Slide 1: Q1 2024 Financial results
Q1 2024 Financial results April 26, 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. Q1 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 Q1 enterprise highlights & financial results Segment detail & outlook Q2 & FY 2024 enterprise guidance Q&A 4
Slide 5: Q1 overview
Great start to 2024 +14% revenue, +8% organic revenue, +16% EBITDA Q1 overview +15% free cash flow; 31% free cash flow margin Completed Procare acquisition Continued strong execution & momentum Increasing full year guidance Well positioned for capital deployment Results are presented on an adjusted
Slide 6: Q1 financial highlights
Q1 financial highlights Excellent first quarter results Total revenue +14%; organic revenue +8% EBITDA +16%; EBITDA margin +60 bps to 40.2% DEPS +13% to $4.41 Free cash flow +15% to $513M; TTM +35% to $2.0B Revenue EBITDA TTM free cash flow +13% +13% +11% 3-year 3-year 3-year CAGR CAGR CAGR $1,156 $
Slide 7: Strong financial position
3/31/24 Cash $198 Strong financial Gross debt $7,722 position Net debt $7,524 TTM EBITDA $2,604 $4B+ capacity for capital deployment Gross debt-to-EBITDA (TTM) 3.0x Net debt-to-EBITDA (TTM) 2.9x Drawn on $3.5B revolver $1,750 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 Q1 highlights Revenue Revenue +18%; organic revenue +6% Deltek growth led by private sector cloud strength; launched GenAI-powered assistant Another great Aderant quarter; continued SaaS momentum & GenAI-focused innovation Vertafore performed well; continued ARR growth $574 $628
Slide 10: Network Software
Network Software Q1 highlights Revenue Revenue +5%; organic revenue +4% DAT & Loadlink declined, as expected; challenging freight market conditions continued Foundry declined, as expected, from industry strike impact; major product updates & AI/ML innovation $287 $338 $355 $371 iPipeline ARR growth
Slide 11: Technology Enabled Products
Technology Enabled Products Q1 highlights Revenue Revenue +17%; organic revenue +17% Another record Neptune quarter; continued strong ultrasonic meter growth & adoption of meter data management software BFlex, GlideScope & BladderScan drove $295 $313 $354 $415 outstanding Verathon growth Q1'21 Q1'22
Slide 12: 2024 enterprise guidance
2024 enterprise guidance
Slide 13: Increasing full year 2024 guidance
Increasing full year 2024 guidance Total revenue: ~12% Previously +11 - 12% Guidance Organic: ~6% update Previously +5 - 6% Adjusted DEPS: $18.05 - $18.25 Previously $17.85 - $18.15 Establishing Q2 2024 guidance Adjusted DEPS: $4.42 - $4.46 Guidance excludes impact of unannounced future acquisitions
Slide 14: Summary
Great start to 2024 +14% revenue, +8% organic revenue, +16% EBITDA +15% free cash flow; 31% free cash flow margin Completed Procare acquisition Summary Increasing full year guidance Simple ideas. Continued demand for mission critical solutions Powerful results. Ongoing expansion of recurring revenue
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: Q1 income statement metrics
Q1 income statement metrics Q1’23 Q1’24 Revenue $1,470 $1,681 +14%; organic +8% Gross profit $1,019 $1,181 Gross margin 69.3% 70.3% EBITDA $582 $676 +16% EBITDA margin 39.6% 40.2% Interest expense $37 $53 Tax rate 21.6% 21.6% Net earnings $417 $476 DEPS $3.90 $4.41 +13% In $ millions, except DEPS. R
Slide 18: Roper's revenue composition
Roper’s revenue composition Disaggregated revenue reconciliation ($M) (from continuing operations) Technology Enabled Q1 2024 Application Software Network Software Products Roper Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Software related Recurring 581 694 256 268 4 6 840 967 Reoccurring 35 54
Slide 19: Reconciliations I
Reconciliations I Adjusted revenue and EBITDA reconciliation ($M) (from continuing operations) Q1 2021 Q1 2022 Q1 2023 Q1 2024 V% to '23 3-Year CAGR TTM 2024 GAAP revenue $ 1,155 $ 1,280 $ 1,470 $ 1,681 14% 13% $ 6,389 Purchase accounting adjustment to acquired deferred revenue 1 - - - - Adjusted re
Slide 20: Reconciliations II
Reconciliations II Revenue growth reconciliation (from continuing operations) Technology Q1 2024 Application Network Enabled Software Software Products Roper Organic 6% 4% 17% 8% Acquisitions/divestitures 12% - - 6% Foreign exchange - - - - Total revenue growth 18% 5% 17% 14% Adjusted segment reconc
Slide 21: Reconciliations III
Reconciliations III Adjusted DEPS reconciliation (from continuing operations) Q1 2023 Q1 2024 V% GAAP DEPS $ 2.66 $ 3.54 33% Transaction-related expenses for completed acquisitions - 0.01 A Financial impacts associated with the minority investments in Indicor & Certinia (0.02) (0.45) B Amortization
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