Slide 1: Q2 2023 Financial results
Q2 2023 Financial results July 21, 2023
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 the minority investment in In
Slide 4: Agenda
Agenda Q2 enterprise highlights & financial results Segment detail & outlook Q3 & FY 2023 enterprise guidance Q&A 4
Slide 5: Q2 overview
Another great quarter Total revenue +17%; organic revenue +9% Expanding recurring revenue base Q2 overview Free cash flow +17% Enhanced portfolio performing well Increasing full year guidance Well positioned for capital deployment 5
Slide 6: Q2 financial highlights
Q2 financial highlights Excellent second quarter results Total revenue +17%; organic revenue +9% EBITDA +20%; EBITDA margin +100 bps to 40.3% DEPS +20% to $4.12 Free cash flow +17% Revenue EBITDA Free cash flow* +17% +18% 3-year 3-year +11% CAGR CAGR 3-year CAGR $953 $1,190 $1,311 $1,531 $375 $469 $
Slide 7: Strong financial position
6/30/23 Cash $1,463 Strong financial Gross debt $6,666 position Net debt $5,203 TTM EBITDA $2,346 $4B+ capacity for capital deployment Gross debt-to-EBITDA (TTM) 2.8x Net debt-to-EBITDA (TTM) 2.2x Drawn on $3.5B revolver $0 In $ millions. Numbers may not foot due to rounding. Results are presented o
Slide 8: Segment detail & outlook
Segment detail & outlook
Slide 9: Application Software
Application Software Q2 highlights Revenue Revenue +23%; organic revenue +6% Deltek GovCon & private sector growth fueled by continued SaaS strength; Replicon bolt-on announced SaaS adoption drove another record quarter for Aderant; launched GenAI-powered solution $395 $588 $627 $770 Strong Vertafor
Slide 10: Network Software
Network Software Q2 highlights Revenue Revenue +4%; organic revenue +5% Continued DAT & Loadlink growth despite challenging freight market conditions; new GenAI-enabled solutions Strong customer retention & expansion drove $258 $298 $343 $358 iPipeline ARR growth Q2'20 Q2'21 Q2'22 Q2'23 Another stro
Slide 11: Technology Enabled Products
Technology Enabled Products Q2 highlights Revenue Revenue +18%; organic revenue +19% Exceptional growth across segment; successfully managing remaining supply chain challenges Another record quarter for Neptune; continued robust ultrasonic meter growth $300 $304 $340 $403 BFlex, GlideScope & Bladder
Slide 12: 2023 enterprise guidance
2023 enterprise guidance
Slide 13: Raising full year 2023 guidance
Raising full year 2023 guidance Total revenue: ~13% Previously 12%+ Guidance Organic: ~7% update Previously +6 - 7% Adjusted DEPS: $16.36 - $16.50 Previously $16.10 - $16.30 Establishing Q3 2023 guidance Adjusted DEPS: $4.16 - $4.20 Guidance excludes impact of unannounced future acquisitions or dive
Slide 14: Summary
Another great quarter Total revenue +17%; organic revenue +9% Free cash flow +17% Summary Increasing full year guidance Excellent second quarter results Simple ideas. Enhanced portfolio performing well Powerful results. Well positioned for capital deployment Substantial M&A firepower Evaluating many
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 Q2’22 Q2’23 Revenue $1,311 $1,531 +17%; organic +9% Gross profit $912 $1,067 Gross margin 69.5% 69.7% EBITDA $515 $617 +20% EBITDA margin 39.3% 40.3% Interest expense $45 $35 Tax rate 20.1% 22.1% Net earnings $366 $442 +21% DEPS $3.43 $4.12 +20% In $ millions, except DEPS
Slide 18: Roper's revenue composition
Roper’s revenue composition Disaggregated revenue reconciliation ($M) (from continuing operations) Technology Enabled Q2 2023 Application Software Network Software Products Roper Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Software related Recurring 458 587 244 258 3 4 705 850 Reoccurring 29 34
Slide 19: Reconciliations I
Reconciliations I Adjusted revenue and EBITDA reconciliation ($M) (from continuing operations) Q2 2020 Q2 2021 Q2 2022 Q2 2023 V% to '22 3-Year CAGR TTM 2023 GAAP revenue $ 952 $ 1,190 $ 1,311 $ 1,531 $ 5,782 Purchase accounting adjustment to acquired deferred revenue 1 - - - - Adjusted revenue $ 95
Slide 20: Reconciliations II
Reconciliations II Revenue growth reconciliation (from continuing operations) Technology Q2 2023 Application Network Enabled Software Software Products Roper Organic 6% 5% 19% 9% Acquisitions/divestitures 16% - - 8% Foreign exchange - - - - Total revenue growth 23% 4% 18% 17% Adjusted segment reconc
Slide 21: Reconciliations III
Reconciliations III Adjusted DEPS reconciliation (from continuing operations) Q2 2022 Q2 2023 V% GAAP DEPS $ 2.11 $ 3.36 59% Purchase accounting adjustment to acquired commission expense (0.01) - Financial impacts associated with the minority investment in Indicor - (0.50) A Amortization of acquisit
Slide 22: Footnotes
Footnotes A. Financial impacts associated with the minority investment in Indicor as shown below ($M, except per share data). Q2 2022A Q2 2023A Q3 2023E FY 2023E Pretax $ - $ (66) TBD TBD After-tax $ - $ (53) TBD TBD Per share $ - $ (0.50) TBD TBD B. Actual results and forecast of estimated amortiza
Slide 23: Roper Technologies
Roper TECHNOLOGIES