Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved as free cash flow margin rose compared to both the prior quarter and the same quarter last year. Operating cash flow increased while capital expenditure remained relatively stable.
- Revenue growth combined with a larger increase in operating cash flow produced higher free cash flow, and the margin expanded as capital expenditure stayed low relative to operating cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved, and the margin strengthened. Versus the same quarter one year earlier, all metrics were higher, with the margin showing the most significant improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$632.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$209.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$220.2M
Cash generated by operations before capital spending.
CapEx
$10.4M
Capital spending and related asset purchases.
FCF margin
35.6%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $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% |
| 2023-12-31 | $589.6M | $220.2M | $10.4M | $209.8M | 35.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 388.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Free Cash Flow Margin Expansion
Free cash flow margin increased sequentially and year-over-year as operating cash flow grew at a faster pace than revenue, while capital expenditure remained contained.
This improvement indicates stronger cash generation efficiency from core operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth combined with a larger increase in operating cash flow produced higher free cash flow, and the margin expanded as capital expenditure stayed low relative to operating cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved, and the margin strengthened. Versus the same quarter one year earlier, all metrics were higher, with the margin showing the most significant improvement.
Monitor the trend in customer usage growth, as the filing notes slower usage growth from existing customers amid macroeconomic uncertainty.