Roper Technologies, Inc. · NASDAQ:ROP
Roper Technologies — Q4 2024 Earnings Presentation
28 slides from Roper Technologies's earnings presentation, Jan 30, 2025
Slide 1: Q4 2024 Financial results
Q4 2024 Financial results January 30, 2025
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. Q4 results adjusted for the following items: 1. Amortization of acquisition-related intangible assets 2. Transaction-related expenses associated with completed acquisit
Slide 4: Agenda
Agenda Q4 & 2024 enterprise highlights & financial results 2024 segment detail & 2025 outlook 2025 enterprise guidance Q&A 4
Slide 5: Roper entering 2025 on strong 2024
Strong 2024 Free cash flow +16%; 32% free cash flow margin Deployed $3.6B toward high-quality vertical software acquisitions Roper entering +14% revenue, +8% M&A contribution; +6% organic Upgraded key talent, expanded M&A function, 2025 advanced operating model & innovated with GenAI Building upon a
Slide 6: Long-term compounding growth algorithm
Long-term compounding growth algorithm Investor Day (March 2023) 2024 Double-digit revenue growth +14% revenue growth MSD+ organic growth +6% organic Patient & disciplined capital deployment +8% M&A contribution + + 45%+ operating leverage 41% core operating leverage High margin niche leaders 37% op
Slide 7: Q4 income statement metrics
Q4 income statement metrics Q4’23 Q4’24 Revenue $1,613 $1,877 +16%; +9% M&A contribution; +7% organic Gross profit $1,125 $1,282 Gross margin 69.7% 68.3% EBITDA $659 $744 +13% EBITDA margin 40.8% 39.6% Core -30 bps Interest expense $50 $71 Tax rate 20.6% 20.6% Net earnings $471 $520 +10% DEPS $4.37
Slide 8: Q4 segment results
Q4 segment results Application Software Network Software Technology Enabled Products Revenue Revenue Revenue +24% +3% +12% vs PY vs PY vs PY _____ _____ _____ +6% +3% +12% organic organic organic $605 $740 $852 $1,057 $323 $350 $363 $374 $329 $341 $399 $447 Q4'21 Q4'22 Q4'23 Q4'24 Q4'21 Q4'22 Q4'23
Slide 9: 2024 financial highlights
2024 financial highlights Another strong year for Roper Total revenue +14%; M&A contribution +8%; organic revenue +6% EBITDA +13%; EBITDA margin 40.2%; core EBITDA margin flat DEPS +10% to $18.31 Free cash flow +16% to $2.3B; 32% free cash flow margin Revenue EBITDA Free cash flow +13% +13% +13% 3-y
Slide 10: Strong financial position
12/31/24 Cash $188 Strong financial Gross debt $7,623 position Net debt $7,435 $5B+ capacity for capital TTM EBITDA $2,832 deployment Net debt-to-EBITDA (TTM) 2.6x Drawn on $3.5B revolver $125 In $ millions. Numbers may not foot due to rounding. Results are presented on an adjusted (non-GAAP) and co
Slide 11: Segment detail & outlook
Segment detail & outlook
Slide 12: Application Software
Application Software FY 2024 highlights Revenue Revenue +21%; M&A revenue contribution +16%; organic revenue +6% Deltek continued cloud momentum & GenAI innovation; enterprise bookings accelerated in H2 Excellent year for Aderant; continued SaaS momentum & GenAI-focused innovation $2,368 $2,640 $3,1
Slide 13: Network Software
Network Software FY 2024 highlights Revenue Revenue +3%; organic revenue +3% DAT & Loadlink declined, as expected; freight market stabilized; continued network-enhancing innovation; Trucker Tools bolt-on Post-strike industry recovery drove Foundry declines, as expected; AI/ML innovation & major $1,2
Slide 14: Technology Enabled Products
Technology Enabled Products FY 2024 highlights Revenue Revenue +9%; organic revenue +9% Outstanding year for Verathon; continued momentum across BFlex, GlideScope & BladderScan product families Neptune continued strong ultrasonic meter growth $1,243 $1,354 $1,552 $1,695 & meter data management softw
Slide 15: 2025 enterprise guidance
2025 enterprise guidance
Slide 16: Establishing 2025 guidance
FY 2025 Total revenue: 10%+ Establishing 2025 Organic: +6 - 7% Adjusted DEPS: $19.75 - $20.00 guidance Q1 2025 Adjusted DEPS: $4.70 - $4.74 Guidance excludes impact of unannounced future acquisitions or divestitures. Guidance presented on an adjusted (non-GAAP) and continuing operations basis. See a
Slide 17: Year-end summary
Another great year Free cash flow +16%; 32% free cash flow margin Deployed $3.6B toward high-quality vertical software acquisitions +14% revenue, +8% M&A contribution; +6% organic Year-end Upgraded key talent, expanded M&A function, advanced operating model & innovated with GenAI summary Positive mo
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 2023 2024 Revenue $6,178 $7,039 +14%; +8% M&A contribution; +6% organic Gross profit $4,307 $4,878 Gross margin 69.7% 69.3% EBITDA $2,511 $2,832 +13% EBITDA margin 40.6% 40.2% Core flat Interest expense $165 $259 Tax rate 21.6% 21.0% Net earnings $1,795 $1,978 +10%
Slide 21: Roper's revenue composition
Roper’s revenue composition Disaggregated revenue reconciliation ($M) (from continuing operations) Technology Enabled Q4 2024 Application Software Network Software Products Roper Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 Software related Recurring $ 656 $ 754 $ 262 $ 273 $ 5 $ 8 $ 923 $ 1,034
Slide 22: Reconciliations I
Reconciliations I Revenue growth reconciliation Disaggregated revenue - organic growth (from continuing operations) (from continuing operations) Technology Technology Q4 2024 Application Network Enabled Q4 2024 Application Network Enabled Software Software Products Roper Software Software Products R
Slide 23: Reconciliations II
Reconciliations II Adjusted revenue and EBITDA reconciliation ($M) (from continuing operations) Q4 2023 Q4 2024 V% to '23 FY 2021 FY 2022 FY 2023 FY 2024 V% to '23 3-Year CAGR GAAP revenue $ 1,613 $ 1,877 16% $ 4,834 $ 5,372 $ 6,178 $ 7,039 14% 13% Purchase accounting adjustment to acquired deferred
Slide 24: Reconciliations III
Reconciliations III Segment reconciliation ($M) (from continuing operations) Application Software Network Software Technology Enabled Products Q4'21 Q4'22 Q4'23 Q4'24 Q4'21 Q4'22 Q4'23 Q4'24 Q4'21 Q4'22 Q4'23 Q4'24 GAAP revenue $ 605 $ 740 $ 852 $ 1,057 $ 323 $ 350 $ 363 $ 374 $ 329 $ 341 $ 399 $ 44
Slide 25: Reconciliations IV
Reconciliations IV Adjusted EBITDA margin and leverage reconciliation (from continuing operations) Application Software Roper Q4 FY Q4 FY 2023 adjusted EBITDA margin 43.2% 43.7% 40.8% 40.6% Core margin impact +30 bps +40 bps (30 bps) 0 bps Margin impact associated with businesses owned for less than
Slide 26: Reconciliations V
Reconciliations V Adjusted net earnings reconciliation ($M) (from continuing operations) Q4 2023 Q4 2024 V% FY 2023 FY 2024 V% GAAP net earnings $ 378 $ 462 22% $ 1,368 $ 1,549 13% Restructuring-related expenses associated with the Syntellis ('23) and Transact ('24) acquisitions - - 7 7 Transaction-
Slide 27: 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 investment in Indicor, as these potential impacts
Slide 28: Roper Technologies
Roper TECHNOLOGIES