9 |
% |
|
$ |
2,268,189 |
|
14.7 |
% |
|
$ |
116,614 |
|
|
|
Year Ended |
|
|
|||||||||||||||||||
|
August 31, 2023 |
|
August 31, 2022 |
|
|
|||||||||||||||||
|
As Reported
|
|
Business
|
|
Adjusted
|
|
Operating
|
|
As Reported
|
|
Operating
|
|
Increase
|
|||||||||
|
$ |
4,473,701 |
|
$ |
464,879 |
|
$ |
4,938,580 |
|
16 |
% |
|
$ |
4,976,890 |
|
17 |
% |
|
$ |
(38,310 |
) |
|
|
|
2,332,678 |
|
|
432,853 |
|
|
2,765,531 |
|
13 |
|
|
|
2,437,313 |
|
12 |
|
|
|
328,218 |
|
|
Growth Markets |
|
2,003,510 |
|
|
165,414 |
|
|
2,168,924 |
|
17 |
|
|
|
1,952,978 |
|
16 |
|
|
|
215,946 |
|
|
Total Operating Income |
$ |
8,809,889 |
|
$ |
1,063,146 |
|
$ |
9,873,035 |
|
15.4 |
% |
|
$ |
9,367,181 |
|
15.2 |
% |
|
$ |
505,854 |
|
|
(1) |
Costs recorded in connection with our business optimization initiatives, primarily for employee severance. |
|
Accenture plc Reconciliation of Net Income and Diluted Earnings Per Share, as Reported (GAAP), to Net Income and Diluted Earnings Per Share, as Adjusted (Non-GAAP)
(In thousands of (Unaudited) |
||||||||||||||||
|
Three Months Ended |
|||||||||||||||
|
August 31, 2023 |
|
August 31, 2022 |
|||||||||||||
|
As Reported
|
Business
|
Adjusted
|
|
As Reported
|
|||||||||||
Operating Income |
$ |
1,912,920 |
|
$ |
471,883 |
|
$ |
2,384,803 |
|
|
$ |
2,268,189 |
|
|||
Operating Margin |
|
12.0 |
% |
|
2.9 |
% |
|
14.9 |
% |
|
|
14.7 |
% |
|||
|
|
|
|
|
|
|||||||||||
Income before income taxes |
|
1,959,127 |
|
|
471,883 |
|
|
2,431,010 |
|
|
|
2,244,961 |
|
|||
Income tax expense |
|
550,915 |
|
|
115,514 |
|
|
666,429 |
|
|
|
552,576 |
|
|||
Net Income |
$ |
1,408,212 |
|
$ |
356,369 |
|
$ |
1,764,581 |
|
|
$ |
1,692,385 |
|
|||
Effective tax rate |
|
28.1 |
% |
|
24.5 |
% |
|
27.4 |
% |
|
|
24.6 |
% |
|||
Diluted earnings per share |
$ |
2.15 |
|
$ |
0.56 |
|
$ |
2.71 |
|
|
$ |
2.60 |
|
|||
|
Year Ended |
|||||||||||||||||||
|
August 31, 2023 |
|
August 31, 2022 |
|||||||||||||||||
|
As Reported
|
Business
|
Investment
|
Adjusted
|
|
As Reported
|
||||||||||||||
Operating Income |
$ |
8,809,889 |
|
$ |
1,063,146 |
|
$ |
— |
|
$ |
9,873,035 |
|
|
$ |
9,367,181 |
|
||||
Operating Margin |
|
13.7 |
% |
|
1.7 |
% |
|
— |
% |
|
15.4 |
% |
|
|
15.2 |
% |
||||
|
|
|
|
|
|
|
||||||||||||||
Income before income taxes |
|
9,139,332 |
|
|
1,063,146 |
|
|
(252,920 |
) |
|
9,949,558 |
|
|
|
9,196,167 |
|
||||
Income tax expense |
|
2,135,802 |
|
|
247,365 |
|
|
(8,840 |
) |
|
2,374,327 |
|
|
|
2,207,207 |
|
||||
Net Income |
$ |
7,003,530 |
|
$ |
815,781 |
|
$ |
(244,080 |
) |
$ |
7,575,231 |
|
|
$ |
6,988,960 |
|
||||
Effective tax rate |
|
23.4 |
% |
|
23.3 |
% |
|
3.5 |
% |
|
23.9 |
% |
|
|
24.0 |
% |
||||
Diluted earnings per share |
$ |
10.77 |
|
$ |
1.28 |
|
$ |
(0.38 |
) |
$ |
11.67 |
|
|
$ |
10.71 |
|
||||
(1) |
Costs recorded in connection with our business optimization initiatives, primarily for employee severance. |
|
(2) |
Gain recognized related to our investment in Duck Creek Technologies. |
|
Accenture plc Consolidated Balance Sheets
(In thousands of |
||||||
|
|
August 31, 2023 |
|
August 31, 2022 |
||
|
|
(Unaudited) |
|
|
||
ASSETS |
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
9,045,032 |
|
$ |
7,889,833 |
Short-term investments |
|
|
4,575 |
|
|
3,973 |
Receivables and contract assets |
|
|
12,227,186 |
|
|
11,776,775 |
Other current assets |
|
|
2,105,138 |
|
|
1,940,290 |
Total current assets |
|
|
23,381,931 |
|
|
21,610,871 |
NON-CURRENT ASSETS: |
|
|
|
|
||
Contract assets |
|
|
106,994 |
|
|
46,844 |
Investments |
|
|
197,443 |
|
|
317,972 |
Property and equipment, net |
|
|
1,530,007 |
|
|
1,659,140 |
Lease assets |
|
|
2,637,479 |
|
|
3,018,535 |
Goodwill |
|
|
15,573,003 |
|
|
13,133,293 |
Other non-current assets |
|
|
7,818,448 |
|
|
7,476,735 |
Total non-current assets |
|
|
27,863,374 |
|
|
25,652,519 |
TOTAL ASSETS |
|
$ |
51,245,305 |
|
$ |
47,263,390 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
||
Current portion of long-term debt and bank borrowings |
|
$ |
104,810 |
|
$ |
9,175 |
Accounts payable |
|
|
2,491,173 |
|
|
2,559,485 |
Deferred revenues |
|
|
4,907,152 |
|
|
4,478,048 |
Accrued payroll and related benefits |
|
|
7,506,030 |
|
|
7,611,794 |
Lease liabilities |
|
|
690,417 |
|
|
707,598 |
Other accrued liabilities |
|
|
2,309,456 |
|
|
2,157,396 |
Total current liabilities |
|
|
18,009,038 |
|
|
17,523,496 |
NON-CURRENT LIABILITIES: |
|
|
|
|
||
Long-term debt |
|
|
43,093 |
|
|
45,893 |
Lease liabilities |
|
|
2,310,714 |
|
|
2,563,090 |
Other non-current liabilities |
|
|
4,423,867 |
|
|
4,383,823 |
Total non-current liabilities |
|
|
6,777,674 |
|
|
6,992,806 |
Total Accenture plc shareholders’ equity |
|
|
25,692,839 |
|
|
22,106,097 |
Noncontrolling interest |
|
|
765,754 |
|
|
640,991 |
Total Shareholders' Equity |
|
|
26,458,593 |
|
|
22,747,088 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
51,245,305 |
|
$ |
47,263,390 |
Accenture plc Consolidated Cash Flows Statements
(In thousands of (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
August 31,
|
|
August 31,
|
|
August 31,
|
|
August 31,
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
1,408,212 |
|
|
$ |
1,692,385 |
|
|
$ |
7,003,530 |
|
|
$ |
6,988,960 |
|
Depreciation, amortization and other |
|
|
641,281 |
|
|
|
534,905 |
|
|
|
2,281,085 |
|
|
|
2,088,216 |
|
Share-based compensation expense |
|
|
383,017 |
|
|
|
360,234 |
|
|
|
1,913,051 |
|
|
|
1,679,789 |
|
Change in assets and liabilities/other, net |
|
|
976,878 |
|
|
|
1,202,586 |
|
|
|
(1,673,398 |
) |
|
|
(1,215,836 |
) |
Net cash provided by (used in) operating activities |
|
|
3,409,388 |
|
|
|
3,790,110 |
|
|
|
9,524,268 |
|
|
|
9,541,129 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
|
(180,294 |
) |
|
|
(177,051 |
) |
|
|
(528,172 |
) |
|
|
(717,998 |
) |
Purchases of businesses and investments, net of cash acquired |
|
|
(1,196,856 |
) |
|
|
(1,235,164 |
) |
|
|
(2,530,863 |
) |
|
|
(3,447,552 |
) |
Proceeds from the sale of businesses and investments, net of cash transferred |
|
|
6,274 |
|
|
|
440 |
|
|
|
424,387 |
|
|
|
(107,659 |
) |
Other investing, net |
|
|
3,786 |
|
|
|
3,183 |
|
|
|
12,178 |
|
|
|
12,580 |
|
Net cash provided by (used in) investing activities |
|
|
(1,367,090 |
) |
|
|
(1,408,592 |
) |
|
|
(2,622,470 |
) |
|
|
(4,260,629 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of ordinary shares |
|
|
156,432 |
|
|
|
149,213 |
|
|
|
1,501,069 |
|
|
|
1,349,064 |
|
Purchases of shares |
|
|
(1,004,553 |
) |
|
|
(605,487 |
) |
|
|
(4,330,403 |
) |
|
|
(4,116,378 |
) |
Cash dividends paid |
|
|
(706,063 |
) |
|
|
(613,730 |
) |
|
|
(2,827,394 |
) |
|
|
(2,457,306 |
) |
Other financing, net |
|
|
73,883 |
|
|
|
(31,408 |
) |
|
|
11,402 |
|
|
|
(86,406 |
) |
Net cash provided by (used in) financing activities |
|
|
(1,480,301 |
) |
|
|
(1,101,412 |
) |
|
|
(5,645,326 |
) |
|
|
(5,311,026 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(52,411 |
) |
|
|
(93,841 |
) |
|
|
(101,273 |
) |
|
|
(247,815 |
) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
|
509,586 |
|
|
|
1,186,265 |
|
|
|
1,155,199 |
|
|
|
(278,341 |
) |
CASH AND CASH EQUIVALENTS, beginning of period |
|
|
8,535,446 |
|
|
|
6,703,568 |
|
|
|
7,889,833 |
|
|
|
8,168,174 |
|
CASH AND CASH EQUIVALENTS, end of period |
|
$ |
9,045,032 |
|
|
$ |
7,889,833 |
|
|
$ |
9,045,032 |
|
|
$ |
7,889,833 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230928981511/en/
Rachel Frey
Accenture Media Relations
+1 917 452 4421
rachel.frey@accenture.com
Katie O’Conor
Accenture Investor Relations
+1 973 301 3275
catherine.m.oconor@accenture.com
Source: Accenture
