Slide 1: Q4 2023 Financial results
Q4 2023 Financial results January 31, 2024
Slide 2: Safe harbor statement
Safe harbor statement 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
Slide 3: Reg. G Disclosure
Reg. G Disclosure Today’s conference call will discuss results primarily on an adjusted (non-GAAP) and continuing operations basis. Q4 results adjusted for the following Items: 1. Amortization of acquisition-related intangible assets 2. Financial impacts associated with minority investments 3. Trans
Slide 4: Agenda
Agenda Q4 & 2023 enterprise highlights & financial results 2023 segment detail & 2024 outlook 2024 enterprise guidance Q&A 4
Slide 5: Strong 2023, Roper entering 2024 with momentum
Strong 2023 +15% revenue, +8% organic revenue, +16% EBITDA 32% free cash flow margin; +16% 3-year CAGR Roper entering Deployed $2.1B toward high-quality vertical software acquisitions 2024 Positive momentum entering 2024 Solid foundation; strong Continued demand for mission critical software & produ
Slide 6: Procare acquisition
Procare acquisition Investment highlights Company profile Purchase price: Leading provider of niche, mission critical $1.75B (net of $110M tax benefit) software for early childhood education centers ~18x estimated EBITDA (12-months ending Q1‘25) Durable & attractive end market with strong Expected f
Slide 7: Q4 income statement metrics
Q4 income statement metrics Q4’22 Q4’23 Revenue $1,431 $1,613 +13%; organic +8% Gross profit $1,002 $1,125 Gross margin 70.0% 69.7% EBITDA $592 $659 +11% EBITDA margin 41.4% 40.8% Interest expense $54 $50 Tax rate 20.3% 20.6% Net earnings $419 $471 +12% DEPS $3.92 $4.37 +11% In $ millions, except DE
Slide 8: Q4 segment results
Q4 segment results Application Software Network Software Technology Enabled Products Revenue Revenue Revenue +15% +3% +17% vs PY vs PY vs PY _____ _____ _____ +7% +3% +17% organic organic organic $550 $605 $740 $852 $283 $323 $350 $363 $283 $329 $341 $399 Q4'20 Q4'21 Q4'22 Q4'23 Q4'20 Q4'21 Q4'22 Q4
Slide 9: 2023 financial highlights
2023 financial highlights Another great year for Roper Total revenue +15%; organic revenue +8% EBITDA +16%; EBITDA margin +20 bps to 40.6% DEPS +17% to $16.71 Free cash flow +32% to $1.96B; 32% free cash flow margin Revenue EBITDA Free cash flow +15% +16% +16% 3-year 3-year 3-year CAGR CAGR CAGR $4,
Slide 10: Strong financial position
Exited 2023 at 2.4x net debt-to-EBITDA $214M of cash Strong financial $360M drawn on $3.5B revolver position Expect to close Procare acquisition in Q1 $4B+ M&A capacity Financed by revolver Well positioned for capital deployment Strong balance sheet & cash flow Large pipeline of attractive acquisiti
Slide 11: Segment detail & outlook
Segment detail & outlook
Slide 12: Application Software
Application Software FY 2023 highlights Revenue Revenue +21%; organic revenue +6% Deltek continued SaaS momentum; completed Replicon & ProPricer acquisitions Great Aderant year; record bookings & strong SaaS adoption; continued GenAI innovation Vertafore performed well; continued ARR $1,794 $2,368 $
Slide 13: Network Software
Network Software FY 2023 highlights Revenue Revenue +4%; organic revenue +5% DAT & Loadlink growth despite challenging freight market conditions; GenAI-enabled features enhancing network value iPipeline record bookings; strong customer $1,073 $1,224 $1,378 $1,439 retention & expansion 2020 2021 2022
Slide 14: Technology Enabled Products
Technology Enabled Products FY 2023 highlights Revenue Revenue +15%; organic revenue +15% Strong execution across the segment; successful resolution of remaining supply chain challenges Fantastic Neptune year; continued momentum for ultrasonic meters & adoption of meter data $1,167 $1,243 $1,354 $1,
Slide 15: 2024 enterprise guidance
2024 enterprise guidance
Slide 16: Establishing 2024 guidance
FY 2024 Establishing Total revenue: +11 - 12% Organic: +5 - 6% 2024 guidance Adjusted DEPS: $17.85 - $18.15 Includes impact of Procare acquisition Q1 2024 Adjusted DEPS: $4.30 - $4.34 Guidance excludes impact of unannounced future acquisitions or divestitures. Guidance presented on an adjusted (non-
Slide 17: Year-end summary
Another great year +15% revenue, +8% organic revenue, +16% EBITDA 32% free cash flow margin; +16% 3-year CAGR Deployed $2.1B toward high-quality vertical software acquisitions Year-end Positive momentum entering 2024 summary Continued demand for mission critical solutions Simple ideas. Strong organi
Slide 18: Market-leading businesses in defensible niches
Market-leading businesses in defensible niches Decentralized Process-driven operating capital deployment environment 18
Slide 19: Appendix
Appendix
Slide 20: Full year income statement metrics
Full year income statement metrics 2022 2023 Revenue $5,372 $6,178 +15%; organic +8% Gross profit $3,753 $4,307 Gross margin 69.9% 69.7% EBITDA $2,170 $2,511 +16% EBITDA margin 40.4% 40.6% Interest expense $192 $165 Tax rate 20.9% 21.6% Net earnings $1,525 $1,795 +18% DEPS $14.28 $16.71 +17% In $ mi
Slide 21: Roper's revenue composition
Roper’s revenue composition Disaggregated revenue reconciliation ($M) (from continuing operations) Technology Enabled Q4 2023 Application Software Network Software Products Roper Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Software related Recurring 556 656 252 262 3 5 811 923 Reoccurring 34 35
Slide 22: Reconciliations I
Reconciliations I Adjusted revenue and EBITDA reconciliation ($M) (from continuing operations) Q4 2022 Q4 2023 V% to '22 FY 2020 FY 2021 FY 2022 FY 2023 V% to '22 3-Year CAGR GAAP revenue $ 1,431 $ 1,613 13% $ 4,022 $ 4,834 $ 5,372 $ 6,178 15% 15% Purchase accounting adjustment to acquired deferred
Slide 23: Reconciliations II
Reconciliations II Revenue growth reconciliation (from continuing operations) Technology Q4 2023 Application Network Enabled Software Software Products Roper Organic 7% 3% 17% 8% Acquisitions/divestitures 8% - - 4% Foreign exchange - - - - Total revenue growth 15% 3% 17% 13% Adjusted segment reconci
Slide 24: Reconciliations III
Reconciliations III Revenue growth reconciliation (from continuing operations) Technology FY 2023 Application Network Enabled Software Software Products Roper Organic 6% 5% 15% 8% Acquisitions/divestitures 15% - - 7% Foreign exchange - - - - Total revenue growth 21% 4% 15% 15% Adjusted segment recon
Slide 25: Reconciliations IV
Reconciliations IV 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 Syntell
Slide 26: Footnotes
Footnotes 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 poten
Slide 27: Roper Technologies
Roper TECHNOLOGIES