tiprankstipranks
Roper Technologies Announces Updated Segment Structure
Press Releases

Roper Technologies Announces Updated Segment Structure

SARASOTA, Fla., June 30, 2022 (GLOBE NEWSWIRE) — Roper Technologies, Inc. (NYSE: ROP) announced today that it has updated its reportable segments. The three updated reportable segments are as follows:

  • Application Software – Aderant, CBORD, CliniSys, Data Innovations, Deltek, IntelliTrans, PowerPlan, Strata, Vertafore
  • Network Software – ConstructConnect, DAT, Foundry, iPipeline, iTradeNetwork, Loadlink, MHA, SHP, SoftWriters
  • Technology Enabled Products – CIVCO Medical Solutions, FMI, Inovonics, IPA, Neptune, Northern Digital, rf IDEAS, Verathon

Beginning with the second quarter of 2022, the Company will report its quarterly and full year financial statements under the new segment structure with prior periods recast to reflect the change.

Discontinued Operations

On June 1, 2022, Roper announced an agreement to sell a majority stake in its industrial businesses, including its entire historical Process Technologies reportable segment (AMOT, CCC, Cornell, FTI, Metrix, PAC, Roper Pump, and Viatran) and the industrial businesses within its historical Measurement & Analytical Solutions reportable segment (Alpha, Dynisco, Hansen, Hardy, Logitech, Struers, Technolog, and Uson). Beginning in the second quarter of 2022, Roper plans to report the results of these businesses as discontinued operations.

Use of Non-GAAP Financial Information

The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.

Unaudited Historical Financial Information

The Company has included below unaudited historical financial segment information recast to give effect to the new reportable segment structure.

Table 1: GAAP Segment Financials ($M)                                    
(Unaudited)                                    
  2019 A   2020
  2021
  2022
  FY   Q1   Q2   Q3   Q4   FY   Q1   Q2   Q3   Q4   FY   Q1
                                               
Revenue                                              
Application Software $ 1,573   $ 402   $ 395   $ 444   $ 545   $ 1,786   $ 573   $ 588   $ 600   $ 605   $ 2,367   $ 628
Network Software   889     263     257     266     283     1,069     287     298     316     323     1,224     338
Technology Enabled Products   1,095     292     300     292     283     1,167     295     304     316     329     1,243     313
Total $ 3,558   $ 957   $ 952   $ 1,002   $ 1,111   $ 4,022   $ 1,155   $ 1,190   $ 1,232   $ 1,257   $ 4,834   $ 1,280
                                               
Gross Profit                                              
Application Software $ 1,058   $ 269   $ 272   $ 306   $ 375   $ 1,222   $ 397   $ 407   $ 418   $ 420   $ 1,643   $ 435
Network Software   764     218     213     221     236     888     239     250     267     272     1,029     285
Technology Enabled Products   652     178     191     179     170     718     180     182     186     188     735     177
Total $ 2,474   $ 664   $ 676   $ 707   $ 781   $ 2,828   $ 816   $ 839   $ 872   $ 880   $ 3,407   $ 897
                                               
Operating Profit B                                                  
Application Software $ 406   $ 97   $ 113   $ 125   $ 132   $ 468   $ 154   $ 153   $ 164   $ 162   $ 633   $ 172
Network Software   355     91     87     97     107     383     106     111     126     134     477     137
Technology Enabled Products   370     101     114     105     92     412     106     102     104     103     415     100
Total $ 1,131   $ 290   $ 314   $ 327   $ 331   $ 1,263   $ 365   $ 367   $ 395   $ 399   $ 1,525   $ 409

Table 2: Adjusted Segment Financials ($M)                                    
(Unaudited)                                    
  2019 A   2020
  2021
  2022
  FY   Q1   Q2   Q3   Q4   FY   Q1   Q2   Q3   Q4   FY   Q1
                                               
Revenue                                              
Application Software $ 1,574   $ 402   $ 395   $ 447   $ 550   $ 1,794   $ 574   $ 588   $ 600   $ 605   $ 2,368   $ 628
Network Software   899     266     258     266     283     1,073     287     298     316     323     1,224     338
Technology Enabled Products   1,095     292     300     292     283     1,167     295     304     316     329     1,243     313
Total $ 3,568   $ 959   $ 953   $ 1,006   $ 1,116   $ 4,034   $ 1,156   $ 1,190   $ 1,232   $ 1,257   $ 4,835   $ 1,280
                                               
Gross Profit                                              
Application Software $ 1,058   $ 269   $ 272   $ 309   $ 380   $ 1,230   $ 398   $ 407   $ 418   $ 420   $ 1,644   $ 435
Network Software   774     220     214     221     236     892     239     250     267     272     1,029     285
Technology Enabled Products   652     178     191     179     170     718     180     182     186     188     735     177
Total $ 2,485   $ 667   $ 678   $ 710   $ 786   $ 2,840   $ 817   $ 839   $ 872   $ 880   $ 3,408   $ 897
                                               
Operating Profit B                                        
Application Software $ 406   $ 97   $ 113   $ 128   $ 135   $ 474   $ 153   $ 152   $ 163   $ 161   $ 628   $ 171
Network Software   365     94     89     97     107     386     106     111     126     134     477     137
Technology Enabled Products   370     101     114     105     92     412     106     102     104     103     415     100
Total $ 1,141   $ 292   $ 315   $ 330   $ 334   $ 1,272   $ 364   $ 365   $ 393   $ 398   $ 1,521   $ 407
                                               
Segment EBITDA                                        
Application Software $ 633   $ 155   $ 171   $ 200   $ 241   $ 767   $ 258   $ 257   $ 267   $ 265   $ 1,047   $ 277
Network Software   485     134     129     139     149     551     147     153     168     174     642     178
Technology Enabled Products   408     110     122     114     100     445     114     110     112     111     448     107
Total $ 1,526   $ 399   $ 422   $ 453   $ 490   $ 1,764   $ 519   $ 520   $ 547   $ 551   $ 2,136   $ 563

Table 3: Adjusted Revenue Growth                                
(Unaudited)                                          
                                           
Application Software                                          
  2020   2021   2022
  Q1   Q2   Q3   Q4   FY   Q1   Q2   Q3   Q4   FY   Q1
Organic Growth 5 %   1 %   (1) %   (2) %   1 %   3 %   9 %   10 %   10 %   8 %   9 %
Acquisitions/Divestitures 2 %   2 %   12 %   36 %   13 %   39 %   38 %   23 %   %   23 %   1 %
Foreign Exchange %   (1) %   1 %   1 %   %   1 %   2 %   1 %   %   1 %   (1) %
Total Revenue Growth 6 %   2 %   11 %   35 %   14 %   43 %   49 %   34 %   10 %   32 %   9 %
                                           
Network Software                                    
  2020   2021   2022
  Q1   Q2   Q3   Q4   FY   Q1   Q2   Q3   Q4   FY   Q1
Organic Growth 3 %   2 %   %   4 %   2 %   3 %   10 %   16 %   13 %   11 %   16 %
Acquisitions/Divestitures 34 %   24 %   13 %   3 %   17 %   4 %   3 %   1 %   %   2 %   2 %
Foreign Exchange %   %   %   %   %   1 %   2 %   1 %   %   1 %   %
Total Revenue Growth 36 %   26 %   13 %   8 %   19 %   8 %   15 %   19 %   14 %   14 %   18 %
                                           
Technology Enabled Products                                
  2020   2021   2022
  Q1   Q2   Q3   Q4   FY   Q1   Q2   Q3   Q4   FY   Q1
Organic Growth 10 %   7 %   6 %   4 %   7 %   %   %   8 %   16 %   6 %   7 %
Foreign Exchange %   (1) %   %   1 %   %   1 %   1 %   %   %   1 %   %
Total Revenue Growth 9 %   6 %   6 %   5 %   7 %   1 %   1 %   8 %   16 %   7 %   6 %
                                           
Roper Consolidated                                        
  2020   2021   2022
  Q1   Q2   Q3   Q4   FY   Q1   Q2   Q3   Q4   FY   Q1
Organic Growth 6 %   3 %   1 %   2 %   3 %   2 %   6 %   11 %   12 %   8 %   10 %
Acquisitions/Divestitures 9 %   6 %   9 %   16 %   10 %   17 %   17 %   11 %   %   11 %   1 %
Foreign Exchange %   (1) %   %   1 %   %   1 %   2 %   1 %   %   1 %   %
Total Revenue Growth 14 %   9 %   10 %   19 %   13 %   21 %   25 %   23 %   13 %   20 %   11 %

Table 4: Adjusted Segment & Consolidated Financials Reconciliation                    
(Unaudited)                                          
                                               
Application Software Reconciliation ($M)                            
                                               
  2019   2020   2021   2022
  FY   Q1   Q2   Q3   Q4   FY   Q1   Q2   Q3   Q4   FY   Q1
                                               
GAAP Revenue $ 1,573     $ 402     $ 395     $ 444     $ 545     $ 1,786     $ 573     $ 588     $ 600     $ 605     $ 2,367     $ 628  
Purchase accounting adjustment to acquired deferred revenue   1                   3       5       8       1                         1        
Adjusted Revenue $ 1,574     $ 402     $ 395     $ 447     $ 550     $ 1,794     $ 574     $ 588     $ 600     $ 605     $ 2,368     $ 628  
                                               
GAAP Gross Profit $ 1,058     $ 269     $ 272     $ 306     $ 375     $ 1,222     $ 397     $ 407     $ 418     $ 420     $ 1,643     $ 435  
Purchase accounting adjustment to acquired deferred revenue   1                   3       5       8       1                         1        
Adjusted Gross Profit $ 1,058     $ 269     $ 272     $ 309     $ 380     $ 1,230     $ 398     $ 407     $ 418     $ 420     $ 1,644     $ 435  
Adjusted Gross Margin   67.2 %     66.9 %     69.0 %     69.1 %     69.1 %     68.6 %     69.4 %     69.3 %     69.7 %     69.4 %     69.4 %     69.3 %
                                               
GAAP Operating Profit B $ 406     $ 97     $ 113     $ 125     $ 132     $ 468     $ 154     $ 153     $ 164     $ 162     $ 633     $ 172  
Purchase accounting adjustment to acquired deferred revenue & commission expense                     3       3       6             (1)       (1)       (1)       (5)       (1)  
Adjusted Operating Profit $ 406     $ 97     $ 113     $ 128     $ 135     $ 474     $ 153     $ 152     $ 163     $ 161     $ 628     $ 171  
Adjusted Operating Margin   25.8 %     24.2 %     28.7 %     28.6 %     24.6 %     26.4 %     26.7 %     25.9 %     27.1 %     26.5 %     26.5 %     27.2 %
                                               
Adjusted Operating Profit $ 406     $ 97     $ 113     $ 128     $ 135     $ 474     $ 153     $ 152     $ 163     $ 161     $ 628     $ 171  
Amortization   207       53       53       67       98       271       98       98       98       99       393       100  
Depreciation   19       5       5       5       8       22       7       7       6       6       26       6  
Adjusted EBITDA $ 633     $ 155     $ 171     $ 200     $ 241     $ 767     $ 258     $ 257     $ 267     $ 265     $ 1,047     $ 277  
Adjusted EBITDA Margin   40.2 %     38.7 %     43.3 %     44.7 %     43.8 %     42.8 %     44.9 %     43.7 %     44.5 %     43.8 %     44.2 %     44.1 %
                                               
Network Software Reconciliation ($M)                        
                                               
  2019   2020   2021   2022
  FY   Q1   Q2   Q3   Q4   FY   Q1   Q2   Q3   Q4   FY   Q1
                                               
GAAP Revenue $ 889     $ 263     $ 257     $ 266     $ 283     $ 1,069     $ 287     $ 298     $ 316     $ 323     $ 1,224     $ 338  
Purchase accounting adjustment to acquired deferred revenue   10       2       1                   4                                      
Adjusted Revenue $ 899     $ 266     $ 258     $ 266     $ 283     $ 1,073     $ 287     $ 298     $ 316     $ 323     $ 1,224     $ 338  
                                               
GAAP Gross Profit $ 764     $ 218     $ 213     $ 221     $ 236     $ 888     $ 239     $ 250     $ 267     $ 272     $ 1,029     $ 285  
Purchase accounting adjustment to acquired deferred revenue   10       2       1                   4                                      
Adjusted Gross Profit $ 774     $ 220     $ 214     $ 221     $ 236     $ 892     $ 239     $ 250     $ 267     $ 272     $ 1,029     $ 285  
Adjusted Gross Margin   86.1 %     82.9 %     83.1 %     83.1 %     83.3 %     83.1 %     83.3 %     84.0 %     84.6 %     84.4 %     84.1 %     84.2 %
                                               
GAAP Operating Profit B $ 355     $ 91     $ 87     $ 97     $ 107     $ 383     $ 106     $ 111     $ 126     $ 134     $ 477     $ 137  
Purchase accounting adjustment to acquired deferred revenue   10       2       1                   4                                      
Adjusted Operating Profit $ 365     $ 94     $ 89     $ 97     $ 107     $ 386     $ 106     $ 111     $ 126     $ 134     $ 477     $ 137  
Adjusted Operating Margin   40.6 %     35.2 %     34.3 %     36.3 %     37.9 %     36.0 %     36.7 %     37.3 %     40.0 %     41.4 %     39.0 %     40.4 %
                                               
Adjusted Operating Profit $ 365     $ 94     $ 89     $ 97     $ 107     $ 386     $ 106     $ 111     $ 126     $ 134     $ 477     $ 137  
Amortization   112       38       38       40       39       156       39       39       39       39       156       40  
Depreciation   8       2       2       2       2       9       2       2       2       2       8       2  
Adjusted EBITDA $ 485     $ 134     $ 129     $ 139     $ 149     $ 551     $ 147     $ 153     $ 168     $ 174     $ 642     $ 178  
Adjusted EBITDA Margin   53.9 %     50.5 %     50.0 %     52.1 %     52.6 %     51.4 %     51.1 %     51.3 %     53.0 %     54.1 %     52.4 %     52.7 %
                                               
Technology Enabled Products Reconciliation ($M)                        
                                               
  2019 A   2020   2021   2022
  FY   Q1   Q2   Q3   Q4   FY   Q1   Q2   Q3   Q4   FY   Q1
                                               
GAAP Revenue $ 1,095     $ 292     $ 300     $ 292     $ 283     $ 1,167     $ 295     $ 304     $ 316     $ 329     $ 1,243     $ 313  
GAAP Gross Profit $ 652     $ 178     $ 191     $ 179     $ 170     $ 718     $ 180     $ 182     $ 186     $ 188     $ 735     $ 177  
GAAP Gross Margin   59.5 %     60.8 %     63.6 %     61.4 %     60.1 %     61.5 %     60.9 %     59.8 %     58.8 %     57.3 %     59.1 %     56.5 %
                                               
GAAP Operating Profit B $ 370     $ 101     $ 114     $ 105     $ 92     $ 412     $ 106     $ 102     $ 104     $ 103     $ 415     $ 100  
GAAP Operating Margin   33.8 %     34.7 %     37.8 %     36.1 %     32.4 %     35.3 %     35.8 %     33.6 %     33.0 %     31.5 %     33.4 %     31.8 %
                                               
GAAP Operating Profit $ 370     $ 101     $ 114     $ 105     $ 92     $ 412     $ 106     $ 102     $ 104     $ 103     $ 415     $ 100  
Amortization   29       6       6       6       6       24       6       6       6       6       23       6  
Depreciation   9       2       2       2       2       9       2       2       2       2       9       2  
EBITDA $ 408     $ 110     $ 122     $ 114     $ 100     $ 445     $ 114     $ 110     $ 112     $ 111     $ 448     $ 107  
EBITDA Margin   37.2 %     37.6 %     40.6 %     39.0 %     35.3 %     38.2 %     38.6 %     36.3 %     35.5 %     33.9 %     36.0 %     34.3 %
  1. For the year ended December 31, 2019, the Technology Enabled Products segment excludes the results of the divestitures completed in 2019 for (i) the Scientific Imaging businesses, sold to Teledyne on February 5, 2019 and (ii) Gatan, sold to AMETEK on October 29, 2019.
  2. Segment operating profit is before unallocated corporate general and administrative expenses.

Note: Numbers may not foot due to rounding.

About Roper Technologies

Roper Technologies is a constituent of the S&P 500 and Fortune 500. Roper has a proven, long-term track record of compounding cash flow and shareholder value. The Company operates market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets. Roper utilizes a disciplined, analytical, and process-driven approach to redeploy its excess free cash flow toward high-quality acquisitions. Additional information about Roper is available on the Company’s website at www.ropertech.com.

Contact Information:
Investor Relations
941-556-2601
investor-relations@ropertech.com

The information provided in this press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements may include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements may be indicated by words or phrases such as “anticipate,” “estimate,” “plans,” “expects,” “projects,” “should,” “will,” “believes,” “intends” and similar words and phrases. These statements reflect management’s current beliefs and are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include any ongoing impacts of the COVID-19 pandemic on our business, operations, financial results and liquidity, which will depend on numerous evolving factors which we cannot accurately predict or assess, including: the duration and scope of the pandemic, new variants of the virus and the distribution and efficacy of vaccines; any negative impact on global and regional markets, economies and economic activity; actions governments, businesses and individuals take in response to the pandemic; the effects of the pandemic, including all of the foregoing, on our customers, suppliers, and business partners, and how quickly economies and demand for our products and services recover after the pandemic subsides. Such risks and uncertainties also include our ability to identify and complete acquisitions consistent with our business strategies, integrate acquisitions that have been completed, realize expected benefits and synergies from, and manage other risks associated with, the newly acquired businesses, as well as complete any announced divestitures, including obtaining any required regulatory approvals with respect thereto. We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions and the conditions of the specific markets in which we operate, changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, cybersecurity and data privacy risks, including litigation resulting therefrom, risks related to political instability, armed hostilities, incidents of terrorism, public health crises (such as the COVID-19 pandemic) or natural disasters, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, including as a result of the current inflationary environment and ongoing supply chain constraints, environmental compliance costs and liabilities, risks and cost associated with litigation, potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products. Important risks may be discussed in current and subsequent filings with the SEC. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles