Roper(ROP) - 2024 Q2 - Quarterly Results

Revenue Growth - Revenue increased 12% to $1.72 billion, with organic revenue growth of 4%[18] - The company anticipates full year total revenue growth of approximately 12% and organic revenue growth of approximately 6%[19] - Total net revenues for the three months ended June 30, 2024, increased to$ 1,716.8 million, up from $1,531.2 million in the same period last year, representing a growth of 12.1%[35] Earnings Performance - GAAP net earnings decreased 7% to$ 337 million, while adjusted net earnings increased 9% to $483 million[18] - Adjusted EBITDA rose 13% to$ 695 million, representing 40.5% of revenue[26] - Net earnings from continuing operations for the three months ended June 30, 2024, were $337.1 million, a decrease from$ 361.0 million in the same quarter of 2023, reflecting a decline of 6.5%[35] - Basic net earnings per share from continuing operations for the three months ended June 30, 2024, were $3.15, down from$ 3.38 in the prior year[35] - Net earnings from continuing operations for the six months ended June 30, 2024, were $719.1 million, compared to$ 645.3 million in 2023, representing an increase of approximately 11.5%[48] Cash Flow and Liquidity - Operating cash flow increased 20% to $384 million, contributing to a trailing-twelve-month adjusted free cash flow of$ 2.1 billion, or 32% of revenue[1] - Free cash flow for Q2 2024 was $367 million, reflecting a 24% increase year-over-year[1] - Cash provided by operating activities from continuing operations was$ 915.6 million, up from $785.0 million in the previous year, indicating a growth of about 16.6%[48] - The company experienced a net increase in cash and cash equivalents of$ 37.2 million, a significant decrease compared to $670.0 million in the previous period[48] - Cash and cash equivalents at the end of the period were$ 251.5 million, down from $1,462.8 million at the end of the previous year[48] Expenses and Investments - Selling, general and administrative expenses for the three months ended June 30, 2024, were$ 699.1 million, compared to $631.8 million in the same period last year, an increase of 10.7%[35] - Cash used in investing activities from continuing operations of$ (1,887.4) million, significantly higher than $(52.3) million in the prior year[48] - Amortization of intangible assets rose to$ 377.2 million from $350.6 million, indicating ongoing investment in intangible resources[48] - Non-cash stock compensation increased to$ 73.3 million from $63.5 million, reflecting adjustments in employee compensation strategies[48] Assets and Liabilities - Total assets as of June 30, 2024, increased to$ 29,847.5 million, compared to $28,167.5 million as of December 31, 2023, marking a growth of 5.96%[34] - Cash and cash equivalents rose to$ 251.5 million as of June 30, 2024, up from $214.3 million at the end of 2023, indicating an increase of 17.3%[34] - Accounts receivable decreased to$ 739.9 million from $829.9 million, reflecting a decline of 10.8%[34] - Goodwill increased to$ 18,313.1 million as of June 30, 2024, from $17,118.8 million at the end of 2023, reflecting an increase of 7.0%[34] Future Guidance - For Q3 2024, the company expects adjusted DEPS of$ 4.50 - $4.54[2] - Full year 2024 adjusted DEPS guidance raised to$ 18.10 - $18.25, compared to previous guidance of$ 18.05 - $18.25[19] Strategic Opportunities - The company reported a robust pipeline of attractive acquisition opportunities and substantial M&A capacity[18] - Financial impacts associated with minority investments in Indicor and Certinia were noted, with adjustments made in non-GAAP measures[6]