Accenture(ACN) - 2024 Q3 - Quarterly Results

Financial Performance - New bookings reached $21.1 billion, a 22% increase in U.S. dollars and 26% in local currency compared to the same quarter last year[1] - Revenues totaled $16.5 billion, reflecting a 1% decrease in U.S. dollars but a 1.4% increase in local currency[1] - Consulting revenues were $8.5 billion, down 3% in U.S. dollars and 1% in local currency, while managed services revenues increased to $8.0 billion, up 2% in U.S. dollars and 4% in local currency[5] - Total revenues for the three months ended May 31, 2024, were $16,466,828, a decrease of 1% compared to $16,564,585 for the same period in 2023[26] - For the nine months ended May 31, 2024, total revenues were $48,490,645, reflecting a 1% increase from $48,126,545 in the prior year[26] Earnings and Margins - GAAP operating margin improved to 16.0%, an increase of 180 basis points year-over-year, with adjusted operating margin at 16.4%, up 10 basis points[1] - GAAP diluted EPS was $3.04, a 3% decrease from the previous year, while adjusted EPS was $3.13, down 2%[4] - Basic earnings per share for the three months ended May 31, 2024, were $3.07, down from $3.18 in the prior year[25] - The adjusted operating income for the three months ended May 31, 2024, was $2,708,285, with an adjusted operating margin of 16.4%[30] - Diluted earnings per share for the three months ended May 31, 2024, was $3.04, a decrease from $3.15 in the same period of 2023[32] Cash Flow and Dividends - Free cash flow for the quarter was $3.02 billion, down from $3.15 billion in the same period last year[8] - The quarterly cash dividend was increased by 15% to $1.29 per share, totaling $811 million in payments[13] - Cash dividends per share increased to $1.29 for the three months ended May 31, 2024, compared to $1.12 in the same period last year[25] - The company reported a net cash provided by operating activities of $3,142,002 for the three months ended May 31, 2024, compared to $3,289,371 for the same period in 2023[35] Acquisitions and Investments - Accenture has made 35 acquisitions year-to-date, deploying $5.2 billion in capital[2] - The company made purchases of businesses and investments totaling $2,329,700 during the three months ended May 31, 2024[35] Income and Expenses - Operating income for the three months ended May 31, 2024, was $2,630,865, representing an increase of 11.5% from $2,359,288 in the same period last year[28] - Net income for the three months ended May 31, 2024, was $1,981,348, or 12.0% of revenues, compared to $2,048,335, or 12.4% of revenues in the same period last year[25] - The company reported a net income of $7,242,179 for the nine months ended May 31, 2024, an increase of 5% from $6,896,969 in the same period last year[30] - Total operating expenses for the three months ended May 31, 2024, were $13,835,963, a decrease from $14,205,297 in the same period last year[25] Tax and Effective Rates - The effective income tax rate for the three months ended May 31, 2024, was 16.1%, compared to 15.9% in the prior year[25] - The effective tax rate for the three months ended May 31, 2024, was 25.4%, slightly up from 22.2% in the same period of 2023[32] Market Performance - North America revenue increased by 1% to $7,834,206, while EMEA revenue decreased by 2% to $5,776,624, and Growth Markets revenue decreased by 4% to $2,855,998[26] - The Health & Public Service segment saw a 10% increase in revenue to $10,226,769 for the nine months ended May 31, 2024[26] - Managed Services revenue increased by 4% to $23,555,936 for the nine months ended May 31, 2024, compared to $22,710,385 in the previous year[28] Risks and Future Outlook - The company expects full-year revenue growth of 1.5% to 2.5% in local currency for fiscal 2024, with a negative foreign-exchange impact of 0.7%[16] - GAAP diluted EPS guidance for fiscal 2024 is projected to be between $11.29 and $11.44, reflecting a 5% to 6% increase over fiscal 2023[17] - The company continues to face risks related to economic conditions, client demand, and competition, which could impact future performance[22] Asset Management - Total current assets decreased to $21,075,418 as of May 31, 2024, from $23,381,931 as of August 31, 2023[33] - Total assets increased to $54,141,319 as of May 31, 2024, compared to $51,245,305 as of August 31, 2023[33] - Total shareholders' equity increased to $28,619,742 as of May 31, 2024, from $26,458,593 as of August 31, 2023[33] - Cash and cash equivalents at the end of the period were $5,537,217, down from $8,535,446 at the end of the same period in 2023[35]