Accenture Reports Third-Quarter Fiscal 2024 Results

  • 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 the full release here: https://www.businesswire.com/news/home/20240620215807/en/

3QFY24 Earnings Infographic (Graphic: Business Wire)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

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