Accenture Reports Third-Quarter Fiscal 2024 Results
Accenture (NYSE: ACN) reported its third-quarter fiscal 2024 results, revealing new bookings of $21.1 billion, up 22% in U.S. dollars and 26% in local currency. Revenues were $16.5 billion, slightly down by 1% in U.S. dollars but up by 1.4% in local currency. GAAP operating margin increased to 16.0%, and GAAP EPS decreased by 3% to $3.04. Adjusted EPS similarly decreased by 2% to $3.13.
Generative AI bookings reached $900 million, totaling $2 billion year-to-date. Despite the overall revenue decrease, managed services saw a 2% increase in U.S. dollars and 4% in local currency. Consulting revenues were down by 3% in U.S. dollars and 1% in local currency.
Accenture's business outlook for fiscal 2024 expects revenue growth between 1.5% and 2.5% in local currency with adjusted EPS forecasted between $11.85 and $12.00.
- New bookings of $21.1 billion, a 22% increase in U.S. dollars.
- Generative AI bookings reached $900 million.
- Managed services revenues increased by 2% in U.S. dollars.
- GAAP operating margin increased to 16.0%.
- Revenues decreased by 1% in U.S. dollars.
- GAAP EPS decreased by 3% to $3.04.
- Consulting revenues decreased by 3% in U.S. dollars.
- Adjusted EPS decreased by 2% to $3.13.
-
New bookings of
$21.1 billion 22% inU.S. dollars and26% in local currency -
Generative AI new bookings of over
$900 million $2 billion -
Revenues of
$16.5 billion 1% inU.S. dollars and increase of1.4% in local currency, with consulting revenues of$8.5 billion $8.0 billion -
GAAP operating margin of
16.0% , an increase of 180 basis points over the third quarter of fiscal 2023; adjusted1 operating margin of16.4% , an expansion of 10 basis points -
GAAP EPS of
$3.04 3% from the third quarter of fiscal 2023; adjusted EPS of$3.13 2% decrease -
Quarterly cash dividend of
$1.29 15% -
Accenture updates business outlook for fiscal 2024; now expects full-year revenue growth of
1.5% to2.5% in local currency, full-year foreign-exchange impact of negative0.7% , GAAP EPS of$11.29 $11.44 $11.85 $12.00 14.8% , adjusted operating margin of15.5% and free cash flow of$8.7 billion $9.3 billion
3QFY24 Earnings Infographic (Graphic: Business Wire)
Julie Sweet, chair and CEO, Accenture, said, “Our actions to stay laser-focused on the needs of our clients are clear in our third quarter results. We achieved strong new bookings of over
Revenues were
GAAP operating income was
1Adjusted financial measures presented in this release are non-GAAP financial measures that exclude business optimization costs recorded in fiscal 2024 and fiscal 2023, and a gain related to our investment in Duck Creek Technologies recorded in fiscal 2023, as further described in this release.
GAAP diluted earnings per share were
New bookings for the quarter were
Financial Review
Revenues for the third quarter of fiscal 2024 were
Revenues for the quarter reflect a foreign-exchange impact of approximately negative
-
Consulting revenues for the quarter were
$8.46 billion 3% inU.S. dollars and1% in local currency compared with the third quarter of fiscal 2023.
-
Managed Services revenues for the quarter were
$8.01 billion 2% inU.S. dollars and4% in local currency compared with the third quarter of fiscal 2023.
GAAP diluted EPS for the quarter were
-
a
$ 0.07
-
a
$ 0.01
partially offset by
-
a
$ 0.02
Gross margin (gross profit as a percentage of revenues) for the quarter was
GAAP operating income for the quarter increased
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 43 days at May 31, 2024, compared with 42 days at both August 31, 2023 and May 31, 2023.
Accenture’s total cash balance at May 31, 2024 was
New Bookings
New bookings for the third quarter of fiscal 2024 were
-
Consulting new bookings were
$9.28 billion 44% of total new bookings.
-
Managed Services new bookings were
$11.78 billion 56% of total new bookings.
Revenues by Geographic Market2
Revenues by geographic market were as follows:
-
North America :$7.83 billion 1% in bothU.S. dollars and local currency compared with the third quarter of fiscal 2023.
-
EMEA:
$5.78 billion 2% in bothU.S. dollars and local currency compared with the third quarter of fiscal 2023.
-
Growth Markets:
$2.86 billion 4% inU.S. dollars and an increase of8% in local currency compared with the third quarter of fiscal 2023.
Revenues by Industry Group
Revenues by industry group were as follows:
-
Communications, Media & Technology:
$2.76 billion 4% inU.S. dollars and1% in local currency compared with the third quarter of fiscal 2023.
-
Financial Services:
$2.89 billion 8% inU.S. dollars and5% in local currency compared with the third quarter of fiscal 2023.
-
Health & Public Service:
$3.52 billion 8% inU.S. dollars and9% in local currency compared with the third quarter of fiscal 2023.
-
Products:
$4.98 billion U.S. dollars and an increase of2% in local currency compared with the third quarter of fiscal 2023.
-
Resources:
$2.31 billion U.S. dollars and an increase of3% in local currency compared with the third quarter of fiscal 2023.
2Effective September 1, 2023, we revised the reporting of our geographic markets for the movement of our
Returning Cash to Shareholders
Accenture continues to return cash to shareholders through cash dividends and share repurchases.
Dividend
On May 15, 2024, a quarterly cash dividend of
Accenture plc has declared another quarterly cash dividend of
Share Repurchase Activity
During the third quarter of fiscal 2024, Accenture repurchased or redeemed 4.3 million shares for a total of
Accenture’s total remaining share repurchase authority at May 31, 2024 was approximately
At May 31, 2024, Accenture had approximately 627 million total shares outstanding.
Business Outlook
Fourth Quarter Fiscal 2024
Accenture expects revenues for the fourth quarter of fiscal 2024 to be in the range of
Fiscal Year 2024
Accenture’s business outlook for fiscal 2024 now assumes that the foreign-exchange impact on its results in
For fiscal 2024, the company now expects revenue growth to be in the range of
Accenture continues to expect GAAP operating margin for fiscal 2024 to be
The company now 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 now expects GAAP diluted EPS to be in the range of
For fiscal 2024, the company continues to expect operating cash flow to be in the range of
The company continues to expect to return at least
360° Value Reporting
Accenture’s goal is to create 360° value for our clients, people, shareholders, partners and communities. Our reporting captures how we deliver unique value across six vital dimensions and offers a comprehensive view of our financial and environmental, social and governance (ESG) measures, and our goals, progress and performance for each. Our full 360° Value Report and online 360° Value Reporting Experience provide customizable reporting. To access, please visit the Accenture 360° Value Reporting Experience at 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 third quarter of fiscal 2024 financial results. To participate in the teleconference, please dial +1 (877) 692-8955 [or +1 (234) 720-6979 outside the
A replay of the conference call will be available at www.accenture.com and at +1 (866) 207-1041 [or +1 (402) 970-0847 outside the
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 750,000 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 and leadership in cloud, data and AI 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 Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients reinvent 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; 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) |
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Three Months Ended |
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Nine Months Ended |
||||||||||||||||||||||||
|
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May 31, 2024 |
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% of
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May 31, 2023 |
|
% of
|
|
May 31, 2024 |
|
% of
|
|
May 31, 2023 |
|
% of
|
||||||||||||
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues |
|
$ |
16,466,828 |
|
|
100.0 |
% |
|
$ |
16,564,585 |
|
|
100.0 |
% |
|
$ |
48,490,645 |
|
|
100.0 |
% |
|
$ |
48,126,545 |
|
|
100.0 |
% |
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of services |
|
|
10,968,377 |
|
|
66.6 |
% |
|
|
11,035,515 |
|
|
66.6 |
% |
|
|
32,665,784 |
|
|
67.4 |
% |
|
|
32,576,567 |
|
|
67.7 |
% |
Sales and marketing |
|
|
1,750,366 |
|
|
10.6 |
% |
|
|
1,738,621 |
|
|
10.5 |
% |
|
|
5,091,442 |
|
|
10.5 |
% |
|
|
4,852,207 |
|
|
10.1 |
% |
General and administrative costs |
|
|
1,039,800 |
|
|
6.3 |
% |
|
|
1,084,288 |
|
|
6.5 |
% |
|
|
3,158,747 |
|
|
6.5 |
% |
|
|
3,209,539 |
|
|
6.7 |
% |
Business optimization costs |
|
|
77,420 |
|
|
0.5 |
% |
|
|
346,873 |
|
|
2.1 |
% |
|
|
332,493 |
|
|
0.7 |
% |
|
|
591,263 |
|
|
1.2 |
% |
Total operating expenses |
|
|
13,835,963 |
|
|
|
|
|
14,205,297 |
|
|
|
|
|
41,248,466 |
|
|
|
|
|
41,229,576 |
|
|
|
||||
OPERATING INCOME |
|
|
2,630,865 |
|
|
16.0 |
% |
|
|
2,359,288 |
|
|
14.2 |
% |
|
|
7,242,179 |
|
|
14.9 |
% |
|
|
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FAQ
What were Accenture's new bookings in Q3 FY 2024?
Accenture reported new bookings of $21.1 billion in Q3 FY 2024, a 22% increase in U.S. dollars.
What was Accenture's revenue for Q3 FY 2024?
Accenture reported revenues of $16.5 billion for Q3 FY 2024, a 1% decrease in U.S. dollars.
How did Accenture's managed services perform in Q3 FY 2024?
Managed services revenues increased by 2% in U.S. dollars and 4% in local currency in Q3 FY 2024.
What was Accenture's GAAP EPS for Q3 FY 2024?
Accenture's GAAP EPS for Q3 FY 2024 was $3.04, a 3% decrease from the previous year.
What is Accenture's fiscal 2024 revenue growth outlook?
Accenture expects fiscal 2024 revenue growth to be between 1.5% and 2.5% in local currency.
What was the total generative AI booking for Accenture in fiscal 2024 year-to-date?
Accenture's generative AI bookings totaled $2 billion in fiscal 2024 year-to-date.
What is Accenture's forecasted adjusted EPS for fiscal 2024?
Accenture's forecasted adjusted EPS for fiscal 2024 is expected to be between $11.85 and $12.00.
Accenture plc
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