In This Article:
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Revenue Growth: 14% total revenue growth for 2024, reaching just over $7 billion.
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Free Cash Flow: Grew 16% to nearly $2.3 billion with a 32% margin.
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EBITDA: $2.8 billion, up 13% from the previous year.
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Organic Revenue Growth: 6% for the year.
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Acquisition Contribution: $3.6 billion deployed towards acquisitions, contributing 9% to Q4 revenue growth.
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EBITDA Margin: 39.6% for Q4.
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Application Software Revenue Growth: 24% in Q4, with 18% from acquisitions and 6% organic.
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Network Software EBITDA Margin: 57.4% in Q4.
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TEP Segment Revenue Growth: 9% for the year, both total and organic.
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2025 Revenue Guidance: Total revenue growth expected to be over 10%, with organic growth between 6% and 7%.
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2025 DEPS Guidance: Adjusted DEPS expected to be between $19.75 and $20.
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Acquisition Firepower: Over $5 billion available for acquisitions.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Roper Technologies Inc (NASDAQ:ROP) reported strong cash flow growth, with a 16% increase in free cash flow, reaching over $2 billion for the first time.
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The company achieved a 14% revenue growth in 2024, balanced between organic and inorganic contributions.
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Roper Technologies Inc (NASDAQ:ROP) has over $5 billion in acquisition firepower, positioning it well for future M&A opportunities.
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The company experienced accelerating demand for mission-critical solutions, with enterprise bookings growing in the high-teens by the end of Q4 2024.
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Roper Technologies Inc (NASDAQ:ROP) successfully deployed $3.6 billion towards market-leading vertical software businesses, including acquisitions of Procare and Transact Campus.
Negative Points
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Core EBITDA margin was down 30 basis points compared to the prior year, indicating some pressure on profitability.
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Some software businesses within the AS segment took $9 million in restructuring actions, which impacted Q4 results.
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The Network Software segment only achieved 3% revenue growth, partly due to challenges in the freight matching business and the writers and actors strikes affecting Foundry.
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The company faces potential risks from US policy changes affecting the Deltek business, which serves federal government contractors.
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Roper Technologies Inc (NASDAQ:ROP) anticipates lower organic revenue growth in the first quarter of 2025 due to a tough comparison created by MHA in the previous year.
Q & A Highlights
Q: How clean is the 6% to 7% organic growth outlook for 2025? Are there any notable one-off headwinds or tailwinds affecting this? A: Jason Conley, CFO, explained that there are no significant one-time factors affecting the growth outlook. He mentioned a minor impact in Q1 due to a previous one-time event in their MHA business, but overall, the growth is expected to pick up from Q2 onwards, with strong growth anticipated across the enterprise.