01—Abstract
Summary
Summary of the 10-K filed October 12, 2023. Cited figures are marked; the original filing is the authoritative source.
Accenture plc (ACN) reported revenues of $64.1 billiona 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%b 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 billionc, 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.
02—Key points
Key Highlights
- Revenues reached $64.1 billion, with 8% growth in local currency, demonstrating resilience in a challenging economic environment.
- Managed Services revenue grew significantly by 11% in USD (14% in local currency), driven by demand for modernization, cloud, and cybersecurity.
- Consulting revenue saw a slight decline in USD but a 3% growth in local currency, impacted by slower client spending on shorter-term projects.
- Strong local currency revenue growth was observed in Europe (11%) and Growth Markets (12%), indicating broad geographic demand.
- New bookings totaled $72.2 billion, up 1% in USD (5% in local currency), reflecting ongoing client investment in transformation.
- The company returned $7.2 billion to shareholders via share repurchases ($4.3 billion) and dividends ($2.8 billion).
- Operating margin was 13.7% (15.4% adjusted), impacted by $1.1 billion in business optimization costs.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Accenture plc kept $0.11.
- Revenue$64.11B100.0%
- Cost of revenue−$43.38B67.7%
- Gross profit$20.73B32.3%
- Operating costs−$11.92B18.6%
- Operating income$8.81B13.7%
- Interest, other & tax−$1.94B3.0%
- Net income$6.87B10.7%
Where FY2023 revenue went
$64.11B- Cost of revenue: $43.38B, 68% of revenue
- Other operating costs: $10.62B, 17% of revenue
- Net income: $6.87B, 11% of revenue
- R&D: $1.30B, 2.0% of revenue
- Interest, other & tax: $1.94B, 3.0% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed October 12, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $64.11B$61.59B | +4.1% |
| Cost of Revenue | $43.38B$41.89B | +3.6% |
| Gross Profit | $20.73B$19.70B | +5.2% |
| R&D Expenses | $1.30B$1.12B | +15.6% |
| Operating Expenses | $55.30B$52.23B | +5.9% |
| Operating Income | $8.81B$9.37B | −5.9% |
| Interest Expense | $47.52M$47.32M | +0.4% |
| Net Income | $6.87B$6.88B | −0.1% |
| EPS (Basic) | $10.90$10.87 | +0.3% |
| EPS (Diluted) | $10.77$10.71 | +0.6% |
| Shares Outstanding (Basic) | 630.61M632.76M | −0.3% |
| Shares Outstanding (Diluted) | 638.59M642.84M | −0.7% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in fiscal year 2023?
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.
How did the different service lines (Consulting vs. Managed Services) perform?
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.
What is Accenture's approach to returning capital to shareholders?
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.
What factors impacted Accenture's operating margin in fiscal year 2023?
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.
06—Continue