Slide 1: Q3 2024 Financial results
Q3 2024 Financial results October 23, 2024
Slide 2: Safe harbor statement
Safe harbor statement The information provided in this presentation 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. Q3 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 Q3 enterprise highlights & financial results Segment detail & outlook Q4 & FY 2024 enterprise guidance Q&A 4
Slide 5: Q3 overview
Another solid quarter +13% revenue, +4% organic revenue, +10% EBITDA +15% free cash flow; TTM +20% to $2.2B Q3 overview Completed Transact acquisition Raising full year guidance to high end Remain well positioned for capital deployment Results are presented on an adjusted (non-GAAP) and continuing o
Slide 6: Q3 financial highlights
Q3 financial highlights Solid third quarter results Total revenue +13%; organic revenue +4% EBITDA +10%; EBITDA margin 40.7% DEPS +7% to $4.62; including +$0.03 contribution from Transact Free cash flow +15% to $719M; TTM 32% free cash flow margin Revenue EBITDA TTM free cash flow +13% +13% +12% 3-y
Slide 7: Strong financial position
9/30/24 Cash $270 Strong financial Gross debt $8,377 position Net debt $8,107 Successful $2B bond offering TTM EBITDA $2,748 Net debt-to-EBITDA (TTM) 3.0x $4B+ capacity for capital deployment Drawn on $3.5B revolver $925 In $ millions. Numbers may not foot due to rounding. Results are presented on a
Slide 8: Transact acquisition
Transact acquisition Investment highlights Operational highlights Purchase price: Completed acquisition (August 20th) $1.5B (net of $100M tax benefit) ~14x 2025 estimated EBITDA Strong combined leadership team Meets all acquisition criteria Cost synergy actions initiated Expected 2025 financial impa
Slide 9: Segment detail & outlook
Segment detail & outlook
Slide 10: Application Software
Application Software Q3 highlights Revenue Revenue +23%; organic revenue +5%; core EBITDA margin +20 bps Outstanding Aderant quarter; new logos & continued customer expansion Deltek GovCon enterprise improving; ongoing cloud momentum & expanding GenAI functionality $600 $644 $803 $984 Continued ARR
Slide 11: Network Software
Network Software Q3 highlights Revenue Revenue +1%; organic revenue +1% DAT & Loadlink declined, as expected; continued stabilization of freight market conditions; network- enhancing innovation Ongoing post-strike industry recovery drove $316 $347 $364 $367 Foundry declines, as expected; continued r
Slide 12: Technology Enabled Products
Technology Enabled Products Q3 highlights Revenue Revenue +4%; organic revenue +4% Neptune rapidly resolved production issue; well positioned for mechanical meter demand & long- term transition to ultrasonic meters Continued momentum at Verathon; growth driven $316 $360 $396 $413 by BFlex & GlideSco
Slide 13: 2024 enterprise guidance
2024 enterprise guidance
Slide 14: Guidance update
FY 2024 guidance Total revenue: 13%+ Organic: ~6% Guidance Adjusted DEPS: $18.21 - $18.25 update Previously $18.10 - $18.25 Transact neutral to DEPS (for FY) Establishing Q4 2024 guidance Adjusted DEPS: $4.70 - $4.74 Transact $(0.03) contribution Guidance excludes impact of unannounced future acquis
Slide 15: Summary
Solid third quarter +13% revenue, +4% organic revenue, +10% EBITDA +15% free cash flow; TTM 32% free cash flow margin Completed Transact acquisition Summary Raising full year guidance to high end Simple ideas. Continued demand for mission critical solutions Powerful results. Ongoing expansion of rec
Slide 16: Market-leading businesses in defensible niches
Market-leading businesses in defensible niches Decentralized Process-driven operating capital deployment environment 16
Slide 17: Appendix
Appendix
Slide 18: Q3 income statement metrics
Q3 income statement metrics Q3’23 Q3’24 Revenue $1,563 $1,765 +13%; organic +4% Gross profit $1,096 $1,222 Gross margin 70.1% 69.2% EBITDA $652 $717 +10% EBITDA margin 41.7% 40.7% Interest expense $42 $68 Tax rate 21.9% 21.1% Net earnings $465 $499 DEPS $4.32 $4.62 +7% In $ millions, except DEPS. Re
Slide 19: Roper's revenue composition
Roper’s revenue composition Disaggregated revenue reconciliation ($M) (from continuing operations) Technology Enabled Q3 2024 Application Software Network Software Products Roper Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Software related Recurring 631 733 263 266 4 7 898 1,006 Reoccurring 33 1
Slide 20: Reconciliations I
Reconciliations I Revenue and adjusted EBITDA reconciliation ($M) (from continuing operations) Q3 2021 Q3 2022 Q3 2023 Q3 2024 V% to '23 3-Year CAGR TTM 2024 GAAP revenue $ 1,232 $ 1,350 $ 1,563 $ 1,765 13% 13% $ 6,776 GAAP earnings before income taxes $ 287 $ 355 $ 443 $ 467 $ 1,853 Interest expens
Slide 21: Reconciliations II
Reconciliations II Revenue growth reconciliation (from continuing operations) Technology Q3 2024 Application Network Enabled Software Software Products Roper Organic 5% 1% 4% 4% Acquisitions/divestitures 17% - - 9% Foreign exchange - - - - Total revenue growth 23% 1% 4% 13% Segment reconciliation ($
Slide 22: Reconciliations III
Reconciliations III Adjusted DEPS reconciliation (from continuing operations) Q3 2023 Q3 2024 V% GAAP DEPS $ 3.21 $ 3.40 6% Restructuring-related expenses associated with the Syntellis ('23) and Transact ('24) acquisitions 0.06 0.07 Transaction-related expenses for completed acquisitions 0.03 0.03 A
Slide 23: 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 24: Roper Technologies
Roper TECHNOLOGIES