Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue grew and free cash flow was higher than the same quarter last year, but the free cash flow margin weakened compared to the prior quarter. The filing notes slower usage growth from existing customers amid macroeconomic uncertainty.
- The company converted a higher revenue into operating cash flow that was slightly lower than the prior quarter, leading to a lower free cash flow margin. Capital expenditure increased from the prior quarter, reducing free cash flow relative to operating cash flow.
- Compared to the previous quarter, revenue increased but free cash flow and its margin decreased. Versus the same quarter a year earlier, all metrics improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$526.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$146.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$152.8M
Cash generated by operations before capital spending.
CapEx
$6.1M
Capital spending and related asset purchases.
FCF margin
26.8%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $469.4M | $114.4M | $10.1M | $104.4M | 22.2% |
| 2023-03-31 | $481.7M | $133.8M | $8.7M | $125.0M | 26.0% |
| 2023-06-30 | $509.5M | $153.2M | $2.3M | $150.8M | 29.6% |
| 2023-09-30 | $547.5M | $152.8M | $6.1M | $146.7M | 26.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 648.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue increased compared to both the prior quarter and the same period last year, providing a larger base for cash generation.
Free cash flow was higher year-over-year despite a larger capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher revenue into operating cash flow that was slightly lower than the prior quarter, leading to a lower free cash flow margin. Capital expenditure increased from the prior quarter, reducing free cash flow relative to operating cash flow.
Compared to the previous quarter, revenue increased but free cash flow and its margin decreased. Versus the same quarter a year earlier, all metrics improved significantly.
Monitor the trend in capital expenditure, which increased from the prior quarter, and the impact of slower usage growth from existing customers as noted in the filing.