01—Abstract
Summary
Summary of the 8-K filed October 23, 2024. Cited figures are marked; the original filing is the authoritative source.
Roper Technologies, Inc. filed this Form 8-K on October 23, 2024 to furnish its press release (Exhibit 99.1) announcing results for the quarter ended September 30, 2024, on a continuing operations basis.
Third-quarter net revenues rose 13% to $1.76 billiona, with organic revenue up 4% and acquisitions contributing 9%. GAAP diluted earnings per share increased 6% to $3.40, and adjusted DEPS increased 7% to $4.62. Adjusted EBITDA grew 10% to $717 million, operating cash flow was $755 million, and adjusted free cash flow increased 15% to $719 million.
Management raised its full-year 2024 adjusted DEPS guidance to $18.21 to $18.25b, up from $18.10 to $18.25, and increased its total revenue growth outlook to 13% or more, while continuing to expect organic revenue growth of approximately 6%. Fourth-quarter adjusted DEPS is guided to $4.70 to $4.74. Guidance excludes unannounced future acquisitions or divestitures.
The company stated it completed the acquisition of Transact Campus during the quarter, which was combined with its CBORD business. The balance sheet shows goodwill of $19.27 billionc and other intangible assets of $9.21 billion at September 30, 2024, against total assets of $31.55 billion.
Long-term debt, net of current portion, rose to $7.68 billiond from $5.83 billion at December 31, 2023, and nine-month acquisitions of businesses totaled $3.46 billion in cash. Management highlighted significant M&A capacity and a robust acquisition pipeline.
02—Key points
Key Highlights
- Third-quarter revenue increased 13% to $1.76 billion, with organic growth of 4% and acquisitions contributing 9%.
- GAAP diluted EPS rose 6% to $3.40; adjusted DEPS rose 7% to $4.62.
- Adjusted EBITDA increased 10% to $717 million, and adjusted operating cash flow was $755 million, up 17%.
- Adjusted free cash flow increased 15% to $719 million in the third quarter.
- Full-year 2024 adjusted DEPS guidance narrowed to $18.21–$18.25 from $18.10–$18.25; total revenue growth outlook raised to 13%+ with organic growth of approximately 6%.
- Fourth-quarter 2024 adjusted DEPS guided to $4.70–$4.74.
- Long-term debt increased to $7.68 billion at September 30, 2024, from $5.83 billion at December 31, 2023, amid $3.46 billion in nine-month acquisition spending.
03—Questions
Frequently Asked Questions
How did Roper perform in the third quarter of 2024?
Net revenues increased 13% to $1.76 billion, with organic revenue up 4%. GAAP net earnings rose 6% to $368 million, adjusted net earnings rose 7% to $499 million, and adjusted EBITDA increased 10% to $717 million.
What changed in full-year 2024 guidance?
Adjusted DEPS guidance is now $18.21–$18.25, compared with the prior $18.10–$18.25. The company increased its total revenue growth outlook to 13% or more and continues to expect organic revenue growth of approximately 6%. Guidance excludes unannounced acquisitions or divestitures.
What acquisition did Roper complete during the quarter?
Roper completed the acquisition of Transact Campus, which has been combined with its CBORD business. Management said it adds another high-quality vertical software business to the portfolio.
How are Roper's minority investments affecting reported results?
Roper holds a minority interest in Indicor, following the sale of a majority stake in its industrial businesses to CD&R, and an equity-method investment in Certinia. Their financial impacts are reported in equity investments gain, net, and are excluded from non-GAAP results. Third-quarter equity investments gain, net was $37.4 million.
How did cash generation and the balance sheet change?
Third-quarter operating cash flow was $755 million, and adjusted free cash flow rose 15% to $719 million. Long-term debt, net of current portion, increased to $7.68 billion at September 30, 2024, from $5.83 billion at year-end 2023, after $2.0 billion of senior notes were issued in the nine months.
04—Continue