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Roper Technologies 8-K Report, Financial Results (Jan 31, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 31, 2024
Period End
January 31, 2024
Security
ROP
In the record · 2016–202610-K1110-Q338-K114

ROP filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 114 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jan ’17Jan ’17
  2. Deal closed8-K · Sep ’20Sep ’20
  3. Leadership change8-K · Jan ’23Jan ’23
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed January 31, 2024. Cited figures are marked; the original filing is the authoritative source.

Roper Technologies, Inc. furnished a press release (Exhibit 99.1) dated January 31, 2024 reporting results for the fourth quarter and full year ended December 31, 2023, on a continuing operations basis.

Fourth-quarter revenue rose 13% to $1.61 billiona, with organic revenue up 8%. GAAP diluted EPS (DEPS) increased 51% to $3.50 and adjusted DEPS increased 11% to $4.37. Adjusted EBITDA grew 11% to $659 million, and GAAP operating cash flow was $622 million.

For the full year, revenue increased 15% to $6.18 billionb (organic up 8%), GAAP DEPS increased 38% to $12.74, and adjusted DEPS increased 17% to $16.71. Adjusted EBITDA rose 16% to $2.51 billion, and adjusted operating cash flow increased 33% to $2.07 billion. Management initiated 2024 guidance calling for full-year adjusted DEPS of $17.85 to $18.15, total revenue growth of 11% to 12%, and organic revenue growth of 5% to 6%.

First-quarter adjusted DEPS is expected at $4.30 to $4.34c. Guidance includes the pending acquisition of Procare Solutions, expected to close in the first quarter of 2024, and excludes unannounced future acquisitions or divestitures. The company also reported that it allocated $2.1 billion to vertical software acquisitions during 2023, and it holds minority interests in Indicor and Certinia, whose fair value changes are reported in 'equity investments activity, net' and excluded from non-GAAP results.

The filing also reports completed divestitures of TransCore, Zetec and the majority stake in the industrial businesses (Indicor), which are presented as discontinued operations. Year-end 2023 cash and cash equivalents were $214.3 milliond, down from $792.8 million, and long-term debt net of current portion was $5.83 billion.

02—Key points

Key Highlights

  1. Q4 2023 revenue increased 13% to $1.61 billion; organic revenue increased 8%, with acquisitions contributing 4%.
  2. Full-year 2023 revenue increased 15% to $6.18 billion; GAAP DEPS increased 38% to $12.74 and adjusted DEPS increased 17% to $16.71.
  3. Full-year adjusted EBITDA rose 16% to $2.51 billion; adjusted operating cash flow increased 33% to $2.07 billion and adjusted free cash flow increased 32% to $1.96 billion.
  4. 2024 guidance: adjusted DEPS of $17.85 to $18.15, total revenue growth of 11% to 12%, and organic revenue growth of 5% to 6%.
  5. Q1 2024 adjusted DEPS guidance of $4.30 to $4.34; guidance includes the Procare Solutions acquisition expected to close in Q1 2024.
  6. Roper allocated $2.1 billion to vertical software acquisitions in 2023, including Syntellis Performance Solutions, which was combined with Strata Decision Technology.
  7. Completed divestitures of TransCore, Zetec and the majority stake in industrial businesses (Indicor) are reported as discontinued operations; minority stakes in Indicor and Certinia affect 'equity investments activity, net,' which is excluded from non-GAAP results.

03—Questions

Frequently Asked Questions

  1. How did Roper perform in the fourth quarter of 2023?

    Revenue rose 13% to $1.61 billion, with organic revenue up 8%. GAAP net earnings were $378 million, GAAP DEPS increased 51% to $3.50, and adjusted DEPS increased 11% to $4.37. Adjusted EBITDA was $659 million, up 11%.

  2. What guidance did Roper give for 2024?

    Roper expects full-year 2024 adjusted DEPS of $17.85 to $18.15, total revenue growth of 11% to 12%, and organic revenue growth of 5% to 6%. First-quarter adjusted DEPS is expected to be $4.30 to $4.34.

  3. Does the guidance include pending acquisitions?

    Guidance includes the previously announced acquisition of Procare Solutions, expected to close in the first quarter of 2024. It excludes the impact of unannounced future acquisitions or divestitures. Forecasted results also exclude amortization of Procare intangible assets because the valuation is incomplete.

  4. How do Roper's minority investments affect reported results?

    Roper holds a minority interest in Indicor, after selling a majority stake in its industrial businesses to CD&R, and a minority interest in Certinia, accounted for under the equity method. Changes in their fair value or Roper's share of income are reported in 'equity investments activity, net,' and the company excludes these impacts from non-GAAP results. In Q4 2023 this item was a $67 million pretax benefit, and for full-year 2023 it was $165 million pretax.

  5. What is the difference between GAAP and adjusted results for Roper in 2023?

    Full-year GAAP DEPS was $12.74 versus adjusted DEPS of $16.71. The main adjustments were amortization of acquisition-related intangible assets ($5.13 per share), offset by the minority-investment impacts ($1.25 per share). Adjusted EBITDA of $2.51 billion compares with EBITDA of $2.66 billion, after adjusting for items such as the minority investments and transaction-related expenses.

04—Continue

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