On October 25, 2023, Roper Technologies Inc (ROP, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a significant increase in revenue and GAAP DEPS, and also raised its full-year guidance.
Financial Highlights
Roper Technologies Inc (ROP, Financial) reported a 16% increase in revenue to $1.56 billion, with organic revenue increasing by 6%. GAAP DEPS rose by 24% to $3.21, while adjusted DEPS saw an 18% increase to $4.32. GAAP net earnings were $346 million, and adjusted EBITDA increased by 18% to $652 million. GAAP operating cash flow was reported at $631 million, with adjusted operating cash flow increasing by 72% to $647 million.
Company Performance and Acquisitions
Neil Hunn, Roper Technologies’ President and CEO, stated,
Our market-leading technology businesses continue to operate at a high level and delivered another great quarter, with 16% revenue growth and strong margin performance. Importantly, our third quarter adjusted free cash flow of $625 million brings our trailing-twelve-month free cash flow to $1.8 billion."He further added that the company deployed $2.0 billion toward vertical software acquisitions during the third quarter, highlighting the acquisition of Syntellis Performance Solutions.
Increased 2023 Guidance
Roper Technologies Inc (ROP, Financial) has increased its full year 2023 adjusted DEPS guidance to $16.62 - $16.66, compared to the previous guidance of $16.36 - $16.50. For the fourth quarter of 2023, the company expects adjusted DEPS of $4.28 - $4.32.
Minority Interests and Discontinued Operations
Following the sale of a majority stake in its industrial businesses to CD&R, Roper now holds a minority interest in Indicor. During the quarter, Roper also acquired a minority interest in Certinia, a leading provider of professional services automation software, for $125 million. The company has completed the divestitures of TransCore, Zetec, and the majority stake in its industrial businesses (Indicor).
Financial Tables Summary
The financial tables provided in the earnings report show a detailed breakdown of the company's revenue, adjusted EBITDA, adjusted DEPS, and adjusted cash flow. The tables also provide a forecasted adjusted DEPS reconciliation for Q4 2023 and FY 2023.
Overall, Roper Technologies Inc (ROP, Financial) has demonstrated strong performance in Q3 2023, with significant increases in revenue and GAAP DEPS, and a positive outlook for the full year 2023.
