Slide 1: Q1 2023 Financial results
Q1 2023 Financial results April 27, 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. Q1 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 Q1 enterprise highlights & financial results Segment detail & outlook Q2 & FY 2023 enterprise guidance Q&A 4
Slide 5: Q1 overview
Great start to 2023 Total revenue +15%; organic revenue +8% Expanding recurring revenue base Q1 overview 30%+ free cash flow margin Enhanced portfolio performing well Increasing full year guidance Well positioned for capital deployment 5
Slide 6: Q1 financial highlights
Q1 financial highlights Excellent first quarter results Total revenue +15%; organic revenue +8% EBITDA +15%; EBITDA margin 39.6% DEPS +19% to $3.90 Free cash flow +4%; +14% excluding legal settlement* Revenue EBITDA Free cash flow Legal settlement +15% +18% 3-year 3-year +19% CAGR CAGR 3-year CAGR $
Slide 7: Strong financial position
3/31/23 Cash $1,182 Strong financial Gross debt $6,664 position Net debt $5,482 TTM EBITDA $2,245 $4B+ capacity for capital deployment Gross debt-to-EBITDA (TTM) 3.0x Net debt-to-EBITDA (TTM) 2.4x 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 Q1 highlights Revenue Revenue +21%; organic revenue +6% Continued Deltek SaaS momentum; growth across GovCon & private sector markets Another quarter of strong SaaS adoption & record bookings for Aderant $402 $574 $628 $761 Vertafore performing well; MGA bolt-on Q1'20 Q1'21 Q1'2
Slide 10: Network Software
Network Software Q1 highlights Revenue Revenue +5%; organic revenue +6% DAT & Loadlink growth; premium offerings continued to drive increased ARPU iPipeline ARR growth; strong renewals & customer expansions $266 $287 $338 $355 Q1'20 Q1'21 Q1'22 Q1'23 Continued great performance by Foundry; EBITDA st
Slide 11: Technology Enabled Products
Technology Enabled Products Q1 highlights Revenue Revenue +13%; organic revenue +14% Continued strong execution & progress addressing supply chain challenges Record Neptune revenue & backlog; increasing momentum for ultrasonic meters $292 $295 $313 $354 Q1'20 Q1'21 Q1'22 Q1'23 Verathon growth across
Slide 12: 2023 enterprise guidance
2023 enterprise guidance
Slide 13: Raising full year 2023 guidance
Raising full year 2023 guidance Total revenue: 12%+ Organic: +6 - 7% Guidance Previously +5 - 6% update Adjusted DEPS: $16.10 - $16.30 Previously $15.90 - $16.20 Establishing Q2 2023 guidance Adjusted DEPS: $3.96 - $4.00 Guidance excludes impact of unannounced future acquisitions or divestitures. Gu
Slide 14: Summary
Great start to 2023 Total revenue +15%; organic revenue +8% Free cash flow +14% excluding legal settlement* Summary Increasing full year guidance Excellent first quarter results Simple ideas. Enhanced portfolio performing well Powerful results. Well positioned for capital deployment Significant M&A
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 Q1’22 Q1’23 Revenue $1,280 $1,470 +15%; organic +8% Gross profit $897 $1,019 Gross margin 70.1% 69.3% EBITDA $508 $582 +15% EBITDA margin 39.7% 39.6% Interest expense $53 $37 Tax rate 21.3% 21.6% Net earnings $348.5 $416.8 +20% DEPS $3.27 $3.90 +19% In $ millions, except
Slide 18: Roper's revenue composition
Roper’s revenue composition Disaggregated revenue reconciliation ($M) (from continuing operations) Technology Enabled Q1 2023 Application Software Network Software Products Roper Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Software related Recurring 462 581 237 256 3 4 701 840 Reoccurring 32 35
Slide 19: Reconciliations I
Reconciliations I Adjusted revenue and EBITDA reconciliation ($M) (from continuing operations) Q1 2020 Q1 2021 Q1 2022 Q1 2023 V% to '22 3-Year CAGR TTM 2023 GAAP revenue $ 957 $ 1,155 $ 1,280 $ 1,470 $ 5,562 Purchase accounting adjustment to acquired deferred revenue 2 1 - - - Adjusted revenue $ 95
Slide 20: Reconciliations II
Reconciliations II Revenue growth reconciliation (from continuing operations) Technology Q1 2023 Application Network Enabled Software Software Products Roper Organic 6% 6% 14% 8% Acquisitions/divestitures 16% - - 8% Foreign exchange (1%) (1%) (1%) (1%) Total revenue growth 21% 5% 13% 15% Adjusted se
Slide 21: Reconciliations III
Reconciliations III Adjusted DEPS reconciliation (from continuing operations) Q1 2022 Q1 2023 V% GAAP DEPS $ 2.22 $ 2.66 20% Purchase accounting adjustment to acquired commission expense (0.01) - Financial impacts associated with the minority investment in Indicor - (0.02) 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). Q1 2022A Q1 2023A Q2 2023E FY 2023E Pretax $ - $ 1 TBD TBD After-tax $ - $ (2) TBD TBD Per share $ - $ (0.02) TBD TBD B. Actual results and forecast of estimated amortization
Slide 23: Roper Technologies
Roper TECHNOLOGIES