01—Abstract
Summary
Summary of the 10-Q filed December 16, 2022. Cited figures are marked; the original filing is the authoritative source.
Accenture plc reported solid results for the first quarter of fiscal year 2023, ending November 29, 2022.
Revenues grew 5% in U.S. dollars to $15.7 billiona, and a more impressive 15% in local currency, indicating strong underlying business performance despite currency headwinds. Diluted earnings per share (EPS) increased by 11% year-over-year to $3.08, demonstrating effective operational management and profitability.
The company's performance was driven by robust demand across its services, particularly in consulting and managed services, with double-digit local currency growth in key geographic markets including North America, Europe, and Growth Markets. Accenture also demonstrated a commitment to returning capital to shareholders, with $2.1 billionb returned through share purchases and dividends, underscoring financial discipline and confidence in future performance.
02—Key points
Key Highlights
- Revenue increased 5% to $15.7 billion in U.S. dollars and 15% in local currency, showing strong underlying demand.
- Diluted Earnings Per Share (EPS) rose 11% to $3.08, indicating improved profitability.
- New bookings reached $16.2 billion, with a 6% increase in local currency, suggesting continued client engagement.
- Operating margin expanded to 16.5% from 16.3% in the prior year's quarter.
- Cash returned to shareholders was substantial at $2.1 billion, comprising $1.4 billion in share purchases and $706 million in dividends.
- Workforce grew to approximately 738,000 employees, up from 674,000 in the prior year, reflecting business expansion.
- Voluntary attrition decreased to 13% from 17% in the prior year, indicating improved employee retention.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2023, Accenture plc kept $0.12.
- Revenue$15.75B100.0%
- Cost of revenue−$10.56B67.1%
- Gross profit$5.19B32.9%
- Operating costs−$2.59B16.5%
- Operating income$2.59B16.5%
- Interest, other & tax−$628.1M4.0%
- Net income$1.96B12.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2023filed December 16, 2022Financial Statements
Q1 FY2023 against Q1 FY2022
| Line item | Q1 FY2023Q1 FY2022 | Change |
|---|---|---|
| Revenue | $15.75B$14.97B | +5.2% |
| Cost of Revenue | $10.56B$10.05B | +5.1% |
| Gross Profit | $5.19B$4.92B | +5.5% |
| Operating Expenses | $13.15B$12.53B | +5.0% |
| Operating Income | $2.59B$2.43B | +6.5% |
| Interest Expense | $7.28M$11.18M | −34.9% |
| Net Income | $1.96B$1.79B | +9.7% |
| EPS (Basic) | $3.12$2.83 | +10.2% |
| EPS (Diluted) | $3.08$2.78 | +10.8% |
| Shares Outstanding (Basic) | 630.14M632.28M | −0.3% |
| Shares Outstanding (Diluted) | 638.77M644.92M | −1.0% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue growth in the first quarter of fiscal year 2023?
Accenture reported revenue growth of 5% in U.S. dollars, reaching $15.7 billion. In local currency, the growth was a more robust 15%, indicating strong underlying business momentum despite unfavorable foreign exchange rates.
How did Accenture's profitability change compared to the prior year?
Accenture's profitability showed improvement. Diluted earnings per share (EPS) increased by 11% to $3.08. The operating margin also expanded to 16.5% from 16.3% in the prior year's first quarter, driven by revenue growth and improved contract profitability, partially offset by higher labor costs.
What is the company's outlook for future client engagement?
New bookings for the quarter were $16.2 billion, showing a 6% increase in local currency. This indicates continued strong demand for Accenture's services and solutions, suggesting a positive outlook for future revenue conversion. Remaining performance obligations stood at approximately $25 billion as of November 30, 2022.
How is Accenture returning capital to its shareholders?
Accenture returned a significant $2.1 billion to shareholders in the first quarter of fiscal year 2023. This included approximately $1.4 billion in share repurchases and $706 million in dividends. The company intends to continue using a significant portion of its cash flow for share repurchases.
06—Continue