Slide 1: Q2 2024 Financial results
Q2 2024 Financial results July 24, 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. Q2 results adjusted for the following Items: 1. Amortization of acquisition-related intangible assets 2. Financial impacts associated with minority investments See appe
Slide 4: Agenda
Agenda Q2 enterprise highlights & financial results Segment detail & outlook Q3 & FY 2024 enterprise guidance Q&A 4
Slide 5: Q2 overview
Solid second quarter +12% revenue, +4% organic revenue, +13% EBITDA Q2 overview +24% free cash flow; TTM +35% to $2.1B Increasing low end of full year guidance Well positioned for capital deployment Results are presented on an adjusted (non-GAAP) and continuing operations basis. See appendix for rec
Slide 6: Q2 financial highlights
Q2 financial highlights Solid second quarter results Total revenue +12%; organic revenue +4% EBITDA +13%; EBITDA margin +20 bps to 40.5% DEPS +9% to $4.48 Free cash flow +24% to $367M; TTM 32% free cash flow margin Revenue EBITDA TTM free cash flow +13% +14% +10% 3-year 3-year 3-year CAGR CAGR CAGR
Slide 7: Strong financial position
6/30/24 Cash $251 Strong financial Gross debt $7,424 position Net debt $7,172 TTM EBITDA $2,683 $4B+ capacity for capital deployment Gross debt-to-EBITDA (TTM) 2.8x Net debt-to-EBITDA (TTM) 2.7x Drawn on $3.5B revolver $1,450 In $ millions. Numbers may not foot due to rounding. Results are presented
Slide 8: Segment detail & outlook
Segment detail & outlook
Slide 9: Application Software
Application Software Q2 highlights Revenue Revenue +21%; organic revenue +5% Deltek growth driven by continued cloud momentum across GovCon & private sector Aderant delivered another excellent quarter; ongoing SaaS momentum & GenAI innovation ARR growth at Vertafore & Frontline with strong $588 $627
Slide 10: Network Software
Network Software Q2 highlights Revenue Revenue +2%; organic revenue +2% Challenging but stabilized freight market conditions drove DAT & Loadlink declines, as expected; continued innovation to enhance network value Foundry declined as industry begins recovery $298 $343 $358 $364 from strikes; Nuke p
Slide 11: Technology Enabled Products
Technology Enabled Products Q2 highlights Revenue Revenue +4%; organic revenue +5% Another great Verathon quarter; sustained momentum across BFlex, GlideScope & BladderScan product families Neptune demand as expected; ultrasonic $304 $340 $403 $421 capacity successfully expanded; mechanical meter pr
Slide 12: 2024 enterprise guidance
2024 enterprise guidance
Slide 13: Guidance update
FY 2024 guidance Total revenue: ~12% Guidance Organic: ~6% Adjusted DEPS: $18.10 - $18.25 update Previously $18.05 - $18.25 Establishing Q3 2024 guidance Adjusted DEPS: $4.50 - $4.54 Guidance excludes impact of unannounced future acquisitions or divestitures. Guidance presented on an adjusted (non-G
Slide 14: Summary
Solid second quarter +12% revenue, +4% organic revenue, +13% EBITDA +24% free cash flow; TTM 32% free cash flow margin Summary Increasing low end of full year guidance Simple ideas. Continued demand for mission critical solutions Powerful results. Ongoing expansion of recurring revenue base Well pos
Slide 15: Market-leading businesses in defensible niches
Market-leading businesses in defensible niches Decentralized Process-driven operating capital deployment environment 15
Slide 16: Appendix
Appendix
Slide 17: Q2 income statement metrics
Q2 income statement metrics Q2’23 Q2’24 Revenue $1,531 $1,717 +12%; organic +4% Gross profit $1,067 $1,193 Gross margin 69.7% 69.5% EBITDA $617 $695 +13% EBITDA margin 40.3% 40.5% Interest expense $35 $68 Tax rate 22.1% 20.9% Net earnings $442 $483 DEPS $4.12 $4.48 +9% In $ millions, except DEPS. Re
Slide 18: Roper's revenue composition
Roper’s revenue composition Disaggregated revenue reconciliation ($M) (from continuing operations) Technology Enabled Q2 2024 Application Software Network Software Products Roper Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Software related Recurring 587 700 258 263 4 6 850 970 Reoccurring 34 80
Slide 19: Reconciliations I
Reconciliations I Revenue and adjusted EBITDA reconciliation ($M) (from continuing operations) Q2 2021 Q2 2022 Q2 2023 Q2 2024 V% to '23 3-Year CAGR TTM 2024 GAAP revenue $ 1,190 $ 1,311 $ 1,531 $ 1,717 12% 13% $ 6,574 GAAP earnings before income taxes $ 257 $ 317 $ 464 $ 425 $ 1,829 Interest expens
Slide 20: Reconciliations II
Reconciliations II Revenue growth reconciliation (from continuing operations) Technology Q2 2024 Application Network Enabled Software Software Products Roper Organic 5% 2% 5% 4% Acquisitions/divestitures 16% - - 8% Foreign exchange - - - - Total revenue growth 21% 2% 4% 12% Segment reconciliation ($
Slide 21: Reconciliations III
Reconciliations III Adjusted DEPS reconciliation (from continuing operations) Q2 2023 Q2 2024 V% GAAP DEPS $ 3.36 $ 3.12 (7%) A Financial impacts associated with the minority investments in Indicor & Certinia (0.50) - B Amortization of acquisition-related intangible assets 1.25 1.35 Adjusted DEPS $
Slide 22: 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 23: Roper Technologies
Roper TECHNOLOGIES