10-KPeriod: FY2024

Accenture plc Annual Report, Year Ended Aug 31, 2024

Filed October 10, 2024For Securities:ACN

Summary

Accenture plc (ACN) reported revenues of $64.9 billion for fiscal year 2024, a modest 1% increase in U.S. dollars and 2% in local currency, reflecting a challenging macroeconomic environment that led clients to prioritize large-scale transformations over shorter-term projects. Despite revenue headwinds, the company demonstrated improved profitability with an operating margin of 14.8% (15.5% adjusted), up from 13.7% in the prior year. This improvement was driven by disciplined cost management, lower business optimization costs, and favorable foreign currency impacts in some regions. New bookings showed strong momentum, increasing 13% to $81.2 billion, with managed services bookings up significantly, indicating future revenue potential. The company returned $7.8 billion to shareholders through share repurchases and dividends, underscoring its commitment to capital return. Accenture continues to invest heavily in talent development, R&D, and strategic acquisitions, with $1.1 billion spent on learning, $1.2 billion on R&D, and $6.6 billion across 46 acquisitions, positioning itself for future growth, particularly with the strategic focus on AI and digital transformation.

Financial Highlights

56 data points
Beta

Revenue

$64.90B

32.6% Gross Margin

Net Income

$7.26B

11.2% Net Margin

EPS (Diluted)

$11.44

Total Assets

$55.93B

Cash & Equivalents

$5.00B

Free Cash Flow

$8.61B

Financial Statements
Beta
Revenue$64.90B
Cost of Revenue$43.73B
Gross Profit$21.16B
R&D Expenses$1.15B
Operating Expenses$55.30B
Operating Income$9.60B
Interest Expense$58.97M
Net Income$7.26B
EPS (Basic)$11.57
EPS (Diluted)$11.44
Shares Outstanding (Basic)627.85M
Shares Outstanding (Diluted)635.94M

Key Highlights

  • 1Revenue for fiscal year 2024 reached $64.9 billion, a 1% increase in U.S. dollars and 2% in local currency, indicating moderate top-line growth amidst economic uncertainty.
  • 2New bookings surged by 13% year-over-year to $81.2 billion, signaling strong future demand, particularly in managed services which saw a 23% increase in U.S. dollar bookings.
  • 3Operating margin improved to 14.8% (15.5% adjusted) from 13.7% in fiscal 2023, demonstrating enhanced profitability through cost management and operational efficiencies.
  • 4Accenture invested significantly in its future, with $6.6 billion allocated to 46 strategic acquisitions, $1.2 billion in research and development, and $1.1 billion in learning and professional development.
  • 5The company returned substantial capital to shareholders, amounting to $7.8 billion through $4.5 billion in share repurchases and $3.2 billion in dividends.
  • 6While consulting revenues saw a slight decline of 1% in local currency, managed services revenues grew by 5% in local currency, reflecting a shift in client priorities towards ongoing operational support and transformation.
  • 7The company is actively managing its workforce, with utilization remaining strong at 92% and an employee base of approximately 774,000. Annualized voluntary attrition remained consistent at 13%.

Frequently Asked Questions

Accenture's revenue for fiscal year 2024 was $64.9 billion, representing a 1% increase in U.S. dollars and a 2% increase in local currency compared to fiscal year 2023. This modest growth was influenced by macroeconomic uncertainty, leading clients to prioritize larger, long-term transformation projects. Growth was particularly strong in the Health & Public Service and Resources sectors, while Communications, Media & Technology and Financial Services experienced declines. Managed services saw solid revenue growth, offsetting a slight decrease in consulting revenues.

Accenture views AI, particularly generative AI, as a transformative era poised to drive significant growth for both the company and its clients. They are making substantial investments in AI research and development and are incorporating AI into their services and solutions. Accenture believes that businesses need to focus on talent to leverage AI effectively, and they are committed to upskilling their workforce in AI capabilities to meet evolving client demands.

Accenture improved its profitability, achieving an operating margin of 14.8% (15.5% adjusted) in fiscal year 2024, up from 13.7% in the prior year. This was achieved through effective cost management, including lower business optimization costs, and disciplined operational execution. The company also demonstrated a strong commitment to shareholder returns, distributing $7.8 billion through share repurchases totaling $4.5 billion and dividends of $3.2 billion.

Accenture faces several key risks, including volatile global economic and geopolitical conditions impacting client spending, intense competition from various types of IT service providers and consultancies, and risks associated with the rapid evolution and adoption of AI technologies, including potential legal, reputational, and regulatory challenges. Additionally, the company highlights risks related to cybersecurity threats, the ability to attract and retain skilled talent, and managing a large, geographically diverse workforce and operations. Failure to protect client data and manage intellectual property are also significant concerns.