10-KPeriod: FY2023

Accenture plc Annual Report, Year Ended Aug 31, 2023

Filed October 12, 2023For Securities:ACN

Summary

Accenture plc (ACN) reported revenues of $64.1 billion for fiscal year 2023, representing a 4% increase in U.S. dollars and an 8% increase in local currency, indicating resilient growth despite economic uncertainties. The company saw strong performance in its Managed Services segment, with revenue growth of 11% in U.S. dollars (14% in local currency), driven by demand for application modernization, cloud enablement, and cybersecurity services. Consulting revenue experienced a slight decrease of 1% in U.S. dollars but grew 3% in local currency, impacted by a slower pace of client spending on shorter-duration contracts. Geographically, Europe and Growth Markets demonstrated robust local currency growth, while North America showed more modest gains. The company also reported new bookings of $72.2 billion, signaling continued client commitment to transformation initiatives. Accenture returned $7.2 billion to shareholders through share repurchases and dividends, underscoring its commitment to capital distribution.

Financial Highlights

56 data points
Beta

Revenue

$64.11B

32.3% Gross Margin

Net Income

$6.87B

10.7% Net Margin

EPS (Diluted)

$10.77

Total Assets

$51.25B

Cash & Equivalents

$9.05B

Free Cash Flow

$9.00B

Financial Statements
Beta
Revenue$64.11B
Cost of Revenue$43.38B
Gross Profit$20.73B
R&D Expenses$1.30B
Operating Expenses$55.30B
Operating Income$8.81B
Interest Expense$47.52M
Net Income$6.87B
EPS (Basic)$10.90
EPS (Diluted)$10.77
Shares Outstanding (Basic)630.61M
Shares Outstanding (Diluted)638.59M

Key Highlights

  • 1Revenues reached $64.1 billion, with 8% growth in local currency, demonstrating resilience in a challenging economic environment.
  • 2Managed Services revenue grew significantly by 11% in USD (14% in local currency), driven by demand for modernization, cloud, and cybersecurity.
  • 3Consulting revenue saw a slight decline in USD but a 3% growth in local currency, impacted by slower client spending on shorter-term projects.
  • 4Strong local currency revenue growth was observed in Europe (11%) and Growth Markets (12%), indicating broad geographic demand.
  • 5New bookings totaled $72.2 billion, up 1% in USD (5% in local currency), reflecting ongoing client investment in transformation.
  • 6The company returned $7.2 billion to shareholders via share repurchases ($4.3 billion) and dividends ($2.8 billion).
  • 7Operating margin was 13.7% (15.4% adjusted), impacted by $1.1 billion in business optimization costs.

Frequently Asked Questions

Accenture reported revenues of $64.1 billion for fiscal year 2023, an increase of 4% in U.S. dollars and 8% in local currency compared to fiscal year 2022. This growth was primarily driven by strong performance in Managed Services and robust demand in Europe and Growth Markets.

Managed Services revenue grew by 11% in U.S. dollars (14% in local currency), indicating strong demand for ongoing services. Consulting revenue decreased by 1% in U.S. dollars but grew by 3% in local currency, reflecting a slower pace of client spending on shorter engagements.

Accenture returned a total of $7.2 billion to shareholders in fiscal year 2023, consisting of $4.3 billion in share repurchases and $2.8 billion in dividends. The company expects to continue its significant share repurchase program in fiscal year 2024.

Accenture's reported operating margin for fiscal year 2023 was 13.7%, down from 15.2% in fiscal year 2022. This was primarily due to $1.1 billion in business optimization costs recorded during the year. Excluding these costs, the adjusted operating margin was 15.4%, an increase of 20 basis points.