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,abovetheguidancerangeof4.50 to 4.54[10]−EBITDAmargincameinat40.78.1 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 1.5billionnetoftaxbenefitsisexpectedtodeliver325 million in revenue and 105millioninEBITDAnextyear[12][14]−TransactCampusisbeingintegratedwithCBORD,withalong−termorganicgrowthrateexpectedinthehighsingle−digits[15]−Thecompanyraiseditsfull−year2024guidance,withtotalrevenuegrowthexpectedtobenorthof134 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]
Roper(ROP)2024-10-23 16:28