Roper Technologies, Inc. (ROP) , on Aug 19, priced an offering of $2 billion for its senior unsecured notes in aggregate. The offering comprises $500 million of 4.500% senior notes due to expire on Oct 15, 2029, and $500 million of 4.750% senior notes due to expire on Feb 15, 2032. It also includes $1 billion of 4.900% senior notes set to expire on Oct 15, 2034. Subject to customary closing conditions, this offering is anticipated to close on Aug 21, 2024. As communicated by the company, notes due to expire ...

SARASOTA, Fla., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (Nasdaq: ROP) (the "Company") announced today the pricing of its public offering of $500 million of 4.500% Senior Notes due 2029 (the "2029 notes"), $500 million of 4.750% Senior Notes due 2032 (the "2032 notes"), and $1 billion of 4.900% Senior Notes due 2034 (the "2034 notes" and, collectively with the 2029 notes and 2032 notes, the "notes"). The offering is expected to close, subject to the satisfaction of customary closing condit ...

Roper Technologies, Inc. (ROP) recently inked a deal to acquire Transact Campus, Inc. (Transact). The transaction is valued at $1.5 billion (including a $100 million tax benefit). Roper will finance the acquisition with its existing cash and revolving credit facility. Roper's shares gained 0.4% on the last trading day to eventually close the trading session at $548.50. Based in Scottsdale, AZ, Transact is an app-based campus transaction processing solution provider. It enables students to do cashless transa ...

SCOTTSDALE, Ariz., Aug. 15, 2024 /PRNewswire/ -- Transact Campus Inc., "Transact," an award-winning leader in innovative campus technology and payment solutions, today announced its majority owner Reverence Capital Partners has signed a definitive agreement to sell Transact to Roper Technologies, Inc. (Nasdaq: ROP, "Roper") for $1.6 billion. The transaction is expected to close in this quarter. Transact will be combined with Roper's CBORD business, a provider of access & security and campus commerce solutio ...

SARASOTA, Fla., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (Nasdaq: ROP) today announced that it has entered into a definitive agreement to acquire Transact Campus, Inc. ("Transact") for a net purchase price of $1.5 billion, including a $100 million tax benefit resulting from the transaction. The net purchase price represents approximately 14 times expected 2025 EBITDA. Transact is an award-winning provider of innovative campus technology and payment solutions, offering a comprehensive suite ...

Financial Performance - Net revenues for Q2 2024 were $1,716.8 million, a 12.1% increase from $1,531.2 million in Q2 2023[63] - Net revenues for the six months ended June 30, 2024, were $3,397.5 million, an increase of 13.2% compared to $3,000.9 million for the same period in 2023[70] - The company reported an organic revenue growth of 4.1% for the total business in Q2 2024[63] - Backlog increased by 3.3% to $2,836.4 million as of June 30, 2024, compared to $2,746.8 million as of June 30, 2023, driven by acquisitions and organic growth in the Application Software segment[68] Segment Performance - Application Software segment revenue grew by 21.0%, while Network Software and Technology Enabled Products segments grew by 1.7% and 4.5%, respectively[63] - Gross margin for the Application Software segment increased to 69.3% for the six months ended June 30, 2024, compared to 68.6% for the same period in 2023[70] - The Technology Enabled Products segment saw a gross margin increase to 58.1% in Q2 2024 from 57.6% in Q2 2023[65] Margins and Expenses - Gross margin for the total business was 69.5% in Q2 2024, slightly down from 69.7% in Q2 2023[61] - Operating margin for the total business improved to 32.4% in Q2 2024 compared to 32.2% in Q2 2023[61] - Operating margin improved to 26.9% for the six months ended June 30, 2024, compared to 25.7% for the same period in 2023[70] - Selling, general and administrative expenses as a percentage of net revenues decreased to 37.1% in Q2 2024 from 37.5% in Q2 2023[61] - SG&A expenses as a percentage of net revenues decreased to 42.5% for the six months ended June 30, 2024, from 42.9% for the same period in 2023[70] Earnings and Interest - Net earnings from continuing operations were 19.6% of revenues in Q2 2024, down from 23.6% in Q2 2023[61] - Interest expense increased to $67.5 million in Q2 2024 from $34.8 million in Q2 2023 due to higher borrowings[66] - The interest expense, net, increased to $120.7 million for the six months ended June 30, 2024, compared to $72.2 million for the same period in 2023[73] Cash Flow and Debt - Cash provided by operating activities increased by 17% to $915.6 million for the six months ended June 30, 2024, compared to $785.0 million for the same period in 2023[75] - Total debt, net of deferred financing costs, was $7,423.9 million as of June 30, 2024, compared to $6,330.1 million as of December 31, 2023[79] Investments and Acquisitions - Equity investments (gain) loss, net, was a gain of $56.2 million for the six months ended June 30, 2024, compared to a gain of $64.8 million for the same period in 2023[74] - The company maintains an active acquisition program, with future acquisitions dependent on various factors including market conditions[82] Market Risk - No material changes in market risk disclosures during the six months ended June 30, 2024[85]

Core Viewpoint - Roper Technologies reported strong second-quarter 2024 results with adjusted earnings per share of $4.48, exceeding estimates and reflecting a 9% year-over-year increase [1] Financial Performance - Net revenues for Roper reached $1,716.8 million, a 12% increase year-over-year, although it fell short of the consensus estimate of $1,724 million [10] - Adjusted EBITDA grew 13% year-over-year to $695 million, with a margin increase of 20 basis points to 40.5% [6] - The cost of sales rose 12.8% year-over-year to $523.5 million, while gross profit increased 11.8% to approximately $1.19 billion, resulting in a slight decrease in gross margin to 69.5% from 69.7% [5] Segment Performance - Application Software segment revenues totaled $931.8 million, accounting for 54.3% of total revenues, with a year-over-year increase of 21% and organic revenue growth of 5% [2] - Network Software & Systems generated revenues of $364.2 million, representing 21.2% of total revenues, with a 2% year-over-year growth [3] - Technology Enabled Products segment revenues were $420.8 million, making up 24.5% of total revenues, with a 4% year-over-year increase [4] Shareholder Returns - Roper rewarded shareholders with a dividend payment of $160.6 million in the first half of 2024, reflecting a 10.9% increase year-over-year [7] Outlook - For the third quarter, Roper anticipates adjusted earnings per share to be in the range of $4.50-$4.54, an increase from previous projections [16] - For the full year 2024, Roper expects adjusted earnings per share from continuing operations to be between $18.10-$18.25, with total revenues projected to increase by 12% [20]

Financial Data and Key Metrics Changes - The company reported a total revenue of $1.72 billion, representing a 12% increase compared to the prior year [71] - Organic revenue growth was 4%, while EBITDA grew by 13% with margins expanding to 40.5% [70][88] - Free cash flow increased by 24% in the quarter and 35% on a trailing twelve-month (TTM) basis, with TTM free cash flow margins at 32% [70][126] Business Line Data and Key Metrics Changes - The Application Software segment saw total revenue growth of 21%, with organic revenue growth of 5% and EBITDA margins at 43.6% [2] - The TEP segment grew 5% on an organic basis, maintaining strong EBITDA margins at 36.2% [79] - The freight matching businesses, DAT and Loadlink, experienced a slight decline due to challenging market conditions [77] Market Data and Key Metrics Changes - The company expects the TEP segment to grow in the mid-single to high-single digits for the remainder of the year, slightly below previous expectations due to production efficiency timing at Neptune [8] - The freight market is showing signs of stabilization, with spot market volumes stable to slightly improving [109] Company Strategy and Development Direction - The company is increasing the low end of its full-year guidance, reflecting confidence in its outlook despite production efficiency challenges at Neptune [86] - A focus on M&A opportunities remains strong, with a robust pipeline of attractive acquisition targets [10][86] - The company is committed to long-term sustainable growth through disciplined capital deployment and innovation investments [11][100] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the freight market and the potential for growth in enterprise software bookings [109] - The company is addressing production efficiency issues at Neptune, with expectations for resolution by the end of the third quarter [57][102] - There is a strong demand for the company's solutions, particularly in the government contracting and healthcare sectors [74][120] Other Important Information - The company maintains a strong financial position with over $4 billion available for capital deployment [10] - The introduction of GenAI-powered capabilities across various software platforms is expected to enhance customer value and operational efficiency [91][118] Q&A Session Summary Question: What are the production efficiency issues at Neptune? - Management indicated that the production efficiency on the mechanical side was below expectations due to a focus on adding static capacity, but countermeasures are in place to resolve this [12][102] Question: Is there any impact from the recent CrowdStrike incident? - Management stated that there were no new vulnerabilities identified across their businesses related to the incident [132] Question: How is the company addressing AI investments and customer needs? - The company is actively engaging with customers to integrate GenAI into their product offerings, which has led to increased enterprise software bookings [134] Question: What is the outlook for the freight market? - Management noted that the freight market is stabilizing, with some signs of improvement, but they are cautious about making optimistic forecasts until more data is available [109]

Core Insights - Roper Technologies reported revenue of $1.72 billion for the quarter ended June 2024, reflecting a year-over-year increase of 12.1% [2] - The earnings per share (EPS) for the same quarter was $4.48, up from $4.12 in the previous year, indicating a positive growth trend [2] - The revenue surprise was -0.45% compared to the Zacks Consensus Estimate, while the EPS surprise was +0.45% [1] Revenue Breakdown - Revenue from Network Software & Systems was $364.20 million, slightly below the average estimate of $369.25 million, with a year-over-year change of +1.7% [4] - Revenue from Technology Enabled Products reached $420.80 million, also below the average estimate of $432.31 million, showing a year-over-year increase of +4.5% [4] - Application Software revenue was reported at $931.80 million, slightly above the average estimate of $929.15 million, with a significant year-over-year change of +21% [4] Operating Profit Analysis - Operating profit for Application Software was $251.10 million, exceeding the average estimate of $247.05 million [4] - Operating profit for Technology Enabled Products was $146.70 million, surpassing the average estimate of $144.15 million [4] - Operating profit for Network Software & Systems was $159.10 million, which was below the average estimate of $164.20 million [4] Stock Performance - Roper Technologies' shares have returned +2% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [5] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [5]

Core Insights - Roper Technologies reported quarterly earnings of $4.48 per share, exceeding the Zacks Consensus Estimate of $4.46 per share, and showing an increase from $4.12 per share a year ago [4] - The company generated revenues of $1.72 billion for the quarter, which was below the Zacks Consensus Estimate by 0.45%, but up from $1.53 billion year-over-year [5] - The current consensus EPS estimate for the upcoming quarter is $4.63, with expected revenues of $1.74 billion, and for the current fiscal year, the estimate is $18.17 on revenues of $6.92 billion [7] Company Performance - Roper Technologies has surpassed consensus EPS estimates in four of the last four quarters [8] - The stock has underperformed the market this year, gaining about 5.3% compared to the S&P 500's 16.5% increase [9] - The company currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [11] Industry Context - Roper Technologies operates within the Computers - IT Services industry, which is currently ranked in the top 42% of over 250 Zacks industries [12] - The industry has shown a strong correlation between earnings estimate revisions and stock movements, suggesting that trends in earnings estimates can impact stock performance [6][10]