01—Abstract
Summary
Summary of the 10-Q filed June 20, 2024. Cited figures are marked; the original filing is the authoritative source.
Accenture plc's (ACN) Q3 2024 filing shows a slight revenue decline of 1% in USD to $16.47 billiona, though it grew 1% in local currency.
This was driven by a modest increase in managed services revenue, which offset a slight decline in consulting revenue. New bookings showed strong growth, up 22% in USD to $21.1 billionb, indicating robust future demand, particularly in managed services. The company maintained a strong operating margin of 16.0% and reported diluted EPS of $3.04, demonstrating effective cost management despite a competitive environment and client prioritization of large-scale transformations.
Profitability was supported by effective cost management, including a decrease in business optimization costs year-over-year. The company also returned $2.2 billionc to shareholders in the quarter through share repurchases and dividends.
Accenture's balance sheet remains strong with significant cash and cash equivalents of $5.5 billiond, though this is a decrease from the prior quarter, largely due to investing activities, particularly business acquisitions. The company continues to navigate economic uncertainties while focusing on digital transformation and AI initiatives for its clients.
02—Key points
Key Highlights
- Revenues for Q3 FY24 were $16.47 billion, down 1% in USD but up 1% in local currency year-over-year.
- New bookings surged by 22% in USD (26% in local currency) to $21.1 billion, signaling strong future demand.
- Operating margin improved to 16.0% from 14.2% in Q3 FY23, demonstrating operational efficiency.
- Diluted Earnings Per Share (EPS) was $3.04, a slight decrease from $3.15 in Q3 FY23.
- Cash and cash equivalents stood at $5.5 billion as of May 31, 2024, indicating solid liquidity.
- The company returned $2.2 billion to shareholders in Q3 FY24 via share repurchases ($1.4 billion) and dividends ($0.8 billion).
- Business optimization costs decreased significantly year-over-year, positively impacting profitability.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Accenture plc kept $0.12.
- Revenue$16.47B100.0%
- Cost of revenue−$10.97B66.6%
- Gross profit$5.50B33.4%
- Operating costs−$2.87B17.4%
- Operating income$2.63B16.0%
- Interest, other & tax−$698.7M4.2%
- Net income$1.93B11.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed June 20, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $16.47B$16.56B | −0.6% |
| Cost of Revenue | $10.97B$11.04B | −0.6% |
| Gross Profit | $5.50B$5.53B | −0.6% |
| Operating Expenses | $13.84B$14.21B | −2.6% |
| Operating Income | $2.63B$2.36B | +11.5% |
| Interest Expense | $11.33M$11.21M | +1.1% |
| Net Income | $1.93B$2.01B | −3.9% |
| EPS (Basic) | $3.07$3.18 | −3.5% |
| EPS (Diluted) | $3.04$3.15 | −3.5% |
| Shares Outstanding (Basic) | 628.35M631.54M | −0.5% |
| Shares Outstanding (Diluted) | 635.61M638.74M | −0.5% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in Q3 FY24?
Accenture reported revenues of $16.47 billion for the third quarter of fiscal year 2024, representing a 1% decrease in U.S. dollars but a 1% increase in local currency compared to the same period in fiscal year 2023. This performance was driven by a slight increase in managed services revenues, which offset a minor decrease in consulting revenues.
How did Accenture's profitability fare in the quarter?
Accenture demonstrated strong profitability with an operating margin of 16.0% for Q3 FY24, an improvement from 14.2% in Q3 FY23. Diluted Earnings Per Share (EPS) was $3.04, a slight decrease from $3.15 in the prior year's comparable quarter. This was achieved despite ongoing competitive pressures and a focus on large transformation projects by clients.
What is the outlook for future revenue based on bookings?
The company's new bookings for Q3 FY24 were robust, increasing by 22% in U.S. dollars to $21.1 billion. This strong performance, particularly in managed services, indicates a healthy pipeline of future work and suggests positive revenue momentum for upcoming periods.
How is Accenture managing its cash and returning capital to shareholders?
Accenture maintained a strong liquidity position with $5.5 billion in cash and cash equivalents as of May 31, 2024. In Q3 FY24, the company returned $2.2 billion to shareholders through $1.4 billion in share repurchases and $0.8 billion in dividends, reflecting its commitment to shareholder value.
06—Continue