Financial News

Accenture Reports Strong Revenues and Record New Bookings for Second-Quarter Fiscal 2023

-- Revenues are $15.8 billion, an increase of 5% in U.S. dollars and 9% in local currency --

-- Record new bookings are $22.1 billion, a 13% increase in U.S. dollars and 17% increase in local currency from the second quarter last year, with consulting and managed services bookings of $10.7 billion and $11.4 billion, respectively --

-- GAAP EPS are $2.39 compared to $2.54 in the second quarter of fiscal 2022; adjusted1 EPS are $2.69, an increase of 6% --

-- GAAP operating margin is 12.3% compared to 13.7% in the second quarter of fiscal 2022; adjusted operating margin is 13.8%, an expansion of 10 basis points --

-- Company declares quarterly cash dividend of $1.12 per share, up 15% from a year ago --

-- Accenture updates business outlook2 for fiscal 2023; now expects full-year revenue growth of 8% to 10% in local currency and foreign-exchange impact of negative 4.5%; GAAP operating margin of 14.1% to 14.3%; adjusted operating margin of 15.3% to 15.5%; GAAP EPS of $10.84 to $11.06; adjusted EPS of $11.41 to $11.63; increases operating cash flow range to $8.7 billion to $9.2 billion from $8.5 billion to $9.0 billion; and increases free cash flow range to $8.0 billion to $8.5 billion from $7.7 billion to $8.2 billion --

Accenture (NYSE: ACN) reported financial results for the second quarter of fiscal 2023, ended February 28, 2023, with revenues of $15.8 billion, an increase of 5% in U.S. dollars and 9% in local currency over the same period last year.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230323005340/en/

Q2 FY23 Earnings Infographic (Graphic: Business Wire)

Q2 FY23 Earnings Infographic (Graphic: Business Wire)

GAAP operating income was $1.94 billion, compared to $2.06 billion for the second quarter last year, and operating margin was 12.3% compared to 13.7% for the second quarter last year. Adjusted operating margin was 13.8%, an expansion of 10 basis points from the second quarter of fiscal 2022.

GAAP diluted earnings per share were $2.39, compared to $2.54 for the second quarter last year. Adjusted EPS were $2.69, an increase of 6% from the second quarter of fiscal 2022.

New bookings for the quarter were a record $22.1 billion, with consulting bookings of $10.7 billion and managed services bookings of $11.4 billion.

Julie Sweet, chair and CEO, Accenture, said, “Our strong financial results this quarter again demonstrate that our ability to bring together industry, functional and technology expertise as well as managed services continues to differentiate us with our clients. Our record bookings reflect the confidence and trust that our clients have in us to create value and help them transform at speed. We are also taking steps to lower our costs in fiscal year 2024 and beyond while continuing to invest in our business and our people to capture the significant growth opportunities ahead.”

1Adjusted financial measures presented in this release are non-GAAP financial measures that exclude the impact of business optimization costs, as further described in this release.

2Adjusted financial measures for full year fiscal 2023 outlook also exclude an anticipated gain related to our investment in Duck Creek Technologies expected to be recorded in the first half of calendar year 2023.

Financial Review

Revenues for the second quarter of fiscal 2023 were $15.81 billion, compared with $15.05 billion for the second quarter of fiscal 2022, an increase of 5% in U.S. dollars and 9% in local currency.

Revenues for the quarter reflect a foreign-exchange impact of approximately negative 4% compared with the negative 5% impact previously assumed. Adjusting for the actual foreign-exchange impact, the company’s guided range for quarterly revenues was approximately $15.35 billion to $15.90 billion. Accenture’s second quarter fiscal 2023 revenues were at the top of this adjusted range.

  • Consulting revenues for the quarter were $8.28 billion, a decrease of 1% in U.S. dollars and an increase of 4% in local currency compared with the second quarter of fiscal 2022.
  • Managed Services revenues were $7.54 billion, an increase of 12% in U.S. dollars and 16% in local currency compared with the second quarter of fiscal 2022.

During the second quarter of fiscal 2023, Accenture initiated actions to streamline operations, transform non-billable corporate functions and consolidate office space to reduce costs. The company recorded $244 million in business optimization costs during the second quarter and expects to record total costs of approximately $1.5 billion through fiscal 2024. Accenture estimates $1.2 billion for severance and $300 million for consolidation of office space, with approximately $800 million expected in fiscal 2023 and $700 million in fiscal 2024.

GAAP diluted EPS for the quarter were $2.39 compared with $2.54 for the second quarter of fiscal 2022. Adjusted EPS were $2.69, an increase of 6% from the second quarter of fiscal 2022. The $0.15 increase in EPS on an adjusted basis reflects:

  • a $0.16 increase from higher revenue and operating results;
  • a $0.02 increase from lower share count; and
  • a $0.02 increase from higher non-operating income;

partially offset by

  • a $0.04 decrease from a higher effective tax rate; and
  • a $0.01 decrease from higher noncontrolling interests.

Gross margin (gross profit as a percentage of revenues) for the quarter was 30.6% compared to 30.1% in the second quarter of fiscal 2022. Selling, general and administrative (SG&A) expenses for the quarter were $2.65 billion, or 16.7% of revenues, compared with $2.46 billion, or 16.4% of revenues, for the second quarter of fiscal 2022.

GAAP operating income for the quarter decreased 6%, to $1.94 billion, or 12.3% of revenues, compared with $2.06 billion, or 13.7% of revenues, for the second quarter of fiscal 2022. Adjusted operating income for the quarter was $2.19 billion, or 13.8% of revenues, an expansion of 10 basis points from the second quarter of fiscal 2022.

The company’s effective tax rate for the quarter was 20.4%, compared with 19.2% for the second quarter last year.

GAAP net income for the quarter was $1.55 billion, compared with $1.66 billion for the second quarter of fiscal 2022. Adjusted net income for the quarter was $1.74 billion.

Operating cash flow for the quarter was $2.33 billion, and property and equipment additions were $108 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $2.22 billion. For the same period last year, operating cash flow was $2.16 billion; property and equipment additions were $165 million; and free cash flow was $1.99 billion.

Days services outstanding, or DSOs, were 42 days at February 28, 2023, compared with 43 days at August 31, 2022 and 41 days at February 28, 2022.

Accenture’s total cash balance at February 28, 2023 was $6.2 billion, compared with $7.9 billion at August 31, 2022.

New Bookings

New bookings for the second quarter of fiscal 2023 were $22.09 billion, a 13% increase in U.S. dollars and a 17% increase in local currency over the second quarter of fiscal 2022.

  • Consulting new bookings were $10.65 billion, or 48% of total new bookings.
  • Managed Services new bookings were $11.43 billion, or 52% of total new bookings.

Revenues by Geographic Market

Revenues by geographic market were as follows:

  • North America: $7.40 billion, an increase of 5% in both U.S. dollars and local currency compared with the second quarter of fiscal 2022.
  • Europe: $5.30 billion, an increase of 6% in U.S. dollars and 12% in local currency compared with the second quarter of fiscal 2022.
  • Growth Markets: $3.12 billion, an increase of 5% in U.S. dollars and 14% in local currency compared with the second quarter of fiscal 2022.

Revenues by Industry Group

Revenues by industry group were as follows:

  • Communications, Media & Technology: $2.88 billion, a decrease of 4% in U.S. dollars and flat in local currency compared with the second quarter of fiscal 2022.
  • Financial Services: $3.00 billion, an increase of 5% in U.S. dollars and 10% in local currency compared with the second quarter of fiscal 2022.
  • Health & Public Service: $3.02 billion, an increase of 13% in U.S. dollars and 15% in local currency compared with the second quarter of fiscal 2022.
  • Products: $4.72 billion, an increase of 4% in U.S. dollars and 9% in local currency compared with the second quarter of fiscal 2022.
  • Resources: $2.18 billion, an increase of 11% in U.S. dollars and 16% in local currency compared with the second quarter of fiscal 2022.

Returning Cash to Shareholders

Accenture continues to return cash to shareholders through cash dividends and share repurchases.

Dividend

On February 15, 2023, a quarterly cash dividend of $1.12 per share was paid to shareholders of record at the close of business on January 12, 2023. These cash dividend payments totaled $708 million.

Accenture plc has declared another quarterly cash dividend of $1.12 per share for shareholders of record at the close of business on April 13, 2023. This dividend, which is payable on May 15, 2023, represents a 15% increase over the quarterly dividend rate of $0.97 per share in fiscal 2022.

Share Repurchase Activity

During the second quarter of fiscal 2023, Accenture repurchased or redeemed 4.1 million shares for a total of $1.12 billion, including approximately 2.5 million shares repurchased in the open market. This brings Accenture’s total share repurchases and redemptions for the first half of fiscal 2023 to 9.3 million shares for a total of $2.54 billion, including approximately 7.0 million shares repurchased in the open market.

Accenture’s total remaining share repurchase authority at February 28, 2023 was approximately $4.2 billion.

At February 28, 2023, Accenture had approximately 632 million total shares outstanding.

Business Outlook

Third Quarter Fiscal 2023

Accenture expects revenues for the third quarter of fiscal 2023 to be in the range of $16.1 billion to $16.7 billion, an increase of 3% to 7% in local currency, reflecting the company’s assumption of an approximately negative 3.5% foreign-exchange impact compared with the third quarter of fiscal 2022.

Fiscal Year 2023

Accenture’s business outlook for fiscal 2023 now assumes that the foreign-exchange impact on its results in U.S. dollars will be approximately negative 4.5% compared with fiscal 2022; the company previously expected a negative 5% foreign-exchange impact.

For fiscal 2023, the company now expects revenue growth to be in the range of 8% to 10% in local currency, compared to 8% to 11% previously.

Accenture now expects GAAP operating margin for fiscal 2023 to be in the range of 14.1% to 14.3%, compared to 15.3% to 15.5% previously, and adjusted operating margin, which excludes an estimated $800 million for business optimization costs to be in the range of 15.3% to 15.5%, an expansion of 10 to 30 basis points from fiscal 2022.

The company now expects its GAAP annual effective tax rate to be in the range of 22.5% to 24.5%, compared to 23% to 25% previously, and its adjusted annual effective tax rate, which excludes the tax impacts of business optimization costs and an anticipated gain on an investment, to be in the range of 23% to 25%.

The company now expects GAAP diluted EPS to be in the range of $10.84 to $11.06, compared to $11.20 to $11.52 previously, and adjusted EPS to be in the range of $11.41 to $11.63, an increase of 7% to 9% over fiscal 2022 diluted EPS of $10.71. This excludes $0.96 for business optimization costs and $0.39 for an anticipated gain on an investment.

For fiscal 2023, the company now expects operating cash flow to be in the range of $8.7 billion to $9.2 billion compared to $8.5 billion to $9.0 billion previously; property and equipment additions to be $700 million, compared to $800 million previously; and free cash flow to be in the range of $8.0 billion to $8.5 billion, compared to $7.7 billion and $8.2 billion previously.

The company continues to expect to return at least $7.1 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 for fiscal 2022 and online 360° Value Reporting Experience provides customizable reports. 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 2023 financial results. To participate, please dial +1 (877) 692-8955 [+1 (234) 720-6979 outside the United States, Puerto Rico and Canada] and enter access code 3264013 approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible live 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 beginning at 11:00 a.m. EDT today, March 23, and continuing through June 21, 2023. The replay will also be available via telephone by dialing +1 (866) 207-1041 [+1 (402) 970-0847 outside the United States, Puerto Rico and Canada] and entering access code 4319130 from 11:00 a.m. EDT today, March 23, through Wednesday, June 21, 2023.

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 738,000 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 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 Accenture Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients succeed 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; Accenture’s environmental, social and governance (ESG) commitments and disclosures may expose it to reputational risks and legal liability; 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. In addition, the timing and amount of costs related to our business optimization actions and the nature and extent of benefits realized from such actions are subject to uncertainties and other factors, including local country consultation processes and regulations, and may differ from our current expectations and estimates. 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 28,

2023

 

% of

Revenues

 

February 28,

2022

 

% of

Revenues

 

February 28,

2023

 

% of

Revenues

 

February 28,

2022

 

% of

Revenues

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

15,814,158

 

 

100.0

%

 

$

15,046,693

 

 

100.0

%

 

$

31,561,960

 

 

100.0

%

 

$

30,011,846

 

 

100.0

%

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services

 

 

10,979,392

 

 

69.4

%

 

 

10,522,734

 

 

69.9

%

 

 

21,541,052

 

 

68.3

%

 

 

20,571,098

 

 

68.5

%

Sales and marketing

 

 

1,563,567

 

 

9.9

%

 

 

1,414,814

 

 

9.4

%

 

 

3,113,586

 

 

9.9

%

 

 

2,869,239

 

 

9.6

%

General and administrative costs

 

 

1,082,228

 

 

6.8

%

 

 

1,047,565

 

 

7.0

%

 

 

2,125,251

 

 

6.7

%

 

 

2,075,635

 

 

6.9

%

Business optimization costs

 

 

244,390

 

 

1.5

%

 

 

 

 

%

 

 

244,390

 

 

0.8

%

 

 

 

 

%

Total operating expenses

 

 

13,869,577

 

 

 

 

 

12,985,113

 

 

 

 

 

27,024,279

 

 

 

 

 

25,515,972

 

 

 

OPERATING INCOME

 

 

1,944,581

 

 

12.3

%

 

 

2,061,580

 

 

13.7

%

 

 

4,537,681

 

 

14.4

%

 

 

4,495,874

 

 

15.0

%

Interest income

 

 

50,259

 

 

 

 

 

7,269

 

 

 

 

 

94,964

 

 

 

 

 

13,319

 

 

 

Interest expense

 

 

(11,634

)

 

 

 

 

(11,216

)

 

 

 

 

(18,914

)

 

 

 

 

(22,399

)

 

 

Other income (expense), net

 

 

(36,300

)

 

 

 

 

(7,183

)

 

 

 

 

(65,207

)

 

 

 

 

(30,212

)

 

 

INCOME BEFORE INCOME TAXES

 

 

1,946,906

 

 

12.3

%

 

 

2,050,450

 

 

13.6

%

 

 

4,548,524

 

 

14.4

%

 

 

4,456,582

 

 

14.8

%

Income tax expense

 

 

396,223

 

 

 

 

 

392,921

 

 

 

 

 

1,001,541

 

 

 

 

 

979,323

 

 

 

NET INCOME

 

 

1,550,683

 

 

9.8

%

 

 

1,657,529

 

 

11.0

%

 

 

3,546,983

 

 

11.2

%

 

 

3,477,259

 

 

11.6

%

Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc.

 

 

(1,604

)

 

 

 

 

(1,742

)

 

 

 

 

(3,689

)

 

 

 

 

(3,676

)

 

 

Net income attributable to noncontrolling interests – other (1)

 

 

(25,431

)

 

 

 

 

(20,845

)

 

 

 

 

(54,696

)

 

 

 

 

(47,617

)

 

 

NET INCOME ATTRIBUTABLE TO ACCENTURE PLC

 

$

1,523,648

 

 

9.6

%

 

$

1,634,942

 

 

10.9

%

 

$

3,488,598

 

 

11.1

%

 

$

3,425,966

 

 

11.4

%

CALCULATION OF EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Accenture plc

 

$

1,523,648

 

 

 

 

$

1,634,942

 

 

 

 

$

3,488,598

 

 

 

 

$

3,425,966

 

 

 

Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (2)

 

 

1,604

 

 

 

 

 

1,742

 

 

 

 

 

3,689

 

 

 

 

 

3,676

 

 

 

Net income for diluted earnings per share calculation

 

$

1,525,252

 

 

 

 

$

1,636,684

 

 

 

 

$

3,492,287

 

 

 

 

$

3,429,642

 

 

 

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.42

 

 

 

 

$

2.58

 

 

 

 

$

5.53

 

 

 

 

$

5.41

 

 

 

Diluted

 

$

2.39

 

 

 

 

$

2.54

 

 

 

 

$

5.47

 

 

 

 

$

5.32

 

 

 

WEIGHTED AVERAGE SHARES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

630,845,147

 

 

 

 

 

633,956,712

 

 

 

 

 

630,485,134

 

 

 

 

 

633,108,627

 

 

 

Diluted

 

 

637,735,390

 

 

 

 

 

644,127,093

 

 

 

 

 

638,350,779

 

 

 

 

 

644,622,602

 

 

 

Cash dividends per share

 

$

1.12

 

 

 

 

$

0.97

 

 

 

 

$

2.24

 

 

 

 

$

1.94

 

 

 

(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 28, 2023

 

February 28, 2022

 

 

GEOGRAPHIC MARKETS

 

 

 

 

 

 

 

 

North America

 

$

7,397,874

 

$

7,077,036

 

5

%

 

5

%

Europe

 

 

5,300,169

 

 

5,009,885

 

6

 

 

12

 

Growth Markets

 

 

3,116,115

 

 

2,959,772

 

5

 

 

14

 

Total Revenues

 

$

15,814,158

 

$

15,046,693

 

5

%

 

9

%

INDUSTRY GROUPS (1)

 

 

 

 

 

 

 

 

Communications, Media & Technology

 

$

2,884,802

 

$

2,998,970

 

(4

) %

 

%

Financial Services

 

 

3,002,867

 

 

2,872,158

 

5

 

 

10

 

Health & Public Service

 

 

3,023,595

 

 

2,686,853

 

13

 

 

15

 

Products

 

 

4,718,572

 

 

4,522,967

 

4

 

 

9

 

Resources

 

 

2,184,322

 

 

1,965,745

 

11

 

 

16

 

Total Revenues

 

$

15,814,158

 

$

15,046,693

 

5

%

 

9

%

TYPE OF WORK

 

 

 

 

 

 

 

 

Consulting

 

$

8,278,763

 

$

8,322,202

 

(1

) %

 

4

%

Managed Services (2)

 

 

7,535,395

 

 

6,724,491

 

12

 

 

16

 

Total Revenues

 

$

15,814,158

 

$

15,046,693

 

5

%

 

9

%

 

 

Six Months Ended

 

Percent

Increase

(Decrease)

U.S.

Dollars

 

Percent

Increase

(Decrease)

Local

Currency

 

 

February 28, 2023

 

February 28, 2022

 

 

GEOGRAPHIC MARKETS

 

 

 

 

 

 

 

 

North America

 

$

15,020,694

 

$

13,984,251

 

7

%

 

8

%

Europe

 

 

10,372,219

 

 

10,109,953

 

3

 

 

15

 

Growth Markets

 

 

6,169,047

 

 

5,917,642

 

4

 

 

17

 

Total Revenues

 

$

31,561,960

 

$

30,011,846

 

5

%

 

12

%

INDUSTRY GROUPS (1)

 

 

 

 

 

 

 

 

Communications, Media & Technology

 

$

5,865,005

 

$

5,896,265

 

(1

) %

 

5

%

Financial Services

 

 

5,966,263

 

 

5,789,878

 

3

 

 

11

 

Health & Public Service

 

 

6,023,614

 

 

5,416,887

 

11

 

 

15

 

Products

 

 

9,384,360

 

 

8,990,864

 

4

 

 

12

 

Resources

 

 

4,322,718

 

 

3,917,952

 

10

 

 

18

 

Total Revenues

 

$

31,561,960

 

$

30,011,846

 

5

%

 

12

%

TYPE OF WORK

 

 

 

 

 

 

 

 

Consulting

 

$

16,723,130

 

$

16,714,611

 

%

 

7

%

Managed Services (2)

 

 

14,838,830

 

 

13,297,235

 

12

 

 

18

 

Total Revenues

$

31,561,960

$

30,011,846

5

%

 

12

%

(1)

Effective June 1, 2022, we revised the reporting of our industry groups for the movement of Aerospace & Defense from Communications, Media & Technology to Products. Prior period amounts have been reclassified to conform with the current period presentation.

(2)

Previously referred to as our outsourcing business.

Accenture plc

Operating Income by Geographic Market

(In thousands of U.S. dollars)

(Unaudited)

 

 

Three Months Ended

 

 

 

February 28, 2023

 

February 28, 2022

 

 

 

Operating

Income

 

Operating

Margin

 

Operating

Income

 

Operating

Margin

 

Increase

(Decrease)

North America

$

823,858

 

11

%

 

$

1,090,910

 

15

%

 

$

(267,052

)

Europe

 

573,633

 

11

 

 

 

531,629

 

11

 

 

 

42,004

 

Growth Markets

 

547,090

 

18

 

 

 

439,041

 

15

 

 

 

108,049

 

Total Operating Income

$

1,944,581

 

12.3

%

 

$

2,061,580

 

13.7

%

 

$

(116,999

)

 

Six Months Ended

 

 

 

February 28, 2023

 

February 28, 2022

 

 

 

Operating

Income

 

Operating

Margin

 

Operating

Income

 

Operating

Margin

 

Increase

(Decrease)

North America

$

2,133,741

 

14

%

 

$

2,335,327

 

17

%

 

$

(201,586

)

Europe

 

1,263,633

 

12

 

 

 

1,276,485

 

13

 

 

 

(12,852

)

Growth Markets

 

1,140,307

 

18

 

 

 

884,062

 

15

 

 

 

256,245

 

Total Operating Income

$

4,537,681

 

14.4

%

 

$

4,495,874

 

15.0

%

 

$

41,807

 

Accenture plc

Reconciliation of Operating Income (GAAP) to Operating Income As Adjusted (Non-GAAP)

(In thousands of U.S. dollars)

(Unaudited)

 

 

Three Months Ended

 

 

 

February 28, 2023

 

February 28, 2022

 

 

 

As

Reported

(GAAP)

 

Business

Optimization (1)

 

Adjusted

(Non-GAAP)

 

Operating

Margin

(Non-GAAP)

 

As

Reported

(GAAP)

 

Operating

Margin

(GAAP)

 

Increase

(Decrease)

North America

$

823,858

 

$

176,980

 

$

1,000,838

 

14

%

 

$

1,090,910

 

15

%

 

$

(90,072

)

Europe

 

573,633

 

 

40,377

 

 

614,010

 

12

 

 

 

531,629

 

11

 

 

 

82,381

 

Growth Markets

 

547,090

 

 

27,033

 

 

574,123

 

18

 

 

 

439,041

 

15

 

 

 

135,082

 

Total Operating Income

$

1,944,581

 

$

244,390

 

$

2,188,971

 

13.8

%

 

$

2,061,580

 

13.7

%

 

$

127,391

 

 

Six Months Ended

 

 

 

February 28, 2023

 

February 28, 2022

 

 

 

As

Reported

(GAAP)

 

Business

Optimization (1)

 

Adjusted

(Non-GAAP)

 

Operating

Margin

(Non-GAAP)

 

As

Reported

(GAAP)

 

Operating

Margin

(GAAP)

 

Increase

(Decrease)

North America

$

2,133,741

 

$

176,980

 

$

2,310,721

 

15

%

 

$

2,335,327

 

17

%

 

$

(24,606

)

Europe

 

1,263,633

 

 

40,377

 

 

1,304,010

 

13

 

 

 

1,276,485

 

13

 

 

 

27,525

 

Growth Markets

 

1,140,307

 

 

27,033

 

 

1,167,340

 

19

 

 

 

884,062

 

15

 

 

 

283,278

 

Total Operating Income

$

4,537,681

 

$

244,390

 

$

4,782,071

 

15.2

%

 

$

4,495,874

 

15.0

%

 

$

286,197

 

(1)

 

Costs recorded in connection with our business optimization initiatives, primarily for employee severance.

Accenture plc

Reconciliation of Operating Income and Diluted Earnings Per Share, as Reported (GAAP), to Operating 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 28, 2023

 

February 28, 2022

 

As Reported

(GAAP)

Business

Optimization (1)

 

Adjusted

(Non-GAAP)

 

As Reported

(GAAP)

Operating Income

$

1,944,581

 

$

244,390

 

 

$

2,188,971

 

 

$

2,061,580

 

Operating Margin

 

12.3

%

 

1.5

%

 

 

13.8

%

 

 

13.7

%

 

 

 

 

 

 

 

Income before income taxes

 

1,946,906

 

 

244,390

 

 

 

2,191,296

 

 

 

2,050,450

 

Income tax expense

 

396,223

 

 

51,515

 

 

 

447,738

 

 

 

392,921

 

Net Income

$

1,550,683

 

$

192,875

 

 

$

1,743,558

 

 

$

1,657,529

 

Effective tax rate

 

20.4

%

 

21.1

%

 

 

20.4

%

 

 

19.2

%

Diluted earnings per share

$

2.39

 

$

0.30

 

 

$

2.69

 

 

$

2.54

 

 

 

Six Months Ended

 

February 28, 2023

 

February 28, 2022

 

As Reported

(GAAP)

Business

Optimization (1)

 

Adjusted

(Non-GAAP)

 

As Reported

(GAAP)

Operating Income

$

4,537,681

 

$

244,390

 

 

$

4,782,071

 

 

$

4,495,874

 

Operating Margin

 

14.4

%

 

0.8

%

 

 

15.2

%

 

 

15.0

%

 

 

 

 

 

 

 

Income before income taxes

 

4,548,524

 

 

244,390

 

 

 

4,792,914

 

 

 

4,456,582

 

Income tax expense

 

1,001,541

 

 

51,515

 

 

 

1,053,056

 

 

 

979,323

 

Net Income

$

3,546,983

 

$

192,875

 

 

$

3,739,858

 

 

$

3,477,259

 

Effective tax rate

 

22.0

%

 

21.1

%

 

 

22.0

%

 

 

22.0

%

Diluted earnings per share

$

5.47

 

$

0.30

 

 

$

5.77

 

 

$

5.32

 

(1)

Costs recorded in connection with our business optimization initiatives, primarily for employee severance.

Accenture plc

Consolidated Balance Sheets

(In thousands of U.S. dollars)

 

 

 

February 28, 2023

 

August 31, 2022

ASSETS

 

(Unaudited)

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

6,238,787

 

$

7,889,833

Short-term investments

 

 

4,189

 

 

3,973

Receivables and contract assets

 

 

12,499,168

 

 

11,776,775

Other current assets

 

 

2,318,814

 

 

1,940,290

Total current assets

 

 

21,060,958

 

 

21,610,871

NON-CURRENT ASSETS:

 

 

 

 

Contract assets

 

 

75,423

 

 

46,844

Investments

 

 

325,251

 

 

317,972

Property and equipment, net

 

 

1,560,691

 

 

1,659,140

Lease assets

 

 

2,906,181

 

 

3,018,535

Goodwill

 

 

14,190,658

 

 

13,133,293

Other non-current assets

 

 

7,608,127

 

 

7,476,735

Total non-current assets

 

 

26,666,331

 

 

25,652,519

TOTAL ASSETS

 

$

47,727,289

 

$

47,263,390

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Current portion of long-term debt and bank borrowings

 

$

10,815

 

$

9,175

Accounts payable

 

 

2,470,896

 

 

2,559,485

Deferred revenues

 

 

5,112,570

 

 

4,478,048

Accrued payroll and related benefits

 

 

5,974,677

 

 

7,611,794

Lease liabilities

 

 

700,570

 

 

707,598

Other accrued liabilities

 

 

2,079,994

 

 

2,157,396

Total current liabilities

 

 

16,349,522

 

 

17,523,496

NON-CURRENT LIABILITIES:

 

 

 

 

Long-term debt

 

 

45,155

 

 

45,893

Lease liabilities

 

 

2,451,961

 

 

2,563,090

Other non-current liabilities

 

 

4,423,373

 

 

4,383,823

Total non-current liabilities

 

 

6,920,489

 

 

6,992,806

Total Accenture plc shareholders’ equity

 

 

23,762,619

 

 

22,106,097

Noncontrolling interests

 

 

694,659

 

 

640,991

Total shareholders’ equity

 

 

24,457,278

 

 

22,747,088

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

47,727,289

 

$

47,263,390

Accenture plc

Consolidated Cash Flows Statements

(In thousands of U.S. dollars)

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

February 28, 2023

 

February 28, 2022

 

February 28, 2023

 

February 28, 2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income

 

$

1,550,683

 

 

$

1,657,529

 

 

$

3,546,983

 

 

$

3,477,259

 

Depreciation, amortization and other

 

 

532,476

 

 

 

528,260

 

 

 

1,038,705

 

 

 

1,029,125

 

Share-based compensation expense

 

 

631,870

 

 

 

546,607

 

 

 

1,057,339

 

 

 

912,298

 

Change in assets and liabilities/other, net

 

 

(384,918

)

 

 

(576,903

)

 

 

(2,817,518

)

 

 

(2,732,318

)

Net cash provided by (used in) operating activities

 

 

2,330,111

 

 

 

2,155,493

 

 

 

2,825,509

 

 

 

2,686,364

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(107,548

)

 

 

(164,660

)

 

 

(206,378

)

 

 

(346,331

)

Purchases of businesses and investments, net of cash acquired

 

 

(390,527

)

 

 

(113,746

)

 

 

(1,076,987

)

 

 

(1,848,774

)

Proceeds from the sale of businesses and investments, net of cash transferred

 

 

17,279

 

 

 

3,474

 

 

 

17,875

 

 

 

3,561

 

Other investing, net

 

 

2,499

 

 

 

2,430

 

 

 

5,119

 

 

 

6,461

 

Net cash provided by (used in) investing activities

 

 

(478,297

)

 

 

(272,502

)

 

 

(1,260,371

)

 

 

(2,185,083

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from issuance of ordinary shares

 

 

341,914

 

 

 

292,747

 

 

 

807,621

 

 

 

701,877

 

Purchases of shares

 

 

(1,118,211

)

 

 

(1,693,354

)

 

 

(2,536,913

)

 

 

(2,538,720

)

Cash dividends paid

 

 

(708,022

)

 

 

(616,583

)

 

 

(1,413,589

)

 

 

(1,229,791

)

Other financing, net

 

 

(31,022

)

 

 

(19,525

)

 

 

(49,320

)

 

 

(39,541

)

Net cash provided by (used in) financing activities

 

 

(1,515,341

)

 

 

(2,036,715

)

 

 

(3,192,201

)

 

 

(3,106,175

)

Effect of exchange rate changes on cash and cash equivalents

 

 

2,611

 

 

 

(17,277

)

 

 

(23,983

)

 

 

(97,164

)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

339,084

 

 

 

(171,001

)

 

 

(1,651,046

)

 

 

(2,702,058

)

CASH AND CASH EQUIVALENTS, beginning of period

 

 

5,899,703

 

 

 

5,637,117

 

 

 

7,889,833

 

 

 

8,168,174

 

CASH AND CASH EQUIVALENTS, end of period

 

$

6,238,787

 

 

$

5,466,116

 

 

$

6,238,787

 

 

$

5,466,116

 

 

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