ROP - Earnings call transcript Q1 2024 | Roper Technologies, Inc.

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Operator

Good morning. The Roper Technologies Conference Call will now begin. Today's call is being recorded. [Operator Instructions]

I would now like to turn the call over to Zack Moxcey, Vice President, Investor Relations. ahead. go Please

Zack Moxcey

thank the and Technologies. for as joining Good quarter you XXXX discuss first Roper financial we morning, all results for

Joining Officer; Jason this and me Brandon Finance. Cross, and call Neil and Officer; O'Callaghan, on President Principal Vice President Hunn, of Accounting Chief morning Financial Chief Shannon Executive Conley, are Officer; Vice Vice and President Executive the President

today's financial call. we issued replay a results. our The morning, announcing includes press this Earlier information release for also release press

We to and are also slides have through available available website. which prepared call, today's accompany our the are webcast on

you to with if X. our We Now begin please turn statement. safe harbor Page

page, of SEC which call, risks as to in the will make release this uncertainties today's and in our are course filings. press our subject forward-looking statements, and During on we described

in listen information. should today's You to context of that the call

Page turn on basis. we And an to non-GAAP discuss primarily and adjusted now X. continuing operations our results Today, please will

our of this our the GAAP on assets; associated For difference and in our adjusted with acquisitions. acquisition-related associated the and Reconciliations minority found following the lastly, financial in completed amortization the results be can intangible impacts with investments; release first of of and results expenses items: transaction-related press quarter, appendix the between website. consists presentation

Page if take questions will we I'll And telephone to please hand Neil? our to now remarks, prepared Neil. X, from turn you the After call over participants. our

Neil Hunn

for and outlook joining year. our looking everyone for call. increased thanks quarter to Zack, our first to Thank and you, sharing our forward results We're the

walk in our including in by our we'll segment questions. you highlighting for we'll the more then go results start through our cover year the our through QX I'll capacity; our and I'll the initiate our to detail, QX. increased turn performance. floor for X, your will Page and open After topics we see closing notable sheet, cash review highlights Jason remarks, As our full M&A guidance balance strong discuss performance financial our and our Then finally, today. flow guidance. can

and ahead go let's started. get So

Next slide, please.

Page today's we for takeaways to turn As X, key X call.

we First, another results. quarter delivered strong

our And outlook. to positioned by total points by deployment. a we're third, We bit. Second, XX%, we by be year grew We X% double-click very capital basis to organic XX%, XX.X%. revenue by increasing expanding continue EBITDA relative and XX EBITDA with revenue to well margin full

DEPS of flow XX% by flow grew cash our range. to free year-over-year grew We XX% XX%. beating free margins $X.XX guidance with We cash

of process. and We onboarding the the the about acquisition initial made a are software also completed the Solutions, remain We for for results especially the pleased we've billion. and $X.XX business integrated early to childhood payments of education during great excited leading provider market progress very is a Procare Roper. and addition with Procare

be and XXXX year our full revenue very attractive quite in organic our that we increasing for active also reflecting We're about one our total And on have very outlook. continues improve and be our large and a we to in high-quality M&A market, pipeline and we're guidance the year. DEPS strong environment an ability opportunities. Net-net, where this active bullish momentum M&A to revenue, confidence front continued the of to continue

deliver had positioned see, strong and well a and start yet to performance we're great growth. we of can you XXXX, to year As another

over the call me let to Jason? turn Jason. Now

Jason Conley

Thanks, Neil.

our Revenue QX billion. X. TEP over Let's and was year XXXX. to excellent segments. mid-single-digit X% was XX% first growth double-digit an Organic growth growth installment network was to led across at software our dive software segment by prior right in application on solid Slide and $X.XX of

QX Strata businesses. Freight Syntellis, Acquisitions and led points of of which which a our closed bolt-on known and end headwinds Foundry despite last and Match the that February. our X% year, by large grew is in closed at of for revenue recurring organic X note, Procare, contributed Of at growth platform

over Regarding is attractive and Kinzel early ] market. Joe excited EBITDA was childhood we're million, drive education really and and the with her $XXX and [ work to continued going well, in growth Procare, translated innovation integration team to EBITDA represented year. of incremental XX.X% to which points margin was expansion. was margin prior into XX% margin EBITDA XXX XX% basis by gross points This XX.X%. of fueled basis XX of of and expansion

customer profile. which compete their in we market-leading demonstrable on Our and $X.XX. to margin $X.XX customers our above $X.XX high to our was consistently guidance Debt deliver businesses realize value of intimacy of gross

XX-month billion year cash history. free cash prior Importantly, the was $X our flow time up trailing free over XX% Roper's first and for strong flow surpassed million, at $XXX in

over and a on X-year basis. revenue CAGRs horizon, EBITDA XX% quarterly a Looking are

we flow, period's review million. Section free by an XXX broader flow which on Adjusting cash went cash current XX-month -- generated basis, a over a to this and $XX tax trailing a take period. effect cash free For period CAGR XX% lens payments for the the and impacted which related into

CAGR this normalized over The is period. XX%

we to our Slide more. about For turn still flow sheet. cash we X talk margins to balance XXXX, of or free can that, XX% expect With

ratio Procare at our end. came Following acquisition, at quarter our in X.Xx net debt-to-EBITDA

provides to fund Our revolver, utilized billion was with us billion. of drawn which to the $X.XX Procare liquidity bringing balance acquisition, $X.X the immediate

to markets sheet, issuer acquisitions. to deploy remain capital commitment towards I'll well-positioned to cash strategy. generation have investment-grade solid balance access billion And the is high-quality as and $X fundamental our reiterate or Roper's to more With consistent capacity a strong, we a investment-grade

markets, terms opportunities deal In our seeing quite acquisition in growing what pipeline of is and of attractive. we're

talk our updated guidance. risk-adjusted to opportunities over As segment always, highest allocating to returns Neil patient detail and will remain through it we in I'll and our to back disciplined for turn shareholders. With that, capital with

Neil Hunn

Thanks, Jason.

Application segment X%. start We and turn portfolio Page X, were to strong EBITDA Revenues by here by XX% let's performance our this with XX.X%. review grew experienced Software we margins organic As results. of total across revenue grew in Deltek. businesses. We'll

sector contractor and markets. architecture, Deltek within solutions, continued Our grow enterprise engineering their the construction government business to SaaS at survey software markets. private contracting, especially

launched new Dela the Deltek's digital software a be GenAI-powered applications. across which Deltek core assistant integrated Importantly, quarter, in will

a We experience the new at as Officer you. most Strategy Customer of Hughes Bob and Bob, working also to Chief and as Deltek. wealth having software brings we're the of served recently UKG. role be thrilled with welcome leadership Bob the to CEO

Mike We new into Corkery executive a also role as welcome his full-time Roper. group within

Not working you not better. your For CEO those at market-leading new has Mike leadership for is was who standing than XX building accomplished for Roper. we're tremendous Deltek's forward you more do grown leadership everything period. know, tenure, our quality you and multifold their a Mike, for you've ownership during much company. years, looking with Deltek massively entire only in nearly improved capacity the the underlying been never to culture Thank has and very thank

in base. well had continued momentum and quarter Aderant and the continues growth market SaaS another in GenAI-focused innovation. Vertafore their to solid with with incredibly great well ARR also perform performed

Turning PowerPlan. to

tax software serving strong planning of fixed asset and and solution. industries, in financial its its impressive and Our new ARR business customer heavy SaaS adoption with PowerPlan was quarter retention Great the here. grew the job

Data especially businesses. IT the go-to-market Our see healthcare and led the at businesses quarter. Innovations also We're strong both were to solid pleased execution in by Strata

a the acquisition as a this with complements ago, we higher to segment good organic growth Procare of start is mentioned off I a Finally, minutes and completed profile. which Solutions, few

growth year, expect this for of the to the revenue For mid-single-digit organic X we see segment. quarters remaining

Revenues about fact and actor Network Page Matching total in on segment X% strong organic with the pressure related strike and basis writer Please strike. XX. turn to our and recent grew XX% us continue to to Software on and experience the Foundry the in an and our X% continue grew despite to be we XX.X% year-over-year. impact businesses EBITDA margins Freight at with

DAT Freight Loadlink expected with which freight As due declined we'll affected slightly the each we market businesses, of conditions businesses. dig details it, & these Matching into the to of that challenging start our as

invest we growth. As of industry is tools. improving we're with DAT's detection sustainable fraud and levels In and typical organic for prevention the long-term for leading case, GenAI-enabled Roper,

of ecosystem across know, economic the concern transport loss. and remains fraud a cause great many As

customer Loadlink Foundry, product impressive AI/ML enhancements and which declined of innovations. quarter at Notwithstanding Turning the balance organically to this on of to X% the major the of given industry DAT, grew we recent across in Foundry, expected, this strength continues the bit That based both as Foundry strikes. in clip portfolio. segment an a innovate said, and productivity-based terms in the headwinds

increased and network business a annuities strong rates. market. care results MHA's enhanced had life annuities financial renewals, improvement and MHA had benefiting timing from market focus revenue solid software and insurance improved iPipeline, expansions in And quarter, its one of solutions. related our especially and strong GenAI-powered mark its but customer occupancy ConstructConnect in senior to Specifically, and data rigor the operational partnerships with activity, value continued network

see to on continued for extended did a we quarter, of the revenue expected single-digit will low the the growth our organic this recovery continue foundries the freight better For through although and to first based segment year. we be in year, conditions view balance that touch market than expect difficult this

Neptune of and families meters meter Verathon across executed level Revenues Now remained continued customer please on an Neptune delivered at margins of quarter. segment's an had notable growth data and particular strong another grew in XX, very the strong let's demand, exceptional results. and our XX.X%. here turn review X basis software. In management ultrasonic TEP Page for EBITDA XX% product to short, quarter their its all growth. in to organic and at see

had Verathon. Of of note, demonstrating job record market their team a number further Verathon Great wins account large by momentum.

growth end markets rf IDEAS. Inovonics, strong IPA also by led and execution We and healthcare CIVCO, had from

the balance revenue That see segment the have to high that area. expected first the single-digits to As of you the we for the we organic balance us which outlook for we to year, a expect said, this remind let be we the to turn year, for stronger in of delivered. quarter,

turn please XX. to Now Page

review results, are momentum our XXXX in on our Based confidence our strong our we year outlook, and our increased guidance Now our XXXX. QX for QX let's and guidance raising discuss outlook. full enterprise

guide we year, in about full $XX.XX and to the our to now revenues to from originally Organic from XX% $XX.XX, adjusted the XX% grow grow $XX.XX total from up in to and revenue of range up be XX%. X% previously. X% up of the DEPS initial to For expect area, $XX.XX X%, to

year continues effective tax XX% Our a in XX% to assume to full the rate range. guidance

to expect For and QX, of we be $X.XX in $X.XX. adjusted the DEPS range

open for it and to Now up Page it questions. we'll your please XX, turn

with we'll per same we takeaways started. with key As conclude custom, which the

First, results. delivered quarter another we strong

deployment. year. third, positioned we we're the capital our relative to well are increasing for very Second, And outlook full

and in For Procare in Solutions, the acquisition cash quarter, we quarter, expansion we cash free the EBITDA, confidence software of enterprise revenue, continued application our a organic flow completed the year we're is our revenue, double-digit increasing for with and momentum. and strong guidance margin and in which very conversion. and our outlook Also total segment. And flow delivered great to growth full adjusted our DEPS DEPS revenue addition our XXXX reflecting

of active. Finally, a M&A billion The deployment. to capital are we strong maintain position financial $X capacity continue for markets plus very with

We with very pipeline a approach. opportunities attractive have our we're robust pursue excited disciplined unbiased and to of that acquisition

our quite over strategy to our of ability of course We're execute bullish this part about XXXX. the

as businesses structurally oriented we operate win simple. rates environment, do our at we you businesses Roper, Once flip of we the Now underlying like portfolio based time our and flow quality. businesses. a is the arc on market-leading long vertically flywheel, strategic to everyone cash and operating our We we'd of to application-specific organic could so Roper if part on questions, by growth company business is your compound and to customer the compete what decentralized coach improve to intimacy. can how a slide, and We remind over turn a of final that

focuses business great a on Finally, finding process-driven flow our the to flywheel. we strategy cash to next run compounding that capital centralized add deployment

a of Taken together, cash over the flow our mid-teens long we time in compound area. arc

continued open With interest you the floor questions. your and we'd like to to that, your for support thank and

Operator

Your comes Julian Mitchell first Instructions] [Operator from question from Barclays.

Julian Mitchell

on just division. network Maybe first a question software the

for I you So in weeks. some the expected. like couple the think is of sounds companies of was of a outlook the on the past out as that Freight freight there playing trucking Matching down It from U.S. markets, business fairly sort

And single consolidation? of the on the in? sort on sort what match for down-low comments of the in are you're any that digits of the expecting dialing carrier we year kind freight business? where we Is Are balance of

Neil Hunn

one, the Jason Why don't second I'll take first one. say the you

Jason Conley

from our playing Julian, expected, low the Not quarter. So about down singles it's out said, -- year. as like change last it's for we much you perspective

guiding kind yes, So that's of the assumption. current

Neil Hunn

put you it as far take what been improved. for stability on you that the the year. stable comp, as to when actually last that's side, the and against outlook been carrier And months. several It for it's And It year stable. pretty the has hasn't prior the drives

Julian Mitchell

just guide. then dialing helpful. EPS second the quarter That's on in And

maybe sort basically in that? margins earnings line is the normally, on X%, think midpoint type of going second looks X% QX, sort below the or quarter, you'd weighing like it's this a or with in I any increase have sequentially sequential of for that's on there abnormal at anything something that's the guide flat the segment sales of

Jason Conley

No, the if raised is we days ago. you not for QX guidance about our quarter XX year. a back being really. I mean our And thought we good we look full what guidance -- look ago, consistent with feel

there Last that I by strong EBITDA were QX out QX is back actually strong basis. up flat year, of gate. we sequentially, go like normal for that's this were [indiscernible], and the the and us. we So 'XX, you out did Verathon to And usually think some year, then if 'XX some segment was a Verathon driven like to on led by deliveries coming move but motion

have don't we dynamic this So year. that

And then timing, usually, last little that AS steps didn't but year. dynamic have Vertafore some in bit we due earnings down to a

on about of reduced good sequential -- pay to and to feel of the of Procare progression QX as throughout of terms the basis. got QX expense And we course, second half, this in with the operating sort start accretion year growth have, an interest think I we'll So the the then revolver. we'll we down it's see from

the feel I throughout progression So about good going XXXX. pretty

Operator

Capital Markets. from comes next RBC question Dray with Deane Your

Deane Dray

to newest it's on addition the Since Procare, data points. team just some the

reminds So the quarter? cash And the was any the seasonality is what on it because about in tied to kind us contribution of flow education.

of be XXX-day seasonal. So to plans we any like And know sort that tends the it for business? first

Neil Hunn

Yes.

So if I can hit that, Deane.

about EBITDA perspective, sort margin in, was a expected. what it's was but in sort had of And stream. in flow of it expected million We the in it or mid-XXs of about as of couple came think from we more then I monthly little a over payment of more $XX So what -- revenue a a so. days we we cash terms

paying don't they've are -- and like the we big schools frontline get them. not renewals got it's a where So

of This a too, is childhood monthly stream sort paying centers education payment we comes of on on monthly a that basis. there, that are a there's that just course, basis, get

terms the throughout good really I think So work. we're off of just a integration the it's more consistent And year. to start in

upon and then and running from course, financial that. through a teams and Of normal quickly that, things engaged progress We're in integration teams And that weekly defined working super on around really up the are close. had going the And we standpoint. are we've all cyber we're points we for on well. beyond creation against in track value and growth, been around really like insurance levers milestones collaborative conversations after digging some agreed right those and

So really just feeling there. the about good momentum

Deane Dray

approximately And what? for revenue the cadence is monthly the is cadence normal

Neil Hunn

software if the at they the just little a it's So And year. month-to-month. It's -- payments, right? might modest. is you more bit consistent get it's of consistent, It's the consistent but then pretty throughout beginning obviously the think year, about

right? not Of it's it of course, they're year, a sequentially throughout year. just seasonality. So it's overall, pretty ramp to in the will going growing, up a the model, But terms throughout business of lot consistent --

Zack Moxcey

of in throughout much most cash is course this the front not QX, that. the year. is This where comparing you're this the linear to If line, flow of comes more

Deane Dray

at Badger just of how the this Neptune like for similar because this surprisingly on see fastest platform growth what's -- on -- rate? follow-up How now tech-enabled products, growth then And meter. we numbers much is great. That's the just right a is expectations

sort you how in this it of So share gains versus is line, market be much any growth looks of but that might realizing?

Neil Hunn

Yes.

of So Deane, time and you know, sure. slow long arc steady a as for over gainer share Neptune -- a for is a long

performance, it. we I of think combination data market Relative things. couple it a we in a short-term proves to out research continues and all see think of it's the

they're there unprecedented an been amount through First is -- of has working backlog.

of where our happened. there a maintenance that in inside stall of meter and certainly activity versus a But COVID people's homes their Northeast, sets was customers the stay on to customers have still lot happened has that particular, the basically -- the obligations So schedules. outside, when then yet or

sort was slower X.X So schedule We execution, that's X period. now. if there year, maintenance over of of a being years deployed X-, that's happening X-year think

So if you X. X.X will, into or maybe years demand squeezed X

much driving we're dynamic midst market that's that that's of. very the the growth So the of in some

that expect continue We to the year. in well next

of the really both has better that ultrasonic side on just just meters, field, the resi I'd thing as our the management nice solid in software state Final and customers that that we the commercial cellular Neptune technologies and new terms large data meter helps is side as connectivity. have the momentum on both have in there's say well network

Operator

from question comes Baird. next Your Vruwink Joe with

Joseph Vruwink

businesses And ask because you around planning district their a for balance the decision-making? frontline and of year, that the When cause end business benefited serve has consider public sources in that. election sector, are a how just certain But a particularly not the the does the clients for the from perhaps pause of stimulus shifting stimulus then cases? the in I in they of school revenue about like just

Neil Hunn

Yes.

of funding. So beneficiary not meaningful been ] was we -- the about. and Education, market frontline got it you're [ a not part on has depends of which our business talking ESR

feeling and that, not districts a last some thirdhand lot as by that. coming a of that beneficiary been or the about money direct of life. to so benefit school over good end, years having be is an secondhand we've having And just might There

none has been funded directly don't anything that [ funding. sell -- believe what we've we -- ESR by ] we But not of

booking. very quarter first on first frontline had -- the all, second a coverage good. very pipeline the solid quarter is Pipeline of So

And so optimistic there. we're cautiously

The that the front quite largest The other customers, SMB portion has of the we've tepid largest class, on part on been of government the market customers. on slower bookings for talked and government environment Government U.S. actually a the the of is contractors about largest the the Deltek. of strong macro with been that the more contractors, that has uncertainty market enterprise spending Federal just

talk portfolio that? anything if So But of want to other you parts it. Jason, about to happy do to you want to add

Joseph Vruwink

I pretty had the for But guess there. if maybe than is yes. revenue like software that question. X points ask, segment level targeted see typically Yes, jumped you about No, a the then And reoccurring period, are those in this mind. I this I look X really growth application can contribution in sources more they

that what Just part the drives particular business? of

Neil Hunn

the Joe, of is that's their talked Yes. coming so or XX% right? Procare online, payments. business about So we revenue

showing so line. in that's the And up recurring

Operator

question Your Davis with next Melius Scott from Research. comes

Scott Davis

we I in think commentary you tone this get was usually more side the on wise, from and think M&A I guys. positive

I And be mean a even flow is you fire was natural would robust? enough? deal say price, really you more is buy of the tapping the gotten that competition about would it of never You're deals? billion Is side on it valuations a the has kind the of But going interesting? that, Is more little to the better? $X into bit just little couple drill a more if that it helpful. a -- bit to color And number us a have markets bearish. consider down equity Is little secondary things, talk there. bit it be gotten of

Neil Hunn

we A points, there, and to back to us, if pull do it. our it I'll bring Jason I'll cover lot best cover in one don't all

optimistic at very moment. the So we're

talk think I reasons all really the you for it's about.

very and of a market market. the the number in coming are to there So large deals

the with the We are both bankers, intermediaries, have full. very pipelines relationships good sponsors all banker and the investment instrumentation

a is there of coming. lot so And stuff just

not prior. was months There that? for ] lot [ or XX is why a of So stuff essentially so

to in equity world, about all getting it's So the private money back LPs. DPI and the

return. mounted The the they is point pressure where the LP want capital to

years in deals going of we're X.X compress just so to worth years. X.X X And year,

here a my versus to of going this window is private equity net of lot competition compete And our a here the the asset so a of assets belief, a belief period of -- buyer that be to for we seller because time. Relative of class activity. that this net point, with there's a time for of going is to be

indication in mean a less. is it less a for reasonable come, very mean So valuation. periods, Procare I seen was competition look I is if the that what's which for but without than you leads at an very price. Procare is at high It's business to quality high then not the very prior to growth, we've competition, valuation,

of for view number our of this a the volume I is I deals any competition. think really that going on the of deals to almost -- it's We'll combination of also maybe mean happen. sure

our But the flow that's of of at we're billion investment To competition point this and compounding using our our $X about grade, always concept your fueling This cash being the moment. leverage could that's change sort being enough, about any approach. just in optimism. -- enterprise unbiased what's and disciplined the of

to that going on deal deal-by-deal a every so true basis. stay And to and look we're at

Operator

Your next with Jefferies. Brent Thill comes from question

Unknown Analyst

is of there what I prior to ask increased they're This was the around around and wanted on AI. I think, doing for David companies Brent. commentary, some versus quarter around

And charging on any would an helpful. growth AI for that some in could any would color AI update of you of give are with on be be if strategy? term, if the broader helpful the guys your the possibly long there just AI organic could you assets products, how Just help us these of

Neil Hunn

Yes. update We'll on an give certainly you that.

at continue to grind we this. So away

have call done have our productivity-based just of a a group large engaging topic. lunch of today leaders with the around XX with applications et customer customer HR, our at finance, on live admin, for both R&D, regulatory, support we So on work go-to-market, businesses, of internal cetera, a that all lot

early wins like us productivity, content in things generation, of on like assistance, code to marketing We're starting are most some that. see

So cautiously optimistic about productivity enhancements.

race and products incremental your you these about to use be This and As our value tools the it relates market slow directly customers. to steady create for around how monetization. more a is question going to do and

That problems specific to leads need intimacy. Again, we on very know compete you that know us to very and questions intimacy specific be addressed.

to new quarters a by Foundry ago, be technology account, a I set Companies that the may X. our few Deltek, today using market DAT, GenAI, have the and that. count We products do be there have think that Two Aderant, was able ConstructConnect in others. to

And so we the that like momentum in regard.

terms of early In monetization, days. it's still

more Our our at like moment all higher monetizing creating points toolset in by bookings by is for the GenAI products, which existing those through value adding to having some products, in with in and unique belief is cases, -- least, in tools. the acceleration because value products capability driving the the almost that's we're the that investments -- ways and price cases, and that of then achieved

that's to if say, add, I it. want to up, you where leave Happy follow Jason. So

Operator

comes Your Securities. question next Tillman Truist from with Terry

Terrell Tillman

buying you had valuations. the follow-up see here just of even maybe first revenue where one continue here, that? calculated engines where growth most recent then Procare assets, all on the just most see opportunity a go-forward and high-quality on And then question it addition to of Maybe had good Solutions time some quick because maybe see growth a untapped where rate the basis, little you've Jason. I a compounding you but of for is bit kind the you as that? And profiles, I'm for do portfolio, better think to you the update curious, the growth I an

Neil Hunn

Yes.

a about growing about organic be north believe, when relative market we to growth So mid-teens going of little a deal, we how this is announced we Procare market Procare is share. on business. or the XX% X.Xx is that. talked The

the and growth, grow has market. and big that to And so share market position broker with that win leadership right above

go-forward of on your team are question, exploring, of type terms couple a Tuck and inside network. we. couple that of in a the think at team Procare, bolt-on her there's sell modest be Procare, Janet leadership areas basis. But products Procare of I activity the that to bolt-on are at the a bolt-ons going into In is Terry, with

Terrell Tillman

it. Got

just And Okay. then quick follow-up. a

good Jason, driver it like I that you've biggest about swing if a so and it's had organic maybe X% raising growth factor What set think in is tightening just just of firmly think and is was see. the the bunch effectively that's what to to X% X%, you biggest organic? now to the little things. or

Jason Conley

obviously, Yes. a I QX. we really had strong mean,

carrying small was TEP and So various that part just beats of of at that through had then across some software. a lot and we is that

think what we in of then maintain we're be So just prior confidence saw sort for QX I it's able to mainly out going the and guidance that quarters. to the our

Operator

Your comes TD Giordano Cowen. with from question next Joe

Joseph Giordano

know immediately, are you the And the see curious to that that like replaced like data implications are white the driven? you they're of Is like country, you starting like I on jobs. erosion term, like it but but basis? won't -- that like that at in jobs generally the jobs part-time what are been software see more the implications outlook on collar an blue-collar jobs Just look your an trend? I'm just and good, by businesses pretty headcount some a it's of type curious of on longer is

Neil Hunn

reason the pricing. would perhaps some, seat-based we're said, is -- I where there's is very but to transitioning little of but some, very say revenue and our I like that a no, exists, -- different So metric. There's

get any operating our GenAI benefit or of productive, strategy But to in knowledge our something of or of as not that, certainly been it's that. by reduce. been by workers more brought any want penalized more up we So that's not companies by the disruption get sort you with be

Joseph Giordano

Interesting.

Okay. do deploying your is discussion the these Has competition your tools here. been products on Or has you're And then up follow for like the feel doing that like to launching you and differentiation a in table AI the stakes just terms deployments of been businesses? like same? now? Or

Neil Hunn

been it's very far, So differential.

their the are for and competitors across I these small very in markets, operate a bit, I'm we tend our expectation think sure. the we of market. largest in we that -- double-click though, businesses, on player response we which is have small will is the just are all XX the

scale to invest more around in be product able do these and more advantage get more that have we do and tools markets research go development, to development, do to more there. -- So these to small market

why And advantage that long-term the so we businesses portfolio. of that a the we and do select to have is be we part

compete we intimacy is the we The that's obviously all thing verticals AI, other question. half that Generative And and on have, when the and the have content only the with knowledge you data. these

The other half problem. the

half questions we we we are though, what so The -- to so intimacy the on of know other problem, answer. actually is compete

and it's toolkit So in the we now solve about just problems. have how AI, the Generative the content, another to the the question data tool those and

So competitive our long-term we like positions.

Joseph Giordano

in if sneak that, solutions once area flex could these area that. a little runs on I Like that acquire be tend expensive own, on like on a this can an know is -- generally, this corporate where Just the its a kind is but follow-up bit to deploy. to business an I of just you because

specifically like flow to So we need that corporate the to a could is dynamics that area natural of are free where allocate kind this this be Roper of cash outside capital firm? decision businesses of an like the all making specific

Neil Hunn

is and stuff. developed, studies these have ROI what of couple of LLM then costs. but application all case tools ago right? the of this language large about a expensive are part these did of Jason research and And that there's operational and models there substantially teach-in doing, the a to and months the we're the free, than they so development the not less be are So

Generative down this not So opportunities. been study we've meaningful any of But happen you the front. an a to to the that's do Jason, because work in different I'm challenged just one-size-fits-all not ROI start Roper moment, the going seen case because anything solution you of to -- will as sure XX AI that way it applications. to would we're on not try not curve work at far, we're add. want

Jason Conley

large the Yes. we with with do mean No, some our and have that's service scale right. I cloud benefits agreements providers. of

a so And some has front-centered to at that's lot then very that that's can capital mind beneficial really proposition. not compelling what towards a companies been better. we're that, just value that, in experimentation out. just of So today. company been going terms cost. hasn't we're We're But for do share a of allocating always seeing we get but collectively The entertain allocating to like low

Operator

question Goldman next Ritchie comes with Your Joe Sachs. from

Joseph Ritchie

rolling So just were certain go to kind a there great your that examples offerings you whole, comments, as your think additional businesses. are platforms? if new at out look there how And the the be curious in of portfolio. new want SaaS-based of much how some I'm any a from that you highlight, terms room you far are how across to along prepared Neil, here? of helping like you is as would And in referenced portfolio

Neil Hunn

are So look we I how that like? on you're along essentially that just want question what's our is far asking to make we it answering journey? the understand sure or SaaS And

Joseph Ritchie

And the if exactly think just that's love about portfolio examples there have right. some to Yes, across you opportunity, are examples. hear I'd you're -- of like where you additional those

Neil Hunn

part. take part, I'll you Jason on second So don't the the why first take

Jason Conley

over of little revenue like the base today, probably a we're years, maintenance in the mid- level, and maybe macro converted we've the last the go maintenance $XXX to you area. At million of Yes. in X if high back single-digit maintenance

to when lot So at revenue we maintenance a still convert that left, we X.Xx SaaS. and to have we X go of room

And at kind so today. of we're that's where

a reluctant are one to move the and all specific there's they a then had -- once Neil cloud X businesses win. Aderant about industry when transitioning. right firms at And all years, a migration was talk to X biggest which or a I'd is happened that say was of There's the of that that's last sudden, -- an the co that over few businesses. the probably can handful

about of Neil, in terms to you want in cloud migration. do other. in of thick right they're that But things the talk the some So

Neil Hunn

is As this we both Jason and their of with said, point, would examples on sector, their businesses. product Deltek. start is I is government handful is private mean, a it of Vantage on-premise give in concentrated the million core $XXX engineering, Point, which product. our which contracting cost architecture It's maintenance The

Moderate might achieved You instance, ready for Deltek status. on seen, this cost have FedRAMP quarter, point,

net is of is and for security. It's sole the in almost private meaningful on Aderant, all part about puts deployed cloud, cloud-enabled Vantage cloud, cost one, Deltek's So requirement Point, government the the is cloud the book a there sector PowerPlan new for point for which a Jason are is all in talked their in talked a percent Aderant PowerPlan. core #X handful enabled. would say and and has being about XX-plus of SaaS the of bookings application applications. of today I today. checkpoint

in definitively business. product and set through So rolling we're SaaS book this building that that long-term into

Joseph Ritchie

leave That's helpful. there. super just it I'll Got it.

Operator

Brad Wolfe from Your with Hewitt next Research. comes question

Bradley Hewitt

focus kind strength new talked in announced business I you So saw about you the pipeline for long-term strategy. the that CFO a with driving on the of a quarter. growth that

what to update Just normalized growth kind going you as the of profile and perhaps biggest of us that in wondering forward. opportunities business could kind accelerate business growth that you see if the of on

Neil Hunn

Yes, the Jason take I'll let talk outlook. I'll part. the first growth about

the to we McDonald. not just He really new that the CFO, -- in referenced, term president to brings capability term, the it's competitive building a orientation, -- leader Pat have is able the learning new as leadership So short new long be I hired as like mean, iPipeline. there, that orientation, to you take mindset, the

is for is this It's His The predecessor for great a years long-term business sure. gains. a super been market is that business setting job market focus. the The leader, sort did poised up. of effects. direction environment, a our [indiscernible], network of market strong, couple company Roper really competitive -- tilting he's Retention has share love for one, good

that momentum the then, I So growth we're in what will you like do I take And question. the business. poised really and let to Jason,

Jason Conley

range added that's the as plus tracking. just in down it the and Pat. we're we Adam him was think a Boone area, playing we I of maybe back where road. to a higher tilt thought in would it little mean along it's joining XXXX, And it's But sort high out it and I the with acquired ago, when excited about single-digit Yes. month it's XXXX team

about excited we're the our pipeline. for So process

Bradley Hewitt

like in than expected. network it growth And was better QX in then Great. looks Okay. maybe a few points

guidance revenue the Your absolute of sequentially an implies basis. of flattish year the for rest kind on

would most see the segment year. sequential in would kind modest I of throughout that businesses the growth assume of

of trying if that's are to kind if offsets any understand maybe DAT. potential just there that So

kind on thoughts of relative sequentials to QX any levels Just network. in

Jason Conley

sure. Yes,

they're quarter, about talked still year. -- had bit a and to a this as to think grow we little had But So going really renegotiations. strong MHA we QX a they they're contract continue strong was especially

So be DAT of down Loadlink, we this they'll little then continue a bit And got in bump quarter. in organic a to year. & the first growth

than lower maybe so touch And a QX.

the what's low rest sort single of digits throughout the driving that's year. the So of

Operator

next Your JPMorgan. Baumann with from question comes Patrick

Patrick Baumann

Lot of ground been covered.

of Just is this cleanups for Network margin XX% really expansion driving here. that? if you a Software us what's Could remind seen and move quarters? the Sticking a of up could potentially couple quarters further good XX%, with now. couple segment, it's sustainable in And coming

Neil Hunn

Yes.

the on DAT just going year, they some we costs the of and was business. last So fixed touched taking getting of the of this ahead where saw out market

sort XX% going get think that the to quarters going to And think it's margins so We year. expand range. We're that of it's we're just of in further. don't realizing -- through X the the XX%, this I -- in first

to that throughout expect the continue year. We

Patrick Baumann

to flow, on it from know And to quarter. expectations? the on that also you second give Okay. XQ Got us quarter you guide? free color I lumpy XQ. lastly, difference and Any it. could typically then Any XQ gave XQ second quarter-to-quarter. growth just for organic And then between cash

to kind of you color could the on first if wondering So any that quarter. give relative

Neil Hunn

quarter same second think organic mean for they the I expectations are year. I growth the in the Yes. as are the

big real federal always cash that no payments. quarter then on there. the swings it's flow the And second to tax we make So quarter,

of So the year. always lowest it's the

out really that's I dynamic the So only would point there.

grow, course. to always low point, years, over If you our look that's prior but of still expect

Operator

from Blanton Management. Harbor with Clear question next comes Your Asset Alexander

Alexander Blanton

you're growth or had first the year, that of quarter. organic But noticed for the guiding correct? in X% I you to forecasting X%

So some in factoring the are forecast? U.S. that you weakness economic in in

Jason Conley

sort No. of all better the our the in segment our that compare normalize quarter, had out, plays year. over Alex, we Neptune first had just the I in the of the mean, out comps I in think ramp TEP it's just products last balance of it we and year, and a sort segment

that. no It's that. just really more complicated than it's So

into And so things in that's indicated in had going organic to the year, of and high that's our assumptions. unless the what was QX was when that's we the of we kind why -- -- be terms change that QX mark came

Neil Hunn

weak our muted, not assumption, a assume whatnot embedded there from way said, half did assumed it's conditions in it's that business. not of we've And that that I there original is but part our impacts but Jason all new guidance. would just add, the Alex, definitely to freight we is is what that That but and through, macroeconomic that, back the change,

Alexander Blanton

missed And part the of business? which I that.

Neil Hunn

inside the network, part, transportation of Matching The & the DAT Loadlink Freight business.

Operator

question-and-answer This concludes our session.

back Moxcey remarks. return for closing any We will now to Zack

Zack Moxcey

look Thank you, We forward our speaking everyone, for next during earnings joining with you us to today. call.

Operator

you The today's conference has concluded. for Thank now presentation. attending

You disconnect. may now

Roper (ROP) 26 Apr 242024 Q1 Earnings call transcript