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.

ACN 10-Q Quarterly Report Q1 FY2024 — Revenue, Net Income, EPS

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

0.3% Gross Margin

Net Income

$1.97B

0.1% 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.

Accenture plc Quarterly Report for Q1 Ended Nov 30, 2023

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions