Roper Technologies, Inc.: Transition to Cloud and SaaS-based Offerings!

Roper Technologies had a robust start to the year, with double-digit growth in revenue, EBITDA, adjusted DEPS, and free cash flow noted for Q1, which has spurred an increased full-year outlook. The Q1 report highlighted the completion of another milestone for the company – the acquisition of Procare Solutions, a provider of software and integrated payments for the early childhood education market. The total revenue and organic revenue increased by 14% and 8% respectively while EBITDA saw a 16% growth, with EBITDA margin expanding by 60 basis points to 40.2%. This substantial performance beats previously set expectations, with free cash flow witnessing a 15% year-over[1]year growth resulting in free cash flow margins of 31%. Moreover, the company also accomplished robust EBITDA incremental margin of 44%, translating into EBITDA margin of 40.2% and representing a 60 basis point expansion. Stock strength is signified with a decent 13% DEPS growth to $4.41, outperforming the guidance range.