Slide 1: Q2 2022 Financial Results
Q2 2022 FINANCIAL RESULTS JULY 22, 2022 SIMPLE IDEAS. POWERFUL RESULTS.
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) Basis. During Q2, Roper Announced an Agreement to Sell a Majority Stake in its Industrial Businesses. Results for these Businesses are Reported as Discontinued Operations for All Periods Presented. Unl
Slide 4: Roper Conference Call
ROPER CONFERENCE CALL • Q2 Enterprise Highlights & Financial Results • Segment Detail & Outlook • Q3 & FY 2022 Enterprise Guidance • Q&A PAGE 4
Slide 5: Q2 Summary
Q2 SUMMARY • Another Great Quarter for Roper – +11% Organic Revenue Growth; Broad-Based Across All Segments – +12% Software Recurring Revenue Growth – Continued Strong Product Demand Across Medical & Water Businesses • Announced Sale of Majority Stake in Industrial Businesses; Meaningfully Enhances
Slide 6: Q2 Diluted Earnings Per Share
Q2 DILUTED EARNINGS PER SHARE (COMPARISON TO GUIDANCE - INCLUDING INDUSTRIAL BUSINESSES) Q2’22 DEPS Continuing Operations $3.43 Industrial Businesses in Discontinued Operations $0.52 Total Including Industrial Businesses in Discontinued Operations $3.95 Guidance $3.80 - $3.84 Results are presented o
Slide 7: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS (CONTINUING OPERATIONS) • Revenue +10%; Organic Revenue +11% • EBITDA +10%; DEPS +16% • Net Working Capital (17)% of Q2 Annualized Revenue • Free Cash Flow (19)% to $252M; (4)% Excluding Cash Tax Impact of Section 174* • New 5-Year, $3.5B Revolving Credit Facility Completed R
Slide 8: Segment Detail & Outlook
SEGMENT DETAIL & OUTLOOK
Slide 9: Roper's Go-Forward Portfolio
ROPER’S GO-FORWARD PORTFOLIO Application Software Network Software Technology Enabled Products % of Roper Q2’22 Organic Q2’22 Revenue Revenue Growth 61% of Roper Revenue & Recurring Software 54% +12% 82% of Software Revenue Reoccurring Software 7% +5% Non-Recurring Software 14% +4% Total Software 74
Slide 10: Application Software
APPLICATION SOFTWARE REVENUE Q2 HIGHLIGHTS +7% • +7% Organic Revenue Growth Driven by Continued Strong vs PY _____ Recurring Revenue +7% • Deltek Continued SaaS Momentum; Growth Across Organic GovCon and Professional Services End Markets • Another Great Vertafore Quarter; Strong Recurring Revenue Gr
Slide 11: Network Software
NETWORK SOFTWARE REVENUE Q2 HIGHLIGHTS +15% • +15% Organic Revenue Growth Driven by Continued vs PY _____ Recurring Momentum +15% Organic • Exceptional Freight Matching Growth (DAT and Loadlink); Increased Revenue, Customer Count, and Revenue Per Customer Across Carrier and Broker Network Segments $
Slide 12: Technology Enabled Products
TECHNOLOGY ENABLED PRODUCTS REVENUE Q2 HIGHLIGHTS +12% • +13% Organic Revenue Growth vs PY _____ +13% • Another Record Neptune Quarter; Continued Strong Organic Adoption of Ultrasonic Meters; Tremendous Execution • Medical Products Growth Constrained by Supply Chain Challenges; Strong Customer Deman
Slide 13: 2022 Enterprise Guidance
2022 ENTERPRISE GUIDANCE
Slide 14: Guidance Update
GUIDANCE UPDATE (CONTINUING OPERATIONS) Adjusted DEPS Low End High End Previous FY’22 Guidance (Including Industrial Businesses) $15.50 $15.75 FY’22 Industrial Businesses in Discontinued Operations $(2.30) Previous FY’22 Guidance (Continuing Operations) $13.20 $13.45 New FY’22 Guidance (Continuing O
Slide 15: Summary
SUMMARY • Another Strong Quarter – +11% Organic Revenue Growth – EBITDA +10%; DEPS +16% – Free Cash Flow +17% 3-Year CAGR • Improved Full Year Outlook • Majority Sale of Industrial Businesses Meaningfully Enhances Portfolio Quality – Higher & More Resilient Organic Growth; Improved Working Capital D
Slide 16: Appendix
APPENDIX
Slide 17: Income Statement Metrics
INCOME STATEMENT METRICS (CONTINUING OPERATIONS) Q1’22 Q2’22 Revenue $1,280 $1,311 Gross Profit $897 $912 Gross Margin 70.1% 69.5% EBITDA $508 $515 EBITDA Margin 39.7% 39.3% Interest Expense $53 $45 Tax Rate 21.3% 20.1% Net Earnings $349 $366 DEPS $3.27 $3.43 In $ millions, except DEPS. Results are
Slide 18: Q2 Metrics – Previous Guidance Basis
Q2 METRICS – PREVIOUS GUIDANCE BASIS (INCLUDING DISCONTINUED OPERATIONS FROM INDUSTRIAL BUSINESSES) Q2’22 Application Software $630 Network Software & Systems $370 Measurement & Analytical Solutions $422 Process Technologies $143 Revenue $1,566 Application Software $166 Network Software & Systems $1
Slide 19: Roper's Revenue Composition
ROPER’S REVENUE COMPOSITION (CONTINUING OPERATIONS) We disaggregate our revenues by reportable segment into four categories: (i) recurring revenue comprised of SaaS subscriptions and software maintenance; (ii) reoccurring revenue comprised of transactional and volume-based fees related to software l
Slide 20: Reconciliations I
RECONCILIATIONS I Adjusted Revenue and EBITDA Reconciliation ($M) (From Continuing Operations) Q2 2019* Q2 2020 Q2 2021 Q2 2022 V% to '21 3-Year CAGR GAAP Revenue $ 878 $ 952 $ 1,190 $ 1,311 10% 14% Purchase accounting adjustment to acquired deferred revenue 2 1 - - Adjusted Revenue $ 879 $ 953 $ 1,
Slide 21: Reconciliations II
RECONCILIATIONS II Adjusted Revenue Growth Reconciliation (From Continuing Operations) Technology Q2 2022 Application Network Enabled Software Software Products Roper Organic 7% 15% 13% 11% Acquisitions/Divestitures 1% 1% - 1% Foreign Exchange (1%) (1%) (1%) (1%) Total Adjusted Revenue Growth 7% 15%
Slide 22: Reconciliations III
RECONCILIATIONS III Adjusted Segment Reconciliation ($M) (From Continuing Operations) Application Software Network Software Technology Enabled Products Q2'19 Q2'20 Q2'21 Q2'22 Q2'19 Q2'20 Q2'21 Q2'22 Q2'19* Q2'20 Q2'21 Q2'22 GAAP Revenue $ 391 $ 395 $ 588 $ 627 $ 204 $ 257 $ 298 $ 343 $ 283 $ 300 $
Slide 23: Reconciliations IV
RECONCILIATIONS IV Adjusted DEPS Reconciliation Discontinued Continuing Operations Operations Q2 2021 Q2 2022 V% Q2 2022 GAAP DEPS $ 1.92 $ 2.11 10% $ 0.41 2021 Divestitures (TransCore, Zetec, CIVCO Radiotherapy) B - - 0.10 A Purchase accounting adjustment to acquired commission expense (0.01) (0.01
Slide 24: Reconciliations V
RECONCILIATIONS V Adjusted Revenue, Gross Profit and EBITDA Reconciliation ($M) Adjusted Net Earnings Reconciliation ($M) (From Continuing Operations) (From Continuing Operations) Q1 2022 Q2 2022 Q1 2022 Q2 2022 Adjusted Revenue Reconciliation GAAP Net Earnings $ 236 $ 225 GAAP Revenue $ 1,280 $ 1,3
Slide 25: Reconciliations VI
RECONCILIATIONS VI Adjusted Segment Reconciliation ($M) (Previous Guidance Basis; Includes Discontinued Operations) Network Measurement Application Software & & Analytical Process Software Systems Solutions Technologies Segment Total Q2'22 Q2'22 Q2'22 Q2'22 Q2'21 GAAP Revenue $ 630 $ 370 $ 422 $ 143
Slide 26: Footnotes
FOOTNOTES A. 2022 actual results and 2022 forecast of estimated acquisition-related fair value adjustments to commission expense related to the acquisition of Vertafore as shown below ($M, except per share data). These adjustments are taxed at 21%. Q2 2021A Q1 2022A Q2 2022A Q3 2022E FY 2022E Pretax
Slide 27: Roper Technologies
Roper TECHNOLOGIES