2024 Q3 - Quarterly Results

AccentureReportsThird-QuarterFiscal2024Results Exhibit99 •Newbookingsof$21.1billion,anincreaseof22%inU.S.dollarsand26%inlocalcurrency •GenerativeAInewbookingsofover$900millionforatotalof$2billionfiscalyear-to-date •Revenuesof$16.5billion,adecreaseof1%inU.S.dollarsandincreaseof1.4%inlocalcurrency,withconsultingrevenuesof$8.5billionandmanagedservicesrevenuesof$8.0billion •GAAPoperatingmarginof16.0%,anincreaseof180basispointsoverthethirdquarteroffiscal2023;adjusted1operatingmarginof16.4%,anexpansionof10basispoints •GAAPEPSof$3.04,adecreaseof3%fromthethirdquarteroffiscal2023;adjustedEPSof $3.13,a2%decrease •Quarterlycashdividendof$1.29pershare,anincreaseof15% •Accentureupdatesbusinessoutlookforfiscal2024;nowexpectsfull-yearrevenuegrowthof1.5%to2.5%inlocalcurrency,full-yearforeign-exchangeimpactofnegative0.7%,GAAPEPSof $11.29to$11.44andadjustedEPSof$11.85to$12.00;continuestoexpectGAAPoperatingmarginof14.8%,adjustedoperatingmarginof15.5%andfreecashflowof$8.7billionto$9.3billion NEWYORK;June20,2024—Accenture(NYSE:ACN)reportedfinancialresultsforthethirdquarteroffiscal2024endedMay31,2024. JulieSweet,chairandCEO,Accenture,said,“Ouractionstostaylaser-focusedontheneedsofourclientsareclearinourthirdquarterresults.Weachievedstrongnewbookingsofover$21billion,up22%overlastyear,andcontinuedtoaccelerateourstrategytobethereinventionpartnerofchoice,withanother23clientswithquarterlybookingsofover$100million,bringingthetotalofsuchbookingsto92year-to-date.Wealsoachievedtwosignificantmilestonesthisquarter--with$2billioninGenerativeAIsalesyear-to-dateand$500millioninrevenueyear-to-date--whichdemonstrateourearlyleadinthiscriticaltechnology.Allofthiswhileinvestingatscaleinourbusinesswithanother35acquisitionsor$5.2billionofcapitaldeployedyear-to-date.Iwanttothankthe750,000peopleofAccenturearoundtheworldwhoworkeverydaytodeliver360°valueforourstakeholders.” Revenueswere$16.5billion,adecreaseof1%inU.S.dollarsandanincreaseof1.4%inlocalcurrencycomparedtothethirdquarteroffiscal2023. GAAPoperatingincomewas$2.63billion,comparedto$2.36billionforthethirdquarteroffiscal2023,andoperatingmarginwas16.0%,comparedto14.2%forthethirdquarterlastyear.Adjustedoperatingincomewas$2.71billion,comparedto$2.71billionforthethirdquarteroffiscal2023andadjustedoperatingmarginwas16.4%,comparedto16.3%forthethirdquarterlastyear. 1Adjustedfinancialmeasurespresentedinthisreleasearenon-GAAPfinancialmeasuresthatexcludebusinessoptimizationcostsrecordedinfiscal2024andfiscal2023,andagainrelatedtoourinvestmentinDuckCreekTechnologiesrecordedinfiscal2023,asfurtherdescribedinthisrelease. GAAPdilutedearningspersharewere$3.04,adecreaseof3%from$3.15forthethirdquarteroffiscal2023.AdjustedEPSwere$3.13,adecreaseof2%from$3.19forthethirdquarteroffiscal2023. Newbookingsforthequarterwere$21.1billion,withconsultingbookingsof$9.3billionandmanagedservicesbookingsof$11.8billion. FinancialReview Revenuesforthethirdquarteroffiscal2024were$16.47billion,comparedwith$16.56billionforthethirdquarteroffiscal2023,adecreaseof1%inU.S.dollarsandanincreaseof1.4%inlocalcurrency. Revenuesforthequarterreflectaforeign-exchangeimpactofapproximatelynegative2%comparedwiththenegative1%impactpreviouslyassumed.Adjustingfortheactualforeign-exchangeimpact,thecompany’sguidedrangeforquarterlyrevenueswasapproximately$16.10billionto$16.70billion.Accenture'sthirdquarterfiscal2024revenueswereslightlyabovethemidpointofthisadjustedrange. ▪Consultingrevenuesforthequarterwere$8.46billion,adecreaseof3%inU.S.dollarsand1%inlocalcurrencycomparedwiththethirdquarteroffiscal2023. ▪ManagedServicesrevenuesforthequarterwere$8.01billion,anincreaseof2%inU.S.dollarsand4%inlocalcurrencycomparedwiththethirdquarteroffiscal2023. GAAPdilutedEPSforthequarterwere$3.04,a3%decreasefrom$3.15forthethirdquarteroffiscal2023.Excludinga$0.08and$0.42decreaseforbusinessoptimizationcostsinthethirdquarteroffiscal2024and2023,respectively,anda$0.38increaseforagainonaninvestmentinthethirdquarteroffiscal2023,adjustedEPSwere$3.13,a2%decreasefrom$3.19lastyear.The$0.06decreaseinEPSonanadjustedbasisreflects: ▪a$0.07decreasefromahighereffectivetaxrate;and ▪a$0.01decreasefromhighernoncontrollinginterests;partiallyoffsetby ▪a$0.02increasefromlowersharecount Grossmargin(grossprofitasapercentageofrevenues)forthequarterwas33.4%,flatcomparedwiththethirdquarteroffiscal2023.Selling,generalandadministrative(SG&A)expensesforthequarterwere$2.79billion,or16.9%ofrevenues,comparedwith$2.82billion,or17.0%ofrevenues,forthethirdquarteroffiscal2023. GAAPoperatingincomeforthequarterincreased12%,to$2.63billion,or16.0%ofrevenues,comparedwith $2.36billion,or14.2%ofrevenues,forthethirdquarteroffiscal2023.Adjustedoperatingincomeforthequarterwas$2.71billion,or16.4%ofrevenues,comparedwith$2.71billion,or16.3%ofrevenuesforthethirdquarteroffiscal2023. Thecompany’sGAAPeffectivetaxrateforthequarterwas25.4%,comparedwith22.2%forthethirdquarteroffiscal2023.Theadjustedeffectivetaxrateforthethirdquarteroffiscal2024was25.5%,comparedwith24.0%forthethirdquarteroffiscal2023. GAAPnetincomeforthequar