Roper (ROP) 24 Jul 242024 Q2 Earnings call transcript

Good morning. The Roper Technologies Conference Call will now begin. Today's call is being recorded. [Operator Instructions]. I would now like to turn the call over to Zack Moxcey, Vice President of Investor Relations. ahead. go Please

thank the and Technologies. for us. joining Good quarter you XXXX discussed second Roper financial We morning, all results for

Joining Officer; Jason this and me Brandon Finance. Cross, and call Neil and Officer; Callahan, on President Principal Vice President Hunn, of Accounting Chief morning Financial Chief Shannon Executive Conley, are Officer; Vice Vice and President Executive the President

call. issued results. replay morning, we a today's The information release this announcing financial press Earlier our includes press also for release

We accompany are available available have to through the on are prepared call, which slides today's website. webcast also and our

if X. safe our Now turn please you to We begin statement. Page with harbor

our During will risks press make in the our subject we described to call, and are of course forward-looking uncertainties statements, in on release SEC today's and filings. which as page, this

today's to in call of the that listen should You information. context

now will turn non-GAAP continuing we operations And basis. an discuss our Page Today, adjusted to primarily on and please X. results

presentation appendix if please hand And from questions to Neil? website. and in of difference and For consists financial the assets participants. press Reconciliations you our the I'll with to on the we following second Page impacts now X, Neil. over take will intangible the of can turn quarter, GAAP call associated between in After minority adjusted amortization this acquisition-related release our found the investments. results remarks, items: of be results our and prepared our our telephone

with to this thanks to our morning. and Zack, joining results call. looking you, for you sharing Thank our We're second quarter everyone forward

our up results discuss sheet, our second questions. then for open performance. and I'll our strong closing capacity call discuss full review our you through I'll cover quarter in Then for segment M&A remarks, start our the year. we'll guidance highlights the our your and greater flow After can highlighting walk including As see financial we cash our detail, our through the today. X, will turn performance, go Jason we'll to by Page balance topics

ahead let's go started. and get So

please. slide, Next

relative positioned by we double-click bit. we and solid end strategy. XX% As results; and takeaways total with we're EBITDA revenue key a first, to second, third, organic grew delivered another X, outlook; We capital call our are: full bottom XX%, continue To we Page to very on quarter be year deployment the turn three of our by to for points X% by basis expanding today's EBITDA well XX.X%. to executing revenue by XX margins increasing

enterprise increasing we the Importantly, quarter. saw organic bookings during high the with momentum in software bookings digits area good single

basis. in on free quarter grew XX% flow XX%. cash at XX% we cash a and free the flow of came Finally, TTM Also, margins TTM in

to be to we some are notwithstanding active in attractive the XXXX revenue to And about be also we year. total continue on outlook, our our and continued and an maintaining the improve this active confidence challenges production continue discuss outlook a one at Neptune, our environment very front in increasing highly on efficiency guidance we to quite year which that we'll ability be where our a opportunities. our of market, have organic full and for reflecting large pipeline Net-net, the bullish M&A end M&A revenue in low We bit. continues

over So Jason? metrics. to P&L walk sheet with me the turn let call and our balance that, key Jason through to

call. Neil, Thanks, to good morning the and those joining

acquisition X% organic we've Revenue time look provide X, will this growth prior outlined at Entertainment which a Freight will which further. year. year Procare and you Roper. cycle an comps and If we through I an of Neil thank both Freight X% billion, Foundry, higher and Slide historical calls. interest grew $X.XX and your frame. at and update longer is Underpinning and the see prior against on QX, prior the as always, revenue Organic X%, XX% was As of markets, against for in Syntellis. mostly which in software Media was discuss of We both tougher contribution driven we stabilization by than Match signs recurring in and

$XXX positions and was continued bringing a years, of revenue revenue and year-to-date investments through over consistent leadership XX% and flow X recovery. combination has of quite we repeatable QX $X.XX of growth EBITDA Free good XX%. at growth to $X.XX same segment over CAGR $X.XX. million, range Neptune. some prior was organic our margin Loadlink and organic was XX $XXX XX% prior yielded of and capture period Broadly to businesses our that with DAT, QX which at Foundry, these cash points confident our up compounded is above X% our upon guidance tech disciplined XX.X%, EBITDA and outpaced Given production million, year expansion. of innovation delays year Debt at at EBITDA M&A market of growth the over process. XX%. note, XX% Also has our representing will in was are growth basis over

free trailing went to effect in XXXX, into XX%. XXX, tax Adjusting compounded normalized the Section period. at over cash cash is X-year XX-month which a basis, On this CAGR for flow related XX% payments

against billion XX%. performance looking cash flow $X.X Just current flow XX% our prior at free cash grew trailing TTM the of free with of margins XX-month period,

normalize margins second can to we X to to our continue for to turn and or this financial With half XX% we expect of in that, go through XXXX, cash Slide We free more. position. expect the flow

a $X.XX balance QX paid we billion down our million, our on With cash strong the revolver $XXX capacity down by flow, facility. which $X.X billion to brings drawn

future X.Xx, generation BMS debt-to-EBITDA capacity market-leading more when deploy cash at us with to towards with ratio $X billion sits or now coupled provides businesses. which Our net

been the to continue the On half. front, quite into quarter capital we have expect deployment and that the second over second busy

I'll our segment to through to detail Now it guidance. Neil and back over turn talk updated

Thanks, Jason.

single-digit grew Revenue turn were by the to XX% this EBITDA portfolio We area. results. in recurring revenue across review high we of businesses XX.X%. reoccurring performance and let's grew experienced our strong margins revenue here organic segment As total with growing organic Application Page and by X%. X, in Software

with So start Deltek. let's

the government markets. GovCon contractor our the Our and solid contracting, within across quarter. sector bookings momentum their software business engineering We revenue and in solutions architecture, activity construction Deltek private and saw was continued business. serving improved

and sure. benefits Deltek's Deltek as see Dela We're we workflow the to started software Deltek's Importantly, is in applications. Dela to quarter, suite GenAI-powered digital deployed route highlight assistant across throughout last of customer as exciting for tech keen of the efficiency take stack, is integrated the new process core

Turning to Aderant.

well market and focused with enabling receivables the the entry. creating SaaS had efficiencies law business management is The large software perform their great momentum across new quarter firms in billing, platform, meaningful team another value of significant on delivering and needs Our GenAI-powered time incredibly customers areas our GenAI-focused continued capabilities consistently in for innovation. continues and like to in Aderant

the of Frontline dollar again progress Excited grew industries dollar business its tax front serving long-term ARR strong retention reviews of Also, PowerPlan left in quarter financial the strong solution. net planning well team and businesses yet these we to SaaS impressive was fixed and new the the and adoption its and during Vertafore in our with Also making. periodic reviews see PowerPlan, the retention with performed software quarter heavy with our bookings strategic is growth. of in opportunities and encouraged quarter, the and each. each net completed the by

by businesses IT Strata care strong health data innovations the Our in and quarter. also led were

Great go As by the growth-related the during quarter. the converting Since these synergies continued cost the Further of to are combination with creation the in in quite bullish several attention Syntellis it fill about the with initiatives majority we to now with and transaction is forward which has sales value of faced team, bookings now plan. job the of growth their relates cost with the to mirror. rearview synergy the to quarters Syntellis, to come. Strata, continues with implementing very this to substantial vast portion team on look the this with opportunities focused discussing full behind of opportunities the end, long-term completion well to pipeline the the

growth we decision-making to quarter saw data with the As for encouraging normal, in innovations, accelerated for sure. returning customer

a to off the Finally, most Roper to family start. recent Procare, addition strong the companies is

revenue actors X% our the grew Network we in of the is range we trending fact segment. was For for the half in segment quarter Please Matching Freight year, this strikes. through mid-single-digit second recent to our end rider impacted the Software this with work and turn by the Foundry growth upper expect revenue pressure the and the organic to see to in Organic to and experience of impact XX. on businesses continue Page

of market-leading demonstrates this grew Foundry, Excluding Matching the businesses. segment our underlying businesses in and the Freight of group quality mid-singles area, which the

margins to be XX.X%. at strong EBITDA continue

broker organic doing of GenAI-enabled prevention DAT's leading for DAT side, said, with businesses, market matching Notwithstanding freight our adversely market growth. continuing along and expected we're In slightly conditions the for improving tools. levels with is start we and if this, industry bouncing Loadlink, typical details will. freight carrier the the to stable, Roper, this into due and declined the sustainable dig both you the impact long-term bottom, Let's fraud which businesses. and on That both challenging and case, absolutely and that invest appears as the detection

working businesses, successful with welcomed Also, and we Clemens. importantly, career and Jeff DAT chapter team, and Jeff a of CEO has long quarter, him to look ] network deliver and forward next DAT's June we in new software to growth. [ the a the in

this for media turn software powered [ Foundry functionality visual product process roll business. updates continued high-quality quarter, ML let's effects. and to our Now Foundry, the enhancing creative and to innovative entertainment postproduction ] out

to customers the current and pipeline the us Foundry Given declined strikes confidence their expected. quarter the content to to normalized beginning reramp Foundry's more growth the capacity, That Foundry continued return filling as are is impact next production gives related industry year. in which recent said,

business the As continued especially pipeline, execution organically of financial and annuities activity, and segment the balance expansions software portfolio life this annuities By ConstructConnect improved customer renewals, with market. in quarter momentum. grew solid our its this and insurance network mid-singles has bookings businesses. across strong in march market results mentioned, the of solid of

ConstructConnect continues with and power In team. Matt, to Great by the the entire ConstructConnect off GenAI job market solutions. their Buck and addition, estimating take lead and

well increased focus operational in and site Finally, benefiting performed care from MHA rates. and rigor businesses occupancy senior care our with health improvement alternate

well execution, their our solid done. continued of SoftWriters, cadence pharmacy software LTC business

the growth second year, expect in segment. resulted outlook persist For low our we single-digit organic which for of the continued half market conditions difficult freight to the this revenue

our to XX, let's review XX.X%. Verathon. all and segment's turn organic at product an to through an strong had very EBITDA across to basis We'll of please business grew directly with remain its quarter. The Now its long-term long-term margins results. growth. Page the start Revenue growth all here families Verathon the improved and TEP strong team on enable processes exceptional organic and and level underlying in once at and sustainable is again attributable building leadership success executed Verathon the X%

a be relative did a job long-term advantage to remains during Also, meter This Neptune competitive Verathon. team strong both substantial of delivered the of and truly Neptune's our Demand solid another financial success. for continues the with is Neptune results. this year, to record disciplined consistent ultrasonic first quarter which capacity great expectations. and great long-term commissioning focus half are

resolved However, this to progressively on balance this Neptune the of struggled deliver needed the meter year. in manufacturing demand. through mechanical We be the to achieve anticipate efficiency quarter to the

expected Digital, Northern declined or the as quarter. in NDI,

applications to with deliver rate double-digit been precision manufacturers name procedures long-term NDI such precise reminder, medical Their navigation as surgery require our to innovative a that cardiac the area. partners leading robotic has in business. measurement a couple. and NDI As the is care device growth market-leading health world's historical super

Notwithstanding activity, year timing. growth NDI next half year. return to based on this continues customer declining see and However, normalized program we expect is performance, NDI organic the OEM their quarter order to fully NDI this strong and to rate first

IPA and year declined difficult a IDEAS Inovonics against rf Finally, comp. prior

year reminder, quarter these chain businesses ago. a this As recovering from challenges supply started a

due timing growth the quarter in Neptune. Please range, mid-single in hold. our to For slightly expect turn to at Neptune's of the XX. growth singles the us high as of mechanical high expectation which return take with singles below balance the high meter the to We to grow segment the production to year, efficiency to prior do is efficiency TEP fourth Page improvements expect we singles

and year let's the third Now outlook. our guidance full XXXX review quarter discuss

X% organic and Based our we're revenue XX% outlook first momentum for maintaining outlook, on confidence performance, enterprise total in and growth half full year. our our growth our revenue the

of and addition, we're be the year the raising of bottom our In at end full range touch guidance to $XX.XX. of in $XX.XX

range. effective year tax to to XX% full the Our rate assumes guidance in continues XX%

adjusted expect we quarter, debt third to the be $X.XX. For and between $X.XX

same XX, Now questions. We'll open Page with up conclude started. the please your which turn for to we takeaways us with then we'll key and it

quarter results, third, end of capital very Second, delivered a positioned of for full low our the the year. And to we our solid we're First, financial increasing relative deployment are strategy. outlook well we

while the we XX% total quarter, growth revenue EBITDA increasing delivered revenue our For X% XX%. organic and

growing Importantly, as strong, were XX% basis. free cash and XX% basis well. was on flow a XX-month margins quarter a TTM cash on Free in flow the trailing XX%

in we're HSD expansion full year revenue Next, the XX% total of growth organic the maintaining mission of given end enterprise outlook our our guidance. our our for our growth the in of our outlook and X% revenue software and We're year increasing ongoing full confident and revenue seeing criticality bottom base solutions, bookings. recurring

] for position strong a active. deployment. maintain with capital Finally, very over capacity are markets we X [ billion to continue M&A The financial

a pursue with execute about excited our the that unbiased strategy disciplined this have into quite the pipeline year partner We acquisition robust attractive and of future. remain to of this we're and ability over our approach. We opportunities bullish to balance

turn what cash we portfolio by arc vertically and slide, final the as strategic like time remind at Roper a compound we could that of flip our to to long market-leading we'd do your if to [indiscernible] and everyone of application-specific a Now operating you flywheel, oriented businesses. we flow over questions

improve customer operate and how part coach their underlying Roper, Once our We compete structurally sustained of rates a quality. businesses based win and long-term decentralized company environment, organic and on can so businesses is to our growth we a business on intimacy.

centralized flow to compounding in a on add a manner that capital run and deliberate the our next flywheel. we deployment Finally, process-driven business strategy focuses disciplined finding to cash great

together, the flow of in mid-teens arc we Taken area. our compound over cash time a long

for support your So to please you for open your thank the ahead. questions. and and with Operator, that, go interest like continued floor we'd

and of [Operator we this from comes Instructions]. RBC the take will from And Markets. now Dray Capital line first Deane the question, the

this start Maybe meters, can Neptune. platform. correctly, so we And with production at understand I issues efficiency the mechanical an established if it's

So I problem forth? start-up what with maybe share so the would a like issue is this, what it expect to us but is, just not the on remedy be and

Sure, delighted do I question. that. to the appreciate

So what we call. just on to talked the about highlight

First, our So demand at the Neptune with is consistent expectations.

side. either on here static the the issue demand no or mechanical there's So

the the just standing of remarkable year-on-year. the north Second, ultrasonic a business first is team static That a half. job quarter XX% growing did of out capacity in

think So simple, the there's efficiency a ultrasound to bit capacity, production lost mechanical the static standing had capacity and we cause the the and And just was to happen team's get side. of root is there. fact that the a mechanical, we the little the attention and on I up here

countermeasures We prior of to The have in to place. to have breakthrough are get efficiency. level here. We back a of don't levels just have efficiency

year. be in are it's full the resolved and And I should team, this this the said, so the of countermeasures attention like process. got

a new helpful. good All earlier share with impact, issues how the you your right. anything vulnerabilities any CrowdStrike And this businesses? to second any Any week? could That's hear. about fiasco And would there question, be across then

nonevent based on Yes. for the any we at we anticipate on Generally, us. the this And event information time, have a stage, impact at will don't this general have us.

Vruwink. open. And now the of Joe the next from comes line question Their is line

delays past the software. quarter from it of investments enterprise a like maybe at over There contemplate software, seem to application discussion and amount certainly Great. related happening broker customers was doesn't that's in just around fair deal AI others

actually on brought I either are inversely, by hoping customers with was or customers postponements are could from their strategies? new the AI might assist there Roper at to ask what being you companies is in ways AI on just So portfolio I Roper and hearing comment

a Yes. I'll -- anything take of I'll Jason then to first has add. pass this and

of So other the first, it's companies. from been this -- aware certainly, we're the situation

downs of summaries And is or is when our our point. so any did spending we downs do we're of business listening call performance away once IT the And quarter, for an as businesses. unit we in first diverting this this first not what the of our the second quarter intently of none issue in then their customers' call from of written terms other

is. We've started to think about why that

is part of do. we IT spend of a the reason what we're tied in and customers, think teeny portion of I [ critical the we're ] our mission

think very We've that. I much So it's the it much combination in several the And a two. are we're looking about [indiscernible] talked of to offerings. And our to very the us customers product last and quarters. prepared our remarks for doing GenAI

in or it three in there's references think I today's call. four

up opportunity. the there. noted in super And momentum bookings software some single the enterprise so We we're about digits so high quarter, bullish

Yes, across pretty enterprise And widespread. consistent bit, Joe, down we right. strong two this think, there. month I of like talked a Deltek so or were businesses. still our that's number about a Even little ago. was bookings it said, Neil It's was pretty a

Like our issue no. Neil nothing this least an whatsoever, So at calls is point. at indicated this that said on

hear. single-digit to seem on because Yes. positive wanted high does in in to a that I like And great change trend. bookings That's the Okay. follow-up enterprise growth

So Deltek the to like contributed, big movers sounds terms just it of out developments? needle in bookings call other any

little Deltek bit. Joe, down still actually, And was a

So some Strata. what Deltek. at But that's strength highlighted Neil

Aderant good has the well. really like said, to Frontline, building good So has strong. latter some Vertafore, continued saw pipeline been and as I of lookings we saw, be quarters at also QX, part

And comes Julian the next from question of line from Barclays. the Mitchell

the that's kind Neptune one-timers that's year the sequential the you that? give into kind on that years of on [indiscernible] the of EPS of happening third sort if you growth. weighing maybe quarter, into of on much sequential -- weighing is any this color in point wondered there on maybe stronger there Normally, have could the plus of just us couple QX I around last uplift guide. Yes. some a

Yes. Thanks, Julian.

little I think is a bit Neptune.

So the third getting And if -- revenue into efficiencies then those you we year. that the that that push fourth. normally will of in just operational prior some quarter have look just

think we margins going AS think to in down year-over-year I are QX. be

kind XXXX. it the last If watermark, of you high recall of year, QX was, was

expect it to be margins actually we QX. AS So in stronger

So we'll have a strong QX there.

more a in of a is revenue. which I segment, on just little think bit it's half AS obviously our margin, So the of shift than

you sit trending trough That's of like slope really software just going my and that would It the update the helpful. of the there Maybe kind follow-up as piece of you network recovery XX question expect market. sort it's then us be of back to And freight cycle around sounds we next and where months, the in timing we of please? what in of XX, terms think should thought. kind

best you going crack our there. at give I'll on what's

we was -- abnormal the over what's past the sort And consistent that CAT then freight cycle. impacting experienced know, and several all business as quarters. So periods, in freight growth and recent last really -- recession of just then is the the been with

quarter spot This seeing. importantly, improving network stable attrition most volumes the are rejection volumes bit in the slowed bit maybe rates are of anticipated. market to or in maybe Carrier was slightly little market has that The And there's flattish the of more finally, we're shoes little originally green and a terms happening. improving. then expected a And than freight

we're an as here. shoots outlook improvement That's bake in happening but call we're see sort so for there's some along And mentioned, and the until great balance the in we're we actually of our I going year, to our not it, bottom. of the balancing, maybe bouncing

the question True from the from next line of Terry comes And Tillman Securities.

follow-up. And seasonality question, that's of in half kind there But Deltek a bookings weakness of be going I you of still positive that bookings? pipeline is on on. have into just think I Is Aderant. the did where business. It's turn volatility of second and to strengthening that going that in of dynamics some a the and visibility on The it's of GovCon assume then the and to related some of the large side, for kind can terms some Deltek multi-parter. It's terms first

And first of part some unlock question I on had this FedRAMP potentially the is If large mistaken, a second follow-up. then deals? could I wasn't FedRAMP. And

Yes.

of both those. So we'll try to take

Deltek not really So a seasonal business. is

side, clear. about consistent. XX% services The got professional the spending or we're a parts professional as the maybe Deltek customers side, slowdown of two is on if about been the so the the it's been business, little in GovCon or solid, engineers, particularly Just architects, the The what's construction government robust, bit very sluggishness driven of the XX% contractors. slowness is markets, services has just largest GovCon, last months enterprise, longer uncertainty market. the sort end XX

quarter, seen activity, to there little second GovCon the which a Deltek super it's that. was bookings encouraging In we've of quarters activity, see bit was on been enterprise X side, since the

not there And also to election At that's really been. of isn't tied so an historically, impact the part and -- business. this least there's

operation some in having matter the has really just spending government also just on. the been It it's spending outlook. what It is is government the of So stability doesn't government spending uncertain.

mean have FedRAMP, side I moderate on is, the the in beginning, think, the it's very is like the very, on of for SaaS a GovCon the migration bottom the and first just which today, of I complied FedRAMP business, definitive inning. right you're the unlock company

are from expansion and to we cycle question. I it Where just just moving opportunities? customer a in own just cloud. struck and by guess I've optimism is cloud. unlocking And upgrade moving our of that kind Aderant the And about research, base sales primary been follow-up to

share of got of the on the COVID, a to context, migration gone share large and market market that that the applications. generative for market net period to Yes. most is it's has north tools the we mean the from cloud. good the you years just with one. SaaS we've last decided gain -- one just X around done right? start market Aderant, market to list X company just and just XX% the net gain AI continue so multiple share I has to wanted of software They're moment that listening factors, momentum. a for large of winners firms been law over was and gain, a migration everybody of at firms, the lot of market time to use share leading Their to give the the So share advent they on-premise. law And the

So just second journey barrier. is on-premise The inning the migration beginning is product in third cloud. the and and a to that from or we've got and enabled now. customers this lift shift multiyear of our the we're Maybe

a dozen over conversions There's X X few that's or happened last the years.

So we're really early. obviously last, it, in picked still still X But plenty there. call of up yes, It's the running quarters.

question from And from Melius Research. the next Scott Davis comes

there I'm it but you it's application Is software years. guess, Has getting some of price say couple in a markets? specifically gotten well. software, get the harder I kind pretty to a little harder I as price little those year-over-year? last But thinking had of to get price network know to increases big

would businesses gotten in couple over the we growth price years. software actually algorithm It's our price last say is outsized Scott, part we we've of the talked of not about. that

of and tiny a and going look the application a cross-sell and to add bit attrit ARR that's total then been the both of teeny little business. rigs we're to to base, right, the the network software sort matter, the normal above just on There's maybe a is going As on offset side. upsell to and of get amount new general growth

were historically. we've the to -- forward it's going normal wasn't been benefit lap because don't case, pricing in extent it our We through big normalize the period. So to a that to have

unlocking that get in enthusiasm fair pretty quarter, your it on about of level Is kind last takeaway Okay. my high-quality being to was same the markets is -- deals All say high. right. enthusiasm M&A this to color. you're then done good year? able was still And of That's

There's the ago -- quarter pent-up talked market a Very an we commentary much for amount The of amazing so. the demand opportunities. today. same exact commentary about was is just

I it's a case. believe think that is not first half anything is the time, the the deals that's value were below the in be which assets years thing of happened to going market years. really reality to still about Interesting in asset compressed said We [indiscernible] or last the first on in valuations. half couple to binary in I X.X super and did based X leading quality. face sponsors in trade the deals

of yield opportunities valuation that that, say and the then Janet the that more that being dynamic combination and just and reasonable received so the encouraged should we valuations. by we're but and super the And higher her both being much volume of with. pursuits, more interest rates We'll sponsors by I'd our around demand, well see is we're see. that's proactive proprietary are Final engaging thing team in pent-up

the the line Giordano question of comes TD next I And mean from -- Joe from Cowen. Giordano

remind the mechanical? you like margin that where me today. difference of and the today, products where is And material mix And between Can between ultrasonic Neptune, at any see that there you is going? like two

Yes.

we today, able believe around to terms profile being have a our margin market mix, we lot reasons profile. static, and away low benefit flow to they're static in going static. to advised is So advantage for to of on we've the competitive with been specifics high by There's the to product leader Neptune the of today, be most sort and rates. both stay from the of a similar-ish declaratively mix margin of the Relative accurately

And -- it -- Deltek maybe of on too, think any the there? from you I a those on it then And kind but like ConstructConnect, what of are construction level, businesses? about starts more Okay. if little just getting but good activity but starts bit at seems are maybe is a and still like like getting the and a that are the of but weaker, side, implications little seeing Like levels. like good seems bit things we're even worse institutional like

Yes.

pipeline remains activity the is is on strong. strong. construction The strong. vertical, bookings So Their Deltek Deltek the side, activity

very They're not the is much you, largest the services. base customer our Now not mind the They're the side. enterprise. customers, Deltek on S&M

gigantic maybe market. I there's unbended mean So -- a

contracts these that, of looking smaller of So look to little to the headwinds bit slowdown when would the using efficiency, they help even our do software in some are a of pressure. might maybe for which with

enabling done their choice that on on been R&D a has to bookings that At and building outcomes they at their job the hear making business manufacturers. way strategy old-fashioned focus sort X the there. going of get I strategy has better -- product ConstructConnect. it's the and They've choices this around just execution of trade generation changes, contractors changes, lead go-to-market to and demos They're great and product led the really double-digit ConstructConnect, we've been quarters good just to think

there And that's so just execution here. outcome improved quite been to it's good old-fashioned led

the And Steve Tusa question from from comes next JPMorgan.

Good morning.

front? XQ side, And what's your there? growth some accelerating it orders even accelerating high that's half. translate the because you're in And that doesn't what's believe just near to other beyond these of Neptune catch-up to total backlog more the And maybe when of a into the there second seems on your secondarily, Just XX% term software, kind fulfilling growth It I second was reported? On book-to-bill or some Is if mentioned orders? quite the status on that in that revenues the imply you then software, look in half. single-digit organic bookings. shouldn't was like color

going talked mean X coming So X had quarters, And almost year bookings, was into backlog we so still on the into about backlog extremely the right? year. I quarters of we the strong, or Neptune X

in we way businesses those the ConstructConnect on guide enough working through outside have answer that's because bookings, fourth it's be so and your And -- the then what been for business contract Loadlink and I be strong, around revenue. year. sure. define the continue enterprise value of so then DAT, orders are and And been to -- our quarter that to up continue is of SMB-type all next this software -- And we've question to year. for to annual those are guess, more setting then

booking then and on it when the on the revenue, the the you've between the booking it's vary. converts of Depending depending company, award. got and when time the can happens -- that delay of to a nature So

AS And so the current but we then does the year, it and into think support doesn't 'XX. half second revenue going certainly it always translate is in be in to into where help

right. subscription the vast the Scott, That's related. bookings SaaS if is thing on of bookings the are software only Jason, just to I'd or majority, add majority the not And

months even hard left in the impact go. left months half second quarter it's to the of number So you've the to year, bookings got in X or second just

is really So AR it of for the launch in point about 'XX.

it And clarify, to is yes, organic. just

That's right.

next Individual question Alexander from Blanton the And Investor. comes

It's I to Neptune on that Clear back Asset wasn't want answer production gave you individual before. really I to go investor. issue. clear not Harbor Management, the the really an

So by perhaps you some you the said of think it third quarter you the of that? can be do elaborate make some quarter. so in resolved Could you clarifying on nature you the production the that end to that problem? would holdup fourth expected comments. I or What's And catch-up the

I'll do best. my

production makes was So half. you add of the commissioned The the first two the to meter which makes meter, we've mechanical Neptune static static sense that level capacity, forms meter. as had a know, in highest meters, and successfully

meet to the in to needed existing news meter essentially great below we there daily not countermeasure. Alabama. the demand be the that factory being the that's efficiency, in efficiency was I level to and this achieved. So That's have have levels needed, breakthrough previous customer what's ever a of where on process efficiency to deliver but that side, a just it we production before, capacity The would was is mechanical that's commitments. mentioned returning not get that of of Again, the rate

quarter, beginning the to the the expect third so and at moment, for teams the contrasting itself year. this resolve expect hope we are resolve the and And of itself and fully we to balance in it's

to My question really prior was it deviate what levels? from caused

factory got is got side. you've the the mechanical efficiency that the focus we efficiency focused think distracted or on -- in daily or and team first half We it's production lost the think just capacity that the on on cause super management adding of static root a was

the But at. problem. production getting is efficiency what I'm right. what That's the of nature Well,

Alex. We're want to delighted you about take more this if off-line talk detail. to

Thank sir. you. This hand now Moxcey. the back session. our will I call Please go to over Zack concludes ahead, Q&A

Thank for earnings look with joining call. today. We during you, us you to speaking everyone, our forward next

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