Revenue Growth: Total revenue increased by 14% year-over-year to $1.68 billion.
Organic Revenue Growth: Organic revenue growth was at 8%.
EBITDA Growth: EBITDA increased by 16% year-over-year to $676 million.
EBITDA Margin: Expanded by 60 basis points to 40.2%.
Adjusted DEPS: Diluted Earnings Per Share (DEPS) grew by 13% to $4.41, beating guidance.
Free Cash Flow: Grew 15% year-over-year with free cash flow margins of 31%.
Acquisition: Completed the acquisition of Procare Solutions for $1.75 billion.
Future Guidance
Total Revenue Growth: Expecting around 12% growth for the full year, up from the initial guide of 11% to 12%.
Organic Revenue Growth: Updated to approximately 6%, an increase from the previously guided 5% to 6%.
Adjusted DEPS Guidance: For the full year, adjusted upwards to a range of $18.05 to $18.25, from $17.85 to $18.15.
Effective Tax Rate: Forecasted to be in the 21% to 22% range for the full year.
Q2 Adjusted DEPS: Expected to be in the range of $4.42 to $4.46.
Trends, Market Conditions, Sentiment
Strong Market Position: The company is well-positioned for continued growth, with a focus on high-quality acquisitions and organic growth.
Capital Deployment: Roper is poised for active M&A activity with a very robust pipeline of opportunities and $4 billion+ of capital deployment capacity.
Operational Highlights: Notable operational success includes solid performance across application software and network software segments despite certain market headwinds.
Sector Performance: The technology-enabled products segment showed remarkable organic revenue growth of 17%, highlighting booming demand in specific markets.
Market Dynamics: Freight Matching and Foundry businesses are facing challenging conditions, but the impact is as expected and manageable.
Notable Quotes
”We’re quite bullish about our ability to be active on the M&A front this year."
"Net-net, we’re quite bullish about our ability to execute this part of our strategy over the course of 2024."
"We had a great start to 2024, and we’re well positioned to deliver yet another strong year of performance and growth."
"With strong, consistent cash generation and a well-positioned balance sheet, we have the capacity to deploy $4 billion or more towards high-quality acquisitions."
"Our market-leading businesses compete on customer intimacy and deliver demonstrable value to their customers, which we consistently realize in our high gross margin profile.”
