Financial Performance and Key Metrics - Total revenue grew by 13%, organic revenue by 4%, and EBITDA by 10% in Q3 2024 [5] - Free cash flow increased by 15% in the quarter and by 20% on a TTM basis [5] - Adjusted DEPS for Q3 was $4.62, above the guidance range of $4.50 to $4.54 [10] - EBITDA margin came in at 40.7% for the quarter [9] - Net debt stood at $8.1 billion, with leverage at 3x trailing EBITDA [12] Business Segment Performance Application Software - Revenue grew by 23% in total and 5.5% organically, with EBITDA margins at 43.6% [16] - Enterprise software bookings grew in the double-digits, up from high single-digits in Q2 [6][16] - Aderant, Deltek, and PowerPlan showed strong performance, with Deltek benefiting from improved enterprise-class government contracting activity [17][18] Network Software - Organic revenue grew by 1%, impacted by freight matching businesses and Foundry [20] - DAT and Loadlink faced challenges due to freight market conditions but showed signs of stabilization [21] - Foundry declined due to the impact of industry strikes, with recovery expected in 2025 [22] TEP Segment - Revenue grew by 4% organically, with EBITDA margins at 35.4% [24] - Neptune resolved mechanical meter production issues and saw strong demand for both mechanical and static meters [24] - Verathon performed exceptionally well, particularly in the US single-use bronchoscope market [25] Market and Strategic Developments - The acquisition of Transact Campus for $1.5 billion net of tax benefits is expected to deliver $325 million in revenue and $105 million in EBITDA next year [12][14] - Transact Campus is being integrated with CBORD, with a long-term organic growth rate expected in the high single-digits [15] - The company raised its full-year 2024 guidance, with total revenue growth expected to be north of 13% and organic growth at approximately 6% [7][27] Management Commentary on Market Conditions - Management noted stabilization in freight markets and expects improvement in Q4 [7][21] - Enterprise software bookings momentum is strong, with double-digit growth in Q3 [6][16] - The company remains bullish on M&A opportunities, with a robust pipeline of attractive acquisitions [28] Q&A Session Highlights Transact Campus Strategy - The acquisition of Transact Campus is part of a strategic shift towards bolt-on acquisitions and faster-growing businesses [32] - The integration with CBORD is expected to create significant value, with low execution risk on cost synergies [31][32] Free Cash Flow and Seasonality - Q3 is now the strongest cash flow quarter, driven by Frontline and Transact Campus [34] - Free cash flow growth was driven by strong execution across software and tech product businesses [10] Macro Headwinds and Recovery - Management sees stabilization in freight markets and expects DAT to return to modest growth in 2025 [39] - Foundry's recovery is delayed due to the impact of industry strikes, with improvement expected in 2025 [22][39] Neptune and Production Issues - Neptune resolved mechanical meter production issues and is back on track operationally [24][36] - Demand for Neptune's products remains strong, with no significant changes in order patterns [60] Enterprise Software Bookings - Enterprise software bookings grew in the double-digits, with strong momentum expected to continue into Q4 [44][45] - Deltek and Aderant showed strong performance, with new customer wins and product expansions [17][45] Leadership Changes - Procare and Frontline saw leadership changes aimed at improving go-to-market capabilities and driving growth [47][48] Generative AI and Competitive Advantage - Generative AI is seen as a barrier to entry for competitors, with Roper's verticalized software businesses well-positioned to leverage AI [51] - The company is focused on developing AI-powered features to enhance customer value and accelerate product innovation [17][51] M&A Strategy and Pipeline - The company has over $4 billion in M&A capacity and remains active in the M&A market, with a focus on high-quality acquisitions [28][65] - The M&A pipeline is robust, with a favorable environment for deal-making [65][67]

Core Insights - Roper Technologies reported $1.76 billion in revenue for Q3 2024, a year-over-year increase of 12.9% and an EPS of $4.62 compared to $4.32 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Revenue Performance - Revenue from Network Software & Systems was $367.10 million, slightly below the average estimate of $370.74 million, with a year-over-year change of +0.8% [2] - Revenue from Technology Enabled Products reached $413.10 million, surpassing the average estimate of $408.15 million, reflecting a year-over-year increase of +4.3% [2] - Revenue from Application Software was $984.40 million, significantly above the average estimate of $943.55 million, showing a year-over-year growth of +22.5% [2] Operating Profit - Operating profit for Application Software was $259.80 million, exceeding the average estimate of $256.60 million [2] - Operating profit for Technology Enabled Products was $141.10 million, above the average estimate of $135.55 million [2] - Operating profit for Network Software & Systems was $166 million, slightly below the average estimate of $166.41 million [2] Stock Performance - Shares of Roper Technologies have remained unchanged over the past month, while the Zacks S&P 500 composite increased by +2.7%, with the stock currently holding a Zacks Rank 2 (Buy) [3]

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' ...

Roper Technologies (ROP) came out with quarterly earnings of $4.62 per share, beating the Zacks Consensus Estimate of $4.53 per share. This compares to earnings of $4.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.99%. A quarter ago, it was expected that this industrial equipment maker would post earnings of $4.46 per share when it actually produced earnings of $4.48, delivering a surprise of 0.45%.Over the last four qua ...

Roper Technologies announces third quarter financial results Sarasota, Florida, October 23, 2024 ... Roper Technologies, Inc. (Nasdaq: ROP) reported financial results for the third quarter ended September 30, 2024. The results in this press release are presented on a continuing operations basis. Third quarter 2024 highlights • Revenue increased 13% to $1.76 billion; organic revenue increased 4% • GAAP DEPS increased 6% to $3.40; adjusted DEPS increased 7% to $4.62 • GAAP net earnings increased 6% to $368 mi ...

Core Insights - Roper Technologies reported a strong financial performance for Q3 2024, with total revenue growth of 13% to $1.76 billion and organic revenue growth of 4% [2][3] - The company increased its full-year guidance for adjusted diluted earnings per share (DEPS) to a range of $18.21 - $18.25, up from the previous guidance of $18.10 - $18.25 [3] - The acquisition of Transact Campus was completed during the quarter, enhancing Roper's portfolio with high-quality vertical software businesses [2] Financial Performance - Revenue for Q3 2024 was $1.76 billion, a 13% increase from $1.56 billion in Q3 2023 [6] - GAAP net earnings rose 6% to $368 million, while adjusted net earnings increased 7% to $499 million [2][7] - Adjusted EBITDA grew by 10% to $717 million, representing 40.7% of revenue [6][9] Earnings Per Share - GAAP DEPS for Q3 2024 was $3.40, a 6% increase from $3.21 in Q3 2023 [8] - Adjusted DEPS increased by 7% to $4.62 compared to $4.32 in the same quarter last year [8] Cash Flow - Operating cash flow for Q3 2024 was $755 million, a 20% increase from $631 million in Q3 2023 [9] - Adjusted operating cash flow rose 17% to $755 million [9] Guidance Update - The company expects full-year 2024 adjusted DEPS of $18.21 - $18.25 and total revenue growth of over 13% [3] - For Q4 2024, adjusted DEPS is projected to be between $4.70 and $4.74 [3] Acquisition Strategy - The acquisition of Transact Campus is expected to create significant value for shareholders and aligns with Roper's disciplined capital deployment strategy [2][3]

Core Viewpoint - Roper Technologies (ROP) is expected to report a quarterly earnings per share (EPS) of $4.53, reflecting a year-over-year increase of 4.9%, with revenues projected at $1.72 billion, a 10.2% increase compared to the previous year [1] Group 1: Earnings and Revenue Estimates - Analysts forecast Roper Technologies' quarterly EPS to be $4.53, indicating a 4.9% increase year-over-year [1] - Revenue is anticipated to reach $1.72 billion, showing a 10.2% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] Group 2: Key Revenue Metrics - Revenue from 'Network Software & Systems' is estimated at $370.74 million, reflecting a 1.8% increase from the prior-year quarter [2] - 'Technology Enabled Products' revenue is projected at $408.15 million, indicating a 3.1% increase year-over-year [2] - 'Application Software' revenue is expected to reach $943.55 million, suggesting a significant 17.4% increase compared to the previous year [2] Group 3: Operating Profit Estimates - The consensus estimate for 'Operating Profit- Application Software' is $255.00 million, up from $206.90 million in the same quarter last year [3] - 'Operating Profit- Technology Enabled Products' is projected at $134.86 million, slightly down from $137.10 million reported in the same quarter last year [3] - Analysts estimate 'Operating Profit- Network Software & Systems' to be $166.18 million, compared to $164.40 million in the previous year [3] Group 4: Stock Performance - Over the past month, Roper Technologies shares have returned +0.5%, while the Zacks S&P 500 composite has increased by +3.8% [3] - ROP currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [3]

ITHACA, N.Y., Oct. 09, 2024 (GLOBE NEWSWIRE) -- CBORD, a leading provider of integrated technology solutions powering access, foodservice, nutrition, commerce, and card systems for higher education, acute healthcare, senior living, and business campuses, is thrilled to announce its CBORD Online Transaction Processing solution has achieved StateRAMP Authorization, reaffirming its commitment to data security and compliance. StateRAMP, a nationally recognized risk authorization management program, provides a s ...

SARASOTA, Fla., Oct. 04, 2024 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (Nasdaq: ROP) announced that its financial results for the third quarter of 2024, ended September 30, 2024, will be released before the market opens on Wednesday, October 23, 2024. A conference call to discuss these results has been scheduled for 8:00 AM ET on Wednesday, October 23, 2024. The call can be accessed via webcast or by dialing +1 800-836-8184 (US/Canada) or +1 646-357-8785, using conference call ID 50829. Webcast informat ...

Group 1: Company Performance - Roper Technologies, Inc. (ROP) is experiencing strong performance in its Application Software segment, particularly in Deltek, Vertafore, Strata, and Aderant, driven by SaaS adoption and GenAI innovation, with organic revenues increasing by 5% year over year in Q2 2024 [1] - The Network Software segment also showed solid momentum, with organic revenues rising by 2% year over year in the same quarter [1] - The Technology Enabled Products segment's organic revenues grew by 5% in Q2 2024, supported by demand for ultrasonic meters and meter data management software [2] Group 2: Acquisitions and Growth Strategy - Roper is focused on acquisitions to access new customers, regions, and product lines, completing the acquisition of Procare Solutions in February 2024 to enhance its education sector software offerings [3] - The acquisition of Syntellis Performance Solutions in August 2023 strengthened Roper's Strata Decision Technology business [3] - In August 2024, Roper announced the acquisition of Transact Campus for $1.5 billion, which will enhance its CBORD business through expertise in campus technology and payment solutions [4] Group 3: Financials and Shareholder Returns - Roper paid out $160.6 million in dividends in the first half of 2024, reflecting a 10.9% year-over-year increase, and raised its quarterly dividend by 10% in November 2023 [5] - The company expects total revenues to increase by 12% in 2024 compared to the previous year, with organic revenues projected to rise by 6% [2] Group 4: Cost and Debt Concerns - Roper is facing rising costs, with cost of sales increasing by 11.8% and SG&A expenses rising by 12% year over year in the first half of 2024 [7] - The company reported long-term debt of $6.92 billion at the end of Q2, with a current portion of long-term debt totaling nearly $500 million, which exceeds its cash equivalents of $251.5 million [9]