- New bookings of $21.6 billion, the company's second-highest
ever
- Generative AI new bookings of over $600 million in the
quarter for a total of $1.1 billion through the first half of the
fiscal year
- Revenues of $15.8 billion, flat in both U.S. dollars and
local currency, with consulting revenues of $8.0 billion and
managed services revenues of $7.8 billion
- GAAP operating margin of 13.0%, an increase of 70 basis
points over the second quarter of fiscal 2023; adjusted1
operating margin of 13.7%, compared to 13.8% last year
- GAAP EPS of $2.63, an increase of 10% over the second
quarter of fiscal 2023; adjusted EPS of $2.77, an increase of
3%
- Free cash flow of $2.0 billion
- Quarterly cash dividend of $1.29 per share, an increase of
15%
- Accenture updates business outlook for fiscal 2024; now
expects full-year revenue growth of 1% to 3% in local currency;
GAAP operating margin of 14.8%; adjusted operating margin of 15.5%;
GAAP EPS of $11.41 to $11.64; and adjusted EPS of $11.97 to
$12.20
Accenture (NYSE: ACN) reported financial results for the second
quarter of fiscal 2024 ended February 29, 2024.
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Q2 FY24 Earnings Infographic (Graphic:
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Julie Sweet, chair and CEO, Accenture, said, “In an uncertain
macro environment, we remain the trusted partner to our clients for
reinvention with a record 39 clients with quarterly bookings of
over $100 million. We also extended our early lead in generative AI
with $1.1 billion in new bookings in the first half of the year.
And we are investing to serve the needs of our clients and expand
our growth opportunities with $2.9 billion of capital deployed in
the first half in strategic acquisitions. Thank you to our more
than 740,000 people around the world for your dedication to
delivering value for our clients.”
Revenues were $15.8 billion, and were flat in both U.S. dollars
and local currency compared to the second quarter of fiscal
2023.
GAAP operating income was $2.05 billion, compared to $1.94
billion for the second quarter of fiscal 2023, and operating margin
was 13.0% compared to 12.3% for the second quarter last year.
Adjusted operating income was $2.16 billion, compared to $2.19
billion for the second quarter of fiscal 2023 and adjusted
operating margin was 13.7%, compared to 13.8% for the second
quarter last year.
1Adjusted financial measures presented in
this release are non-GAAP financial measures that exclude business
optimization costs recorded in fiscal 2024 and fiscal 2023, as
further described in this release.
GAAP diluted earnings per share were $2.63, an increase of 10%
over $2.39 for the second quarter of fiscal 2023. Adjusted EPS were
$2.77, an increase of 3% over $2.69 for the second quarter of
fiscal 2023.
New bookings for the quarter were $21.6 billion, with consulting
bookings of $10.5 billion and managed services bookings of $11.1
billion.
Financial Review
Revenues for the second quarter of fiscal 2024 were $15.80
billion, compared with $15.81 billion for the second quarter of
fiscal 2023, and were flat in both U.S. dollars and local currency
growth. Revenues were slightly above the midpoint of the company's
guided range of $15.40 billion to $16.00 billion. The
foreign-exchange impact for the quarter was approximately negative
0.5%, which was consistent with the assumption provided in the
company's first quarter earnings release.
- Consulting revenues for the quarter were $8.02 billion, a
decrease of 3% in both U.S. dollars and local currency compared
with the second quarter of fiscal 2023.
- Managed Services revenues for the quarter were $7.78 billion,
an increase of 3% in both U.S. dollars and local currency compared
with the second quarter of fiscal 2023.
GAAP diluted EPS for the quarter were $2.63, a 10% increase over
$2.39 for the second quarter of fiscal 2023. Excluding a $0.14 and
$0.30 decrease for business optimization costs in the second
quarter of fiscal 2024 and 2023, respectively, adjusted EPS were
$2.77, a 3% increase over $2.69 last year. The $0.08 increase in
EPS on an adjusted basis reflects:
- a $0.06 increase from higher non-operating income; and
- a $0.06 increase from a lower effective tax rate;
partially offset by
- a $0.03 decrease from lower operating results; and
- a $0.01 decrease from higher noncontrolling interests.
Gross margin (gross profit as a percentage of revenues) for the
quarter was 30.9% compared to 30.6% in the second quarter of fiscal
2023. Selling, general and administrative (SG&A) expenses for
the quarter were $2.72 billion, or 17.2% of revenues, compared with
$2.65 billion, or 16.7% of revenues, for the second quarter of
fiscal 2023.
GAAP operating income for the quarter increased 5%, to $2.05
billion, or 13.0% of revenues, compared with $1.94 billion, or
12.3% of revenues, for the second quarter of fiscal 2023. Adjusted
operating income for the quarter was $2.16 billion, or 13.7% of
revenues, compared with $2.19 billion, or 13.8% of revenues for the
second quarter of fiscal 2023.
The company’s GAAP effective tax rate for the quarter was 18.4%,
compared with 20.4% for the second quarter of fiscal 2023. The
adjusted effective tax rate for the second quarter of fiscal 2024
was 18.8%, compared with 20.4% for the second quarter of fiscal
2023.
GAAP net income for the quarter was $1.71 billion, compared with
$1.55 billion for the second quarter of fiscal 2023. Adjusted net
income for the quarter was $1.80 billion, compared with $1.74
billion for the second quarter of fiscal 2023.
Operating cash flow for the quarter was $2.10 billion, and
property and equipment additions were $110 million. Free cash flow,
defined as operating cash flow net of property and equipment
additions, was $1.99 billion. For the same period last year,
operating cash flow was $2.33 billion; property and equipment
additions were $108 million; and free cash flow was $2.22
billion.
Days services outstanding, or DSOs, were 43 days at February 29,
2024, compared with 42 days at both August 31, 2023 and February
28, 2023.
Accenture’s total cash balance at February 29, 2024 was $5.1
billion, compared with $9.0 billion at August 31, 2023.
New Bookings
New bookings for the second quarter of fiscal 2024 were $21.58
billion, a 2% decrease in both U.S. dollars and local currency from
the second quarter of fiscal 2023.
- Consulting new bookings were $10.52 billion, or 49% of total
new bookings.
- Managed Services new bookings were $11.06 billion, or 51% of
total new bookings.
Revenues by Geographic Market2
Revenues by geographic market were as follows:
- North America: $7.38 billion, flat in both U.S. dollars and
local currency compared with the second quarter of fiscal
2023.
- EMEA: $5.60 billion, an increase of 1% in U.S. dollars and a
decrease of 2% in local currency compared with the second quarter
of fiscal 2023.
- Growth Markets: $2.82 billion, a decrease of 1% in U.S. dollars
and an increase of 6% in local currency compared with the second
quarter of fiscal 2023.
Revenues by Industry Group
Revenues by industry group were as follows:
- Communications, Media & Technology: $2.65 billion, a
decrease of 8% in U.S. dollars and 7% in local currency compared
with the second quarter of fiscal 2023.
- Financial Services: $2.81 billion, a decrease of 6% in both
U.S. dollars and local currency compared with the second quarter of
fiscal 2023.
- Health & Public Service: $3.33 billion, an increase of 10%
in both U.S. dollars and local currency compared with the second
quarter of fiscal 2023.
- Products: $4.76 billion, an increase of 1% in U.S. dollars and
flat in local currency compared with the second quarter of fiscal
2023.
- Resources: $2.24 billion, an increase of 3% in U.S. dollars and
4% in local currency compared with the second quarter of fiscal
2023.
2Effective September 1, 2023, we revised
the reporting of our geographic markets for the movement of our
Middle East and Africa market units from Growth Markets to Europe,
and the Europe market is now referred to as our EMEA (Europe,
Middle East and Africa) geographic market.
Returning Cash to
Shareholders
Accenture continues to return cash to shareholders through cash
dividends and share repurchases.
Dividend
On February 15, 2024, a quarterly cash dividend of $1.29 per
share was paid to shareholders of record at the close of business
on January 18, 2024. These cash dividend payments totaled $813
million.
Accenture plc has declared another quarterly cash dividend of
$1.29 per share for shareholders of record at the close of business
on April 11, 2024. This dividend, which is payable on May 15, 2024,
represents a 15% increase over the quarterly dividend rate of $1.12
per share in fiscal 2023.
Share Repurchase Activity
During the second quarter of fiscal 2024, Accenture repurchased
or redeemed 3.8 million shares for a total of $1.3 billion,
including approximately 2.2 million shares repurchased in the open
market.
Accenture’s total remaining share repurchase authority at
February 29, 2024 was approximately $4.6 billion.
At February 29, 2024, Accenture had approximately 629 million
total shares outstanding.
Business Outlook
Third Quarter Fiscal 2024
Accenture expects revenues for the third quarter of fiscal 2024
to be in the range of $16.25 billion to $16.85 billion, or negative
1% to positive 3% in local currency, reflecting the company’s
assumption of an approximately negative 1% foreign-exchange impact
compared with the third quarter of fiscal 2023.
Fiscal Year 2024
Accenture’s business outlook for fiscal 2024 continues to assume
that the foreign-exchange impact on its results in U.S. dollars
will be flat compared with fiscal 2023.
For fiscal 2024, the company now expects revenue growth to be in
the range of 1% to 3% in local currency, compared to 2% to 5%
previously.
Accenture now expects GAAP operating margin for fiscal 2024 to
be 14.8%, compared to a range of 14.8% to 15.0% previously, an
expansion of 110 basis points from fiscal 2023; and adjusted
operating margin, which excludes an estimated $450 million for
business optimization costs in fiscal 2024 and $1.1 billion in
fiscal 2023, to be 15.5%, compared to a range of 15.5% to 15.7%
previously, an expansion of 10 basis points from fiscal 2023.
The company now expects both its GAAP and adjusted annual
effective tax rate, which excludes the tax impacts of business
optimization costs, to be in the range of 22.5% to 24.5%, compared
to 23.5% to 25.5% previously.
The company now expects GAAP diluted EPS to be in the range of
$11.41 to $11.64, compared to $11.41 to $11.76 previously, an
increase of 6% to 8% over fiscal 2023; and adjusted EPS to be in
the range of $11.97 to $12.20, compared to $11.97 to $12.32
previously, an increase of 3% to 5% over fiscal 2023. This excludes
$0.56 for business optimization costs in fiscal 2024 and $1.28 for
business optimization costs and $0.38 for a gain on an investment
in fiscal 2023.
For fiscal 2024, the company continues to expect operating cash
flow to be in the range of $9.3 billion to $9.9 billion; property
and equipment additions to be $600 million; and free cash flow to
be in the range of $8.7 billion to $9.3 billion.
The company continues to expect to return at least $7.7 billion
in cash to shareholders through dividends and share
repurchases.
360° Value Reporting
Accenture’s goal is to create 360° value for our clients,
people, shareholders, partners and communities. Our reporting
captures how we deliver unique value across six vital dimensions
and offers a comprehensive view of our financial and environmental,
social and governance (ESG) measures, and our goals, progress and
performance for each. Our full 360° Value Report and online 360°
Value Reporting Experience provide customizable reporting. To
access, please visit the Accenture 360° Value Reporting Experience
at www.accenture.com/reportingexperience.
Conference Call and Webcast
Details
Accenture will host a conference call at 8:00 a.m. EDT today to
discuss its second quarter of fiscal 2024 financial results. To
participate in the teleconference, please dial +1 (877) 692-8955
[or +1 (234) 720-6979 outside the U.S., Puerto Rico and Canada] and
enter access code 6586099 approximately 15 minutes before the
scheduled start of the call. The conference call will also be
accessible live via webcast on the Investor Relations section of
the Accenture website at www.accenture.com.
A replay of the conference call will be available at
www.accenture.com and at +1 (866) 207-1041 [or +1 (402) 970-0847
outside the U.S., Puerto Rico and Canada] with access code 7186351,
from 11:00 a.m. EDT today, through Wednesday, June 19, 2024.
About Accenture
Accenture is a leading global professional services company that
helps the world’s leading businesses, governments and other
organizations build their digital core, optimize their operations,
accelerate revenue growth and enhance citizen services—creating
tangible value at speed and scale. We are a talent- and
innovation-led company with 742,000 people serving clients in more
than 120 countries. Technology is at the core of change today, and
we are one of the world’s leaders in helping drive that change,
with strong ecosystem relationships. We combine our strength in
technology and leadership in cloud, data and AI with unmatched
industry experience, functional expertise and global delivery
capability. We are uniquely able to deliver tangible outcomes
because of our broad range of services, solutions and assets across
Strategy & Consulting, Technology, Operations, Industry X and
Song. These capabilities, together with our culture of shared
success and commitment to creating 360° value, enable us to help
our clients reinvent and build trusted, lasting relationships. We
measure our success by the 360° value we create for our clients,
each other, our shareholders, partners and communities. Visit us at
www.accenture.com.
Non-GAAP Financial
Information
This news release includes certain non-GAAP financial
information as defined by Securities and Exchange Commission
Regulation G. Pursuant to the requirements of this regulation,
reconciliations of this non-GAAP financial information to
Accenture’s financial statements as prepared under generally
accepted accounting principles (GAAP) are included in this press
release. Financial results “in local currency” are calculated by
restating current-period activity into U.S. dollars using the
comparable prior-year period’s foreign-currency exchange rates.
Accenture’s management believes providing investors with this
information gives additional insights into Accenture’s results of
operations. While Accenture’s management believes that the non-GAAP
financial measures herein are useful in evaluating Accenture’s
operations, this information should be considered as supplemental
in nature and not as a substitute for the related financial
information prepared in accordance with GAAP. Accenture provides
full-year revenue guidance on a local-currency basis and not in
U.S. dollars because the impact of foreign exchange rate
fluctuations could vary significantly from the company’s stated
assumptions.
Forward-Looking
Statements
Except for the historical information and discussions contained
herein, statements in this news release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as “may,”
“will,” “should,” “likely,” “anticipates,” “aspires,” “expects,”
“intends,” “plans,” “projects,” “believes,” “estimates,”
“positioned,” “outlook,” “goal,” “target,” and similar expressions
are used to identify these forward-looking statements. These
statements are not guarantees of future performance nor promises
that goals or targets will be met, and involve a number of risks,
uncertainties and other factors that are difficult to predict and
could cause actual results to differ materially from those
expressed or implied. These risks include, without limitation,
risks that: Accenture’s results of operations have been, and may in
the future be, adversely affected by volatile, negative or
uncertain economic and political conditions and the effects of
these conditions on the company’s clients’ businesses and levels of
business activity; Accenture’s business depends on generating and
maintaining client demand for the company’s services and solutions
including through the adaptation and expansion of its services and
solutions in response to ongoing changes in technology and
offerings, and a significant reduction in such demand or an
inability to respond to the evolving technological environment
could materially affect the company’s results of operations; if
Accenture is unable to match people and their skills with client
demand around the world and attract and retain professionals with
strong leadership skills, the company’s business, the utilization
rate of the company’s professionals and the company’s results of
operations may be materially adversely affected; Accenture faces
legal, reputational and financial risks from any failure to protect
client and/or company data from security incidents or cyberattacks;
the markets in which Accenture operates are highly competitive, and
Accenture might not be able to compete effectively; Accenture’s
ability to attract and retain business and employees may depend on
its reputation in the marketplace; if Accenture does not
successfully manage and develop its relationships with key
ecosystem partners or fails to anticipate and establish new
alliances in new technologies, the company’s results of operations
could be adversely affected; Accenture’s profitability could
materially suffer if the company is unable to obtain favorable
pricing for its services and solutions, if the company is unable to
remain competitive, if its cost-management strategies are
unsuccessful or if it experiences delivery inefficiencies or fail
to satisfy certain agreed-upon targets or specific service levels;
changes in Accenture’s level of taxes, as well as audits,
investigations and tax proceedings, or changes in tax laws or in
their interpretation or enforcement, could have a material adverse
effect on the company’s effective tax rate, results of operations,
cash flows and financial condition; Accenture’s results of
operations could be materially adversely affected by fluctuations
in foreign currency exchange rates; changes to accounting standards
or in the estimates and assumptions Accenture makes in connection
with the preparation of its consolidated financial statements could
adversely affect its financial results; as a result of Accenture’s
geographically diverse operations and strategy to continue to grow
in key markets around the world, the company is more susceptible to
certain risks; if Accenture is unable to manage the organizational
challenges associated with its size, the company might be unable to
achieve its business objectives; Accenture might not be successful
at acquiring, investing in or integrating businesses, entering into
joint ventures or divesting businesses; Accenture’s business could
be materially adversely affected if the company incurs legal
liability; Accenture’s global operations expose the company to
numerous and sometimes conflicting legal and regulatory
requirements; Accenture’s work with government clients exposes the
company to additional risks inherent in the government contracting
environment; if Accenture is unable to protect or enforce its
intellectual property rights or if Accenture’s services or
solutions infringe upon the intellectual property rights of others
or the company loses its ability to utilize the intellectual
property of others, its business could be adversely affected;
Accenture may be subject to criticism and negative publicity
related to its incorporation in Ireland; as well as the risks,
uncertainties and other factors discussed under the “Risk Factors”
heading in Accenture plc’s most recent Annual Report on Form 10-K
and other documents filed with or furnished to the Securities and
Exchange Commission. Statements in this news release speak only as
of the date they were made, and Accenture undertakes no duty to
update any forward-looking statements made in this news release or
to conform such statements to actual results or changes in
Accenture’s expectations.
Accenture plc Consolidated Income Statements (In
thousands of U.S. dollars, except share and per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
February 29, 2024
% of Revenues
February 28, 2023
% of Revenues
February 29, 2024
% of Revenues
February 28, 2023
% of Revenues
REVENUES:
Revenues
$
15,799,514
100.0
%
$
15,814,158
100.0
%
$
32,023,817
100.0
%
$
31,561,960
100.0
%
OPERATING EXPENSES:
Cost of services
10,921,045
69.1
%
10,979,392
69.4
%
21,697,407
67.8
%
21,541,052
68.3
%
Sales and marketing
1,631,185
10.3
%
1,563,567
9.9
%
3,341,076
10.4
%
3,113,586
9.9
%
General and administrative costs
1,085,448
6.9
%
1,082,228
6.8
%
2,118,947
6.6
%
2,125,251
6.7
%
Business optimization costs
115,409
0.7
%
244,390
1.5
%
255,073
0.8
%
244,390
0.8
%
Total operating expenses
13,753,087
13,869,577
27,412,503
27,024,279
OPERATING INCOME
2,046,427
13.0
%
1,944,581
12.3
%
4,611,314
14.4
%
4,537,681
14.4
%
Interest income
65,269
50,259
167,249
94,964
Interest expense
(10,305
)
(11,634
)
(24,800
)
(18,914
)
Other income (expense), net
(5,652
)
(36,300
)
(41,371
)
(65,207
)
INCOME BEFORE INCOME TAXES
2,095,739
13.3
%
1,946,906
12.3
%
4,712,392
14.7
%
4,548,524
14.4
%
Income tax expense
386,537
396,223
993,209
1,001,541
NET INCOME
1,709,202
10.8
%
1,550,683
9.8
%
3,719,183
11.6
%
3,546,983
11.2
%
Net income attributable to noncontrolling
interest in Accenture Canada Holdings Inc.
(1,675
)
(1,604
)
(3,691
)
(3,689
)
Net income attributable to noncontrolling
interests – other (1)
(32,668
)
(25,431
)
(67,189
)
(54,696
)
NET INCOME ATTRIBUTABLE TO ACCENTURE
PLC
$
1,674,859
10.6
%
$
1,523,648
9.6
%
$
3,648,303
11.4
%
$
3,488,598
11.1
%
CALCULATION OF EARNINGS PER
SHARE:
Net income attributable to Accenture
plc
$
1,674,859
$
1,523,648
$
3,648,303
$
3,488,598
Net income attributable to noncontrolling
interest in Accenture Canada Holdings Inc. (2)
1,675
1,604
3,691
3,689
Net income for diluted earnings per
share calculation
$
1,676,534
$
1,525,252
$
3,651,994
$
3,492,287
WEIGHTED AVERAGE SHARES:
Basic
629,016,555
630,845,147
628,488,831
630,485,134
Diluted
636,797,814
637,735,390
637,069,356
638,350,779
EARNINGS PER SHARE:
Basic
$
2.66
$
2.42
$
5.80
$
5.53
Diluted
$
2.63
$
2.39
$
5.73
$
5.47
Cash dividends per share
$
1.29
$
1.12
$
2.58
$
2.24
(1)
Comprised primarily of noncontrolling
interest attributable to the noncontrolling shareholders of
Avanade, Inc.
(2)
Diluted earnings per share assumes the
exchange of all Accenture Canada Holdings Inc. exchangeable shares
for Accenture plc Class A ordinary shares on a one-for-one basis.
The income effect does not take into account “Net income
attributable to noncontrolling interests — other,” since those
shares are not redeemable or exchangeable for Accenture plc Class A
ordinary shares.
Accenture plc Summary of Revenues (In thousands of
U.S. dollars) (Unaudited)
Three Months Ended
Percent Increase
(Decrease) U.S. Dollars
Percent Increase
(Decrease) Local Currency
February 29, 2024
February 28, 2023
GEOGRAPHIC MARKETS (1)
North America
$
7,376,812
$
7,397,874
—
%
—
%
EMEA
5,598,850
5,554,682
1
(2
)
Growth Markets
2,823,852
2,861,602
(1
)
6
Total Revenues
$
15,799,514
$
15,814,158
—
%
—
%
INDUSTRY GROUPS
Communications, Media & Technology
$
2,654,137
$
2,884,802
(8
(7
Financial Services
2,808,930
3,002,867
(6
)
(6
)
Health & Public Service
3,334,039
3,023,595
10
10
Products
4,761,838
4,718,572
1
—
Resources
2,240,570
2,184,322
3
4
Total Revenues
$
15,799,514
$
15,814,158
—
%
—
%
TYPE OF WORK
Consulting
$
8,021,034
$
8,278,763
(3
(3
Managed Services
7,778,480
7,535,395
3
3
Total Revenues
$
15,799,514
$
15,814,158
—
%
—
%
Six Months Ended
Percent Increase
(Decrease) U.S. Dollars
Percent Increase
(Decrease) Local Currency
February 29, 2024
February 28, 2023
GEOGRAPHIC MARKETS (1)
North America
$
14,939,714
$
15,020,694
(1
(1
EMEA
11,402,492
10,867,581
5
—
Growth Markets
5,681,611
5,673,685
—
5
Total Revenues
$
32,023,817
$
31,561,960
1
%
1
%
INDUSTRY GROUPS
Communications, Media & Technology
$
5,323,585
$
5,865,005
(9
(9
Financial Services
5,842,508
5,966,263
(2
)
(3
)
Health & Public Service
6,711,505
6,023,614
11
11
Products
9,621,825
9,384,360
3
1
Resources
4,524,394
4,322,718
5
5
Total Revenues
$
32,023,817
$
31,561,960
1
%
1
%
TYPE OF WORK
Consulting
$
16,477,540
$
16,723,130
(1
(2
Managed Services
15,546,277
14,838,830
5
4
Total Revenues
$
32,023,817
$
31,561,960
1
%
1
%
(1)
Effective September 1, 2023, we revised
the reporting of our geographic markets for the movement of our
Middle East and Africa market units from Growth Markets to Europe,
and the Europe market is now referred to as our EMEA (Europe,
Middle East and Africa) geographic market. Prior period amounts
have been reclassified to conform with the current period
presentation.
Accenture plc Operating Income by Geographic
Market (In thousands of U.S. dollars) (Unaudited)
Three Months Ended
February 29, 2024
February 28, 2023
Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
Increase
(Decrease)
North America
$
1,060,376
14
%
$
823,858
11
%
$
236,518
EMEA (1)
529,012
9
615,403
11
(86,391
)
Growth Markets (1)
457,039
16
505,320
18
(48,281
)
Total Operating Income
$
2,046,427
13.0
%
$
1,944,581
12.3
%
$
101,846
Six Months Ended
February 29, 2024
February 28, 2023
Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
Increase
(Decrease)
North America
$
2,317,084
16
%
$
2,133,741
14
%
$
183,343
EMEA (1)
1,352,613
12
1,342,286
12
10,327
Growth Markets (1)
941,617
17
1,061,654
19
(120,037
)
Total Operating Income
$
4,611,314
14.4
%
$
4,537,681
14.4
%
$
73,633
(1)
Effective September 1, 2023, we revised
the reporting of our geographic markets for the movement of our
Middle East and Africa market units from Growth Markets to Europe,
and the Europe market is now referred to as our EMEA (Europe,
Middle East and Africa) geographic market. Prior period amounts
have been reclassified to conform with the current period
presentation.
Accenture plc Reconciliation of Operating Income, as
Reported (GAAP) to Operating Income as Adjusted (Non-GAAP) (In
thousands of U.S. dollars) (Unaudited)
Three Months Ended
February 29, 2024
February 28, 2023
As
Reported (GAAP)
Business
Optimization (1)
Adjusted
(Non-GAAP)
Operating
Margin
(Non-GAAP)
As
Reported
(GAAP)
Business Optimization
(1)
Adjusted
(Non-GAAP)
Operating
Margin
(Non-GAAP)
North America
$
1,060,376
$
4,689
$
1,065,065
14
%
$
823,858
$
176,980
$
1,000,838
14
%
EMEA (2)
529,012
85,561
614,573
11
615,403
40,960
656,363
12
Growth Markets (2)
457,039
25,159
482,198
17
505,320
26,450
531,770
19
Total Operating Income
$
2,046,427
$
115,409
$
2,161,836
13.7
%
$
1,944,581
$
244,390
$
2,188,971
13.8
%
Six Months Ended
February 29, 2024
February 28, 2023
As
Reported (GAAP)
Business Optimization
(1)
Adjusted
(Non-GAAP)
Operating
Margin
(Non-GAAP)
As
Reported
(GAAP)
Business Optimization
(1)
Adjusted
(Non-GAAP)
Operating
Margin
(Non-GAAP)
North America
$
2,317,084
$
50,618
$
2,367,702
16
%
$
2,133,741
$
176,980
$
2,310,721
15
%
EMEA (2)
1,352,613
156,365
1,508,978
13
1,342,286
40,960
1,383,246
13
Growth Markets (2)
941,617
48,090
989,707
17
1,061,654
26,450
1,088,104
19
Total Operating
Income
$
4,611,314
$
255,073
$
4,866,387
15.2
%
$
4,537,681
$
244,390
$
4,782,071
15.2
%
(1)
Costs recorded in connection with our
business optimization initiatives, primarily for employee
severance.
(2)
Effective September 1, 2023, we revised
the reporting of our geographic markets for the movement of our
Middle East and Africa market units from Growth Markets to Europe,
and the Europe market is now referred to as our EMEA (Europe,
Middle East and Africa) geographic market. Prior period amounts
have been reclassified to conform with the current period
presentation.
Accenture plc Reconciliation of Net Income and Diluted
Earnings Per Share, as Reported (GAAP), to Net Income and Diluted
Earnings Per Share, as Adjusted (Non-GAAP) (In thousands of
U.S. dollars, except per share amounts) (Unaudited)
Three Months Ended
February 29, 2024
February 28, 2023
As Reported (GAAP)
Business Optimization
(1)
Adjusted
(Non-GAAP)
As Reported
(GAAP)
Business Optimization
(1)
Adjusted
(Non-GAAP)
Operating Income
$
2,046,427
$
115,409
$
2,161,836
$
1,944,581
$
244,390
$
2,188,971
Operating Margin
13.0
%
0.7
%
13.7
%
12.3
%
1.5
%
13.8
%
Income before income taxes
2,095,739
115,409
2,211,148
1,946,906
244,390
2,191,296
Income tax expense
386,537
28,078
414,615
396,223
51,515
447,738
Net Income
$
1,709,202
$
87,331
$
1,796,533
$
1,550,683
$
192,875
$
1,743,558
Effective tax rate
18.4
%
24.3
%
18.8
%
20.4
%
21.1
%
20.4
%
Diluted earnings per share (2)
$
2.63
$
0.14
$
2.77
$
2.39
$
0.30
$
2.69
Six Months Ended
February 29, 2024
February 28, 2023
As Reported (GAAP)
Business Optimization
(1)
Adjusted
(Non-GAAP)
As Reported
(GAAP)
Business Optimization
(1)
Adjusted
(Non-GAAP)
Operating Income
$
4,611,314
$
255,073
$
4,866,387
$
4,537,681
$
244,390
$
4,782,071
Operating Margin
14.4
%
0.8
%
15.2
%
14.4
%
0.8
%
15.2
%
Income before income taxes
4,712,392
255,073
4,967,465
4,548,524
244,390
4,792,914
Income tax expense
993,209
62,056
1,055,265
1,001,541
51,515
1,053,056
Net Income
$
3,719,183
$
193,017
$
3,912,200
$
3,546,983
$
192,875
$
3,739,858
Effective tax rate
21.1
%
24.3
%
21.2
%
22.0
%
21.1
%
22.0
%
Diluted earnings per share (2)
$
5.73
$
0.30
$
6.04
$
5.47
$
0.30
$
5.77
Amounts in table may not total due to
rounding.
(1)
Costs recorded in connection with our
business optimization initiatives, primarily for employee
severance.
(2)
The impact of business optimization costs
on diluted earnings per share are presented net of related taxes.
The income tax effect was negative $0.04 and negative $0.08 for the
three months ended February 29, 2024 and February 28, 2023,
respectively, and negative $0.10 and negative $0.08 for the six
months ended February 29, 2024 and February 28, 2023, respectively.
This includes both the current and deferred income tax impact and
was calculated by using the relevant tax rate of the country where
the costs were recorded.
Accenture plc Consolidated Balance Sheets (In
thousands of U.S. dollars)
February 29, 2024
August 31, 2023
ASSETS
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$
5,121,107
$
9,045,032
Short-term investments
4,540
4,575
Receivables and contract assets
13,080,504
12,227,186
Other current assets
2,122,670
2,105,138
Total current assets
20,328,821
23,381,931
NON-CURRENT ASSETS:
Contract assets
126,355
106,994
Investments
238,934
197,443
Property and equipment, net
1,458,836
1,530,007
Lease assets
2,635,038
2,637,479
Goodwill
17,947,306
15,573,003
Other non-current assets
8,572,181
7,818,448
Total non-current assets
30,978,650
27,863,374
TOTAL ASSETS
$
51,307,471
$
51,245,305
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank
borrowings
$
111,141
$
104,810
Accounts payable
2,228,446
2,491,173
Deferred revenues
5,363,972
4,907,152
Accrued payroll and related benefits
5,955,341
7,506,030
Lease liabilities
682,553
690,417
Other accrued liabilities
1,794,561
2,309,456
Total current liabilities
16,136,014
18,009,038
NON-CURRENT LIABILITIES:
Long-term debt
71,635
43,093
Lease liabilities
2,293,252
2,310,714
Other non-current liabilities
4,850,146
4,423,867
Total non-current liabilities
7,215,033
6,777,674
Total Accenture plc shareholders’
equity
27,122,853
25,692,839
Noncontrolling interests
833,571
765,754
Total shareholders’ equity
27,956,424
26,458,593
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
51,307,471
$
51,245,305
Accenture plc Consolidated Cash Flows Statements
(In thousands of U.S. dollars) (Unaudited)
Three Months Ended
Six Months Ended
February 29,
2024
February 28,
2023
February 29,
2024
February 28,
2023
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
1,709,202
$
1,550,683
$
3,719,183
$
3,546,983
Depreciation, amortization and other
528,928
532,476
1,050,328
1,038,705
Share-based compensation expense
641,871
631,870
1,064,871
1,057,339
Change in assets and liabilities/other,
net
(778,958
)
(384,918
)
(3,234,788
)
(2,817,518
)
Net cash provided by (used in)
operating activities
2,101,043
2,330,111
2,599,594
2,825,509
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property and equipment
(109,823
)
(107,548
)
(178,756
)
(206,378
)
Purchases of businesses and investments,
net of cash acquired
(2,121,455
)
(390,527
)
(2,909,480
)
(1,076,987
)
Proceeds from the sale of businesses and
investments
20,905
17,279
20,905
17,875
Other investing, net
2,125
2,499
3,653
5,119
Net cash provided by (used in)
investing activities
(2,208,248
)
(478,297
)
(3,063,678
)
(1,260,371
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of ordinary
shares
285,373
341,914
762,807
807,621
Purchases of shares
(1,321,846
)
(1,118,211
)
(2,512,974
)
(2,536,913
)
Cash dividends paid
(812,578
)
(708,022
)
(1,622,634
)
(1,413,589
)
Other financing, net
(16,690
)
(31,022
)
(44,853
)
(49,320
)
Net cash provided by (used in)
financing activities
(1,865,741
)
(1,515,341
)
(3,417,654
)
(3,192,201
)
Effect of exchange rate changes on cash
and cash equivalents
(46,788
)
2,611
(42,187
)
(23,983
)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
(2,019,734
)
339,084
(3,923,925
)
(1,651,046
)
CASH AND CASH EQUIVALENTS,
beginning of period
7,140,841
5,899,703
9,045,032
7,889,833
CASH AND CASH EQUIVALENTS, end of
period
$
5,121,107
$
6,238,787
$
5,121,107
$
6,238,787
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240321256762/en/
Rachel Frey Accenture Media Relations +1 917 452 4421
rachel.frey@accenture.com
Katie O’Conor Accenture Investor Relations +1 973 301 3275
catherine.m.oconor@accenture.com
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