01—Abstract
Summary
Summary of the 10-Q filed December 19, 2023. Cited figures are marked; the original filing is the authoritative source.
Accenture plc reported its first-quarter fiscal year 2024 results, showcasing a modest 3% revenue growth in U.S. dollars to $16.2 billiona, with 1% growth in local currency.
The company saw a significant increase in new bookings, reaching $18.4 billionb, a 14% rise in U.S. dollars and 12% in local currency, indicating strong future demand. Despite a challenging economic environment impacting consulting services and certain industries like Communications, Media & Technology, Accenture managed to improve its gross margin to 33.6%. However, operating margin saw a slight decrease to 15.8% due to $140 million in business optimization costs related to employee severance.
Diluted earnings per share rose slightly to $3.10c from $3.08 in the prior year quarter. The company returned $2.0 billion to shareholders through $1.2 billion in share repurchases and $810 million in dividends.
02—Key points
Key Highlights
- Revenues grew 3% year-over-year to $16.2 billion, driven by managed services, while consulting revenue remained flat.
- New bookings surged 14% year-over-year to $18.4 billion, signaling strong future revenue potential.
- Operating margin slightly decreased to 15.8% due to $140 million in business optimization costs, but adjusted operating margin expanded 20 basis points.
- Diluted earnings per share increased to $3.10 from $3.08 in the prior year period.
- Accenture returned $2.0 billion to shareholders via $1.2 billion in share repurchases and $810 million in dividends.
- Annualized voluntary attrition decreased to 11% from 13% in the prior year quarter, indicating improved employee retention.
- Goodwill increased by $629 million, primarily driven by acquisitions, reflecting continued investment in strategic growth areas.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Accenture plc kept $0.12.
- Revenue$16.22B100.0%
- Cost of revenue−$10.78B66.4%
- Gross profit$5.45B33.6%
- Operating costs−$2.88B17.8%
- Operating income$2.56B15.8%
- Interest, other & tax−$591.4M3.6%
- Net income$1.97B12.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed December 19, 2023Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $16.22B$15.75B | +3.0% |
| Cost of Revenue | $10.78B$10.56B | +2.0% |
| Gross Profit | $5.45B$5.19B | +5.0% |
| Operating Expenses | $13.66B$13.15B | +3.8% |
| Operating Income | $2.56B$2.59B | −1.1% |
| Interest Expense | $14.49M$7.28M | +99.1% |
| Net Income | $1.97B$1.96B | +0.4% |
| EPS (Basic) | $3.14$3.12 | +0.6% |
| EPS (Diluted) | $3.10$3.08 | +0.6% |
| Shares Outstanding (Basic) | 628.00M630.14M | −0.3% |
| Shares Outstanding (Diluted) | 637.40M638.77M | −0.2% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in the first quarter of fiscal year 2024?
Accenture reported revenues of $16.2 billion for the first quarter of fiscal year 2024, representing a 3% increase in U.S. dollars and a 1% increase in local currency compared to the same period last year. This growth was driven by a solid performance in managed services, partially offset by a decline in consulting revenue.
How did Accenture's profitability fare in the quarter?
The company's operating margin was 15.8% for the first quarter of fiscal year 2024, a slight decrease from 16.5% in the prior year. This was impacted by $140 million in business optimization costs. However, excluding these costs, the adjusted operating margin expanded by 20 basis points to 16.7%, and the gross margin improved to 33.6% due to lower labor costs.
What is the outlook for future revenue based on bookings?
Accenture saw a strong increase in new bookings, which reached $18.4 billion, up 14% in U.S. dollars and 12% in local currency year-over-year. This significant growth in bookings, particularly in managed services, indicates a positive outlook for future revenue as these contracts convert to recognized revenue.
How is Accenture returning value to its shareholders?
In the first quarter of fiscal year 2024, Accenture returned $2.0 billion to shareholders. This included $1.2 billion used for share repurchases and $810 million in dividend payments, demonstrating a consistent commitment to capital return.
06—Continue