Roper Technologies Inc (ROP) 2023 Q2 法說會逐字稿

完整原文

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  • Operator

    Operator

  • Good morning. The Roper Technologies Conference Call will now begin. Today's call is being recorded. (Operator Instructions) And now I'd like to turn the conference over to Zack Moxcey, Vice President, Investor Relations. Please go ahead, sir.

    早上好。 Roper Technologies 電話會議現在開始。今天的通話正在錄音。 (操作員說明)現在我想將會議交給投資者關係副總裁 Zack Moxcey。請繼續,先生。

  • Zack Moxcey - VP of IR

    Zack Moxcey - VP of IR

  • Good morning, and thank you all for joining us as we discuss the second quarter financial results for Roper Technologies. Joining me on the call this morning are Neil Hunn, President and Chief Executive Officer; Jason Conley, Executive Vice President and Chief Financial Officer; Brandon Cross, Vice President and Principal Accounting Officer; and Shannon O'Callaghan, Vice President of Finance.

    早上好,感謝大家加入我們,我們將討論羅博科技第二季度的財務業績。今天早上與我一起參加電話會議的還有總裁兼首席執行官 Neil Hunn; Jason Conley,執行副總裁兼首席財務官; Brandon Cross,副總裁兼首席會計官;香農·奧卡拉漢 (Shannon O'Callaghan),財務副總裁。

  • Earlier this morning, we issued a press release announcing our financial results. The press release also includes replay information for today's call. We have prepared slides to accompany today's call, which are available through the webcast and are also available on our website.

    今天早上早些時候,我們發布了一份新聞稿,宣布了我們的財務業績。新聞稿還包括今天電話會議的重播信息。我們準備了伴隨今天電話會議的幻燈片,這些幻燈片可以通過網絡廣播獲取,也可以在我們的網站上獲取。

  • Now if you please turn to Page 2. We begin with our safe harbor statement. During the course of today's call, we will make forward-looking statements, which are subject to risks and uncertainties as described on this page, in our press release and in our SEC filings. You should listen to today's call in the context of that information. And now please turn to Page 3.

    現在請翻到第 2 頁。我們從安全港聲明開始。在今天的電話會議期間,我們將做出前瞻性聲明,這些聲明受到本頁、我們的新聞稿和 SEC 文件中所述的風險和不確定性的影響。您應該在該信息的背景下收聽今天的電話會議。現在請翻到第 3 頁。

  • Today, we will discuss our results primarily on an adjusted non-GAAP and continuing operations basis. For the second quarter, the difference between our GAAP results and adjusted results consists of the following items: amortization of acquisition-related intangible assets and the financial impacts associated with our minority investment in Indicor. Reconciliations can be found in our press release and in the appendix of this presentation on our website.

    今天,我們將主要在調整後的非公認會計原則和持續經營的基礎上討論我們的業績。第二季度,我們的 GAAP 業績與調整後業績之間的差異包括以下項目:與收購相關的無形資產攤銷以及與 Indicor 少數股權投資相關的財務影響。調節表可以在我們的新聞稿和我們網站上的本演示文稿的附錄中找到。

  • And now if you please turn to Page 4, I will hand the call over to Neil. After our prepared remarks, we will take questions from our telephone participants. Neil?

    現在請翻到第 4 頁,我會將電話轉交給尼爾。在我們準備好的發言之後,我們將回答電話參與者的問題。尼爾?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Thanks, Zack, and thanks to everyone for joining our call. We're looking forward to sharing our second quarter results with you this morning, which like Q1 were quite good.

    謝謝扎克,也感謝大家加入我們的電話會議。我們期待今天早上與您分享我們的第二季度業績,就像第一季度一樣非常好。

  • As we turn to Page 4, let's look at today's agenda. I'll start with our second quarter enterprise highlights and then ask Jason to share our financial results. After that, we'll turn to our segment-specific discussion and wrap up outlining our increased 2023 enterprise guidance. So let's go ahead and get started. Next slide, please.

    當我們翻到第四頁時,讓我們看一下今天的議程。我將從第二季度的企業亮點開始,然後請 Jason 分享我們的財務業績。之後,我們將轉向特定細分市場的討論,並總結概述我們增加的 2023 年企業指導。那麼讓我們開始吧。請下一張幻燈片。

  • As we turn to Page 5, the 4 main takeaways for today's call are, first; we continue to perform extremely well and had a very strong second quarter, another demonstration of the quality of our portfolio of businesses; second, we're increasing our full year guidance, both in terms of total and organic revenue growth and adjusted debt; third, generative AI, we're very excited by the promise of this technology and outline reasons why today; and fourth, we remain very well positioned for disciplined capital deployment.

    當我們翻到第 5 頁時,今天電話會議的 4 個主要要點是:首先;我們繼續表現出色,第二季度表現非常強勁,這再次證明了我們業務組合的質量;其次,我們正在提高全年指導,包括總收入和有機收入增長以及調整後的債務;第三,生成式人工智能,我們對這項技術的前景感到非常興奮,並概述了今天的原因;第四,我們在嚴格的資本部署方面仍然處於有利地位。

  • As it relates to the first takeaway, a strong start to the year and a solid second quarter, we saw total revenue grow 17% and organic revenue grew 9%. Consistent with our long-standing strategy, we continue to not only scale our enterprise, but also simultaneously improve its underlying quality and recurring revenue base. Importantly, we had very strong cash flow performance with free cash flow growing 17% in the quarter.

    由於這與第一個收穫、今年的強勁開局和第二季度的強勁表現有關,我們看到總收入增長了 17%,有機收入增長了 9%。根據我們的長期戰略,我們不僅繼續擴大企業規模,而且同時提高其基本質量和經常性收入基礎。重要的是,我們的現金流表現非常強勁,本季度自由現金流增長了 17%。

  • Our results this quarter are another proof point that our higher quality, less cyclical portfolio was purpose-built to consistently perform at a very high level. Given the strong second quarter, we're increasing our full year total revenue growth to be around 13%, increasing our organic revenue growth to be around 7% and increasing our full year debt guidance to be in the range of $16.36 to $16.50 or up $0.23 at the midpoint versus our previous guidance of $16.10 to $16.30.

    我們本季度的業績再次證明,我們的更高質量、更少週期性的投資組合是專門為始終保持非常高的水平而構建的。鑑於第二季度的強勁表現,我們將把全年總收入增長提高到 13% 左右,將有機收入增長提高到 7% 左右,並將全年債務指導提高到 16.36 美元到 16.50 美元之間,或者比我們之前指導的 16.10 美元到 16.30 美元增加 0.23 美元。

  • Third, relative to GenAI, we feel we're structurally advantaged and excited by this technology as our vertical and application-specific businesses will use our specialized market positions and knowledge to provide context for these enabling technologies, both to create customer value and internal productivity gains, more on this during today's call.

    第三,相對於 GenAI,我們認為這項技術在結構上具有優勢並令人興奮,因為我們的垂直和特定應用業務將利用我們專業的市場地位和知識為這些支持技術提供背景,既創造客戶價值又提高內部生產力,在今天的電話會議中將詳細介紹這一點。

  • And finally, we continue to be well positioned relevant to capital deployment. We remain active in the market as we evaluate an actively diligence many high-quality opportunities. Jason, I'll turn the call over to you so you can walk through our second quarter results and our very strong financial position. Jason?

    最後,我們在資本部署方面繼續處於有利地位。我們在市場上保持活躍,積極勤勉地評估許多優質機會。傑森,我會將電話轉給您,以便您了解我們第二季度的業績和我們非常強勁的財務狀況。傑森?

  • Jason P. Conley - Executive VP & CFO

    Jason P. Conley - Executive VP & CFO

  • Thanks, Neil, and I hope everyone is doing well this morning. Turning to Slide 6. The second quarter was another good post in 2023. Revenue came in at $1.53 billion, which was up 17% over prior year. Organic growth was 9% which was led by 8% software recurring revenue growth across the enterprise and outsized growth 19% in our tech-enabled products segment.

    謝謝尼爾,我希望每個人今天早上都一切順利。轉向幻燈片 6。第二季度是 2023 年的又一個好消息。收入為 15.3 億美元,比上年增長 17%。有機增長為 9%,其中整個企業軟件經常性收入增長 8%,技術支持產品部門大幅增長 19%。

  • EBITDA increased 20% to $617 million with EBITDA operating leverage of 46%. Notably, margin expanded across all 3 segments in the quarter. Debts of $4.12 was $0.12 above the high end of our guidance range and 20% above prior year. Debt growth was in line with EBITDA growth given the offsetting impact of a higher tax rate and lower net interest expense.

    EBITDA 增長 20%,達到 6.17 億美元,EBITDA 運營槓桿率為 46%。值得注意的是,本季度所有三個細分市場的利潤率均有所擴大。債務為 4.12 美元,比我們指導範圍的上限高出 0.12 美元,比上一年高出 20%。考慮到較高稅率和較低淨利息支出的抵消影響,債務增長與 EBITDA 增長一致。

  • Moving to free cash flow. As a reminder, the second quarter is always our lowest conversion quarter in the year as we make 2 federal tax payments. We delivered $295 million of free cash flow in the quarter, which was up 17% over prior year. As I've previously mentioned, Frontline's cash flow is seasonally weighted to Q3 and Q4, especially in Q3, and this is in line with our K-12 customers' annual renewals. So we expect a meaningful increase to cash flow in the second half.

    轉向自由現金流。提醒一下,第二季度始終是我們一年中轉換率最低的季度,因為我們繳納了兩次聯邦稅。本季度我們交付了 2.95 億美元的自由現金流,比上年增長 17%。正如我之前提到的,Frontline 的現金流按季度加權到第三季度和第四季度,尤其是第三季度,這與我們的 K-12 客戶的年度續訂情況一致。因此,我們預計下半年現金流將大幅增加。

  • Taking a broader view of cash flow on the slide, recall that we acquired Vertafore in 2020 and had a onetime cash tax benefit of $120 million, of which about $60 million benefited the second quarter of 2021. We, therefore, had very strong multiyear cash flow performance when normalizing for this 2021 tax item. For the year, we are confident that free cash flow will be greater than 30% of revenue.

    從更廣泛的角度來看幻燈片上的現金流,回想一下,我們在 2020 年收購了 Vertafore,並獲得了 1.2 億美元的一次性現金稅收優惠,其中約 6000 萬美元受益於 2021 年第二季度。因此,在對 2021 年這一稅收項目進行正常化時,我們擁有非常強勁的多年現金流表現。今年,我們有信心自由現金流將超過收入的30%。

  • Turning to our balance sheet on Slide 7. Our net leverage sits at 2.2x at the end of the quarter with about $6.7 billion of debt and just under $1.5 billion of cash against our TTM EBITDA of $2.35 billion. Also, our $3.5 billion revolver remains fully undrawn.

    轉向幻燈片 7 上的資產負債表。截至本季度末,我們的淨槓桿率為 2.2 倍,債務約為 67 億美元,現金略低於 15 億美元,而 TTM EBITDA 為 23.5 億美元。此外,我們的 35 億美元左輪手槍仍然完全未動用。

  • To summarize, we have significant acquisition capacity and remain quite active in many bespoke processes. To that end, in Q3, we expect to close on Replicon, which is a bolt-on acquisition for our Deltek business, with a purchase price of $450 million or about $370 million net of a long-term cash tax benefit. Neil will discuss the details around this exciting addition to the Deltek platform and the segment discussion.

    總而言之,我們擁有強大的採購能力,並且在許多定制流程中保持相當活躍。為此,我們預計在第三季度完成對 Replicon 的收購,這是對我們 Deltek 業務的補充收購,收購價格為 4.5 億美元,扣除長期現金稅收優惠後約為 3.7 億美元。 Neil 將討論 Deltek 平台這一激動人心的新增功能的細節以及細分市場的討論。

  • So with that, I'll turn it back over to Neil to talk about our segment performance and outlook. Neil?

    因此,我將把它轉回尼爾,談談我們的部門業績和前景。尼爾?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Thanks, Jason. Let's turn to Page 9 and walk through our Q2 highlights for our Application Software segment. Revenues here were $770 million, up 6% on an organic basis, and EBITDA margins increased to 43.7% in the quarter. In this segment, we continue to see consistently strong performance across the entire group of companies. We'll start with Deltek. Deltek was once again solid across both our government contracting and private sector businesses. Importantly, Deltek continues to see momentum build with our SaaS offerings and retention rates remain at historically high levels.

    謝謝,傑森。讓我們翻到第 9 頁,瀏覽一下我們的應用軟件部門的第二季度亮點。本季度收入為 7.7 億美元,有機增長 6%,EBITDA 利潤率增至 43.7%。在這一領域,我們繼續看到整個集團公司持續強勁的業績。我們將從 Deltek 開始。 Deltek 在我們的政府承包和私營部門業務方面再次表現穩健。重要的是,Deltek 的 SaaS 產品繼續保持強勁勢頭,保留率保持在歷史高位。

  • Also in the quarter, and as Jason mentioned earlier, we announced the acquisition of Replicon for Deltek, Roper's largest bolt-on today. Replicon is a market-leading timekeeping and workforce management SaaS solution focused on professional services firms and is highly complementary to Deltek's strategy. We expect Replicon to contribute north of $70 million of revenue and $24 million of EBITDA next year, and we expect the deal to close during the third quarter.

    同樣在本季度,正如 Jason 之前提到的,我們宣布收購 Deltek 的 Replicon,這是 Roper 今天最大的補充。 Replicon 是市場領先的計時和勞動力管理 SaaS 解決方案,專注於專業服務公司,與 Deltek 的戰略高度互補。我們預計 Replicon 明年將貢獻超過 7000 萬美元的收入和 2400 萬美元的 EBITDA,並且我們預計該交易將在第三季度完成。

  • Finally, as it relates to Deltek, we wanted to brag on them for a moment. During the quarter, the Washington Post awarded Deltek the #4 top workplace in the D.C. Metro area for large companies. As you know, we have a closely held belief that talent and culture can create long-term competitive advantage, and this is certainly the case for Deltek.

    最後,就 Deltek 而言,我們想誇誇一下他們。本季度,《華盛頓郵報》將 Deltek 評為華盛頓特區大公司第四大最佳工作場所。如您所知,我們堅信人才和文化可以創造長期競爭優勢,對於 Deltek 來說也是如此。

  • During Roper's ownership Deltek, the company has increased its organic growth rate, retention levels, recurring revenue and margin structure and a big contributor to that success is the structural talent advantage that Deltek continues to build. Congrats to Mike, and congrats to your entire team.

    在 Roper 擁有 Deltek 期間,該公司提高了有機增長率、保留水平、經常性收入和利潤結構,而這一成功的一個重要貢獻者是 Deltek 不斷建立的結構性人才優勢。祝賀邁克,也祝賀你的整個團隊。

  • Aderant, our software business focused on the needs of law firms, continues to be excellent. In the quarter, Aderant sold record bookings and continued success in the adoption and cross-sell of their SaaS solutions. Also and importantly, during the quarter, Aderant launched their generative AI enabler, MADDI. Today, MADDI is enabling 2 solutions outside council guidelines, management and time entry with plans to extend this to AR cash-receipt matching and docketing over the coming months.

    我們專注於律師事務所需求的軟件業務 Aderant 繼續表現出色。本季度,Aderant 銷售了創紀錄的預訂量,並在 SaaS 解決方案的採用和交叉銷售方面繼續取得成功。同樣重要的是,在本季度,Aderant 推出了他們的生成式人工智能推動器 MADDI。今天,MADDI 正在啟用理事會指南、管理和時間輸入之外的 2 種解決方案,併計劃在未來幾個月內將其擴展到 AR 現金收據匹配和記賬。

  • Over time, MADDI will be integrated widely across Aderant's product platforms. Generative AI for the legal space has tremendous potential. One such example in the market today is Onyx. Onyx powered by MADDI solves a massive challenge that all law firms face, namely how to navigate outside counsel guidelines or the biller requirements that clients impose on their law firms.

    隨著時間的推移,MADDI 將廣泛集成到 Aderant 的產品平台中。法律領域的生成式人工智能具有巨大的潛力。當今市場上的一個這樣的例子是 Onyx。由 MADDI 提供支持的 Onyx 解決了所有律師事務所面臨的巨大挑戰,即如何遵循外部顧問指南或客戶對其律師事務所提出的開單要求。

  • It's fairly common for a large law firm to have to navigate hundreds of thousands of bespoke client billing requirements. Today, Onyx uses gender of AI to extract contractual terms and convert them into business tools used in the time entry and billing processes, a true game changer.

    對於大型律師事務所來說,必須處理數十萬個定制客戶計費要求是相當常見的。如今,Onyx 使用人工智能的性別來提取合同條款,並將其轉換為時間輸入和計費流程中使用的業務工具,這是一個真正的遊戲規則改變者。

  • More broadly across Roper, we're excited about the potential of Generative AI and large language models. We believe, given our deeply verticalized and application-specific business model, that our businesses are structurally advantaged given that all AI, computational and generative, need context, specifically data and workflows in which to train or target the technology. Internally, we're working closely with our businesses on the productivity and product-enabled opportunities associated with GenAI. Certainly, much more to come on this.

    更廣泛地說,在 Roper 中,我們對生成式人工智能和大型語言模型的潛力感到興奮。我們相信,鑑於我們深度垂直化和特定於應用程序的業務模式,我們的業務在結構上具有優勢,因為所有人工智能(計算型和生成型)都需要上下文,特別是用於訓練或定位技術的數據和工作流程。在內部,我們正在與我們的企業密切合作,以提高與 GenAI 相關的生產力和產品支持的機會。當然,在這方面還有更多的事情要做。

  • Now back to the segment performance in Vertafore, our software business that tech enables property and casualty insurance agencies. Vertafore continues to be a great asset for us with solid performance across our core P&C business and the recent MGA solutions bolt-on. Our healthcare IT businesses also performed very well in the quarter with growth in each of our healthcare IT franchises; Clinisys, Data Innovations and Strata.

    現在回到 Vertafore 的細分市場表現,我們的軟件業務通過技術為財產和意外傷害保險機構提供支持。 Vertafore 仍然是我們的寶貴資產,在我們的核心財產與意外傷害業務和最近的 MGA 解決方案中都表現出色。我們的醫療保健 IT 業務在本季度也表現出色,每個醫療保健 IT 特許經營業務都取得了增長; Clinisys、數據創新和 Strata。

  • Frontline also continues to deliver for us. Frontline's mission is to empower the front line of education. As many of you know, the hiring of teachers and administrative staff is particularly challenging, and Frontline software solutions better equip K-12 school districts to navigate these challenges. Because of this, Frontline solutions are mission-critical and of high importance to their school district customers. As such, Frontline's net retention is consistently strong.

    Frontline 也繼續為我們提供服務。 Frontline 的使命是賦能教育第一線。眾所周知,教師和行政人員的招聘尤其具有挑戰性,而 Frontline 軟件解決方案可以更好地幫助 K-12 學區應對這些挑戰。因此,Frontline 解決方案對於其學區客戶來說是關鍵任務且非常重要。因此,Frontline 的淨留存率始終強勁。

  • Looking to the second half of the year, we expect to see organic revenue growth to be in the mid-single-digit area for the segment. Overall, very strong results and outlook for this segment.

    展望今年下半年,我們預計該領域的有機收入增長將達到中個位數。總體而言,該細分市場的業績和前景非常強勁。

  • Turning to Page 10. Revenues in the quarter for our Network Software segment were $358 million, up 5% on an organic basis, and EBITDA margins were strong at 54.2%. As with our Application Software segment, growth and performance was solid across the segment.

    翻到第 10 頁。本季度網絡軟件部門的收入為 3.58 億美元,有機增長 5%,EBITDA 利潤率高達 54.2%。與我們的應用軟件部門一樣,整個部門的增長和業績都很穩健。

  • Relative to business-specific comments, we'll start with U.S. and Canadian freight matching businesses, DAT and Loadlink, both of which grew in the quarter despite continued challenges across the broader freight and logistics markets. I'll remind you that our businesses are critical to the operation and execution of the North American spot freight market.

    相對於特定業務的評論,我們將從美國和加拿大的貨運匹配業務 DAT 和 Loadlink 開始,儘管更廣泛的貨運和物流市場持續面臨挑戰,但這兩家公司均在本季度實現增長。我要提醒您的是,我們的業務對於北美現貨貨運市場的運營和執行至關重要。

  • In addition and importantly, the spot market is a long-term secular beneficiary in terms of the volume of future freight shipments. Throughout and across the freight and economic cycle, DAT and Loadlink continue to innovate and launch new products and offerings to help drive enhanced customer value and share of wallet.

    此外,重要的是,就未來貨運量而言,現貨市場是長期受益者。在整個貨運和經濟周期中,DAT 和 Loadlink 不斷創新並推出新產品和服務,以幫助提高客戶價值和錢包份額。

  • As we speak, DAT is launching a Generative AI-enabled solution among other initiatives targeted to combat trade industry fraud. This is in addition to their existing set of Computational AI and data science-driven solutions like DATIQ, which they deployed at scale over the last 3 or 4 years.

    正如我們所說,DAT 正在推出基於生成人工智能的解決方案以及旨在打擊貿易行業欺詐的其他舉措。這是對他們現有的計算人工智能和數據科學驅動的解決方案(例如 DATIQ)的補充,他們在過去 3 或 4 年中大規模部署了這些解決方案。

  • By pipeline, our network software business that tech enables the distribution channel for life insurance and annuities, had very nice ARR gains in the quarter, driven by strong retention and customer expansion activity. Foundry continued its string of strong performance and had terrific growth for their flagship product, Nuke, which enabled continued double-digit recurring revenue growth. As we mentioned last quarter, Foundry commenced their subscription pricing transition for Nuke, and in the first half of the year had north of 60% of their Nuke units sold under their new model ahead of their transition plan.

    從渠道來看,我們的網絡軟件業務(技術支持人壽保險和年金的分銷渠道)在強勁的保留和客戶擴展活動的推動下,本季度的 ARR 增長非常可觀。 Foundry 繼續保持一連串的強勁業績,其旗艦產品 Nuke 實現了驚人的增長,實現了持續兩位數的經常性收入增長。正如我們上季度提到的,Foundry 開始了 Nuke 的訂閱定價過渡,今年上半年,超過 60% 的 Nuke 設備在過渡計劃之前就以新模式售出了。

  • Finally, our alternate site healthcare businesses, led by SoftWriters and SHP were strong in the quarter. Execution was solid, and the business has benefited by an improving census in skilled nursing assisted living facilities and home health reaching the highest occupancy levels in patient volumes since the onset of the pandemic.

    最後,以 SoftWriters 和 SHP 為首的備用站點醫療保健業務在本季度表現強勁。執行力紮實,業務受益於熟練護理輔助生活設施和家庭健康普查的改善,患者數量達到自大流行爆發以來的最高入住率。

  • Turning to the second half of the year, we expect to see mid-single-digit organic growth for this segment based on sustained ARR momentum. As we turn to Page 11, revenues in the quarter for our tech-enabled products segment were $403 million, up 19% on an organic basis. EBITDA margins for this segment were strong at 36.4% for the quarter. Across the segment, business performance and execution was exceptional. Importantly, the broad-based supply chain issues continue to ease.

    談到今年下半年,我們預計基於持續的 ARR 勢頭,該細分市場將實現中個位數的有機增長。當我們翻到第 11 頁時,我們的技術產品部門本季度的收入為 4.03 億美元,有機增長 19%。本季度該部門的 EBITDA 利潤率高達 36.4%,表現強勁。整個細分市場的業務績效和執行力都非常出色。重要的是,廣泛的供應鏈問題繼續緩解。

  • Neptune, our water meter and technology products business continues to be great. In the quarter, they had a record revenue performance. Importantly, Neptune continues to see increasing demand and momentum for the residential and commercial ultrasonic or static meters. We remain bullish about Neptune in the market in which they compete. Given this market tends to be quite steady as Neptune's customers' budgets are typically fixed year-to-year and not tied to broader macroeconomic trends or cycles.

    海王星,我們的水錶和技術產品業務繼續保持良好勢頭。在本季度,他們的收入表現創下了紀錄。重要的是,Neptune 繼續看到住宅和商業超聲波或靜態儀表的需求和勢頭不斷增長。我們仍然看好海王星在其競爭的市場中的表現。鑑於該市場往往相當穩定,因為海王星的客戶預算通常每年都是固定的,並且與更廣泛的宏觀經濟趨勢或週期無關。

  • Verathon was awesome in the quarter as well, with double-digit order growth and tremendous operational execution. Specifically, Verathon saw strength across the reoccurring single-use products, both bronchoscope or BFlex, and video innovation or GlideScope as well as BladderScan capital purchases.

    Verathon 在本季度也表現出色,訂單增長兩位數,運營執行力出色。具體來說,Verathon 看到了重複出現的一次性產品的優勢,包括支氣管鏡或 BFlex、視頻創新或 GlideScope 以及 BladderScan 資本購買。

  • Northern Digital or NDI was also strong in the quarter, setting a record revenue for the business. A group of smaller businesses here, IPA, rf IDEAS and Inovonics were fantastic in the quarter as they substantially work through a series of nagging supply chain challenges. Relative to the second half of the year, we expect to see high single-digit organic revenue growth. Recall, we have a tough Q3 revenue and margin comp to lap from the prior year.

    Northern Digital(NDI)在本季度也表現強勁,創下了該業務的創紀錄收入。 IPA、rf IDEAS 和 Inovonics 等規模較小的企業在本季度表現出色,因為它們基本上解決了一系列棘手的供應鏈挑戰。相對於今年下半年,我們預計有機收入將實現高個位數增長。回想一下,我們第三季度的收入和利潤率與去年相比非常艱難。

  • Now please turn to Page 13, and let's review our increased 2023 guidance. Based on our strong second quarter performance, we're raising our full year 2023 guidance for total revenue, organic revenue and adjusted debts. For 2023, we now expect total revenue growth to be around 13%, an increase from 12% plus last quarter. In addition, we're raising our full year organic revenue outlook to be in the 7% (inaudible), an increase from 6% to 7% last quarter and 5% to 6% in our original guide.

    現在請翻到第 13 頁,讓我們回顧一下我們增加的 2023 年指導。基於第二季度的強勁表現,我們上調了 2023 年全年總收入、有機收入和調整後債務的指引。對於 2023 年,我們目前預計總收入增長將在 13% 左右,高於上一季度的 12% 以上。此外,我們將全年有機收入預期上調至 7%(聽不清),從上季度的 6% 升至 7%,以及我們最初指南中的 5% 至 6%。

  • As a result of our improved revenue outlook, we're increasing our debt guidance to be in the range of $16.36 to $16.50, up from our prior guidance of $16.10 to $16.30. Assumed in this guidance is a tax rate trending to the high end of our 21% to 22% range. Specific to the third quarter, we're establishing our debt guidance to be in the range of $4.16 and $4.20.

    由於收入前景改善,我們將債務指導從之前的 16.10 美元到 16.30 美元提高到 16.36 美元到 16.50 美元。本指南中假設稅率趨向於 21% 至 22% 範圍的高端。具體到第三季度,我們將債務指導確定在 4.16 美元至 4.20 美元之間。

  • Now please turn over to Page 14, and then we'll look forward to answering your questions.

    現在請翻到第14頁,我們將期待回答您的問題。

  • We want to leave you with the same 4 points with which we started. First, the year started strong and we delivered solid second quarter results. In the quarter, we saw revenues increase 17% to $1.53 billion. This growth was underpinned with 9% organic revenue growth and 8% organic software recurring revenue growth. In addition, EBITDA margins were quite strong at 40.3%.

    我們想給您留下與我們開始時相同的 4 點。首先,今年開局強勁,我們交付了穩健的第二季度業績。本季度,我們的收入增長了 17%,達到 15.3 億美元。這一增長得益於 9% 的有機收入增長和 8% 的有機軟件經常性收入增長。此外,EBITDA 利潤率也相當強勁,達到 40.3%。

  • Second, based on the strong second quarter performance, the recurring nature of our revenue stream and the importance of our solutions to our customers, we're increasing our full year total and organic revenue growth outlook and increasing our full year debt outlook to be between $16.36 and $16.50.

    其次,基於第二季度強勁的業績、我們收入流的經常性性質以及我們的解決方案對客戶的重要性,我們提高了全年總收入和有機收入增長預期,並將全年債務預期提高到 16.36 美元至 16.50 美元之間。

  • Third, we're excited by the potential of Generative AI, both as it relates to internal productivity and using our application specificity to provide context for new product development ideas. We look forward to sharing progress and updates in coming quarters and years.

    第三,我們對生成式人工智能的潛力感到興奮,因為它與內部生產力相關,並利用我們的應用程序特殊性為新產品開發想法提供背景。我們期待在未來幾個季度和幾年中分享進展和更新。

  • And finally, we continue to be active with our capital deployment activities as we have north of $4 billion of available M&A firepower. As we've been discussing over the past several months, we have a very large pipeline of opportunities, though, as always, we remain super patient and highly disciplined to ensure the continued optimal deployment of our available capital.

    最後,我們繼續積極開展資本部署活動,因為我們擁有超過 40 億美元的可用併購火力。正如我們過去幾個月一直在討論的那樣,我們擁有大量的機會,但我們一如既往地保持超級耐心和高度紀律,以確保我們的可用資本持續得到最佳部署。

  • Now as we turn to your questions and if you flip to the final slide or strategic flywheel, we want to once again thank those of you who joined us in New York for our first ever Investor Day and for the hundreds who have watched the replay over the past few months.

    現在,當我們轉向你們的問題時,如果你們翻到最後一張幻燈片或戰略飛輪,我們要再次感謝那些在紐約參加我們的首屆投資者日的人們,以及過去幾個月觀看重播的數百名觀眾。

  • During that long-form overview of Roper, we were excited to share with you our long-term strategy, the high-quality nature of our portfolio of businesses, our operating ability to improve our businesses, our process-driven capital deployment approach and our compelling long-term business model that compounds cash flow in the mid-teens area. So thank you for your continued interest in Roper, and with that, let's open it up to your questions.

    在對羅博的長篇概述中,我們很高興與您分享我們的長期戰略、我們業務組合的高質量性質、我們改善業務的運營能力、我們流程驅動的資本部署方法以及我們令人信服的長期業務模式,該模式使現金流在十幾歲左右的區域複合。感謝您對 Roper 的持續關注,接下來讓我們來回答您的問題。

  • Operator

    Operator

  • (Operator Instructions)

    (操作員說明)

  • And the first question comes from Julian Mitchell with Barclays.

    第一個問題來自巴克萊銀行的朱利安·米切爾。

  • Julian C.H. Mitchell - Research Analyst

    Julian C.H. Mitchell - Research Analyst

  • Maybe just the first question around in network software. You had a very strong margin performance up over 200 points of only mid-single-digit organic growth. So I just wondered if there was anything driving that perhaps on mix or anything kind of onetime.

    也許只是網絡軟件中的第一個問題。你們的利潤率表現非常強勁,增長了 200 多點,有機增長僅為中個位數。所以我只是想知道是否有什麼東西可以驅動混音或一次性的東西。

  • And then also in that division, how are you thinking about second half growth in DAT and Loadlink versus first half?

    然後,在該部門中,您如何看待 DAT 和 Loadlink 與上半年相比的下半年增長?

  • Jason P. Conley - Executive VP & CFO

    Jason P. Conley - Executive VP & CFO

  • It's Jason. So yes, I mean, I think we had a strong performance across a lot of the businesses. I think the -- probably the one standout is our ConstructConnect business. We acquired a bolt-on that we closed last year. And we're seeing -- realizing the benefits from that deal. And then like I said, beyond that, it's just across the segment.

    是傑森。所以,是的,我的意思是,我認為我們在很多業務上都表現強勁。我認為最突出的可能是我們的 ConstructConnect 業務。我們獲得了去年關閉的螺栓連接。我們正在看到——意識到該交易的好處。然後就像我說的,除此之外,它只是跨越了細分市場。

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • And relative to your second question, second half for DAT and Loadlink, our Freight Match businesses, we continue to be cautious there and conservative. We've been -- held that posture the whole year. DAT performed very well in the quarter and it grew high single digits. The broker part of the business and the data analytics part of the business remains super solid, high retention rates.

    相對於你的第二個問題,下半年我們的貨運匹配業務 DAT 和 Loadlink,我們仍然保持謹慎和保守。我們一整年都保持這個姿勢。 DAT 在本季度表現非常出色,實現了高個位數增長。業務的經紀部分和數據分析部分的業務仍然非常穩定,保留率很高。

  • But as we all know, the carrier side of the market, the excess carriers are trading out of the market, and that has a weighing effect on DAT. So we've modeled that in all year long and it's playing out generally in line with what we thought here in Sarasota, maybe a touch better, but we'll just say in line with Sarasota's expectations.

    但眾所周知,在市場的運營商方面,多餘的運營商正在退出市場,這對 DAT 產生了影響。因此,我們全年都對此進行了建模,結果總體上與我們在薩拉索塔的想法一致,也許更好一些,但我們只會說符合薩拉索塔的期望。

  • And relative to the second half for DAT, the big wildcard is what happens with (inaudible). I mean -- so we'll see what happens there, could be a pickup for the spot market if something were to turn negative on either one or both of those.

    相對於 DAT 的後半部分,最大的通配符是(聽不清)發生的情況。我的意思是——所以我們將看看那裡會發生什麼,如果其中之一或兩者都轉為負面,現貨市場可能會有所回升。

  • Julian C.H. Mitchell - Research Analyst

    Julian C.H. Mitchell - Research Analyst

  • That's interesting. And then just as we look at the second half guidance, you called out even TEP the tough comp for third quarter. Just one other thing I wanted to check on the back half, it looks like the guidance implies fourth quarter debt doesn't really go up much sequentially in Q4.

    那很有意思。然後,就在我們查看下半年的指導時,您甚至指出 TEP 第三季度的競爭非常艱難。我想在後半部分檢查的另一件事是,看起來指導表明第四季度的債務在第四季度並沒有真正增加太多。

  • Historically, you've had often a mid-single-digit type increase in Q4 sequentially. I just wondered if that was just kind of conservatism in the construct for this year or if there's anything specific going on?

    從歷史上看,第四季度經常會出現中個位數的增長。我只是想知道這是否只是今年結構中的保守主義,或者是否有什麼具體的事情發生?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Nothing really specific sequentially. I mean I think we've talked about a little bit about just the seasonal shutdown at Neptune. We've had that historically. But I wouldn't point to any conservatism. I mean, we've got sort of networks still at mid-single digits. So maybe in the prior years, you might have seen some acceleration coming into the fourth quarter, but nothing really unusual there. And what was your first question? Sorry, Julian?

    沒有什麼真正具體的順序。我的意思是,我認為我們已經討論了海王星的季節性關閉問題。我們歷史上也有過這樣的情況。但我不會指出任何保守主義。我的意思是,我們的網絡數量仍處於中等個位數。因此,也許在前幾年,您可能會看到第四季度出現一些加速,但沒有什麼真正不尋常的。你的第一個問題是什麼?對不起,朱利安?

  • Julian C.H. Mitchell - Research Analyst

    Julian C.H. Mitchell - Research Analyst

  • Oh, no. That was really just around if there was anything on the fourth quarter to kind of call out. But it doesn't -- it sounds like this year should be fairly typical in terms of seasonality.

    不好了。如果第四季度有什麼值得強調的話,那就真的是差不多了。但事實並非如此——聽起來今年的季節性應該相當典型。

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Correct.

    正確的。

  • Operator

    Operator

  • And the next question comes from Deane Dray of RBC Capital Markets.

    下一個問題來自加拿大皇家銀行資本市場的迪恩·德雷 (Deane Dray)。

  • Deane Michael Dray - MD of Multi-Industry & Electrical Equipment & Analyst

    Deane Michael Dray - MD of Multi-Industry & Electrical Equipment & Analyst

  • Can we start with just broadly, the tone of business. There was a reference in the first quarter and I think also at the Analyst Day that you were seeing some slower customer decision-making.

    我們可以從廣義上的商業基調開始嗎?第一季度有一個參考,我認為在分析師日,您也看到了一些較慢的客戶決策。

  • But the way I look at this quarter with the upside on the organic side and the outlook, has that improved? And very specifically, would you measure that in new logos and SaaS conversions, but just kind of that tone of business, please?

    但我看待本季度有機方面和前景的上升趨勢是否有所改善?非常具體地說,您是否會在新徽標和 SaaS 轉化中衡量這一點,但只是這種業務基調,好嗎?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Yes. I would characterize it. Our software businesses are playing out about as we expected coming into the year, right? Expecting a little bit of a slowdown. So you see delayed decision-making that has -- that pushes out net new sales, but it also has the impact of having higher gross retention because decisions are being deferred. .

    是的。我會描述它的特徵。我們的軟件業務今年的表現正如我們預期的那樣,對吧?預計會有一點放緩。因此,您會看到延遲的決策制定,這會推高淨新銷售額,但它也會產生更高的毛保留率的影響,因為決策被推遲。 。

  • And then also just the amount of expansion activities that we have. Activity we have with our customers is a little bit less as our customers are just more cautious as they look forward. So that's playing out about as we expected. It's not acute in any one of our businesses. It's just sprinkled across the universe of our portfolio.

    然後還有我們的擴張活動的數量。我們與客戶的活動有點少,因為我們的客戶在展望未來時更加謹慎。所以事情的發展正如我們所預期的那樣。在我們的任何一項業務中,這種情況都不嚴重。它只是散佈在我們的投資組合中。

  • Relative to TEP, I mean it was just fantastic. We had a lot of demand in the medical businesses, remains very strong, especially at Verathon and CIVCO. A lot of supply chain clear up in the first half, especially in the second quarter. And we called out very rarely, do we call out the 3 small businesses that we did on the slide, but they had just terrific supply chain sort of performance and operational performance in the quarter.

    相對於 TEP,我的意思是它太棒了。我們在醫療行業有很多需求,而且仍然非常強勁,尤其是 Verathon 和 CIVCO。上半年,尤其是第二季度,很多供應鏈都得到了清理。我們很少提到我們在幻燈片上所做的 3 家小型企業,但他們在本季度的供應鏈績效和運營績效非常出色。

  • Deane Michael Dray - MD of Multi-Industry & Electrical Equipment & Analyst

    Deane Michael Dray - MD of Multi-Industry & Electrical Equipment & Analyst

  • Yes. That's really good to hear. And just as a follow-up, can we talk about the impact AI is having and how you're evaluating M&A candidates. So is there an eye towards the barriers to entry. Roper is focused on these deep domain expertise types of deep vertical. So how do you look at where and how AI might be a threat to these? How do you look at the candidates in terms of where and how AI might advance their business model and just what has changed there?

    是的。很高興聽到這個消息。作為後續行動,我們可以談談人工智能的影響以及您如何評估併購候選人。因此是否關注進入壁壘。 Roper 專注於這些深度垂直領域的專業知識類型。那麼,您如何看待人工智能可能在哪些方面以及如何對這些領域構成威脅?您如何看待候選人的人工智能可能在何處以及如何推進他們的商業模式以及其中發生了什麼變化?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Yes. I think it's certainly a consideration today. We're -- computationally, AI has been a consideration for a few years. Generative is newer this year. I think the thing that is nice about our portfolio or M&A strategy is it just happens to play into the strength of where Generative AI and Computational AI is best suited.

    是的。我認為今天這當然是一個考慮因素。從計算角度來說,我們多年來一直在考慮人工智能。生成式是今年較新的。我認為我們的投資組合或併購策略的好處在於它恰好發揮了生成人工智能和計算人工智能最適合的優勢。

  • So more verticalized, more application-specific, more intimacy with customers. And so, our M&A approach is well suited given the development of these technologies. And as always, you've heard us say this for decades, we're looking in our capital deployment. If there's a zero in the Monte Carlo, we can envision a doomsday, then we're out. We're just not going to lean into that.

    因此更加垂直化、更加針對特定應用、與客戶更加親密。因此,鑑於這些技術的發展,我們的併購方法非常適合。和往常一樣,幾十年來你一直聽到我們這麼說,我們正在考慮我們的資本部署。如果蒙特卡洛有一個零,我們可以想像世界末日,那麼我們就出局了。我們只是不會傾向於這一點。

  • So we'll look at -- we always look at that. And to the extent we can dream up as zero in the Monte Carlo because of Generative Computational AI, then we're not going to consider it in any way. So that's not a new thing for us. Anything to add, Jason?

    所以我們會關注——我們總是關注這一點。在某種程度上,由於生成計算人工智能,我們可以在蒙特卡洛夢想為零,那麼我們不會以任何方式考慮它。所以這對我們來說並不是什麼新鮮事。有什麼要補充的嗎,傑森?

  • Jason P. Conley - Executive VP & CFO

    Jason P. Conley - Executive VP & CFO

  • No, I think that's right. And any sort of content type business, we've always steered away from, and I think this just accentuates that with the advent of AI, Generative AI.

    不,我認為這是對的。我們一直迴避任何類型的內容類型業務,我認為隨著人工智能、生成式人工智能的出現,這只會加劇這一點。

  • Operator

    Operator

  • And the next question comes from Joseph Vruwink, Robert W. Baird and Co.

    下一個問題來自 Joseph Vruwink、Robert W. Baird 等人。

  • Joseph D. Vruwink - Senior Research Analyst

    Joseph D. Vruwink - Senior Research Analyst

  • If I go back to last quarter, I think you referenced the Leadership Summit and the business unit presidents coming together. This quarter, there was an announcement about iPipeline and Vertafore partnering together on product. Is it may be possible to connect these 2 things together? So by doing more to share best practices across the operating divisions, can Roper actually uncover incremental product opportunities and maybe offering a broader suite when it comes to certain end markets that are jointly served today?

    如果我回到上個季度,我想您提到了領導力峰會和業務部門總裁的聚會。本季度,發布了有關 iPipeline 和 Vertafore 在產品上合作的公告。是否有可能將這兩件事連接在一起?因此,通過更多地在各個運營部門分享最佳實踐,羅珀能否真正發現增量產品機會,並可能在當今共同服務的某些終端市場上提供更廣泛的套件?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Yes. I think there's definitely and demonstrably benefits for getting our leaders together unequivocally. It's going to be more in sharing best practices, sharing leadership philosophy, sharing failures and what they learn from the failure. It's going to be more about how do you lead, how do you manage, how do you inspire teams for terrific performance.

    是的。我認為讓我們的領導人明確地團結起來肯定有明顯的好處。它將更多地分享最佳實踐、分享領導理念、分享失敗以及他們從失敗中學到的東西。它將更多地涉及你如何領導、如何管理、如何激勵團隊取得出色的績效。

  • It's going to be less on connection with the product teams because most of our businesses are in independent and disconnected markets and swim lanes. So if there's something that makes sense, we'll certainly do it. If it doesn't make sense, we won't.

    與產品團隊的聯繫將會減少,因為我們的大多數業務都位於獨立且互不相連的市場和泳道中。因此,如果有什麼有意義的事情,我們一定會去做。如果沒有意義,我們就不會。

  • The good news about this particular iPipeline and Vertafore is it happened organically between the businesses without any push from the center. So you know that's authentic and it's going to drive value for our customers.

    關於這個特定的 iPipeline 和 Vertafore 的好消息是,它是在企業之間有機發生的,沒有任何來自中心的推動。所以你知道這是真實的,它將為我們的客戶帶來價值。

  • Joseph D. Vruwink - Senior Research Analyst

    Joseph D. Vruwink - Senior Research Analyst

  • Okay. That's helpful. Just on the topic of Generative AI. As you say, your businesses, they provide the context that the applications need. So growth retention, if anything, is biased higher in many aspects. How do you think about net retention and just participating in new avenues for growth. So with some of the early products discussed today, does that really strengthen the core? Or is there a separate monetization that can happen?

    好的。這很有幫助。只是關於生成人工智能的主題。正如您所說,您的企業提供了應用程序所需的上下文。因此,如果有的話,生長保持率在許多方面都偏高。您如何看待淨保留率和參與新的增長途徑?那麼今天討論的一些早期產品,真的能強化核心嗎?或者是否可以進行單獨的貨幣化?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • No, no. I think there's definitely monetization that could happen. It will happen over time. There's no silver bullet in the short run. We play the long game, build for long-term customer value relationships.

    不,不。我認為肯定會發生貨幣化。隨著時間的推移,它會發生。短期內沒有靈丹妙藥。我們著眼長遠,建立長期的客戶價值關係。

  • But there's just massive amounts of value that can be created by doing things with both Computational on Generative AI. And our relationship with our customers are such that we're -- at least for the last 20 years, we're able to capture our fair share of the value that's created. So I don't know why that would be any different going forward.

    但是,通過計算和生成人工智能可以創造大量的價值。我們與客戶的關係使得我們——至少在過去 20 年裡,能夠公平地分享所創造的價值。所以我不知道為什麼未來會有所不同。

  • And then as we all know, there's a tremendous amount of value or productivity to capture inside the 4 walls of our businesses using Generative AI as well.

    眾所周知,使用生成式人工智能在我們業務的 4 堵牆內也可以捕獲巨大的價值或生產力。

  • Operator

    Operator

  • And the next question comes from Allison Poliniak with Wells Fargo.

    下一個問題來自富國銀行的艾莉森·波利尼亞克。

  • Allison Ann Marie Poliniak-Cusic - Director & Senior Equity Analyst

    Allison Ann Marie Poliniak-Cusic - Director & Senior Equity Analyst

  • I saw the announcement with IntelliTrans sort of stepping out and partnering with the product sensor business. Is that something that's just unique to IntelliTrans? Or is it something that you're doing to sort of leverage that sort of asset-light business that you have? Any thoughts there.

    我看到 IntelliTrans 宣布退出並與產品傳感器業務合作。這是 IntelliTrans 獨有的功能嗎?或者你正在做的事情是為了利用你擁有的那種輕資產業務?有任何想法。

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • No, that's very, very bespoke to IntelliTrans. I mean there's not an enterprise-wide strategy to do anything like that nor would we -- if there was, we wouldn't push it down. It's anathetical to what Roper is about. So it's very bespoke to IntelliTrans. Gold star for asking IntelliTrans question, by the way.

    不,這是為 IntelliTrans 量身定制的。我的意思是,沒有一個企業範圍的戰略可以做這樣的事情,我們也不會——如果有的話,我們也不會阻止它。這與羅珀的內容是矛盾的。所以它是專門為 IntelliTrans 定制的。順便說一句,因詢問 IntelliTrans 問題而獲得金星。

  • Allison Ann Marie Poliniak-Cusic - Director & Senior Equity Analyst

    Allison Ann Marie Poliniak-Cusic - Director & Senior Equity Analyst

  • It helps in also covering transports. So -- and then just on tech-enabled products, that business continues to outperform organically. You mentioned difficult comps in Q3. Is there any more color you can give us to the cadence between Q3 and Q4 to kind of reach that target? And what sort of drove that outperformance this quarter?

    它還有助於覆蓋交通。因此,僅在技術支持的產品上,該業務就繼續有機地跑贏大市。你提到了第三季度的困難比賽。您是否可以為我們提供更多關於第三季度和第四季度之間的節奏的信息,以達到該目標?是什麼推動了本季度的優異表現?

  • Jason P. Conley - Executive VP & CFO

    Jason P. Conley - Executive VP & CFO

  • Yes. So this is Jason. I think it's a pretty consistent cadence in terms of the quarters. What I would say is the outperformance in Q3 was really across the board. We had -- Neptune continues to execute really well in their backlog. Their daily sales are up over their plan.

    是的。這就是傑森。我認為就季度而言,這是一個相當一致的節奏。我想說的是,第三季度的表現確實全面。我們——海王星在他們的積壓工作中繼續表現得非常好。他們的每日銷售額超出了計劃。

  • Healthcare is doing really well in terms of procedures. So just executing on a kind of book-and-ship basis there. And then our -- some of our product businesses had some backlog that finally got cleared. So that really drove the Q3.

    醫療保健在程序方面做得非常好。因此,只是在預訂和發貨的基礎上執行。然後我們的一些產品業務有一些積壓,最終得到了清除。這確實推動了第三季度的發展。

  • And then the second half, like I said, organic growth should be fairly consistent. It's just what we had last year. We had a lot of backlog clear in the third quarter that with very high-margin products. So that's sort of the comp issue that we're lapping in the third quarter.

    然後下半年,就像我說的,有機增長應該相當一致。這正是我們去年的情況。第三季度我們有大量積壓的產品,利潤率非常高。這就是我們在第三季度遇到的補償問題。

  • Operator

    Operator

  • And the next question comes from Terry Tillman with Truist.

    下一個問題來自 Truist 的 Terry Tillman。

  • Terrell Frederick Tillman - Research Analyst

    Terrell Frederick Tillman - Research Analyst

  • Wonderful. Happy Friday, Neil, Jason and Zack. Maybe the first question, it's almost technically 2 questions, but I'm going to call it 1.5 questions, is actually back on Deltek, one of your biggest businesses, if not biggest business, on the app software side. I'm just curious on the relative health and demand. Somebody earlier asked about macro, but how the government side is performing versus private sector side?

    精彩的。星期五快樂,尼爾、傑森和扎克。也許第一個問題,從技術上來說幾乎是 2 個問題,但我將其稱為 1.5 個問題,實際上是回到 Deltek,在應用軟件方面,它是你們最大的業務之一,即使不是最大的業務。我只是對相對健康狀況和需求感到好奇。之前有人問宏觀,但是政府方面與私營部門方面的表現如何?

  • And the second part of that first question is it seems like something with Replicon, and I think you said it's about $70 million. You could have some pretty good revenue synergy opportunities. And how do you think about that $70 million business kind of unleashing that product into that large Deltek installed base? And then I have a follow-up.

    第一個問題的第二部分似乎是 Replicon 的事情,我想你說過大約 7000 萬美元。您可能會獲得一些非常好的收入協同機會。您如何看待價值 7000 萬美元的業務將該產品釋放到 Deltek 龐大的安裝基礎?然後我有一個後續行動。

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • So we'll call that 2 questions, 30 degrees. But the Deltek demand, as we talked about in the prepared remarks, our performance was solid across both government contracting and private sector. We are encouraged by the pipeline build in the quarter for Q4 and early '24 in government contracting. There definitely was a little bit of a lull or an air pocket in government contracting relative to the debt ceiling. And so it was nice to see activity get back to normalize or maybe slightly better than normalized activities relative to early pipeline build. So that was encouraging to see. You've got to see how that plays out, for sure.

    所以我們稱之為 2 個問題,30 度。但正如我們在準備好的發言中談到的,Deltek 的需求是,我們在政府承包和私營部門的表現都很穩健。我們對第四季度和 24 年初政府合同的管道建設感到鼓舞。相對於債務上限,政府合同肯定出現了一些停滯或空洞。因此,很高興看到活動恢復正常,或者可能比早期管道構建的正常活動稍好一些。所以這是令人鼓舞的。當然,你必須看看結果如何。

  • Replicon, we really like this bolt-on. As we said, it's the largest bolt-on we've done at $450 million, $370 million net of the tax benefit. It's time entry without attachment to an ERP. So time only is a highly demanded solution in the PS world.

    複製品,我們真的很喜歡這個螺栓。正如我們所說,這是我們做過的最大的補充項目,耗資 4.5 億美元,扣除稅收優惠後為 3.7 億美元。現在是不依賴 ERP 的時間輸入。因此,僅時間是 PS 世界中迫切需要的解決方案。

  • It is not sold today in government contracting. And so we have not underwritten into a revenue synergy opportunity. That's not part of the $70 million or the $24 million that we talked about. But it is certainly the expectation over time is to get Deltek takes this product in other core market of government contracting.

    今天它不再在政府合同中出售。因此,我們還沒有承保收入協同機會。這不屬於我們所說的 7000 萬美元或 2400 萬美元。但隨著時間的推移,Deltek 肯定會期望該產品能夠進入政府承包的其他核心市場。

  • Terrell Frederick Tillman - Research Analyst

    Terrell Frederick Tillman - Research Analyst

  • Got it. And thanks for being generous, yes, I guess this technically is the third question. Then on the idea of the M&A pipeline and you talked about you're just kind of working through opportunities and bespoke situations, et cetera. But compared to like 90 days ago, would you suggest that there's more -- it's more actionable on the bolt-ons versus the potential platform deals. Just maybe a temperature gauge on the stack ranking of the 2 types.

    知道了。感謝您的慷慨,是的,我想這從技術上講是第三個問題。然後關於併購渠道的想法,您談到您只是在利用機會和定制情況等等。但與 90 天前相比,您是否認為還有更多——與潛在的平台交易相比,附加交易更具可操作性。也許只是這兩種類型的堆棧排名上的溫度計。

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Yes. So it's been an interesting 90 days. So we continue to be active. Our pipeline still skews more towards bolt-ons for sure. More broadly in the market over the last 90 days, we are encouraged by the fact that there are a couple of sizable deals private that did not happen because the buyer universe rejected the seller's expectation on value.

    是的。所以這是有趣的 90 天。所以我們繼續保持活躍。當然,我們的管道仍然更傾向於螺栓連接。在過去 90 天的更廣泛市場中,我們感到鼓舞的是,有幾筆規模較大的私人交易由於買方群體拒絕了賣方對價值的預期而沒有發生。

  • And so we view that as -- and the deal ultimately did not consummate. So we view that as actually an encouraging sign around as an early indicator that valuations are going to pull in to being a more normalized with cost of capital. So we're encouraged by that. But still, our pipeline leans into the bolt-on opportunities.

    因此,我們認為這筆交易最終沒有完成。因此,我們認為這實際上是一個令人鼓舞的跡象,作為估值將隨著資本成本更加正常化的早期指標。所以我們對此感到鼓舞。但我們的渠道仍然傾向於抓住補充機會。

  • Jason P. Conley - Executive VP & CFO

    Jason P. Conley - Executive VP & CFO

  • Yes, (inaudible) are down dramatically year-over-year. And so there's just a lot of assets that, at some point, need to go. And it's been 1.5 years now. So we think it's getting closer.

    是的,(聽不清)同比大幅下降。因此,在某些時候,有很多資產需要轉移。現在已經1.5年了。所以我們認為它越來越近了。

  • Operator

    Operator

  • And the next question comes from Christopher Glynn with Oppenheimer.

    下一個問題來自克里斯托弗·格林和奧本海默。

  • Christopher D. Glynn - MD & Senior Analyst

    Christopher D. Glynn - MD & Senior Analyst

  • I wanted to touch on Foundry. Curious if there's any risk of any followed or perturbations from labor strife risk? And also, if you could revisit the comments on the transition plan for that?

    我想談談 Foundry。好奇是否存在勞資衝突風險帶來的任何後續或乾擾風險?另外,您是否可以重新審視有關過渡計劃的評論?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Sure. So Foundry, for those that aren't familiar with it, it's a business and media entertainment, that's used in post production for a process called compositing where you take a live action image and a computer-generated image and push them together in the single scene.

    當然。所以 Foundry,對於那些不熟悉它的人來說,它是一種商業和媒體娛樂,用於後期製作中的一個稱為合成的過程,在該過程中,您拍攝真人圖像和計算機生成的圖像,並將它們推到單個場景中。

  • So think Game of Thrones, pretty much ever scene in Game of Thrones was used as composite with Foundry software as is almost any high-end production or streaming series. So as it turns out, I think this is the first time since 1960, we've had both a writer's strike and an actor's strike concurrently. So the current production of content is ceased.

    所以想想《權力的遊戲》,《權力的遊戲》中的幾乎所有場景都是與 Foundry 軟件合成的,就像幾乎所有高端製作或流媒體系列一樣。事實證明,我認為這是自 1960 年以來我們第一次同時舉行作家罷工和演員罷工。因此,當前的內容製作已停止。

  • There is still a very active pipeline of things in post, and so it has no impact currently on Foundry. The current expectation is the strikes will be resolved this year. And if that's the case, then there'll be very little impact Foundry next year as they'll be back in production and sort of catch up. If it extends beyond this year, then yes, Foundry will likely be negatively impacted to some extent next year. So that's just going to be a watch item for us.

    後期仍有非常活躍的流程,因此目前對 Foundry 沒有影響。目前的預期是罷工將在今年得到解決。如果是這樣的話,那麼明年對 Foundry 的影響就很小了,因為他們將重新投入生產並迎頭趕上。如果這種情況持續到今年之後,那麼是的,明年 Foundry 可能會受到一定程度的負面影響。所以這對我們來說只是一個觀察項目。

  • And your second question, Foundry this year commenced the transition to a subscription pricing model for their core product of Nuke. So this year, there are -- you can buy it either as a license or a subscription. As we mentioned, about 60% -- north of 60% of the Nuke. Units were sold on a subscription basis this year. So it's a nice transition ahead of our plan. ARR is growing double digits. And then beginning next year, it will be 100% subscription opportunity to buy in the license format. So going a little bit better than planned.

    你的第二個問題,Foundry 今年開始為其核心產品 Nuke 過渡到訂閱定價模式。所以今年,您可以以許可證或訂閱的形式購買它。正如我們提到的,大約 60%——Nuke 的 60% 以北。今年單位以認購方式出售。所以這是我們計劃之前的一個很好的過渡。 ARR 正在增長兩位數。然後從明年開始,將有 100% 訂閱機會以許可證格式購買。所以比計劃的要好一些。

  • Operator

    Operator

  • And the next question comes from Steve Tusa with JPMorgan.

    下一個問題來自摩根大通的史蒂夫·圖薩。

  • Charles Stephen Tusa - MD

    Charles Stephen Tusa - MD

  • So just a couple of things. Can you just talk about what you expect for third quarter free cash? Maybe just talk about the deferred revenue drag you guys have had in the first half, what's driving that? And then just what are organic bookings year-over-year for the software businesses in the second quarter?

    所以只有幾件事。您能談談您對第三季度自由現金的預期嗎?也許只是談談你們上半年遇到的遞延收入拖累,是什麼推動了這種情況?那麼第二季度軟件業務的有機預訂量同比是多少?

  • Jason P. Conley - Executive VP & CFO

    Jason P. Conley - Executive VP & CFO

  • Yes. So as we mentioned before, Frontline is a new dynamic, right, for Roper, where all of the renewals happen in the third quarter. So we're already tracking really strong just month to date, if you will, for the renewals there. And they actually consumed cash in the first half, just to give you a perspective on that.

    是的。正如我們之前提到的,對於 Roper 來說,Frontline 是一個新的動力,所有的續訂都發生在第三季度。因此,如果您願意的話,我們已經在本月迄今為止的續訂方面進行了非常強勁的追踪。他們實際上在上半年消耗了現金,只是為了讓您了解這一點。

  • I mean also, I think we historically have very strong second half seasonality. So that, plus just some of the -- I think some of the timing of working capital in the second quarter points to a much better second half.

    我的意思是,我認為從歷史上看,我們下半年的季節性非常強勁。因此,加上一些——我認為第二季度營運資金的一些時機表明下半年會好得多。

  • First half, we usually -- we pay out incentives. We had -- this year, we had that legal settlement. So that points to sort of that seasonal change for this year. And so we're still on track to deliver north of 30% of free cash flow to revenue.

    上半年,我們通常會支付獎勵。今年,我們達成了法律和解。這表明今年的季節性變化。因此,我們仍有望將 30% 以上的自由現金流轉化為收入。

  • And then you asked about the trends on. So if we kind of look at enterprise software bookings, and it was up sequentially a bit and up year-over-year. Not quite as strong as the first quarter, maybe like low singles in area, which is about in line with what we had. It's obviously embedded in sort of our slowdown for the second half for new activity.

    然後你問了趨勢。因此,如果我們看一下企業軟件預訂量,就會發現它逐年上升,而且逐年上升。不如第一季度那麼強勁,可能就像面積上的低單打一樣,這與我們所擁有的情況大致一致。這顯然與我們下半年新活動的放緩有關。

  • Operator

    Operator

  • And the next question comes from Brent Thill with Jefferies.

    下一個問題來自 Jefferies 的布倫特·希爾 (Brent Thill)。

  • Unidentified Analyst

    Unidentified Analyst

  • This is (inaudible), on for Brent. Maybe just on the AI theme. I appreciate some of the color that you guys gave. I was curious, is there some sort of AI Playbook that you guys are laying out for the portfolio of companies to be thinking through? Just curious how you're approaching that across the portfolio, and I appreciate some of those one-off case studies?

    這是布倫特的(聽不清)。也許只是關於人工智能主題。我很欣賞你們提供的一些顏色。我很好奇,你們是否正在為公司投資組合製定某種人工智能手冊來思考?只是好奇你是如何在整個投資組合中實現這一目標的,我很欣賞其中的一些一次性案例研究?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Yes. So Playbook, I would say, no; accelerated education across multiple fronts, yes. So what is it? What's (inaudible) possible? What are the risks? What are the IP ownership issues? What is -- how do you get productivity with -- in R&D, how do you get marketing lead productivity, marketing content productivity, customer service productivity? We're doing a series of teach-ins and learnings that is highly subscribed by our businesses. And so that's how we're sort of accelerating the learning across the enterprise.

    是的。所以 Playbook,我會說,不;是的,在多個方面加速教育。那麼它是什麼?什麼是(聽不清)可能的?有哪些風險? IP所有權問題有哪些?什麼是——如何獲得研發生產力?——如何獲得營銷線索生產力、營銷內容生產力、客戶服務生產力?我們正在進行一系列的宣講和學習活動,受到我們企業的高度認可。這就是我們加速整個企業學習的方式。

  • Unidentified Analyst

    Unidentified Analyst

  • Got it. That's helpful. And then maybe I wanted to just ask about you guys often talk about the portfolio being mostly macro insulated. I think the macro hasn't been as bad as many have viewed. But as you guys kind of think through that, have there been any companies that as things have softened a little bit that maybe have stuck out and maybe were a little surprising where you thought, hey, maybe these were a little bit more macro immune than they've been showing up to be?

    知道了。這很有幫助。然後也許我想問一下你們經常談論的投資組合大多與宏觀絕緣。我認為宏觀經濟並沒有像許多人認為的那麼糟糕。但當你們仔細思考一下時,是否有任何公司隨著情況有所緩和,可能仍然突出,也許有點令人驚訝,你認為,嘿,也許這些公司比他們表現出來的更有宏觀免疫力?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • Look, Jason, I think, to our surprise, no. I mean, obviously, the one that gets a lot of attention is our DAT business, which grew. It's just truly exceptional the last couple of years. And then this year, it's moderated, still growing. And we talked about that quite a bit last quarter.

    聽著,傑森,我想,令我們驚訝的是,沒有。我的意思是,顯然,備受關注的是我們的 DAT 業務,它正在增長。過去幾年確實非常出色。然後今年,它有所放緩,仍在增長。上個季度我們對此進行了很多討論。

  • We -- so really nothing. I mean, Neptune is solid. As we said in the prepared remarks, their customers' budgets tend to be very fixed year-to-year and not tied to housing starts, which some people think is the case, but it generally is not. Jason, anything that surprises?

    我們——真的什麼都沒有。我的意思是,海王星是固體的。正如我們在準備好的評論中所說,他們的客戶的預算往往每年都非常固定,並且與新屋開工無關,有些人認為是這樣,但通常情況並非如此。傑森,有什麼驚喜嗎?

  • Jason P. Conley - Executive VP & CFO

    Jason P. Conley - Executive VP & CFO

  • I don't think so.

    我不這麼認為。

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • There's really nothing surprising on the cyclical piece.

    週期性的作品確實沒有什麼令人驚訝的。

  • Jason P. Conley - Executive VP & CFO

    Jason P. Conley - Executive VP & CFO

  • Yes. I mean Shannon has pointed out, maybe there's a little bit around government contracting, as I mentioned earlier, on the debt ceiling. It's not a macro point per se, but that's not clear at Deltek.

    是的。我的意思是香農指出,正如我之前提到的,在債務上限方面,也許有一些政府合同的問題。這本身並不是一個宏觀問題,但 Deltek 並不清楚。

  • Operator

    Operator

  • And the next question comes from Joe Ritchie with Goldman Sachs.

    下一個問題來自高盛的喬·里奇。

  • Joseph Alfred Ritchie - VP & Lead Multi-Industry Analyst

    Joseph Alfred Ritchie - VP & Lead Multi-Industry Analyst

  • So maybe just to round out that free cash flow margin point, going forward now that the seasonality has maybe changed a little bit, should we think about them like the second quarter as being kind of like a free cash flow margin around 20% going forward as you kind of think about modeling that business?

    因此,也許只是為了完善自由現金流利潤率點,既然季節性可能已經發生了一些變化,我們是否應該像第二季度一樣將其視為自由現金流利潤率大約為 20%,當您考慮對該業務進行建模時?

  • Jason P. Conley - Executive VP & CFO

    Jason P. Conley - Executive VP & CFO

  • I mean it's going to be lower. I'm not sure if I point to a specific margin for every year. But we do make 2 federal tax payments. So that obviously just drags on the second quarter. But so it's always going to be lower than the full year. So that's how I would model it.

    我的意思是它會更低。我不確定我是否指出每年的具體利潤。但我們確實繳納了兩筆聯邦稅。因此,這顯然會拖累第二季度。但因此它總是會低於全年。這就是我建模的方式。

  • Joseph Alfred Ritchie - VP & Lead Multi-Industry Analyst

    Joseph Alfred Ritchie - VP & Lead Multi-Industry Analyst

  • Okay. All right. Great. That's helpful. And then I guess, lastly, we talked a little bit about technology-enabled products and the growth this quarter, tougher comps going forward. I'm just curious, is there a way to potentially quantify the supply chain easing impact that occurred this quarter? And then is that going to continue? I guess is that part of the headwind then potentially as you kind of -- as you think about the second half of the year?

    好的。好的。偉大的。這很有幫助。然後我想,最後,我們討論了一些技術支持的產品和本季度的增長,以及未來更艱難的競爭。我只是好奇,有沒有辦法可以量化本季度發生的供應鏈寬鬆影響?然後這種情況會繼續下去嗎?我想這可能是你對下半年的逆風的一部分嗎?

  • Laurence Neil Hunn - President, CEO & Director

    Laurence Neil Hunn - President, CEO & Director

  • That might be hard. We might have to -- I mean mid-single-digit growth is normal for that segment. And then we got to parse how much might be strength at Verathon and CIVCO that might be a little bit recurring on top of that, but then the balance may be -- and then the balance would be the supply chain sort of pull and a release.

    這可能很難。我們可能不得不——我的意思是,該細分市場的中個位數增長是正常的。然後我們必須分析 Verathon 和 CIVCO 的實力有多大,這可能會反復出現,但平衡可能是——然後平衡將是供應鏈的拉動和釋放。

  • Operator

    Operator

  • And this concludes our question-and-answer session. I will now turn it back to Zack Moxcey for any closing remarks.

    我們的問答環節到此結束。現在我將把它轉回給扎克·莫西(Zack Moxcey)以供結束語。

  • Zack Moxcey - VP of IR

    Zack Moxcey - VP of IR

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

    謝謝大家今天加入我們。我們期待在下一次財報電話會議上與您交談。

  • Operator

    Operator

  • Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

    謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。