Roper(ROP)2024-08-01 21:23Financial Performance - Net revenues for Q2 2024 were $1,716.8 million, a 12.1% increase from $1,531.2 million in Q2 2023[63] - Net revenues for the six months ended June 30, 2024, were $3,397.5 million, an increase of 13.2% compared to $3,000.9 million for the same period in 2023[70] - The company reported an organic revenue growth of 4.1% for the total business in Q2 2024[63] - Backlog increased by 3.3% to $2,836.4 million as of June 30, 2024, compared to $2,746.8 million as of June 30, 2023, driven by acquisitions and organic growth in the Application Software segment[68] Segment Performance - Application Software segment revenue grew by 21.0%, while Network Software and Technology Enabled Products segments grew by 1.7% and 4.5%, respectively[63] - Gross margin for the Application Software segment increased to 69.3% for the six months ended June 30, 2024, compared to 68.6% for the same period in 2023[70] - The Technology Enabled Products segment saw a gross margin increase to 58.1% in Q2 2024 from 57.6% in Q2 2023[65] Margins and Expenses - Gross margin for the total business was 69.5% in Q2 2024, slightly down from 69.7% in Q2 2023[61] - Operating margin for the total business improved to 32.4% in Q2 2024 compared to 32.2% in Q2 2023[61] - Operating margin improved to 26.9% for the six months ended June 30, 2024, compared to 25.7% for the same period in 2023[70] - Selling, general and administrative expenses as a percentage of net revenues decreased to 37.1% in Q2 2024 from 37.5% in Q2 2023[61] - SG&A expenses as a percentage of net revenues decreased to 42.5% for the six months ended June 30, 2024, from 42.9% for the same period in 2023[70] Earnings and Interest - Net earnings from continuing operations were 19.6% of revenues in Q2 2024, down from 23.6% in Q2 2023[61] - Interest expense increased to $67.5 million in Q2 2024 from $34.8 million in Q2 2023 due to higher borrowings[66] - The interest expense, net, increased to $120.7 million for the six months ended June 30, 2024, compared to $72.2 million for the same period in 2023[73] Cash Flow and Debt - Cash provided by operating activities increased by 17% to $915.6 million for the six months ended June 30, 2024, compared to $785.0 million for the same period in 2023[75] - Total debt, net of deferred financing costs, was $7,423.9 million as of June 30, 2024, compared to $6,330.1 million as of December 31, 2023[79] Investments and Acquisitions - Equity investments (gain) loss, net, was a gain of $56.2 million for the six months ended June 30, 2024, compared to a gain of $64.8 million for the same period in 2023[74] - The company maintains an active acquisition program, with future acquisitions dependent on various factors including market conditions[82] Market Risk - No material changes in market risk disclosures during the six months ended June 30, 2024[85]