SARASOTA, Fla. - Roper Technologies Inc. (NASDAQ:ROP) reported solid financial growth for the fourth quarter and full year ended December 31, 2023. The company experienced a 13% increase in quarterly revenue, amounting to $1.61B, with an 8% organic growth component. GAAP Diluted Earnings Per Share (DEPS) saw a significant rise of 51% to $3.50, while adjusted DEPS grew by 11% to $4.37. GAAP net earnings stood at $378M.
For the entire year, Roper's revenue escalated by 15% to $6.18B, with the same organic revenue growth rate of 8% as seen in the fourth quarter. The annual GAAP DEPS increased by 38% to $12.74, and adjusted DEPS climbed by 17% to $16.71. The company's adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) improved by 16% to $2.51B.
Roper's President and CEO, Neil Hunn, attributed the strong financial performance to operational execution and strategic capital deployment. The company invested $2.1B in vertical software acquisitions, including the integration of Syntellis Performance Solutions with Strata Decision Technology.
Looking ahead, Roper anticipates a positive 2024, driven by its expanding recurring revenue base and demand for its mission-critical solutions. The company's 2024 guidance forecasts an adjusted DEPS range of $17.85 to $18.15 and anticipates a total revenue growth between 11% and 12%, with organic revenue growth projected at 5% to 6%. These figures include the expected contributions from the recent acquisition of Procare Solutions, a leading childcare software provider, set to close in the first quarter of 2024.
Roper's minority interests, following the sale of a majority stake in its industrial businesses to CD&R, include investments in Indicor and Certinia. The value of these investments is updated quarterly and reported as equity investments activity, net, with non-GAAP adjustments made for associated impacts.
The company completed divestitures of TransCore, Zetec, and the majority stake in Indicor, reporting their financial results as discontinued operations.
The information is based on a press release statement, and a conference call to discuss the results was scheduled for 8:00 AM ET today. The call was available via webcast or telephonic replay using the provided access codes.
InvestingPro Insights
Roper Technologies Inc. (NASDAQ:ROP) has demonstrated a robust financial trajectory, as reflected in the recent earnings report. InvestingPro data shows a substantial Market Cap of approximately $59.99B, indicating the company's significant presence in the market. The P/E Ratio stands at 20.42, suggesting investor confidence in Roper's earnings potential. However, when adjusted for the last twelve months as of Q3 2023, the P/E Ratio rises to 49.1, hinting at a premium valuation. Revenue growth remains strong, with a 15.35% increase over the last twelve months, aligning with the reported annual revenue escalation.
InvestingPro Tips highlight that Roper has raised its dividend for 10 consecutive years, underpinning a commitment to shareholder returns. Additionally, the company is trading at a high earnings multiple, which may warrant attention from value-focused investors. With a dividend growth of 20.97% and a modest dividend yield of 0.53%, Roper continues to reward its investors. It's also worth noting that analysts predict the company will be profitable this year, which is consistent with the positive outlook presented by Roper's CEO.
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