SARASOTA, Fla., Jan. 29, 2021 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (NYSE: ROP), a leading diversified technology company, reported financial results for the fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020
Fourth quarter GAAP and adjusted revenue increased 8% to $1.51 billion, while organic revenue decreased 2%. GAAP and adjusted gross margin expanded 20 basis points to 64.2% and 64.3%, respectively.
GAAP diluted earnings per share ("DEPS") was $2.41, a 71% decrease, and adjusted DEPS was $3.56, a 5% increase. Prior year GAAP results included a pretax gain of $801 million associated with the divestiture of Gatan.
EBITDA increased 7% to $552 million and EBITDA margin decreased 40 basis points to 36.6%.
Operating cash flow and free cash flow increased 23% to $574 million and $558 million, respectively.
Full Year 2020
Full year GAAP and adjusted revenue increased 3% to $5.53 billion and $5.54 billion, respectively. Organic revenue decreased 1%.
EBITDA increased 3% to $1.98 billion and EBITDA margin was 35.8%, which was flat versus the prior year. GAAP operating cash flow increased 4% to $1.53 billion and adjusted operating cash flow increased 14% to $1.72 billion. Adjusted free cash flow increased 16% to $1.67 billion, representing 30% of adjusted revenue.
"Roper had a great 2020, highlighted by tremendous operational execution and disciplined capital deployment," said Neil Hunn, Roper's President and CEO. "Against the unprecedented backdrop of COVID, we meaningfully enhanced the quality of our enterprise. We saw solid growth in our software recurring revenue while investing for accelerated growth across the broader portfolio. In addition, we took advantage of attractive market conditions to successfully deploy $6 billion of capital toward high-quality software acquisitions. Importantly, our free cash flow grew 16% in 2020."
2021 Outlook and Guidance
"We enter the new year well positioned to continue driving double-digit cash flow compounding for our shareholders," said Mr. Hunn. "Our expanded recurring revenue base exiting 2020 provides a tailwind, and we are seeing improvement in licenses and services pipelines, which should further accelerate growth. Furthermore, our high-margin product businesses are poised to rebound after COVID restrictions meaningfully impacted most of last year. Finally, we expect our 2021 results will be enhanced by contributions from our high-quality software acquisitions completed in the second half of 2020."
Roper expects full year adjusted DEPS of $14.35 - $14.75 with first quarter adjusted DEPS of $3.26 - $3.32.
The Company's guidance excludes the impact of unannounced future acquisitions or divestitures.
About Roper Technologies
Roper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper operates businesses that design and develop software (both license and software-as-a-service) and engineered products and solutions for a variety of niche end markets. Additional information about Roper is available on the Company's website at www.ropertech.com.
