Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow margin improved from a year ago but weakened compared to the immediately preceding quarter.
- Revenue rose sequentially and year-over-year, while operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased slightly from both periods, resulting in free cash flow and free cash flow margin that weakened sequentially but improved year-over-year.
- Compared to the preceding quarter, operating cash flow, free cash flow, and margin were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$362.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$149.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$157.1M
Cash generated by operations before capital spending.
CapEx
$7.6M
Capital spending and related asset purchases.
FCF margin
26.2%
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 | $505.3M | $53.9M | $9.6M | $44.2M | 8.8% |
| 2023-03-31 | $508.6M | $16.3M | $9.9M | $6.5M | 1.3% |
| 2023-06-30 | $534.6M | $174.5M | $11.9M | $162.6M | 30.4% |
| 2023-09-30 | $571.4M | $157.1M | $7.6M | $149.5M | 26.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 was higher than both the prior quarter and the year-ago quarter, supporting higher absolute free cash flow compared to the prior year.
The revenue growth accompanied an improved free cash flow margin relative to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose sequentially and year-over-year, while operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased slightly from both periods, resulting in free cash flow and free cash flow margin that weakened sequentially but improved year-over-year.
Compared to the preceding quarter, operating cash flow, free cash flow, and margin were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was slightly lower.
Monitor the trend in operating cash flow, as the filing noted that changes in receivables and deferred revenue influenced the cash flow performance.