- New bookings of $21.1 billion, an increase of 22% in U.S.
dollars and 26% in local currency
- Generative AI new bookings of over $900 million for a total
of $2 billion fiscal year-to-date
- Revenues of $16.5 billion, a decrease of 1% in U.S. dollars
and increase of 1.4% in local currency, with consulting revenues of
$8.5 billion and managed services revenues of $8.0 billion
- GAAP operating margin of 16.0%, an increase of 180 basis
points over the third quarter of fiscal 2023; adjusted1 operating
margin of 16.4%, an expansion of 10 basis points
- GAAP EPS of $3.04, a decrease of 3% from the third quarter
of fiscal 2023; adjusted EPS of $3.13, a 2% decrease
- 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 1.5% to 2.5% in local currency,
full-year foreign-exchange impact of negative 0.7%, GAAP EPS of
$11.29 to $11.44 and adjusted EPS of $11.85 to $12.00; continues to
expect GAAP operating margin of 14.8%, adjusted operating margin of
15.5% and free cash flow of $8.7 billion to $9.3 billion
Accenture (NYSE: ACN) reported financial results for the third
quarter of fiscal 2024 ended May 31, 2024.
This press release features multimedia. View
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3QFY24 Earnings Infographic (Graphic:
Business Wire)
Julie Sweet, chair and CEO, Accenture, said, “Our actions to
stay laser-focused on the needs of our clients are clear in our
third quarter results. We achieved strong new bookings of over $21
billion, up 22% over last year, and continued to accelerate our
strategy to be the reinvention partner of choice, with another 23
clients with quarterly bookings of over $100 million, bringing the
total of such bookings to 92 year-to-date. We also achieved two
significant milestones this quarter -- with $2 billion in
Generative AI sales year-to-date and $500 million in revenue
year-to-date -- which demonstrate our early lead in this critical
technology. All of this while investing at scale in our business
with another 35 acquisitions or $5.2 billion of capital deployed
year-to-date. I want to thank the 750,000 people of Accenture
around the world who work every day to deliver 360° value for our
stakeholders.”
Revenues were $16.5 billion, a decrease of 1% in U.S. dollars
and an increase of 1.4% in local currency compared to the third
quarter of fiscal 2023.
GAAP operating income was $2.63 billion, compared to $2.36
billion for the third quarter of fiscal 2023, and operating margin
was 16.0%, compared to 14.2% for the third quarter last year.
Adjusted operating income was $2.71 billion, compared to $2.71
billion for the third quarter of fiscal 2023 and adjusted operating
margin was 16.4%, compared to 16.3% for the third 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, and a gain related
to our investment in Duck Creek Technologies recorded in fiscal
2023, as further described in this release.
GAAP diluted earnings per share were $3.04, a decrease of 3%
from $3.15 for the third quarter of fiscal 2023. Adjusted EPS were
$3.13, a decrease of 2% from $3.19 for the third quarter of fiscal
2023.
New bookings for the quarter were $21.1 billion, with consulting
bookings of $9.3 billion and managed services bookings of $11.8
billion.
Financial Review
Revenues for the third quarter of fiscal 2024 were $16.47
billion, compared with $16.56 billion for the third quarter of
fiscal 2023, a decrease of 1% in U.S. dollars and an increase of
1.4% in local currency.
Revenues for the quarter reflect a foreign-exchange impact of
approximately negative 2% compared with the negative 1% impact
previously assumed. Adjusting for the actual foreign-exchange
impact, the company’s guided range for quarterly revenues was
approximately $16.10 billion to $16.70 billion. Accenture's third
quarter fiscal 2024 revenues were slightly above the midpoint of
this adjusted range.
- Consulting revenues for the quarter were $8.46 billion, a
decrease of 3% in U.S. dollars and 1% in local currency compared
with the third quarter of fiscal 2023.
- Managed Services revenues for the quarter were $8.01 billion,
an increase of 2% in U.S. dollars and 4% in local currency compared
with the third quarter of fiscal 2023.
GAAP diluted EPS for the quarter were $3.04, a 3% decrease from
$3.15 for the third quarter of fiscal 2023. Excluding a $0.08 and
$0.42 decrease for business optimization costs in the third quarter
of fiscal 2024 and 2023, respectively, and a $0.38 increase for a
gain on an investment in the third quarter of fiscal 2023, adjusted
EPS were $3.13, a 2% decrease from $3.19 last year. The $0.06
decrease in EPS on an adjusted basis reflects:
- a $ 0.07 decrease from a higher effective tax rate; and
- a $ 0.01 decrease from higher noncontrolling interests;
partially offset by
- a $ 0.02 increase from lower share count
Gross margin (gross profit as a percentage of revenues) for the
quarter was 33.4%, flat compared with the third quarter of fiscal
2023. Selling, general and administrative (SG&A) expenses for
the quarter were $2.79 billion, or 16.9% of revenues, compared with
$2.82 billion, or 17.0% of revenues, for the third quarter of
fiscal 2023.
GAAP operating income for the quarter increased 12%, to $2.63
billion, or 16.0% of revenues, compared with $2.36 billion, or
14.2% of revenues, for the third quarter of fiscal 2023. Adjusted
operating income for the quarter was $2.71 billion, or 16.4% of
revenues, compared with $2.71 billion, or 16.3% of revenues for the
third quarter of fiscal 2023.
The company’s GAAP effective tax rate for the quarter was 25.4%,
compared with 22.2% for the third quarter of fiscal 2023. The
adjusted effective tax rate for the third quarter of fiscal 2024
was 25.5%, compared with 24.0% for the third quarter of fiscal
2023.
GAAP net income for the quarter was $1.98 billion, compared with
$2.05 billion for the third quarter of fiscal 2023. Adjusted net
income for the quarter was $2.04 billion, compared with $2.07
billion for the third quarter of fiscal 2023.
Operating cash flow for the quarter was $3.14 billion, and
property and equipment additions were $124 million. Free cash flow,
defined as operating cash flow net of property and equipment
additions, was $3.02 billion. For the same period last year,
operating cash flow was $3.29 billion; property and equipment
additions were $142 million; and free cash flow was $3.15
billion.
Days services outstanding, or DSOs, were 43 days at May 31,
2024, compared with 42 days at both August 31, 2023 and May 31,
2023.
Accenture’s total cash balance at May 31, 2024 was $5.5 billion,
compared with $9.0 billion at August 31, 2023.
New Bookings
New bookings for the third quarter of fiscal 2024 were $21.06
billion, a 22% increase in U.S. dollars and a 26% increase in local
currency over the third quarter of fiscal 2023.
- Consulting new bookings were $9.28 billion, or 44% of total new
bookings.
- Managed Services new bookings were $11.78 billion, or 56% of
total new bookings.
Revenues by Geographic Market2
Revenues by geographic market were as follows:
- North America: $7.83 billion, an increase of 1% in both U.S.
dollars and local currency compared with the third quarter of
fiscal 2023.
- EMEA: $5.78 billion, a decrease of 2% in both U.S. dollars and
local currency compared with the third quarter of fiscal 2023.
- Growth Markets: $2.86 billion, a decrease of 4% in U.S. dollars
and an increase of 8% in local currency compared with the third
quarter of fiscal 2023.
Revenues by Industry Group
Revenues by industry group were as follows:
- Communications, Media & Technology: $2.76 billion, a
decrease of 4% in U.S. dollars and 1% in local currency compared
with the third quarter of fiscal 2023.
- Financial Services: $2.89 billion, a decrease of 8% in U.S.
dollars and 5% in local currency compared with the third quarter of
fiscal 2023.
- Health & Public Service: $3.52 billion, an increase of 8%
in U.S. dollars and 9% in local currency compared with the third
quarter of fiscal 2023.
- Products: $4.98 billion, flat in U.S. dollars and an increase
of 2% in local currency compared with the third quarter of fiscal
2023.
- Resources: $2.31 billion, flat in U.S. dollars and an increase
of 3% in local currency compared with the third 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 May 15, 2024, a quarterly cash dividend of $1.29 per share
was paid to shareholders of record at the close of business on
April 11, 2024. These cash dividend payments totaled $811
million.
Accenture plc has declared another quarterly cash dividend of
$1.29 per share for shareholders of record at the close of business
on July 11, 2024. This dividend, which is payable on August 15,
2024, represents a 15% increase over the quarterly dividend rate of
$1.12 per share in fiscal 2023.
Share Repurchase Activity
During the third quarter of fiscal 2024, Accenture repurchased
or redeemed 4.3 million shares for a total of $1.4 billion,
including approximately 4.1 million shares repurchased in the open
market.
Accenture’s total remaining share repurchase authority at May
31, 2024 was approximately $3.3 billion.
At May 31, 2024, Accenture had approximately 627 million total
shares outstanding.
Business Outlook
Fourth Quarter Fiscal 2024
Accenture expects revenues for the fourth quarter of fiscal 2024
to be in the range of $16.05 billion to $16.65 billion, or 2% to 6%
growth in local currency, reflecting the company’s assumption of an
approximately negative 2% foreign-exchange impact compared with the
fourth quarter of fiscal 2023.
Fiscal Year 2024
Accenture’s business outlook for fiscal 2024 now assumes that
the foreign-exchange impact on its results in U.S. dollars will be
negative 0.7% compared with fiscal 2023; the company previously
expected the impact to be flat.
For fiscal 2024, the company now expects revenue growth to be in
the range of 1.5% to 2.5% in local currency, compared to 1% to 3%
previously.
Accenture continues to expect GAAP operating margin for fiscal
2024 to be 14.8%, 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%, 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 23.5% to 24.5%, compared
to 22.5% to 24.5% previously.
The company now expects GAAP diluted EPS to be in the range of
$11.29 to $11.44, compared to $11.41 to $11.64 previously, an
increase of 5% to 6% over fiscal 2023; and adjusted EPS to be in
the range of $11.85 to $12.00, compared to $11.97 to $12.20
previously, an increase of 2% to 3% 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 third 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 4074957 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 1326158,
from 11:00 a.m. EDT today, through Wednesday, September 25,
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 750,000 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
Nine Months Ended
May 31, 2024
% of Revenues
May 31, 2023
% of Revenues
May 31, 2024
% of Revenues
May 31, 2023
% of Revenues
REVENUES:
Revenues
$
16,466,828
100.0
%
$
16,564,585
100.0
%
$
48,490,645
100.0
%
$
48,126,545
100.0
%
OPERATING EXPENSES:
Cost of services
10,968,377
66.6
%
11,035,515
66.6
%
32,665,784
67.4
%
32,576,567
67.7
%
Sales and marketing
1,750,366
10.6
%
1,738,621
10.5
%
5,091,442
10.5
%
4,852,207
10.1
%
General and administrative costs
1,039,800
6.3
%
1,084,288
6.5
%
3,158,747
6.5
%
3,209,539
6.7
%
Business optimization costs
77,420
0.5
%
346,873
2.1
%
332,493
0.7
%
591,263
1.2
%
Total operating expenses
13,835,963
14,205,297
41,248,466
41,229,576
OPERATING INCOME
2,630,865
16.0
%
2,359,288
14.2
%
7,242,179
14.9
%
6,896,969
14.3
%
Interest income
53,690
81,818
220,939
176,782
Interest expense
(11,334
)
(11,208
)
(36,134
)
(30,122
)
Other income (expense), net
(18,851
)
201,783
(60,222
)
136,576
INCOME BEFORE INCOME TAXES
2,654,370
16.1
%
2,631,681
15.9
%
7,366,762
15.2
%
7,180,205
14.9
%
Income tax expense
673,022
583,346
1,666,231
1,584,887
NET INCOME
1,981,348
12.0
%
2,048,335
12.4
%
5,700,531
11.8
%
5,595,318
11.6
%
Net income attributable to noncontrolling
interest in Accenture Canada Holdings Inc.
(1,901
)
(2,101
)
(5,592
)
(5,790
)
Net income attributable to noncontrolling
interests – other (1)
(47,264
)
(36,238
)
(114,453
)
(90,934
)
NET INCOME ATTRIBUTABLE TO ACCENTURE
PLC
$
1,932,183
11.7
%
$
2,009,996
12.1
%
$
5,580,486
11.5
%
$
5,498,594
11.4
%
CALCULATION OF EARNINGS PER
SHARE:
Net income attributable to Accenture
plc
$
1,932,183
$
2,009,996
$
5,580,486
$
5,498,594
Net income attributable to noncontrolling
interest in Accenture Canada Holdings Inc. (2)
1,901
2,101
5,592
5,790
Net income for diluted earnings per
share calculation
$
1,934,084
$
2,012,097
$
5,586,078
$
5,504,384
WEIGHTED AVERAGE SHARES:
Basic
628,353,267
631,535,162
628,437,255
630,826,230
Diluted
635,607,597
638,743,434
636,611,310
638,404,751
EARNINGS PER SHARE:
Basic
$
3.07
$
3.18
$
8.88
$
8.72
Diluted
$
3.04
$
3.15
$
8.77
$
8.62
Cash dividends per share
$
1.29
$
1.12
$
3.87
$
3.36
(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
May 31, 2024
May 31, 2023
GEOGRAPHIC MARKETS
North America (1)
$
7,834,206
$
7,720,903
1
%
1
%
EMEA (2)
5,776,624
5,872,107
(2
)
(2
)
Growth Markets (1) (2)
2,855,998
2,971,575
(4
)
8
Total Revenues
$
16,466,828
$
16,564,585
(1
)%
1
%
INDUSTRY GROUPS
Communications, Media & Technology
$
2,763,076
$
2,880,187
(4
)%
(1
)%
Financial Services
2,894,753
3,138,181
(8
)
(5
)
Health & Public Service
3,515,264
3,266,347
8
9
Products
4,983,422
4,968,399
—
2
Resources
2,310,313
2,311,471
—
3
Total Revenues
$
16,466,828
$
16,564,585
(1
)%
1
%
TYPE OF WORK
Consulting
$
8,457,169
$
8,693,030
(3
)%
(1
)%
Managed Services
8,009,659
7,871,555
2
4
Total Revenues
$
16,466,828
$
16,564,585
(1
)%
1
%
Nine Months Ended
Percent
Increase (Decrease)
U.S.
Dollars
Percent
Increase (Decrease)
Local
Currency
May 31, 2024
May 31, 2023
GEOGRAPHIC MARKETS
North America (1)
$
22,773,920
$
22,741,597
—
%
—
%
EMEA (2)
17,179,116
16,739,688
3
(1
)
Growth Markets (1) (2)
8,537,609
8,645,260
(1
)
6
Total Revenues
$
48,490,645
$
48,126,545
1
%
1
%
INDUSTRY GROUPS
Communications, Media & Technology
$
8,086,661
$
8,745,192
(8
)%
(6
)%
Financial Services
8,737,261
9,104,444
(4
)
(4
)
Health & Public Service
10,226,769
9,289,961
10
10
Products
14,605,247
14,352,759
2
1
Resources
6,834,707
6,634,189
3
4
Total Revenues
$
48,490,645
$
48,126,545
1
%
1
%
TYPE OF WORK
Consulting
$
24,934,709
$
25,416,160
(2
)%
(2
)%
Managed Services
23,555,936
22,710,385
4
4
Total Revenues
$
48,490,645
$
48,126,545
1
%
1
%
(1)
As announced on June 11, 2024, effective September 1, 2024, our
Latin America market unit will move from Growth Markets to North
America. With this change, North America will become The Americas
market and Growth Markets will become the Asia Pacific market.
(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
Operating Income by Geographic
Market
(In thousands of U.S. dollars)
(Unaudited)
Three Months Ended
May 31, 2024
May 31, 2023
Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
Increase (Decrease)
North America (1)
$
1,365,072
17
%
$
1,241,245
16
%
$
123,827
EMEA (2)
749,859
13
670,330
11
79,529
Growth Markets (1) (2)
515,934
18
447,713
15
68,221
Total Operating Income
$
2,630,865
16.0
%
$
2,359,288
14.2
%
$
271,577
Nine Months Ended
May 31, 2024
May 31, 2023
Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
Increase (Decrease)
North America (1)
$
3,682,156
16
%
$
3,374,986
15
%
$
307,170
EMEA (2)
2,102,472
12
2,012,616
12
89,856
Growth Markets (1) (2)
1,457,551
17
1,509,367
17
(51,816
)
Total Operating Income
$
7,242,179
14.9
%
$
6,896,969
14.3
%
$
345,210
(1)
As announced on June 11, 2024, effective September 1, 2024, our
Latin America market unit will move from Growth Markets to North
America. With this change, North America will become The Americas
market and Growth Markets will become the Asia Pacific market.
(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 Operating Income, as
Reported (GAAP) to Operating Income as Adjusted (Non-GAAP)
(In thousands of U.S. dollars)
(Unaudited)
Three Months Ended
May 31, 2024
May 31, 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)
$
1,365,072
$
(3,677
)
$
1,361,395
17
%
$
1,241,245
$
96,349
$
1,337,594
17
%
EMEA (3)
749,859
74,937
824,796
14
670,330
167,205
837,535
14
Growth Markets (2) (3)
515,934
6,160
522,094
18
447,713
83,319
531,032
18
Total Operating Income
$
2,630,865
$
77,420
$
2,708,285
16.4
%
$
2,359,288
$
346,873
$
2,706,161
16.3
%
Nine Months Ended
May 31, 2024
May 31, 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)
$
3,682,156
$
46,941
$
3,729,097
16
%
$
3,374,986
$
273,329
$
3,648,315
16
%
EMEA (3)
2,102,472
231,302
2,333,774
14
2,012,616
208,165
2,220,781
13
Growth Markets (2) (3)
1,457,551
54,250
1,511,801
18
1,509,367
109,769
1,619,136
19
Total Operating Income
$
7,242,179
$
332,493
$
7,574,672
15.6
%
$
6,896,969
$
591,263
$
7,488,232
15.6
%
(1)
Costs recorded in connection with our
business optimization initiatives, primarily for employee
severance.
(2)
As announced on June 11, 2024, effective
September 1, 2024, our Latin America market unit will move from
Growth Markets to North America. With this change, North America
will become The Americas market and Growth Markets will become the
Asia Pacific market.
(3)
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
May 31, 2024
May 31, 2023
As Reported (GAAP)
Business Optimization
(1)
Adjusted (Non-GAAP)
As Reported (GAAP)
Business Optimization
(1)
Investment Gain
(2)
Adjusted (Non-GAAP)
Operating Income
$
2,630,865
$
77,420
$
2,708,285
$
2,359,288
$
346,873
$
—
$
2,706,161
Operating Margin
16.0
%
0.4
%
16.4
%
14.2
%
2.1
%
—
%
16.3
%
Income before income taxes
2,654,370
77,420
2,731,790
2,631,681
346,873
(252,920
)
2,725,634
Income tax expense
673,022
23,650
696,672
583,346
80,336
(8,840
)
654,842
Net Income
$
1,981,348
$
53,770
$
2,035,118
$
2,048,335
$
266,537
$
(244,080
)
$
2,070,792
Effective tax rate
25.4
%
30.5
%
25.5
%
22.2
%
23.2
%
3.5
%
24.0
%
Diluted earnings per share (3)
$
3.04
$
0.08
$
3.13
$
3.15
$
0.42
$
(0.38
)
$
3.19
Nine Months Ended
May 31, 2024
May 31, 2023
As Reported (GAAP)
Business Optimization
(1)
Adjusted (Non-GAAP)
As Reported (GAAP)
Business Optimization
(1)
Investment Gain
(2)
Adjusted (Non-GAAP)
Operating Income
$
7,242,179
$
332,493
$
7,574,672
$
6,896,969
$
591,263
$
—
$
7,488,232
Operating Margin
14.9
%
0.7
%
15.6
%
14.3
%
1.3
%
—
%
15.6
%
Income before income taxes
7,366,762
332,493
7,699,255
7,180,205
591,263
(252,920
)
7,518,548
Income tax expense
1,666,231
85,706
1,751,937
1,584,887
131,851
(8,840
)
1,707,898
Net Income
$
5,700,531
$
246,787
$
5,947,318
$
5,595,318
$
459,412
$
(244,080
)
$
5,810,650
Effective tax rate
22.6
%
25.8
%
22.8
%
22.1
%
22.3
%
3.5
%
22.7
%
Diluted earnings per share (3)
$
8.77
$
0.39
$
9.16
$
8.62
$
0.72
$
(0.38
)
$
8.96
Amounts in tables may not total due to
rounding.
(1)
Costs recorded in connection with our
business optimization initiatives, primarily for employee
severance.
(2)
Gain recognized related to our investment
in Duck Creek Technologies.
(3)
The impact of the business optimization
costs and investment gain on diluted earnings per share are
presented net of related taxes. The income tax effect was negative
$0.04 and negative $0.11 for the three months ended May 31, 2024
and 2023, respectively, and negative $0.13 and negative $0.19 for
the nine months ended May 31, 2024 and 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)
May 31, 2024
August 31, 2023
ASSETS
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$
5,537,217
$
9,045,032
Short-term investments
4,878
4,575
Receivables and contract assets
13,199,388
12,227,186
Other current assets
2,333,935
2,105,138
Total current assets
21,075,418
23,381,931
NON-CURRENT ASSETS:
Contract assets
119,281
106,994
Investments
231,281
197,443
Property and equipment, net
1,451,599
1,530,007
Lease assets
2,587,408
2,637,479
Goodwill
19,842,707
15,573,003
Other non-current assets
8,833,625
7,818,448
Total non-current assets
33,065,901
27,863,374
TOTAL ASSETS
$
54,141,319
$
51,245,305
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank
borrowings
$
1,610,025
$
104,810
Accounts payable
2,251,330
2,491,173
Deferred revenues
5,299,334
4,907,152
Accrued payroll and related benefits
6,416,460
7,506,030
Lease liabilities
680,484
690,417
Other accrued liabilities
1,950,120
2,309,456
Total current liabilities
18,207,753
18,009,038
NON-CURRENT LIABILITIES:
Long-term debt
68,878
43,093
Lease liabilities
2,242,156
2,310,714
Other non-current liabilities
5,002,790
4,423,867
Total non-current liabilities
7,313,824
6,777,674
Total Accenture plc shareholders’
equity
27,744,489
25,692,839
Noncontrolling interests
875,253
765,754
Total shareholders’ equity
28,619,742
26,458,593
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
54,141,319
$
51,245,305
Accenture plc
Consolidated Cash Flows
Statements
(In thousands of U.S. dollars)
(Unaudited)
Three Months Ended
Nine Months Ended
May 31, 2024
May 31, 2023
May 31, 2024
May 31, 2023
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
1,981,348
$
2,048,335
$
5,700,531
$
5,595,318
Depreciation, amortization and other
521,305
601,099
1,571,633
1,639,804
Share-based compensation expense
473,931
472,695
1,538,802
1,530,034
Change in assets and liabilities/other,
net
165,418
167,242
(3,069,370
)
(2,650,276
)
Net cash provided by (used in)
operating activities
3,142,002
3,289,371
5,741,596
6,114,880
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property and equipment
(124,117
)
(141,500
)
(302,873
)
(347,878
)
Purchases of businesses and investments,
net of cash acquired
(2,329,700
)
(257,020
)
(5,239,180
)
(1,334,007
)
Proceeds from the sale of businesses and
investments
—
400,238
20,905
418,113
Other investing, net
2,851
3,273
6,504
8,392
Net cash provided by (used in)
investing activities
(2,450,966
)
4,991
(5,514,644
)
(1,255,380
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of ordinary
shares
504,516
537,016
1,267,323
1,344,637
Purchases of shares
(1,383,242
)
(788,937
)
(3,896,216
)
(3,325,850
)
Proceeds from (repayments of) debt,
net
1,499,033
—
1,499,033
—
Cash dividends paid
(810,976
)
(707,742
)
(2,433,610
)
(2,121,331
)
Other financing, net
(26,235
)
(13,161
)
(71,088
)
(62,481
)
Net cash provided by (used in)
financing activities
(216,904
)
(972,824
)
(3,634,558
)
(4,165,025
)
Effect of exchange rate changes on cash
and cash equivalents
(58,022
)
(24,879
)
(100,209
)
(48,862
)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
416,110
2,296,659
(3,507,815
)
645,613
CASH AND CASH EQUIVALENTS,
beginning of period
5,121,107
6,238,787
9,045,032
7,889,833
CASH AND CASH EQUIVALENTS, end of
period
$
5,537,217
$
8,535,446
$
5,537,217
$
8,535,446
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240620215807/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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