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 a conference specialist by pressing star zero. I would now like to turn the call over to Zach Moxie, Vice President, and Investor Relations. Please go ahead.

Good morning, and thank you all for joining us as we discuss the third quarter of 2024 financial results for Roper Technologies. Joining me on the call this morning are Neil Hahn, President and Chief Executive Officer, Jason Conley, Executive Vice President and Chief Financial Officer, Brandon Cross, Vice President and Principal Accounting Officer, and Shannon O'Callaghan, Senior 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. And now, if you 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 primarily on adjusted, non-GAAP, and continuing operations basis. For the third quarter, the difference between our GAAP results and adjusted results consists of the following items. amortization of acquisition-related intangible assets, the financial impacts associated with minority investments, and lastly, transaction and restructuring-related expenses associated with the completed acquisition of Transact Campus. Reconciliations can be found in our press release and the appendix of this presentation on our website. And now, 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?

Thank you, Zach, and thanks to everyone for joining our call. We're looking forward to sharing our third quarter results with you this morning. As we turn to page four, you'll see the topics we'll cover today. I'll start by highlighting our third quarter financial performance. Jason will then go through our financial results in greater detail, review our balance sheet, including our M&A capacity, and discuss our very strong cash flow performance. Then I'll walk everyone through a summary of our most recent acquisition, Transacts Campus, then discuss our segment highlights, and review our increased guidance for the full year. After our closing remarks, we'll open the call for your questions. So let's go ahead and get started. Next slide, please. As we turn to page five, the four key takeaways for today's call are, first, we again delivered another solid quarter of results and expect an acceleration in sequential organic revenue growth heading into Q4. Second, we completed the Transact Campus Acquisition a very attractive business at a very attractive net purchase price. Third, we're raising our FOIA guidance to the high end of our range. And fourth, we continue to be very well positioned relative to executing on our capital deployment strategy. Now, digging a bit deeper into these four key takeaways, we drew total revenue by 13%, organic revenue by 4%, and EBITDA by 10%. Importantly, we grew free cash flow by 15% in the quarter and by 20% on a TTM basis. Operationally in the quarter, Neptune performed slightly better than our expectations as a result of last quarter's mechanical meter production challenges. And also, importantly, we're encouraged to see strong organic enterprise software bookings momentum continue this quarter, growing in the double-digits area up from last quarter's high single-digits bookings growth. Also in the quarter, we completed the acquisition of Transact Campus. Our C4 business is being combined with Transact, and integration activities are well underway. This is yet another very compelling value creation opportunity for our shareholders, which we'll discuss in a bit. Based on strong enterprise margin performance, we're increasing our four-year 2024 depth guidance to the high end of our range. In addition, we're increasing our outlook for total revenue growth to be 13% plus given the addition of our most recent acquisition, Transact Campus. Finally, we're maintaining our approximate 6 percent organic revenue outlook for the year. If we step back a bit, we recognize we just posted back-to-back 4 percent organic growth quarters, although not unexpected, without question unsatisfying. That said, we do see quarterly organic growth momentum improving and expect our Q4 organic growth to sequentially improve given back-to-back quarters of strong enterprise bookings growth, stabilizing freight market conditions, albeit at the bottom, a resolved Neptune operational issue, and NDI returning to growth in Q4. So, with this mostly behind us, we're confident we're seeing a reacceleration of our growth. And finally, we continue to be very active on the M&A markets, an environment that continues to improve, and one where we have a very large pipeline of highly attractive opportunities. We continue to be quite bullish about our ability to be active on the M&A front. So with that, Jason, let me turn the call over to you so you can walk through our quarterly and full-year financial results, as well as our very strong financial position. Jason?