Accenture(US:ACN)2024-12-19 11:46Revenue Growth and Performance - Q1 FY25 revenues reached $17.7 billion, a 9% increase in USD and 8% in local currency, with consulting revenues at $9.0 billion and managed services revenues at $8.6 billion[1][3][7] - Full-year FY25 revenue growth outlook raised to 4%-7% in local currency, with a revised foreign exchange impact of -0.5%[2][25] - Accenture's revenues for Q1 2025 increased by 9% to $17.69 billion compared to $16.22 billion in Q1 2024[38] - Americas market revenues grew 9% in USD and 11% in local currency to $8.73 billion, while EMEA revenues increased 10% in USD and 6% in local currency to $6.41 billion[15][16] - Health & Public Service revenues grew 13% in USD and 12% in local currency to $3.81 billion, while Products revenues increased 12% in USD and 10% in local currency to $5.43 billion[18] - Americas region revenues increased by 9% to $8.73 billion, with operating income up 6.5% to $1.38 billion[39][40] - EMEA region revenues grew by 10% to $6.41 billion, with operating income surging by 25.8% to $1.04 billion[39][40] - Asia Pacific region revenues increased by 6% to $2.54 billion, with operating income up 19.4% to $535 million[39][40] - Health & Public Service industry group saw the highest revenue growth at 13%, reaching $3.81 billion[39] - Managed Services revenues grew by 11% to $8.64 billion, outpacing Consulting revenues which increased by 7% to $9.05 billion[39] Earnings and Profitability - GAAP operating margin improved to 16.7%, up 90 basis points, with GAAP EPS of $3.59, a 16% increase[1][4][6] - GAAP diluted EPS for FY25 is now expected to be in the range of $12.43 to $12.79, reflecting increased revenue outlook[2][27] - Operating income rose by 16.7% to $2.95 billion, with an operating margin of 16.7%, up from 15.8% in the previous year[38] - Net income attributable to Accenture plc grew by 15.5% to $2.28 billion, with a net income margin of 12.9%, up from 12.2% in Q1 2024[38] - Operating income for the three months ended November 30, 2024, was $2,948,477, compared to $2,564,887 for the same period in 2023, reflecting a 15% increase[42] - Operating margin improved to 16.7% for the three months ended November 30, 2024, up from 15.8% in the same period in 2023[42] - Net income for the three months ended November 30, 2024, was $2,316,190, compared to $2,009,981 for the same period in 2023, a 15.2% increase[42] - Diluted earnings per share for the three months ended November 30, 2024, were $3.59, up from $3.10 in the same period in 2023[42] - Adjusted operating income (non-GAAP) for Q1 2025 was $2.95 billion, representing a 16.7% margin, consistent with GAAP operating income[41] Cash Flow and Financial Position - Q1 FY25 operating cash flow was $1.02 billion, with free cash flow of $870 million, up from $430 million in the same period last year[13] - Total cash balance at November 30, 2024, was $8.3 billion, compared to $5.0 billion at August 31, 2024[14] - Cash and cash equivalents increased to $8,306,055 as of November 30, 2024, from $5,004,469 as of August 31, 2024[43] - Total assets increased to $59,868,070 as of November 30, 2024, from $55,932,363 as of August 31, 2024[43] - Net cash provided by operating activities for the three months ended November 30, 2024, was $1,022,486, compared to $498,551 for the same period in 2023[44] - Net cash used in investing activities for the three months ended November 30, 2024, was $385,524, compared to $855,430 for the same period in 2023[44] - Net cash provided by financing activities for the three months ended November 30, 2024, was $2,751,748, compared to a net cash used of $1,551,913 for the same period in 2023[44] Bookings and Business Segments - New bookings totaled $18.7 billion, a 1% increase in both USD and local currency, including $1.2 billion in generative AI bookings[1][3][6] - Consulting new bookings were $9.22 billion (49% of total), while managed services new bookings were $9.48 billion (51% of total)[15] Costs and Optimization - Business optimization costs in Q1 2024 were $139.66 million, which were excluded from non-GAAP operating income calculations[41] - The company recorded $139,664 in costs related to business optimization initiatives, primarily for employee severance, during the three months ended November 30, 2023[42]