Roper Technologies, Inc.

Good morning. Thank you all for joining us as we discuss the fourth quarter and full year financial results for Roper Technologies.

We hope everyone's doing well. Joining me on the call this morning are Neil Hunn, President and Chief Executive Officer, Rob Cresci, Executive Vice President and Chief Financial Officer, Jason Conley, Vice President and Controller, and Shannon O'Callaghan, Vice President of Finance. 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. Now, if you'll please turn to slide two. 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 slide three. Today, we will discuss our results for the quarter and year primarily on an adjusted, non-GAAP basis. Reconciliations between GAAP and adjusted measures can be found in our press release and in the appendix of this presentation on our website. For the fourth quarter, the difference between our GAAP results and adjusted results consists of the following items. Amortization of acquisition-related intangible assets, purchase accounting adjustments to acquire deferred revenue, and related commission expense, and lastly, transaction-related expenses for completed acquisition. And now, if you'll please turn to slide four, I'll hand the call over to Neil. After our prepared remarks, we will take questions from our telephone participants. Neil?

Thanks, Zach, and good morning, everyone. Thanks for joining us, and we hope everyone is doing well. For today's agenda, we'll walk through our 2020 financials and operational highlights. Then we'll turn to our 2020 segment detailed results and discuss our 21 segment by segment outlook and end with our 21 enterprise guidance prior to discussing your questions. Next slide, please. As we look back on 2020, it was quite a year. Our businesses performed at a very high level during this period. Revenues grew 3%. with organic revenue declining a single percent. EBITDA also grew 3%, and free cash flow grew 16%. This cash flow performance, 1.7 billion, is just astounding. This is a testament to many things, notably our asset-light business model, the intimacy we have with our customers, and the high level of skill and execution of our field teams. this cash flow is just simply a great result. Perhaps more important, 2020 was a year of forward progress for our company. We exit 2020 as a better company, a company with higher quality revenue streams, a company with improved future innovation prospects, and a company with whose portfolio was enhanced with $6 billion of capital deployment. To this end, We saw our software recurring revenues increase mid single digits in 2020 and were benefited by high levels of retention and acceleration to the cloud. We continue to be benefited by having close, intimate relationships with our customers. Most often our software is mission critical to our customer's operations. In addition, we continue to strategically invest throughout our portfolio during the year. Based on our historical experience, we find times of market disruption the best time to double down on innovation and market investments, which in turn will drive market share gains in the years to come. Finally, we're able to deploy $6 billion to further enhance Roper's group of companies, headlined by our VertiFOR acquisition. So when we look back on 2020, we highlight two key themes. First, we grew. Cash flow increased 16% in the middle of a pandemic. And second, the quality of our enterprise continued to improve during the year. Net-net, we got bigger and better during 2020. Let's turn to the next slide. Over the past five years, we highlight that our revenue grew at a 9% compounded rate, EBITDA at 10%, and cash flow at 13%. We continue to grow and compound through macroeconomic cycles. Also, during the time period, the quality of our enterprise meaningfully improved. We are more software-focused with nearly two-thirds of our EBITDA coming from software with higher levels of recurring revenue. Conversely, we are much less tied to cyclical end markets today, a little over 15% of our portfolio. Given our long-term strategy and these factors, we are a low-risk enterprise. We compound cash flow through cycle and do so with multiple growth drivers across both organic and inorganic fronts. As we look to 21, we will continue our long-term string of revenue and EBITDA and cash flow compounding. So with that, let's turn to the next page and discuss the macro backdrop for 21. As we look to 2021, we are set up for a strong year. We expect revenue and EBITDA will grow well into the double digits, likely in the mid-teens range, with organic revenue growth in the mid single digit plus range. This is on top of growth in 2020. The compounding continues. Breaking it down, our software businesses, both in our application software and network segments, are well positioned heading into 21. These businesses enter the year with momentum from strong retention and recurring revenue gains. They'll be further aided by growth and perpetual license as pipeline and customer activity are anticipated to recover to some extent. Our non-Verathon medical product businesses are expected to return to a more normalized pattern of customer activity as healthcare facilities loosen restrictions, but since 2020 was well below trend, we expect above-trend growth here. Of note, Verathon has a challenging comp. However, their reoccurring revenue base will remain strong given the large volume of capital placements in 2020 and continued growth of their new single-use bronchoscope business. We expect Neptune to recover and grow nicely as their customers, especially in the Northeast US and Canada, gain access to residential locations. We expect our industrial and process tech businesses to continue their quarterly improvements and return to growth after two years of macro headwinds. Finally, 2021 will be meaningfully aided by the contribution from our 2020 cohort of acquisitions. To this end, we continue to work with a very full and high-quality M&A pipeline. We are committed to deleveraging, but we also remain active in building and maturing our pipe. So as I think back over the nearly 10 years I've been with Roper, I cannot think of a better set of tailwinds heading into a year. Clearly, lots to do and lots of execution in front of us, but we have a strong momentum heading into 21. So now let me turn the call over to Rob. Rob?