01—Abstract
Summary
Summary of the 10-K filed February 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Roper Technologies, Inc. reported net revenues of $7,039.2 milliona for 2024, up from $6,177.8 million in 2023, an increase of 13.9% (organic growth of 5.8%, with acquisitions contributing 8.1%).
Income from operations rose to $1,996.8 millionb from $1,745.2 million, and net earnings from continuing operations increased to $1,549.3 million from $1,368.4 million. Diluted EPS from continuing operations was $14.35 versus $12.74 in 2023. Operating cash flow from continuing operations was $2,393.2 million, up from $2,037.4 million.
The company's growth in 2024 was driven largely by acquisitions, most notably Procare ($1,860.0 millionc) and Transact Campus ($1,607.0 million), which were combined with the Application Software segment. Application Software revenue rose to $3,868.3 million, Network Software to $1,475.6 million, and Technology Enabled Products to $1,695.3 million. Backlog declined 1.6% to $3,105.4 million, primarily due to lower Technology Enabled Products backlog.
Leverage increased: total debt was $7,669.2 milliond (excluding debt issuance costs) at year-end 2024 versus $6,360.2 million a year earlier, mainly from $2,000.0 million of senior notes issued in 2024. Goodwill totaled $19,312.9 million, or 62% of total assets of $31,334.7 million, which the filing identifies as a key risk if future performance falls short. Roper also sold its Certinia equity investment for $245.6 million, and its Indicor minority stake is carried at $772.3 million under the fair value option.
02—Key points
Key Highlights
- Net revenues grew 13.9% to $7,039.2 million, with organic revenue growth of 5.8% and acquisitions contributing 8.1%.
- Income from operations increased to $1,996.8 million from $1,745.2 million; net earnings from continuing operations rose to $1,549.3 million from $1,368.4 million.
- Diluted EPS from continuing operations was $14.35 in 2024 compared with $12.74 in 2023.
- Four acquisitions in 2024 totaled significant capital deployment, led by Procare ($1,860.0 million) and Transact Campus ($1,607.0 million).
- Total debt rose to $7,669.2 million (28.9% of total capital) from $6,360.2 million, following $2,000.0 million of new senior notes.
- Goodwill of $19,312.9 million represents 62% of total assets, creating impairment risk if business performance declines.
- The quarterly dividend was increased to $0.825 per share from $0.75 per share, the thirty-second consecutive annual increase.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Roper Technologies kept $0.22.
- Revenue$7.04B100.0%
- Cost of revenue−$2.16B30.7%
- Gross profit$4.88B69.3%
- Operating costs−$2.88B40.9%
- Operating income$2.00B28.4%
- Interest, other & tax−$447.8M6.4%
- Net income$1.55B22.0%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 24, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $7.04B$6.18B | +13.9% |
| Cost of Revenue | $2.16B$1.87B | +15.5% |
| Gross Profit | $4.88B$4.31B | +13.3% |
| R&D Expenses | $748.10M$646.10M | +15.8% |
| SG&A Expenses | $2.88B$2.56B | +12.5% |
| Operating Income | $2.00B$1.75B | +14.4% |
| Net Income | $1.55B$1.38B | +11.9% |
| EPS (Basic) | $14.47$12.98 | +11.5% |
| EPS (Diluted) | $14.35$12.89 | +11.3% |
| Shares Outstanding (Basic) | 107.10M106.60M | +0.5% |
| Shares Outstanding (Diluted) | 108.00M107.40M | +0.6% |
05—Questions
Frequently Asked Questions
What drove Roper's revenue growth in 2024?
Net revenues rose 13.9% to $7,039.2 million. Acquisitions contributed 8.1 percentage points and organic growth contributed 5.8%. Application Software led with 5.6% organic growth, Technology Enabled Products grew 9.3% organically, and Network Software grew 2.5% organically.
How did Roper's debt position change in 2024?
Total debt excluding unamortized debt issuance costs increased to $7,669.2 million from $6,360.2 million. The increase was due mainly to $2,000.0 million of senior notes issued in 2024, partially offset by $500.0 million of notes repaid at maturity and $235.0 million of net revolver repayments. Interest expense, net, rose to $259.2 million from $164.7 million.
What is the Indicor investment and how is it valued?
Roper holds a 45.5% minority equity interest in Indicor Equity, LLC, following a 2022 divestiture of a majority stake to Clayton, Dubilier & Rice. The company applies the fair value option, and the investment was carried at $772.3 million at December 31, 2024, with a $96.4 million increase in fair value during 2024. Roper must make quarterly Unit Adjustment payments to CD&R, which it intends to pay in kind.
What is the significance of goodwill on Roper's balance sheet?
Goodwill totaled $19,312.9 million at December 31, 2024, compared with total stockholders' equity of $18,867.6 million, and represented 62% of total assets of $31,334.7 million. The filing states that a write-off would negatively affect results, and that the company concluded impairment was not likely in any reporting unit based on its 2024 qualitative assessment.
What were the key one-time items affecting 2024 earnings?
Equity investments gain, net, was $234.6 million, including a $135.6 pretax gain on the sale of the Certinia investment and a $96.4 increase in the fair value of the Indicor investment. The company also recorded $30.2 million of income tax expense on the Certinia sale. The effective income tax rate was 21.2%, versus 21.5% in 2023.
06—Continue