Roper Technologies, Inc. (ROP) has been benefiting from strength across each of its segments. Its Application Software segment is gaining from solid momentum in its Deltek, Vertafore, Strata, Frontline and Aderant businesses. Continued SaaS strength, sustained momentum in the SMB channel and private sector solutions are aiding its Deltek business. The acquisition of Replicon (August 2023) has been supporting Deltek’s growth by boosting its SaaS solutions portfolio.Growing adoption and cross-selling of SaaS ...

Financial Performance - Net revenues for the year ended December 31, 2023, were $6,177.8 million, an increase of 15.0% compared to $5,371.8 million in 2022[147]. - Application Software segment revenues grew by 20.7%, with organic revenue growth of 5.9%, totaling $3,186.9 million in 2023[147]. - Network Software segment revenues increased by 4.4%, with organic revenue growth of 4.6%, totaling $1,439.4 million in 2023[148]. - Technology Enabled Products segment revenues rose by 14.6%, with organic revenue growth of 14.7%, totaling $1,551.5 million in 2023[149]. - Gross margin for total revenues was 69.7% in 2023, slightly down from 69.9% in 2022[147]. - Selling, general and administrative expenses as a percentage of net revenues increased to 37.8% in 2023 from 37.6% in 2022[147]. - Cash provided by operating activities from continuing operations was $2,037.4 million in 2023, a significant increase from $606.6 million in 2022[157]. - Backlog increased by 8.4% to $3,156.6 million as of December 31, 2023, with acquisitions contributing 5% and organic growth contributing 3%[155]. Tax and Debt Management - Roper Technologies reported a 2023 effective income tax rate of 21.5%, down from 23.1% in 2022, with an expected rate of approximately 21% to 22% for 2024[131]. - The effective income tax rate improved to 21.5% in 2023 from 23.1% in 2022, positively impacted by a net tax benefit from international restructuring[154]. - Total debt decreased to $6,360.2 million at December 31, 2023, representing 26.7% of total capital, down from 29.5% in 2022[162]. - The company had $6,000.0 million in fixed-rate borrowings with interest rates ranging from 1.00% to 4.20% as of December 31, 2023[175]. - The company anticipates generating positive cash flows from operating activities, which will support the reduction of outstanding debt according to the repayment schedule[171]. Investments and Acquisitions - The company completed the divestiture of a 51% equity stake in its industrial businesses on November 22, 2022, significantly reducing cyclicality and increasing recurring revenue[121][123]. - Roper's strategy focuses on sustainable growth through continuous improvement and acquisitions of high value-added software and technology-enabled products[120]. - The company maintains an active acquisition program, but future acquisitions will depend on various factors and cannot be reasonably estimated[170]. - The company retained a 47.3% minority equity interest in Indicor as of December 31, 2023, down from 49.0% in 2022, and applies the fair value option for this investment[142]. - The fair value of Roper's equity investment in Indicor is updated quarterly and classified within Level 3 of the fair value hierarchy[142]. - A hypothetical 10% decrease in the fair value of the company's equity investment in Indicor would result in a non-cash charge of approximately $67.6 million[177]. Operational Insights - Roper's segment reporting includes three reportable segments: Application Software, Network Software, and Technology Enabled Products, with detailed financial information available in the consolidated financial statements[124]. - The company performed its annual goodwill impairment test in Q4 2023, determining that impairment was not likely for any of its 22 reporting units[137]. - Roper's divestitures have led to a higher margin profile and an increased mix of recurring revenue[123]. - Cash and cash equivalents at foreign subsidiaries decreased by 36.6% to $148.3 million compared to $234.0 million at December 31, 2022, primarily due to cash repatriation of $250.8 million[167]. - Capital expenditures for 2023 were $68.0 million, up from $40.1 million in 2022, while capitalized software expenditures increased to $40.0 million from $30.2 million[168]. - Total contractual cash obligations amounted to $7,944.3 million as of December 31, 2023, with $1,131.1 million due in fiscal year 2024[169]. - The company expects capital expenditures and capitalized software expenditures to be between 1.0% and 1.5% of annual net revenues in the future[168]. - The company is exposed to interest rate risks on its revolving credit facility borrowings and foreign currency exchange risks, with approximately 11% of total net revenues recognized in currencies other than the U.S. dollar[174][176].

ATLANTA--(BUSINESS WIRE)--Assertively delivering upon its strategy to expand artificial intelligence (AI) and cloud capabilities, Aderant, a global legal business management software provider, announced the appointment of Lisa Erickson as Vice President of Product AI & Cloud Transformation. Erickson has 25 years of experience in the technology field. In this newly-created position, Erickson will draw upon her vast expertise to innovatively drive the company’s AI and cloud development initiatives forward. ...

AUSTIN, Texas--(BUSINESS WIRE)--Verosint, a leader in real-time account fraud prevention, has been selected by DAT Freight & Analytics to combat account fraud within their online freight marketplace. DAT is the recognized leader in the freight and logistics industry with the largest freight load board to connect shippers, carriers, and brokers across North America. Verosint’s rapid implementation at the company, followed by an immediate and drastic reduction in fraud, marks a significant step toward prevent ...

Roper Technologies’ (ROP) fourth-quarter 2023 adjusted earnings of $4.34 per share beat the Zacks Consensus Estimate of $4.33. On a year-over-year basis, earnings increased 11%.Roper’s net revenues of $1,613.5 million beat the consensus estimate of $1,575 million. The top line increased 12.8% year over year. Organic sales in the quarter increased 8% year over year, owing to strength across the three segments. Acquisitions boosted sales by 4%.Segmental PerformanceRoper divested its Process Technologies segme ...

Financial Data and Key Metrics Changes - The company reported a total revenue growth of 15% for the year, with organic revenue growth of 8% [122] - EBITDA grew by 16% year-over-year, reaching $2.5 billion, resulting in an EBITDA margin of 40.6% [13][132] - Free cash flow increased by 32%, with free cash flow margins at 32% [122][132] Business Line Data and Key Metrics Changes - The Application Software segment delivered revenue growth of 15% year-over-year, contributing $852 million, with organic growth accounting for 7 points [28] - The Network segment's organic revenue grew by 5% to $1.44 billion, with strong margins at 55.2% [16] - The TEP segment experienced a 17% growth in revenue to $399 million, driven by strong performance from Neptune [12][28] Market Data and Key Metrics Changes - The Procare acquisition is expected to contribute approximately $260 million in revenue and $95 million in EBITDA for the 12 months ending Q1 2025 [123] - The market for early childhood education software is growing annually in the low double digits, driven by increasing demand from dual-income families [131] Company Strategy and Development Direction - The company aims to improve long-term sustainable organic growth rates and capture more value from capital deployment [25] - The strategy includes active participation in the M&A market, with a strong balance sheet and a large pipeline of attractive opportunities [5][35] - The company is focused on enhancing the quality of its portfolio through recent acquisitions, which improve recurring revenue mix and organic growth profile [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2024 with solid momentum and a strong financial position, despite expectations of subdued large customer activity in the Application Software segment [34][35] - The company anticipates a challenging freight market to persist, impacting organic growth in the Network segment [34][56] - Management expects adjusted DEPS for Q1 2024 to be in the range of $4.30 to $4.34, reflecting the anticipated impact of the Procare acquisition [34] Other Important Information - The company successfully deployed $2.1 billion in high-quality vertical software acquisitions during the year, despite a challenging acquisition environment [19] - The Procare acquisition is expected to be accretive to free cash flow in 2024 and adjusted DEPS in 2025 [9] Q&A Session Summary Question: Financial impact of Procare acquisition - Management clarified that the Procare acquisition will have a $0.10 to $0.15 dilution impact on adjusted DEPS for the year, with approximately $0.02 expected in Q1 due to the timing of the deal close [43] Question: Organic growth outlook for Application Software - Management indicated that organic growth in Application Software is expected to be in the mid-single digits, influenced by lower activity from large customers [48][56] Question: Expectations for Network Software segment - Management noted that the growth rates for the Network segment are primarily driven by DAT and freight matching businesses, with expectations for a steady growth rate [53] Question: Long-term growth aspirations - Management reiterated long-term aspirations for organic growth in the 8% to 9% range, acknowledging current challenges in the freight market and large customer activity [55][56] Question: M&A environment and leverage - Management expressed a willingness to operate within a leverage range of 3 to 3.5 times, emphasizing a disciplined approach to capital deployment [66] Question: Customer behavior and cloud migration - Management confirmed that customers migrating to cloud solutions tend to increase their spending on additional modules, leading to significant revenue growth [94][106]

For the quarter ended December 2023, Roper Technologies (ROP) reported revenue of $1.61 billion, up 12.8% over the same period last year. EPS came in at $4.37, compared to $3.92 in the year-ago quarter.The reported revenue represents a surprise of +2.43% over the Zacks Consensus Estimate of $1.58 billion. With the consensus EPS estimate being $4.33, the EPS surprise was +0.92%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Roper Technologies (ROP) came out with quarterly earnings of $4.37 per share, beating the Zacks Consensus Estimate of $4.33 per share. This compares to earnings of $3.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.92%. A quarter ago, it was expected that this industrial equipment maker would post earnings of $4.21 per share when it actually produced earnings of $4.32, delivering a surprise of 2.61%.Over the last four qua ...

Investors are always looking for stocks that are poised to beat at earnings season and Roper Technologies, Inc. (ROP) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Roper is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good ...

ATLANTA--(BUSINESS WIRE)--Aderant, a leading global provider of legal business management solutions, has announced the launch of its new Matter Reconciliation module for BillBlast, legal’s fastest growing billing application. BillBlast Matter Reconciliation effectively automates both the process of obtaining matter-related data and reconciling law firm matter records with data provided by the client vendor. The new module can be used as an add-on for BillBlast clients but can also function as a standalone s ...