01—Abstract
Summary
Summary of the 10-K filed October 10, 2024. Cited figures are marked; the original filing is the authoritative source.
Accenture plc (ACN) reported revenues of $64.9 billiona 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 billionb, with managed services bookings up significantly, indicating future revenue potential.
The company returned $7.8 billionc 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.
02—Key points
Key Highlights
- Revenue 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.
- New 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.
- Operating margin improved to 14.8% (15.5% adjusted) from 13.7% in fiscal 2023, demonstrating enhanced profitability through cost management and operational efficiencies.
- Accenture 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.
- The company returned substantial capital to shareholders, amounting to $7.8 billion through $4.5 billion in share repurchases and $3.2 billion in dividends.
- While 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.
- The 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%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Accenture plc kept $0.11.
- Revenue$64.90B100.0%
- Cost of revenue−$43.73B67.4%
- Gross profit$21.16B32.6%
- Operating costs−$11.57B17.8%
- Operating income$9.60B14.8%
- Interest, other & tax−$2.33B3.6%
- Net income$7.26B11.2%
Where FY2024 revenue went
$64.90B- Cost of revenue: $43.73B, 67% of revenue
- Other operating costs: $10.42B, 16% of revenue
- Net income: $7.26B, 11% of revenue
- R&D: $1.15B, 1.8% of revenue
- Interest, other & tax: $2.33B, 3.6% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed October 10, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $64.90B$64.11B | +1.2% |
| Cost of Revenue | $43.73B$43.38B | +0.8% |
| Gross Profit | $21.16B$20.73B | +2.1% |
| R&D Expenses | $1.15B$1.30B | −11.4% |
| Operating Expenses | $55.30B$55.30B | 0.0% |
| Operating Income | $9.60B$8.81B | +8.9% |
| Interest Expense | $58.97M$47.52M | +24.1% |
| Net Income | $7.26B$6.87B | +5.7% |
| EPS (Basic) | $11.57$10.90 | +6.1% |
| EPS (Diluted) | $11.44$10.77 | +6.2% |
| Shares Outstanding (Basic) | 627.85M630.61M | −0.4% |
| Shares Outstanding (Diluted) | 635.94M638.59M | −0.4% |
05—Questions
Frequently Asked Questions
How did Accenture's revenue perform in fiscal year 2024, and what were the key drivers?
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.
What is Accenture's outlook on Artificial Intelligence (AI) and its impact on the business?
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.
How did Accenture manage profitability and return capital to shareholders?
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.
What are the primary risks Accenture faces, as highlighted in the filing?
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.
06—Continue