10-QPeriod: Q1 FY2024

Accenture plc Quarterly Report for Q1 Ended Nov 30, 2023

Filed December 19, 2023For Securities:ACN

Summary

Accenture plc reported its first-quarter fiscal year 2024 results, showcasing a modest 3% revenue growth in U.S. dollars to $16.2 billion, with 1% growth in local currency. The company saw a significant increase in new bookings, reaching $18.4 billion, 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 $3.10 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.

Financial Highlights

55 data points
Beta

Revenue

$16.22B

33.6% Gross Margin

Net Income

$1.97B

12.2% Net Margin

EPS (Diluted)

$3.10

Total Assets

$51.53B

Cash & Equivalents

$7.14B

Free Cash Flow

$429.62M

Financial Statements
Beta
Revenue$16.22B
Cost of Revenue$10.78B
Gross Profit$5.45B
Operating Expenses$13.66B
Operating Income$2.56B
Interest Expense$14.49M
Net Income$1.97B
EPS (Basic)$3.14
EPS (Diluted)$3.10
Shares Outstanding (Basic)628.00M
Shares Outstanding (Diluted)637.40M

Key Highlights

  • 1Revenues grew 3% year-over-year to $16.2 billion, driven by managed services, while consulting revenue remained flat.
  • 2New bookings surged 14% year-over-year to $18.4 billion, signaling strong future revenue potential.
  • 3Operating margin slightly decreased to 15.8% due to $140 million in business optimization costs, but adjusted operating margin expanded 20 basis points.
  • 4Diluted earnings per share increased to $3.10 from $3.08 in the prior year period.
  • 5Accenture returned $2.0 billion to shareholders via $1.2 billion in share repurchases and $810 million in dividends.
  • 6Annualized voluntary attrition decreased to 11% from 13% in the prior year quarter, indicating improved employee retention.
  • 7Goodwill increased by $629 million, primarily driven by acquisitions, reflecting continued investment in strategic growth areas.

Frequently Asked Questions

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.

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.

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.

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.