Roper Technologies Delivers Impressive Q3 Results, Raises Full-Year Guidance

Roper Technologies, Inc. (Nasdaq: ROP), a leading diversified technology company, has reported its financial results for the third quarter ended September 30, 2024. The company's performance showcases its ability to navigate the dynamic market landscape, delivering strong growth and profitability across its portfolio of market-leading businesses.

Unlocking Value Through Operational Excellence and Strategic Acquisitions

Robust Revenue Growth and Margin Expansion

Roper Technologies' third-quarter results demonstrate the company's unwavering commitment to operational excellence. The company reported a 13% increase in revenue to $1.76 billion, with organic revenue growth of 4%. This impressive performance was driven by the continued expansion of Roper's recurring revenue base and the strong demand for its mission-critical solutions across its diverse business segments.The company's GAAP net earnings increased by 6% to $368 million, while adjusted net earnings grew by 7% to $499 million. Roper's adjusted EBITDA also saw a 10% increase, reaching $717 million, showcasing the company's ability to drive profitability and operational efficiency.

Disciplined Capital Deployment and Strategic Acquisitions

Roper's strategic focus on disciplined capital deployment and strategic acquisitions has been a key driver of its success. During the third quarter, the company completed the acquisition of Transact Campus, which has been combined with its CBORD business. This acquisition adds another high-quality vertical software business to Roper's portfolio, presenting compelling value creation opportunities for its shareholders."We remain well positioned to execute our disciplined and process-driven capital deployment strategy, with significant M&A firepower and a robust pipeline of acquisition opportunities," said Neil Hunn, Roper Technologies' President and CEO.

Raising Full-Year Guidance

Roper's strong third-quarter performance has led the company to increase its full-year 2024 adjusted DEPS guidance to the high end of the range, now expected to be $18.21 – $18.25. The company has also increased its full-year total revenue growth outlook to 13%+ and continues to expect organic revenue growth of approximately 6%."Our portfolio of market-leading technology businesses delivered another solid quarter, highlighted by 13% total revenue growth, 10% EBITDA growth, and 15% free cash flow growth," said Mr. Hunn. "We are, again, increasing our full year guidance to the high end of the range, supported by our third quarter results, the continued expansion of our recurring revenue base, and improving demand for our businesses' mission critical solutions."

Leveraging Minority Investments for Competitive Advantage

Roper's strategic approach extends beyond organic growth and acquisitions, as the company also holds minority interests in Indicor and Certinia. These investments provide Roper with additional avenues for value creation, as the company leverages its expertise and resources to support the growth and development of these businesses.The fair value of Roper's equity investment in Indicor is updated on a quarterly basis and reported as "equity investments gain, net." Similarly, the company's investment in Certinia, a leading provider of professional services automation software, is accounted for under the equity method, with Roper's proportionate share of earnings or loss associated with this investment also reported as "equity investments gain, net."

Commitment to Transparency and Non-GAAP Reporting

Roper Technologies is committed to providing investors with comprehensive and transparent financial information. The company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information, offering greater insight and a more comprehensive understanding of its financial and operational performance.The non-GAAP financial measures disclosed by Roper, such as adjusted EBITDA, adjusted net earnings, and adjusted DEPS, are designed to provide investors with a clearer picture of the company's underlying business performance, allowing for more informed decision-making.