Roper Technologies announces 2023 financial results
- Revenue increased by 13% to $1.61 billion in Q4 and 15% to $6.18 billion for the full year 2023
- Adjusted DEPS increased by 11% in Q4 and 17% for the full year
- Roper expects adjusted DEPS of $17.85 - $18.15 for 2024, with a first quarter range of $4.30 - $4.34
- Total revenue growth of +11 – 12% and organic revenue growth of +5 – 6% expected for 2024
- Acquisition of Procare Solutions, a leading software provider for the childcare market
- None.
Insights
The reported financial results of Roper Technologies indicate a robust performance with significant increases in various financial metrics. A 13% rise in quarterly revenue and a 15% increase for the full year suggest strong sales execution. The organic revenue growth of 8% reflects the company's ability to expand its business without relying solely on acquisitions. Moreover, the GAAP DEPS growth of 51% for the quarter and 38% for the year is exceptional, surpassing typical market averages, which often hover around single-digit to low double-digit growth rates.
Adjusted EBITDA growth of 11% and 16% respectively for the quarter and full year, coupled with a 32% free cash flow margin, demonstrate operational efficiency and a healthy cash position. These metrics are critical for assessing a company's ability to sustain and invest in future growth. The capital deployment strategy, with $2.1 billion allocated towards vertical software acquisitions, notably Syntellis Performance Solutions, indicates a strategic focus on expanding the high-margin software segment. The acquisition of Procare Solutions is expected to further bolster this approach.
Investors would be keen on the projected 11-12% total revenue growth and 5-6% organic revenue growth for 2024, as these suggest continued momentum. However, it is important to consider that guidance excludes the impact of unannounced future acquisitions or divestitures, which could materially affect the company's performance.
Roper Technologies' sector focus and acquisition strategy are worth noting. The company's emphasis on vertical software acquisitions, such as the integration with Syntellis Performance Solutions and the pending acquisition of Procare Solutions, align with broader market trends favoring software-as-a-service (SaaS) models. These models promise recurring revenue and scalability, which are attractive in today's market. The childcare market, targeted through the Procare Solutions acquisition, represents a niche yet growing segment that could offer untapped potential for growth.
The minority interests in Indicor and Certinia reflect a strategic shift to divest from non-core areas while retaining stakes in potentially high-growth companies. This can diversify income sources and mitigate risks associated with full ownership. The non-GAAP adjustments related to these investments provide a clearer picture of the company's operational performance by excluding irregular items and potential volatility from minority stake valuations.
Attention should also be given to Roper's free cash flow margin, which is a critical indicator of the company's ability to generate cash after funding operations and capital expenditures. A high margin suggests strong profitability and operational efficiency, enabling the company to invest in growth, pay dividends, or repurchase shares.
The financial report's use of non-GAAP measures requires careful examination. While these measures can offer deeper insights into a company's operational health by excluding one-time or non-operational costs, they are not standardized and can vary widely between companies. Investors and analysts should review the reconciliations provided to understand the adjustments made and their justification.
Legal and regulatory scrutiny of non-GAAP measures has increased, emphasizing the need for transparency in their calculation and presentation. Companies must ensure that their use of non-GAAP measures does not mislead investors and complies with regulations set by governing bodies such as the SEC. Roper Technologies' detailed reconciliation tables aid in maintaining this transparency.
The report's mention of a legal settlement charge in the adjusted EBITDA reconciliation table for the previous year and the absence of such a charge in the current year's report could indicate the resolution of a significant legal matter, potentially reducing legal risk and uncertainty for the company going forward.
Initiates 2024 guidance
SARASOTA, Fla., Jan. 31, 2024 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (Nasdaq: ROP) reported financial results for the fourth quarter and full year ended December 31, 2023. The results in this press release are presented on a continuing operations basis.
Fourth quarter 2023 highlights
- Revenue increased
13% to$1.61 billion ; organic revenue increased8% - GAAP DEPS increased
51% to$3.50 ; adjusted DEPS increased11% to$4.37 - GAAP net earnings were
$378 million - Adjusted EBITDA increased
11% to$659 million - GAAP operating cash flow was
$622 million ; adjusted operating cash flow increased34% to$638 million
Full year 2023 highlights
- Revenue increased
15% to$6.18 billion ; organic revenue increased8% - GAAP DEPS increased
38% to$12.74 ; adjusted DEPS increased17% to$16.71 - GAAP net earnings were
$1.37 billion - Adjusted EBITDA increased
16% to$2.51 billion - GAAP operating cash flow was
$2.04 billion ; adjusted operating cash flow increased33% to$2.07 billion
“Roper had a terrific 2023, both in terms of our operational execution and our capital deployment strategy. Financially, 2023 is highlighted by having
“Relative to our capital deployment strategy, we allocated
2024 outlook and guidance
“We’re entering 2024 with continued positive momentum, fueled by the ongoing expansion of our recurring revenue base and demand for our businesses’ mission critical solutions. In addition, as previously announced last week, we reached an agreement to acquire Procare Solutions, a leading software provider for the childcare market. Procare is a terrific, high-growth addition to the Roper portfolio.”
“With a solid organic outlook, contributions from our recent acquisitions, a strong balance sheet, and a large pipeline of attractive M&A opportunities, we remain well positioned to continue our compelling cash flow compounding,” concluded Mr. Hunn.
Roper expects full year 2024 adjusted DEPS of
Roper’s guidance includes the impact of the previously announced acquisition of Procare Solutions, expected to close in the first quarter of 2024. The Company’s guidance excludes the impact of unannounced future acquisitions or divestitures.
Minority interests
Following the sale of a majority stake in its industrial businesses to CD&R, Roper holds a minority interest in Indicor. The fair value of Roper’s equity investment in Indicor is updated on a quarterly basis and reported as “equity investments activity, net.” Roper makes a non-GAAP adjustment for the impacts associated with this investment.
Roper holds a minority interest in Certinia, a leading provider of professional services automation software. The Company’s investment is accounted for under the equity method and its proportionate share of income/(loss) associated with this investment is reported as “equity investments activity, net.” Roper makes a non-GAAP adjustment for the impacts associated with this investment.
Discontinued operations
Roper has completed the divestitures of TransCore, Zetec, and the majority stake in its industrial businesses (Indicor). The financial results for these businesses are reported as discontinued operations for all periods prior to the completion of their respective divestiture.
Conference call to be held at 8:00 AM (ET) today
A conference call to discuss these results has been scheduled for 8:00 AM ET on Wednesday, January 31, 2024. The call can be accessed via webcast or by dialing +1 844-750-4898 (US/Canada) or +1 412-317-5294, using conference code 10185260. Webcast information and conference call materials will be made available in the Investors section of Roper’s website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://event.webcast. Telephonic replays will be available for up to two weeks and can be accessed by dialing +1 412-317-0088 with access code 1862300.
Use of non-GAAP financial information
The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.
| Table 1: Revenue and adjusted EBITDA reconciliation ($M) (from continuing operations) | |||||||||||||||||||||
| Q4 2022 | Q4 2023 | V % | FY 2022 | FY 2023 | V % | ||||||||||||||||
| GAAP revenue | $ | 1,431 | $ | 1,613 | 13 | % | $ | 5,372 | $ | 6,178 | 15 | % | |||||||||
| Components of revenue growth | |||||||||||||||||||||
| Organic | 8 | % | 8 | % | |||||||||||||||||
| Acquisitions/divestitures | 4 | % | 7 | % | |||||||||||||||||
| Foreign exchange | — | % | — | % | |||||||||||||||||
| Revenue growth | 13 | % | 15 | % | |||||||||||||||||
| Adjusted EBITDA reconciliation | |||||||||||||||||||||
| GAAP net earnings | $ | 247 | $ | 378 | $ | 986 | $ | 1,368 | |||||||||||||
| Taxes | 61 | 99 | 296 | 375 | |||||||||||||||||
| Interest expense | 54 | 50 | 192 | 165 | |||||||||||||||||
| Depreciation | 9 | 9 | 37 | 35 | |||||||||||||||||
| Amortization | 174 | 187 | 613 | 720 | |||||||||||||||||
| EBITDA | $ | 546 | $ | 723 | 32 | % | $ | 2,124 | $ | 2,663 | 25 | % | |||||||||
| Purchase accounting adjustment to acquired commission expense | (1 | ) | — | (5 | ) | — | |||||||||||||||
| Restructuring-related expenses associated with the Syntellis acquisition | — | — | — | 9 | |||||||||||||||||
| Transaction-related expenses for completed acquisitions | 3 | 3 | 5 | 8 | |||||||||||||||||
| Financial impacts associated with the minority investments in Indicor & Certinia A | — | (67 | ) | — | (165 | ) | |||||||||||||||
| Gain on sale of non-operating assets | — | — | — | (3 | ) | ||||||||||||||||
| Legal settlement charge | 45 | — | 45 | — | |||||||||||||||||
| Adjusted EBITDA | $ | 592 | $ | 659 | 11 | % | $ | 2,170 | $ | 2,511 | 16 | % | |||||||||
| % of revenue | 41.4 | % | 40.8 | % | (60 bps) | 40.4 | % | 40.6 | % | +20 bps | |||||||||||
| Table 2: Adjusted DEPS reconciliation (from continuing operations) | |||||||||||||||||||||
| Q4 2022 | Q4 2023 | V % | FY 2022 | FY 2023 | V % | ||||||||||||||||
| GAAP DEPS | $ | 2.32 | $ | 3.50 | 51 | % | $ | 9.23 | $ | 12.74 | 38 | % | |||||||||
| Purchase accounting adjustment to acquired commission expense | (0.01 | ) | — | (0.04 | ) | — | |||||||||||||||
| Restructuring-related expenses associated with the Syntellis acquisition | — | — | — | 0.06 | |||||||||||||||||
| Transaction-related expenses for completed acquisitions | 0.02 | 0.02 | 0.04 | 0.06 | |||||||||||||||||
| Financial impacts associated with the minority investments in Indicor & Certinia A | — | (0.48 | ) | — | (1.25 | ) | |||||||||||||||
| Gain on sale of non-operating assets | — | — | — | (0.02 | ) | ||||||||||||||||
| Legal settlement charge | 0.33 | — | 0.33 | — | |||||||||||||||||
| Amortization of acquisition-related intangible assets B | 1.26 | 1.33 | 4.44 | 5.13 | |||||||||||||||||
| Income tax restructuring expense associated with discontinued operations | — | — | 0.27 | — | |||||||||||||||||
| Adjusted DEPS | $ | 3.92 | $ | 4.37 | 11 | % | $ | 14.28 | $ | 16.71 | 17 | % | |||||||||
| Table 3: Adjusted cash flow reconciliation ($M) (from continuing operations) | |||||||||||||||||||||
| Q4 2022 | Q4 2023 | V % | FY 2022 | FY 2023 | V % | ||||||||||||||||
| Operating cash flow | $ | 56 | $ | 622 | $ | 607 | $ | 2,037 | |||||||||||||
| Taxes paid in period related to divestitures | 419 | 16 | C | 954 | 32 | C | |||||||||||||||
| Adjusted operating cash flow | $ | 476 | $ | 638 | 34 | % | $ | 1,560 | $ | 2,070 | 33 | % | |||||||||
| Capital expenditures | (10 | ) | (30 | ) | (40 | ) | (68 | ) | |||||||||||||
| Capitalized software expenditures | (8 | ) | (11 | ) | (30 | ) | (40 | ) | |||||||||||||
| Adjusted free cash flow | $ | 457 | $ | 596 | 30 | % | $ | 1,490 | $ | 1,962 | 32 | % | |||||||||
| Table 4: Forecasted adjusted DEPS reconciliation (from continuing operations) | |||||||||||
| Q1 2024 | FY 2024 | ||||||||||
| Low End | High End | Low End | High End | ||||||||
| GAAP DEPS D | $ | 3.01 | $ | 3.05 | $ | 12.77 | $ | 13.07 | |||
| Financial impacts associated with the minority investments in Indicor & Certinia A | TBD | TBD | TBD | TBD | |||||||
| Amortization of acquisition-related intangible assets B | 1.29 | 1.29 | 5.08 | 5.08 | |||||||
| Adjusted DEPS | $ | 4.30 | $ | 4.34 | $ | 17.85 | $ | 18.15 | |||
| A. | Adjustments related to the financial impacts associated with the minority investments in Indicor & Certinia as shown below ($M, except per share data). Forecasted results do not include any potential impacts associated with our minority investments in Indicor or Certinia, as these potential impacts cannot be reasonably predicted. These impacts will be excluded from all non-GAAP results in future periods. | |||||||||||||||||||||
| Q4 2022A | Q4 2023A | FY 2022A | FY 2023A | Q1 2024E | FY 2024E | |||||||||||||||||
| Pretax | $ | — | $ | (67 | ) | $ | — | $ | (165 | ) | TBD | TBD | ||||||||||
| After-tax | $ | — | $ | (52 | ) | $ | — | $ | (135 | ) | TBD | TBD | ||||||||||
| Per share | $ | — | $ | (0.48 | ) | $ | — | $ | (1.25 | ) | TBD | TBD | ||||||||||
| B. | Actual results and forecast of estimated amortization of acquisition-related intangible assets as shown below ($M, except per share data). These adjustments are taxed at | |||||||||||||||||||||
| Q4 2022A | Q4 2023A | FY 2022A | FY 2023A | Q1 2024E | FY 2024E | |||||||||||||||||
| Pretax | $ | 171 | $ | 181 | $ | 600 | $ | 698 | $ | 176 | $ | 696 | ||||||||||
| After-tax | $ | 135 | $ | 143 | $ | 474 | $ | 552 | $ | 139 | $ | 550 | ||||||||||
| Per share | $ | 1.26 | $ | 1.33 | $ | 4.44 | $ | 5.13 | $ | 1.29 | $ | 5.08 | ||||||||||
| C. | Cash taxes paid during 2023 were associated with Roper's portion of Indicor's gain on the sale of its Compressor Controls business ("CCC") to Honeywell. | |||||||||||||||||||||
| D. | Forecasted GAAP DEPS do not include amortization of intangible assets associated with the announced acquisition of Procare Solutions or any potential impacts associated with our minority investments in Indicor or Certinia. These items will be excluded from all non-GAAP results in future periods. | |||||||||||||||||||||
Note: Numbers may not foot due to rounding.
About Roper Technologies
Roper Technologies is a constituent of the Nasdaq 100, S&P 500, and Fortune 1000. Roper has a proven, long-term track record of compounding cash flow and shareholder value. The Company operates market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets. Roper utilizes a disciplined, analytical, and process-driven approach to redeploy its excess capital toward high-quality acquisitions. Additional information about Roper is available on the Company’s website at www.ropertech.com.
Contact information:
Investor Relations
941-556-2601
investor-relations@ropertech.com
The information provided in this press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements may include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes," "intends" and similar words and phrases. These statements reflect management's current beliefs and are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include any negative impact on global and regional markets, economies and economic activity; actions governments, businesses and individuals take in response to the pandemic; the effects of the pandemic, including all of the foregoing, on our customers, suppliers and business partners. Such risks and uncertainties also include our ability to identify and complete acquisitions consistent with our business strategies, integrate acquisitions that have been completed, realize expected benefits and synergies from, and manage other risks associated with, acquired businesses, including obtaining any required regulatory approvals with respect thereto. We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions and the conditions of the specific markets in which we operate, including risks related to labor shortages and rising interest rates, changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, cybersecurity and data privacy risks, including litigation resulting therefrom, risks related to political instability, armed hostilities, incidents of terrorism, public health crises (such as the COVID-19 pandemic) or natural disasters, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, including as a result of the current inflationary environment and ongoing supply chain constraints, environmental compliance costs and liabilities, risks and cost associated with litigation, potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products. Important risks may be discussed in current and subsequent filings with the SEC. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
| Roper Technologies, Inc. | |||||||
| Condensed Consolidated Balance Sheets (unaudited) | |||||||
| (Amounts in millions) | |||||||
| December 31, 2023 | December 31, 2022 | ||||||
| ASSETS: | |||||||
| Cash and cash equivalents | $ | 214.3 | $ | 792.8 | |||
| Accounts receivable, net | 829.9 | 724.5 | |||||
| Inventories, net | 118.6 | 111.3 | |||||
| Income taxes receivable | 47.7 | 61.0 | |||||
| Unbilled receivables | 106.4 | 91.5 | |||||
| Other current assets | 164.5 | 151.3 | |||||
| Total current assets | 1,481.4 | 1,932.4 | |||||
| Property, plant and equipment, net | 119.6 | 85.3 | |||||
| Goodwill | 17,118.8 | 15,946.1 | |||||
| Other intangible assets, net | 8,212.1 | 8,030.7 | |||||
| Deferred taxes | 32.2 | 55.9 | |||||
| Equity investments | 795.7 | 535.0 | |||||
| Other assets | 407.7 | 395.4 | |||||
| Total assets | $ | 28,167.5 | $ | 26,980.8 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||
| Accounts payable | $ | 143.0 | $ | 122.6 | |||
| Accrued compensation | 250.0 | 228.8 | |||||
| Deferred revenue | 1,583.8 | 1,370.7 | |||||
| Other accrued liabilities | 446.5 | 454.6 | |||||
| Income taxes payable | 40.4 | 16.6 | |||||
| Current portion of long-term debt, net | 499.5 | 699.2 | |||||
| Total current liabilities | 2,963.2 | 2,892.5 | |||||
| Long-term debt, net of current portion | 5,830.6 | 5,962.5 | |||||
| Deferred taxes | 1,513.1 | 1,676.8 | |||||
| Other liabilities | 415.8 | 411.2 | |||||
| Total liabilities | 10,722.7 | 10,943.0 | |||||
| Common stock | 1.1 | 1.1 | |||||
| Additional paid-in capital | 2,767.0 | 2,510.2 | |||||
| Retained earnings | 14,816.3 | 13,730.7 | |||||
| Accumulated other comprehensive loss | (122.8 | ) | (187.0 | ) | |||
| Treasury stock | (16.8 | ) | (17.2 | ) | |||
| Total stockholders’ equity | 17,444.8 | 16,037.8 | |||||
| Total liabilities and stockholders’ equity | $ | 28,167.5 | $ | 26,980.8 | |||
| Roper Technologies, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Earnings (unaudited) | ||||||||||||||||
| (Amounts in millions, except per share data) | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net revenues | $ | 1,613.5 | $ | 1,430.9 | $ | 6,177.8 | $ | 5,371.8 | ||||||||
| Cost of sales | 488.3 | 428.6 | 1,870.6 | 1,619.0 | ||||||||||||
| Gross profit | 1,125.2 | 1,002.3 | 4,307.2 | 3,752.8 | ||||||||||||
| Selling, general and administrative expenses | 662.4 | 589.8 | 2,562.0 | 2,228.3 | ||||||||||||
| Income from operations | 462.8 | 412.5 | 1,745.2 | 1,524.5 | ||||||||||||
| Interest expense, net | 50.1 | 53.8 | 164.7 | 192.4 | ||||||||||||
| Equity investments activity, net | 66.7 | — | 165.4 | — | ||||||||||||
| Other expense, net | (2.7 | ) | (50.3 | ) | (2.8 | ) | (50.1 | ) | ||||||||
| Earnings before income taxes | 476.7 | 308.4 | 1,743.1 | 1,282.0 | ||||||||||||
| Income taxes | 99.2 | 61.1 | 374.7 | 296.4 | ||||||||||||
| Net earnings from continuing operations | 377.5 | 247.3 | 1,368.4 | 985.6 | ||||||||||||
| Earnings (loss) from discontinued operations, net of tax | — | 32.5 | (4.1 | ) | 202.8 | |||||||||||
| Gain on disposition of discontinued operations, net of tax | 11.5 | 1,648.6 | 19.9 | 3,356.3 | ||||||||||||
| Net earnings from discontinued operations | 11.5 | 1,681.1 | 15.8 | 3,559.1 | ||||||||||||
| Net earnings | $ | 389.0 | $ | 1,928.4 | $ | 1,384.2 | $ | 4,544.7 | ||||||||
| Net earnings per share from continuing operations: | ||||||||||||||||
| Basic | $ | 3.53 | $ | 2.33 | $ | 12.83 | $ | 9.31 | ||||||||
| Diluted | $ | 3.50 | $ | 2.32 | $ | 12.74 | $ | 9.23 | ||||||||
| Net earnings per share from discontinued operations: | ||||||||||||||||
| Basic | $ | 0.11 | $ | 15.85 | $ | 0.15 | $ | 33.61 | ||||||||
| Diluted | $ | 0.11 | $ | 15.74 | $ | 0.15 | $ | 33.32 | ||||||||
| Net earnings per share: | ||||||||||||||||
| Basic | $ | 3.64 | $ | 18.18 | $ | 12.98 | $ | 42.92 | ||||||||
| Diluted | $ | 3.61 | $ | 18.06 | $ | 12.89 | $ | 42.55 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 106.9 | 106.1 | 106.6 | 105.9 | ||||||||||||
| Diluted | 107.7 | 106.8 | 107.4 | 106.8 | ||||||||||||
| Roper Technologies, Inc. | |||||||||||||||||||||||
| Selected Segment Financial Data (unaudited) | |||||||||||||||||||||||
| (Amounts in millions; percentages of net revenues) | |||||||||||||||||||||||
| Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||
| Net revenues: | |||||||||||||||||||||||
| Application Software | $ | 851.8 | $ | 739.8 | $ | 3,186.9 | $ | 2,639.5 | |||||||||||||||
| Network Software | 362.7 | 350.5 | 1,439.4 | 1,378.5 | |||||||||||||||||||
| Technology Enabled Products | 399.0 | 340.6 | 1,551.5 | 1,353.8 | |||||||||||||||||||
| Total | $ | 1,613.5 | $ | 1,430.9 | $ | 6,177.8 | $ | 5,371.8 | |||||||||||||||
| Gross profit: | |||||||||||||||||||||||
| Application Software | $ | 586.6 | 68.9 | % | $ | 509.8 | 68.9 | % | $ | 2,195.8 | 68.9 | % | $ | 1,816.3 | 68.8 | % | |||||||
| Network Software | 311.6 | 85.9 | % | 297.7 | 84.9 | % | 1,225.6 | 85.1 | % | 1,165.6 | 84.6 | % | |||||||||||
| Technology Enabled Products | 227.0 | 56.9 | % | 194.8 | 57.2 | % | 885.8 | 57.1 | % | 770.9 | 56.9 | % | |||||||||||
| Total | $ | 1,125.2 | 69.7 | % | $ | 1,002.3 | 70.0 | % | $ | 4,307.2 | 69.7 | % | $ | 3,752.8 | 69.9 | % | |||||||
| Operating profit*: | |||||||||||||||||||||||
| Application Software | $ | 219.5 | 25.8 | % | $ | 202.6 | 27.4 | % | $ | 820.8 | 25.8 | % | $ | 714.0 | 27.1 | % | |||||||
| Network Software | 167.4 | 46.2 | % | 148.6 | 42.4 | % | 632.4 | 43.9 | % | 570.6 | 41.4 | % | |||||||||||
| Technology Enabled Products | 127.0 | 31.8 | % | 111.5 | 32.7 | % | 518.7 | 33.4 | % | 449.1 | 33.2 | % | |||||||||||
| Total | $ | 513.9 | 31.9 | % | $ | 462.7 | 32.3 | % | $ | 1,971.9 | 31.9 | % | $ | 1,733.7 | 32.3 | % | |||||||
| * Segment operating profit is before unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation. These expenses were | |||||||||||||||||||||||
| Roper Technologies, Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows (unaudited) | |||||||
| (Amounts in millions) | |||||||
| Year ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net earnings from continuing operations | $ | 1,368.4 | $ | 985.6 | |||
| Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities: | |||||||
| Depreciation and amortization of property, plant and equipment | 35.4 | 37.3 | |||||
| Amortization of intangible assets | 719.8 | 612.8 | |||||
| Amortization of deferred financing costs | 9.9 | 11.8 | |||||
| Non-cash stock compensation | 123.5 | 118.5 | |||||
| Equity investments activity, net | (165.4 | ) | — | ||||
| Income tax provision | 374.7 | 296.4 | |||||
| Changes in operating assets and liabilities, net of acquired businesses: | |||||||
| Accounts receivable | (50.2 | ) | 2.5 | ||||
| Unbilled receivables | (7.5 | ) | (11.1 | ) | |||
| Inventories | (6.6 | ) | (43.1 | ) | |||
| Accounts payable | 18.2 | 21.3 | |||||
| Other accrued liabilities | (1.0 | ) | (7.6 | ) | |||
| Deferred revenue | 93.9 | 52.9 | |||||
| Cash taxes paid for gain on disposal of businesses | (32.5 | ) | (953.8 | ) | |||
| Cash income taxes paid, excluding tax associated with gain on disposal of businesses | (423.4 | ) | (498.9 | ) | |||
| Other, net | (19.8 | ) | (18.0 | ) | |||
| Cash provided by operating activities from continuing operations | 2,037.4 | 606.6 | |||||
| Cash provided by (used in) operating activities from discontinued operations | (2.3 | ) | 128.0 | ||||
| Cash provided by operating activities | 2,035.1 | 734.6 | |||||
| Cash flows from (used in) investing activities: | |||||||
| Acquisitions of businesses, net of cash acquired | (2,052.7 | ) | (4,280.1 | ) | |||
| Capital expenditures | (68.0 | ) | (40.1 | ) | |||
| Capitalized software expenditures | (40.0 | ) | (30.2 | ) | |||
| Distributions from equity investment | 32.5 | — | |||||
| Other, net | (0.1 | ) | (1.4 | ) | |||
| Cash used in investing activities from continuing operations | (2,128.3 | ) | (4,351.8 | ) | |||
| Proceeds from disposition of discontinued operations | 2.0 | 5,561.8 | |||||
| Cash used in investing activities from discontinued operations | — | (0.5 | ) | ||||
| Cash provided by (used in) investing activities | (2,126.3 | ) | 1,209.5 | ||||
| Cash flows from (used in) financing activities: | |||||||
| Payments of senior notes | (700.0 | ) | (800.0 | ) | |||
| Borrowings (payments) under revolving line of credit, net | 360.0 | (470.0 | ) | ||||
| Debt issuance costs | — | (3.9 | ) | ||||
| Cash dividends to stockholders | (290.2 | ) | (262.3 | ) | |||
| Treasury stock sales | 15.5 | 14.3 | |||||
| Proceeds from stock-based compensation, net | 115.2 | 68.2 | |||||
| Other, net | — | (0.2 | ) | ||||
| Cash used in financing activities from continuing operations | (499.5 | ) | (1,453.9 | ) | |||
| Cash used in financing activities from discontinued operations | — | (11.4 | ) | ||||
| Cash used in financing activities | (499.5 | ) | (1,465.3 | ) | |||
| (Continued) | |||||||
| Roper Technologies, Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows (unaudited) - Continued | |||||||
| (Amounts in millions) | |||||||
| Year ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Effect of exchange rate changes on cash | 12.2 | (37.5 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | (578.5 | ) | 441.3 | ||||
| Cash and cash equivalents, beginning of year | 792.8 | 351.5 | |||||
| Cash and cash equivalents, end of year | $ | 214.3 | $ | 792.8 | |||
FAQ
What is the ticker symbol for Roper Technologies, Inc.?
What was the revenue increase in Q4 2023?
What is the 2024 adjusted DEPS guidance range?
What acquisition did Roper Technologies announce?
What is the expected total revenue growth for 2024?
