Roper Technologies, Inc.

Good morning. The Roper Technologies conference call will now begin. Today's call is being recorded. All participants will be in listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. I'd now like to turn the call over to Zach Moxie, Vice President, Investor Relations.

Please go ahead. 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 Hahn, President and Chief Executive Officer, Rob Cresci, Executive Vice President and Chief Financial Officer, Jason Conley, Vice President and Chief Accounting Officer, 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 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 second quarter, the difference between our GAAP results and adjusted results consists of the following items. Amortization of acquisition-related intangible assets and purchase accounting adjustments to commission expense. 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? Good morning, everyone, and thanks for joining us.

This morning, I'll provide the highlights, of which there were several for the quarter. Rob will then discuss our P&L performance and balance sheet metrics, And then turn it back to me to review our segment details, our increased outlook for the year, and our concluding comments. As usual, we'll leave plenty of time to talk through all your questions towards the end. Next slide, please. As we turn to page five, we deliver an excellent second quarter with strength across all four of our segments. Specific to the financial metrics, which Rob will detail shortly, revenue, EBITDA, debts, and cash flow all grew north of 20% in the quarter. Also during the quarter, we're encouraged to see the post pandemic recovery gain momentum and broaden at the same time. Specifically, not only did we experience continued improvement across virtually all of our businesses, the strength within each business was broad. Our software businesses, which now make up over 55% of our revenue base, performed very well in the quarter. Specifically, on an organic basis, we grew our application software segment 9% and grew our software businesses within our NSS segment 10%. Across our software businesses, we saw the acceleration of our recurring revenue growth, approximately 80% of our software revenues, from mid-singles to high-singles, and a solid recovery of perpetual license activity. Relative to our product businesses, a very similar pattern. Acceleration and recovery of our consumables revenue sources and very nice ordering patterns for capital equipment type products. In addition, our 2020 acquisition cohort led by Vertifor is performing very well. Importantly, and consistent with our guidance over the last three quarters, we continue to de-lever our balance sheet at a rapid pace, now under four times debt deductible. And finally, before handing things over to Rob, just a great first half to the year. Our teams have performed magnificently, thanks to each and every team member at Roper. Given the great start and the positive momentum across our enterprise, we are once again increasing our full year guidance. Rob, let me hand it over to you.