Roper Clocks 11% Revenue Growth In Q1 Backed By Enterprise Momentum; Boosts FY22 Guidance

Roper Technologies, Inc ROP reported first-quarter FY22 revenue growth of 11% year-over-year to $1.53 billion, beating the consensus of $1.47 billion.
Sales by segments: Application Software $631.5 million (+9.5% Y/Y), Network Software & Systems $368.7 million (+17.3% Y/Y), Measurement & Analytical Solutions $392.4 million (+6.2% Y/Y) and Process Technologies $134 million (+15.8% Y/Y).
Gross margin contracted 50 bps to 67.5%. Operating profit margin expanded by 40 bps to 31.2%
Adjusted EPS of $3.77 beat the consensus of $3.68.
Adjusted EBITDA margin contracted by 90 bps to 37.8%.
Roper generated $474 million in operating cash flow and held $3.24 billion in cash and equivalents.
CEO Neil Hunn said, "Organic revenue grew 11% in the quarter with broad-based strength across our portfolio of niche-leading businesses. Our enterprise continues to exhibit strong momentum fueled by double-digit software recurring revenue growth and robust product demand. As a result, we are increasing our full-year guidance."
Outlook: Roper saw Q2 adjusted EPS of $3.80 - $3.84, above the consensus of $3.79.
Roper raised the FY22 adjusted EPS guidance from the prior $15.25 - $15.55 to $15.50 - $15.75 versus the consensus of $15.54.
Price Action: ROP shares traded higher by 3.38% at $470.67 on the last check Tuesday.

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