Core Viewpoint - Roper Technologies (ROP) shares have increased by approximately 3.2% over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - Estimates for Roper Technologies have trended upward over the past month, indicating positive sentiment among analysts [2] - The stock has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return in the coming months [4] Group 2: VGM Scores - Roper Technologies has an average Growth Score of C and a Momentum Score of B, while it received a D grade for value, placing it in the bottom 40% for this investment strategy [3] - The overall aggregate VGM Score for the stock is C, which is relevant for investors not focused on a single strategy [3] Group 3: Industry Performance - Roper Technologies is part of the Zacks Computers - IT Services industry, where ServiceNow (NOW) has gained 9% over the past month [5] - ServiceNow reported revenues of $3.09 billion for the last quarter, reflecting a year-over-year increase of 18.6%, with EPS rising from $3.41 to $4.04 [5] - ServiceNow is expected to post earnings of $3.53 per share for the current quarter, representing a year-over-year change of 12.8% [6]

Group 1 - Roper Technologies, Inc. will present at the TD Cowen 53rd Annual Technology, Media & Telecom Conference on May 29, 2025, at 9:05 AM (Eastern Time) in New York, NY [1] - A webcast link for the presentation will be available in the "Investors" section of the company's website [1] Group 2 - Roper Technologies is a constituent of the Nasdaq 100, S&P 500, and Fortune 1000 [2] - The company has a long-term track record of compounding cash flow and shareholder value [2] - Roper operates market-leading businesses that design and develop vertical software and technology-enabled products for various niche markets [2] - The company employs a disciplined, analytical, and process-driven approach to redeploy excess capital toward high-quality acquisitions [2]

Core Insights - Roper Technologies, Inc. (ROP) is experiencing growth across multiple segments, driven by strong demand for SaaS solutions and GenAI innovations [1][2][3] Application Software Segment - The Application Software segment is benefiting from solid momentum in Deltek, Vertafore, PowerPlan, and Aderant businesses, with strong demand for SaaS solutions in both GovCon and private sectors [1] - Aderant's growth is supported by the increasing adoption of SaaS solutions, while Deltek's cloud offerings are also performing well [1] - Vertafore is achieving strong annual recurring revenue (ARR) growth due to excellent enterprise delivery capabilities [1] - PowerPlan is seeing strong customer retention and new SaaS solution adoption [1] Network Software Segment - The Network Software segment is growing due to solid demand for Gen AI-powered solutions and strong customer retention in the ConstructConnect business [2] - Increased average revenue per user (ARPU) is being driven by product packaging and cross-sell activities in the DAT business [2] - Continued growth in SoftWriters and SHP alternate site healthcare businesses is also contributing positively to the segment [2] Technology Enabled Products Segment - Growth in the Technology enabled Products segment is supported by strong performance in the Neptune business, driven by demand for ultrasonic meters [3] - The Verathon business is also performing well, particularly in single-use BFlex & GlideScope offerings [3] - Demand for cardiac and orthopedic surgical programs is aiding the NDI business [3] Acquisitions and Growth - Roper's acquisitions have significantly boosted sales, with an 8% increase in the first quarter of 2025 attributed to these asset additions [4] - The acquisition of CentralReach is expected to enhance organic revenue and EBITDA growth due to its strong recurring revenue mix and customer retention capabilities [4] - Recent acquisitions, including Trucker Tools LLC and Transact Campus, are strengthening Roper's product offerings and capabilities in their respective markets [5] Shareholder Returns - Roper is committed to rewarding shareholders, with dividend payments of $88.6 million in the first quarter of 2025, reflecting a 10.1% year-over-year increase [6] - Total dividend payments in 2024 reached $321.9 million, up 10.9% year over year, with a 10% hike announced in November 2024 [6] Stock Performance - Roper's shares have gained 11.7% year-to-date, outperforming the industry, which has seen a 5.0% decline [7]

Core Insights - IntelliTrans has been recognized as one of the Top 100 Logistics & Supply Chain Technology Providers for 2025 by Inbound Logistics, highlighting its commitment to innovation and excellence in addressing modern supply chain challenges [1][4] - The selection process involved over 400 technology leaders, positioning IntelliTrans among an elite group of solution providers that empower businesses with data-driven insights and advanced tools [2] - The recognition reflects IntelliTrans' dedication to customer success by delivering tailored solutions that address industry pain points, enabling customers to unlock new opportunities for expansion and efficiency [3] Company Overview - IntelliTrans, a subsidiary of Roper Technologies (Nasdaq: ROP), specializes in multimodal transportation solutions, optimizing supply chains through seamless freight management across various transportation modes including rail, truck, ocean, and barge [5] - The company has received multiple awards, including the Inbound Logistics Top 100 Logistics IT Provider Award, the 2023 BIG Innovation Award, the Cloud Computing Product of the Year Award, and the Food Logistics/SDCE Top Software and Technology Award [5] - IntelliTrans is headquartered in Atlanta, GA, with additional offices in Conway, AR, and internationally in Sweden and the UK [5]

Core Insights - Roper Technologies is assessing the impact of the new Trump administration on M&A activity, hoping for a more favorable economic environment [1] Company Analysis - Roper Technologies aims to identify the best businesses globally to create a long-term portfolio that can outperform the market [1]

Financial Performance - Net revenues for Q1 2025 were $1,882.8 million, a 12.0% increase from $1,680.7 million in Q1 2024[66] - Application Software segment revenue grew 19.3% to $1,068.2 million, driven by acquisitions and a 5.9% organic growth[66] - Network Software segment revenue increased 1.4% to $375.9 million, with a 0.7% organic growth[67] - Technology Enabled Products segment revenue rose 5.8% to $438.7 million, supported by a 6.0% organic growth[68] - Gross margin for total revenues decreased to 68.7% in Q1 2025 from 70.3% in Q1 2024[64] - Backlog increased 3.5% to $3,033.8 million as of March 31, 2025, compared to $2,932.4 million in 2024[73] Cash Flow and Investments - Cash provided by operating activities decreased by 1% to $528.7 million in Q1 2025 from $531.5 million in Q1 2024[75] - Cash used in investing activities in Q1 2025 was $146.8 million, primarily for the acquisition of Muni-Link[76] - Capital expenditures for the three months ended March 31, 2025, were $9.5 million, slightly up from $9.3 million for the same period in 2024[81] Debt and Financial Position - Interest expense, net, increased to $62.9 million in Q1 2025 from $53.2 million in Q1 2024[70] - Corporate expenses rose to $71.3 million, or 3.8% of net revenues, in Q1 2025 compared to $61.5 million, or 3.7% of net revenues, in Q1 2024[69] - Total debt, net of deferred financing costs, was $7,456.4 million as of March 31, 2025, down from $7,623.0 million at December 31, 2024, reflecting a decrease of approximately 2.2%[81] - Net working capital was negative $1,356.8 million at March 31, 2025, an improvement from negative $1,434.6 million at December 31, 2024[81] - The net debt to total net capital ratio improved to 26.9% as of March 31, 2025, compared to 28.3% at December 31, 2024[81] - The company had no borrowings outstanding under its unsecured revolving credit facility as of March 31, 2025, with $6.8 million in outstanding letters of credit[78] Future Outlook and Strategic Plans - The company expects to generate positive cash flows from operating activities, which will support the reduction of outstanding debt[84] - Future acquisitions will depend on various factors, and financing may come from existing credit agreements or future cash flows[83] - The company plans to repatriate substantially all historical and future earnings from foreign subsidiaries[79] - Current geopolitical and economic uncertainties may adversely affect the company's business prospects[82]

Roper Technologies, Inc ROP reported better-than-expected earnings for its first quarter and raised its forecast on Monday. The company posted first-quarter adjusted earnings per share of $4.78, beating the street view of $4.74. Quarterly sales of $1.88 billion outpaced the analyst consensus estimate of $1.82 billion. "Roper had a strong start to 2025 and our enterprise continues to execute at a high level," said Neil Hunn, Roper's President and CEO. "Our total revenue growth of 12% was driven by an 8% acqu ...

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 grew by 12% to $1,900,000,000, with organic revenue increasing by 5% [6][17] - EBITDA reached $740,000,000, up over 9% year-over-year, with a reported EBITDA margin of 39.3%, down 90 basis points from the prior year [18][19] - Diluted EPS was $4.78, exceeding guidance of $4.70 to $4.75 [20] - Free cash flow for Q1 was $507,000,000, down 1% year-over-year, impacted by a legal settlement [20][21] Business Line Data and Key Metrics Changes - Application Software segment revenue grew by 19% in total and 6% organically, with EBITDA margins at 41.4% [23] - Network Software segment organic revenue grew by 1%, with EBITDA margins remaining strong at 55.3% [28] - TEP segment revenue grew by 6% on both total and organic bases, with EBITDA margins at 36.2% [31] Market Data and Key Metrics Changes - Over 85% of revenues are generated in the U.S., with over 85% of software revenues recurring [8] - Central Reach, acquired for $1,650,000,000, is expected to deliver approximately $175,000,000 in revenue and $75,000,000 in EBITDA for the TTM period ending June 2026 [11][12] Company Strategy and Development Direction - The company is raising its full-year total revenue guidance from 10% to approximately 12% due to a solid start to the year and the completion of the Central Reach acquisition [7][38] - The company emphasizes its durable business model, with a focus on capital deployment and maintaining over $5,000,000,000 of available capital for acquisitions [6][41] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting that while there is uncertainty, the pipeline remains robust [49] - The company expects organic growth rates to remain in the mid-single digits for the year, despite some challenges in specific segments like Deltek [66] Other Important Information - The acquisition of Central Reach is seen as a strategic move to enhance the company's offerings in the autism care market, with expected growth drivers including a shortage of ABA therapists [12][15] - The company is actively pursuing additional acquisition opportunities, with a strong pipeline of potential deals [22][42] Q&A Session Summary Question: What is the perspective on private equity behavior? - Management noted a slowdown in deal activity due to macro uncertainty but highlighted a robust pipeline and ongoing conversations with sponsors [48] Question: What is the exposure of Deltek to government contracting? - Deltek's business is 60% focused on federal government contractors, with current uncertainties affecting growth rates [51][52] Question: Will free cash flow return to growth in June? - Management indicated that free cash flow is expected to be back-end weighted, with stronger performance anticipated in the second half of the year [56][58] Question: How does Central Reach's AI revenue look? - Central Reach's AI products are new and not yet a material revenue source, but they are expected to be significant growth drivers moving forward [81] Question: What is the outlook for core EBITDA margins? - Core EBITDA margins are expected to improve slightly throughout the year, with acquisition margins anticipated to increase as well [85]

Q1 2025 Financial results April 28, 2025 Safe harbor statement The information provided in this presentation contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements may include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements may be indi ...