Roper Technologies, Inc.

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, then zero. You may get in line to ask a question by pressing star, then one on your touch-tone phone. Press star, then two to withdraw your request. And now I'd 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 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. Today we will discuss our results for the quarter primarily on an adjusted non-GAAP basis. During the quarter, ROPA announced an agreement to sell a majority stake in our industrial businesses. Results for these businesses are reported as discontinued operations for all periods presented. Unless otherwise noted, the numbers shown in this presentation are on a continuing operations basis. For the second 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, income tax restructuring expense associated with the pending sale of our industrial businesses, And lastly, we have adjusted our cash flow statement to exclude the cash taxes paid related to our 2021 divestitures. GAAP requires these payments to be classified as operating cash flow items, even though they are related to the divestitures. 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'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. This morning we'll start by reviewing our second quarter highlights and financial results, then we'll review our segment detail and our increased outlook for the year, then get to your questions. Next slide, please. As we turn to page five, the main takeaways for today's call are, first, we had another great quarter of operational and financial performance, and we're increasing our outlook for the year. During the quarter, we entered into an agreement to divest a majority stake of our industrial businesses. And third, we have north of $7 billion of available M&A firepower. Looking at the second quarter, we continue to be pleased with the quality of execution across our enterprise. This quarter is characterized by having very strong order activity and solid organic growth of 11%. Of particular importance, our growth was quite broad-based across our three segments. Consistent with our commentary during the last several quarters, not only did we grow nicely within the quarter, but the quality of the underlying businesses also improved as we saw our software recurring revenue base grow 12% on an organic basis. In addition to our strong software growth, Our product businesses performed very well in the quarter, experiencing very high levels of demand and record levels of backlog. Once we complete the divestiture of the majority interest of our industrial businesses, the quality of our portfolio will be significantly improved across several dimensions. First, we will be meaningfully less cyclical, with about 75% of our portfolio being software and the balance being medical and water products. Second, we'll have higher levels of recurring revenue, with 80% of our software revenue being recurring in nature. Also, a large percentage of our product revenue is reoccurring in nature, such as Neptune's replacement demand and our medical product consumables. And third, we'll be even more asset-light, given a vastly improved working capital profile, one that generates significant increasing amount of cash as we continue to grow. And finally, with the closing of our industrial divestiture, which we anticipate will occur later this year, we'll have north of $7 billion of M&A capacity. We are very active in the M&A markets, but also remain super patient and highly disciplined to ensure optimal deployment of our available capital. We're confident in our ability to deploy this capital wisely, which in turn will further improve both the quality and scale of our enterprise. We are proud of Rob Rating Team's further execution, a very solid quarter. Now let me turn the call to Rob, who will walk through our financial summary. Rob? Thanks, Neil. Good morning, everyone.