Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter but was lower than the same quarter last year. The cash conversion rate strengthened significantly versus the preceding quarter, driven by a substantial increase in operating cash flow.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose markedly from the previous quarter, though it was lower than the same quarter last year, leading to a free cash flow margin that improved from the prior quarter but weakened compared to the year-ago period.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were substantially higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$427.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$437.0M
Cash generated by operations before capital spending.
CapEx
$10.0M
Capital spending and related asset purchases.
FCF margin
29.1%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-04-30 | $1.3B | $723.0M | $9.0M | $714.0M | 56.3% |
| 2023-07-31 | $1.3B | $135.0M | $7.0M | $128.0M | 9.5% |
| 2023-10-31 | $1.4B | $18.0M | $5.0M | $13.0M | 0.9% |
| 2024-01-31 | $1.5B | $437.0M | $10.0M | $427.0M | 29.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$408.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow increased substantially from the prior quarter, driving the improvement in free cash flow and margin. This was the strongest observable driver of the quarter's cash conversion.
The higher operating cash flow directly lifted free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose markedly from the previous quarter, though it was lower than the same quarter last year, leading to a free cash flow margin that improved from the prior quarter but weakened compared to the year-ago period.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were substantially higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower.
Monitor the timing of billings and cash collections related to the transition to annual billings for multi-year contracts, as noted in the filing.