Initiates 2025 guidance
SARASOTA, Fla., Jan. 30, 2025 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (Nasdaq: ROP) reported financial results for the fourth quarter and full year ended December 31, 2024. The results in this press release are presented on a continuing operations basis.
Fourth quarter 2024 highlights
- Revenue increased 16% to $1.88 billion; acquisition contribution was +9% and organic revenue was +7%
- Operating cash flow was $722 million; adjusted operating cash flow increased 13%
- GAAP net earnings increased 22% to $462 million; adjusted net earnings increased 10% to $520 million
- Adjusted EBITDA increased 13% to $744 million
- GAAP DEPS increased 22% to $4.28; adjusted DEPS increased 10% to $4.81
- Revenue increased 14% to $7.04 billion; acquisition contribution was +8% and organic revenue was +6%
- Operating cash flow was $2.39 billion; adjusted operating cash flow increased 16%
- GAAP net earnings increased 13% to $1.55 billion; adjusted net earnings increased 10% to $1.98 billion
- Adjusted EBITDA increased 13% to $2.83 billion
- GAAP DEPS increased 13% to $14.35; adjusted DEPS increased 10% to $18.31
2025 outlook and guidance
"Roper not only grew substantially in 2024, but we enter 2025 as a fundamentally better company. This past year, we upgraded key leadership talent, expanded our capital deployment function, and advanced our operating model. As a result, we are entering 2025 with broad-based and positive momentum. Our double-digit 2025 total revenue growth outlook is fueled by improving organic growth and meaningful contributions from our 2024 acquisitions. We believe these growth trends, combined with our significant M&A firepower and large pipeline of attractive acquisition opportunities, position Roper well to continue delivering compelling long-term cash flow compounding for our shareholders," concluded Mr. Hunn.
Roper expects full year 2025 adjusted DEPS of $19.75 - $20.00 with first quarter adjusted DEPS of $4.70 - $4.74. The Company expects full year total revenue growth of 10%+, with organic revenue growth of +6 - 7%.
The Company's guidance excludes the impact of unannounced future acquisitions or divestitures.
Conference call to be held at 8:00 AM (ET) today
A conference call to discuss these results has been scheduled for 8:00 AM ET on Thursday, January 30, 2025. The call can be accessed via webcast or by dialing +1 800-836-8184 (US/Canada) or +1 646-357-8785, using conference call ID 30275. Webcast information and conference call materials will be made available in the Investors section of Roper's website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://event.webcast. Telephonic replays will be available for up to two weeks and can be accessed by dialing +1 646-517-4150 with access code 30275#.
Use of non-GAAP financial information
The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.
Minority interests
Following the sale of a majority stake in its industrial businesses to CD&R, Roper holds a minority interest in Indicor. The fair value of Roper's equity investment in Indicor is updated on a quarterly basis and reported as "equity investments gain, net." During the quarter, Roper sold its minority interest in Certinia and recognized the associated gain within "equity investments gain, net." Roper makes non-GAAP adjustments for the impacts associated with these investments.
| Table 1: Revenue and adjusted EBITDA reconciliation ($M)
(from continuing operations) | |||||||||||||||||||||||
| Q4 2023 | Q4 2024 | V % | FY 2023 | FY 2024 | V % | ||||||||||||||||||
| GAAP revenue | $ | 1,613 | $ | 1,877 | 16 | % | $ | 6,178 | $ | 7,039 | 14 | % | |||||||||||
| Components of revenue growth | |||||||||||||||||||||||
| Organic | 7 | % | 6 | % | |||||||||||||||||||
| Acquisitions | 9 | % | 8 | % | |||||||||||||||||||
| Foreign exchange | - | % | - | % | |||||||||||||||||||
| Revenue growth | 16 | % | 14 | % | |||||||||||||||||||
| Adjusted EBITDA reconciliation | |||||||||||||||||||||||
| GAAP net earnings | $ | 378 | $ | 462 | $ | 1,368 | $ | 1,549 | |||||||||||||||
| Taxes | 99 | 128 | 375 | 418 | |||||||||||||||||||
| Interest expense | 50 | 71 | 165 | 259 | |||||||||||||||||||
| Depreciation | 9 | 9 | 35 | 37 | |||||||||||||||||||
| Amortization | 187 | 202 | 720 | 776 | |||||||||||||||||||
| EBITDA | $ | 723 | $ | 873 | 21 | % | $ | 2,663 | $ | 3,039 | 14 | % | |||||||||||
| Restructuring-related expenses associated with the Syntellis ('23) and Transact ('24) acquisitions | - | - | 9 | 9 | |||||||||||||||||||
| Transaction-related expenses for completed acquisitions | 3 | 1 | 8 | 8 | |||||||||||||||||||
| Financial impacts associated with the minority investments in Indicor & CertiniaA | (67 | ) | (141 | ) | (165 | ) | (235 | ) | |||||||||||||||
| Gain on sale of non-operating assets | - | - | (3 | ) | - | ||||||||||||||||||
| Legal settlement charge | - | 11 | - | 11 | |||||||||||||||||||
| Adjusted EBITDA | $ | 659 | $ | 744 | 13 | % | $ | 2,511 | $ | 2,832 | 13 | % | |||||||||||
| % of revenue | 40.8 | % | 39.6 | % | (120 bps | ) | 40.6 | % | 40.2 | % | (40 bps | ) | |||||||||||
| Table 2: Adjusted net earnings reconciliation ($M) (from continuing operations) | |||||||||||||||||||||||
| Q4 2023 | Q4 2024 | V % | FY 2023 | FY 2024 | V % | ||||||||||||||||||
| GAAP net earnings | $ | 378 | $ | 462 | 22 | % | $ | 1,368 | $ | 1,549 | 13 | % | |||||||||||
| Restructuring-related expenses associated with the Syntellis ('23) and Transact ('24) acquisitions | - | - | 7 | 7 | |||||||||||||||||||
| Transaction-related expenses for completed acquisitions | 2 | 1 | 6 | 6 | |||||||||||||||||||
| Financial impacts associated with the minority investments in Indicor & CertiniaA | (52 | ) | (105 | ) | (135 | ) | (182 | ) | |||||||||||||||
| Gain on sale of non-operating assets | - | - | (3 | ) | - | ||||||||||||||||||
| Legal settlement charge | - | 9 | - | 9 | |||||||||||||||||||
| Amortization of acquisition-related intangible assetsB | 143 | 153 | 552 | 588 | |||||||||||||||||||
| Adjusted net earningsC | $ | 471 | $ |
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