Second Quarter 2024 Highlights
Key operating and financial highlights are set forth below. The definitions of our operating and non-GAAP financial measures and reconciliations of non-GAAP financial measures to comparable GAAP measures are included below and in the reconciliation tables at the end of this press release.
| $ in millions | Q2’24 | Q2’23 | YoY Change |
|
Q2’24
Guidance |
| ARR as reported | $2,088 | $1,882 | 11 % |
|
|
| Constant currency ARR | $2,075 | $1,850 | 12 % |
|
$2,050 – $2,065 |
| Operating cash flow | $251 | $211 | 19 % |
|
~$245 |
| Free cash flow | $247 | $207 | 19 % |
|
~$240 |
| Revenue1 | $603 | $542 | 11%2 |
|
$560 – $590 |
| Operating margin1 | 30 % | 23%3 | ~720bps |
|
|
| Non-GAAP operating margin1 | 42 % | 38 % | ~390bps |
|
|
| Earnings per share1 | $0.95 | $0.533 | 78 % |
|
$0.57 – $0.80 |
| Non-GAAP earnings per share1 | $1.46 | $1.16 | 26 % |
|
$1.10 – $1.30 |
| Total cash and cash equivalents | $249 | $320 | (22 %) |
|
|
| Gross debt4 | $2,011 | $2,5455 | (21 %) |
|
|
|
|
|
| 1 | Revenue and, as a result, operating margin, operating profit, and earnings per share are impacted under ASC 606. |
| 2 | In Q2’24, revenue growth was 11% year over year on a constant currency basis. |
| 3 | In Q2’23, operating margin and EPS included a negative impact due to acquisition and transaction-related charges for the ServiceMax acquisition of $12 million or $0.10. |
| 4 | Gross debt excludes unamortized debt issuance costs. |
| 5 | Q2’23 gross debt included a deferred acquisition payment related to ServiceMax of $620 million, which was paid in October 2023. |
