Calix, Inc

Good morning. The Roper Technologies conference call will now begin. Today's call is being recorded. All participants will be in a 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 Moksy, Vice President of Investor Relations. Please go ahead.

Good morning, and thank you all for joining us as we discuss the fourth quarter and full year 2024 financial results for Roper Technologies. Joining me on the call this morning are Neil Hunn, 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'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 filing. 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 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. transaction-related expenses associated with completed acquisitions, a charge related to the settlement of the Power Plan 2020 litigation matter, and lastly, financial impacts associated with our minority investments. Reconciliations can be found in our press release and in the appendix of this presentation on our website. Now, if you please turn to page four, I'll hand the call over to Neil. After our prepared remarks, we'll 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 fourth quarter and full-year results with you this morning. As we turn to page four, you'll see the topics we plan to cover today. We'll start by highlighting our strong fourth quarter and full year 2024 financial and operating performance. We'll then go through results in greater detail, review our balance sheet, including our M&A capacity, and discuss our very impressive cash flow growth and performance. Then we'll discuss our segment highlights and introduce our 2025 and Q1 guidance. After our closing remarks, we'll open up the call for your questions. So let's go ahead and get started. Next slide, please. As we return to page five, we want to highlight the three key takeaways for today's call. First, our cash flow growth was strong, once again demonstrating our consistent and durable compounding capability. Second, we entered 2025 with improving momentum. And third, we now have over $5 billion of acquisition firepower at a time when the M&A markets are becoming increasingly more attractive. Now as it relates to our cash flow compounding capability, 2024 was another example of how our model works. We grew revenue 14% in the year, which was nicely balanced between organic and inorganic contributions, and deployed $3.6 billion towards market-leading vertical software businesses, headlined by our acquisitions of ProCare and Transac Campus. Of note, our 2024 cohort of acquisitions not only meet all our historical criteria, but also meets our higher growth and higher returns ambitions. As a result, we grew free cash flow 16% for the year, topping $2 billion for the first time in our history, with free cash flow margins of 32%, another great year in our long history of cash flow compounding. As we look to 2025, we're excited to talk through the positive momentum we're experiencing. First, we're seeing accelerating demand for our mission-critical solutions broadly across our businesses. Specifically, throughout 2024, our enterprise bookings accelerated, ending in the high teens growth area in Q4. This bookings momentum, combined with consistently high gross and net retention, supports the continued growth and expansion in the high singles area for a $4.6 billion base of software recurring and reoccurring revenues. Given this, we're initiating our 2025 total revenue guide to be north of 10%, with organic revenue growth in the 6% to 7% range, with adjusted depths between $19.75 and $20. On the capital employment front, our discipline approach will greatly benefit our company and our shareholders this year. Specifically, we now have over $5 billion of available M&A firepower. This is particularly important given the backdrop of the current M&A market, one that is poised for high levels of deal activity over the next couple of years, and more on this later. Great year, team, and look forward to seeing you at our leadership meeting next week. I'd like to ask everyone to turn to page six, where we'll discuss our long-term growth algorithm. In March of 23, we concluded our first ever Investor Day with the components of our long-term mid-teens cash flow growth algorithm, as you see here on the left. As you compare our 24 performance on the right-hand side to this, You'll note we're right in line with our strategy, namely posting 14% revenue growth, 41% core margin leverage, and adding 800 basis points of growth through our capital deployment capability. This all yields 16% cash flow growth. Importantly, 2023's performance was quite similar with 15% revenue growth, solid operating leverage, and consistently good cash flow growth. We execute our algorithm by running a dual threat offense, namely, first, driving consistent and improving levels of leveraged organic growth, and second, deploying the enterprise's capital towards the best ideas that we consistently cultivate and execute upon. Importantly, as we do this, we not only grow, but we improve the underlying quality of our enterprise and our portfolio across several dimensions, including growth, the level of recurring revenue, and asset intensity. In short, this is how our model works. 2024 is no exception, a year where our say-do ratio was quite high, and importantly, we have strong momentum heading into 2025. So with that, Jason, let me turn the call over to you so you can walk through our quarterly and full year results. Jason?