2/2/2022

speaker
Operator
Conference Operator

Good morning. The Roper Technologies conference call will now begin. Today's call is being recorded, and all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be a question and answer session, and further instructions will be given at that time. I would now like to turn the call over to Zach Moxie, Vice President, Investor Relations. Please go ahead, sir.

speaker
Zach Moxie
Vice President, Investor Relations

Good morning, and thank you all for joining us as we discuss the fourth quarter and full year 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 calls. 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 page 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 page three. Unless otherwise noted, we will discuss our results and guidance on an adjusted, non-GAAP, and continuing operations basis. 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 commission expense, a SunQuest trade name and technology asset impairment related to the merger with Klinasys, and lastly, income tax restructuring associated with our pending divestiture of TransCorp. Reconciliations can be found in our press release and in the appendix of this presentation on our website. And now if you please turn to page four, I will hand the call over to Neil. After our prepared remarks, we will take questions from our telephone participants.

speaker
Neil Hahn
President and Chief Executive Officer

Neil. Thanks, Zach, and good morning, everyone. Thanks for joining us. Let's turn to page four and review today's agenda. As usual, we'll start with our quarterly and full year highlights. We will then provide details regarding our segment performance, followed by sharing our first quarter and full year 2022 guidance. At the end, we'll leave plenty of time to address all your questions. Next slide, please. As we turn to page five, the main takeaways for today's call are, first, our strong finish to 21. Second, that we're set up very well for solid 2022 organic performance. And third, we have substantial M&A capacity given our rapid deleveraging last year. As it relates to the fourth quarter and close to 2021, Financial performance was excellent with double-digit growth in revenue, EBITDA, debts, and cash flow. Additionally, because of our strong cash performance last year, our balance sheet is in a great spot as we exceeded our deleveraging plans for the year. As we look towards our 2022 outlook, we have considerable tailwinds that helped set up for a very strong year. Underpinning this outlook is our software recurring revenue growth momentum. Given strong market demand, continued innovation in new products, and an increased shift towards our SaaS solutions, we exit 2021 with robust ARR growth that carries momentum into 22. In addition, our product businesses are experiencing strong demand and record levels of backlog, which provides these businesses with an unprecedented level of in-hand orders and revenue visibility heading into the year. Factoring all this together, we expect 6% to 8% organic revenue growth in 2022. In addition to this organic outlook, our balance sheet is well positioned to allow us to be more meaningfully offensive with M&A in 2022. So, the table is set for us to have a great 2022 and continue our long-term track record of double-digit cash flow compounding. Now, let me turn things over to our CFO, Rob Cresci, to walk through our financial summary. Rob?

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

-

-