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Published: 2022-06-30 07:06:17 ET
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EX-99.1 2 a2022newsegmentstructure.htm EX-99.1 Document

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Roper Technologies Announces Updated Segment Structure

Sarasota, Florida, June 30, 2022 ... 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.



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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.

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Table 1: GAAP Segment Financials ($M)
(Unaudited)
2019 A
202020212022
FYQ1Q2Q3Q4FYQ1Q2Q3Q4FYQ1
Revenue
Application Software$1,573 $402 $395 $444 $545 $1,786 $573 $588 $600 $605 $2,367 $628 
Network Software889 263 257 266 283 1,069 287 298 316 323 1,224 338 
Technology Enabled Products1,095 292 300 292 283 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 Software764 218 213 221 236 888 239 250 267 272 1,029 285 
Technology Enabled Products652 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 Software355 91 87 97 107 383 106 111 126 134 477 137 
Technology Enabled Products370 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 $409 
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Table 2: Adjusted Segment Financials ($M)
(Unaudited)
2019 A
202020212022
FYQ1Q2Q3Q4FYQ1Q2Q3Q4FYQ1
Revenue
Application Software$1,574 $402 $395 $447 $550 $1,794 $574 $588 $600 $605 $2,368 $628 
Network Software899 266 258 266 283 1,073 287 298 316 323 1,224 338 
Technology Enabled Products1,095 292 300 292 283 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 Software774 220 214 221 236 892 239 250 267 272 1,029 285 
Technology Enabled Products652 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 Software365 94 89 97 107 386 106 111 126 134 477 137 
Technology Enabled Products370 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 Software485 134 129 139 149 551 147 153 168 174 642 178 
Technology Enabled Products408 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 

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Table 3: Adjusted Revenue Growth
(Unaudited)
Application Software
202020212022
Q1Q2Q3Q4FYQ1Q2Q3Q4FYQ1
Organic Growth5 %1 %(1)%(2)%1 %3 %9 %10 %10 %8 %9 %
Acquisitions/Divestitures2 %2 %12 %36 %13 %39 %38 %23 %— %23 %1 %
Foreign Exchange— %(1)%1 %1 %— %1 %2 %1 %— %1 %(1)%
Total Revenue Growth6 %2 %11 %35 %14 %43 %49 %34 %10 %32 %9 %
Network Software
202020212022
Q1Q2Q3Q4FYQ1Q2Q3Q4FYQ1
Organic Growth3 %2 %— %4 %2 %3 %10 %16 %13 %11 %16 %
Acquisitions/Divestitures34 %24 %13 %3 %17 %4 %3 %1 %— %2 %2 %
Foreign Exchange— %— %— %— %— %1 %2 %1 %— %1 %— %
Total Revenue Growth36 %26 %13 %8 %19 %8 %15 %19 %14 %14 %18 %
Technology Enabled Products
202020212022
Q1Q2Q3Q4FYQ1Q2Q3Q4FYQ1
Organic Growth 10 %7 %6 %4 %7 %— %— %8 %16 %6 %7 %
Foreign Exchange— %(1)%— %1 %— %1 %1 %— %— %1 %— %
Total Revenue Growth9 %6 %6 %5 %7 %1 %1 %8 %16 %7 %6 %
Roper Consolidated
202020212022
Q1Q2Q3Q4FYQ1Q2Q3Q4FYQ1
Organic Growth 6 %3 %1 %2 %3 %2 %6 %11 %12 %8 %10 %
Acquisitions/Divestitures9 %6 %9 %16 %10 %17 %17 %11 %— %11 %1 %
Foreign Exchange— %(1)%— %1 %— %1 %2 %1 %— %1 %— %
Total Revenue Growth14 %9 %10 %19 %13 %21 %25 %23 %13 %20 %11 %

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Table 4: Adjusted Segment & Consolidated Financials Reconciliation
(Unaudited)
Application Software Reconciliation ($M)
2019202020212022
FYQ1Q2Q3Q4FYQ1Q2Q3Q4FYQ1
GAAP Revenue$1,573$402$395$444$545$1,786$573$588$600$605$2,367$628
Purchase accounting adjustment to acquired deferred revenue1 — — 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 revenue1 — — 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 Margin67.2 %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 Margin25.8 %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
Amortization2075353679827198989899393100
Depreciation195558227766266
Adjusted EBITDA$633$155$171$200$241$767$258$257$267$265$1,047$277
Adjusted EBITDA Margin40.2 %38.7 %43.3 %44.7 %43.8 %42.8 %44.9 %43.7 %44.5 %43.8 %44.2 %44.1 %
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Network Software Reconciliation ($M)
2019202020212022
FYQ1Q2Q3Q4FYQ1Q2Q3Q4FYQ1
GAAP Revenue$889$263$257$266$283$1,069$287$298$316$323$1,224$338
Purchase accounting adjustment to acquired deferred revenue10 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 revenue10 2 1 — — 4 — — — — — — 
Adjusted Gross Profit$774$220$214$221$236$892$239$250$267$272$1,029$285
Adjusted Gross Margin86.1 %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 revenue10 2 1 — — 4 — — — — — — 
Adjusted Operating Profit$365$94$89$97$107$386$106$111$126$134$477$137
Adjusted Operating Margin40.6 %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
Amortization112383840391563939393915640
Depreciation822229222282
Adjusted EBITDA$485$134$129$139$149$551$147$153$168$174$642$178
Adjusted EBITDA Margin53.9 %50.5 %50.0 %52.1 %52.6 %51.4 %51.1 %51.3 %53.0 %54.1 %52.4 %52.7 %
Technology Enabled Products Reconciliation ($M)
2019 A
202020212022
FYQ1Q2Q3Q4FYQ1Q2Q3Q4FYQ1
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 Margin59.5 %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 Margin33.8 %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
Amortization296666246666236
Depreciation922229222292
EBITDA$408$110$122$114$100$445$114$110$112$111$448$107
EBITDA Margin37.2 %37.6 %40.6 %39.0 %35.3 %38.2 %38.6 %36.3 %35.5 %33.9 %36.0 %34.3 %
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A.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.

B.Segment operating profit is before unallocated corporate general and administrative expenses.

Note: Numbers may not foot due to rounding.
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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


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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.

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